II 

113TH CONGRESS 

1ST SESSION S. 1436 

To prevent a fiscal crisis by enacting legislation to balance the Federal 

budget through reductions of discretionary and mandatory spending. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 1, 2013 

Mr. ENZI (for himself, Mr. PAUL, Mr. VITTER, Mr. BARRASSO, Mr. RISCH, 

Mr. ISAKSON, and Mr. RUBIO) introduced the following bill; which was 

read twice and referred to the Committee on the Budget 

A BILL 

To prevent a fiscal crisis by enacting legislation to balance 

the Federal budget through reductions of discretionary 

and mandatory spending. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘One Percent Spending 

5 Reduction Act of 2013’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—The Congress finds the following: 

8 (1) The fiscal crisis faced by the Federal Gov9 ernment demands immediate action. 


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1 (2) The dramatic growth in spending and debt 

2 in recent years threatens our economic and national 

3 security: 

4 (A) Federal spending has grown from 18 

5 percent of GDP in 2001 to nearly 23 percent 

6 of GDP in 2012. 

7 (B) Total Federal debt exceeds 

8 $16,000,000,000,000 and is projected to in9 crease each year over the next 10 years. 

10 (C) Without action, the Federal Govern11 ment will continue to run massive deficits in the 

12 next decade and total Federal debt will rise to 

13 approximately $25,000,000,000,000 by 2023. 

14 (D) Interest payments on this debt will 

15 soon rise to the point where balancing the 

16 budget as a matter of policy is beyond the reach 

17 of Congress. 

18 (3) Due to recent tax hikes, Federal revenues 

19 are scheduled to rise to approximately 19 percent of 

20 GDP, a full percentage point above the average of 

21 about 18 percent of GDP over the past 40 years. 

22 (4) Absent reform, the growth of Social Secu23 rity, Medicare, Medicaid, and other health-related 

24 spending will overwhelm all other Federal programs 

25 and consume all projected tax revenues. 


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1 (b) PURPOSE.—The purpose of this Act is to address 

2 the fiscal crisis by— 

3 (1) acting quickly to balance the Federal budg4 et and eliminate the parade of deficits and bal5 looning interest payments; 

6 (2) achieving balance by reducing spending one 

7 percent per year until spending equals projected 

8 long-term revenues; and 

9 (3) reforming entitlement programs to ensure 

10 long-term fiscal stability and balance. 

11 SEC. 3. ESTABLISHMENT AND ENFORCEMENT OF SPEND12 ING CAPS. 

13 (a) OUTLAY CAPS.—The Balanced Budget and 

14 Emergency Deficit Control Act of 1985 is amended by in15 serting after section 253 the following new section: 

16 ‘‘SEC. 253A. ESTABLISHING OUTLAY CAPS. 

17 ‘‘(a) OUTLAY CAPS.—In this section, the term ‘outlay 

18 cap’ means: 

19 ‘‘(1) FISCAL YEAR 2014.—For fiscal year 2014, 

20 the aggregate outlays (less net interest payments) 

21 for fiscal year 2014 shall be $3,233,000,000,000, 

22 less one percent. 

23 ‘‘(2) FISCAL YEAR 2015.—For fiscal year 2015, 

24 the aggregate outlays (less net interest payments) 


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1 for fiscal year 2015 shall be the amount computed 

2 under paragraph (1), less one percent. 

3 ‘‘(3) FISCAL YEAR 2016 AND SUBSEQUENT FIS4 CAL YEARS.—(A) For fiscal year 2016 and each sub5 sequent fiscal year, the aggregate outlays shall be 19 

6 percent of the gross domestic product for that fiscal 

7 year as estimated by OMB prior to March of the 

8 previous fiscal year. 

9 ‘‘(B) Notwithstanding paragraph (A), for any 

10 fiscal year beginning with fiscal year 2017, the ag11 gregate projected outlays may not be less than the 

12 aggregate projected outlays for the preceding fiscal 

13 year. 

14 ‘‘(b) SEQUESTRATION.— 

15 ‘‘(1) IN GENERAL.— 

16 ‘‘(A) EXCESS SPENDING.—Not later than 

17 45 calendar days after the beginning of a fiscal 

18 year, OMB shall conduct a sequestration to 

19 eliminate the excess outlay amount. 

20 ‘‘(B) DEFINITIONS.— 

21 ‘‘(i) For fiscal years 2014 and 2015 

22 and for purposes of this subsection, the 

23 term ‘excess outlay amount’ means the 

24 amount by which total projected Federal 

25 outlays (less net interest payments) for a 


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1 fiscal year exceeds the outlay cap for that 

2 fiscal year. 

3 ‘‘(ii) For fiscal year 2016 and in sub4 sequent fiscal years and for purposes of 

5 this subsection, the term ‘excess outlay 

6 amount’ means the amount by which total 

7 projected Federal outlays for a fiscal year 

8 exceeds the outlay cap for that fiscal year. 

9 ‘‘(2) SEQUESTRATION.— 

10 ‘‘(A) On August 15 of each year, CBO 

11 shall issue a sequestration preview report as de12 scribed in section 254(c)(4). 

13 ‘‘(B) On August 20 of each year, OMB 

14 shall issue a sequestration preview report as de15 scribed in section 254(c)(4). 

16 ‘‘(C) On October 31 of each year, OMB 

17 shall issue its final sequestration report as de18 scribed in section 254(f)(3). It shall be accom19 panied by a Presidential order detailing uniform 

20 spending reductions equal to the excess outlay 

21 amount as defined in this section. 

22 ‘‘(D) The reductions shall generally follow 

23 the process set forth in sections 253 and 254, 

24 except as provided in this section. 


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1 ‘‘(3) CONGRESSIONAL ACTION.—If the August 

2 20 OMB report projects a sequestration, the Com3 mittees on Budget of the Senate and House of Rep4 resentatives may report a resolution directing their 

5 committees to change the existing law to achieve the 

6 spending reductions outlined in the August 20 re7 port necessary to meet the outlay limits. 

8 ‘‘(c) NO EXEMPT PROGRAMS.—Section 255 and sec9 tion 256 shall not apply to this section, except that pay10 ments for net interest (budget function 900) shall be ex11 empt from the spending reductions under sequestration. 

12 ‘‘(d) LOOK BACK.—If, after November 14, a bill re13 sulting in outlays for the fiscal year in progress is enacted 

14 that causes excess outlays, the excess outlay amount for 

15 the next fiscal year shall be increased by the amount or 

16 amounts of that breach.’’. 

17 (b) CONFORMING AMENDMENTS TO BBEDCA.— 

18 (1) SEQUESTRATION PREVIEW REPORTS.—Sec19 tion 254(c)(4) of the Balanced Budget and Emer20 gency Deficit Control Act of 1985 is amended to 

21 read as follows: 

22 ‘‘(4) OUTLAY CAP SEQUESTRATION REPORTS.— 

23 The preview reports shall set forth for the budget 

24 year estimates for the following: 


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1 ‘‘(A)(i) For each of budget years 2014 and 

2 2015: the aggregate projected outlays (less net 

3 interest payments), less one percent. 

4 ‘‘(ii) For budget year 2016 and each sub5 sequent budget year: the estimated gross do6 mestic product (GDP) for that budget year. 

7 ‘‘(B) The amount of reductions required 

8 under section 253A. 

9 ‘‘(C) The sequestration percentage nec10 essary to achieve the required reduction under 

11 section 253A.’’. 

12 (2) FINAL SEQUESTRATION REPORTS.—Section 

13 254(f) of the Balanced Budget and Emergency Def14 icit Control Act of 1985 is amended by inserting at 

15 the end the following: 

16 ‘‘(6) OUTLAY CAPS SEQUESTRATION RE17 PORTS.—The final reports shall contain all the infor18 mation required in the outlay cap sequestration pre19 view reports. In addition, these reports shall contain, 

20 for the budget year, for each account to be seques21 tered, estimates of the baseline level of sequestrable 

22 budgetary resources and resulting outlays and the 

23 amount of budgetary sources to be sequestered and 

24 result in outlay reductions. The reports shall also 

25 contain estimates of the effects on outlays on the seVerDate Mar 15 2010 04:24 Aug 07, 2013 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1436.IS S1436

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1 questration of each outyear for direct spending pro2 grams.’’. 

3 (c) ENFORCEMENT.—Title III of the Congressional 

4 Budget Act of 1974 is amended by adding after section 

5 315 the following: 

6 ‘‘SEC. 316. ENFORCEMENT PROCEDURES. 

7 ‘‘(a) OUTLAY CAPS.—It shall not be in order in the 

8 House of Representatives or the Senate to consider any 

9 bill, joint resolution, amendment, or conference report that 

10 includes any provision that would cause the most recently 

11 reported, current outlay cap set forth in section 253A of 

12 the Balanced Budget and Emergency Deficit Control Act 

13 of 1985 to be breached. 

14 ‘‘(b) WAIVER OR SUSPENSION.— 

15 ‘‘(1) IN THE SENATE.—The provisions of this 

16 section may be waived or suspended in the Senate 

17 only by the affirmative vote of two-thirds of the 

18 Members, duly chosen and sworn. 

19 ‘‘(2) IN THE HOUSE.—The provisions of this 

20 section may be waived or suspended in the House of 

21 Representatives only by a rule or order proposing 

22 only to waive such provisions by an affirmative vote 

23 of two-thirds of the Members, duly chosen and 

24 sworn. 


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1 ‘‘(c) POINT OF ORDER PROTECTION.—In the House, 

2 it shall not be in order to consider a rule or order that 

3 waives the application of paragraph (2) of subsection (b). 

4 ‘‘(d) MOTION TO SUSPEND.—It shall not be in order 

5 for the Speaker to entertain a motion to suspend the appli6 cation of this section under clause 1 of rule XV.’’. 

7 SEC. 4. CONFORMING AMENDMENTS. 

8 The table of contents set forth in— 

9 (1) section 1(b) of the Congressional Budget 

10 and Impoundment Control Act of 1974 is amended 

11 by inserting after the item relating to section 315 

12 the following new item: 

‘‘Sec. 316. Enforcement procedures.’’; 

13 and 

14 (2) section 250(a) of the Balanced Budget and 

15 Emergency Deficit Control Act of 1985 is amended 

16 by inserting after the item relating to section 253 

17 the following new item: 

‘‘Sec. 253A. Establishing outlay caps.’’. 

18 SEC. 5. EFFECTIVE DATE. 

19 This Act and the amendments made by it shall apply 

20 to fiscal year 2014 and subsequent fiscal years, including 

21 any reports and calculations required for implementation 

22 in fiscal year 2014. 

Æ 


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