October 9, 1975
Page 32881
THE SENATE BUDGET COMMITTEE'S SECOND REPORT PURSUANT TO SECTION 906 OF THE CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974
Mr. MUSKIE. Mr. President, the Senate Budget Committee yesterday filed a second report — Senate Report 94-422 — pursuant to section 906 of the Congressional Budget and Impoundment Control Act of 1974 to establish an approximate timetable for consideration and adoption of the second concurrent resolution on the budget for fiscal 1976 and for completion of a reconciliation process, if mandated by the budget resolution. This report also reviews the purposes and procedures associated with the second budget resolution and any subsequent reconciliation process and discusses briefly certain provisions of the Budget Act applicable with respect to fiscal year 1977. A similar report has been filed by the House Budget Committee.
The Senate Budget Committee's first report pursuant to section 906 of the Budget Act (S. Rep. No. 94-27, 94th Cong., 1st Sess., 1975), filed on March 5,1975, implemented significant portions of the Budget Act for fiscal year 1976. As a result, the Congress passed a first concurrent resolution on the fiscal 1976 budget (H. Con. Res. 218) on May 14, 1975.
The March reports of the two budget committees cautioned that the dates for consideration of the second concurrent resolution might have to be modified "if a significant portion of spending legislation is not completed by Labor Day."
Since the second concurrent resolution on the budget establishes firm ceilings on all budget authority, outlay, and public debt legislation, and sets a minimum revenue level against which subsequent revenue legislation must be measured, it is important that, to the extent possible, all significant spending and revenue legislation be passed by both Houses prior to adoption of the second resolution.
In view of the current pace of congressional action, this report sets forth a revised timetable for the second resolution and reconciliation process. The budget committees expect to report a budget resolution to their respective houses on approximately November 1, a date which would permit final adoption of the budget resolution and completion of any reconciliation process, should it be necessary, before the close of the congressional session. We hope that the second concurrent resolution can be adopted by November 20.
This report also implements section 310(f) of the act, which prohibits adjournment sine die before adoption of the second budget resolution and completion of any subsequent reconciliation process.
Finally, this report explains that section 303(a) of the Budget Act precludes consideration of spending and revenue legislation first applicable to fiscal year 1977 until after adoption of the first concurrent resolution on the budget on or before May 15, 1976. The report also points out that the Budget Committee is authorized under section 303(c) of the Budget Act to recommend a waiver in appropriate cases permitting such legislation to be considered in advance of the first concurrent resolution.
We are grateful for the support we have received from the members of this body, from the chairmen of its committees, and from the leadership on both sides of the aisle as we have implemented various provisions of the Budget Act. We are hopeful that this support will continue as we begin our consideration of the second concurrent resolution.
I ask unanimous consent that the full report be printed in the RECORD.
There being no objection, the report was ordered to be printed in the RECORD, as follows:
IMPLEMENTATION OF NEW CONGRESSIONAL BUDGET PROCEDURES FOR FISCAL YEAR 1976
TIMETABLE FOR THE SECOND BUDGET RESOLUTION AND RECONCILIATION PROCESS
(S. Rept. 94-422)
I. Purpose of the report
This report, submitted pursuant to Section 906 of the Congressional Budget and Impoundment Control Act of 1974, is intended to establish a timetable for consideration and adoption of the second concurrent resolution on the budget for fiscal year 1976 and for completion of a reconciliation process, if mandated by the budget resolution. In addition, the report reviews the purposes and procedures associated with the second budget resolution and any subsequent reconciliation process, and discusses briefly certain provisions of the Act applicable to the budget process with respect to fiscal year 1977. A similar report is being filed by the House Budget Committee.
II. Timetable for the second budget resolution and reconciliation process
The Congressional Budget and Impoundment Control Act of 1974 provides for the full implementation of the new congressional budget process with respect to new legislation pertaining to fiscal year 1977, which begins on October 1, 1976. Section 906 of the Act authorized the optional application of the new process to fiscal year 1976 upon agreement of the House and Senate Budget Committees and to the extent provided by them in reports to their respective Houses. In accord with this provision, the Senate and House Budget Committees reported an implementation plan for fiscal year 1976 in March of 1975. (S. Rep. No. 94-27 and H. Rep. 94-25, 94th Cong., 1st Sess., 1975).
In their March implementation plans, the Budget Committees did not implement two key intermediate steps in the congressional budget process: (i) the reporting of authorizing legislation by May 15 (Section 402) and (ii) completion of action on spending measures by mid-September (Section 304). This decision was based on reliable indications from House and Senate Committees that the deadlines could not be met, largely because fiscal year 1976 began on July 1, 1975, too soon to complete the authorization and appropriation process prior to the commencement of the fiscal year. (Under the Budget Act, the fiscal year will commence on October 1 in 1976 and all years thereafter.)
Although the Budget Committees strongly urged "rapid action on both authorizing and spending legislation," the committees cautioned in their March reports "that it may be impracticable to proceed to a second resolution and reconciliation in accordance with the above dates (September 15 and 25, respectively) if a significant portion of spending legislation is not completed by Labor Day, and that it may be necessary to modify these dates."
Since the second concurrent resolution on the budget establishes firm ceilings on all budget authority, outlay, and public debt legislation for the fiscal year, and sets a minimum revenue level against which subsequent revenue legislation must be measured, it is important that, to the maximum possible extent, all significant spending and revenue legislation be passed by both Houses prior to adoption of the second resolution.
In view of the current pace of congressional action, the House and Senate Budget Committees have established a revised timetable for the second resolution and reconciliation process. The Budget Committees expect to report a budget resolution to their respective Houses on approximately November 1, a date which would permit final adoption of the budget resolution and completion of any reconciliation process, should it be necessary, before the close of the congressional session. This report implements Section 310(f) of the Act, which prohibits adjournment sine die before adoption of the second budget resolution and completion of any subsequent reconciliation process.
III. The second budget resolution
The first concurrent resolution on the budget (H. Con. Res. 218, adopted on May 14 of this year) established overall revenue, spending, and debt targets for the 1976 fiscal year. The resolution did not contain budget authority and outlay figures by functional category of the budget, as will be required in future years, but the derivation of the aggregate numbers from functional targets used by the Budget Committees was explained in the committee reports and Statement of Managers accompanying the conference report. As action has proceeded during the course of this session on budget-related legislation, Congress has utilized the scorekeeping reports issued by the Congressional Budget Office, as well as estimates prepared by each of the Budget Committees, to keep informed on the status of all of the targets.
The second budget resolution will fix ceilings which shall be applicable to all subsequent revenue, debt, and spending legislation. Once the second resolution has been adopted, Congress cannot take any action which will increase aggregate spending above the level specified in the second resolution or reduce revenues below the level specified in the resolution. Throughout the remainder of the 1976 fiscal year, Congress will have the option to adjust these ceilings in other budget resolutions, if circumstances require it.
The second resolution for fiscal year 1976 will have the same format as the resolution adopted last May. It will deal only with budgetary aggregates and not functional category breakdowns, although the totals for each function will be explained in committee reports.
Through the second budget resolution, Congress can require legislation to be adopted which conforms revenue, spending, and debt legislation with the determinations made in adopting the resolution. This reconciliation process will take place only if it is necessary to revise existing (or pending) legislation to achieve the spending and revenue levels set in the second budget resolution. If the second concurrent resolution requires reconciliation actions solely within the jurisdiction of one committee of the Senate, that committee will report its reconciliation bill or resolution directly to the Senate. Should more than one committee be required to report changes, Section 310(c) of the Congressional Budget Act requires that the changes be submitted to the Senate Budget Committee which in turn reports such changes to the Senate.
IV. Application of the congressional budget process to fiscal year 1977
Section 905 of the Congressional Budget Act mandates full implementation of the congressional budget process with respect to new legislation pertaining to fiscal year 1977, which commences October 1, 1976. This implementation is a matter over which the law gives the Budget Committee no discretion.
The Committee believes that this report provides a useful opportunity to review briefly some of the most important of the new budget procedures, especially those which affect other standing committees of the Senate.
Although the Act does not specify a date upon which the new process takes effect with respect to fiscal year 1977, the Committee believes that any legislation affecting the 1977 budget is governed by Section 905.
The most important provision of the Budget Act in this context is Section 303 (a) of the Act, which prohibits the consideration of revenue, spending, or debt legislation with respect to any fiscal year before the first budget resolution for that year has been adopted. Hence, the Budget Act precludes consideration of spending and revenue legislation first applicable to fiscal year 1977 until after adoption of the First Concurrent Resolution on the Budget on or before May 15, 1976.
The Committee recognizes that some committees may not have been aware of this cut-off date and that they are well along in the formulation of legislation first applicable to fiscal 1977 which they plan to have considered prior to May 15, 1976, the date by which the First Concurrent Resolution for fiscal 1977 will be adopted. These committees have proceeded in good faith and without any intent to circumvent the congressional budget process. The Budget Committee is authorized under Section 303(c) to recommend a waiver in appropriate cases permitting such legislation to be considered in advance of the First Concurrent Resolution on the Budget next May 15.
Other notable provisions of the Budget Act now in effect by operation of law include:
On November 10th of this year, the President is required to submit his Current Services Budget for fiscal year 1977, to be followed by his full budget proposals 15 days after Congress meets next January. (Sec. 605). On or before March 15th, each standing committee of the Senate must submit to the Committee on the Budget estimates of the amounts of new budget authority and budget outlays which may be contained in spending legislation intended to be effective in the coming fiscal year. This procedure was also in effect this year. (Sec. 301(c) ).
Section 302 (a) and (b) provide the "cross-walking" procedures under which committees having jurisdiction over spending authority will translate the budget targets of the First Budget Resolution into amounts to be included in their spending legislation. Section 302 (a) requires that the Statement of Managers accompanying the conference report on the First Budget Resolution will include an estimated allocation of budget authority and outlays among House and Senate Committees which have jurisdiction over spending legislation. Section 302(b) directs that the Committees on Appropriations will further subdivide the amount allocated to them in the Statement of Managers among their various subcommittees. Section 302 (b) (2) directs that all other committees to which an allocation was made in the First Budget Resolution will make a similar subdivision among subcommittees. In this way, the translation or "crosswalk" between the functional targets of the Budget Resolution and the regular appropriations bills and other spending legislation will be made.
Section 308(a) requires that committees which report legislation providing new budget authority or new or increased tax expenditures include in the report accompanying such legislation a comparison of the new budget authority or tax expenditures with the figures in the Budget Resolution, as well as five-year projections for outlays or tax expenditures which will result.
Finally, the Budget Act provides two procedures which may alter, in some respects, the handling of spending legislation. First, Section 307 of the Budget Act provides that before the House Appropriations Committee can report its first regular appropriations bill it must, to the extent practicable, complete subcommittee mark-up and full committee action on all regular appropriations bills and provide to the House of Representatives a summary of its actions. Thus, before taking up any appropriations bills, the Congress will have before it an initial comparison between the likely contents of all appropriations bill and the "crosswalk" figures of the Budget Resolution.
Additionally, Section 301(b) (1) provides an optional procedure which can be implemented in a first concurrent budget resolution. Under this procedure, spending legislation which has been passed by the Congress shall not be enrolled and shall be held at the desk until the Second Concurrent Resolution and any necessary reconciliation process have been completed. In this way, the process of reconciliation can be accomplished by means of a resolution which directs the Clerk of the House or the Secretary of the Senate to make changes in these unenrolled bills.
The Committee has in preparation a series of briefing papers which it hopes will be useful to other committees in meeting the requirements of the Budget Act.