revert to the Treasury-thus there may be another lag (in some cases years) before the contractual_commitment is fulfilled and cash is actually withdrawn from the Treasury as a result (see OUTLAYS). During this latter period, the funds are obligated balances. Unexpended balances are the sum of obligated and unobligated bal

ances.

OFF-BUDGET:

Government programs and agencies that are off-budget have this status by virtue of their authorizing statute, which simply provides that their transactions shall not be counted within the budget totals of the U.S. Government. Were it not for their authorizing statute, they would be counted on-budget like all other programs. The Gramm-Rudman Act moved previously off-budget accounts on budget and moved Social Security off budget. Historically, BUDGET RESOLUTIONS dealt only with on-budget spending, while dealing with total (on- and off-budget) DEBT. In the fiscal year 1986 budget resolution, however, the distinction between onand off-budget programs was eliminated; in effect, all programs were counted on-budget. Off-budget agencies are not exempt from the provisions of the Impoundment Control Act.

OFFSETTING RECEIPTS AND COLLECTIONS:

Payments to (rather than by) an agency or the Treasury are, with the exception of REVENUES, called OFFSETTING RECEIPTS or OFFSETTING COLLECTIONS. These are of three main types:

• Loan repayments, which are received by an agency and may be used to make new loans. (See CREDIT and FUNDS.) These are offsetting collections and are netted against new loans, thus offsetting OBLIGATIONS and OUTLAYS, and often reducing the amount of BUDGET AUTHORITY that is needed.

• User fees that are received as a result of specific business-type relationships between a private individual and the Government. An example is the national park entrance fee. If the fee goes into the general fund of the Treasury, it is called a proprietary receipt; if it goes to a specific agency and budget account it is called an offsetting collection. Proprietary receipts are scored as an offset to BUDGET AUTHORITY, OBLIGATIONS, and OUTLAYS (i.e., as negative). Note also that some user fees

are revenues.

● Intragovernmental receipts are a bookkeeping device. When money flows from one Federal agency to a second, there is no payment to the public. Since the spending from the first agency is scored by it as BUDGET AUTHORITY, OBLIGATIONS, and OUTLAYS, those amounts must be offset. In most such cases funds flow from agency A to agency B to the public. Both agencies score BUDGET AUTHORITY, OBLIGATIONS, and OUTLAYS, so there is double-counting, which the intragovernmental receipt offsets. The amount of the intragovernmental receipt equals the OUTLAYS outflow from agency A, and it is scored in that amount as an offset to aggregate BUDGET AUTHORITY, OBLIGATIONS, and OUTLAYS.

ONE-YEAR APPROPRIATION-See APPROPRIATION.

OUTLAYS:

Outlays occur "when checks are issued or cash disbursed" by the U.S. Treasury to the public (after netting out intragovernmental transactions). However, payments of principal on Treasury borrowings are not counted. (Payments of interest are counted.) OUTLAYS occur as a result of OBLIGATIONS, which in turn resulted from BUDGET AUTHORITY.

• New outlays refer to outlays that, in a given FISCAL YEAR, flow from new BUDGET AUTHORITY for that year.

Prior-year outlays, technically "outlays from prior-year budget
authority" flow from BUDGET AUTHORITY that was new in
some previous FISCAL YEAR. The outlays occur in a later
year either because the BUDGET AUTHORITY was not OBLI-
GATED until the later year, or else because it was OBLIGAT-
ED but not expended. Thus BUDGET AUTHORITY measures
new funds entering the Federal pipeline in a FISCAL YEAR
while OUTLAYS measure the funds flowing from the end of
the pipeline in the same year.

PERMANENT APPROPRIATION-See APPROPRIATION.
PROPRIETARY RECEIPTS-See OFFSETTING RECEIPTS.
REAPPROPRIATION-See APPROPRIATION.
REPROGRAMMING-See APPROPRIATION.

RESCISSION-See IMPOUNDMENT, APPROPRIATION.
REVENUES:

This term is a synonym for "receipts" as used by OMB. The latter term is best avoided so as to clearly distinguish revenues from OFFSETTING RECEIPTS. Revenues are cash income to the Treasury other than borrowing and PROPRIETARY RECEIPT. Thus revenues are the amounts raised by taxes, fees, imports, duties, etc. pursuant to Article I, Section 8 of the Constitution. They are a function of the sovereign power of the Government. They flow into the Treasury, where some are diverted to trust funds (or minor special funds) and the rest go to the general fund. Some revenues are considered to be user fees, if they are narrowly based and are closely related to a class of user of Government services.

REVOLVING FUNDS-See FUNDS.

SEQUESTRATION:

This term refers to the automatic formula reduction of BUDGETARY RESOURCES that may be required by the Gramm-Rudman Act. It occurs, once each fiscal year, if and only if the Directors of CBO and OMB project (and the Comptroller General agrees) that the MAXIMUM DEFICIT AMOUNT for the coming FISCAL YEAR will be exceeded by more than a specified cushion. The cushion is zero in fiscal year 1986 and 1991, and $10 billion in fiscal years 1987-1990. The formula exempts a list of specified programs

(e.g., interest, Social Security); it limits the amounts by which specified programs may be reduced (e.g., Medicare, indexed retirement and disability programs); it provides that, after retirement COLAS are frozen, all remaining outlay savings from sequestration must come equally from nondefense and defense programs. To the extent possible after applying the above rules, all programs receive equal percentage reduction in their BUDGETARY RESOURCES.

SPENDING See OUTLAYS.

SPENDING AUTHORITY:

At its broadest, spending authority refers to BUDGET AUTHORITY and ENTITLEMENT AUTHORITY. The BUDGET ACT defines two special types of BUDGET AUTHORITY, CONTRACT AUTHORITY and BORROWING AUTHORITY, but any APPROPRIATION bill or DIRECT SPENDING bill providing FEDERAL FUNDS results in BUDGET AUTHORITY. DIRECT SPENDING may also occur from TRUST or REVOLVING FUNDS. The term also refers to ENTITLEMENT AUTHORITY.

SPENDING BILL:

Any bill or joint resolution affecting the existing level of new BUDGET AUTHORITY or ENTITLEMENT AUTHORITY (if any) for a given fiscal year. A bill is considered a spending bill even if the net BUDGET AUTHORITY or ENTITLEMENT AUTHORITY is zero, if the bill is a spending bill with regard to an individual budget account. Thus, if a bill increases BUDGET AUTHORITY or ENTITLEMENT AUTHORITY to some accounts, and decreases it to others, netting to zero, it is still considered a SPENDING BILL. In general, a bill cannot affect OUTLAYS without also being a spending bill. However, the exception is a bill that affects the timing or use of existing BUDGET AUTHORITY within a budget account, without affecting its amount. Examples are: a resolution overturning a deferral; a bill providing or changing an obligation or administrative limitation on a trust fund; a bill reprogramming funds within an account; a committee funding resoluton. None of these is a SPENDING BILL.

SPENDOUT RATE:

The rate at which new BUDGET AUTHORITY is converted into OUTLAYS. The spendout rate is usually expressed as an annual percentage, e.g., first year equals 30 percent, second year equals 45 percent, and third year equals 25 percent. This means that 30 percent of the new BUDGET AUTHORITY for 1987 can be expected to be spent in that year, 40 percent in 1988, and the remaining 25 percent in 1989.

SUBDIVISION:

Section 302(a) of the ACT requires a CROSSWALK of BUDGET AUTHORITY, OUTLAYS, CREDIT AUTHORITY, and ENTITLEMENT AUTHORITY to each committee of the House of amounts in a BUDGET RESOLUTION. When the amount allocated to a committee is further divided (as among subcommittees) pursuant to Section 302(b) of the ACT, SUBDIVISIONS are produced. These are

then considered the targets against which spending and credit are measured. The DISCRETIONARY ACTION targets for BUDGET, CREDIT, and ENTITLEMENT AUTHORITY are enforced by point of order.

SUPPLEMENTAL APPROPRIATION-See APPROPRIATION.
SURPLUS-See MARGIN.

TERM:

Term (or "term of availability") refers to the period of time in which unobligated balances of BUDGET AUTHORITY may remain available without lapsing or expiring. In general, both permanent and regular appropriations are one-year-if they are not obligated during the BUDGET YEAR, they lapse. But BUDGET AUTHORITY may be multi-year or no-year, as specified by statute. TRANSFER-See APPROPRIATION.

TRUST FUNDS-See FUNDS.

UNCONTROLLABLE-See CONTROLLABILITY.

UNOBLIGATED BALANCES-See OBLIGATIONS.

YEAR:

In Federal budgeting, "year" customarily refers to the Fiscal Year, that is, the twelve-month period starting on October 1 and ending on the following September 30. This is the accounting period for the Federal Budget. The fiscal year begins one quarter before the calendar year, e.g., fiscal year 1986 runs from October 1, 1985, to September 30, 1986. In this document, all years are fiscal unless otherwise specified. The Budget Year is the coming fiscal year, toward which most planning and legislative activity is directed. The Current Year is the fiscal year already in progress-in theory, at least, virtually all planning and legislative activity for the current year is complete.

Because economic forecasts and data are usually prepared on a calendar year basis, the economic assumptions behind a budget resolution are generally presented by calendar years. ·

ATTACHMENT "G"

HOUSE RULES RELATING TO THE BUDGET ACT

Rule XXIII, c1. 8, House Rules and Manual, Ninety-Ninth Congress, section 876(a):

At the conclusion of general debate in a Committee of the Whole on any concurrent resolution on the budget pursuant to section 305(a) of the Congressional Budget Act of 1974, the concurrent resolution shall be considered as having been read for amendment. It shall not be in order in the House or in a Committee of the Whole to consider an amendment to a concurrent resolution on the budget, or any amendment to an amendment thereto, unless the concurrent resolution as amended by such amendment or amendments (a) would be mathematically consistent (except to the extent that the amendment involved is limited by the third sentence of this clause); and (b) would contain all the matter set forth in subparagraphs (1) through (5) of section 301(a) of the Congressional Budget Act of 1974. It shall not be in order in the House or in a Committee of the Whole to consider an amendment to a concurrent resolution on the budget, or any amendment to an amendment thereto, which changes the amount of the appropriate level of the public debt set forth in the concurrent resolution as reported; except that the amendments to achieve mathematical consistency which are permitted under section 305(a)(6) of the Congressional Budget Act of 1974 may include an amendment, offered by or at the direction of the Committee on the Budget, to adjust the amount of such level to reflect any changes made in the other figures contained in the resolution.

Rule XLIX, House Rules and Manual, Ninety-Ninth Congress, section 945:

RULE XLIX

ESTABLISHMENT OF STATUTORY LIMIT ON THE PUBLIC DEBT

1. Upon the adoption by the Congress (under section 301 or 304 of the Congressional Budget Act of 1974) of any concurrent resolution on the budget setting forth as the appropriate level of the public debt for the period to which such concurrent resolution relates an amount which is different from the amount of the statutory limit on the public debt that would otherwise be in effect for such period, the enrolling clerk of the House of Representatives shall prepare an engrossment of a joint resolution, in the form prescribed in clause 2, increasing or decreasing the statutory limit on the public debt. The vote by which the conference report on the concurrent resolution on the budget was agreed to in the House (or by which the concurrent resolution itself was adopted in the House, if there is no conference report) shall be deemed to have been a (179)