II 

113TH CONGRESS 

1ST SESSION S. 547 

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 

MARCH 13, 2013 

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

and Mr. ISAKSON) 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 $26,000,000,000,000 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 $3,329,000,000,000, 

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.—For fiscal year 2016, 

4 the aggregate outlays (less net interest payments) 

5 for fiscal year 2016 shall be the amount computed 

6 under paragraph (2), less one percent. 

7 ‘‘(4) FISCAL YEAR 2017 AND SUBSEQUENT FIS8 CAL YEARS.—(A) For fiscal year 2017 and each sub9 sequent fiscal year, the aggregate outlays shall be 19 

10 percent of the gross domestic product for that fiscal 

11 year as estimated by OMB prior to March of the 

12 previous fiscal year. 

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

14 fiscal year beginning with fiscal year 2018, the ag15 gregate projected outlays may not be less than the 

16 aggregate projected outlays for the preceding fiscal 

17 year. 

18 ‘‘(b) SEQUESTRATION.— 

19 ‘‘(1) IN GENERAL.— 

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

21 45 calendar days after the beginning of a fiscal 

22 year, OMB shall conduct a sequestration to 

23 eliminate the excess outlay amount. 

24 ‘‘(B) DEFINITIONS.— 

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1 ‘‘(i) For fiscal years 2014 through 

2 2016 and for purposes of this subsection, 

3 the term ‘excess outlay amount’ means the 

4 amount by which total projected Federal 

5 outlays (less net interest payments) for a 

6 fiscal year exceeds the outlay cap for that 

7 fiscal year. 

8 ‘‘(ii) For fiscal year 2017 and in sub9 sequent fiscal years and for purposes of 

10 this subsection, the term ‘excess outlay 

11 amount’ means the amount by which total 

12 projected Federal outlays for a fiscal year 

13 exceeds the outlay cap for that fiscal year. 

14 ‘‘(2) SEQUESTRATION.— 

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

16 shall issue a sequestration preview report as de17 scribed in section 254(c)(4). 

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

19 shall issue a sequestration preview report as de20 scribed in section 254(c)(4). 

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

22 shall issue its final sequestration report as de23 scribed in section 254(f)(3). It shall be accom24 panied by a Presidential order detailing uniform 

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1 spending reductions equal to the excess outlay 

2 amount as defined in this section. 

3 ‘‘(D) The reductions shall generally follow 

4 the process set forth in sections 253 and 254, 

5 except as provided in this section. 

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

7 20 OMB report projects a sequestration, the Com8 mittees on Budget of the Senate and House of Rep9 resentatives may report a resolution directing their 

10 committees to change the existing law to achieve the 

11 spending reductions outlined in the August 20 re12 port necessary to meet the outlay limits. 

13 ‘‘(c) NO EXEMPT PROGRAMS.—Section 255 and sec14 tion 256 shall not apply to this section, except that pay15 ments for net interest (budget function 900) shall be ex16 empt from the spending reductions under sequestration. 

17 ‘‘(d) LOOK BACK.—If, after November 14, a bill re18 sulting in outlays for the fiscal year in progress is enacted 

19 that causes excess outlays, the excess outlay amount for 

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

21 amounts of that breach.’’. 

22 (b) CONFORMING AMENDMENTS TO BBEDCA.— 

23 (1) SEQUESTRATION PREVIEW REPORTS.—Sec24 tion 254(c)(4) of the Balanced Budget and Emermstockstill on DSK4VPTVN1PROD with BILLS

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1 gency Deficit Control Act of 1985 is amended to 

2 read as follows: 

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

4 The preview reports shall set forth for the budget 

5 year estimates for the following: 

6 ‘‘(A)(i) For each of budget years 2014 

7 through 2016: the aggregate projected outlays 

8 (less net interest payments), less one percent. 

9 ‘‘(ii) For budget year 2017 and each sub10 sequent budget year: the estimated gross do11 mestic product (GDP) for that budget year. 

12 ‘‘(B) The amount of reductions required 

13 under section 253A. 

14 ‘‘(C) The sequestration percentage nec15 essary to achieve the required reduction under 

16 section 253A.’’. 

17 (2) FINAL SEQUESTRATION REPORTS.—Section 

18 254(f)(3) of the Balanced Budget and Emergency 

19 Deficit Control Act of 1985 is amended to read as 

20 follows: 

21 ‘‘(3) OUTLAY CAPS SEQUESTRATION RE22 PORTS.—The final reports shall contain all the infor23 mation required in the outlay cap sequestration pre24 view reports. In addition, these reports shall contain, 

25 for the budget year, for each account to be sequesmstockstill on DSK4VPTVN1PROD with BILLS

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1 tered, estimates of the baseline level of sequestrable 

2 budgetary resources and resulting outlays and the 

3 amount of budgetary sources to be sequestered and 

4 result in outlay reductions. The reports shall also 

5 contain estimates of the effects on outlays on the se6 questration of each outyear for direct spending pro7 grams.’’. 

8 (3) REPEAL OF EXPIRATION DATE.—Section 

9 275 of the Balanced Budget and Emergency Deficit 

10 Control Act of 1985 is repealed. 

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

12 Budget Act of 1974 is amended by adding after section 

13 315 the following: 

14 ‘‘SEC. 316. ENFORCEMENT PROCEDURES. 

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

16 House of Representatives or the Senate to consider any 

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

18 includes any provision that would cause the most recently 

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

20 the Balanced Budget and Emergency Deficit Control Act 

21 of 1985 to be breached. 

22 ‘‘(b) WAIVER OR SUSPENSION.— 

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

24 section may be waived or suspended in the Senate 

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

2 Members, duly chosen and sworn. 

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

4 section may be waived or suspended in the House of 

5 Representatives only by a rule or order proposing 

6 only to waive such provisions by an affirmative vote 

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

8 sworn. 

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

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

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

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

13 for the Speaker to entertain a motion to suspend the appli14 cation of this section under clause 1 of rule XV.’’. 

15 SEC. 4. CONFORMING AMENDMENTS. 

16 The table of contents set forth in— 

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

18 and Impoundment Control Act of 1974 is amended 

19 by inserting after the item relating to section 315 

20 the following new item: 

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

21 and 

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

23 Emergency Deficit Control Act of 1985 is amended 

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1 by inserting after the item relating to section 253 

2 the following new item: 

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

3 SEC. 5. EFFECTIVE DATE. 

4 This Act and the amendments made by it shall apply 

5 to fiscal year 2014 and subsequent fiscal years, including 

6 any reports and calculations required for implementation 

7 in fiscal year 2014. 

Æ 

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