I 
108TH CONGRESS 
1ST SESSION H. R. 1175
To amend the Balanced Budget and Emergency Deficit Control Act of 1985 
to extend the discretionary spending limits through fiscal year 2008, 
to extend paygo for direct spending, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 11, 2003
Mr. BARRETT of South Carolina (for himself, Ms. GINNY BROWN-WAITE of 
Florida, Mr. GREEN of Wisconsin, and Mr. DEMINT) introduced the fol-
lowing bill; which was referred to the Committee on the Budget, and in 
addition to the Committee on Rules, for a period to be subsequently de-
termined 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 Con-
trol Act of 1985 to extend the discretionary spending 
limits through fiscal year 2008, to extend paygo for 
direct spending, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Common Sense Spend-
ing Act’’.
SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS. 
(a) ADJUSTMENTS
TO DISCRETIONARY SPENDING 
LIMITS.—In the matter that precedes subparagraph (A) 
of section 251(b)(2) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985, strike ‘‘through 2002’’. 
(b) DISCRETIONARY
SPENDING
LIMIT.—Section 
251(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended as follows: 
(1) Strike paragraphs (1) through (6) and re-
designate paragraph (7) (which relates to fiscal year 
2003) as paragraph (1). 
(2) Strike paragraphs (8) through (16) and in-
sert after paragraph (1) the following new para-
graphs: 
‘‘(2) with respect to fiscal year 2004, for the 
discretionary category: $765,510,000,000 in new 
budget 
authority 
of 
which 
not 
less 
than 
$399,181,000,000 shall be for the defense category 
and of which not less than $28,239,000,000 shall be 
for homeland security activities outside of the de-
fense category and $815,516,000,000 in outlays of 
which not less than $389,746,000,000 shall be for 
the defense category; 
‘‘(3) with respect to fiscal year 2005, for the 
discretionary category: $780,820,000,000 in new 
budget 
authority 
of 
which 
not 
less 
than
$419,623,000,000 shall be for the defense category 
and of which not less than $29,367,000,000 shall be 
for homeland security activities outside of the de-
fense category and $825,851,000,000 in outlays of 
which not less than $409,737,000,000 shall be for 
the defense category; 
‘‘(4) with respect to fiscal year 2006, for the 
discretionary category: $796,437,000,000 in new 
budget 
authority 
of 
which 
not 
less 
than 
$439,740,000,000 shall be for the defense category 
and of which not less than $30,407,000,000 shall be 
for homeland security activities outside of the de-
fense category and $834,246,000,000 in outlays of 
which not less than $422,808,000,000 shall be for 
the defense category; 
‘‘(5) with respect to fiscal year 2007, for the 
discretionary category: $812,365,000,000 in new 
budget 
authority 
of 
which 
not 
less 
than 
$459,999,000,000 shall be for the defense category 
and of which not less than $31,494,000,000 shall be 
for homeland security activities outside of the de-
fense category and $846,485,000,000 in outlays of 
which not less than $436,164,000,000 shall be for 
the defense category; and
‘‘(6) with respect to fiscal year 2008, for the 
discretionary category: $828,613,000,000 in new 
budget 
authority 
of 
which 
not 
less 
than 
$480,433,000,000 shall be for the defense category 
and of which not less than $32,621,000,000 shall be 
for homeland security activities outside of the de-
fense category and $864,832,000,000 in outlays of 
which not less than $460,190,000,000 shall be for 
the defense category;’’. 
(c) ADJUSTMENTS
TO DISCRETIONARY SPENDING 
LIMITS.—
(1) Section 251(b)(2) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is 
amended by striking subparagraphs (C) through (H) 
and by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) ACCRUAL ACCOUNTING.—If a bill or 
joint resolution is enacted that charges Federal 
agencies for the full cost of accrued Federal re-
tirement and health benefits and a bill or joint 
resolution making appropriations is enacted 
that provides new budget authority to carry out 
the legislation charging Federal agencies for 
such accrued costs, the adjustment shall be 
equal to the reduction in mandatory budget au-
thority and the outlays flowing therefrom esti-
mated to result from the legislation charging 
Federal agencies for such accrued costs.’’. 
(2) Section 251(b)(2)(A) of the Balanced Budg-
et and Emergency Deficit Control Act of 1985 is 
amended by striking the last sentence. 
SEC. 3. EXTENSION OF PAY-AS-YOU-GO. 
Section 252 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 is amended to read as follows: 
‘‘SEC. 252. ENFORCING PAY-AS-YOU-GO. 
‘‘(a) PURPOSE.—The purpose of this section is to as-
sure that any legislation enacted before October 1, 2008, 
affecting direct spending that increases the deficit will 
trigger an offsetting sequestration. 
‘‘(b) SEQUESTRATION.—
‘‘(1) TIMING.—Not later than 15 calendar days 
after the date Congress adjourns to end a session 
and on the same day as a sequestration (if any) 
under section 251, there shall be a sequestration to 
offset the amount of any net deficit increase caused 
by all direct spending legislation enacted before Oc-
tober 1, 2008, as calculated under paragraph (2). 
‘‘(2) CALCULATION
OF
DEFICIT
INCREASE.—
OMB shall calculate the amount of deficit increase 
or decrease by adding—
maximum reductions permissible under sections 
256(b) (guaranteed and direct student loans) and 
256(c) (foster care and adoption assistance) shall be 
made. 
‘‘(C) THIRD.—(i) If additional reductions in di-
rect spending accounts are required to be made, 
each remaining non-exempt direct spending account 
shall be reduced by the uniform percentage nec-
essary to make the reductions in direct spending re-
quired by paragraph (1); except that the medicare 
programs specified in section 256(d) shall not be re-
duced by more than 4 percent and the uniform per-
centage applicable to all other direct spending pro-
grams under this paragraph shall be increased (if 
necessary) to a level sufficient to achieve the re-
quired reduction in direct spending. 
‘‘(ii) For purposes of determining reductions 
under clause (i), outlay reductions (as a result of se-
questration of Commodity Credit Corporation com-
modity price support contracts in the fiscal year of 
a sequestration) that would occur in the following 
fiscal year shall be credited as outlay reductions in 
the fiscal year of the sequestration. 
‘‘(2) For purposes of this subsection, accounts shall 
be assumed to be at the level in the baseline.
‘‘(d) ESTIMATES.—
‘‘(1) CBO ESTIMATES.—As soon as practicable 
after Congress completes action on any direct spend-
ing, CBO shall provide an estimate to OMB of that 
legislation. 
‘‘(2) OMB ESTIMATES.—Not later than 7 cal-
endar days (excluding Saturdays, Sundays, and legal 
holidays) after the date of enactment of any direct 
spending, OMB shall transmit a report to the House 
of Representatives and to the Senate containing—
‘‘(A) the CBO estimate of that legislation; 
‘‘(B) an OMB estimate of that legislation 
using current economic and technical assump-
tions; and 
‘‘(C) an explanation of any difference be-
tween the 2 estimates. 
‘‘(3) SIGNIFICANT
DIFFERENCES.—If during 
the preparation of the report under paragraph (2) 
OMB determines that there is a significant dif-
ference between the OMB and CBO estimates, OMB 
shall consult with the Committees on the Budget of 
the House of Representatives and the Senate regard-
ing that difference and that consultation, to the ex-
tent practicable, shall include written communication 
to such committees that affords such committees the
opportunity to comment before the issuance of that 
report. 
‘‘(4) SCOPE
OF
ESTIMATES.—The estimates 
under this section shall include the amount of 
change in outlays for the current year (if applica-
ble), the budget year, and each outyear excluding 
any amounts resulting from—
‘‘(A) full funding of, and continuation of, 
the deposit insurance guarantee commitment in 
effect under current estimates; and 
‘‘(B) emergency provisions as designated 
under subsection (e) of this section. 
‘‘(5) SCOREKEEPING GUIDELINES.—OMB and 
CBO, after consultation with each other and the 
Committees on the Budget of the House of Rep-
resentatives and the Senate, shall—
‘‘(A) 
determine 
common 
scorekeeping 
guidelines; and 
‘‘(B) in conformance with such guidelines, 
prepare estimates under this section. 
‘‘(e) EMERGENCY LEGISLATION.—If a provision of 
direct spending legislation is enacted that the President 
designates as an emergency requirement and that the Con-
gress so designates in statute, the amounts of new budget 
authority, outlays, and receipts in all fiscal years resulting
from that provision shall be designated as an emergency 
requirement in the reports required under subsection (d) 
of this section.’’. 
SEC. 4. CONFORMING AMENDMENTS. 
(a) EXPIRATION.—(1) Section 254(c)(2) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985 
is amended by striking ‘‘2002’’ and inserting ‘‘2008’’. 
(2) Section 254(f)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by 
striking ‘‘2002’’ and inserting ‘‘2008’’. 
(b) EXPIRATION.—Section 275(b) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended by striking ‘‘2002’’ and inserting ‘‘2008’’. 
SEC. 5. EMERGENCY SPENDING LEGISLATION AND THE 
BASELINE. 
(a) IN GENERAL.—Section 257(a) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is 
amended by inserting ‘‘, except for emergency appropria-
tions covered by section 251(b)(2)(A) and emergency leg-
islation covered by section 252(e)’’ before the period. 
(b) DIRECT SPENDING
AND RECEIPTS.—Section 
257(b)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (as amended by section 2) is further 
amended by adding at the end the following new subpara-
graph:
‘‘(D) Emergency legislation covered by section 
252(e) shall not be extended in the baseline.’’. 
(c) 
DISCRETIONARY
APPROPRIATIONS.—Section 
257(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by adding at the end the 
following new paragraph: 
‘‘(7) Emergency appropriations covered by sec-
tion 251(b)(2)(A) shall not be extended in the base-
line.’’. 
SEC. 6. OMB EMERGENCY CRITERIA. 
(a) DEFINITION OF EMERGENCY.—Section 3 of the 
Congressional Budget and Impoundment Control Act of 
1974 is amended by adding at the end the following new 
paragraph: 
‘‘(11)(A) The term ‘emergency’ means a situa-
tion that—
‘‘(i) requires new budget authority and 
outlays (or new budget authority and the out-
lays flowing therefrom) for the prevention or 
mitigation of, or response to, loss of life or 
property, or a threat to national security; and 
‘‘(ii) is unanticipated. 
‘‘(B) As used in subparagraph (A), the term 
‘unanticipated’ means that the underlying situation 
is—
‘‘(i) sudden, which means quickly coming 
into being or not building up over time; 
‘‘(ii) urgent, which means a pressing and 
compelling need requiring immediate action; 
‘‘(iii) unforeseen, which means not pre-
dicted or anticipated as an emerging need; and
‘‘(iv) temporary, which means not of a per-
manent duration.’’. 
(b) CONFORMING AMENDMENT.—Section 250(c) of 
the Balanced Budget and Emergency Deficit Control Act 
of 1985 is amended by adding at the end the following 
new paragraph: 
‘‘(20) The term ‘emergency’ has the meaning 
given to such term in section 3 of the Congressional 
Budget and Impoundment Control Act of 1974.’’. 
SEC. 7. RULE RESPECTING DESIGNATION OF LEGISLATIVE 
PROVISION AS AN EMERGENCY. 
(a) IN GENERAL.—Title III of the Congressional 
Budget Act of 1974 is amended by adding at the end the 
following new section: 
‘‘RULE RESPECTING DESIGNATION OF LEGISLATIVE 
PROVISION AS AN EMERGENCY 
‘‘SEC. 316. (a) GUIDANCE.—In making a designation 
of a provision of legislation as an emergency requirement 
under section 251(b)(2)(A) or 252(e) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, the