merous spending decisions and relating them to the budget authority and outlay targets established in concurrent resolutions on the budget. Also, on or before February 15 of each year, it reports to the two Budget Committees on fiscal policy and national priorities for the fiscal year commencing on October 1 of that year. This report discusses alternative budget levels, in the aggregate, as well as for each major functional category of the budget. On or before January 15, CBO issues to Congress a report listing unauthorized programs and programs whose authorizations expire in the coming fiscal year. This report should also include authorizations of appropriations that have not been enacted for the ensuing fiscal year. The purpose of this requirement is to help Congress use the early months of the year to adopt authorizing legislation which must be in place before the thirteen regular appropriation bills can be considered. The Budget Act also directs the CBO Director to conduct continuing studies to enhance comparisons of budget outlays, credit authority, and tax expenditures.7 The CBO also prepares for each bill or resolution reported by any committee of Congress (except the Committee on Appropriations of each House) and conference reports, an estimate of cost which would be incurred in carrying out such legislation. It is also responsible for a description of each method for establishing a Federal financial commitment contained in such bill, resolution, or conference report that has been filed in either House. 8 The Balanced Budget and Emergency Deficit Control Act of 1985 placed additional responsibilities on CBO, outside the scope of the regular budget process. These duties provide that on August 20,9 the Directors of CBO and OMB issue a joint report to GAO on the deficit for the coming fiscal year. The Comptroller General reviews the report and makes a determination of deficit levels and all other sequestration calculations. He then sends a report to the President and Congress which sets forth the same items that are in the OMB/CBO report. The Act requires that a "second" snapshot of the deficit is made by CBO and OMB before they issue a revised report on October 5.10 Therefore, twice each fiscal year CBO and OMB take a snapshot of (1) spending and tax laws, and (2) economic, demographic, and other estimating factors and issue a report based upon that snapshot as the initial phase of the sequestration process. THE CONGRESSIONAL BUDGET PROCESS Title III of the Act includes a timetable for various phases of the congressional budget process, prescribing the actions to take place at each point. Title IV contains additional procedures relating to four types of "backdoor spending" authorities (contract, borrowing, 6 P.L. 99-177, section 221(a) changed the date of "April 1" to "February 15" to comport with the new budget process schedule. 7 See section 202(h), added by P.L. 99-177, Section 221(c). 8 P.L. 99-177 amended section 403 by adding section 403(a)(4) requiring this description. 9 January 15, 1986, for fiscal year 1986. 10 No procedure for a second look is applicable for fiscal year 1986. entitlement, and credit authority), which are important elements of the system. THE CONGRESSIONAL BUDGET TIMETABLE (SEE ALSO ATTACHMENT A) Following is a description of the elements of the congressional budget timetable set forth in Section 300 of the Act: On or before first Monday after January 3. Action to be completed President submits his budget to Congress. The President's budget is required to be submitted on or before the first Monday after January 3. Concurrently, with the annual budget submission, the President is required to submit a current services budget. The annual budget submitted by the President remains one of the major factors in the development of the congressional budget. Shortly after its submission, the two Budget Committees begin hearings on the budget, the economic assumptions upon which it is based, the economy in general, and national budget priorities. Participants at these hearings include administration officials, Members of Congress, representatives of various national interest groups, and other public and private parties. On or before February 15......... Action to be completed Congressional Budget Office submits report to Budget Committees. The Congressional Budget Office is required to submit its annual report to the Budget Committees on or before February 15. This report, described earlier in connection with CBO's duties, deals primarily with overall economic and fiscal policy and alternative budget levels and national budget priorities. On or before February 25......... Action to be completed and joint committees submit reports to Budget Committees. An important step in the budget process is the submission of the views and recommendations of all standing committees of the House and Senate. These reports are due February 25. These reports are important to the proper functioning of the budget process and, accordingly, are made mandatory by the Act. They provide the Budget Committees with an early and comprehensive indication of committee legislative plans for the next fiscal year. These reports contain views and estimates of new budget authority and outlays to be authorized in legislation under their jurisdiction which will become effective during the next fiscal year. On or before March 1...... Action to be completed Joint Economic Committee submits analysis of the current services budget. The Joint Economic Committee is directed to submit a report with its recommendations as to the fiscal policies that would be appropriate to achieve goals of the Employment Act of 1946, as amended. On or before April 1 Action to be completed Senate Budget Committee reports concurrent resolution on the budget to the Senate. April 1 is fixed by the Act as the deadline for the Senate Budget Committee to report its concurrent resolution on the budget. No such deadline exists for the House Budget Committee. On or before April 15. Action to be completed Congress completes action on concurrent resolution on the budget. Congress is required to complete action by April 15 of each year on a concurrent budget resolution. The budget resolution sets forth appropriate budgetary levels for the coming fiscal year and planning levels for the two ensuing fiscal years, including aggregate levels for total new budget authority, budget outlays, direct loan obligations, primary loan guarantee commitments, revenues, the surplus or deficit, and the public debt. The budget resolution also sets forth the recommended amount by which revenues should be changed and includes a distribution of total new budget authority, budget outlays, direct loan obligations, and primary loan guarantees among functional categories representing major program areas of Federal budgetary activity. Attachment E contains a copy of the conference report to accompany The First Concurrent Resolution on the Budget for Fiscal Year 1986. In addition, the report on the resolution compares the Budget Committee's revenue estimates and budget authority and outlay levels with the estimates submitted in the President's budget and the CBO analysis of the President's budget. It also identifies the recommended sources of revenues; presents the economic assumptions and objectives of the resolution; allocates budget authority, outlays, and credit authority to committees of jurisdiction from the resolution's aggregate levels; and indicates significant changes, if any, in Federal aid to States and localities. Beginning with the Concurrent Resolution on the Budget for Fiscal Year 1987, only one budget resolution is required. Budget authority and outlays established for each of the major functional categories, as well as for the five major budget aggregates-revenues, budget authority, outlays, deficit, and public debt are binding ceilings. Aggregate ceilings for direct loan obligations and loan guarantee commitments are also included. These budget ceilings, which represent a congressional determination of appropriate fiscal policy and national budget priorities, guide the Congress in its subsequent spending and revenue decision. With the adoption of the concurrent budget resolution, discussed below, the aggregate budget authority and outlay levels become binding ceilings, and the revenue level becomes a binding floor. Following adoption of the budget resolution, the Budget Committee, aided by the CBO, provides up-to-date scorekeeping reports to inform Members as to how congressional action on spending and revenues compare with the budget aggregates and functional ceilings in the resolution. A new point of order is created against consideration of a budget resolution, amendments, and conference report, if the effect of such measure would be to produce a recommended level of deficit for a fiscal year which exceeds the maximum deficit amount for that year. In the House, this point of order, insofar as it applies to conference reports and amendments in disagreement, can only be waived by a vote of three-fifths of the Members present and voting, a quorum being present. April 15 is a key date in the congressional process. It is the deadline for the adoption of the budget resolution by the Congress, and prior to its adoption, neither House may consider any revenue, spending, entitlement, credit, or debt legislation. The only measures permitted to be considered prior to the adoption of the budget resolution are those involving advance budget authority or changes in revenues which first become effective following the fiscal year dealt with the budget resolution. However, after May 15, any general appropriation bill can be taken up for consideration in the House, even in the absence of a budget resolution. The Act provides special procedures for House consideration of the budget resolution and conference reports on such resolutions. Floor consideration may begin only after a five-day layover period so that Members may have a full opportunity to study the resolution and the accompanying report. Consideration is in the Committee of the Whole, with 10 hours allowed for general debate and amendments considered under the five-minute rule. Amendments must be mathematically consistent and must contain all aggregate and functional totals required by the Act. A motion to recommit the resolution is not in order, nor is a motion to reconsider. Of course, the Rules Committee may provide a rule addressing debate time, amendments, motions, etc. regarding consideration of a particular budget resolution or conference report. If the House and Senate conferees are unable to agree on a budget resolution after seven days, they must report to their Houses recommending all matters in agreement and reporting all matters in disagreement. Debate on the conference report on the resolution in the House is limited to five hours; and again, motions to recommit or to reconsider are not in order. In addition to the various matters required to be included in the resolution, the Act also provides for important material to be included in the joint statement of managers accompanying the conference report. The joint statement must make an allocation (commonly known as the section 302(a) allocation) of total budget authority, outlays, entitlement authority, and credit authority contained in the resolution among the appropriate committees to the House and Senate. For example, if the conference report allocates $7 billion in budget authority and $6 billion in outlays for the functional category "Community and Regional Development," the statement of managers must divide those amounts among the various committees of the House and Senate with jurisdiction over programs and covered by that functional category. Each committee to which an allocation is made must, in turn, further subdivide its allocation (section 302(b) subdivisions) among its subcommittees or programs, and "as soon as practicable" report such subdivisions to the House. All amounts-budget authority, outlays, entitlement authority, and credit authority-are allocated in two separate components: "Current Level" and "Discretionary Action." Current level refers to existing permanents, entitlements, "prior-year" outlays from discretionary appropriations, and direct loans made as a result of defaults on loan guarantees. Discretionary action refers to all amounts assumed in the budget resolution, but not yet enacted into law for "direct spending" legislation and for 1987 discretionary appropriations. The term "discretionary action" corresponds to "new discretionary budget authority," new credit authority, and "new spending authority described in section 401(c)(2)(C)," i.e., new entitlement authority. There is only one target for discretionary action entitlement authority, applying to all entitlement legislation whether funded through Federal, revolving, or trust funds. The discretionary action allocation of budget authority, outlays, entitlement authority, and credit authority would include any assumed legislative increase or decrease to existing permanent or entitlement law, and all new discretionary appropriations for the ensuing fiscal year. This category covers the spending and credit bills that Congress will consider following adoption of the budget resolution. After May 15.................... Action to be completed Annual appropriation bills may be considered in the House. General appropriation bills may be considered in the House after May 15, even if a budget resolution for the ensuing fiscal year has yet to be agreed to. On or before June 10............. Action to be completed House Appropriations Committee reports last annual appropriation bill. After Congress has adopted a budget plan, it proceeds to work on specific spending and revenue measures. The timetable sets June 10 as the deadline for the House Appropriations Committee to report the last annual appropriation bill. On or before June 15................. Congress completes reconciliation. June 15 is the date for completion of the reconciliation process, the final phase of the budget process. The Congress may not adjourn for more than three calendar days during the month of July until the House of Representatives has completed action on the reconciliation legislation. Furthermore, after adoption of the budget resolution, it is not in order in either House to consider any new spending legislation that would cause the aggregate levels of total budget authority or outlays adopted in that resolution to be exceeded, nor to consider a measure that would reduce total revenues below the levels in the resolution. A point of order would lie against legislation that caused the appropriate allocation of new discretionary budget authority or new entitlement authority made pursuant to 302(b) for such fiscal year, for the committee within whose jurisdiction such legislation falls, to be exceeded. Of course, Congress may adopt a revision of its most recent resolution at any time during the fiscal year. |