Honest Budget Act - Amends procedures in the Congressional Budget Act of 1974 (CBA) that make it out of order in the Senate to consider appropriations legislation until the Senate agrees to a concurrent resolution on the budget. Permits waivers or suspension of such requirements, or successful appeals from a ruling of the Chair, by an affirmative vote of three-fifths (60) of the Senate.
Declares that it shall not be in order in the Senate to consider certain bills, joint resolutions, or conference reports that designate as an emergency requirement any provision that creates discretionary or direct spending or decreases revenues. Requires an affirmative vote of three-fifths (60) of the Senate to successfully appeal from a ruling of the Chair on a point of order against such a measure.
Establishes a procedure for emergency designations by amendment.
Amends the Federal Credit Reform Act of 1990 (FCRA) to revise the budgetary treatment of federal direct loans and loan guarantees to account for them on a fair value basis (currently, a FCRA accrual basis).
Expands such new budgetary treatment to financial investments beginning in FY2015. Defines "financial investment" as a federal government investment in any securities (debt or equity) or futures, swaps, or other derivatives, issued by a non-federal entity, regardless of whether the issuances are federally guaranteed, or issued by a federal entity if the issuance consists of marketable securities.
Requires the President's budget: (1) from FY1992 on to reflect the Treasury discounting component of direct loan and loan guarantee programs; and (2) from FY2015 on to reflect the costs of direct loan, loan guarantee, and financial investment programs.
Defines "Treasury discounting component" as the estimated long-term cost to the federal government of a direct loan, loan guarantee, or financial investment calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays.
Revises other requirements for the President's budget including conditions for new direct loan obligations incurred and loan guarantee commitments made for FY1992 and thereafter, and new financial investment commitments for FY2015 and thereafter. Requires new budget authority for such loans or loan guarantee or financial investment commitments to be provided in advance in an appropriations Act.
Exempts a direct loan or loan guarantee program that constitutes an entitlement (such as the guaranteed student loan program or the veteran's home loan guaranty program) as well as all existing credit programs of the Commodity Credit Corporation (CCC) from: (1) the above requirement; and (2) the prohibition against modification of an outstanding direct loan, loan guarantee, or financial investment in a manner that increases its costs unless budget authority for the additional cost has been provided in advance in an appropriations Act.
Revises requirements for Treasury transactions with financing accounts (nonbudget accounts associated with each program account which holds balances, receives the cost payment from the program account, and also includes all other cash flows to and from the federal government resulting from such obligations or commitments made on or after October 1, 1991).
Limits the availability of amounts in liquidating accounts to specified payments resulting from direct loan obligations or loan guarantee commitments made before October 1, 1991.
Prescribes requirements for consideration of legislation after agreement on a budget resolution (in effect, extending a point of order against certain changes in mandatory programs to all such programs in appropriations bills).
Prohibits the congressional budget committees from counting rescissions of budget authority that do not result in outlay savings over the period covered by a budget resolution when determining the levels of new budget authority, outlays, direct spending, new entitlement authority, and revenues for a fiscal year.
Suspends within-grade step increases in the compensation of certain federal employees from the date of enactment of this Act until December 31, 2012.
Makes it out of order in the Senate to consider any legislation that would provide an advance appropriation, except for employment training, education programs, Head Start, rental assistance, the Corporation for Public Broadcasting, and veterans' medical services. Allows waiver of this rule by a vote of three-fifths (60) of the Senate.
Prohibits shifts in outlays or revenues from one year to another by a date change to act as an offset for other provisions that increase the deficit for a time period.
Prescribes a budget scoring rule for transfers from the Treasury General Fund to the Highway Trust Fund that increase the level of indebtedness subject to the current applicable statutory public debt limit.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1651 Introduced in Senate (IS)]
112th CONGRESS
1st Session
S. 1651
To provide for greater transparency and honesty in the Federal budget
process.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 4, 2011
Mr. Sessions (for himself and Ms. Snowe) introduced the following bill;
which was read twice and referred to the Committee on the Budget
_______________________________________________________________________
A BILL
To provide for greater transparency and honesty in the Federal budget
process.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Honest Budget
Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. No budget--no appropriations.
Sec. 3. No phony emergency designations.
Sec. 4. Strengthen the Federal Credit Reform Act of 1990.
Sec. 5. No changes in mandatory programs in appropriation bills.
Sec. 6. Don't count rescissions that don't save money.
Sec. 7. Prohibition on step increases for Federal employee
compensation.
Sec. 8. Point of order against advance appropriations.
Sec. 9. Prohibit timing shifts.
Sec. 10. Budget scoring rule relating to transfers from the general
fund of the Treasury to the Highway Trust
Fund that increase public indebtedness.
SEC. 2. NO BUDGET--NO APPROPRIATIONS.
Section 904 of the Congressional Budget Act of 1974 (2 U.S.C. 621
note) is amended--
(1) in subsection (c)(1), by inserting after ``Sections''
the following: ``303(c),''; and
(2) in subsection (d)(2), by inserting after ``sections''
the following: ``303(c),''.
SEC. 3. NO PHONY EMERGENCY DESIGNATIONS.
(a) Emergency Requirement in a Bill, Joint Resolution, or
Conference Report.--
(1) In general.--In the Senate, it shall not be in order to
consider any bill, joint resolution, or conference report that
designates as an emergency requirement, pursuant to section 403
of S. Con. Res. 13 (110th Congress, the FY 2010 Budget
Resolution), section 4(g) of the Statutory Pay-As-You-Go Act of
2010, or section 251(b)(2)(A)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985 any provision that
creates discretionary or direct spending or decreases revenues.
(2) Waiver.--An affirmative vote of three-fifths of the
Members, duly chosen and sworn, shall be required to sustain an
appeal of the ruling of the Chair on a point of order against
such a measure raised under this subsection.
(3) Exception.--For purposes of this subsection, a
conference report may include an emergency designation only if
it was also adopted in the Senate version of the measure
subject to the conference report.
(b) Emergency Requirement in an Amendment.--
(1) In general.--In the Senate, it shall not be in order to
consider any bill, joint resolution, or conference report that
designates as an emergency requirement, pursuant to section 403
of S. Con. Res. 13 (110th Congress, the FY 2010 Budget
Resolution), section 4(g) of the Statutory Pay-As-You-Go Act of
2010, or section 251(b)(2)(A)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985 any provision that
creates discretionary or direct spending or decreases revenues.
(2) Waiver and appeal.--A point of order against an
amendment under this subsection may be waived or suspended only
by an affirmative vote of three-fifths of the Members, duly
chosen and sworn. An affirmative vote of three-fifths of the
Members, duly chosen and sworn, shall be required to sustain an
appeal of the ruling of the Chair on a point of order against
such an amendment raised under this subsection.
(c) Changes to the Statutory Pay-As-You-Go Act of 2010.--Section
4(g) of the Statutory Pay-As-You-Go Act of 2010 is amended by striking
paragraph (3) and inserting the following:
``(3) Designation in the senate.--A provision or provisions
designated as an emergency requirement pursuant to this section
are subject to section 3 of the Honest Budget Act.''.
SEC. 4. STRENGTHEN THE FEDERAL CREDIT REFORM ACT OF 1990.
Title V of the Congressional Budget Act of 1990 is amended to read
as follows:
``TITLE V--CREDIT REFORM
``SEC. 500. SHORT TITLE.
``This title may be cited as the `Federal Credit Reform Act of
1990'.
``SEC. 501. PURPOSES.
``The purposes of this title are to--
``(1) measure more accurately the costs of Federal credit
programs and financial investments by accounting for them on a
fair value basis;
``(2) place the cost of credit programs and financial
investments on a budgetary basis equivalent to other Federal
spending;
``(3) encourage the delivery of benefits in the form most
appropriate to the needs of beneficiaries; and
``(4) improve the allocation of resources among Federal
programs.
``SEC. 502. DEFINITIONS.
``For purposes of this title:
``(1) The term `direct loan' means a disbursement of funds
by the Government to a non-Federal borrower under a contract
that requires the repayment of such funds with or without
interest. The term includes the purchase of, or participation
in, a loan made by another lender and financing arrangements
that defer payment for more than 90 days, including the sale of
a Government asset on credit terms. The term does not include
the acquisition of a federally guaranteed loan in satisfaction
of default claims or the price support loans of the Commodity
Credit Corporation.
``(2) The term `direct loan obligation' means a binding
agreement by a Federal agency to make a direct loan when
specified conditions are fulfilled by the borrower.
``(3) The term `loan guarantee' means any guarantee,
insurance, or other pledge with respect to the payment of all
or a part of the principal or interest on any debt obligation
of a non-Federal borrower to a non-Federal lender, but does not
include the insurance of deposits, shares, or other
withdrawable accounts in financial institutions.
``(4) The term `loan guarantee commitment' means a binding
agreement by a Federal agency to make a loan guarantee when
specified conditions are fulfilled by the borrower, the lender,
or any other party to the guarantee agreement.
``(5)(A) The term `financial investment' means an
investment by the Government in any securities (debt or
equity), stocks, bonds, or futures, options, swaps, or other
derivatives, issued by a non-Federal entity, including State,
local tribal, and foreign governments, and private
organizations, regardless of whether the issuances are
federally guaranteed, or issued by a Federal entity if the
issuance consists of marketable securities.
``(B) The term includes Government investments in money
market and mutual funds, even if the money market or mutual
fund's assets consist entirely of Federal securities.
``(6) The term `financial investment commitment' means a
binding agreement by a Federal agency to acquire a financial
investment when specified conditions are fulfilled by other
party to the investment agreement.
``(7)(A) The term `cost' means the sum of the Treasury
discounting component and the risk component of a direct loan,
loan guarantee, or financial investment or a modification
thereof.
``(B) The Treasury discounting component shall be the
estimated long-term cost to the Government of a direct loan,
loan guarantee, or financial investment or modification
thereof, calculated on a net present value basis, excluding
administrative costs and any incidental effects on governmental
receipts or outlays.
``(C) The risk component shall be an amount equal to the
difference between--
``(i) the estimated long-term cost to the
Government of a direct loan, loan guarantee, or
financial investment or modification thereof, estimated
on a fair value basis, applying the guidelines set
forth by the Financial Accounting Standards Board in
Financial Accounting Standards #157, or a successor
thereto, excluding administrative costs and any
incidental effects on governmental receipts or outlays;
and
``(ii) the Treasury discounting component of such
direct loan, loan guarantee, or financial investment or
modification thereof.
``(D) The Treasury discounting component of a direct loan
shall be the net present value, at the time when the direct
loan is disbursed, of the following estimated cash flows:
``(i) Loan disbursements.
``(ii) Repayments of principal.
``(iii) Essential preservation expenses, payments
of interest and other payments by or to the Government
over the life of the loan after adjusting for estimated
defaults, prepayments, fees, penalties, and other
recoveries, including the effects of changes in loan
terms resulting from the exercise by the borrower of an
option included in the loan contract.
``(E) The Treasury discounting component of a loan
guarantee shall be the net present value, at the time when the
direct loan is disbursed, of the following estimated cash
flows:
``(i) Payments by the Government to cover defaults
and delinquencies, interests subsidies, essential
preservation expenses, or other payments.
``(ii) Payments to the Government including
origination and other fees, penalties, and recoveries,
including the effects of changes in loan terms
resulting from the exercise by the guaranteed lender of
an option included in the loan guarantee contract, or
by the borrower of an option included in the guaranteed
loan contract.
``(F) The Treasury discounting component of a financial
investment shall be the net present value, at the time the
financial investment is executed, of the following estimated
cash flows:
``(i) Payments by the Government including
essential preservation expenses.
``(ii) Payments to the Government including any
dividends, periodic payments, fees, penalties, or
recoveries;
Including the effects of changes in investment terms resulting
from the exercise by the non-Federal entity of an option
included in the investment contract.
``(G) The cost of a modification is the sum of--
``(i) the difference between the current estimate
of the Treasury discounting component of the remaining
cash flows under the terms of a direct loan, loan
guarantee, or financial investment contract, and the
current estimate of the Treasury discounting component
of the remaining cash flows under the terms of the
contract, as modified; and
``(ii) the difference between the current estimate
of the risk component of the remaining cash flows under
the terms of a direct loan, loan guarantee, or
financial investment contract, and the current estimate
of the risk component of the remaining cash flows under
the terms of the contract as modified.
``(H) In estimating Treasury discounting components, the
discount rate shall be the average interest rate on marketable
Treasury securities of similar duration to the cash flows of
the direct loan or loan guarantee for which the estimate is
being made.
``(I) When funds are obligated for a direct loan or loan
guarantee, the estimated cost shall be based on the current
assumptions, adjusted to incorporate the terms of the loan
contract, for the fiscal year in which the funds are obligated.
``(8) The term `program account' means the budget account
into which an appropriation to cover the cost of a direct loan,
loan guarantee, or financial investment program is made and
from which such cost is disbursed to the financing account.
``(9) The term `financing account' means the nonbudget
account or accounts associated with each program account which
holds balances, receives the cost payment from the program
account, and also includes all other cash flows to and from the
Government resulting from direct loan obligations or loan
guarantee commitments made on or after October 1, 1991, or
financial investment commitments made on or after October 1,
2014.
``(10) The term `liquidating account' means the budget
account that includes all cash flows to and from the Government
resulting from direct loan obligations or loan guarantee
commitments made prior to October 1, 1991. These accounts shall
be shown in the budget on a cash basis.
``(11) The term `modification' means any Government action
that alters the estimated cost of an outstanding direct loan
(or direct loan obligation), an outstanding loan guarantee (or
loan guarantee commitment), or outstanding financial investment
(or financial investment commitment) from the current estimate
of cash flows. This includes the sale of loan assets, with or
without recourse, and the purchase of guaranteed loans (or
direct loan obligations), loan guarantees (or loan guarantee
commitments), financial investments (or financial investment
commitments) such as a change in collection procedures.
``(12) The term `current' has the same meaning as in
section 250(c)(9) of the Balanced Budget and Emergency Deficit
Control Act of 1985.
``(13) The term `Director' means the Director of the Office
of Management and Budget.
``(14) The term `administrative costs' means costs related
to program management activities, but does not include
essential preservation expenses.
``(15) The term `essential preservation expenses' means
servicing and other costs that are essential to preserve the
value of loan assets or collateral.
``SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND REVIEW.
``(a) In General.--For the executive branch, the Director shall be
responsible for coordinating the estimates required by this title. The
Director shall consult with the agencies that administer direct loan or
loan guarantee, or financial investment programs.
``(b) Delegation.--The Director may delegate to agencies authority
to make estimates of costs. The delegation of authority shall be based
upon written guidelines, regulations, or criteria consistent with the
definitions in this title.
``(c) Coordination With the Congressional Budget Office.--In
developing estimation guidelines, regulations, or criteria to be used
by Federal agencies, the Director shall consult with the Director of
the Congressional Budget Office.
``(d) Improving Cost Estimates.--The Director and the Director of
the Congressional Budget Office shall coordinate the development of
more accurate data on historical performance and prospective risk of
direct loan, loan guarantee, and financial investment programs. They
shall annually review the performance of outstanding direct loans, loan
guarantees, and financial investment to improve estimates of costs. The
Office of Management and Budget and the Congressional Budget Office
shall have access to all agency data that may facilitate the
development and improvement of estimates of costs.
``(e) Historical Credit Programs Costs.--The Director shall review,
to the extent possible, historical data and develop the best possible
estimates of adjustments that would convert aggregate historical budget
data to credit reform accounting.
``SEC. 504. BUDGETARY TREATMENT.
``(a) President's Budget.--Beginning with fiscal year 1992, the
President's budget shall reflect the Treasury discounting component of
direct loan and loan guarantee programs. Beginning with fiscal year
2015, the President's budget shall reflect the costs of direct loan,
loan guarantee, and financial investment programs. The budget shall
also include the planned level of new direct loan obligations, loan
guarantee commitments, or financial investment commitments associated
with each appropriations request.
``(b) Appropriations Required.--Notwithstanding any other provision
of law, new direct loan obligations may be incurred and new loan
guarantee commitments may be made of fiscal year 1992 and thereafter
and new financial investment commitments may be made for fiscal year
2015 and thereafter only to the extent that--
``(1) new budget authority to cover their costs is provided
in advance in an appropriations Act;
``(2) a limitation on the use of funds otherwise available
for the cost of a direct loan, loan guarantee, or financial
investment program has been provided in advance in an
appropriations Act; or
``(3) authority is otherwise provided in appropriation
Acts.
``(c) Exemption for Mandatory Programs.--Subsections (b) and (e)
shall not apply to a direct loan or loan guarantee program that--
``(1) constitutes an entitlement (such as the guaranteed
student loan program or the veteran's home loan guaranty
program); or
``(2) all existing credit programs of the Commodity Credit
Corporation on the date of enactment of this title.
``(d) Budget Accounting.--
``(1) The authority to incur new direct loan obligations,
make new loan guarantee commitments, make new financial
investment commitments, or modify outstanding direct loans (or
direct loan obligations), loan guarantees (or loan guarantee
commitments), financial investments (or financial investment
commitments) shall constitute new budget authority in an amount
equal to the cost of the direct loan or loan guarantee in the
fiscal year in which definite authority becomes available or
indefinite authority is used. Such budget authority shall
constitute an obligation of the program account to pay to the
financing account.
``(2) The outlays resulting from new budget authority for
the cost of direct loans, loan guarantees, or financial
investment described in paragraph (1) shall be paid from the
program account into the financing account and recorded in the
fiscal year in which the direct loan, the guaranteed loan, or
financial investment is disbursed or its costs altered.
``(3) All collections and payments of the financing
accounts shall be a means of financing.
``(e) Modifications.--An outstanding direct loan (or direct loan
obligation), loan guarantee (or loan guarantee commitment), or
financial investment (or financial investment commitment) shall not be
modified in a manner that increases its costs unless budget authority
for the additional cost has been provided in advance in an
appropriations Act.
``(f) Re-Estimates.--When the estimated cost for a group of direct
loans, loan guarantees, or financial investments for a given program
made in a single fiscal year is re-estimated in a subsequent year, the
difference between the re-estimated cost and the previous cost estimate
shall be displayed as a distinct and separately identified subaccount
in the program account as a change in program costs and a change in net
interest. There is hereby provided permanent indefinite authority for
these re-estimates.
``(g) Administrative Expenses.--All funding for an agency's
administrative costs associated with a direct loan, loan guarantee, or
financial investment program shall be displayed as distinct and
separately identified subaccounts within the same budget account as the
program's cost.
``SEC. 505. AUTHORIZATIONS.
``(a) Authorization of Appropriations for Costs.--There are
authorized to be appropriated to each Federal agency authorized to make
direct loan obligations, loan guarantee commitments, or financial
investment commitments such sums as may be necessary to pay the cost
associated with such direct loan obligations, loan guarantee
commitments, or financial investment commitments.
``(b) Authorization for Financing Accounts.--In order to implement
the accounting required by this title, the President is authorized to
establish such non-budgetary accounts as may be appropriate.
``(c) Treasury Transactions With the Financing Accounts.--
``(1) In general.--The Secretary of the Treasury shall
borrow from, receive from, lend to, or pay to the financing
accounts such amounts as may be appropriate. The Secretary of
the Treasury may prescribe forms and denominations, maturities,
and terms and conditions for the transactions described in the
preceding sentence, except that the rate of interest charged by
the Secretary on lending to financing accounts (including
amounts treated as lending to financing accounts by the Federal
Financing Bank (hereinafter in this subsection referred to as
the `Bank') pursuant to section 405(b)) and the rate of
interest paid to financing accounts on uninvested balances in
financing accounts shall be the same as the rate determined
pursuant to section 502(7)(H).
``(2) Loans.--For guaranteed loans financed by the Bank and
treated as direct loans by a Federal agency pursuant to section
406(b)(1), any fee or interest surcharge (the amount by which
the interest rate charged exceeds the rate determined pursuant
to section 502(7)(H) that the Bank charges to a private
borrower pursuant to section 6(c) of the Federal Financing Bank
Act of 1973 shall be considered a cash flow to the Government
for the purposes of determining the cost of the direct loan
pursuant to section 502(7). All such amounts shall be credited
to the appropriate financing account.
``(3) Reimbursement.--The Bank is authorized to require
reimbursement from a Federal agency to cover the administrative
expenses of the Bank that are attributable to the direct loans
financed for that agency. All such payments by an agency shall
be considered administrative expenses subject to section
504(g). This subsection shall apply to transactions related to
direct loan obligations or loan guarantee commitments made on
or after October 1, 1991.
``(4) Authority.--The authorities provided in this
subsection shall not be construed to supersede or override the
authority of the head of a Federal agency to administer and
operate a direct loan or loan guarantee program.
``(5) Title 31.--All of the transactions provided in the
subsection shall be subject to the provisions of subchapter II
of chapter 15 of title 31, United States Code.
``(6) Treatment of cash balances.--Cash balances of the
financing accounts in excess of current requirements shall be
maintained in a form of uninvested funds and the Secretary of
the Treasury shall pay interest on these funds. The Secretary
of the Treasury shall charge (or pay if the amount is negative)
financing accounts an amount equal to the risk component for a
direct loan, loan guarantee, or financial investment or
modification thereof. Such amount received by the Secretary of
the Treasury shall be a means of financing and shall not be
considered a cash flow of the Government for the purposes of
section 502(7).
``(d) Authorization for Liquidating Accounts.--(1) Amounts in
liquidating accounts shall be available only for payments resulting
from direct loan obligations or loan guarantee commitments made prior
to October 1, 1991, for--
``(A) interest payments and principal repayments to the
Treasury or the Federal Financing Bank for amounts borrowed;
``(B) disbursements of loans;
``(C) default and other guarantee claim payments;
``(D) interest supplement payments;
``(E) payments for the costs of foreclosing, managing, and
selling collateral that are capitalized or routinely deducted
from the proceeds of sales;
``(F) payments to financing accounts when required for
modifications;
``(G) administrative costs and essential preservation
expenses, if--
``(i) amounts credited to the liquidating account
would have been available for Administrative costs and
essential preservation expenses under a provision of
law in effect prior to October 1, 1991; and
``(ii) no direct loan obligation or loan guarantee
commitment has been made, or any modification of a
direct loan or loan guarantee has been made, since
September 30, 1991; or
``(H) such other payments as are necessary for the
liquidation of such direct loan obligations and loan guarantee
commitments.
``(2) Amounts credited to liquidating accounts in any year shall be
available only for payments required in that year. Any unobligated
balances in liquidating accounts at the end of a fiscal year shall be
transferred to miscellaneous receipts as soon as practicable after the
end of the fiscal year.
``(3) If funds in liquidating accounts are insufficient to satisfy
obligations and commitments of such accounts, there is hereby provided
permanent, indefinite authority to make any payments required to be
made on such obligations and commitments.
``(e) Authorization of Appropriations for Implementation
Expenses.--There are authorized to be appropriated to existing accounts
such sums as may be necessary for salaries and expenses to carry out
the responsibilities under this title.
``(f) Reinsurance.--Nothing in this title shall be construed as
authorizing or requiring the purchase of insurance or reinsurance on a
direct loan or loan guarantee from private insurers. If any such
reinsurance for a direct loan or loan guarantee is authorized, the cost
of such insurance and any recoveries to the Government shall be
included in the calculation of the cost.
``(g) Eligibility and Assistance.--Nothing in this title shall be
construed to change the authority or the responsibility of a Federal
agency to determine the terms and conditions of eligibility for, or the
amount of assistance provided by a direct loan or a loan guarantee.
``SEC. 506. TREATMENT OF DEPOSIT INSURANCE AND AGENCIES AND OTHER
INSURANCE PROGRAMS.
``This title shall not apply to the credit or insurance activities
of the Federal Deposit Insurance Corporation, National Credit Union
Administration, Resolution Trust Corporation, Pension Benefit Guaranty
Corporation, National Flood Insurance, National Insurance Development
Fund, Crop Insurance, or Tennessee Valley Authority.
``SEC. 507. EFFECT ON OTHER LAWS.
``(a) Effect on Other Laws.--This title shall supersede, modify, or
repeal any provision of law enacted prior to the date of enactment of
this title to the extent such provision is inconsistent with this
title. Nothing in this title shall be construed to establish a credit
limitation on any Federal loan or loan guarantee program.
``(b) Crediting of Collections.--Collections resulting from direct
loans obligated or loan guarantees committed prior to October 1, 1991,
shall be credited to the liquidating accounts of Federal agencies.
Amounts so credited shall be available, to the same extent that they
were available prior to the date of enactment of this title, to
liquidate obligations arising from such direct loans obligated or loan
guarantees committed prior to October 1, 1991, including repayment of
any obligations held by the Secretary of the Treasury or the Federal
Financing Bank. The unobligated balances of such accounts that are in
excess of current needs shall be transferred to the general fund of the
Treasury. Such transfers shall be made from time to time but, at least
once each year.''.
SEC. 5. NO CHANGES IN MANDATORY PROGRAMS IN APPROPRIATION BILLS.
Section 302(f)(2) of the Congressional Budget Act of 1974 is
amended to read as follows:
``(2) In the senate.--After a concurrent resolution on the
budget is agreed to, it shall not be in order in the Senate to
consider any bill or joint resolution, amendment, motion, or
conference report that--
``(A)(i) in the case of any committee except the
Committee on Appropriations, would cause the applicable
allocation of new budget authority or outlays under
subsection (a) for the first fiscal year or the total
of fiscal years to be exceeded; or
``(ii) in the case of the Committee on
Appropriations would cause the applicable suballocation
of new budget authority or outlays under subsection (b)
to be exceeded; or
``(B) includes one or more provisions that would
have been estimated as affecting direct spending or
receipts under section 252 of the Balanced Budget and
Emergency Deficit Control Act of 1985 were they
included in legislation other than appropriations
legislation, if such provision does not result in net
outlay savings over the total of the period of the
current year, the budget year, and all fiscal years
covered under the most recently adopted concurrent
resolution on the budget.''.
SEC. 6. DON'T COUNT RESCISSIONS THAT DON'T SAVE MONEY.
Section 312(a) of the Congressional Budget Act of 1974 (2 U.S.C.
643(a)) is amended--
(1) by striking ``For purposes'' and inserting the
following:
``(1) In general.--For purposes;''; and
(2) by adding at the end the following:
``(2) Exclusion.--In making determinations under paragraph
(1), the committee shall not count rescissions of budget
authority that do not result in outlay savings over the period
of fiscal years covered by the concurrent resolution on the
budget.''.
SEC. 7. PROHIBITION ON STEP INCREASES FOR FEDERAL EMPLOYEE
COMPENSATION.
(a) Periodic Step Increases.--Notwithstanding any other provision
of law, no periodic step increase under section 5335 of title 5, United
States Code, which (but for this subsection) would otherwise take
effect during the period beginning on the date of enactment of this Act
and ending on December 31, 2012, shall be made.
(b) Additional Step Increases.--The head of an agency may not grant
additional step increases under section 5336 of title 5, United States
Code, during the period beginning on the date of enactment of this Act
and ending on December 31, 2012.
SEC. 8. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.
(a) In General.--
(1) Point of order.--Except as provided in subsection (b),
it shall not be in order in the Senate to consider any bill,
joint resolution, motion, amendment, or conference report that
would provide an advance appropriation.
(2) Definition.--In this section, the term ``advance
appropriation'' means any new budget authority provided in a
bill or joint resolution making appropriations for fiscal year
2012 that first becomes available for any fiscal year after
2012, or any new budget authority provided in a bill or joint
resolution making general appropriations or continuing
appropriations for each of the budget years 2012 through 2022,
that first becomes available for any fiscal year after the
budget year.
(b) Exceptions.--Advance appropriations may be provided as follows:
(1) For fiscal years 2013 through 2022 in an aggregate
amount not to exceed $28,852,000,000 in new budget authority in
each year for the following programs, projects, activities, or
accounts:
(A) Employment and Training Administration.
(B) Job Corps.
(C) Education for the Disadvantaged.
(D) School Improvement.
(E) Children and Family Services (Head Start).
(F) Special Education.
(G) Career, Technical, and Adult Education.
(H) Financial Services and General Government:
Payment to Postal Service.
(I) Transportation, Housing and Urban Development:
Tenant-based Rental Assistance Project-based Rental
Assistance.
(2) For the Corporation for Public Broadcasting.
(3) For the Department of Veterans Affairs for the Medical
Services, Medical Support and Compliance, and Medical
Facilities accounts of the Veterans Health Administration.
(c) Supermajority Waiver and Appeal.--
(1) Waiver.--In the Senate, subsection (a)(1) may be waived
or suspended only by an affirmative vote of three-fifths of the
Members, duly chosen and sworn.
(2) Appeal.--An affirmative vote of three-fifths of the
Members of the Senate, duly chosen and sworn, shall be required
to sustain an appeal of the ruling of the Chair on a point of
order raised under subsection (a).
(d) Form of Point of Order.--A point of order under subsection (a)
may be raised by a Senator as provided in section 313(e) of the
Congressional Budget Act of 1974.
(e) Conference Reports.--When the Senate is considering a
conference report on, or an amendment between the Houses in relation
to, a bill, upon a point of order being made by any Senator pursuant to
this section, and such point of order being sustained, such material
contained in such conference report shall be deemed stricken, and the
Senate shall proceed to consider the question of whether the Senate
shall recede from its amendment and concur with a further amendment, or
concur in the House amendment with a further amendment, as the case may
be, which further amendment shall consist of only that portion of the
conference report or House amendment, as the case may be, not so
stricken. Any such motion in the Senate shall be debatable. In any case
in which such point of order is sustained against a conference report
(or Senate amendment derived from such conference report by operation
of this subsection), no further amendment shall be in order.
SEC. 9. PROHIBIT TIMING SHIFTS.
In the Senate, for purposes of enforcement of points of order
established under the Congressional Budget Act of 1974, S. Con. Res. 21
(110th Congress; Fiscal Year 2008 Budget Resolution), S. Con. Res. 70
(110th Congress; Fiscal Year 2009 Budget Resolution), S. Con. Res.
(111th Congress; Fiscal Year 2010 Budget Resolution), and subsequent
concurrent resolutions on the budget, a provision in any bill,
resolution, amendment, motion, amendment between houses, or conference
report that shifts outlays or revenues from one year to another by a
date change to act as an offset for other provisions that increase the
deficit for a time period, shall not count.
SEC. 10. BUDGET SCORING RULE RELATING TO TRANSFERS FROM THE GENERAL
FUND OF THE TREASURY TO THE HIGHWAY TRUST FUND THAT
INCREASE PUBLIC INDEBTEDNESS.
In the Senate, for purposes of enforcement of points of order
established under the Congressional Budget Act of 1974, S. Con. Res. 21
(110th Congress; Fiscal Year 2008 Budget Resolution), S. Con. Res. 70
(110th Congress; Fiscal Year 2009 Budget Resolution), S. Con. Res. 13
(111th Congress; Fiscal Year 2010 Budget Resolution), and subsequent
concurrent resolutions on the budget, a bill, resolution, amendment,
motion, amendment between houses, or conference report that transfers
funds from the general fund of the Treasury to the Highway Trust Fund
and that increases the level of indebtedness that is subject to the
current applicable statutory public debt limit shall be counted by the
Chairman of the Senate Committee on the Budget as new budget authority
and outlays equal to the amount of the transfer in the fiscal year the
transfer occurs.
<all>
Introduced in Senate
Read twice and referred to the Committee on the Budget.
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