SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Strengthen Social Se-
curity and Medicare Act of 1999’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that:
(1) The social security system is one of the cor-
nerstones of American national policy and has al-
lowed a generation of Americans to retire with dig-
nity. For 30 percent of all senior citizens, social se-
curity benefits provide almost 90 percent of their re-
tirement income. For 66 percent of all senior citi-
zens, social security benefits provide over half of
their retirement income. Poverty rates among the el-
derly are at the lowest level since the United States
began to keep poverty statistics, due in large part to
the social security system. The social security sys-
tem, together with the additional protections af-
forded by the medicare system, have been an out-
standing success for past and current retirees and
must be preserved for future retirees.
(2) The long-term solvency of the social security
and medicare trust funds is not assured. There is an
estimated long-range actuarial deficit in the social
security trust funds. According to the 1999 report of
the Board of Trustees of the social security trust
funds, the accumulated balances in the Federal Old-
Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund are cur-
rently projected to become unable to pay benefits in
full on a timely basis starting in 2034. The medicare
system faces more immediate financial shortfalls,
with the Hospital Insurance Trust Fund projected
to become exhausted in 2015.
(3) In addition to preserving social security and
medicare, the Congress and the President have a re-
sponsibility to future generations to reduce the Fed-
eral debt held by the public. Significant debt reduc-
tion will contribute to the economy and improve the
Government’s ability to fulfill its responsibilities and
to face future challenges, including preserving and
strengthening social security and medicare.
(4) The Federal Government is now in sound fi-
nancial condition. The Federal budget is projected to
generate significant surpluses. In fiscal years 1998
and 1999, there were unified budget surpluses, the
first consecutive surpluses in more than 40 years.
Over the next 15 years, the Government projects the
on-budget surplus, which excludes social security, to
total $2,900,000,000,000. The unified budget sur-
plus (including social security) is projected by the
Government to total $5,900,000,000,000 over the
next 15 years.
(5) The surplus, excluding social security, offers
an unparalleled opportunity to: preserve social secu-
rity; protect, strengthen, and modernize medicare;
and significantly reduce the Federal debt held by the
public, for the future benefit of all Americans.
(b) PURPOSE.—It is the purpose of this Act to pro-
tect the social security surplus for debt reduction, to ex-
tend the solvency of social security, and to set aside a re-
serve to be used to protect, strengthen, and modernize
medicare.
SEC. 3. ADDITIONAL APPROPRIATIONS TO FEDERAL OLD-
AGE AND SURVIVORS INSURANCE TRUST
FUND AND FEDERAL DISABILITY INSURANCE
TRUST FUND.
(a) PURPOSE.—The purpose of this section is to as-
sure that the interest savings on the debt held by the pub-
lic achieved as a result of social security surpluses from
2000 to 2015 are dedicated to social security solvency.
(b) 
ADDITIONAL
APPROPRIATION
TO
TRUST
FUNDS.—Section 201 of the Social Security Act (42
U.S.C. 401) is amended by adding at the end the following
new subsection:
‘‘(n) 
ADDITIONAL
APPROPRIATION
TO
TRUST
FUNDS.—
‘‘(1) In addition to the amounts appropriated to
the Trust Funds under subsections (a) and (b),
there is hereby appropriated to the Trust Funds, out
of any moneys in the Treasury not otherwise
appropriated—
‘‘(A) for the fiscal year ending September
30, 2011, and for each fiscal year thereafter
through the fiscal year ending September 30,
2016, an amount equal to the prescribed
amount for the fiscal year; and
‘‘(B) for the fiscal year ending September
30, 2017, and for each fiscal year thereafter
through the fiscal year ending September 30,
2044, an amount equal to the prescribed
amount for the fiscal year ending September
30, 2016.
‘‘(2) The amount appropriated by paragraph
(1) in each fiscal year shall be transferred in equal
monthly installments.
‘‘(3) The amount appropriated by paragraph
(1) in each fiscal year shall be allocated between the
Trust Funds in the same proportion as the taxes im-
posed by chapter 21 (other than sections 3101(b)
and 3111(b)) of the Internal Revenue Code of 1986
with respect to wages (as defined in section 3121
of such Code) reported to the Secretary of Treasury
or his delegate pursuant to subtitle F of such Code,
and the taxes imposed by chapter 2 (other than sec-
tion 1401(b)) of such Code with respect to self-em-
ployment income (as defined in section 1402 of such
Code) reported to the Secretary of the Treasury or
his delegate pursuant to subtitle F of such Code,
are allocated between the Trust Funds in the cal-
endar year that begins in the fiscal year.
‘‘(4) For purposes of this subsection, the pre-
scribed amount for any fiscal year shall be deter-
mined by multiplying:
‘‘(A) the excess of—
‘‘(i) the sum of—
‘‘(I) the face amount of all obli-
gations of the United States held by
the Trust Funds on the last day of
the fiscal year immediately preceding
the fiscal year of determination pur-
chased with amounts appropriated or
credited to the Trust Funds other
than any amount appropriated under
paragraph (1); and
‘‘(II) the sum of the amounts ap-
propriated under paragraph (1) and
transferred 
under 
paragraph 
(2)
through the last day of the fiscal year
immediately preceding the fiscal year
of determination, and an amount
equal to the interest that would have
been 
earned 
thereon 
had 
those
amounts been invested in obligations
of the United States issued directly to
the Trust Funds under subsections
(d) and (f); over
‘‘(ii) the face amount of all obligations
of the United States held by the Trust
Funds on September 30, 1999, times
‘‘(B) a rate of interest determined by the
Secretary of the Treasury, at the beginning of
the fiscal year of determination, as follows:
‘‘(i) if there are any marketable inter-
est-bearing obligations of the United
States then forming a part of the public
debt, a rate of interest determined by tak-
ing into consideration the average market
yield (computed on the basis of daily clos-
ing market bid quotations or prices during
the calendar month immediately preceding
the determination of the rate of interest)
on such obligations; and
‘‘(ii) if there are no marketable inter-
est-bearing obligations of the United
States then forming a part of the public
debt, a rate of interest determined to be
the best approximation of the rate of inter-
est described in clause (i), taking into con-
sideration the average market yield (com-
puted on the basis of daily closing market
bid quotations or prices during the cal-
endar month immediately preceding the de-
termination of the rate of interest) on in-
vestment grade corporate obligations se-
lected by the Secretary of the Treasury,
less an adjustment made by the Secretary
of the Treasury to take into account the
difference between the yields on corporate
obligations comparable to the obligations
selected by the Secretary of the Treasury
and yields on obligations of comparable
maturities issued by risk-free government
issuers selected by the Secretary of the
Treasury.’’.
SEC. 4. PROTECTION OF SOCIAL SECURITY SURPLUSES.
(a) POINTS OF ORDER TO PROTECT SOCIAL SECU-
RITY SURPLUSES.—Section 312 of the Congressional
Budget Act of 1974 is amended by adding at the end the
following new subsection:
‘‘(g) POINTS OF ORDER TO PROTECT SOCIAL SECU-
RITY SURPLUSES.—
‘‘(1) CONCURRENT
RESOLUTIONS
ON
THE
BUDGET.—It shall not be in order in the House of
Representatives or the Senate to consider any con-
current resolution on the budget, or conference re-
port thereon or amendment thereto, that would set
forth an on-budget deficit for any fiscal year.
‘‘(2) SUBSEQUENT LEGISLATION.—It shall not
be in order in the House of Representatives or the
Senate to consider any bill, joint resolution, amend-
ment, motion, or conference report if—
‘‘(A) the enactment of that bill or resolu-
tion, as reported;
‘‘(B) the adoption and enactment of that
amendment; or
‘‘(C) the enactment of that bill or resolu-
tion in the form recommended in that con-
ference report;
would cause or increase an on-budget deficit for any
fiscal year.
‘‘(3) BUDGET
RESOLUTION
BASELINE.—(A)
For purposes of this subsection, the term ‘on-budget
deficit’ means, with respect to a concurrent resolu-
tion on the budget, that the resolution sets forth an
on-budget deficit for a fiscal year and the baseline
budget projection of the surplus or deficit for such
fiscal year on which such resolution is based projects
an on-budget surplus, on-budget balance, or an on-
budget deficit that is less than the deficit set forth
in the resolution.
‘‘(B) For purposes of this subsection, the term
‘cause or increase an on-budget deficit’ means, with
respect to legislation, causes or increase an on-budg-
et deficit relative to the baseline budget projection.
‘‘(C) For purposes of this subsection, the term
‘baseline budget projection’ means the projection de-
scribed in section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985 of current-
year levels of outlays, receipts, and the surplus or
deficit into the budget year and future years, except
that—
‘‘(i) if outlays for programs subject to dis-
cretionary appropriations are subject to discre-
tionary statutory spending limits, such outlays
shall be projected at the level of any applicable
current adjusted statutory discretionary spend-
ing limits;
‘‘(ii) if outlays for programs subject to dis-
cretionary appropriations are not subject to dis-
cretionary spending limits, such outlays shall be
projected as required by section 257 beginning
in the first fiscal year following the last fiscal
year in which such limits applied; and
‘‘(iii) with respect to direct spending or re-
ceipts legislation previously enacted during the
current calendar year and after the most recent
baseline estimate pursuant to section 257 of the
Balanced Budget and Emergency Deficit Con-
trol Act of 1995, the net extent (if any) by
which all such legislation is more than fully
paid for in one of the applicable time periods
shall count as a credit for that timer period
against increases in direct spending or reduc-
tion in net revenue.’’.
(b) CONTENT OF CONCURRENT RESOLUTIONS ON
THE BUDGET.—Section 301(a) of the Congressional
Budget Act of 1974 is amended by redesignating para-
graphs (6) and (7) as paragraphs (7) and (8), respectively,
and by inserting after paragraph (5) the following new
paragraph:
‘‘(6) the receipts, outlays, and surplus or deficit
in the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance
Trust Fund, combined, established by title II of the
Social Security Act;’’.
(c) SUPER MAJORITY REQUIREMENT.—
(1) Section 904(c)(1) of the Congressional
Budget Act of 1974 is amended by inserting
‘‘312(g),’’ after ‘‘310(d)(2),’’.
(2) Section 904(d)(2) of the Congressional
Budget Act of 1974 is amended by inserting
‘‘312(g),’’ after ‘‘310(d)(2),’’.
SEC. 5. PROTECTION OF MEDICARE.
(a) POINTS OF ORDER TO PROTECT MEDICARE.—
(1) Section 301 of the Congressional Budget
Act of 1974 is amended by adding at the end the
following new subsection:
‘‘(j) POINT OF ORDER TO PROTECT MEDICARE.—
‘‘(1) IN GENERAL.—It shall not be in order in
the House of Representatives or the Senate to con-
sider any concurrent resolution on the budget (or
amendment, motion, or conference report on the res-
olution) that would decrease the on-budget surplus
for the total of the period of fiscal years 2000
through 2009 below the level of the medicare surplus
reserve for those fiscal years as calculated in accord-
ance with section 3(11).
‘‘(2) INAPPLICABILITY.—This subsection shall
not apply to legislation that—
‘‘(A) appropriates a portion of the medi-
care reserve for new amounts for prescription
drug benefits under the medicare program as
part of or subsequent to legislation extending
the solvency of the Medicare Hospital Insurance
Trust Fund; or
‘‘(B) appropriates new amounts from the
general fund to the Medicare Hospital Insur-
ance Trust Fund.’’.
(2) Section 311(a) of the Congressional Budget
Act of 1974 is amended by adding at the end the
following:
‘‘(4) ENFORCEMENT OF THE MEDICARE SUR-
PLUS RESERVE.—
‘‘(A) IN
GENERAL.—It shall not be in
order in the House of Representatives or the
Senate to consider any bill, joint resolution,
amendment, motion, or conference report that
together with associated interest costs would
decrease the on-budget surplus for the total of
the period of fiscal years 2000 through 2009
below the level of the medicare surplus reserve
for those fiscal years as calculated in accord-
ance with section 3(11).
‘‘(B) INAPPLICABILITY.—This paragraph
shall not apply to legislation that—
‘‘(i) appropriates a portion of the
medicare reserve for new amounts for pre-
scription drug benefits under the medicare
program as part of or subsequent to legis-
lation extending the solvency of the Medi-
care Hospital Insurance Trust Fund; or
‘‘(ii) appropriates new amounts from
the general fund to the Medicare Hospital
Insurance Trust Fund.’’.
(b) DEFINITION.—Section 3 of the Congressional
Budget Act of 1974 is amended by adding at the end the
following:
‘‘(11) The term ‘Medicare surplus reserve’
means 1⁄3 of any on-budget surplus for the total of
the period of the fiscal years 2000 through 2009, as
estimated by the Congressional Budget Office in the
most recent initial report for a fiscal year pursuant
to section 202(e).’’.
(c) SUPER MAJORITY REQUIREMENT.—
(1) Section 904(c)(2) of the Congressional
Budget Act of 1974 is amended by inserting
‘‘301(j),’’ after ‘‘301(i),’’.
(2) Section 904(d)(3) of the Congressional
Budget Act of 1974 is amended by inserting
‘‘301(j),’’ after ‘‘301(i),’’.
SEC. 6. EXTENSION OF DISCRETIONARY SPENDING LIMITS.
(a) EXTENSION OF LIMITS.—Section 215(b)(2) of
the Balanced Budget and Emergency Deficit Control Act
of 1985 is amended, in the matter before subparagraph
(A), by striking ‘‘2002’’ and inserting ‘‘2014’’.
(b) EXTENSION OF AMOUNTS.—Section 251(c) of the
Balanced Budget and Emergency Deficit Control Act of
1985 is amended by striking paragraphs (4), (5), (6), and
(7), and inserting the following:
‘‘(4) with respect to fiscal year 2000—
‘‘(A) 
for 
the 
discretionary 
category:
$535,368,000,000 in new budget authority and
$543,257,000,000 in outlays;
‘‘(B) 
for 
the 
highway 
category:
$24,574,000,000 in outlays;
‘‘(C) for the mass transit category:
$4,117,000,000 in outlays; and
‘‘(D) for the violent crime reduction cat-
egory: $4,500,000,000 in new budget authority
and $5,564,000,000 in outlays;
‘‘(5) with respect to fiscal year 2001—
‘‘(A) 
for 
the 
discretionary 
category:
$573,004,000,000 in new budget authority and
$564,931,000,000 in outlays;
‘‘(B) 
for 
the 
highway 
category:
$26,234,000,000 in outlays; and
‘‘(C) for the mass transit category:
$4,888,000,000 in outlays;
‘‘(6) with respect to fiscal year 2002—
‘‘(A) 
for 
the 
discretionary 
category:
$584,754,000,000 in new budget authority and
$582,516,000,000 in outlays;
‘‘(B) 
for 
the 
highway 
category:
$26,655,000,000 in outlays; and
‘‘(C) for the mass transit category:
$5,384,000,000 in outlays;
‘‘(7) with respect to fiscal year 2003—
‘‘(A) 
for 
the 
discretionary 
category:
$590,800,000,000 in new budget authority and
$587,642,000,000 in outlays;
‘‘(B) 
for 
the 
highway 
category:
$27,041,000,000 in outlays; and
‘‘(C) for the mass transit category:
$6,124,000,000 in outlays;
‘‘(8) with respect to fiscal year 2004, for the
discretionary category: $604,319,000,000 in the new
budget authority and $634,039,000,000 in outlays;
‘‘(9) with respect to fiscal year 2005, for the
discretionary category: $616,496,000,000 in new
budget authority and $653,530,000,000 in outlays;
‘‘(10) with respect to fiscal year 2006, for the
discretionary category: $630,722,000,000 in new
budget authority and $671,530,000,000 in outlays;
‘‘(11) with respect to fiscal year 2007, for the
discretionary category: $644,525,000,000 in new
budget authority and $687,532,000,000 in outlays;
‘‘(12) with respect to fiscal year 2008, for the
discretionary category: $663,611,000,000 in the new
budget authority and $704,534,000,000 in outlays;
and
‘‘(13) with respect to fiscal year 2009, for the
discretionary category: $678,019,000,000 in new
budget authority and $721,215,000,000 in outlays;
as adjusted in strict conformance with subsection (b).
With respect to fiscal year 2010 and each fiscal year
thereafter, the term ‘discretionary spending limit’ means,
for the discretionary category, the baseline amount cal-