I
103D CONGRESS
1ST SESSION
H. R. 1050
To improve budgetary information by requiring that the unified budget pre-
sented by the President contain an operating budget and a capital
budget, distinguish between Federal funds and trust funds, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 23, 1993
Mr. CLINGER (for himself, Mr. HORN, Mr. ZELIFF, Mr. MACHTLEY, Mr.
THOMAS of Wyoming, Mr. WISE, and Mr. HASTERT) introduced the fol-
lowing bill; which was referred jointly to the Committees on Government
Operations and Public Works and Transportation
A BILL
To improve budgetary information by requiring that the uni-
fied budget presented by the President contain an operat-
ing budget and a capital budget, distinguish between
Federal funds and trust funds, 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 ‘‘Federal Budget Struc-
ture Act of 1993’’.
SEC. 2. STATEMENT OF FINDING AND PURPOSE.
(a) STATEMENT OF FINDING.—Congress finds that
the existing budget obscures the distinctions between cap-
ital activities and operating activities, and between Fed-
eral funds and trust funds so as to hinder identifying the
resources needed to meet the Government’s needs.
(b) PURPOSE.—It is the purpose of this Act that the
unified budget present a capital budget and an operating
budget, and distinguish between Federal funds and trust
funds, in order to provide better and more relevant infor-
mation on the revenues, expenses, and financing require-
ments of Government programs and activities.
SEC. 3. CAPITAL AND OPERATING BUDGETS.
Title 31, United States Code, is amended by inserting
after section 1105 the following new section:
‘‘§ 1105a. Capital and operating budgets
‘‘(a)(1) The budget of the United States submitted
by the President under section 1105 of this title shall be
a unified budget composed of an operating budget and a
capital budget.
‘‘(2) Operating and capital budgets shall be presented
separately for total funds, Federal funds, and trust funds.
‘‘(b)(1) Actual, estimated, and proposed amounts
shall be presented for total funds, Federal funds, and trust
funds and, at a minimum, shall contain—
‘‘(A) for the operating budget the following: (i)
operating revenues, (ii) operating expenses, (iii) op-
erating surplus/deficit before interfund transfers,
(iv) interfund transfers, and (v) operating surplus/
deficit;
‘‘(B) for the capital budget the following: (i)
capital revenues, (ii) capital investments, (iii) net
capital investments, (iv) interfund transfers, and (v)
capital financing requirements;
‘‘(C) items not affecting funds; and
‘‘(D) unified budget financing requirements.
‘‘(2) The capital budget shall represent only the
major activities, projects, and programs which support the
acquisition, construction, alteration, and rehabilitation of
capital assets. All other activities, projects, and programs
shall be represented in the operating budget.
‘‘(c) In addition to the unified budget submitted by
the President as required by subsections (a) and (b) of
this section, the President shall present information in the
form required by subsection (b)(1) for accounts, agencies,
and functions, to the extent applicable.
‘‘(d) In this section—
‘‘(1) ‘unified budget’ means a budget in which
revenues and expenses for Federal funds and trust
funds are consolidated to display totals for the Fed-
eral Government as a whole;
‘‘(2) ‘trust funds’ means—
‘‘(A) the Federal Old-Age and Survivors
Insurance Trust Fund,
‘‘(B) the Federal Hospital Insurance Trust
Fund,
‘‘(C) the Civil Service Retirement and Dis-
ability Fund,
‘‘(D) the Military Retirement Fund,
‘‘(E) the Federal Supplementary Medical
Insurance Trust Fund,
‘‘(F) the Unemployment Trust Fund,
‘‘(G) the Federal Disability Insurance
Trust Fund, and
‘‘(H) such other funds or accounts of the
Government that the Director of the Office of
Management and Budget, in consultation with
the Comptroller General, determines should be
classified as trust funds in order to fulfill the
purpose of this section;
‘‘(3) ‘Federal funds’ includes all accounts of the
Government that are not trust funds;
‘‘(4) ‘total funds’ means Federal funds and
trust funds and represents the unified budget;
‘‘(5) ‘capital assets’ means physical assets and
financial assets, but does not include consumable in-
ventories;
‘‘(6) ‘physical assets’ means tangible assets
whose ownership is or will be in the public domain;
which typically produce services or benefits, includ-
ing for national defense and security, for more than
2 years; and which have an initial cost equal to or
more than $100,000; such assets include, but are
not limited to—
‘‘(A) roadways and bridges;
‘‘(B) airports and airway facilities;
‘‘(C) mass transportation systems;
‘‘(D) waste water treatment and related
facilities;
‘‘(E) water resource projects;
‘‘(F) medical facilities;
‘‘(G) resource recovery facilities;
‘‘(H) public structures;
‘‘(I) space and communication facilities;
‘‘(J) defense facilities;
‘‘(K) major weapons platforms; and
‘‘(L) strategic petroleum reserves and min-
eral stockpiles;
‘‘(7) ‘financial assets’ means interests of the
Federal Government in, and claims of the Federal
Government against, foreign governments, States
and their political subdivisions, corporations, asso-
ciations, and individuals and their resources which
are represented by a legal instrument (such as
bonds, debentures, notes, and other securities), less
any credit subsidy costs attributable to such finan-
cial assets;
‘‘(8) ‘credit subsidy costs’ means the losses in-
curred by the Federal Government as a result of its
direct and guaranteed loans, including such costs as
interest and default;
‘‘(9) ‘consumable inventories’ means tangible
assets of the Federal Government, including stock-
piles, supplies, and inventories, which typically are
consumed within 2 years or which have an initial
price less than $100,000;
‘‘(10) ‘operating revenues’ means all receipts of
the Federal Government, other than those identified
in paragraph (16), including profits and interest
earned on financial assets;
‘‘(11) ‘operating expenses’ means all expenses
of the Federal Government, other than those identi-
fied in paragraph (17), including interest payments
on debts, asset consumption charge, and credit sub-
sidy costs;
‘‘(12) ‘the operating surplus/deficit before
interfund transfers’ means the difference between
operating revenues and operating expenses before
interfund transfers;
‘‘(13) ‘interfund transfers’ means the flow of
revenues between Federal funds and trust funds ac-
counts that are expenses from the account making
the payments and revenues to the account receiving
the payments;
‘‘(14) ‘operating surplus/deficit’ means the op-
erating surplus/deficit before interfund transfers
plus or minus interfund transfers;
‘‘(15) ‘asset consumption charge’ means the
systematic allocation of the original cost—historical,
replacement, or current value—of a physical asset
(excluding national monuments and land) financed
by the appropriation accounts for which the capital
budget required by this section applies;
‘‘(16) ‘capital revenues’ means receipts of the
Federal Government derived from the repayment of
principal invested in financial assets, and taxes, col-
lections, and receipts dedicated by statute, for the
acquisition, construction, and rehabilitation of cap-
ital assets which relate to the activities, functions,
and programs represented by the capital budget;
‘‘(17) ‘capital investments’ means expenditures
of the Federal Government, including those under
grants, contracts, and leases, which are for the ac-
quisition, construction, and rehabilitation of capital
assets;
‘‘(18) ‘net capital investments’ means the
amount by which capital investments exceed the
asset consumption charge;
‘‘(19) ‘capital financing requirements’ means
net capital investments plus or minus interfund
transfers;
‘‘(20) ‘items not affecting funds’ means
noncash outlays of the Federal Government; and
‘‘(21) ‘unified budget financing requirements’
means the total of the operating surplus/deficit and
the net capital financing requirements less items not
affecting funds.’’.
SEC. 4. CONFORMING AMENDMENTS.
(a) DUTIES OF COMPTROLLER GENERAL.—Section
1112 of title 31, United States Code, is amended—
(1) in subsection (c)(1) by inserting ‘‘criteria,
principles, and standards for determining the con-
tents of the operating and capital budgets required
under section 1105a of this title, and’’ after ‘‘includ-
ing’’; and
(2) by adding at the end thereof the following
new subsection:
‘‘(g) The Comptroller General shall review and report
to the Congress on the implementation of section 1105a
of this title as the Comptroller General deems necessary.
A review by the Comptroller General may include, but
need not be limited to, determining whether (1) the actual,
estimated, and proposed appropriations, receipts, and in-
vestments presented in the capital budget represent activi-
ties, functions, and programs which support the acquisi-
tion, construction, alteration, and rehabilitation of capital
assets, and (2) the classifications made by the Director
of the Office of Management and Budget under section
1105a(d)(2)(H) of this title further the purposes of sec-
tion 1105a.’’.
(b) CHAPTER ANALYSIS.—The analysis for chapter
11 of such title is amended by inserting after the item
relating to section 1105 the following:
‘‘1105a. Capital and operating budgets.’’.
SEC. 5. PUBLIC WORKS FINANCING INFORMATION.
Title VII of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3211–3226) is amended by
adding at the end thereof the following new section:
‘‘(c) WATER RESOURCES REPORTS.—Not later than
12 months after the date of the enactment of the Federal
Budget Structure Act of 1991, and annually thereafter,
the Assistant Secretary of the Army for Civil Works shall
report to the House Committee on Public Works and
Transportation and the Senate Committee on Environ-
ment and Public Works, at the account and function lev-
els, the actual, estimated, and proposed appropriations, re-
ceipts, and expenditures for capital activities and operat-
ing activities associated with water resource projects.
‘‘(d) PUBLIC BUILDINGS REPORTS.—Not later than
12 months after the date of the enactment of the Federal
Budget Structure Act of 1991, and annually thereafter,
the Administrator of the General Services Administration
shall report to the House Committee on Public Works and
Transportation and the Senate Committee on Environ-
ment and Public Works, at the account and function lev-
els, the actual, estimated, and proposed appropriations, re-
ceipts, and expenditures for capital activities and operat-
ing activities associated with public buildings.’’.
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