Responsible Budget Targets Act of 2023

Subjects: Economics and Public Finance


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 772 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 772

To amend the Congressional Budget Act of 1974 to set responsible budget 
                                targets.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2023

   Mr. Braun introduced the following bill; which was read twice and 
                referred to the Committee on the Budget

_______________________________________________________________________

                                 A BILL


 
To amend the Congressional Budget Act of 1974 to set responsible budget 
                                targets.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Responsible Budget Targets Act of 
2023''.

SEC. 2. ESTABLISHING RESPONSIBLE BUDGET TARGETS.

    (a) In General.--Title IV of the Congressional Budget Act of 1974 
(2 U.S.C. 651 et seq.) is amended by adding at the end the following:

           ``PART C--ESTABLISHING RESPONSIBLE BUDGET TARGETS

``SEC. 441. DEFINITIONS.

    ``In this part:
            ``(1) Primary balance factor.--
                    ``(A) In general.--The term `primary balance 
                factor'--
                            ``(i) with respect to the first fiscal year 
                        that begins not less than 180 days after the 
                        date of enactment of this part, means 0.0 
                        percentage point; and
                            ``(ii) except as provided in subparagraph 
                        (B), with respect to each fiscal year after the 
                        fiscal year described in clause (i), means the 
                        sum obtained by adding--
                                    ``(I) the primary balance factor 
                                for the previous fiscal year; and
                                    ``(II)(aa) if primary budget 
                                authority exceeded revenue for the 
                                fiscal year before the previous fiscal 
                                year, 0.2 percentage point; and
                                    ``(bb) if revenue exceeded primary 
                                budget authority for the fiscal year 
                                before the previous fiscal year, -0.2 
                                percentage point.
                    ``(B) Special rule for first year after primary 
                balance.--
                            ``(i) In general.--For the first fiscal 
                        year that begins after the date of a 
                        determination that, for a fiscal year beginning 
                        after the date of enactment of this part, 
                        revenue exceeded primary budget authority, the 
                        term `primary balance factor' means 0.0 
                        percentage point.
                            ``(ii) Subsequent adjustment.--After the 
                        first fiscal year described in clause (i), the 
                        primary balance factor shall be adjusted in 
                        accordance with subparagraph (A)(ii).
            ``(2) Primary budget authority.--The term `primary budget 
        authority' means all budget authority except for net interest 
        on the debt.
            ``(3) Spending ceiling.--The term `spending ceiling', with 
        respect to a fiscal year, means the maximum amount of primary 
        budget authority for the fiscal year, as determined under 
        section 442.
            ``(4) Spending growth factor.--The term `spending growth 
        factor', with respect to a fiscal year, means the difference 
        obtained by subtracting--
                    ``(A) the primary balance factor for the fiscal 
                year; from
                    ``(B) the average annual percentage growth in the 
                gross domestic product of the United States during the 
                5-fiscal-year period before the beginning of the fiscal 
                year before such fiscal year.

``SEC. 442. ESTABLISHMENT OF A SPENDING CEILING.

    ``(a) In General.--The maximum amount of primary budget authority 
for a fiscal year shall be the amount of primary budget authority for 
the previous fiscal year as--
            ``(1) increased by the spending growth factor; and
            ``(2) modified by any adjustments under section 444 or 445.
    ``(b) Exclusion of Adjustments From Baseline.--In determining the 
maximum amount of primary budget authority for a fiscal year, the 
amount of primary budget authority for the previous fiscal year shall 
not include any adjustment under paragraph (1) or (3) of section 444 or 
under section 445(c).
    ``(c) Determination.--
            ``(1) For congressional purposes.--The Director of the 
        Congressional Budget Office shall--
                    ``(A) include in each report under section 
                202(e)(1) and revision of such a report an estimate of 
                the amount of the spending ceiling (including factors 
                necessary to produce the estimate) and any adjustments 
                under section 444 for the fiscal year commencing on 
                October 1 of the year during which the Director submits 
                the report; and
                    ``(B) provide to the Committee on the Budget of the 
                Senate and the Committee on the Budget of the House of 
                Representatives updates to the estimate of the spending 
                ceiling and adjustments, as appropriate.
            ``(2) For executive branch purposes.--The President shall--
                    ``(A) include in each budget of the President 
                submitted under section 1105 of title 31, United States 
                Code, an estimate by the Office of Management and 
                Budget of the amount of the spending ceiling and any 
                adjustments under section 444 for the fiscal year 
                commencing on October 1 of the year during which the 
                President submits the budget; and
                    ``(B) obtain from the Office of Management and 
                Budget updates to the estimate of the spending ceiling 
                and adjustments, as appropriate.

``SEC. 443. USE OF CEILING.

    ``(a) By Congress.--When considering legislation, the Senate and 
the House of Representatives shall adhere to the spending ceiling, as 
determined by the Director of the Congressional Budget Office under 
section 442(c)(1) (including any adjustments under section 444 or 
445(c)).
    ``(b) By Executive Branch.--When considering proposals with fiscal 
implications, the President shall adhere to the spending ceiling, as 
determined by the Director of the Office of Management and Budget under 
section 442(c)(2) (including any adjustments under sections 444 or 
445(c)).

``SEC. 444. ADJUSTING THE SPENDING CEILING.

    ``When adopting a concurrent resolution on the budget (including a 
concurrent resolution on the budget described in section 304), Congress 
may adjust the spending ceiling as determined under section 442(c)(1), 
and when enacting a supplemental appropriations Act, Congress may 
adjust the spending ceiling as determined under section 442(c)(2), 
commensurate with--
            ``(1) appropriations for an emergency, as defined in 
        section 250(c) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 (2 U.S.C. 900(c));
            ``(2) a revision in the estimate of the gross domestic 
        product of the United States for any year to which section 
        441(4)(B) applies;
            ``(3) cyclical variations due to the difference between the 
        actual and potential amount of the gross domestic product of 
        the United States;
            ``(4) timing shifts of expenditures or revenues due; or
            ``(5) enacted laws that result in a change in revenue.

``SEC. 445. EMERGENCY ACCOUNT ADJUSTMENTS.

    ``(a) Establishment of Emergency Account.--The Director of the 
Congressional Budget Office and the Director of the Office of 
Management and Budget shall each maintain an emergency account.
    ``(b) Computation.--
            ``(1) In general.--The amount of the emergency account 
        shall be--
                    ``(A) increased by the amount of the adjustment 
                made under section 444(1); and
                    ``(B) decreased by the difference obtained by 
                subtracting the amount of primary budget authority 
                provided for a fiscal year from the adjusted spending 
                ceiling (excluding any adjustment under section 444(1), 
                and including the effect of adjustments under section 
                445(c)) for that fiscal year.
            ``(2) Limit of zero.--The amount of the emergency account 
        may not be less than $0.
    ``(c) Adjustment.--
            ``(1) In general.--If the amount of the emergency account 
        on the last day of a fiscal year has increased, as compared to 
        the last day of the fiscal year before such fiscal year, the 
        amount of the spending ceiling for the second fiscal year after 
        such fiscal year and each of the ensuing 5 fiscal years shall 
        be reduced by the amount equal to one-sixth of the amount of 
        the increase in the emergency account.
            ``(2) Modification of adjustment.--
                    ``(A) For congressional purposes.--When adopting a 
                concurrent resolution on the budget (including a 
                concurrent resolution on the budget described in 
                section 304), Congress may, for purposes of applying 
                the spending ceiling in the Senate and the House of 
                Representatives--
                            ``(i) reduce the amount of the spending 
                        ceiling by the amount of the emergency account 
                        over a period shorter than 6 fiscal years; or
                            ``(ii) in the case of an ongoing emergency, 
                        reduce the amount of the spending ceiling by 
                        the amount of the emergency account over a 
                        period longer than 6 fiscal years.
                    ``(B) For executive branch purposes.--When enacting 
                a supplemental appropriations Act, Congress may, for 
                purposes of applying the spending ceiling in the 
                executive branch--
                            ``(i) reduce the amount of the spending 
                        ceiling by the amount of the emergency account 
                        over a period shorter than 6 fiscal years; or
                            ``(ii) in the case of an ongoing emergency, 
                        reduce the amount of the spending ceiling by 
                        the amount of the emergency account over a 
                        period longer than 6 fiscal years.''.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the Congressional Budget and Impoundment Control Act of 1974 is amended 
by inserting after the item relating to section 428 the following:

           ``PART C--Establishing Responsible Budget Targets

``Sec. 441. Definitions.
``Sec. 442. Establishment of a spending ceiling.
``Sec. 443. Use of ceiling.
``Sec. 444. Adjusting the spending ceiling.
``Sec. 445. Emergency account adjustments.''.
                                 &lt;all&gt;
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