II

104TH CONGRESS

1ST SESSION S. 494

To balance the Federal budget by fiscal year 2002 through the establishment

of Federal spending limits.

IN THE SENATE OF THE UNITED STATES

MARCH 3 (legislative day, FEBRUARY 22), 1995

Mr. KYL (for himself, Mr. GRAMS, Mr. ABRAHAM, and Mr. CRAIG) introduced

the following bill; which was read twice referred jointly pursuant to the

order of August 4, 1977, to the Committees on the Budget and Governmental Affairs, with instructions that if one committee reports, the other

committee have thirty days to report or be discharged

A BILL

To balance the Federal budget by fiscal year 2002 through

the establishment of Federal spending limits.

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 ‘‘Balanced Budget/

5 Spending Limitation Act of 1995’’.

6 SEC. 2. EFFECTIVE DATES.

7 Except as otherwise specified, this Act and the

8 amendments made by it shall take effect on its date of
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1 enactment and shall apply to fiscal year 1996 and subse2 quent fiscal years.

3 TITLE I—JOINT BUDGET

4 RESOLUTION

5 SEC. 101. JOINT BUDGET RESOLUTION.

6 (a) DEFINITIONS.—Paragraph (4) of section 3 of the

7 Congressional Budget Act of 1974 is amended to read as

8 follows:

9 ‘‘(4) the term ‘joint resolution on the budget’

10 means—

11 ‘‘(A) a joint resolution setting forth the

12 congressional budget for the United States Gov13 ernment for a fiscal year as provided in section

14 301; and

15 ‘‘(B) any other joint resolution revising the

16 congressional budget for the United States Gov17 ernment for a fiscal year as described in section

18 304.’’.

19 (b) JOINT RESOLUTION ON THE BUDGET.—(1) Sec20 tion 300 is amended by striking ‘‘concurrent resolution’’

21 each place it appears and inserting ‘‘joint resolution’’.

22 (2) Section 301(a) of the Congressional Budget Act

23 of 1974 is amended by striking ‘‘concurrent resolution’’

24 each place it appears including in the caption and insert25 ing ‘‘joint resolution’’.
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1 (3) Section 301(b) is amended by striking ‘‘concur2 rent resolution’’ each place it appears including in the cap3 tion and inserting ‘‘joint resolution’’.

4 (4) Section 301(c) is amended by striking ‘‘concur5 rent resolution’’ each place it appears and inserting ‘‘joint

6 resolution’’.

7 (5) Section 301(e) is amended by striking ‘‘concur8 rent resolution’’ each place it appears and inserting ‘‘joint

9 resolution’’.

10 (6) Section 301(f) is amended by striking ‘‘concur11 rent resolution’’ each place it appears and inserting ‘‘joint

12 resolution’’.

13 (7) Section 301(g) is amended by striking ‘‘concur14 rent resolution’’ each place it appears and inserting ‘‘joint

15 resolution’’.

16 (8) Section 301(h) is amended by striking ‘‘concur17 rent resolution’’ and inserting ‘‘joint resolution’’.

18 (9) Section 301(i) is amended by striking ‘‘concur19 rent resolution’’ each place it appears and inserting ‘‘joint

20 resolution’’.

21 (10) The section heading of section 301 is amended

22 by striking ‘‘ANNUAL ADOPTION OF CONCURRENT’’

23 and inserting ‘‘ANNUAL ADOPTION OF JOINT’’.

24 (11) The table of contents set forth in section 1(b)

25 of the Congressional Budget and Impoundment Control
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1 Act of 1974 is amended by striking ‘‘Annual adoption of

2 the concurrent’’ in the item relating to section 301 and

3 inserting ‘‘Annual adoption of the joint’’.

4 (12) Section 302 is amended by striking ‘‘concurrent

5 resolution’’ each place it appears and inserting ‘‘joint reso6 lution’’.

7 (13) Section 303, including the heading, is amended

8 by striking ‘‘concurrent resolution’’ each place it appears

9 and inserting ‘‘joint resolution’’.

10 (14) The table of contents set forth in section 1(b)

11 of the Congressional Budget and Impoundment Control

12 Act of 1974 is amended by striking ‘‘Concurrent’’ in the

13 item relating to section 303 and inserting ‘‘Joint’’.

14 (15) Section 304 is amended by striking ‘‘concurrent

15 resolution’’, including in the heading, each place it appears

16 and inserting ‘‘joint resolution’’.

17 (16) The table of contents set forth in section 1(b)

18 of the Congressional Budget and Impoundment Control

19 Act of 1974 is amended by striking ‘‘Concurrent’’ in the

20 item relating to section 304 and inserting ‘‘Joint’’.

21 (17) Section 305 is amended by striking ‘‘concurrent

22 resolution’’, including in the heading, each place it appears

23 and inserting ‘‘joint resolution’’.
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1 (18) Section 308 is amended by striking ‘‘concurrent

2 resolution’’ each place it appears and inserting ‘‘joint reso3 lution’’.

4 (19) Section 310 is amended by striking ‘‘concurrent

5 resolution’’ each place it appears and inserting ‘‘joint reso6 lution’’.

7 (20) Section 311 is amended by striking ‘‘concurrent

8 resolution’’ each place it appears and inserting ‘‘joint reso9 lution’’.

10 TITLE II—BALANCED BUDGET

11 AND SPENDING RESTRAINTS

12 SEC. 201. BALANCED BUDGET AND SPENDING RESTRAINTS.

13 (a) FEDERAL SPENDING LIMIT.—Section 601(a) of

14 the Congressional Budget Act of 1974 is amended by add15 ing at the end the following:

16 ‘‘(3) FEDERAL SPENDING LIMIT.—The term

17 ‘Federal spending limit’ means—

18 ‘‘(A) with respect to fiscal year 1996, out19 lays not exceeding 21.5 per centum of the GDP;

20 ‘‘(B) with respect to fiscal year 1997, out21 lays not exceeding 21 per centum of the GDP;

22 ‘‘(C) with respect to fiscal year 1998, out23 lays not exceeding 20.5 per centum of the GDP;

24 ‘‘(D) with respect to fiscal year 1999, out25 lays not exceeding 20 per centum of the GDP;
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1 ‘‘(E) with respect to fiscal year 2000, out2 lays not exceeding 19.5 per centum of the GDP;

3 ‘‘(F) with respect to fiscal year 2001, out4 lays not exceeding 19 per centum of the GDP;

5 and

6 ‘‘(G) with respect to fiscal year 2002 and

7 each fiscal year thereafter, outlays not exceed8 ing 19 per centum of the GDP or the maximum

9 deficit amount whichever is less.

10 ‘‘(4) GDP.—The term ‘GDP’ means the gross

11 domestic product for the relevant fiscal year.’’.

12 (b) MAXIMUM DEFICIT AMOUNT.—Section 601(a)(1)

13 of the Congressional Budget Act of 1974 is amended to

14 read as follows:

15 ‘‘(1) MAXIMUM DEFICIT AMOUNT.—The term

16 ‘maximum deficit amount’ means—

17 ‘‘(A) with respect to fiscal years 1996

18 through 2001, the excess of the Federal spend19 ing limit over revenues; and

20 ‘‘(B) with respect to fiscal year 2002, and

21 each fiscal year thereafter, zero.’’.

22 (c) TECHNICAL AMENDMENTS.—Part C of the Bal23 anced Budget and Emergency Deficit Control Act of 1985

24 is amended—
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1 (1) in the heading for such part by inserting

2 ‘‘Federal spending limit and’’ after ‘‘excess of’’;

3 (2) in section 250(c)(1) by inserting ‘‘ , ‘Federal

4 spending limit’, ’’ after ‘‘deficit amount’ ’’;

5 (3) in section 253(b)(1) by inserting ‘‘or Fed6 eral spending limit, as applicable,’’ after ‘‘deficit

7 amount’’; and

8 (4) in section 254(d)(4)(A) by inserting ‘‘the

9 Federal spending limit,’’ after ‘‘deficit amount,’’.

10 SEC. 202. MAXIMUM DEFICIT AND FEDERAL SPENDING

11 LIMIT POINT OF ORDER.

12 (a) MDSA POINT OF ORDER.—Section 605(b) of the

13 Congressional Budget Act of 1974 is amended to read as

14 follows:

15 ‘‘(b) MAXIMUM DEFICIT AND FEDERAL SPENDING

16 LIMIT POINT OF ORDER.—

17 ‘‘(1) IN GENERAL.—It shall not be in order in

18 the House of Representatives or the Senate to con19 sider any bill, joint resolution, amendment, or con20 ference report that includes any provision that would

21 result in a deficit for a fiscal year that exceeds the

22 maximum deficit amount or Federal spending limit,

23 as applicable, for such fiscal year.

24 ‘‘(2) WAIVER OR SUSPENSION.—This subsection

25 may be waived or suspended in the House of Rep-
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1 resentatives or the Senate only by the affirmative

2 rollcall vote of three-fifths of the Members, duly cho3 sen and sworn.’’.

4 (b) LIMIT ON PUBLIC DEBT.—Section 605 of the

5 Congressional Budget Act of 1974 is amended by adding

6 at the end thereof the following:

7 ‘‘(c) LIMIT ON PUBLIC DEBT.—

8 ‘‘(1) IN GENERAL.—

9 ‘‘(A) FISCAL YEARS 1996 THROUGH 2001.—

10 For fiscal years 1996 through 2001, it shall not

11 be in order in the House of Representatives or

12 the Senate to consider any bill, joint resolution,

13 amendment, or conference report that includes

14 any provision that increases the national debt

15 held by the public established in the joint reso16 lution on the budget for a fiscal year in excess

17 of the Federal spending limit.

18 ‘‘(B) FISCAL YEAR 2002 AND THERE19 AFTER.—Notwithstanding any other provision

20 of law and for fiscal year 2002 and fiscal years

21 thereafter, there shall be no increase in the na22 tional debt held by the public.

23 ‘‘(2) WAIVER OR SUSPENSION.—Paragraphs

24 (1)(A) and (1)(B) may be waived or suspended in

25 the House of Representatives or the Senate only by
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1 the affirmative roll call vote of three-fifths of the

2 Members, duly chosen and sworn.’’.

3 SEC. 203. SOCIAL SECURITY FIREWALL.

4 Section 301(i) of the Congressional Budget Act of

5 1974 is amended to read as follows:

6 ‘‘(i) SOCIAL SECURITY POINT OF ORDER.—

7 ‘‘(1) IN GENERAL.—It shall not be in order in

8 the Senate or the House of Representatives to con9 sider any bill, joint resolution, amendment, or con10 ference report that does not allocate savings derived

11 from changes in social security benefits or revenues

12 from social security tax increases to the social secu13 rity trust fund.

14 ‘‘(2) WAIVER OR SUSPENSION.—This subsection

15 may be waived or suspended in the House of Rep16 resentatives or the Senate only by the affirmative

17 rollcall vote of three-fifths of the Members, duly cho18 sen and sworn.’’.

19 SEC. 204. MID-YEAR SEQUESTER AND END OF THE YEAR SE20 QUESTER.

21 Section 253 of the Balanced Budget and Emergency

22 Deficit Control Act of 1985 is amended by adding at the

23 end thereof the following new subsections:

24 ‘‘(i) MID-YEAR SEQUESTER.—
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1 ‘‘(1) IN GENERAL.—On April 1 of each fiscal

2 year, the Director of OMB shall determine if laws

3 effective during the current fiscal year will cause the

4 deficit to exceed the maximum deficit or Federal

5 spending limit, as applicable, for such fiscal year. If

6 the limit is exceeded, there shall be a preliminary se7 quester on April 1 to eliminate the excess.

8 ‘‘(2) PERMANENT SEQUESTER.—Budget au9 thority sequestered on April 1 pursuant to para10 graph (1) shall be permanently canceled on April 15.

11 ‘‘(3) NO MARGIN.—The margin for determining

12 a sequester under this subsection shall be zero.

13 ‘‘(4) SEQUESTRATION PROCEDURES.—The pro14 vision of subsections (c), (d), and (e) of this section

15 shall apply to a sequester under this subsection.

16 ‘‘(j) END OF THE YEAR SEQUESTER.—

17 ‘‘(1) IN GENERAL.—On September 30 of each

18 fiscal year, the Director of OMB shall determine if

19 laws effective during the current fiscal year will

20 cause the deficit to exceed the maximum deficit or

21 Federal spending limit, as applicable, for such fiscal

22 year. If the limit is exceeded, there shall be a pre23 liminary sequester on October 1 applicable to the fis24 cal year beginning on that date to eliminate the ex25 cess.
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1 ‘‘(2) PERMANENT SEQUESTER.—Budget au2 thority sequestered on October 1 pursuant to para3 graph (1) shall be permanently canceled on October

4 15.

5 ‘‘(3) NO MARGIN.—The margin for determining

6 a sequester under this subsection shall be zero.

7 ‘‘(4) SEQUESTRATION PROCEDURES.—The pro8 vision of subsections (c), (d), and (e) of this section

9 shall apply to a sequester under this subsection.’’.

10 SEC. 206. PRESIDENT’S REVISED BUDGET FOR 1996.

11 Not later than May 6, 1995, or 90 days after the

12 date of enactment of this Act, whichever is later, the

13 President shall submit a revised budget for fiscal year

14 1996 that conforms to the spending limitations established

15 in this Act.

16 SEC. 207. SAVINGS PROVISION.

17 The amendments made by this title, the limits estab18 lished by this title, and the procedures provided in Acts

19 amended by this title necessary to enforce such limits shall

20 apply with respect to fiscal years beginning with fiscal

21 year 1996 and shall continue notwithstanding the termi22 nation of any Act setting forth such procedures.

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