1506
tionary budget authority within subfunction 051
shall be further reduced by the uniform percent
needed to fully offset the reduction in the amount
sequestered resulting from that exemption.
‘‘(4) P ART-YEAR APPROPRIATIONS.—If, on the
date of a sequestration under paragraph (1), there
is in effect an Act making or continuing appropria-
tions for part of a fiscal year for any budget ac-
count, then the dollar reduction calculated for that
account under paragraphs (2) and (3) shall be ap-
plied to—
‘‘(A) the annualized amount otherwise
available by law in that account under that or
a subsequent part-year appropriation; and
‘‘(B) when a full-year appropriation for
that account is enacted, from the amount other-
wise provided by that appropriation.
‘‘(e) WITHIN-SESSION
ENFORCEMENT.—If, after
Congress adjourns to end the session for a budget year
but before July 1 of that fiscal year, an appropriation for
that fiscal year is enacted that causes a discretionary limit
to be breached, within 15 days after there shall be a se-
questration to eliminate that breach, following the rules
and procedures set forth in subsection (d).’’.
1507
SEC. 15103. PAY-AS-YOU-GO.
Section 252 is amended to read as follows:
‘‘SEC. 252. PAY-AS-YOU-GO.
‘‘(a) PAY-AS-YOU-GO SCORECARD.—
‘‘(1) ESTABLISHMENT
OF
SCORECARD: 1994–
2002.—There shall be a scorecard for each fiscal year
through 2002 upon which shall be entered the 5-
year estimated increase or decrease in the deficit
(relative to the current policy baseline described in
section 257) for the budget year and each outyear,
as calculated under this subsection, resulting from—
‘‘(A) the enactment, after the date of en-
actment of this Act and before October 1, 1998,
of any direct spending or receipts law, or
‘‘(B) the change in the baseline from the
application of section 257(b)(3), which relates
to certain expiring provisions of law and to vet-
erans’ compensation.
Entries under the preceding sentence shall exclude
resulting debt service changes and any incidental
changes in intragovernmental receipts of Federal re-
tirement trust funds. Amounts shall be entered on
the scorecard within 5 days after the enactment of
each such law and may not thereafter be altered ex-
cept to correct clerical errors or errors in the appli-
1508
cation of this Act. Each entry shall be displayed sep-
arately.
‘‘(2) 
ROLLING
5-YEAR
SCOREKEEPING.—
Amounts entered on the scorecard established by
paragraph (1) shall equal the amounts contained in
the bill cost reports under section 254(e) for the
budget year and the 4 subsequent fiscal years (ex-
cept for budget years after 1998), plus any amount
required by the lookback provision of paragraph (3).
‘‘(3) LOOKBACK.—If in any session a law is en-
acted affecting the current-year level of direct spend-
ing or receipts, the amount of that current-year ef-
fect shall be entered on the scorecard under the col-
umn for the budget year (except for budget years
after 1998).
‘‘(4) E MERGENCIES.—If after the enactment of
this Act a provision of direct spending or receipts
legislation is enacted that is designated as an emer-
gency requirement by statute and that the President
also designates, in writing, as an emergency require-
ment, then no entries related to that provision shall
be made on the scorecard.
‘‘(5) DEPOSIT INSURANCE.—Provisions of law
that provide full funding of, and continuation of, the
deposit insurance commitment in effect on Septem-
1509
ber 30, 1993, shall not have their estimated effects
entered on the scorecard.
‘‘(b) ENFORCING PAY-AS-YOU-GO.—
‘‘(1) SEQUESTRATION.—Within 15 calendar
days after Congress adjourns to end a session, there
shall be a sequestration to offset the amount of any
net deficit increase recorded on the pay-as-you-go
scorecard under subsection (a) for the budget year,
unless that amount is less than $50,000,000.
‘‘(2) E LIMINATING A DEFICIT INCREASE.—The
amount required to be sequestered in a fiscal year
under paragraph (1) shall be obtained from
nonexempt direct spending accounts (which are as-
sumed to be at the level in the baseline) by seques-
tration actions taken in the following order:
‘‘(A) The maximum reductions in auto-
matic spending increases permissible under sec-
tion 256(b) shall be made.
‘‘(B) If additional reductions in direct
spending accounts are required to be made, the
maximum reductions permissible under section
256(c) (foster care and adoption assistance)
shall be made.
‘‘(C) If additional reductions in direct
spending accounts are required to be made,
1510
each remaining nonexempt direct spending ac-
count shall be reduced by the uniform percent
necessary to make the reductions in direct
spending required by paragraph (1); except that
the medicare programs specified in section
256(d) shall not be reduced by more than 4
percent and the uniform percent applicable to
all other direct spending programs under this
subparagraph shall be increased (if necessary)
to a level sufficient to achieve the required re-
duction in direct spending.
‘‘(3) UNIFORM PERCENT.—The uniform percent
under paragraph (2) shall be calculated so that the
total amount estimated to be saved in all fiscal years
by the budget-year or other sequestrations under
section 256 shall equal the amount required to be
saved under paragraph (1). The total amount esti-
mated to be saved shall exclude resulting debt serv-
ice 
changes 
and 
any 
incidental 
changes 
in
intragovernmental receipts of Federal retirement
trust funds.’’.
SEC. 15104. CONFORMING AMENDMENTS TO SECTION 253.
Section 253 is amended as follows:
(1) In subsection (a), strike ‘‘(other’’ and all
that follows through ‘‘252,’’.
1511
(2) In subsection (b)(2), strike ‘‘252(e)’’ and
insert ‘‘252(a)(4)’’.
(3) In subsection (d), strike ‘‘251(a)(3)’’ and
insert ‘‘251(d)(3)’’.
(4) In subsection (e)(1), strike ‘‘256(a)’’ and
insert ‘‘256(b)’’.
(5) In subsection (e)(2), strike ‘‘sections 256(b)
(guaranteed student loans) and’’ and insert ‘‘sec-
tion’’.
(6) In subsection (e)(3), strike ‘‘(A)’’, strike
subparagraph (B), and redesignate clauses (i) and
(ii) as subparagraphs (A) and (B).
(7) In subsection (g)(1)(B), strike the last sen-
tence.
(8) In subsection (g)(2)(B)(i), strike ‘‘252(b)’’
and insert ‘‘254(e)’’.
SEC. 15105. REPORTS AND ORDERS.
Section 254 is amended to read as follows:
‘‘SEC. 254. REPORTS AND ORDERS.
‘‘(a) TIMETABLE.—The timetable with respect to this
part for any budget year is as follows:
‘‘Date:
Action to be completed:
5 days before the President’s
budget submission.
CBO sequestration preview report.
The President’s budget submission
OMB sequestration preview report.
August 10 ......................................
Notification regarding military per-
sonnel.
Weekly, starting the 2d Wednes-
day in September.
Scorecard reports.
10 days after end of session ..........
CBO final sequestration report.
1512
‘‘Date:
Action to be completed:
15 days after end of session ..........
OMB final sequestration report; Pres-
idential order.
30 days later ..................................
GAO compliance report.
‘‘(b) SUBMISSION AND AVAILABILITY OF REPORTS
AND ORDERS.—Each report or order required by this sec-
tion (except bill cost reports under subsection (e) and
scorecard reports under subsection (f)) shall be submitted,
in the case of CBO, to the House of Representatives, the
Senate and OMB and, in the case of OMB, to the House
of Representatives, the Senate, and the President on the
day it is issued. On the following day a notice of the report
shall be printed in the Federal Register.
‘‘(c) SEQUESTRATION PREVIEW REPORTS.—
‘‘(1) REPORTING REQUIREMENT.—On the dates
specified in subsection (a), OMB and CBO shall
issue a preview report regarding discretionary, pay-
as-you-go, and deficit sequestration based on laws
enacted through those dates.
‘‘(2) 
DISCRETIONARY
SEQUESTRATION
RE-
PORT.—The preview reports shall set forth estimates
for the current year and each subsequent year
through 1998 of the applicable discretionary limits
and an explanation of any adjustments in such lim-
its under section 251. It shall also set forth for the
current year and the budget year the estimated dis-
cretionary new budget authority and outlays and the
1513
amounts remaining under the applicable discre-
tionary limits.
‘‘(3) 
PAY-AS-YOU-GO
SEQUESTRATION
RE-
PORTS.—The preview reports shall set forth for the
budget year and each outyear estimates for each of
the following:
‘‘(A) The amount of net deficit increase or
decrease, if any, calculated under subsection
252.
‘‘(B) The pay-as-you-go scorecard as of
that date, itemizing the entries that add to the
net deficit increase or decrease shown under
subparagraph (A).
‘‘(C) The sequestration percentage or (if
the required sequestration percentage is greater
than the maximum allowable percentage for
medicare) percentages necessary to eliminate a
deficit increase under section 252 at the end of
the budget-year session.
‘‘(4) D EFICIT SEQUESTRATION REPORTS.—The
preview reports shall set forth for the budget year
estimates for each of the following:
‘‘(A) The maximum deficit amount, the es-
timated deficit calculated under section 253(b),
the excess deficit, and the margin.
1520
SEC. 15106. EXEMPT PROGRAMS AND ACTIVITIES.
Section 255 is amended to read as follows:
‘‘SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
‘‘(a) SOCIAL SECURITY BENEFITS AND TIER I RAIL-
ROAD RETIREMENT BENEFITS.—Benefits payable under
the old-age, survivors, and disability insurance program
established under title II of the Social Security Act, and
benefits payable under section 3(a), 3(f)(3), 4(a), or 4(f)
of the Railroad Retirement Act of 1974, shall be exempt
from reduction under any order issued under this Act.
‘‘(b) VETERANS PROGRAMS.—The following pro-
grams shall be exempt from reduction under any order is-
sued under this Act:
‘‘National Service Life Insurance Fund (36–
8132–0–7–701);
‘‘Service-Disabled Veterans Insurance Fund
(36–4012–0–3–701);
‘‘Veterans Special Life Insurance Fund (36–
8455–0–8–701);
‘‘Veterans Reopened Insurance Fund (36–
4010–0–3–701);
‘‘United States Government Life Insurance
Fund (36–8150–0–7–701);
‘‘Veterans Insurance and Indemnities (36–
0120–0–1–701);