Balanced Budget/Spending Limitation Act of 1995

on the Budget.--(1) Section 300 is amended by 
striking ``concurrent resolution'' each place it appears and inserting 
``joint resolution''.
    (2) Section 301(a) of the Congressional Budget Act of 1974 is 
amended by striking ``concurrent resolution'' each place it appears 
including in the caption and inserting ``joint resolution''.
    (3) Section 301(b) is amended by striking ``concurrent resolution'' 
each place it appears including in the caption and inserting ``joint 
resolution''.
    (4) Section 301(c) is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.
    (5) Section 301(e) is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.
    (6) Section 301(f) is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.
    (7) Section 301(g) is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.
    (8) Section 301(h) is amended by striking ``concurrent resolution'' 
and inserting ``joint resolution''.
    (9) Section 301(i) is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.
    (10) The section heading of section 301 is amended by striking 
``annual adoption of concurrent'' and inserting ``annual adoption of 
joint''.
    (11) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
striking ``Annual adoption of the concurrent'' in the item relating to 
section 301 and inserting ``Annual adoption of the joint''.
    (12) Section 302 is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.
    (13) Section 303, including the heading, is amended by striking 
``concurrent resolution'' each place it appears and inserting ``joint 
resolution''.
    (14) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
striking ``Concurrent'' in the item relating to section 303 and 
inserting ``Joint''.
    (15) Section 304 is amended by striking ``concurrent resolution'', 
including in the heading, each place it appears and inserting ``joint 
resolution''.
    (16) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
striking ``Concurrent'' in the item relating to section 304 and 
inserting ``Joint''.
    (17) Section 305 is amended by striking ``concurrent resolution'', 
including in the heading, each place it appears and inserting ``joint 
resolution''.
    (18) Section 308 is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.
    (19) Section 310 is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.
    (20) Section 311 is amended by striking ``concurrent resolution'' 
each place it appears and inserting ``joint resolution''.

           TITLE II--BALANCED BUDGET AND SPENDING RESTRAINTS

SEC. 201. BALANCED BUDGET AND SPENDING RESTRAINTS.

    (a) Federal Spending Limit.--Section 601(a) of the Congressional 
Budget Act of 1974 is amended by adding at the end the following:
            ``(3) Federal spending limit.--The term `Federal spending 
        limit' means--
                    ``(A) with respect to fiscal year 1996, outlays not 
                exceeding 21.5 per centum of the GDP;
                    ``(B) with respect to fiscal year 1997, outlays not 
                exceeding 21 per centum of the GDP;
                    ``(C) with respect to fiscal year 1998, outlays not 
                exceeding 20.5 per centum of the GDP;
                    ``(D) with respect to fiscal year 1999, outlays not 
                exceeding 20 per centum of the GDP;
                    ``(E) with respect to fiscal year 2000, outlays not 
                exceeding 19.5 per centum of the GDP;
                    ``(F) with respect to fiscal year 2001, outlays not 
                exceeding 19 per centum of the GDP; and
                    ``(G) with respect to fiscal year 2002 and each 
                fiscal year thereafter, outlays not exceeding 19 per 
                centum of the GDP or the maximum deficit amount 
                whichever is less.
            ``(4) GDP.--The term `GDP' means the gross domestic product 
        for the relevant fiscal year.''.
    (b) Maximum Deficit Amount.--Section 601(a)(1) of the Congressional 
Budget Act of 1974 is amended to read as follows:
            ``(1) Maximum deficit amount.--The term `maximum deficit 
        amount' means--
                    ``(A) with respect to fiscal years 1996 through 
                2001, the excess of the Federal spending limit over 
                revenues; and
                    ``(B) with respect to fiscal year 2002, and each 
                fiscal year thereafter, zero.''.
    (c) Technical Amendments.--Part C of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended--
            (1) in the heading for such part by inserting ``Federal 
        spending limit and'' after ``excess of'';
            (2) in section 250(c)(1) by inserting ``, `Federal spending 
        limit','' after ``deficit amount''';
            (3) in section 253(b)(1) by inserting ``or Federal spending 
        limit, as applicable,'' after ``deficit amount''; and
            (4) in section 254(d)(4)(A) by inserting ``the Federal 
        spending limit,'' after ``deficit amount,''.

SEC. 202. MAXIMUM DEFICIT AND FEDERAL SPENDING LIMIT POINT OF ORDER.

    (a) MDSA Point of Order.--Section 605(b) of the Congressional 
Budget Act of 1974 is amended to read as follows:
    ``(b) Maximum Deficit and Federal Spending Limit Point of Order.--
            ``(1) In general.--It shall not be in order in the House of 
        Representatives or the Senate to consider any bill, joint 
        resolution, amendment, or conference report that includes any 
        provision that would result in a deficit for a fiscal year that 
        exceeds the maximum deficit amount or Federal spending limit, 
        as applicable, for such fiscal year.
            ``(2) Waiver or suspension.--This subsection may be waived 
        or suspended in the House of Representatives or the Senate only 
        by the affirmative rollcall vote of three-fifths of the 
        Members, duly chosen and sworn.''.
    (b) Limit on Public Debt.--Section 605 of the Congressional Budget 
Act of 1974 is amended by adding at the end thereof the following:
    ``(c) Limit on Public Debt.--
            ``(1) In general.--
                    ``(A) Fiscal years 1996 through 2001.--For fiscal 
                years 1996 through 2001, it shall not be in order in 
                the House of Representatives or the Senate to consider 
                any bill, joint resolution, amendment, or conference 
                report that includes any provision that increases the 
                national debt held by the public established in the 
                joint resolution on the budget for a fiscal year in 
                excess of the Federal spending limit.
                    ``(B) Fiscal year 2002 and thereafter.--
                Notwithstanding any other provision of law and for 
                fiscal year 2002 and fiscal years thereafter, there 
                shall be no increase in the national debt held by the 
                public.
            ``(2) Waiver or suspension.--Paragraphs (1)(A) and (1)(B) 
        may be waived or suspended in the House of Representatives or 
        the Senate only by the affirmative roll call vote of three-
        fifths of the Members, duly chosen and sworn.''.

SEC. 203. SOCIAL SECURITY FIREWALL.

    Section 301(i) of the Congressional Budget Act of 1974 is amended 
to read as follows:
    ``(i) Social Security Point of Order.--
            ``(1) In general.--It shall not be in order in the Senate 
        or the House of Representatives to consider any bill, joint 
        resolution, amendment, or conference report that does not 
        allocate savings derived from changes in social security 
        benefits or revenues from social security tax increases to the 
        social security trust fund.
            ``(2) Waiver or suspension.--This subsection may be waived 
        or suspended in the House of Representatives or the Senate only 
        by the affirmative rollcall vote of three-fifths of the 
        Members, duly chosen and sworn.''.

SEC. 204. MID-YEAR SEQUESTER AND END OF THE YEAR SEQUESTER.

    Section 253 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by adding at the end thereof the following new 
subsections:
    ``(i) Mid-Year Sequester.--
            ``(1) In general.--On April 1 of each fiscal year, the 
        Director of OMB shall determine if laws effective during the 
        current fiscal year will cause the deficit to exceed the 
        maximum deficit or Federal spending limit, as applicable, for 
        such fiscal year. If the limit is exceeded, there shall be a 
        preliminary sequester on April 1 to eliminate the excess.
            ``(2) Permanent sequester.--Budget authority sequestered on 
        April 1 pursuant to paragraph (1) shall be permanently canceled 
        on April 15.
            ``(3) No margin.--The margin for determining a sequester 
        under this subsection shall be zero.
            ``(4) Sequestration procedures.--The provision of 
        subsections (c), (d), and (e) of this section shall apply to a 
        sequester under this subsection.
    ``(j) End of the Year Sequester.--
            ``(1) In general.--On September 30 of each fiscal year, the 
        Director of OMB shall determine if laws effective during the 
        current fiscal year will cause the deficit to exceed the 
        maximum deficit or Federal spending limit, as applicable, for 
        such fiscal year. If the limit is exceeded, there shall be a 
        preliminary sequester on October 1 applicable to the fiscal 
        year beginning on that date to eliminate the excess.
            ``(2) Permanent sequester.--Budget authority sequestered on 
        October 1 pursuant to paragraph (1) shall be permanently 
        canceled on October 15.
            ``(3) No margin.--The margin for determining a sequester 
        under this subsection shall be zero.
            ``(4) Sequestration procedures.--The provision of 
        subsections (c), (d), and (e) of this section shall apply to a 
        sequester under this subsection.''.

SEC. 206. PRESIDENT'S REVISED BUDGET FOR 1996.

    Not later than May 6, 1995, or 90 days after the date of enactment 
of this Act, whichever is later, the President shall submit a revised 
budget for fiscal year 1996 that conforms to the spending limitations 
established in this Act.

SEC. 207. SAVINGS PROVISION.

    The amendments made by this title, the limits established by this 
title, and the procedures provided in Acts amended by this title 
necessary to enforce such limits shall apply with respect to fiscal 
years beginning with fiscal year 1996 and shall continue 
notwithstanding the termination of any Act setting forth such 
procedures.

Summary: TABLE OF CONTENTS: 
     Title I:  Joint Budget Resolution 
     Title II:  Balanced Budget and Spending Restraints 
Balanced Budget-Spending Limitation Act of 1995 - 
Title I:  Joint Budget Resolution
 - Amends the Congressional Budget Act of 1974 to reform the budget process by requiring a joint resolution on the budget instead of the concurrent resolution on the budget. 
Title II:  Balanced Budget and Spending Restraints
 - Establishes a Federal spending limit of 21.5 percent of the gross domestic product for FY 1996 declining to 19 percent by FY 2002. 
Requires reduction of the maximum deficit amount to zero by FY 2002. 
Allows a waiver or suspension on the prohibition on exceeding the maximum deficit amount or the Federal spending limit by a three-fifths vote of both Houses. 
Prohibits the House or Senate from considering legislation that increases the public debt established by law for a fiscal year in excess of the Federal spending limit.  Allows a waiver or suspension on such prohibition by a three-fifths vote of both Houses. 
Establishes a point of order against any legislation that does not allocate savings derived from changes in social security benefits or revenues from social security tax increases to the social security trust fund.  Allows a waiver or suspension on such prohibition by a three-fifths vote of both Houses. 
Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to provide for a mid-year and end of the year sequester if any laws effective during the current year will cause the deficit to exceed the maximum deficit or the Federal spending limit.  Cancels budget authority sequestered at the end of the year permanently. 
Requires the President to submit a revised budget for FY 1996 that conforms to the spending limitations established in this Act. 
Makes the amendments and limits established by this title, and the procedures provided in Acts amended by this title, applicable to fiscal years beginning with FY 1996 and requires them to continue notwithstanding the termination of any Act setting forth such procedures.