I 

108TH CONGRESS 

2D SESSION H. R. 3853

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

to extend the discretionary spending limits through fiscal year 2009, 

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

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 26, 2004

Mr. BARRETT of South Carolina (for himself and Mr. HENSARLING) 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 2009, 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 2004’’. 
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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 2005, for the 

12 discretionary category: $816,404,000,000 in total 

13 new budget authority of which not less than 

14 $420,676,000,000 shall be for the defense category 

15 and of which not less than $28,144,000,000 shall be 

16 for homeland security activities outside of the de17 fense category and $912,992,000,000 in total out18 lays of which not less than $448,197,000,000 shall 

19 be for the defense category and of which not less 

20 than $28,738,000,000 in total outlays shall be for 

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

23 ‘‘(2) with respect to fiscal year 2006, 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, 2004; 

3 ‘‘(3) with respect to fiscal year 2007, 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, 2005; 

9 ‘‘(4) with respect to fiscal year 2008, 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, 2006; and 

15 ‘‘(5) with respect to fiscal year 2009, 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, 2007;’’. 

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, 2009, 

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, 2009, 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 and 

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

11 the calculations required in subparagraphs (A) 

12 through (C), OMB shall assume an automatic 

13 deficit increase of $7,400,000,000. 

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

15 amount required to be sequestered in a fiscal year under 

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

17 spending accounts from actions taken in the following 

18 order: 

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

20 spending increases specified in section 256(a) shall 

21 be made. 

22 ‘‘(B) SECOND.—If additional reductions in di23 rect spending accounts are required to be made, the 

24 maximum reductions permissible under sections 

25 256(b) (guaranteed and direct student loans) and 
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1 256(c) (foster care and adoption assistance) shall be 

2 made. 

3 ‘‘(C) THIRD.—(i) If additional reductions in di4 rect spending accounts are required to be made, 

5 each remaining non-exempt direct spending account 

6 shall be reduced by the uniform percentage nec7 essary to make the reductions in direct spending re8 quired by paragraph (1); except that the medicare 

9 programs specified in section 256(d) shall not be re10 duced by more than 4 percent and the uniform per11 centage applicable to all other direct spending pro12 grams under this paragraph shall be increased (if 

13 necessary) to a level sufficient to achieve the re14 quired reduction in direct spending. 

15 ‘‘(ii) For purposes of determining reductions 

16 under clause (i), outlay reductions (as a result of se17 questration of Commodity Credit Corporation com18 modity price support contracts in the fiscal year of 

19 a sequestration) that would occur in the following 

20 fiscal year shall be credited as outlay reductions in 

21 the fiscal year of the sequestration. 

22 ‘‘(2) For purposes of this subsection, accounts shall 

23 be assumed to be at the level in the baseline for fiscal 

24 year 2005 and for fiscal years 2006 through 2009 at the 
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1 baseline after adjusting for any sequester in fiscal year 

2 2005. 

3 ‘‘(d) ESTIMATES.—

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

5 after Congress completes action on any direct spend6 ing, CBO shall provide an estimate to OMB of that 

7 legislation. 

8 ‘‘(2) OMB ESTIMATES.—Not later than 7 cal9 endar days (excluding Saturdays, Sundays, and legal 

10 holidays) after the date of enactment of any direct 

11 spending, OMB shall transmit a report to the House 

12 of Representatives and to the Senate containing—

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

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

15 using current economic and technical assump16 tions; and 

17 ‘‘(C) an explanation of any difference be18 tween the 2 estimates. 

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

20 the preparation of the report under paragraph (2) 

21 OMB determines that there is a significant dif22 ference between the OMB and CBO estimates, OMB 

23 shall consult with the Committees on the Budget of 

24 the House of Representatives and the Senate regard25 ing that difference and that consultation, to the ex-
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1 tent practicable, shall include written communication 

2 to such committees that affords such committees the 

3 opportunity to comment before the issuance of that 

4 report. 

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

6 under this section shall include the amount of 

7 change in outlays for the current year (if applica8 ble), the budget year, and each outyear excluding 

9 any amounts resulting from—

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

11 the deposit insurance guarantee commitment in 

12 effect under current estimates; and 

13 ‘‘(B) emergency provisions as designated 

14 under subsection (e). 

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

16 CBO, after consultation with each other and the 

17 Committees on the Budget of the House of Rep18 resentatives and the Senate, shall—

19 ‘‘(A) determine common scorekeeping 

20 guidelines; and 

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

22 prepare estimates under this section. 

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

24 direct spending legislation is enacted that the President 

25 designates as an emergency requirement and that the Con-
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1 gress so designates in statute, the amounts of new budget 

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

3 from that provision shall be designated as an emergency 

4 requirement in the reports required under subsection (d) 

5 of this section.’’. 

6 SEC. 4. CONFORMING AMENDMENTS. 

7 (a) EXPIRATION.—(1) Section 254(c)(2) of the Bal8 anced Budget and Emergency Deficit Control Act of 1985 

9 is amended by striking ‘‘2002’’ and inserting ‘‘2009’’. 

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

11 Emergency Deficit Control Act of 1985 is amended by 

12 striking ‘‘2002’’ and inserting ‘‘2009’’. 

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

14 Budget and Emergency Deficit Control Act of 1985 is 

15 amended by striking ‘‘2002’’ and inserting ‘‘2009’’. 

16 SEC. 5. EMERGENCY SPENDING LEGISLATION AND THE 

17 BASELINE. 

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

19 Budget and Emergency Deficit Control Act of 1985 is 

20 amended by inserting ‘‘, except for emergency appropria21 tions covered by section 251(b)(2)(A) and emergency leg22 islation covered by section 252(e)’’ before the period. 

23 (b) DIRECT SPENDING AND RECEIPTS.—Section 

24 257(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 

21 and outlays (or new budget authority and 

22 the outlays flowing therefrom) for the pre23 vention or mitigation of, or response to, 

24 loss of life or property, or a threat to na25 tional security; and 
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1 ‘‘(ii) is unanticipated. 

2 ‘‘(B) As used in subparagraph (A), the 

3 term ‘unanticipated’ means that the underlying 

4 situation is—

5 ‘‘(i) sudden, which means quickly 

6 coming into being or not building up over 

7 time; 

8 ‘‘(ii) urgent, which means a pressing 

9 and compelling need requiring immediate 

10 action; 

11 ‘‘(iii) unforeseen, which means not 

12 predicted or anticipated as an emerging 

13 need; and 

14 ‘‘(iv) temporary, which means not of a 

15 permanent duration.’’. 

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

17 the Balanced Budget and Emergency Deficit Control Act 

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

19 new paragraph: 

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

21 given to such term in section 3 of the Congressional 

22 Budget and Impoundment Control Act of 1974.’’. 
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1 SEC. 7. RULE RESPECTING DESIGNATION OF LEGISLATIVE 

2 PROVISION AS AN EMERGENCY. 

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

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

5 following new section: 

6 ‘‘RULE RESPECTING DESIGNATION OF LEGISLATIVE

7 PROVISION AS AN EMERGENCY

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

9 of a provision of legislation as an emergency requirement 

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

11 Budget and Emergency Deficit Control Act of 1985, the 

12 committee report and any statement of managers accom13 panying that legislation shall analyze whether a proposed 

14 emergency requirement meets the definition of an ‘emer15 gency’ set out in section 3 of the Congressional Budget 

16 and Impoundment Control Act of 1974. 

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

18 Senate or the House of Representatives to consider any 

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

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

21 252(e) of the Balanced Budget and Emergency Deficit 

22 Control Act of 1985 unless the proposed emergency re23 quirement meets the definition of an ‘emergency’ set out 

24 in section 3 of the Congressional Budget and Impound25 ment Control Act of 1974. 
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1 ‘‘(c) WAIVER AND APPEAL IN THE SENATE.—This 

2 section may be waived or suspended in the Senate only 

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

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

5 the Members of the Senate, duly chosen and sworn, shall 

6 be required in the Senate to sustain an appeal of the rul7 ing of the Chair on a point of order raised under this sec8 tion. 

9 ‘‘(d) ENFORCEMENT IN THE HOUSE OF REPRESENT10 ATIVES.—It shall not be in order in the House of Rep11 resentatives to consider a rule or order that waives the 

12 application of subsection (b). 

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

14 HOUSE.—As disposition of a point of order under sub15 section (b) or subsection (d), the Chair shall put the ques16 tion of consideration with respect to the proposition that 

17 is the subject of the point of order. A question of consider18 ation under this section shall be debatable for 10 minutes 

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

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

21 otherwise be decided without intervening motion except 

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

23 Whole rise, as the case may be. 

24 ‘‘(f) EFFECT ON AMENDMENT IN ORDER AS ORIGI25 NAL TEXT IN THE HOUSE.—The disposition of the ques-
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1 tion of consideration under this section with respect to a 

2 bill or joint resolution shall be considered also to deter3 mine the question of consideration under this subsection 

4 with respect to an amendment made in order as original 

5 text.’’. 

6 (b) CONFORMING AMENDMENT.—The table of con7 tents set forth in section 1(b) of the Congressional Budget 

8 and Impoundment Control Act of 1974 is amended by in9 serting after the item relating to section 315 the following 

10 new item:

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

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