Returning to Responsible Fiscal Policies Act - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to require: (1) the Office of Management and Budget (OMB) to estimate the Gross Domestic Product (GDP) outlay limit for the target fiscal year at the outset of the previous fiscal year, on April 30, on August 20, and 15 days after the conclusion of the fiscal year; (2) the Congressional Budget Office (CBO) to provide advisory reports calculating the GDP outlay limit at identical times; and (3) a sequestration by OMB within 45 calendar days after the beginning of a fiscal year to eliminate the excess outlay amount.
Prescribes requirements for CBO and OMB advisory sequestration preview reports and an OMB final sequestration report, accompanied by a presidential order detailing the uniform spending reduction.
Requires the House and the Senate budget committees to report a resolution directing their committees to change the existing law to achieve the goals outlined in the OMB August 20 report if it projects a sequestration.
States that if, after November 15, a bill resulting in outlays for the current fiscal year is enacted that causes excess outlays, the excess outlays for the next fiscal year shall be increased by the amount or amounts of that breach.
Amends the Congressional Budget Act of 1974 to make it out of order in both chambers to consider any bill, joint resolution, amendment, or conference report that includes any provision that would cause the most recently reported current GDP outlay limits in the Gramm-Rudman-Hollings Act to be exceeded. Prescribes procedures for waiver or suspension of this rule.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2041 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2041
To reduce Federal spending in a responsible manner.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 26, 2011
Mr. Kingston (for himself, Mr. Jordan, Mr. Flake, and Mr. Graves of
Georgia) introduced the following bill; which was referred to the
Committee on the Budget, and in addition to the Committee on Rules, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To reduce Federal spending in a responsible manner.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Returning to Responsible Fiscal
Policies Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) This Act is authorized by the United States
Constitution under clause 1 of section 8 of article I, relating
to the power of the Congress to tax and spend.
(2) Should an amendment to the United States Constitution
be adopted and ratified by the States setting a lower
limitation on outlays than provided in this Act, it is
appropriate for Congress to consider legislation immediately
modifying maximum outlay amounts in this Act.
(3) Total Federal outlays have averaged 20.6 percent of
gross domestic product over the past 40 years.
(4) Total Federal outlays in fiscal year 2010 were 23.8
percent of gross domestic product.
(5) Total Federal outlays in fiscal year 2020 are projected
to be 25.9 percent of gross domestic product according to the
Congressional Budget Office's Alternative Fiscal Scenario.
(6) It is appropriate and urgently necessary to put total
Federal outlays under a limitation as a percentage of gross
domestic product to ensure spending is constrained sufficiently
to reduce the Federal debt to much lower, sustainable levels.
SEC. 3. OUTLAYS EXCEEDING THE GDP OUTLAY LIMIT.
(a) Definitions.--Section 250(c)(4) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by striking paragraph
(4), redesignating the succeeding paragraphs accordingly, and adding
the following paragraphs:
``(19) The term `GDP', for any fiscal year, means the gross
domestic product during such fiscal year consistent with
Department of Commerce definitions.
``(20)(A) The term `emergency requirement' means any
provision that provides new budget authority and resulting
outlays for a situation that poses a threat to life, property,
or national security and is--
``(i) sudden, quickly coming into being, and not
building up over time;
``(ii) an urgent, pressing, and compelling need
requiring immediate action;
``(iii) unforeseen, unpredictable, and
unanticipated; and
``(iv) not permanent, temporary in nature.
``(B) An emergency that is part of an aggregate level of
anticipated emergencies, particularly when normally estimated
in advance, is not unforeseen.
``(21) The term `target fiscal year' means the fiscal year
in which a GDP outlay limit is in effect under section 253A.''.
(b) Caps.--The Balanced Budget and Emergency Deficit Control Act of
1985 is amended by inserting after section 253 the following:
``SEC. 253A. ENFORCING GDP OUTLAY LIMITS.
``(a) Enforcing GDP Outlay Limits.--In this section, the term `GDP
outlay limit' means an amount, as estimated by OMB, equal to--
``(1) the average GDP for the first 5 of the 6 fiscal years
preceding the target fiscal year; multiplied by
``(2) 23 percent for fiscal year 2012; 22 percent for
fiscal year 2013; 21 percent for fiscal year 2014; 19.5 percent
for fiscal year 2015; and 18 percent for fiscal year 2016 and
each subsequent fiscal year.
``(b) GDP Outlay Limit and Outlays.--
``(1) Determining the gdp outlay limit.--The Office of
Management and Budget shall estimate the GDP outlay limit for
the target fiscal year at the outset of the previous fiscal
year, on April 30, on August 20, and 15 days after the
conclusion of the fiscal year. CBO shall provide advisory
reports calculating the GDP outlay limit at identical times.
``(2) Total federal outlays.--In this section, total
Federal outlays shall include all on-budget and off-budget
outlays.
``(c) Sequestration.--
``(1) In general.--
``(A) Excess spending.--Not later than 45 calendar
days after the beginning of a fiscal year, OMB shall
conduct a sequestration to eliminate the excess outlay
amount.
``(B) Definition.--For purposes of this subsection,
the term `excess outlay amount' means the amount by
which total Federal outlays for a fiscal year exceed
the GDP outlay limit as adjusted pursuant to paragraph
(2).
``(2) Preview report.--CBO shall submit an advisory
sequestration preview report as described in section 254(c)(4)
on August 10 of each year. OMB shall produce a sequestration
preview report on August 20 as described in section 254(c)(4).
Fifteen days after the fiscal year begins, OMB shall issue an
updated sequestration report as described in section 254(e).
Thirty days later, the OMB should issue its final sequestration
report as described in section 254(f)(3). It shall be
accompanied by a Presidential order detailing the uniform
spending reductions. The reductions should generally follow the
process set forth in section 253 and 254, except as provided in
this section.
``(3) Congressional action.--If the August 20 OMB report
projects a sequestration, the Senate and House Budget
Committees may report a resolution directing their committees
to change the existing law to achieve the goals outlined in the
August 20 report.
``(4) Reducing nonexempt budgetary resources by a
proportional percentage.--
``(A) Calculation.--OMB shall calculate the
increase in outlays attributable to each of the 3
categories described in subparagraph (B) such that the
outlay savings resulting from sequestration, as
calculated under this subsection, eliminate excess
outlays.
``(B) Categories.--The 3 categories are as follows:
``(i) Direct spending (social security,
medicare, and other such programs).
``(ii) Discretionary security spending.
``(iii) Discretionary non-security
spending.
``(C) Reductions proportional.--The percentage
reductions for each category described in subparagraph
(B) shall be in proportion to the growth in outlays in
such category from the previous fiscal year.
``(D) Uniform reduction within categories.--To
achieve the percent reduction within a category under
subparagraph (C), a uniform reduction will occur across
all programs within that category to achieve the
percent reduction required for that category.
``(E) Pro rata basis.--If legislation funding the
Government does not reflect funding amounts for the
entire fiscal year, sequestration required by this
section shall be done on a pro rata basis. If
legislation funding the Government for the remainder of
a fiscal year is enacted, the total sequestration
required in a fiscal year shall total the necessary
level which may be undertaken in a single step or in a
sequence of steps.
``(d) No Exempt Programs.--Section 255 shall not apply to this
section, except that payments for net interest (budget function 900)
shall be exempt.
``(e) Look Back.--If, after November 15, a bill resulting in
outlays for the fiscal year in progress is enacted that causes excess
outlays, the excess outlays for the next fiscal year shall be increased
by the amount or amounts of that breach.''.
(c) BBEDCA.--Notwithstanding section 275 of the Balanced Budget and
Emergency Deficit Control Act of 1985, the relevant provisions of such
Act shall apply to the extent necessary to enforce this Act, including
amendments made by this Act.
(d) Effective Date.--This section shall apply beginning in fiscal
year 2013 and beyond, including any reports and calculations required
for implementation in fiscal year 2013.
SEC. 4. ENFORCEMENT PROCEDURES UNDER THE CONGRESSIONAL BUDGET ACT OF
1974.
(a) Enforcement.--Title III of the Congressional Budget Act of 1974
is amended by adding after section 315 the following:
``SEC. 316. ENFORCEMENT PROCEDURES.
``(a) GDP Outlay Limits.--It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint resolution,
amendment, or conference report that includes any provision that would
cause the most recently reported, current GDP outlay limits set forth
in section 253A of the Balanced Budget and Emergency Deficit Control
Act of 1985 to be exceeded.
``(b) Waiver or Suspension.--
``(1) 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, present and voting.
``(2) In the house.--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, present and
voting.
``(c) Point of Order Protection.--In the House, it shall not be in
order to consider a rule or order that waives the application of
paragraph (2) of subsection (b).
``(d) Motion To Suspend.--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.''.
(b) Table of Contents.--The table of contents in section 1(b) of
the Congressional Budget and Impoundment Control Act of 1974 is amended
by inserting after the item relating to section 315 the following:
``Sec. 316. Enforcement procedures.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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