I 

112TH CONGRESS 

1ST SESSION H. R. 1848 

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

budget through reductions of discretionary and mandatory spending. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2011 

Mr. MACK (for himself, Mr. BROUN of Georgia, Mrs. LUMMIS, Mr. RIBBLE, 

Mr. STUTZMAN, Mr. CAMPBELL, Mr. BARTLETT, Mr. KING of Iowa, Mr. 

ROSS of Florida, Mr. MILLER of Florida, Mr. DUNCAN of Tennessee, Mr. 

WEST, Mr. GARRETT, and Mr. GINGREY of Georgia) introduced the following bill; which was referred to the Committee on the Budget, and in 

addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

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 2011’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE. 

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


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1 (1) The fiscal crisis faced by the Federal Gov2 ernment demands immediate action. 

3 (2) The dramatic growth in spending and debt 

4 in recent years threatens our economic and national 

5 security: 

6 (A) Federal spending has grown from 18 

7 percent of GDP in 2001 to 24 percent of GDP 

8 in 2010. 

9 (B) Total Federal debt exceeds $14 trillion 

10 and has increased $4 trillion in the past three 

11 years alone. 

12 (C) Without action, the Federal govern13 ment will continue to run massive deficits in the 

14 next decade and total Federal debt will rise to 

15 $24 trillion by 2021. 

16 (D) Interest payments on this debt will 

17 soon rise to the point where balancing the 

18 budget as a matter of policy is beyond the reach 

19 of Congress. 

20 (3) From 1980 to 2010, Federal revenues aver21 aged 18 percent of GDP and are projected to return 

22 to that level within the next decade. 

23 (4) Absent reform, the growth of Social Secu24 rity, Medicare, and Medicaid will overwhelm all 


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1 other Federal programs and consume all projected 

2 tax revenues. 

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

4 the fiscal crisis by— 

5 (1) acting quickly to balance the Federal budg6 et and eliminate the parade of deficits and bal7 looning interest payments; 

8 (2) achieving balance by reducing spending one 

9 percent per year until spending equals projected 

10 long-term revenues; and 

11 (3) reforming entitlement programs to ensure 

12 long-term fiscal stability and balance. 

13 SEC. 3. ESTABLISHMENT AND ENFORCEMENT OF SPEND14 ING CAPS. 

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

16 Emergency Deficit Control Act of 1985 is amended by in17 serting after section 253 the following new section: 

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

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

20 cap’ means: 

21 ‘‘(1) FISCAL YEAR 2012.—For fiscal year 2012, 

22 the aggregate projected outlays (less net interest 

23 payments) for fiscal year 2012 shall be 

24 $3,382,000,000,000, less one percent. 


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1 ‘‘(2) FISCAL YEAR 2013.—For fiscal year 2013, 

2 the aggregate projected outlays (less net interest 

3 payments) for fiscal year 2013 shall be the amount 

4 computed under paragraph (1), less one percent. 

5 ‘‘(3) FISCAL YEAR 2014.—For fiscal year 2014, 

6 the aggregate projected outlays (less net interest 

7 payments) for fiscal year 2014 shall be the amount 

8 computed under paragraph (2), less one percent. 

9 ‘‘(4) FISCAL YEAR 2015.—For fiscal year 2015, 

10 the aggregate projected outlays (less net interest 

11 payments) for fiscal year 2015 shall be the amount 

12 computed under paragraph (3), less one percent. 

13 ‘‘(5) FISCAL YEAR 2016.—For fiscal year 2016, 

14 the aggregate projected outlays (less net interest 

15 payments) for fiscal year 2016 shall be the amount 

16 computed under paragraph (4), less one percent. 

17 ‘‘(6) FISCAL YEAR 2017.—For fiscal year 2017, 

18 the aggregate projected outlays (less net interest 

19 payments) for fiscal year 2017 shall be the amount 

20 computed under paragraph (5), less one percent. 

21 ‘‘(7) FISCAL YEAR 2018 AND SUBSEQUENT FIS22 CAL YEARS.—(A) For fiscal year 2018 and each sub23 sequent fiscal year, the aggregate projected outlays 

24 shall be 18 percent of the gross domestic product for 


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1 that fiscal year as estimated by OMB prior to March 

2 of the previous fiscal year. 

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

4 fiscal year beginning with fiscal year 2019, the ag5 gregate projected outlays may not be less than the 

6 aggregate projected outlays for the preceding fiscal 

7 year. 

8 ‘‘(b) SEQUESTRATION.— 

9 ‘‘(1) IN GENERAL.— 

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

11 45 calendar days after the beginning of a fiscal 

12 year, OMB shall conduct a sequestration to 

13 eliminate the excess outlay amount. 

14 ‘‘(B) DEFINITIONS.— 

15 ‘‘(i) For fiscal years 2012 through 

16 2017 and for purposes of this subsection, 

17 the term ‘excess outlay amount’ means the 

18 amount by which total Federal outlays 

19 (less net interest payments) for a fiscal 

20 year exceeds the outlay cap for that fiscal 

21 year. 

22 ‘‘(ii) For fiscal year 2018 and in sub23 sequent fiscal years and for purposes of 

24 this subsection, the term ‘excess outlay 

25 amount’ means the amount by which total 


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1 Federal outlays for a fiscal year exceeds 

2 the outlay cap for that fiscal year. 

3 ‘‘(2) SEQUESTRATION.— 

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

5 shall issue a sequestration preview report as de6 scribed in section 254(c)(4). 

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

8 shall issue a sequestration preview report as de9 scribed in section 254(c)(4). 

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

11 shall issue its final sequestration report as de12 scribed in section 254(f)(3). It shall be accom13 panied by a Presidential order detailing uniform 

14 spending reductions equal to the excess outlay 

15 amount as defined in this section. 

16 ‘‘(D) The reductions shall generally follow 

17 the process set forth in section 253 and 254, 

18 except as provided in this section. 

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

20 20 OMB report projects a sequestration, the Com21 mittees on Budget of the Senate and House of Rep22 resentatives may report a resolution directing their 

23 committees to change the existing law to achieve the 

24 spending reductions outlined in the August 20 re25 port necessary to meet the outlay limits. 


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1 ‘‘(c) NO EXEMPT PROGRAMS.—Section 255 and sec2 tion 256 shall not apply to this section, except that pay3 ments for net interest (budget function 900) shall be ex4 empt from the spending reductions under sequestration. 

5 ‘‘(d) LOOK BACK.—If, after November 15, a bill re6 sulting in outlays for the fiscal year in progress is enacted 

7 that causes excess outlays, the excess outlay amount for 

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

9 amounts of that breach.’’. 

10 (b) CONFORMING AMENDMENTS TO BBEDCA.— 

11 (1) SEQUESTRATION PREVIEW REPORTS.—Sec12 tion 254(c)(4) of the Balanced Budget and Emer13 gency Deficit Control Act of 1985 is amended to 

14 read as follows: 

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

16 The preview reports shall set forth for the budget 

17 year estimates for the following: 

18 ‘‘(A)(i) For each of budget years 2012 

19 through 2017: the aggregate projected outlays 

20 (less net interest payment), less one percent. 

21 ‘‘(ii) For budget year 2018 and each sub22 sequent budget year: the estimated gross do23 mestic product (GDP) for that budget year. 

24 ‘‘(B) The amount of reductions required 

25 under section 253A. 


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1 ‘‘(C) The sequestration percentage nec2 essary to achieve the required reduction under 

3 section 253A.’’. 

4 (2) FINAL SEQUESTRATION REPORTS.—Section 

5 254(f)(3) of the Balanced Budget and Emergency 

6 Deficit Control Act of 1985 is amended to read as 

7 follows: 

8 ‘‘(3) OUTLAY CAPS SEQUESTRATION RE9 PORTS.—The final reports shall contain all the infor10 mation required in the outlay cap sequestration pre11 view reports. In addition, these report shall contain, 

12 for the budget year, for each account to be seques13 tered, estimates of the baseline level of sequestrable 

14 budgetary resources and resulting outlays and the 

15 amount of budgetary sources to be sequestered and 

16 result in outlay reductions. The report shall also 

17 contain estimates of the effects on outlays on the se18 questration of each outyear for direct spending pro19 grams.’’. 

20 (3) REPEAL OF EXPIRATION DATE.—Section 

21 275 of the Balanced Budget and Emergency Deficit 

22 Control Act of 1985 is repealed. 

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

24 Budget Act of 1974 is amended by adding after section 

25 315 the following: 


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1 ‘‘SEC. 316. ENFORCEMENT PROCEDURES. 

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

3 House of Representatives or the Senate to consider any 

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

5 includes any provision that would cause the most recently 

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

7 the Balanced Budget and Emergency Deficit Control Act 

8 of 1985 to be breached. 

9 ‘‘(b) WAIVER OR SUSPENSION.— 

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

11 section may be waived or suspended in the Senate 

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

13 Members, duly chosen and sworn. 

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

15 section may be waived or suspended in the House of 

16 Representatives only by a rule or order proposing 

17 only to waive such provisions by an affirmative vote 

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

19 sworn. 

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

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

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

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

24 for the Speaker to entertain a motion to suspend the appli25 cation of this section under clause 1 of rule XV.’’. 


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1 SEC. 4. CONFORMING AMENDMENTS. 

2 The table of contents set forth in— 

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

4 and Impoundment Control Act of 1974 is amended 

5 by inserting after the item relating to section 315 

6 the following new item: 

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

7 and 

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

9 Emergency Deficit Control Act of 1985 is amended 

10 by inserting after the item relating to section 253 

11 the following new item: 

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

12 SEC. 5. EFFECTIVE DATE. 

13 This Act and the amendments made by it shall apply 

14 to fiscal year 2012 and subsequent fiscal years, including 

15 any reports and calculations required for implementation 

16 in fiscal year 2012. 

Æ 


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