< Back to H.R. 1109 (104th Congress, 1995–1996)

Text of the Capital Budgeting Act of 1995

This bill was introduced on March 2, 1995, in a previous session of Congress, but was not enacted. The text of the bill below is as of Mar 2, 1995 (Introduced).

Source: GPO

HR 1109 IH

104th CONGRESS

1st Session

H. R. 1109

To improve budgetary information by requiring that the unified budget presented by the President contain information which facilitates consideration of choices between spending which is consumption oriented, spending which is of a development character, and spending which is in the nature of a capital investment, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 2, 1995

Mr. THORNTON introduced the following bill; which was referred to the Committee on Government Reform and Oversight


A BILL

To improve budgetary information by requiring that the unified budget presented by the President contain information which facilitates consideration of choices between spending which is consumption oriented, spending which is of a development character, and spending which is in the nature of a capital investment, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Capital Budgeting Act of 1995’.

SEC. 2. STATEMENT OF FINDINGS AND PURPOSE.

    (a) STATEMENT OF FINDING- The Congress finds that--

      (1) the objective of enhancing long-term economic growth is not well served by a budget process focused on short-term results,

      (2) long-term economic growth depends not only upon a stable social, political, and economic environment and a higher level of national savings, but also upon a sound public infrastructure, an educated citizenry and workforce, an investment in research and the discovery of knowledge, and the harnessing of inventive genius into the workplace and marketplace,

      (3) the existing presentation of the Federal Budget obscures the distinctions between long-term capital investments, expenditures of a developmental character, and current operational spending, and

      (4) the public interest will be served by a Federal Budget presentation which presents information showing long-term effects of expenditures.

    (b) PURPOSE- It is the purpose of this Act to require that the unified budget present--

      (1) an operating budget, and

      (2) an investment budget divided into--

        (A) federally-owned capital, and

        (B) developmental investments,

    for each of the 3 major components of the budget (general, trust, and enterprise funds) in order to ensure a continued focus on the Government’s total financial operations, while providing better and more relevant information upon which to base both overall fiscal policy as well as program priorities within the Federal Budget.

SEC. 3. CAPITAL AND OPERATING BUDGETS.

    (a) IN GENERAL- Title 31, United States Code, is amended by inserting after section 1105 the following new section:

‘SEC. 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--

      ‘(A) an operating budget, and

      ‘(B) an investment budget divided into federally-owned capital and developmental investments.

    ‘(2) Operating and investment budgets shall be presented separately for unified funds, general funds, trust funds, and enterprise funds.

    ‘(b)(1) Actual, estimated, and proposed amounts shall be presented for unified funds, general funds, trust funds, and enterprise funds, and, at a minimum, shall contain:

      ‘(A) For the operating budget:

        ‘(i) Operating revenues.

        ‘(ii) Operating expenses.

        ‘(iii) Operating surplus/deficit before interfund transfers.

        ‘(iv) Interfund transfers.

        ‘(v) Operating surplus/deficit.

        ‘(vi) Federal expenditures financing the operating expenses of State and local governments.

      ‘(B) For the investment budget:

        ‘(i) For federally-owned capital: the office buildings, equipment, and other assets that are owned by the Government for use in its operations together with a showing how such assets will improve the efficiency and effectiveness with which government agencies carry out their missions.

        ‘(ii) For developmental investments (including grants and loans to non-Federal entities for improving physical infrastructure, research and development, and investment in human capital through education and training): the amounts to be invested together with a projection of how such investments will improve the prospects for higher rates of economic growth on the future.

    ‘(2) For both categories of investment budgets, the following information will be presented:

      ‘(A) Investment funds together with investment revenues.

      ‘(B) Financing requirements before interfund transfers.

      ‘(C) Interfund transfers.

      ‘(D) Projected effects upon economic growth.

    ‘(3) The investment budget shall represent only the major activities, projects, and programs which support the acquisition, construction, alteration, and rehabilitation of such investment assets and the major programs and activities which support nonmilitary research and development, education, and job training. All other activities, projects, and programs shall be represented in the operating budget.’.

    (b) CLERICAL AMENDMENT- The table of sections for chapter 11 of title 31, United States Code, is amended by inserting after the item relating to section 1105 the following new item:

      ‘1105A. Capital and operating budgets.’