266
shall 
be 
printed 
in 
the 
Congressional
Record.’’.
SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.
Section 308(b)(1) of the Congressional
Budget Act of 1974 is amended by adding at
the end the following new sentence: ‘‘Such re-
ports shall also include an up-to-date tabula-
tion of the amounts contained in the ledger
and each entry established by section 318(a).’’.
SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY
SPENDING LIMITS.
The discretionary spending limits for new
budget authority and outlays for any fiscal
year set forth in section 251(c) of the Balanced
Budget and Emergency Deficit Control Act of
1985, shall be reduced by the amounts set
forth in the final regular appropriation bill
for that fiscal year or joint resolution making
continuing appropriations through the end of
that fiscal year. Those amounts shall be the
sums of the Joint House-Senate Lock-box Bal-
ances for that fiscal year, as calculated under
section 302(a)(6) of the Congressional Budget
Act of 1974. That bill or joint resolution shall
contain the following statement of law: ‘‘As re-
267
quired by section 636 of the Spending Ac-
countability Lock-box Act of 1999, for fiscal
year [insert appropriate fiscal year] and each
outyear, the adjusted discretionary spending
limit for new budget authority shall be re-
duced by $ [insert appropriate amount of re-
duction] and the adjusted discretionary limit
for outlays shall be reduced by $ [insert ap-
propriate amount of reduction] for the fiscal
year and each outyear.’’. Notwithstanding sec-
tion 904(c) of the Congressional Budget Act of
1974, section 306 as it applies to this state-
ment shall not apply. This adjustment shall be
reflected in reports under sections 254(f) and
254(g) of the Balanced Budget and Emergency
Deficit Control Act of 1985.
Subtitle D—Automatic Continuing
Resolution
SEC. 641. AUTOMATIC CONTINUING RESOLUTION.
(a) AMENDMENT TO TITLE 31.—Chapter 13
of title 31, United States Code, is amended by
inserting after section 1310 the following new
section:
268
‘‘§ 1311. Continuing appropriations
‘‘(a)(1) If any regular appropriation bill
for a fiscal year does not become law prior to
the beginning of such fiscal year or a joint
resolution making continuing appropriations
is not in effect, there is appropriated, out of
any moneys in the Treasury not otherwise ap-
propriated, and out of applicable corporate or
other revenues, receipts, and funds, such
sums as may be necessary to continue any
program, project, or activity for which funds
were provided in the preceding fiscal year—
‘‘(A) in the corresponding regular ap-
propriation Act for such preceding fiscal
year; or
‘‘(B) if the corresponding regular ap-
propriation bill for such preceding fiscal
year did not become law, then in a joint
resolution making continuing appropria-
tions for such preceding fiscal year.
‘‘(2)(A) Except as provided by subpara-
graph (B), appropriations and funds made
available, and authority granted, for a pro-
gram, project, or activity for any fiscal year
pursuant to this section shall be at a rate of
operations not in excess of the rate of oper-
269
ations provided for in the regular appropria-
tion Act providing for such program, project,
or activity for the preceding fiscal year, or in
the absence of such an Act, the rate of oper-
ations provided for such program, project, or
activity pursuant to a joint resolution making
continuing appropriations for such preceding
fiscal year (but not including amounts for
such program, project, or activity designated
as an emergency for that fiscal year before
the date of enactment of this section).
‘‘(B) The applicable rate of operations for
a program, project, or activity pursuant to
this section shall exclude amounts—
‘‘(i) for which any adjustment was
made under section 251(b)(2)(A) or sec-
tion 252(e) of the Balanced Budget and
Emergency Deficit Control Act of 1985 be-
fore the date of enactment of this section;
or
‘‘(ii) for which any adjustment is
made under section 251(b)(2) (D) or (E) of
such Act.
‘‘(3) Appropriations and funds made avail-
able, and authority granted, for any fiscal
270
year pursuant to this section for a program,
project, or activity shall be available for the
period beginning with the first day of a lapse
in appropriations and ending with the earlier
of—
‘‘(A) the date on which the applicable
regular appropriation bill for such fiscal
year becomes law (whether or not such
law provides for such program, project,
or activity) or a continuing resolution
making appropriations becomes law, as
the case may be, or
‘‘(B) the last day of such fiscal year.
‘‘(b) An appropriation or funds made
available, or authority granted, for a pro-
gram, project, or activity for any fiscal year
pursuant to this section shall be subject to the
terms and conditions imposed with respect to
the appropriation made or funds made avail-
able for the preceding fiscal year, or authority
granted for such program, project, or activity
under current law.
‘‘(c) Appropriations and funds made avail-
able, and authority granted, for any program,
project, or activity for any fiscal year pursu-
271
ant to this section shall cover all obligations
or expenditures incurred for such program,
project, or activity during the portion of such
fiscal year for which this section applies to
such program, project, or activity.
‘‘(d) Expenditures made for a program,
project, or activity for any fiscal year pursu-
ant to this section shall be charged to the ap-
plicable appropriation, fund, or authorization
whenever a regular appropriation bill or a
joint resolution making continuing appro-
priations until the end of a fiscal year pro-
viding for such program, project, or activity
for such period becomes law.
‘‘(e) This section shall not apply to a pro-
gram, project, or activity during a fiscal year
if any other provision of law (other than an
authorization of appropriations)—
‘‘(1) makes an appropriation, makes
funds available, or grants authority for
such program, project, or activity to con-
tinue for such period, or
‘‘(2) specifically provides that no ap-
propriation shall be made, no funds shall
be made available, or no authority shall
272
be granted for such program, project, or
activity to continue for such period; or
‘‘(f) For purposes of this section, the term
‘regular appropriation bill’ means any annual
appropriation bill making appropriations,
otherwise making funds available, or grant-
ing authority, for any of the following cat-
egories of programs, projects, and activities:
‘‘(1) Agriculture, rural development,
and related agencies programs.
‘‘(2) The Departments of Commerce,
Justice, and State, the judiciary, and re-
lated agencies.
‘‘(3) The Department of Defense.
‘‘(4) The government of the District of
Columbia and other activities chargeable
in whole or in part against the revenues
of the District.
‘‘(5) 
The 
Departments 
of 
Labor,
Health and Human Services, and Edu-
cation, and related agencies.
‘‘(6) The Department of Housing and
Urban Development, and sundry inde-
pendent agencies, boards, commissions,
corporations, and offices.
273
‘‘(7) Energy and water development.
‘‘(8) Foreign assistance and related
programs.
‘‘(9) The Department of the Interior
and related agencies.
‘‘(10) Military construction.
‘‘(11) The Department of Transpor-
tation and related agencies.
‘‘(12) The Treasury Department, the
U.S. Postal Service, the Executive Office
of the President, and certain independent
agencies.
‘‘(13) The legislative branch.’’.
(b) 
CONFORMING
AMENDMENT.—Section
202(e)(3) of the Congressional Budget Act of
1974 is amended by inserting ‘‘and on or be-
fore September 30’’ before ‘‘of each year’’.
(c) CHAPTER ANALYSIS.—The analysis of
chapter 13 of title 31, United States Code, is
amended by inserting after the item relating
to section 1310 the following new item:
‘‘1311. Continuing appropriations.’’.
(d) EFFECT OF AMENDMENTS.—Nothing in
the amendments made by this section shall be
construed to affect Government obligations
mandated by other law, including obligations
274
with respect to social security, medicare, and
medicaid.
TITLE VII—BUDGETING IN AN
ERA OF SURPLUSES
SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET
SURPLUS.
(a) Section 252(a) of the Balanced Budget
and Emergency Deficit Control Act of 1985 is
amended to read as follows:
‘‘(a) PURPOSE.—The purpose of this section
is to trigger an offsetting sequestration in the
amount by which any excess of decreases in
receipts and increases in direct spending over
increases in receipts and decreases in direct
spending, caused by all direct spending and
receipts legislation enacted prior to October
1, 2002, exceeds estimates of the on-budget
surplus.’’.
(b) TIMING AND CALCULATION OF SEQUES-
TRATION.—Section 252(b) of the Balanced
Budget and Emergency Deficit Control Act of
1985 is amended to read as follows:
‘‘(b) SEQUESTRATION.—
‘‘(1) TIMING.—Not later than 15 cal-
endar days after the date Congress ad-
275
journs to end a session and on the same
day as a sequestration (if any) under sec-
tion 251, there shall be a sequestration to
offset an amount equal to—
‘‘(A) any excess of decreases in re-
ceipts and increases in direct spend-
ing over increases in receipts and de-
creases in direct spending for legisla-
tion enacted prior to October 1, 2002;
minus
‘‘(B) the estimated on-budget sur-
plus,
as calculated under paragraph (2).
‘‘(2) CALCULATION OF SEQUESTRATION.—
OMB shall calculate the amount of the se-
questration by adding—
‘‘(A) all OMB estimates for the
budget year of direct spending and
receipts legislation transmitted under
subsection (d) for legislation enacted
prior to October 1, 2002;
‘‘(B) the estimated amount of sav-
ings in direct spending programs ap-
plicable to the budget year resulting
from the prior year’s sequestration
276
under this section, if any, as pub-
lished in OMB’s final sequestration
report for that prior year; and
‘‘(C) all OMB estimates for the
current year that were not reflected
in the final OMB sequestration report
for that year; and
then by subtracting from such sum the
OMB estimate for the budget year of the
on-budget surplus (if any) as set forth in
the OMB sequestration update report.’’.
(c) PREVIEW REPORTS.—Section 254(c)(3) of
the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by redesig-
nating subparagraph (C) as subparagraph (D)
and by adding after subparagraph (B) the fol-
lowing new subparagraph:
‘‘(C) The estimated on-budget sur-
plus for the budget year (if any) shall
exclude all estimates of direct spend-
ing and receipts legislation for such
year enacted after the date of enact-
ment of this subparagraph (as esti-
mated by OMB when such legislation
was originally enacted). Except as
277
provided by the preceding sentence,
the following assumptions shall apply
to the calculation of such estimated
surplus: Budgetary resources other
than unobligated balances shall be at
the level provided for the budget year
in a regular appropriation Act or a
joint resolution (other than pursuant
to section 1311 of title 31, United
States Code) continuing appropria-
tions through the end of the budget
year, but if for any account a full-
year appropriation has not yet been
enacted, budgetary resources other
than unobligated balances shall be at
the level available in the current
year, adjusted using the assumptions
set forth in section 257(c).’’.
(d) FINAL
SEQUESTRATION
REPORT.—Sec-
tion 254(f)(3) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is
amended by adding at the end the following
new sentence: ‘‘In calculating the estimated
on-budget 
surplus 
pursuant 
to 
section
252(b)(2), notwithstanding section 254(j), OMB
278
shall use economic and technical assumptions
that are up-to-date as of the date of issuance
of the sequestration preview reports.’’.
(e) DEFINITION OF ON-BUDGET SURPLUS.—
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 ‘on-budget surplus’
means, with respect to a fiscal year, the
amount by which receipts exceed outlays
for all spending and receipt accounts of
the United States Government that are
designated as on-budget. Such term does
not include outlays and receipts of the
Federal Old-Age and Survivors Insurance
Trust Fund, the Federal Disability Insur-
ance Trust Fund, or any other off-budget
entity.’’.
(f) EXPEDITED RECONCILIATION PROCESS.—
Section 258C of the Balanced Budget and
Emergency Deficit Control Act of 1985 is
amended as follows:
279
(1) The side heading of subsection (a)
is amended by inserting ‘‘OR IN THE HOUSE
OF REPRESENTATIVES’’ after ‘‘SENATE’’.
(2) In paragraphs (1), (2), (3), and (4)
of subsection (a), insert ‘‘or House’’ after
‘‘Senate’’ each place it appears.
(3) In subsection (a)(7), strike ‘‘For’’
and insert ‘‘In the Senate, for’’.
(4) In subsection (b)(1), insert ‘‘or
House’’ after ‘‘Senate’’.
(5) In the side heading of subsection
(b)(4), insert ‘‘OTHER’’ after ‘‘THE’’.
(6) In subsection (b)(4), strike ‘‘in the
Senate from the House’’ and insert ‘‘in the
Senate or House of Representatives from
the other House’’, strike ‘‘Senate’’ the sec-
ond place it appears and insert ‘‘Senate
or House of Representatives, as the case
may be,’’, and strike ‘‘Senate’’ the third
place it appears and insert ‘‘in the appli-
cable House’’.