I 

109TH CONGRESS 

1ST SESSION H. R. 523

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 

to extend the discretionary spending limits through fiscal year 2010, 

to extend paygo for direct spending, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 2, 2005

Mr. BARRETT of South Carolina 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 amend the Balanced Budget and Emergency Deficit Control Act of 1985 to extend the discretionary spending 

limits through fiscal year 2010, to extend paygo for 

direct spending, and for other purposes.

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 ‘‘Common Sense Spend5 ing Act of 2005’’. 
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1 SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS. 

2 (a) ADJUSTMENTS TO DISCRETIONARY SPENDING

3 LIMITS.—In the matter that precedes subparagraph (A) 

4 of section 251(b)(2) of the Balanced Budget and Emer5 gency Deficit Control Act of 1985, strike ‘‘through 2002’’. 

6 (b) DISCRETIONARY SPENDING LIMIT.—Section 

7 251(c) of the Balanced Budget and Emergency Deficit 

8 Control Act of 1985 is amended as follows: 

9 (1) Strike paragraphs (1) through (16) and in10 sert the following new paragraphs: 

11 ‘‘(1) with respect to fiscal year 2006, for the 

12 discretionary category: $837,196,960,000 in total 

13 new budget authority of which not less than 

14 $434,139,940,000 shall be for the defense category 

15 and of which not less than $32,180,020,000 shall be 

16 for homeland security activities outside of the de17 fense category and $906,352,000,000 in total out18 lays of which not less than $439,419,000,000 shall 

19 be for the defense category and of which not less 

20 than $30,854,000,000 in total outlays shall be for 

21 the homeland security category outside of the de22 fense category; 

23 ‘‘(2) with respect to fiscal year 2007, for the 

24 discretionary category: an amount of new budget au25 thority equal to the amount of total new budget au26 thority specified in paragraph (1) adjusted to reflect 
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1 the change in Consumer Price Index over the pre2 vious 12 months prior to October 1, 2005; 

3 ‘‘(3) with respect to fiscal year 2008, for the 

4 discretionary category: an amount of new budget au5 thority equal to the amount of total new budget au6 thority provided under paragraph (2) adjusted to re7 flect the change in Consumer Price Index over the 

8 previous 12 months prior to October 1, 2006; 

9 ‘‘(4) with respect to fiscal year 2009, for the 

10 discretionary category: an amount of new budget au11 thority equal to the amount of total new budget au12 thority specified in paragraph (3) adjusted to reflect 

13 the change in Consumer Price Index over the pre14 vious 12 months prior to October 1, 2007; and 

15 ‘‘(5) with respect to fiscal year 2010, for the 

16 discretionary category: an amount of new budget au17 thority equal to the amount of total new budget au18 thority specified in paragraph (4) adjusted to reflect 

19 the change in Consumer Price Index over the pre20 vious 12 months prior to October 1, 2008;’’. 

21 (c) ADJUSTMENTS TO DISCRETIONARY SPENDING

22 LIMITS.—

23 (1) Section 251(b)(2) of the Balanced Budget 

24 and Emergency Deficit Control Act of 1985 is 

25 amended by striking subparagraphs (C) through (H) 
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1 and by inserting after subparagraph (B) the fol2 lowing new subparagraph: 

3 ‘‘(C) ACCRUAL ACCOUNTING.—If a bill or 

4 joint resolution is enacted that charges Federal 

5 agencies for the full cost of accrued Federal re6 tirement and health benefits and a bill or joint 

7 resolution making appropriations is enacted 

8 that provides new budget authority to carry out 

9 the legislation charging Federal agencies for 

10 such accrued costs, the adjustment shall be 

11 equal to the reduction in mandatory budget au12 thority and the outlays flowing therefrom esti13 mated to result from the legislation charging 

14 Federal agencies for such accrued costs.’’. 

15 (2) Section 251(b)(2)(A) of the Balanced Budg16 et and Emergency Deficit Control Act of 1985 is 

17 amended by striking the last sentence. 

18 (d) DEFINITION OF CONSUMER PRICE INDEX.—Sec19 tion 3 of the Congressional Budget and Impoundment 

20 Control Act of 1974 is amended by adding at the end the 

21 following new paragraph: 

22 ‘‘(11) The term ‘Consumer Price Index’ refers 

23 to the Consumer Price Index for All Urban Con24 sumers (all items; United States city average), pub25 lished by the Bureau of Labor Statistics.’’. 
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1 SEC. 3. EXTENSION OF PAY-AS-YOU-GO. 

2 Section 252 of the Balanced Budget and Emergency 

3 Deficit Control Act of 1985 is amended to read as follows: 

4 ‘‘SEC. 252. ENFORCING PAY-AS-YOU-GO. 

5 ‘‘(a) PURPOSE.—The purpose of this section is to as6 sure that any legislation enacted before October 1, 2010, 

7 affecting direct spending that increases the deficit will 

8 trigger an offsetting sequestration. 

9 ‘‘(b) SEQUESTRATION.—

10 ‘‘(1) TIMING.—Not later than 15 calendar days 

11 after the date Congress adjourns to end a session 

12 and on the same day as a sequestration (if any) 

13 under section 251, there shall be a sequestration to 

14 offset the amount of any net deficit increase caused 

15 by all direct spending legislation enacted before Oc16 tober 1, 2010, as calculated under paragraph (2). 

17 ‘‘(2) CALCULATION OF DEFICIT INCREASE.—

18 OMB shall calculate the amount of deficit increase 

19 or decrease by adding—

20 ‘‘(A) all OMB estimates for the budget 

21 year of direct spending legislation transmitted 

22 under subsection (d); 

23 ‘‘(B) the estimated amount of savings in 

24 direct spending programs applicable to budget 

25 year resulting from the prior year’s sequestra26 tion under this section or, if any, as published 
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1 in OMB’s final sequestration report for that 

2 prior year; and 

3 ‘‘(C) any net deficit increase or decrease in 

4 the current year resulting from all OMB esti5 mates for the current year of direct spending 

6 legislation transmitted under subsection (d) of 

7 this section that were not reflected in the final 

8 OMB sequestration report for the current year. 

9 ‘‘(D) for fiscal year 2005, before making 

10 the calculations required in subparagraphs (A) 

11 through (C), OMB shall assume an automatic 

12 deficit increase of $8,400,000,000. 

13 ‘‘(c) ELIMINATING A DEFICIT INCREASE.—(1) The 

14 amount required to be sequestered in a fiscal year under 

15 subsection (b) shall be obtained from non-exempt direct 

16 spending accounts from actions taken in the following 

17 order: 

18 ‘‘(A) FIRST.—All reductions in automatic 

19 spending increases specified in section 256(a) 

20 shall be made. 

21 ‘‘(B) SECOND.—If additional reductions in 

22 direct spending accounts are required to be 

23 made, the maximum reductions permissible 

24 under sections 256(b) (guaranteed and direct 
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1 student loans) and 256(c) (foster care and 

2 adoption assistance) shall be made. 

3 ‘‘(C) THIRD.—(i) If additional reductions 

4 in direct spending accounts are required to be 

5 made, each remaining non-exempt direct spend6 ing account shall be reduced by the uniform 

7 percentage necessary to make the reductions in 

8 direct spending required by paragraph (1); ex9 cept that the medicare programs specified in 

10 section 256(d) shall not be reduced by more 

11 than 4 percent and the uniform percentage ap12 plicable to all other direct spending programs 

13 under this paragraph shall be increased (if nec14 essary) to a level sufficient to achieve the re15 quired reduction in direct spending. 

16 ‘‘(ii) For purposes of determining reduc17 tions under clause (i), outlay reductions (as a 

18 result of sequestration of Commodity Credit 

19 Corporation commodity price support contracts 

20 in the fiscal year of a sequestration) that would 

21 occur in the following fiscal year shall be cred22 ited as outlay reductions in the fiscal year of 

23 the sequestration. 

24 ‘‘(2) For purposes of this subsection, accounts 

25 shall be assumed to be at the level in the baseline 
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1 for fiscal year 2006 and for fiscal years 2007 

2 through 2010 at the baseline after adjusting for any 

3 sequester in fiscal year 2005. 

4 ‘‘(d) ESTIMATES.—

5 ‘‘(1) CBO ESTIMATES.—As soon as practicable 

6 after Congress completes action on any direct spend7 ing, CBO shall provide an estimate to OMB of that 

8 legislation. 

9 ‘‘(2) OMB ESTIMATES.—Not later than 7 cal10 endar days (excluding Saturdays, Sundays, and legal 

11 holidays) after the date of enactment of any direct 

12 spending, OMB shall transmit a report to the House 

13 of Representatives and to the Senate containing—

14 ‘‘(A) the CBO estimate of that legislation; 

15 ‘‘(B) an OMB estimate of that legislation 

16 using current economic and technical assump17 tions; and 

18 ‘‘(C) an explanation of any difference be19 tween the 2 estimates. 

20 ‘‘(3) SIGNIFICANT DIFFERENCES.—If during 

21 the preparation of the report under paragraph (2) 

22 OMB determines that there is a significant dif23 ference between the OMB and CBO estimates, OMB 

24 shall consult with the Committees on the Budget of 

25 the House of Representatives and the Senate regard-
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1 ing that difference and that consultation, to the ex2 tent practicable, shall include written communication 

3 to such committees that affords such committees the 

4 opportunity to comment before the issuance of that 

5 report. 

6 ‘‘(4) SCOPE OF ESTIMATES.—The estimates 

7 under this section shall include the amount of 

8 change in outlays for the current year (if applica9 ble), the budget year, and each outyear excluding 

10 any amounts resulting from—

11 ‘‘(A) full funding of, and continuation of, 

12 the deposit insurance guarantee commitment in 

13 effect under current estimates; and 

14 ‘‘(B) emergency provisions as designated 

15 under subsection (e). 

16 ‘‘(5) SCOREKEEPING GUIDELINES.—OMB and 

17 CBO, after consultation with each other and the 

18 Committees on the Budget of the House of Rep19 resentatives and the Senate, shall—

20 ‘‘(A) determine common scorekeeping 

21 guidelines; and 

22 ‘‘(B) in conformance with such guidelines, 

23 prepare estimates under this section. 

24 ‘‘(e) EMERGENCY LEGISLATION.—If a provision of 

25 direct spending legislation is enacted that the President 
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1 designates as an emergency requirement and that the Con2 gress so designates in statute, the amounts of new budget 

3 authority, outlays, and receipts in all fiscal years resulting 

4 from that provision shall be designated as an emergency 

5 requirement in the reports required under subsection (d) 

6 of this section.’’. 

7 SEC. 4. CONFORMING AMENDMENTS. 

8 (a) EXPIRATION.—(1) Section 254(c)(2) of the Bal9 anced Budget and Emergency Deficit Control Act of 1985 

10 is amended by striking ‘‘2002’’ and inserting ‘‘2010’’. 

11 (2) Section 254(f)(2)(A) of the Balanced Budget and 

12 Emergency Deficit Control Act of 1985 is amended by 

13 striking ‘‘2002’’ and inserting ‘‘2010’’. 

14 (b) EXPIRATION.—Section 275(b) of the Balanced 

15 Budget and Emergency Deficit Control Act of 1985 is 

16 amended by striking ‘‘2002’’ and inserting ‘‘2010’’. 

17 SEC. 5. EMERGENCY SPENDING LEGISLATION AND THE 

18 BASELINE. 

19 (a) IN GENERAL.—Section 257(a) of the Balanced 

20 Budget and Emergency Deficit Control Act of 1985 is 

21 amended by inserting ‘‘, except for emergency appropria22 tions covered by section 251(b)(2)(A) and emergency leg23 islation covered by section 252(e)’’ before the period. 

24 (b) DIRECT SPENDING AND RECEIPTS.—Section 

25 257(b)(2) of the Balanced Budget and Emergency Deficit 
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1 Control Act of 1985 is amended by adding at the end the 

2 following new subparagraph: 

3 ‘‘(E) Emergency legislation covered by sec4 tion 252(e) shall not be extended in the base5 line.’’. 

6 (c) DISCRETIONARY APPROPRIATIONS.—Section 

7 257(c) of the Balanced Budget and Emergency Deficit 

8 Control Act of 1985 is amended by adding at the end the 

9 following new paragraph: 

10 ‘‘(7) Emergency appropriations covered by sec11 tion 251(b)(2)(A) shall not be extended in the base12 line.’’. 

13 SEC. 6. OMB EMERGENCY CRITERIA. 

14 (a) DEFINITION OF EMERGENCY.—Section 3 of the 

15 Congressional Budget and Impoundment Control Act of 

16 1974 (as amended by section 2(d) is further amended by 

17 adding at the end the following new paragraph: 

18 ‘‘(12)(A) The term ‘emergency’ means a situa19 tion that—

20 ‘‘(i) requires new budget authority and 

21 outlays (or new budget authority and the out22 lays flowing therefrom) for the prevention or 

23 mitigation of, or response to, loss of life or 

24 property, or a threat to national security; and 

25 ‘‘(ii) is unanticipated. 
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1 ‘‘(B) As used in subparagraph (A), the term 

2 ‘unanticipated’ means that the underlying situation 

3 is—

4 ‘‘(i) sudden, which means quickly coming 

5 into being or not building up over time; 

6 ‘‘(ii) urgent, which means a pressing and 

7 compelling need requiring immediate action; 

8 ‘‘(iii) unforeseen, which means not pre9 dicted or anticipated as an emerging need; and 

10 ‘‘(iv) temporary, which means not of a per11 manent duration.’’. 

12 (b) CONFORMING AMENDMENT.—Section 250(c) of 

13 the Balanced Budget and Emergency Deficit Control Act 

14 of 1985 is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(20) The term ‘emergency’ has the meaning 

17 given to such term in section 3 of the Congressional 

18 Budget and Impoundment Control Act of 1974.’’. 

19 SEC. 7. RULE RESPECTING DESIGNATION OF LEGISLATIVE 

20 PROVISION AS AN EMERGENCY. 

21 (a) IN GENERAL.—Title III of the Congressional 

22 Budget Act of 1974 is amended by adding at the end the 

23 following new section: 
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1 ‘‘RULE RESPECTING DESIGNATION OF LEGISLATIVE

2 PROVISION AS AN EMERGENCY

3 ‘‘SEC. 316. (a) GUIDANCE.—In making a designation 

4 of a provision of legislation as an emergency requirement 

5 under section 251(b)(2)(A) or 252(e) of the Balanced 

6 Budget and Emergency Deficit Control Act of 1985, the 

7 committee report and any statement of managers accom8 panying that legislation shall analyze whether a proposed 

9 emergency requirement meets the definition of an ‘emer10 gency’ set out in section 3 of the Congressional Budget 

11 and Impoundment Control Act of 1974. 

12 ‘‘(b) IN GENERAL.—It shall not be in order in the 

13 Senate or the House of Representatives to consider any 

14 bill, joint resolution, or conference report that contains an 

15 emergency designation under section 251(b)(2)(A) or 

16 252(e) of the Balanced Budget and Emergency Deficit 

17 Control Act of 1985 unless the proposed emergency re18 quirement meets the definition of an ‘emergency’ set out 

19 in section 3 of the Congressional Budget and Impound20 ment Control Act of 1974. 

21 ‘‘(c) WAIVER AND APPEAL IN THE SENATE.—This 

22 section may be waived or suspended in the Senate only 

23 by an affirmative vote of three-fifths of the Members, duly 

24 chosen and sworn. An affirmative vote of three-fifths of 

25 the Members of the Senate, duly chosen and sworn, shall 
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1 be required in the Senate to sustain an appeal of the rul2 ing of the Chair on a point of order raised under this sec3 tion. 

4 ‘‘(d) ENFORCEMENT IN THE HOUSE OF REPRESENT5 ATIVES.—It shall not be in order in the House of Rep6 resentatives to consider a rule or order that waives the 

7 application of subsection (b). 

8 ‘‘(e) DISPOSITION OF POINTS OF ORDER IN THE

9 HOUSE.—As disposition of a point of order under sub10 section (b) or subsection (d), the Chair shall put the ques11 tion of consideration with respect to the proposition that 

12 is the subject of the point of order. A question of consider13 ation under this section shall be debatable for 10 minutes 

14 by the Member initiating the point of order and for 10 

15 minutes by an opponent of the point of order, but shall 

16 otherwise be decided without intervening motion except 

17 one that the House adjourn or that the Committee of the 

18 Whole rise, as the case may be. 

19 ‘‘(f) EFFECT ON AMENDMENT IN ORDER AS ORIGI20 NAL TEXT IN THE HOUSE.—The disposition of the ques21 tion of consideration under this section with respect to a 

22 bill or joint resolution shall be considered also to deter23 mine the question of consideration under this subsection 

24 with respect to an amendment made in order as original 

25 text.’’. 
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1 (b) CONFORMING AMENDMENT.—The table of con2 tents set forth in section 1(b) of the Congressional Budget 

3 and Impoundment Control Act of 1974 is amended by in4 serting after the item relating to section 315 the following 

5 new item:

‘‘Sec. 316. Rule respecting designation of legislative provision as an emergency.’’.

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