April 5, 1976
Page 9330
ENFORCEMENT PROCEDURES UNDER SECTION 311 OF THE CONGRESSIONAL BUDGET ACT AND FISCAL YEAR 1976 BUDGET STATUS
Mr. MUSKIE. Mr. President, the Budget Committee has now reported the first concurrent resolution on the budget for fiscal year 1977, and floor action will commence within a few days.
Before that debate begins, I would like to discuss two important matters relating to the budget for fiscal year 1976 — the means for enforcing the binding totals in the second budget resolution and the status of the budget totals at this time.
The Congress as a whole and the Senate have made significant progress, far beyond the expectation of the drafters of the Budget Act, in our initial year of experience. When drafted, it seemed doubtful that the Budget Act could be implemented to any significant extent during fiscal 1976. In fact, it is fully operative. We have a second concurrent resolution on the budget for fiscal 1976 which does provide the spending and taxing limitations called for in the Budget Act. Any legislation which violates the spending ceiling or the revenue floor contained in the congressional budget is subject to a point of order which bars its consideration.
Today we are initiating an important feature of the new congressional budget process: That is, a system for advising the Senate on the status of the spending ceiling and revenue floor on an up-to-date basis. As I am about to describe, that system is necessary for the chair to be able to rule on points of order against spending or tax legislation which is offered for consideration in the Senate. A system identical to that which is being established for the information of the Senate has also been established in the House of Representatives.
Mr. President, the Budget Act imposes a special obligation on. the budget committees with regard to such advice. Section 311 of the Budget Act, under which a point of order will lie against legislation which would exceed the congressional budget limitations, also requires that, for purposes of such points of order, the information on which the ruling should be made is to be determined on the basis of estimates made by the Budget Committees of each House.
ENFORCEMENT PROCEDURES UNDER SECTION 311 OF THE CONGRESSIONAL BUDGET ACT
Section 311 of the congressional Budget Act provides that once the second budget resolution ceiling on total new budget authority or total outlays is reached, any Senator may raise a point of order against a bill, resolution, or amendment — including conference reports — which would cause the ceilings to be exceeded. Likewise, any measure which would result in reducing revenues below the second budget resolution revenue floor would also be subject to a point of order.
Let me state briefly the major elements of this new procedure:
The Budget Committee will provide the Senate Parliamentarian a written report showing the amount of room remaining within the spending ceilings or over the revenue floor for point-of-order purposes. A new report will be sent to the Parliamentarian whenever the numbers change. The latest report will supersede all earlier reports.
The dollar amounts used in calculating how much room is left in relation to the spending ceilings and revenue floor will consist of spending or revenue legislation that is already enacted or on which the conference report has been agreed to by both Houses, plus an amount for certain mandatory items where the budget authority and outlays are essentially locked in by entitlement legislation already on the books but where formal appropriation action has not been completed.
The Congressional Budget Office will be responsible daily for providing both the House and Senate Budget Committees with the budget authority, outlay, and revenue estimates used in this process. The amounts used by both Houses will be exactly the same.
Through this procedure, Mr. President, the Senate Parliamentarian should be able to evaluate any points of order that may be raised, using up-to-date information provided by the Budget Committee on the basis of the professional estimates of the Congressional Budget Office. This is an important and necessary procedure that should help us to implement the congressional budget process more effectively. The Budget Committee staff will be happy to assist the staff of any Senator or any Senate committee in answering questions they may have regarding this process:
I have a detailed paper which lays out the ground rules and procedures for implementing section 311 of the Budget Act, and I ask unanimous consent that it be printed in the RECORD following my remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See exhibit 1.)
Mr. MUSKIE. Finally, Mr. President, let me emphasize the differences between this system and the scorekeeping system which has been in place for several months:
This system tells us where we have been and when to stop.
The scorekeeping system tells us where we are going, so that we can discipline our choices and not be surprised when the spending ceilings or revenue floor are reached.
The cost estimates for a given piece of legislation are, of course, the same in both systems. But the scorekeeping system includes many pieces of legislation which are likely to be enacted but which are not yet at the conference agreement stage. Except for certain mandatory entitlement programs, these pieces of spending legislation on which action is incomplete are excluded from the point-of-order system. Furthermore, authorizing legislation which is tracked in the scorekeeping system is excluded from the point-of-order system.
Thus the amounts "remaining available" under the point-of-order system — which in the first report to the parliamentarian will show as $9.5 billion in budget authority, $3.5 billion in outlays, and $300 million in revenues — may actually be encumbered by forthcoming legislation which Congress fully expects to pass and which is within the limits Congress set for itself in the second budget resolution. The scorekeeping reports will continue, therefore, to be the vehicle for providing the Senate with information on the total budget situation.
FISCAL YEAR1976 BUDGET STATUS
Mr. President, I would also like to report on the overall status of the fiscal 1976 budget using the latest scorekeeping totals. Last December when the Congress adopted the second budget resolution, we used the best available estimates for fiscal year 1976 — including information furnished to us at that time by the Director of the Office of Management and Budget. Last January, however, when the President transmitted his fiscal year 1977 budget to the Congress, he also provided information on the status of the fiscal year 1976 estimates. A glance at these estimates indicated that changes apparently had occurred in areas outside of congressional control at the moment which would drive our previous estimates upward.
Both the House and the Senate Budget Committees asked the Congressional Budget Office to analyze this new information submitted by the President and give us CBO's professional judgment as to the proper estimates to use. CBO has now completed its analysis and has advised us that the estimates we had previously been using for fiscal year 1976 need to be increased by $4.7 billion in the case of budget authority and $ 700 million in the case of outlays. This means the fiscal 1976 budget totals — including spending legislation already enacted, on which action is under way in the Senate, or which has been requested or is likely to be requested by the President but not yet acted upon — now stand at $407.7 billion in budget authority and $374.2 billion in outlays. These amounts are respectively $300 million and $700 million under the spending ceilings established by the second budget resolution. These totals are now reflected in the weekly Senate budget scorekeeping reports.
The Congressional Budget Office is still analyzing the fiscal year 1976 revenue estimates. As soon as that analysis is completed, we will incorporate the results into the Senate scorekeeping reports.
Mr. President, the new budget authority and outlay totals I have just cited show that we have very little room left within the spending ceilings established by the second budget resolution. It is true that some savings may be realized as the Senate considers those items in the totals which are not yet reported. But at this stage of the fiscal year, these are few and they are small in relation to the budget totals. The Budget Committee staff estimates that savings on the order of $600 million in budget authority and outlays from the CBO estimates may be realized. If this estimate is correct, the budget authority and outlay totals would be, respectively, $900 million and $1.3 billion under the second budget resolution ceilings at this time.
As I indicated in my recent floor statement on the foreign assistance appropriations bill, there are several additional pieces of legislation that were assumed in the second budget resolution but which are not in these calculations which need to be kept in mind. If all of these additional possibilities come to pass, the second budget resolution ceilings could be exceeded by $5 billion in budget authority and $500 million in outlays. These estimates are slightly revised from my earlier statement to take account of subsequent congressional action.
Energy, health, and veterans legislation now under consideration may add $900 million in budget authority and $300 million in outlays to the totals.
Public service jobs, summer youth, and other legislation in the education, manpower, and social services area may add another $1.5 billion in budget authority and $900 million in outlays.
Public works and anti-recession assistance proposals could require $3.5 billion in budget authority and $600 million in outlays.
The fourth possibility that I mentioned in my earlier statement — $255 million in budget authority and $7 million in outlays for the Inter-American Bank bill — is included in the CBO's scorekeeping base because, though not yet enacted, it has been requested by the President.
Mr. President, the possible $500 million overage in outlays is within the range of estimating error, and hopefully will not be a problem. But on the budget authority side, we may need either to increase the second budget resolution ceiling or forego funding of many of these possible congressional initiatives. As I have previously pointed out, part of the problem on the budget authority side occurs because of the New York City aid package. In establishing the second budget resolution ceilings, we specifically did not include provision for assistance to New York City since that matter was not settled at the time. Since then, spending legislation amounting to $2.3 billion in budget authority has been enacted by Congress for that purpose. At the time of the second budget resolution, we pointed this problem out and indicated the possible need to consider a third budget resolution later in the year to accommodate this assistance.
Let me emphasize once again, Mr. President, that we are faced with this problem largely because of increases over which the Congress has little current control. The possible additional authorizations and appropriations I have mentioned were all assumed at the time of the second budget resolution. But the Congressional Budget Office analysis indicates that increases in budget authority have occurred in other budget areas where the administration had inadequately estimated the cost of existing programs. As far as congressional actions are concerned, we have closely followed the congressional budget that we set last December.
Mr. President, I will close by saying that I am as reluctant as anyone to raise the possibility of a third budget resolution. But I am equally reluctant to stand by and see the initiatives and priorities established by the Congress in its own budget process thwarted by changes that are beyond our control. As chairman of the Budget Committee, I will continue to speak on individual legislation that comes before the Senate and report periodically on the overall status of the fecal 1976 budget. I may well be required to speak and vote against legislation which could breach ceilings. If it appears that a third budget resolution may be necessary to carry out congressional priorities, I will bring the matter to the attention of the Senate so that we can consider the options fully.
EXHIBIT 1
GROUND RULES AND PROCEDURES FOR IMPLEMENTING SECTION 311 OF THE CONGRESSIONAL BUDGET ACT FOR FISCAL YEAR 1976
GROUND RULES
1. Budget Authority and Outlays. For point-of-order purposes, the amounts that are deducted from the budget authority and outlay ceilings to determine the "amount remaining" include budget authority and outlays occurring in FY 1976 from:
Spending legislation enacted in this or prior years, including the latest Continuing Resolution enacted this year figured at an annual rate (when a regular appropriation bill is enacted, the Continuing Resolution level is reduced accordingly).
Spending legislation where the Conference Report has been agreed to by both Houses (if such legislation is subsequently vetoed, the amounts stand until a veto override fails or until it is clear from the Leadership that a veto override will not be attempted; at that point, the amounts will be reduced to the Continuing Resolution level or dropped if the programs are not covered by the Continuing Resolution).
Entitlement authority for which appropriations are not yet enacted (this is included because the appropriation action yet to come is merely ratification of what is already an accomplished fact) .
2. Revenues. For point-of-order purposes, the amount from which the revenue floor is deducted to determine the "amount remaining" consists of the revenue occurring in FY 1976 from:
Revenue legislation enacted in this or prior years.
Revenue legislation where the Conference Report has been agreed to by both Houses (if such legislation is subsequently vetoed, the amounts stand until a veto override fails or until it is clear from the Leadership that a veto override will not be attempted; at that point, the effect of the bill in question will be removed from the revenue total).
3. Special Considerations. Additional rules for the point-of-order process are as follows:
Responsibility for the estimates. The Congressional Budget Office will be responsible for providing both Houses the budget authority, outlay, and revenue estimates used in this process, subject to consultation with the two Budget Committees as noted below.
Changes in the estimates due to formal Congressional or Presidential action will be tracked daily (or more often if necessary) by CBO.
"Reestimates"not related to formal Congressional or Presidential action. All of the numbers used in this process are estimates and therefore subject to change as later information is received. To make the process manageable, CBO will examine the budget authority, outlay, and revenue numbers at four specified times during the year to see if reestimates are necessary. The specified times are related to the points in the budget process when new information is likely to be available: in December after receipt of the President's current services estimates, in January/ February after receipt of the President's budget, in April after receipt of the President's first "Mid-Session Review" report, and in August after receipt of the President's second "Mid-Session Review" report. The CBO will consult both Budget Committees before making any numbers changes. Ad hoc reestimates between the specified dates will be undertaken by CBO only upon the request of either Budget Committee (both Budget Committees expect to hold such requests to a minimum). Both Budget Committees will be consulted on the results before CBO makes any numbers changes.
Rescissions proposed by the President will not be taken into account in the estimates until such time as the Conference Report on a rescission bill is agreed to in both Houses (i.e., rescissions will be treated like any other spending bill).
Deferrals proposed by the President will be taken into account in the estimates after they have been reviewed by the Budget Committees. CBO will consult with the two Budget Committee staffs before taking account of any deferral.
PROCEDURES
1. Each Budget Committee will provide the parliamentarian of its House advice on the status of the Second Budget Resolution spending ceilings and revenue floor. The advice will be in the form of a report (see Exhibit 1) which will normally be delivered to the parliamentarian before the daily session begins. Once a report is delivered to the parliamentarian, it will remain in effect until superseded by a subsequent report. Subsequent reports will be delivered only when the estimates change. It is likely that many of these reports may remain in effect for several days; however, during times of heavy legislative action more than one report a day may be needed.
2. To back up the Budget Committee report to the parliamentarian, the CBO will deliver to each Budget Committee daily when the House or Senate is in session and one hour before the session begins either (a) a report showing the status of the budget as of the previous evening or (b) a "negative" report indicating there is no change from the report last submitted. These reports will be signed by a responsible CBO official and will be retained as part of the official Budget Committee files.
REPORT TO THE PRESIDENT OF THE U.S. SENATE FROM THE COMMITTEE ON THE BUDGET ON THE STATUS OF THE FY 1976 CONGRESSIONAL BUDGET ADOPTED IN H. CON. RES. 466
Reflecting completed action as of —, 1976
[In millions of dollars] Second budget resolution level:
Budget authority 408,000
Outlays 374,900
Revenues 300,800
Current level:
Budget authority
Outlays
Revenues
BUDGET AUTHORITY
Any measure providing budget or entitlement authority which is not included in the current level estimate and which exceeds $__ million for fiscal year 1976, if adopted and enacted, would cause the appropriate level of budget authority for that year as set forth in H. Con. Res. 466 to be exceeded.
OUTLAYS
Any measure providing budget or entitlement authority which is not included in the current level estimate and which would result in outlays exceeding $__ million for fiscal year 1976, if adopted and enacted, would cause the appropriate level of outlays for that year as set forth in H. Con. Res. 466 to be exceeded.
REVENUES
Any measure that would result in a revenue loss exceeding $__ million for fiscal year 1976, if adopted and enacted, would cause revenues to be less than the appropriate level for that year as set forth in H. Con. Res. 466.