I
106TH CONGRESS
1ST SESSION
H. R. 1803
To preserve and protect the surpluses of the Social Security trust funds
by reaffirming the exclusion of receipts and disbursement from the budg-
et, by setting a limit on the debt held by the public, and by amending
the Congressional Budget Act of 1974 to provide a process to reduce
the limit on the debt held by the public.
IN THE HOUSE OF REPRESENTATIVES
MAY 13, 1999
Mr. KASICH (for himself and Mr. RYAN of Wisconsin) introduced the following
bill; which was referred to the Committee on the Budget, and in addition
to the Committees on Rules, and Ways and Means, 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 con-
cerned
A BILL
To preserve and protect the surpluses of the Social Security
trust funds by reaffirming the exclusion of receipts and
disbursement from the budget, by setting a limit on
the debt held by the public, and by amending the Con-
gressional Budget Act of 1974 to provide a process to
reduce the limit on the debt held by the public.
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 ‘‘Social Security Surplus
Preservation and Debt Reduction Act’’.
SEC. 2. FINDINGS.
Congress finds that—
(1) the $69,246,000,000 unified budget surplus
achieved in fiscal year 1998 was entirely due to sur-
pluses generated by the social security trust funds
and the cumulative unified budget surpluses pro-
jected for subsequent fiscal years are primarily due
to surpluses generated by the social security trust
funds;
(2) Congress and the President should balance
the budget excluding the surpluses generated by the
social security trust funds;
(3) according to the Congressional Budget Of-
fice, balancing the budget excluding the surpluses
generated by the social security trust funds will re-
duce the debt held by the public by a total of
$1,723,000,000,000 by the end of fiscal year 2009;
and
(4) social security surpluses should be used to
enhance retirement security or to reduce the debt
held by the public and should not be spent on other
programs.
SEC. 3. PROTECTION OF THE SOCIAL SECURITY TRUST
FUNDS.
(a) PROTECTION BY CONGRESS.—
(1) REAFFIRMATION
OF
SUPPORT.—Congress
reaffirms its support for the provisions of section
13301 of the Budget Enforcement Act of 1990 that
provides that the receipts and disbursements of the
social security trust funds shall not be counted for
the purposes of the budget submitted by the Presi-
dent, the congressional budget, or the Balanced
Budget and Emergency Deficit Control Act of 1985.
(2) PROTECTION OF SOCIAL SECURITY BENE-
FITS.—If there are sufficient balances in the Federal
Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund, the
Secretary of Treasury shall give priority to the pay-
ment of social security benefits required to be paid
by law.
(b) POINTS OF ORDER.—Section 301 of the Congres-
sional Budget Act of 1974 is amended by adding at the
end the following:
‘‘(j) SOCIAL SECURITY POINT OF ORDER.—It shall
not be in order in the House of Representatives or the
Senate to consider a concurrent resolution on the budget,
an amendment thereto, or a conference report thereon
that violates section 13301 of the Budget Enforcement
Act of 1990.
‘‘(k) DEBT
HELD
BY
THE
PUBLIC
POINT
OF
ORDER.—It shall not be in order in the House of Rep-
resentatives or the Senate to consider any bill, joint resolu-
tion, amendment, motion, or conference report that
would—
‘‘(1) increase the limit on the debt held by the
public in section 253A(a) of the Balanced Budget
and Emergency Deficit Control Act of 1985; or
‘‘(2) provide additional borrowing authority
that would result in the limit on the debt held by the
public in section 253A(a) of the Balanced Budget
and Emergency Deficit Control Act of 1985 being
exceeded.
‘‘(l) SOCIAL SECURITY SURPLUS PROTECTION POINT
OF ORDER.—
‘‘(1) IN GENERAL.—It shall not be in order in
the House of Representatives or the Senate to con-
sider a concurrent resolution on the budget, an
amendment thereto, or a conference report thereon
that sets forth a deficit in any fiscal year.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply if—
‘‘(A) the limit on the debt held by the pub-
lic in section 253A(a) of the Balanced Budget
and Emergency Deficit Control Act of 1985 is
suspended; or
‘‘(B) the deficit for a fiscal year results
solely from the enactment of—
‘‘(i) retirement security reform legisla-
tion, as defined in section 253A(e)(2) of
the Balanced Budget and Emergency Def-
icit Control Act of 1985; or
‘‘(ii) provisions of legislation that are
designated as an emergency requirement
pursuant to section 251(b)(2)(A) or 252(e)
of the Balanced Budget and Emergency
Deficit Control Act of 1985.’’.
SEC. 4. DEDICATION OF SOCIAL SECURITY SURPLUSES TO
REDUCTION IN THE DEBT HELD BY THE PUB-
LIC.
(a) AMENDMENTS TO THE CONGRESSIONAL BUDGET
ACT OF 1974.—The Congressional Budget Act of 1974
is amended—
(1) in section 3, by adding at the end the fol-
lowing:
‘‘(11)(A) The term ‘debt held by the public’
means the outstanding face amount of all debt obli-
gations issued by the United States Government
that are held by outside investors, including individ-
uals, corporations, State or local governments, for-
eign governments, and the Federal Reserve System.
‘‘(B) For the purpose of this paragraph, the
term ‘face amount’, for any month, of any debt obli-
gation issued on a discount basis that is not redeem-
able before maturity at the option of the holder of
the obligation is an amount equal to the sum of—
‘‘(i) the original issue price of the obliga-
tion; plus
‘‘(ii) the portion of the discount on the ob-
ligation attributable to periods before the begin-
ning of such month.
‘‘(12) The term ‘social security surplus’ means
the amount for a fiscal year that receipts exceed out-
lays of the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance
Trust Fund.’’;
(2) in section 301(a) by—
(A) redesignating paragraphs (6) and (7)
as paragraphs (7) and (8), respectfully; and
(B) inserting after paragraph (5) the fol-
lowing:
‘‘(6) the debt held by the public; and’’; and
(3) in section 310(a) by—
(A) striking ‘‘or’’ at the end of paragraph
(3);
(B) by redesignating paragraph (4) as
paragraph (5); and
(C) inserting the following new paragraph;
‘‘(4) specify the amounts by which the statutory
limit on the debt held by the public is to be changed
and direct the committee having jurisdiction to rec-
ommend such change; or’’.
(b) AMENDMENTS TO THE BALANCED BUDGET AND
EMERGENCY DEFICIT CONTROL ACT OF 1985.—The Bal-
anced Budget and Emergency Deficit Control Act of 1985
is amended—
(1) in section 250, by striking subsection (b)
and inserting the following:
‘‘(b) GENERAL STATEMENT OF PURPOSE.—This part
provides for the enforcement of—
‘‘(1) a balanced budget excluding the receipts
and disbursements of the social security trust funds;
and
‘‘(2) a limit on the debt held by the public to
ensure that social security surpluses are used for re-
tirement security reform or to reduce debt held by
the public and are not spent on other programs.’’;
(2) in section 250(c)(1), by inserting ‘‘ ‘ debt
held by the public’, ‘social security surplus’ ’’ after
‘‘outlays’, ’’; and
(3) by inserting after section 253 the following:
‘‘SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.
‘‘(a) LIMIT.—The debt held by the public shall not
exceed—
‘‘(1) for the period beginning May 1, 2000
through April 30, 2001, $3,628,000,000,000;
‘‘(2) for the period beginning May 1, 2001
through April 30, 2002, $3,512,000,000,000;
‘‘(3) for the period beginning May 1, 2002
through April 30, 2004, $3,383,000,000,000;
‘‘(4) for the period beginning May 1, 2004
through April 30, 2006, $3,100,000,000,000;
‘‘(5) for the period beginning May 1, 2006
through April 30, 2008, $2,775,000,000,000; and,
‘‘(6) for the period beginning May 1, 2008
through April 30, 2010, $2,404,000,000,000.
‘‘(b) ADJUSTMENTS FOR ACTUAL SOCIAL SECURITY
SURPLUS LEVELS.—
‘‘(1) ESTIMATED LEVELS.—The estimated level
of social security surpluses for the purposes of this
section is—
‘‘(A) 
for 
fiscal 
year 
1999,
$127,000,000,000;
‘‘(B) 
for 
fiscal 
year 
2000,
$137,000,000,000;
‘‘(C) 
for 
fiscal 
year 
2001,
$145,000,000,000;
‘‘(D) 
for 
fiscal 
year 
2002,
$153,000,000,000;
‘‘(E) 
for 
fiscal 
year 
2003,
$162,000,000,000;
‘‘(F) 
for 
fiscal 
year 
2004,
$171,000,000,000;
‘‘(G) 
for 
fiscal 
year 
2005,
$184,000,000,000;
‘‘(H) 
for 
fiscal 
year 
2006,
$193,000,000,000;
‘‘(I) 
for 
fiscal 
year 
2007,
$204,000,000,000;
‘‘(J) 
for 
fiscal 
year 
2008,
$212,000,000,000; and
‘‘(K) 
for 
fiscal 
year 
2009,
$218,000,000,000.
‘‘(2) ADJUSTMENT TO THE LIMIT FOR ACTUAL
SOCIAL SECURITY SURPLUSES.—After October 1 and
no later than December 31 of each year, the Sec-
retary shall make the following calculations and ad-
justments:
‘‘(A) CALCULATION.—After the Secretary
determines the actual level for the social secu-
rity surplus for the current year, the Secretary
shall take the estimated level of the social secu-
rity surplus for that year specified in paragraph
(1) and subtract that actual level.
‘‘(B) ADJUSTMENT.—
‘‘(i) 2000 THROUGH 2004.—WITH RE-
SPECT
TO
THE
PERIODS
DESCRIBED
IN
SUBSECTIONS (A)(1), (A)(2), AND (A)(3), THE
SECRETARY SHALL ADD THE AMOUNT CAL-
CULATED UNDER SUBPARAGRAPH (A) TO—
‘‘(I) the limit set forth in sub-
section (a) for the period of years that
begins on May 1st of the following
calendar year; and
‘‘(II) each subsequent limit.
‘‘(ii) 2004 THROUGH 2010.—With re-
spect to the periods described in sub-
sections (a)(4), (a)(5), and (a)(6), the Sec-
retary shall add the amount calculated
under subparagraph (A) to—
‘‘(I) the limit set forth in sub-
section (a) for the period of years that
includes May 1st of the following cal-
endar year; and
‘‘(II) each subsequent limit.
‘‘(c) ADJUSTMENT
TO
THE
LIMIT
FOR
EMER-
GENCIES.—
‘‘(1) ESTIMATE OF LEGISLATION.—
‘‘(A) CALCULATION.—If legislation is en-
acted into law that contains a provision that is
designated as an emergency requirement pursu-
ant to section 251(b)(2)(A) or 252(e), OMB
shall estimate the amount the debt held by the
public will change as a result of the provision’s
effect on the level of total outlays and receipts
excluding the impact on outlays and receipts of
the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insur-
ance Trust Fund.
‘‘(B) BASELINE LEVELS.—OMB shall cal-
culate the changes in subparagraph (A) relative
to baseline levels for each fiscal year through
fiscal year 2010 using current estimates.
‘‘(C) ESTIMATE.—OMB shall include the
estimate required by this paragraph in the re-
port required under section 251(a)(7) or section
252(d), as the case may be.
‘‘(2) ADJUSTMENT.—After January 1 and no
later than May 1 of each calendar year beginning
with calendar year 2000—
‘‘(A) with respect to the periods described
in subsections (a)(1), (a)(2), and (a)(3), the
Secretary shall add the amounts calculated
under paragraph (1)(A) for the current year in-
cluded in the report referenced in paragraph
(1)(C) to—
‘‘(i) the limit set forth in subsection
(a) for the period of years that begins on
May 1 of that calendar year; and
‘‘(ii) each subsequent limit; and
‘‘(B) with respect to the periods described
in subsections (a)(4), (a)(5), and (a)(6), the
Secretary shall add the amounts calculated
under paragraph (1)(A) for the current year in-
cluded in the report referenced in paragraph
(1)(C) to—
‘‘(i) the limit set forth in subsection
(a) for the period of years that includes
May 1 of that calendar year; and
‘‘(ii) each subsequent limit.
‘‘(3) EXCEPTION.—The Secretary shall not
make the adjustments pursuant to this section if the
adjustments for the current year are less than the
on-budget surplus for the year before the current
year.
‘‘(d) ADJUSTMENT TO THE LIMIT FOR LOW ECO-
NOMIC GROWTH AND WAR.—
‘‘(1) SUSPENSION
OF
STATUTORY
LIMIT
ON
DEBT HELD BY THE PUBLIC.—
‘‘(A) LOW
ECONOMIC
GROWTH.—If the
most recent of the Department of Commerce’s
advance, preliminary, or final reports of actual
real economic growth indicate that the rate of
real economic growth for each of the most re-
cently reported quarter and the immediately
preceding quarter is less than 1 percent, the
limit on the debt held by the public established
in this section is suspended.
‘‘(B) WAR.—If a declaration of war is in
effect, the limit on the debt held by the public
established in this section is suspended.
‘‘(2) RESTORATION OF STATUTORY LIMIT ON
DEBT HELD BY THE PUBLIC.—
‘‘(A) RESTORATION OF LIMIT.—The statu-
tory limit on debt held by the public shall be re-
stored on May 1 following the quarter in which
the level of real Gross Domestic Product in the
final report from the Department of Commerce
is equal to or is higher than the level of real
Gross Domestic Product in the quarter pre-
ceding the first two quarters that caused the
suspension of the pursuant to paragraph (1).
‘‘(B) ADJUSTMENT.—
‘‘(i) CALCULATION.—The Secretary
shall take level of the debt held by the pub-
lic on October 1 of the year preceding the
date referenced in subparagraph (A) and
subtract the limit in subsection (a) for the
period of years that includes the date ref-
erenced in subparagraph (A).
‘‘(ii) ADJUSTMENT.—The Secretary
shall add the amount calculated under
clause (i) to—
‘‘(I) the limit in subsection (a)
for the period of fiscal years that in-
cludes the date referenced in subpara-
graph (A); and
‘‘(II) each subsequent limit.
‘‘(e) ADJUSTMENT TO THE LIMIT FOR RETIREMENT
SECURITY REFORM PROVISIONS THAT AFFECT ON-BUDG-
ET LEVELS.—
‘‘(1) ESTIMATE OF LEGISLATION.—
‘‘(A) CALCULATION.—If retirement secu-
rity reform legislation is enacted, OMB shall es-
timate the amount the debt held by the public
will change as a result of the legislation’s effect
on the level of total outlays and receipts exclud-
ing the impact on outlays and receipts of the
Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance
Trust Fund.
‘‘(B) BASELINE LEVELS.—OMB shall cal-
culate the changes in subparagraph (A) relative
to baseline levels for each fiscal year through
fiscal year 2010 using current estimates.
‘‘(C) ESTIMATE.—OMB shall include the
estimate required by this paragraph in the re-
port required under section 252(d) for retire-
ment security reform legislation.
‘‘(2) ADJUSTMENT
TO
LIMIT
ON
THE
DEBT
HELD BY THE PUBLIC.—If retirement security re-
form legislation is enacted, the Secretary shall ad-
just the limit on the debt held by the public for each
period of fiscal years by the amounts determined
under paragraph (1)(A) for the relevant fiscal years
included in the report referenced in paragraph
(1)(C).
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) SECRETARY.—The term ‘Secretary’ means
the Secretary of the Treasury.
‘‘(2) RETIREMENT SECURITY REFORM LEGISLA-
TION.—The term ‘retirement security reform legisla-
tion’ means a bill or joint resolution that is enacted
into law and includes a provision stating the fol-
lowing:
‘‘ ‘(
) RETIREMENT SECURITY REFORM LEGIS-
LATION.—For the purposes of the Social Security
Surplus Preservation and Debt Reduction Act, this
Act constitutes retirement security reform legisla-
tion.’
This paragraph shall apply only to the first bill or
joint resolution enacted into law as described in this
paragraph.
‘‘(3) RETIREMENT
SECURITY
REFORM
PROVI-
SIONS.—The term ‘retirement security reform provi-
sions’ means a provision or provisions identified in
retirement security reform legislation stating the fol-
lowing:
‘‘ ‘(
) RETIREMENT SECURITY REFORM PROVI-
SIONS.—For the purposes of the Social Security
Surplus Preservation and Debt Reduction Act,
llll of this Act constitutes or constitute social
security reform provisions.’, with a list of specific
provisions in that bill or joint resolution specified in
the blank space.’’.
SEC. 5. PRESIDENT’S BUDGET.
Section 1105(f) of title 31, United States Code, is
amended by striking ‘‘in a manner consistent’’ and insert-
ing ‘‘in compliance’’.
SEC. 6. SUNSET.
This Act and the amendments made by it shall expire
on April 30, 2010.
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