S. 3096 (111th): Economic Disaster Prevention Act of 2010

111th Congress, 2009–2010. Text as of Mar 10, 2010 (Introduced).

Status & Summary | PDF | Source: GPO

II

111th CONGRESS

2d Session

S. 3096

IN THE SENATE OF THE UNITED STATES

March 10, 2010

introduced the following bill; which was read twice and referred to the Committee on the Budget

A BILL

To prevent an economic disaster by providing budget reform.

1.

Short title

This Act may be cited as the Economic Disaster Prevention Act of 2010.

I

Spending Limits and Control

A

Spending limits

101.

Non-defense discretionary spending limits

(a)

Non-Defense discretionary spending limits

Section 251 of the Balanced Budget and Emergency Deficit Control of Act of 1985 is amended to read as follows:

(a)

Non-Defense discretionary spending limits

For each fiscal year set forth in this subsection, the total level of discretionary spending for non-defense discretionary spending programs, projects, and activities shall not exceed the following levels:

(1)

For fiscal year 2011, $552,000,000,000 in new budget authority.

(2)

For fiscal year 2012, $559,000,000,000 in new budget authority.

(3)

For fiscal year 2013, $567,000,000,000 in new budget authority.

(4)

For fiscal year 2014, $576,000,000,000 in new budget authority.

(5)

For fiscal year 2015, $588,000,000,000 in new budget authority.

(6)

For fiscal year 2016, $601,000,000,000 in new budget authority.

(7)

For fiscal year 2017, $615,000,000,000 in new budget authority.

(8)

For fiscal year 2018, $628,000,000,000 in new budget authority.

(9)

For fiscal year 2019, $642,000,000,000 in new budget authority.

(10)

For fiscal year 2020, $657,000,000,000 in new budget authority.

(b)

Sequence of sequestration reports

Within 15 calendar days after Congress adjourns to end a session and on the same day as a spending reduction ordered under section 252A, but prior to any spending reduction required by section 252A, OMB shall issue a final spending reduction report to reduce an excess spending amount.

(c)

Spending reduction order

A spending reduction ordered pursuant to subsection (b) shall be implemented using the procedures set forth in section 256.

.

(b)

Conforming amendment

The item relating to section 251 in the table of contents set forth in 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:

Sec. 251. Non-defense discretionary spending limits.

.

102.

Direct spending limits

(a)

Control of direct spending

The Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding after section 252 the following new section:

252A.

Direct spending limits

(a)

Direct spending limits

For fiscal year 2011 and each ensuing fiscal year through fiscal year 2020, the total level of direct spending for all direct spending programs, projects, and activities for any such fiscal year shall not exceed the total level of spending for all such programs, projects, and activities for the previous fiscal year after the direct spending for each such program, project, or activity is increased by the calculation made pursuant to section 257.

(b)

Sequence of sequestration reports

Within 15 calendar days after Congress adjourns to end a session and on the same day as a spending reduction ordered under sections 251, but after any spending reduction required by section 251, OMB shall issue a final spending reduction report to reduce an excess spending amount (if any remains).

(c)

Spending reduction order

A spending reduction ordered pursuant to subsection (b) shall be implemented using the procedures set forth in section 256.

.

(b)

Conforming amendment

The table of contents set forth in 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by amending the item relating to section 256 to read as follows:

Sec. 252A. Direct spending limits.

.

B

Reports and orders

111.

Reports and orders

Section 254 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:

254.

Reports and orders

(a)

Timetable

Date:Action to be completed:
5 days before the President's budget submissionCBO sequestration preview report.
President's budget submissionOMB sequestration preview report.
August 10CBO sequestration update report.
August 20OMB sequestration update report.
10 days after end of sessionCBO sequestration final report.
15 days after end of sessionOMB sequestration final report: Presidential order.
(b)

Submission and availability of reports

Each report required by this section shall be submitted to the Budget Committees of the House of Representatives and the Senate. On the following day a notice of the report shall be printed in the Federal Register.

(c)

Sequestration preview reports

(1)

Reporting requirement

On the dates specified in subsection (a), OMB and CBO shall issue a preview report regarding non-defense discretionary sequestration based on laws enacted through those dates.

(2)

Non-defense discretionary spending limit sequestration report

The preview reports shall set forth estimates for the current year and each subsequent year through 2019 of the applicable non-defense discretionary spending limits and an explanation of any adjustments in such limits under section 251.

(3)

Direct spending limit sequestration report

The preview reports shall set forth, for the current year and the budget year, estimates for each of the following:

(A)

The amount of total direct spending, if any, calculated under subsection 252A(b).

(B)

A list identifying each law enacted and sequestration implemented after the date of enactment of this section included in the calculation of the amount of deficit increase or decrease and specifying the budgetary effect of each such law.

(C)

The sequestration percentage or percentages necessary to eliminate a deficit increase under section 252A(c).

(4)

Explanation of differences

The OMB reports shall explain the differences between OMB and CBO estimates for each item set forth in this subsection.

(d)

Sequestration update reports

On the dates specified in subsection (a), OMB and CBO shall issue a sequestration update report, reflecting laws enacted through those dates, containing all of the information required in the sequestration preview reports.

(e)

Final sequestration reports

(1)

Reporting requirement

On the dates specified in subsection (a), OMB and CBO shall issue a final sequestration report, updated to reflect laws enacted through those dates.

(2)

Non-defense discretionary spending sequestration reports

The final reports shall set forth estimates for each of the following:

(A)

For the current year and each subsequent year the applicable non-defense discretionary spending limits for each category and an explanation of any adjustments in such limits under section 251.

(B)

For the current year and the budget year the estimated new budget authority and outlays for each category and the breach, if any, in each category.

(C)

For each category for which a sequestration is required, the sequestration percentages necessary to achieve the required reduction.

(D)

For the budget year, for each account to be sequestered, estimates of the baseline level of budgetary resources subject to sequestration and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions.

(3)

Direct spending report

The final reports shall contain all the information required in the direct spending sequestration preview report. In addition, the report shall contain, for the budget year, for each account to be sequestered, estimates of the baseline level of sequestrable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions. The report shall also contain estimates of the effects on outlays of the sequestration in each outyear for direct spending programs.

(4)

Explanation of differences

The OMB report shall explain any differences between OMB and CBO estimates of the amount of any net direct spending change calculated under section 252A, any excess deficit, any breach, and any required sequestration percentage. The OMB report shall also explain differences in the amount of sequesterable resources for any budget account to be reduced if such difference is greater than $5,000,000.

(5)

Presidential order

On the date specified in subsection (a), if in its final sequestration report OMB estimates that any sequestration is required, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.

(f)

Within-Session sequestration reports

If an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach, 10 days later CBO shall issue a report containing the information required in subsection (e)(2). Fifteen days after enactment, OMB shall issue a report containing the information required in subsections (e)(2) and (e)(4). On the same day as the OMB report, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.

(g)

GAO compliance report

Upon request of the Committee on the Budget of the House of Representatives or the Senate, the Comptroller General shall submit to Congress and the President a report on—

(1)

the extent to which each order issued by the President under this section complies with all of the requirements contained in this section, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not; and

(2)

the extent to which each report issued by OMB or CBO under this section complies with all of the requirements contained in this section, either certifying that the report fully and accurately complies with such requirements or indicating the respects in which it does not.

(h)

Low-Growth report

At any time, CBO shall notify Congress if—

(1)

during the period consisting of the quarter during which such notification is given, the quarter preceding such notification, and the 4 quarters following such notification, CBO or OMB has determined that real economic growth is projected or estimated to be less than zero with respect to each of any 2 consecutive quarters within such period; or

(2)

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 recently reported quarter and the immediately preceding quarter is less than one percent.

(i)

Economic and technical assumptions

In all reports required by this section, OMB shall use the same economic and technical assumptions as used in the most recent budget submitted by the President under section 1105(a) of title 31, United States Code.

.

112.

Spending limits enforcement

(a)

Conforming amendments to section 312

Section 312 of the Congressional Budget Act of 1974 is amended—

(1)

by striking subsection (a) and inserting the following:

(a)

Budget committee determinations

For purposes of this title, the levels of new budget authority, outlays, direct spending, deficits, revenues, and debt, or the increases or decreases of such levels for purpose of section 303, shall be determined on the basis of estimates made by the Committee on the Budget of the House of Representatives or the Senate, as applicable.

; and

(2)

by striking subsections (b) and (c) and redesignating subsections (d), (e), and (f) as (h), (i), and (j).

(b)

Enforcement amendments to section 312

Section 312 of Congressional Budget Act of 1974 is further amended by adding at the end the following new subsections after subsection (a):

(b)

Non-Defense discretionary spending limit point of order

It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, concurrent resolution, or conference report that—

(1)

causes the non-defense discretionary spending limits for the budget year to be breached;

(2)

increases the non-defense discretionary spending limits for the budget year or any ensuing fiscal year; or

(3)

includes any provision that has the effect of modifying the application of section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985.

(c)

Direct spending limit point of order

It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, concurrent resolution, or conference report that—

(1)

causes the direct spending limits for the budget year to be breached; or

(2)

increases aggregate level of direct spending for any ensuing fiscal year.

(d)

Sequestration application

It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, concurrent resolution, or conference report that—

(1)

includes any provision that has the effect of modifying the application of section 256 of the Balanced Budget and Emergency Deficit Control Act of 1985 to any program subject to sequestration or exempt from sequestration; and

(2)

includes any provision that has the effect of modifying the application of section 251 and 252A to any program subject to sequestration or exempt from sequestration.

(e)

Waiver or suspension

(1)

Senate

The provisions of this section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

(2)

House

The provisions of this section may be waived or suspended in the House of Representatives:

(A)

Only by a rule or order proposing only to waive such provisions by an affirmative vote of two-thirds of the Members, duly chosen and sworn.

(B)

It shall not be in order to consider a rule or order that waives the application of subparagraph (A).

(C)

It shall not be in order for the Speaker to entertain a motion to suspend the application of this section under clause 1 of rule XV of the Rules of the House of Representatives.

.

113.

Spending reduction orders

(a)

In general

Section 256 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:

256.

Spending reduction order

(a)

Application

A spending reduction order issued pursuant to this part shall apply to eliminate breaches of the limits set forth in sections 251 (non-defense discretionary spending limits) and 252A (direct spending limits).

(b)

Waiver or suspension

(1)

Senate

In the Senate, the provisions of this section may be waived or suspended in the Senate only by the affirmative vote of two-thirds of the Members, duly chosen and sworn.

(2)

House

In the House:

(A)

The provisions of this section may be waived or suspended in the House of Representatives only by a rule or order proposing only to waive such provisions by an affirmative vote of two-thirds of the Members, duly chosen and sworn.

(B)

It shall not be in order to consider a rule or order that waives the application of paragraph (1).

(C)

It shall not be in order for the Speaker to entertain a motion to suspend the application of this section under clause 1 of rule XV of the Rules of the House of Representatives.

(c)

General rules

(1)

Calculation of spending reduction percentage

OMB shall include in its final spending sequestration report a requirement that each nonexempt spending account shall be reduced by an amount of budget authority calculated by multiplying the baseline level of budgetary resources in that account at that time by the uniform percentage necessary to reduce outlays sufficient to eliminate an excess spending amount.

(2)

Exemptions

The following shall be exempt from reduction under any order issued under this section:

(A)

Payments for net interest.

(B)

Benefits payable under the old-age, survivors, and disability insurance program established under title II of the Social Security Act if—

(i)

OASDI Trust Funds are actuarially solvent in the 75-year period utilized in the most recent annual report of the Board of Trustees provided pursuant to section 201(C)(2) of the Social Security Act; and

(ii)

OASDI Trust Funds have not run a cash deficit in the fiscal year prior to the transmittal of the most recent Sequestration Preview Report.

(C)

Benefits provided to veterans defined as direct spending payable by the Department of Veterans affairs.

(D)

Obligated balances of budget authority carried over from prior fiscal years.

(E)

Any obligations of the Federal Government required to be paid under the United States Constitution or legally contractual obligations.

(F)

Provisions of spending legislation designated by the President, and so designated in statute, as an emergency, except an amount of budget authority and the outlays flowing therefrom so designated that is above the emergency reserve fund as calculated in section 317(b) of Congressional Budget Act of 1974 shall not be exempt.

(G)

Any program whose growth in the budget year is equal to or less than the consumer price index.

(H)

Intergovernmental transfers.

(3)

One-percent reduction limitation

No program shall be subject to a spending reduction of more than one percent of its budgetary resources.

(4)

Calculation of spending reduction

The percentage required to produce a spending reduction, as ordered by a spending reduction order, shall be calculated by OMB by adding all budgetary resources of the Government, and reducing that amount by an amount sufficient to reduce the total amount of outlays of the Government to equal, or lower, a level of outlays than the amount set forth in the guideline period.

(5)

Application

Once issued, a spending reduction shall be applied to nonexempt programs as follows:

(A)

Budgetary resources subject to a spending reduction to any non-defense discretionary account shall be permanently canceled.

(B)

The same percentage spending reduction shall apply to all programs, projects, and activities within a budget account (with programs, projects, and activities as delineated in the appropriation Act or accompanying report for the relevant fiscal year covering that account, or for accounts not included in appropriation Acts, as delineated in the most recently submitted President's budget).

(C)

Administrative regulations implementing a spending reduction shall be made within 120 days of the issue of a spending reduction order.

(6)

OASDI special procedures

If the OASDI Trust Funds are subject to sequestration, then payments from such Trust Funds shall be treated the same as other programs, except—

(A)

reductions from such Trust Funds shall not exceed one percent of the 75-year unfunded liability set forth in the most current Social Security Trustees Report;

(B)

reduction in individual benefits shall be implemented by increasing the Normal Retirement Age by an amount certified by the Social Security Office of the Chief Actuary;

(C)

the increase in the Normal Retirement Age shall not be applied to any beneficiary born in a year 55 years or before—

(i)

the year of the enactment of the Economic Disaster Prevention Act of 2010; or

(ii)

the year in which the final spending sequestration report is issued; and

(D)

no change in the Normal Retirement Age shall be made before it is fully phased-in under the Social Security Act as in effect before the date of enactment of the Economic Disaster Prevention Act of 2010.

(d)

Non-Defense discretionary spending sequestration

(1)

Eliminating a breach

Each nonexempt account shall be reduced by an amount of budget authority calculated by multiplying the baseline level of budgetary resources subject to sequestration in that account at that time by the uniform percentage necessary to eliminate a breach by—

(A)

first, calculating the uniform percentage necessary to eliminate a breach in new budget authority, if any; and

(B)

second, if any breach in outlays remains, increasing the uniform percentage to a level sufficient to eliminate that breach.

(2)

Emergency spending above the reserve fund

An amount of budget authority and the outlays flowing therefrom designated in statute as an emergency that is above level in the emergency reserve fund as calculated in section 317(b) of the Congressional Budget Act of 1974 shall count toward the non-defense discretionary spending limits.

(3)

Part-year appropriations

If, on the date specified in paragraph (1), there is in effect an Act making or continuing appropriations for part of a fiscal year for any budget account, then the dollar sequestration calculated for that account under paragraph (2) shall be subtracted from—

(A)

the annualized amount otherwise available by law in that account under that or a subsequent part-year appropriation; and

(B)

when a full-year appropriation for that account is enacted, from the amount otherwise provided by the full year appropriation.

(4)

Look-back

If, after June 30, an appropriation for the fiscal year in progress is enacted that causes a breach for that year, the non-defense discretionary spending limits for the next fiscal year shall be reduced by the amount of the breach.

(5)

Within-session sequestration

If an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach for that year (after taking into account any prior sequestration of amounts), 15 days later there shall be a sequestration to eliminate that breach following the procedures set forth in paragraphs (2) through (3).

(6)

Estimates

(A)

CBO estimates

As soon as practicable after Congress completes action on any non-defense discretionary appropriation, CBO, after consultation with the Committees on the Budget of the House of Representatives and the Senate, shall provide OMB with an estimate of the amount of non-defense discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation.

(B)

OMB estimates

Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any non-defense discretionary appropriation, OMB shall transmit a report to the House of Representatives and to the Senate containing the CBO estimate of that legislation, an OMB estimate of the amount of non-defense discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation, and an explanation of any difference between the two estimates.

(C)

Explanation of differences between omb and omb estimates

If OMB determines that there is a significant difference between OMB and CBO reports prepared pursuant to subparagraph (A) and (B), OMB shall consult with the Committees on the Budget of the House of Representatives and the Senate regarding that difference and that consultation shall include, to extent practicable, written communication to those committees that affords such committees the opportunity to comment before the issuance of the report.

(D)

Assumptions and guidelines

OMB estimates under this paragraph shall be made using current economic and technical assumptions. OMB shall use the OMB estimates transmitted to Congress under this paragraph. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House of Representatives and Senate Committees on the Budget, CBO, and OMB.

(E)

Annual appropriations

For purposes of this paragraph, amounts provided by annual appropriations shall include any new budget authority and outlays for the current year (if any) and the budget year in accounts for which funding is provided in that legislation that result from previously enacted legislation.

(7)

Non-defense discretionary sequestration limitation

If appropriations for a fiscal year do not require a sequester pursuant to the non-defense discretionary spending limits set forth in this Act, non-defense discretionary accounts shall not be subject to sequestration under section 252A.

.

(b)

Technical and conforming amendments

(1)

Repeals

Section 255 of the Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.

(2)

Conforming amendment

The item relating to section 256 in the table of contents set forth in section 250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:

Sec. 256. Spending reduction order.

.

II

Prohibition on new direct spending programs

201.

Prohibition on new direct spending programs

(a)

In general

It shall not be in order in the Senate or the House of Representatives to consider any bill, resolution, amendment, motion, conference report, or other provision that increases the level of direct spending for an existing program or creates new direct spending unless the provision provides that the increased or new direct spending expires 10 years after the effective date of such spending.

(b)

Waiver, suspension, and appeals

(1)

In the Senate

(A)

Waiver and suspension

The provisions of this section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

(B)

Appeals

Appeals in the Senate from the decisions of the Chair relating to any provision of this section shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the bill or joint resolution, as the case may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under this section.

(2)

In the House of Representatives

The provisions of this section may be waived or suspended in the House of Representatives:

(A)

Only by a rule or order proposing only to waive such provisions by an affirmative vote of two-thirds of the Members, duly chosen and sworn.

(B)

It shall not be in order to consider a rule or order that waives the application of subparagraph (A).

(C)

It shall not be in order for the Speaker to entertain a motion to suspend the application of this section under clause 1 of rule XV of the Rules of the House of Representatives.