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106th Congress                                                   Report
 2d Session             HOUSE OF REPRESENTATIVES                106-530

_______________________________________________________________________






                         CONCURRENT RESOLUTION


                         ON THE BUDGET--FISCAL


                               YEAR 2001

                               __________

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET

                        HOUSE OF REPRESENTATIVES

                              to accompany

                            H. Con. Res. 290

ESTABLISHING THE CONGRESSIONAL BUDGET FOR THE UNITED STATES GOVERNMENT 
  FOR FISCAL YEAR 2001, REVISING THE CONGRESSIONAL BUDGET FOR THE UNITED 
  STATES GOVERNMENT FOR FISCAL YEAR 2000, AND SETTING FORTH APPROPRIATE 
  BUDGETARY LEVELS FOR EACH OF FISCAL YEARS 2002 THROUGH 2005

                             together with

                     MINORITY AND ADDITIONAL VIEWS




 March 20, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                -------                                

                    U.S. GOVERNMENT PRINTING OFFICE
63-252                     WASHINGTON : 2000       





                            C O N T E N T S

                              ----------                              
                                                                   Page
Introduction.....................................................     2
Economic Assumptions.............................................     5
Function-by-Function Presentation................................    11
Summary Tables...................................................    32
The Congressional Budget Process.................................    43
    Spending Allocations.........................................    43
        Committee on Appropriations..............................    43
        Authorizing Committees...................................    44
Section by Section Analysis......................................    47
    Amounts and Levels...........................................    47
    Reconciliation Instructions..................................    47
    Points of Order..............................................    48
    Reserve Funds................................................    49
Enforcing the Budget Resolution..................................    53
Statutory Controls Over the Budget...............................    55
    Discretionary Spending Limits................................    55
    Pay-As-You-Go Requirements...................................    56
Senses of House and Congress.....................................    58
Revenue Comparisons..............................................    64
Additional Report Language.......................................    66
Oversight........................................................    69
    House Budget Committee.......................................    69
    Government Reform............................................    69
Rollcall Votes and Other Items Required Under House Rules........    74
    Committee Votes..............................................    74
    Oversight Findings and Recommendations of the Committee on 
      Government Reform..........................................    88
    Miscellaneous Budgetary Information..........................    88
    Establishment of the Statutory Limit on the Public Debt......    88
Minority and Additional Views....................................    90
Appendix--The Concurrent Resolution on the Budget................   103




106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-530

=======================================================================



 
         CONCURRENT RESOLUTION ON THE BUDGET--FISCAL YEAR 2001

                                _______
                                

 March 20, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Kasich, from the Committee on the Budget, submitted the following

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                    [To accompany H. Con. Res. 290]




               THE REPUBLICAN BUDGET FOR FISCAL YEAR 2001

        An Antidote to the Clinton-Gore Trillion-Dollar Fantasy

                              ----------                              


                              INTRODUCTION

    On February 7, 2000, President Clinton and Vice President 
Gore submitted a budget for fiscal year 2001 that raises taxes 
and fees on working families by $250 billion, creates 84 new 
Federal programs, places Government spending increases on 
``autopilot,'' and fails to offer any serious proposals to 
strengthen Social Security or Medicare.
    Over the next decade, the Clinton-Gore budget would spend 
$1.3 trillion on bigger Government--consuming 70 percent of the 
projected $1.9 trillion in budget surpluses. Thus, the 
administration plan would mean more for the Federal 
bureaucracy, and less for the American family.
    This Republican budget resolution is an antidote to 
Government on autopilot. The defining components of this budget 
are the following:

--It strengthens and protects Social Security.
--It pays down more than a trillion dollars of debt.
--It provides tax relief and fairness for families, small 
    businesses, and farmers. It repeals the marriage penalty 
    and provides incentives for health insurance and health 
    care.
--It puts aside $40 billion for Medicare reform and 
    prescription drugs.
--It strengthens the Nation's defense.
--It provides for higher-quality education, by supporting local 
    decisionmaking, rather than Washington mandates.

    This budget addresses the Government's most important 
commitments, while reinforcing the Nation's growth from the 
bottom up. It restores the importance of the American people, 
rather than the self-importance of Washington. It underscores 
President Reagan's vision, that ``We are a Nation with a 
Government, not the other way around.''
    Below are the highlights and key priorities of this budget.

                  HIGHLIGHTS OF THE REPUBLICAN BUDGET

--Protecting and Strengthening Social Security--The Republican 
    budget reserves all of the Social Security surplus--$978 
    billion over the next 5 years--to strengthen the program. 
    It creates a ``lock box'' to assure the Social Security 
    surplus cannot be raided. The lock box will guarantee that 
    Social Security surpluses cannot be spent on other 
    Government programs.
--Tax Relief and Fairness--The Republican tax relief plan 
    eliminates the marriage penalty, and allows Congress to 
    provide other assistance to families, small businesses, and 
    farmers. It repeals the unfair Social Security earnings 
    test, which penalizes seniors who want to work. The budget 
    also leaves room for education assistance, a phaseout of 
    the death tax, and incentives for health insurance and 
    health care.

          Over 5 years, the budget provides for at least $150 
        billion in tax cuts. The budget provides $10 billion in 
        tax relief in fiscal year 2001 alone.
          Besides the $150-billion tax cut, the budget creates 
        a $50-billion reserve dedicated to either additional 
        tax relief or additional debt relief. The resolution 
        also allows for any future increases in the non-Social 
        Security surplus to be added to this fund.
          In contrast, the President and Vice President would 
        impose $10 billion in net tax increases in fiscal year 
        2001.

--Debt Reduction--This budget proposes an historic plan to 
    eliminate the debt held by the public by 2013. The plan 
    fully protects the growing Social Security surpluses with a 
    ``lock-box,'' as another step in the Republican effort to 
    provide fundamental reform of the system. Instead of using 
    Social Security surpluses for Government spending, the 
    Republican budget dedicates them to repaying debt.

          This historic plan will pay down $3.6 trillion worth 
        of public debt, and help assure seniors--now and in the 
        future--of a solvent Social Security system, while 
        lifting the burden of debt off the backs of the 
        Nation's children.

--Medicare Reform--The Republican budget sets aside $40 billion 
    for reforming Medicare and providing prescription drug 
    coverage for America's seniors. The resolution also rejects 
    the President's $18.2 billion of higher costs for Medicare 
    providers and beneficiaries.
--Spending Restraint--The Clinton-Gore budget proposed a 
    discretionary spending level of $625 billion for fiscal 
    year 2001--an increase of $39 billion over fiscal year 
    2000, and more than twice the rate of inflation.

          The Republican budget restrains discretionary 
        spending to a total of $596.5 billion for fiscal year 
        2001. This proposal rejects the Democrats' ``Government 
        on autopilot'' approach, and holds spending as close to 
        a freeze as possible (about half the rate of 
        inflation).

                            OTHER PRIORITIES

--Defense--This budget provides $307.3 billion for the Nation's 
    men and women in uniform in fiscal year 2001. This is 6 
    percent more than last year and $1 billion more than the 
    President's request.
--Education--The resolution provides an increase of $2.2 
    billion in elementary and secondary education over last 
    year (a 9.4-percent increase), and more than $20 billion 
    over the next 5 years. The Republican budget assumes 
    greater flexibility for States and localities, and makes 
    the Individuals with Disabilities Education Act [IDEA] the 
    top education priority. Republicans also reject the 
    President's cuts in the Student Financial Aid Program.
--Basic Research--This budget provides significant increases in 
    basic research, including a $1-billion increase for the 
    National Institutes of Health.
--Farmers--Republicans are providing $6 billion in immediate 
    income assistance to the Nation's farmers, as well as 
    Federal crop insurance reform.
--Veterans--The budget provides a 6-percent increase for the 
    Nation's veterans, including the needed resources for 
    veterans' health care.

    To summarize: This budget is an antidote to the trillion-
dollar fantasy proposed by the Clinton-Gore administration. 
Instead of proposing a risky scheme to increase spending 
without restraint, the Republican budget holds spending in 
check while protecting the entire Social Security surplus. 
Instead of raising taxes, the Republican budget provides for 
responsible tax relief for working families, making the tax 
code more fair. As surpluses continue accumulating in 
Washington, the Republican budget works toward wiping out the 
$3.6 trillion in debt held by the public by 2013.
    The discussion that follows provides additional information 
on these and other priorities of the budget.

                          ECONOMIC ASSUMPTIONS

                              ----------                              

    The Committee's budget resolution uses the economic 
assumptions developed by the Congressional Budget Office [CBO] 
and presented in CBO's The Economic and Budget Outlook: Fiscal 
Years 2001-2010 (January, 2000). These economic assumptions 
comprise a short-term forecast for 2000 and 2001--which 
reflects the current state of the economy relative to the 
business cycle--and a longer-term projection for 2002 through 
2005, based on long-term economic trends.
    As the economy continues to grow strongly, economic 
forecasts have improved. Since last summer, there has been 
further recognition that recent productivity gains are 
persistent. Most forecasts, including CBO's, assume that the 
economy will reach a sustainable level of economic growth, now 
judged to be about 3 percent. Private forecasts are somewhat 
more optimistic.
    The near-term forecast continues to reflect the strength of 
the economy as the boom in investment and consumer spending 
continues. The longer-term assumptions reflect the view that 
important, and permanent structural changes in the economy may 
have taken hold, raising the trend of future sustainable 
output. Hence, most of the current rise in productivity is 
reflected in long-term sustainable growth.

                review of economic developments in 1999

    The economy in 1999 continued to perform exceptionally, on 
a path of high growth and low inflation. With yet another year 
of greater than 4-percent real growth, the current 9-year-old 
expansion is now the longest on record. The unemployment rate, 
at 4.1 percent, is the lowest in 30 years, with 2.7 million 
jobs created in 1999. Inflation continued to remain at 
historically low levels, with the overall rate of inflation 
higher in 1999, but as a result of higher energy prices. Real 
compensation also grew significantly.
    Much of the good news is attributeable to a surge in 
productivity growth. Labor productivity has accelerated since 
1995, to about the level before the slowdown after 1973. Over 
the past 2 years, productivity has surged by about 3 percent, 
due mainly to rapid business investment. Many observers believe 
that major structural changes in the economy--stimulated by 
advances in, and the use of, computer-related technologies--
have permanently boosted productivity.
    Sound fiscal and monetary policies have contributed to the 
good results. Fiscal restraint by the Federal Government 
improved national savings, even as personal savings fell, and 
allowed the Federal Reserve Board [FED] to allow lower interest 
rates than would otherwise be the case. This increase in 
savings encourages investment and capital accumulation, thereby 
helping raise the long term potential growth rate of the 
economy.
    The main policy objective of the FED has been to ensure 
that its monetary policy supports a rate of economic growth 
that is consistent with low inflation and price stability.
    Employment remains robust, as the monthly unemployment rate 
has fallen to 4.1 percent. This is even lower than the 4.5-
percent rate for all of 1998.
    Inflation in 1999 was at a historically low level. The 
Consumer Price Index [CPI] increased 2.2 percent in 1999, (up 
from 1.6 percent in 1998). Interest-rate-sensitive sectors have 
continued to do well, even with higher interest rates. For 
example, auto and truck vehicle sales reached 17.4 million in 
1999, the best performance in many years. Perhaps more than 
other sectors, housing has benefitted from the improved 
economic environment. Strong household income gains, high 
levels of consumer confidence and home mortgage rates among the 
lowest in the last 30 years, have lead to record home ownership 
rate. Sales of new homes are nearly the highest since record 
keeping started in 1963. Yet prices have picked up only 
slightly and builders have not responded with excessive over-
building.

             summary of cbo economic forecast through 2010

    CBO forecasts that real economic growth will gradually slow 
from its pace of 4.3 percent in the past 3 years, to 3.3 
percent in 2000 and 3.1 percent in 2001, and then 2.6 percent 
between 2002 and 2004 before rising to about 2.9 percent. Table 
1 compares the forecasts of CBO with the Office of Management 
and Budget [OMB] and the Blue Chip's latest forecasts. Blue 
Chip forecasts, a survey of about 50 private forecasts, is 
commonly used to represent the consensus of private forecasts. 
They are, on average, slightly more optimistic than OMB and 
CBO, with higher growth for 2000 at 4.1 percent (instead of 
CBO's and OMB's 3.3 percent), as well as higher 5-year 
averages, topping 3 percent (instead of the 2.8 percent of CBO 
and OMB).
    Most analysts report no obvious signs of imbalance, and 
therefore believe no recession is likely in the forecast 
period. CBO agrees.
    After 2002, CBO's longer-term projections are based on 
trends in the labor force, productivity, and saving. For the 
period after 2002, CBO projects that the economy will grow 
between 2.6 percent and 3.1 percent, adjusted for inflation. 
Also, CBO's long-term projections assume that the FED will 
pursue a low-inflation environment that supports a rate of 
economic growth close to its long-term potential.

                        comparison of forecasts

    The CBO economic forecast is typically compared with that 
of OMB and the Blue Chip. Blue Chip Consensus reports averages 
for each forecast variable with no attempt to make them 
internally consistent, unlike CBO and OMB forecasts, which do.
    In the latest and recent past forecasts, OMB and CBO have 
been very close in their economic projections, well within the 
average errors of such forecasts. In the past 2 years, both 
have been conservative, underestimating the strength of the 
economy. Both assume that the economy will slow from its 
current pace in the next few years to about 2.5 percent by 
2003. Both have roughly the same average real growth rates, at 
about 2.8 percent over both 5 years and 10 years. Almost all 
variables are about the same except OMB has higher interest 
rates than CBO.

                     review of revenue projections

    In recent years, forecasters have generally underestimated 
growth of the economy and the tax base, and overestimated 
inflation and interest rates. Projections of persistent Federal 
deficits have turned into ever larger surpluses mainly on the 
basis of unexpectedly strong receipts in recent years. Revenues 
have outgrown GDP growth in the past 4 years by at least 2 
percent each year, so that the share of federal government in 
the economic output, 21.6 percent in 1999--one measure of the 
size of government--is currently a post-WWII record.
    CBO has continually revised its estimates of surpluses 
upward, due to growing revenue. About half or more of recent 
surplus improvements are due to the strength in revenues 
collected (rest is from lower outlays). In the projection 
period years, outlays are lower due to reduced debt service 
outlays from lower national debt and reductions in Medicare 
outlays. CBO also found significant improvement in long-term 
economic trends.
    Most of the surge in unexpected tax revenues has been in 
individual taxes, from stronger-than-expected personal income 
growth due to the economy, a rise in the effective tax rate, 
and continued high capital gains realizations, probably related 
to the boom in the stock market. CBO notes that the first two 
reasons may be why individual taxes are growing at twice the 
rate of personal incomes.

             why revenues should be higher in the near term

    There are reasons for optimism that near-term revenues will 
be higher than forecast, and some of these effects may appear 
in CBO's summer update. Among the reasons are the following:
--Although CBO assumes revenue growth of 6.5 percent for the 
    year, that growth was 8.6 percent at the beginning of the 
    year.
--Incomes are growing faster than expected. Corporate profits, 
    reflecting the stock market, and corporate earnings are 
    widely assumed to be improving.
--A vast pool of wealth has accumulated in recent years. 
    Households have improved their net worth, through stock 
    market gains and rising home values. This high stock of 
    wealth may sustain consumer spending. The realization of 
    stock market gains will increase capital gains tax 
    revenues.
--State tax receipts continue growing. For the fourth year, 
    States report revenues were 5.7 percent higher in 1999 than 
    1998, which in turn were 6.9 percent higher than the 
    previous year. This was true even as 19 States enacted tax 
    cuts.
--Individual withheld income taxes, reflecting the strength of 
    the economy, are growing at 7 percent. Tax liabilities will 
    grow faster than income because of the highly progressive 
    nature of the tax system.
--Recent favorable revenue developments may be more durable, 
    provided that sound fiscal, monetary, and regulatory 
    policies are pursued.

                                  TABLE 1.--COMPARISON OF ECONOMIC ASSUMPTIONS
                                           [Calendar years 2000-2010]
----------------------------------------------------------------------------------------------------------------
                                                                     Forecast                Projected
                                                          Actual -----------------------------------------------
                                                            1999   2000    2001    2002    2003    2004    2005
----------------------------------------------------------------------------------------------------------------
Real GDP (percent year over year):
    CBO.................................................     4.1     3.3     3.1     2.8     2.6     2.6     2.7
    OMB.................................................  ......     3.3     2.7     2.5     2.5     2.8     3.0
    Blue Chip...........................................  ......     4.1     3.1     2.8     2.8     3.3     3.3
GDP Price Index (percent year over year):
    CBO.................................................     1.4     1.6     1.6     1.7     1.7     1.7     1.7
    OMB.................................................  ......     1.6     2.0     2.0     2.0     2.0     2.0
    Blue Chip...........................................  ......     1.8     2.0     2.0     2.1     2.1     2.0
Consumer Price Inflation (percent year over year):
    CBO.................................................  ......     2.2     2.5     2.4     2.5     2.5     2.5
    OMB.................................................  ......     2.6     2.4     2.6     2.6     2.6     2.6
    Blue Chip...........................................  ......     2.6     2.6     2.6     2.6     2.5     2.4
Unemployment Rate (annual rate):
    CBO.................................................     4.2     4.1     4.2     4.4     4.7     4.8     5.0
    OMB.................................................  ......     4.2     4.5     5.0     5.2     5.2     5.2
    Blue Chip...........................................  ......     4.0     4.2     4.5     4.7     4.7     4.7
3-month Treasury Bills Rate (annual rate):
    CBO.................................................     4.6     5.4     5.6     5.3     4.9     4.8     4.8
    OMB.................................................  ......     5.2     5.2     5.2     5.2     5.2     5.2
    Blue Chip...........................................  ......     5.8     5.9     5.5     5.4     5.4     5.4
10-year Treasury Note rate (annual rate):
    CBO.................................................     5.7     6.3     6.4     6.1     5.8     5.7     5.7
    OMB.................................................  ......     6.1     6.1     6.1     6.1     6.1     6.1
    Blue Chip...........................................  ......     6.5     6.4     6.2     6.1     6.1     5.9
Corporate (Book)Profits (percent of GDP):
    CBO.................................................     9.1     8.6     8.2     7.8     7.6     7.4     7.3
    OMB.................................................  ......     8.7     8.2     7.8     7.4     7.3     7.3
Wage and Salary (percent of GDP):
    CBO.................................................    48.5    48.8    48.8    48.9    48.9    48.9    48.9
    OMB.................................................  ......    48.6    48.7    48.6    48.5    48.3   48.2
----------------------------------------------------------------------------------------------------------------
Sources: CBO, OMB, Blue Chip Economic Indicators (Mar. 10, 2000).


                                                 TABLE 2.--ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                                               [Calendar years 2000-2010]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2000    2001    2002    2003    2004    2005    2006    2007    2008    2009    2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
Real GDP (percent year over year):..............................     3.3     3.1     2.8     2.6     2.6     2.7     2.7     2.7     2.7     2.9     2.9
GDP Price Index (percent year over year):.......................     1.6     1.6     1.7     1.7     1.7     1.7     1.7     1.7     1.7     1.7     1.7
Consumer Price Inflation (percent year over year):..............     2.5     2.4     2.5     2.5     2.5     2.5     2.5     2.5     2.5     2.5     2.5
Unemployment Rate (annual rate):................................     4.1     4.2     4.4     4.7     4.8     5.0     5.0     5.1     5.2     5.2     5.2
3-month Treasury Bills Rate (annual rate):......................     5.4     5.6     5.3     4.9     4.8     4.8     4.8     4.8     4.8     4.8     4.8
10-year Treasury Note rate (annual rate):.......................     6.3     6.4     6.1     5.8     5.7     5.7     5.7     5.7     5.7     5.7     5.7
Corporate (Book) Profits (percent of GDP):......................     8.6     8.2     7.8     7.6     7.4     7.3     7.3     7.3     7.2     7.2     7.1
Wage and Salary (percent of GDP):...............................    48.8    48.8    48.9    48.9    48.9    48.9    48.9    48.8    48.8    48.8    48.8
--------------------------------------------------------------------------------------------------------------------------------------------------------

                 Factors Behind the Productivity Surge

    Most analysts believe that the productivity surge is due 
mainly to some combination of the following:

--An increase in capital per worker, especially from computer 
    and software.

--Increased quality of the workforce as education and 
    experience have increased.

--Productivity growth in the computer manufacturing sector, 
    reflected in lower prices.

--New efficiencies from computer technologies and 
    communications, especially from the Internet.

                      TABLE 3.--PRODUCTIVITY TRENDS
                              [Percentage]
------------------------------------------------------------------------
                                                   Average Annual Rate
                                               -------------------------
                                                   Actual     Projected
------------------------------------------------------------------------
1947-1973.....................................          2.7  ...........
1974-1999.....................................          1.5  ...........
1996-1999.....................................          2.6  ...........
CBO 2000-2010.................................  ...........          2.3
OMB 1999-2010.................................  ...........          2.0
------------------------------------------------------------------------

                    Benefits of Higher Productivity

    Higher productivity is the reason standards of living 
improve. It restrains inflation, allowing the unemployment rate 
to fall. It boosts stock market values and economic growth. 
Productivity improvements have led some to even suggest that 
the United States is much less subject to the business cycle, 
due to improved production and inventory systems, increased 
international competition and capacity, and rapid innovation.
    Labor productivity since 1996 has accelerated about 2.6 
percent per year instead of the 1.5-percent average per year 
since 1973. CBO assumes most of this recent acceleration is 
permanent, allowing for a ``trend productivity'' growth of 2.3 
percent. (Trend productivity is a calculated number of what the 
potential or cyclically adjusted labor productivity might be. 
It includes the contribution fromcapital in addition to labor 
productivity and is the productivity that matters for the long range.) 
This implies a potential growth rate of about 3.1 percent.
    The continuation of the economic performance in 1999 gives 
further support to the possibility that there is indeed a 
structural shift in the economy as ``New Era'' proponents have 
long suggested. Many believe there are important structural 
shifts in the economy related to technology and globalization 
that has enabled more production and less constraint from 
capacity that might explain the current economic performance of 
high growth with low inflation.
    To be sure, good fiscal and monetary policy are crucial in 
setting a stable economic climate for allowing the private 
sector to do its job of raising living standards. The economy 
may be less cyclical and more competitive, hence more capable 
of delivering better growth and unemployment performance 
consistent with stable low inflation. The list of favorable 
trends, many which are complementary and have been ongoing for 
a long time, is extensive and includes the following:

--Advances in technology, especially information and 
    biotechnology--led mainly by the United States--are 
    powering a new age of information.

--Corporations have become much more efficient. The trend in 
    corporate governance now that emphasizes shareholder value 
    is also cited as an important factor to help align managers 
    interests with those of shareholders.

--Global inflation has been stable or declining.

--Globalization, which has greatly increased potential markets 
    and made production more flexible, especially in location 
    of plants and in the ability to outsourcing supplies. This 
    has kept inflation low and increased competition.

--International financial markets are becoming increasing 
    deregulated and becoming more integrated, supporting huge 
    flows of capital, aided by information technology.

--The end of the cold war has lowered risks associated with 
    international investing.

--The end of Federal budget deficits over the projected period 
    eased pressure on interest rates, although long-term 
    structural imbalances in the budget remain due to 
    Government entitlement programs.

    All of these factors should result in higher trend 
productivity levels and growth rates but are as yet difficult 
to disentangle in economic statistics. Confounding the critics, 
the high levels of labor productivity in the past 2 years have 
continued, rather than dissipating as in the past. This may be 
evidence that the payoff from many of these trends, especially 
the huge investment in information technology is finally paying 
off, that this rebound is not a normal cyclical event. 
Measurement problems in productivity, especially in the service 
sectors such as banking and insurance where the output may be 
hard to define, is also cited.
                     Function 050: National Defense

                              ----------                              


                            FUNCTION SUMMARY

    The National Defense function includes funds to develop, 
maintain, and equip the military forces of the United States. 
Roughly 95 percent of the funding in this function goes to 
Department of Defense-military activities, including funds for 
ballistic missile defense. That component also includes pay and 
benefits for military and civilian personnel; research, 
development, testing, and evaluation; procurement of weapons 
systems; military construction and family housing; and 
operations and maintenance of the defense establishment. The 
remaining funding in the function goes toward atomic energy 
defense activities of the Department of Energy, and other 
defense-related activities.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$307.3 billion in budget authority [BA] and $298.6 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$1,590.7 billion in BA and $1,559.1 billion in outlays. 
Mandatory spending in this function would be -$1.0 billion in 
BA and -$1.0 billion in outlays in fiscal year 2001, and -$4.4 
billion in BA and outlays over 5 years.

                     FUNCTION 050: NATIONAL DEFENSE
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................        306.3      1,586.3
Outlays.......................................        297.6      1,554.7
------------------------------------------------------------------------

                  Function 150: International Affairs

                              ----------                              


                            FUNCTION SUMMARY

    Funds distributed through the International Affairs 
function provide for international development and humanitarian 
assistance; international security assistance; the conduct of 
foreign affairs; foreign information and exchange activities; 
and international financial programs. The major departments and 
agencies in this function include the Department of State, the 
Department of the Treasury, and the Agency for International 
Development.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$19.7 billion in budget authority [BA] and $21.3 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$94.4 billion in BA and $99.0 billion in outlays. Mandatory 
spending in this function would be -$0.2 billion in BA and 
-$4.0 billion in outlays in fiscal year 2001, and a net of zero 
in BA and -$18.4 billion in outlays over 5 years.

                   FUNCTION 150: INTERNATIONAL AFFAIRS
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         19.5         94.4
Outlays.......................................         17.3         80.6
------------------------------------------------------------------------

          Function 250: General Science, Space, and Technology

                              ----------                              


                            FUNCTION SUMMARY

    The General Science, Space, and Technology function 
consists of funds in two major categories: general science and 
basic research, and space flight, research, and supporting 
activities. The general science component includes the budgets 
for the National Science Foundation [NSF], and the fundamental 
science programs of the Department of Energy [DOE]. But the 
largest component of the function--about two-thirds of its 
total--is for space flight, research, and supporting activities 
of the National Aeronautics and Space Administration [NASA] 
(except for NASA's air transportation programs, which are 
included in Function 400).

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$19.7 billion in budget authority [BA] and $19.2 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$100.0 billion in BA and $97.7 billion in outlays. Mandatory 
spending in this function would be $0.1 billion in BA and $0.1 
billion in outlays in fiscal year 2001, and $0.1 billion in BA 
and $0.2 billion in outlays over 5 years.

          FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         19.8        100.1
Outlays.......................................         19.3         97.9
------------------------------------------------------------------------

                          Function 270: Energy

                              ----------                              


                            FUNCTION SUMMARY

    The Energy function reflects the civilian activities in the 
Department of Energy. Through this function, spending is 
provided for energy supply programs; rural electricity and 
telecommunications loans, administered through the Department 
of Agriculture; and electric power generation and transmission 
programs for the three Power Marketing Administrations. The 
function also provides funds for energy conservation programs; 
emergency energy preparedness; and energy information, policy, 
and regulation programs, and the operations of the Nuclear 
Regulatory Commission, which oversees the nuclear power 
industry.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$2.8 billion in budget authority [BA] and outlays in fiscal 
year 2001. The 5-year spending totals are $12.2 billion in BA 
and $12.6 billion in outlays. Mandatory spending in this 
function would be -$1.6 billion in BA and -$2.9 billion in 
outlays in fiscal year 2001, and -$9.1 billion in BA and -$15.6 
billion in outlays over 5 years.

                          FUNCTION 270: ENERGY
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................          1.2          3.1
Outlays.......................................         -0.1         -3.0
------------------------------------------------------------------------

            Function 300: Natural Resources and Environment

                              ----------                              


                            FUNCTION SUMMARY

    Funds distributed through the Natural Resources and 
Environment function are intended to develop, manage, and 
maintain the Nation's natural resources, and to promote a clean 
environment. Funding is provided for water resources, 
conservation and land management, recreational resources, 
pollution control and abatement, and other natural resources. 
The major departments and agencies in this function are the 
Department of the Interior, including the National Park 
Service, the Bureau of Land Management, the Bureau of 
Reclamation, and the Fish and Wildlife Service; certain 
agencies in the Department of Agriculture, including 
principally the Forest Service; the National Oceanic and 
Atmospheric Administration [NOAA], in the Department of 
Commerce; the Army Corps of Engineers; and the Environmental 
Protection Agency.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$24.3 billion in budget authority [BA] and $24.1 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$122.5 billion in BA and $122.0 billion in outlays. Mandatory 
spending in this function would be $0.7 billion in BA and $0.7 
billion in outlays in fiscal year 2001, and $3.5 billion in BA 
and $3.4 billion in outlays over 5 years. The budget provides 
additional funds each year for a healthy, clean, and safe 
environment. In addition, the budget resolution assumes that 
the program of Pacific Northwest salmon recovery should be made 
a high-priority item.

             FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         25.0        126.0
Outlays.......................................         24.8        125.4
------------------------------------------------------------------------

                       Function 350: Agriculture

                              ----------                              


                            FUNCTION SUMMARY

    The Agriculture function includes funds for direct 
assistance and loans to food and fiber producers, export 
assistance, market information and inspection services, and 
agricultural research and services.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$4.5 billion in budget authority [BA] and $4.4 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$22.5 billion in BA and $22.0 billion in outlays. Mandatory 
spending in this function would be $14.6 billion in BA and 
$12.5 billion in outlays in fiscal year 2001, and $65.5 billion 
in BA and $57.2 billion in outlays over 5 years.
    The budget provides $6 billion in immediate income 
assistance to the Nation's farmers, as well as Federal crop 
insurance reform.

                        FUNCTION 350: AGRICULTURE
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         19.1         88.0
Outlays.......................................         16.9         79.2
------------------------------------------------------------------------

               Function 370: Commerce and Housing Credit

                              ----------                              


                            FUNCTION SUMMARY

    The mortgage credit component of this function includes 
housing assistance through the Federal Housing Administration 
[FHA], and rural housing programs of the Department of 
Agriculture. The function includes spending for deposit 
insurance activities related to banks, thrifts, and credit 
unions. Also included is funding for the Commerce Department's 
National Institute of Standards and Technology, including the 
Advanced Technology Program [ATP] and the Manufacturing 
Extension Program [MEP]; the National Telecommunications and 
Information Administration; the Bureau of the Census; and 
independent agencies such as the Securities and Exchange 
Commission, the Commodity Futures Trading Commission, and the 
Federal Communications Commission.
    The function also includes net spending for the postal 
service, but these totals are off budget, and therefore are not 
reflected in the figures below.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The on-budget totals for this function are as follows: For 
discretionary spending, the budget resolution calls for $2.7 
billion in budget authority [BA] and $3.2 billion in outlays in 
fiscal year 2001. The 5-year spending totals are $15.0 billion 
in BA and $15.3 billion in outlays. Mandatory spending in this 
function would be $3.6 billion in BA and -$0.9 billion in 
outlays in fiscal year 2001, and $36.6 billion in BA and $15.0 
billion in outlays over 5 years.

                FUNCTION 370: COMMERCE AND HOUSING CREDIT
               [On-budget totals, in billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................          6.3         51.6
Outlays.......................................          2.3         30.3
------------------------------------------------------------------------

                      Function 400: Transportation

                              ----------                              


                            FUNCTION SUMMARY

    This function supports all major Federal transportation 
programs. About two-thirds of the funding provided here is for 
ground transportation programs. This includes the Federal-aid 
highway program, and mass transit operating and capital 
assistance. Also under ground transportation are rail 
transportation through the National Rail Passenger Corporation 
[Amtrak], and high-speed rail and rail safety programs. 
Additional components of this function are air transportation, 
including the Federal Aviation Administration [FAA] airport 
improvement program, the facilities and equipment program, and 
the operation of the air traffic control system; water 
transportation through the Coast Guard and the Maritime 
Administration; and other transportation support activities. 
Funds for air transportation programs under the auspices of 
NASA are distributed through this function as well.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$15.7 billion in budget authority [BA] and $48.2 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$82.4 billion in BA and $258.4 billion in outlays. Mandatory 
spending in this function would be $43.5 billion in BA and $2.1 
billion in outlays in fiscal year 2001, and $210.6 billion in 
BA and $9.4 billion in outlays over 5 years.

                      FUNCTION 400: TRANSPORTATION
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         59.2        293.0
Outlays.......................................         50.3        267.8
------------------------------------------------------------------------

            Function 450: Community and Regional Development

                              ----------                              


                            FUNCTION SUMMARY

    The Community and Regional Development function reflects 
programs that provide Federal funding for economic and 
community development in both urban and rural areas. Funding 
for disaster relief and insurance--including activities of the 
Federal Emergency Management Agency--also are provided in this 
function.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$9.1 billion in budget authority [BA] and $11.7 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$43.1 billion in BA and $49.0 billion in outlays. Mandatory 
spending in this function would be a net of zero in BA and 
-$0.6 billion in outlays in fiscal year 2001, and -$0.2 billion 
in BA and -$3.3 billion in outlays over 5 years.

            FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................          9.1         42.9
Outlays.......................................         11.1         45.7
------------------------------------------------------------------------

   Function 500: Education, Training, Employment, and Social Services

                              ----------                              


                            FUNCTION SUMMARY

    Forty-five percent of the funding in the Education, 
Training, Employment, and Social Services function is for 
Federal programs in elementary, secondary, and vocational 
education. Also shown here are funds for higher education 
programs, accounting for about 23 percent of the function's 
spending; research and general education aids, including the 
National Endowment for the Arts and the National Endowment for 
the Humanities; training and employment services; other labor 
services; and grants to States for general social services and 
rehabilitation services, such as the Social Services Block 
Grant and vocational rehabilitation.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$56.8 billion in budget authority [BA] and $52.9 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$293.6 billion in BA and $281.1 billion in outlays. Mandatory 
spending in this function would be $15.8 billion in BA and 
$16.3 billion in outlays in fiscal year 2001, and $81.9 billion 
in BA and $81.1 billion in outlays over 5 years.
    The top priority of this education budget is the 
Individuals with Disabilities Education Act [IDEA]. It is the 
Committee's view that the Congress and the President should 
together reach an agreement on meeting the commitment to 
appropriate 40 percent of the national per-pupil expenditure 
for children with disabilities by a date certain. The budget 
also promotes higher quality education through greater 
decision-making control and flexibility for States and 
localities, and rejects the President's cuts in Title VI, 
Impact Aid, and student loan programs.

   FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         72.6        375.5
Outlays.......................................         69.2        362.2
------------------------------------------------------------------------

                          Function 550: Health

                              ----------                              


                            FUNCTION SUMMARY

    The Health function consists of health care services, 
including Medicaid, the Nation's major program covering medical 
and long-term care costs for low-income persons; health 
research and training; and consumer and occupational health and 
safety. Medicaid represents about 88 percent of the spending in 
this function.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$34.9 billion in budget authority [BA] and $33.9 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$179.9 billion in BA and $173.3 billion in outlays. Mandatory 
spending in this function would be $134.8 billion in BA and 
$133.2 billion in outlays in fiscal year 2001, and $788.2 
billion in BA and $787.6 billion in outlays over 5 years.

                          FUNCTION 550: HEALTH
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................        169.7        968.1
Outlays.......................................        167.1        960.9
------------------------------------------------------------------------

                         Function 570: Medicare

                              ----------                              


                            FUNCTION SUMMARY

    This function reflects the Medicare Part A Hospital 
Insurance [HI] Program, Part B Supplementary Medical Insurance 
[SMI] Program, and premiums paid by qualified aged and disabled 
beneficiaries. It includes the ``Medicare+Choice'' Program, 
which covers Part A and Part B benefits and allows 
beneficiaries to choose certain private health insurance plans. 
Medicare+Choice plans may include health maintenance 
organizations, preferred provider organizations, provider-
sponsored organizations, medical savings accounts (up to 
390,000 covered individuals), and private fee-for-service 
plans. These plans may add benefits such as outpatient 
prescription drug coverage, and may cover premiums, copayments, 
and deductibles required by the traditional Medicare Program.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the resolution calls for $3.1 
billion in budget authority [BA] and $3.1 billion in outlays in 
fiscal year 2001. The 5-year spending totals are $15.5 billion 
in BA and $15.5 billion in outlays. Mandatory spending would be 
$212.6 billion in BA and $212.9 billion in outlays in fiscal 
year 2001, and $1,195.5 billion in BA and $1,195.8 billion in 
outlays over 5 years.

                         FUNCTION 570: MEDICARE
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................        215.7      1,211.0
Outlays.......................................        216.0      1,211.3
------------------------------------------------------------------------

    The resolution creates a $40-billion reserve fund for 
Medicare reform and prescription drugs. It rejects the 
President's proposed $16-billion cut in Medicare provider 
payments; his $2.2 billion in additional out-of-pocket costs 
for Medicare beneficiaries; his $1.8 billion in additional fees 
on doctors, hospitals, and other providers; and his cuts to 
prescription drugs needed by cancer and kidney dialysis 
patients.
                     Function 600: Income Security

                              ----------                              


                            FUNCTION SUMMARY

    The Income Security function covers most of the Federal 
Government's income support programs. The function includes 
general retirement and disability insurance (excluding Social 
Security)--mainly through the Pension Benefit Guaranty 
Corporation [PBGC]--and benefits to railroad retirees. Other 
components are Federal employee retirement and disability 
benefits (including military retirees); unemployment 
compensation; low-income housing assistance; food and nutrition 
assistance; and other income security programs. This last 
category includes Temporary Assistance to Needy Families 
[TANF], the Government's principal welfare program; 
Supplemental Security Income [SSI]; and spending for the 
refundable portion of the Earned Income Credit [EIC]. Agencies 
involved in these programs include the Departments of 
Agriculture, Health and Human Services, Housing and Urban 
Development, and Education; the Social Security Administration 
(for SSI); and the Office of Personnel Management (for Federal 
retirement benefits).

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$35.2 billion in budget authority [BA] and $41.9 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$189.4 billion in BA and $211.1 billion in outlays. Mandatory 
spending in this function would be $217.0 billion in BA and 
$213.0 billion in outlays in fiscal year 2001, and $1,173.6 
billion in BA and $1,160.6 billion in outlays over 5 years.

                      FUNCTION 600: INCOME SECURITY
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................        252.2      1,363.0
Outlays.......................................        254.9      1,371.7
------------------------------------------------------------------------

                     Function 650: Social Security

                              ----------                              


                            FUNCTION SUMMARY

    Function 650 consists of the Social Security Program, or 
Old Age, Survivors, and Disability Insurance [OASDI]. It is the 
largest budget function in terms of outlays, and provides funds 
for the Government's largest entitlement program. Under 
provisions of the Budget Enforcement Act, Social Security trust 
funds are off budget, and therefore are not reflected in the 
figures below. The administrative expenses of the Social 
Security Administration [SSA], which manages the program, are 
on budget.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The on-budget totals for this function are as follows: For 
discretionary spending, the budget resolution calls for $3.4 
billion in budget authority [BA] and $3.3 billion in outlays in 
fiscal year 2001. The 5-year spending totals are $17.5 billion 
in BA and $17.2 billion in outlays. Mandatory spending in this 
function would be $9.7 billion in BA and $9.7 billion in 
outlays in fiscal year 2001, and $60.2 billion in BA and $60.2 
billion in outlays over 5 years.

                      FUNCTION 650: SOCIAL SECURITY
               [On-budget totals, in billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         13.0         77.7
Outlays.......................................         13.1         74.4
------------------------------------------------------------------------

              Function 700: Veterans Benefits and Services

                              ----------                              


                            FUNCTION SUMMARY

    The Veterans Benefits and Services function reflects 
funding for the Department of Veterans Affairs [VA], which 
provides benefits to veterans who meet various eligibility 
rules. Benefits range from income security for veterans; 
veterans education, training, and rehabilitation services; and 
hospital and medical care for veterans. There were about 24.4 
million veterans and more than 40 million members of their 
families as of 1 July 1999.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    Total funding for VA programs is $47.8 billion for fiscal 
year 2001. The budget includes a $100-million increase for 
veterans' medical care above the level requested in the 
President's fiscal year 2001 budget. In addition, the 
resolution assumes continued authority for the VA to spend 
receipts associated with the furnishing of medical care.
    For discretionary spending, the budget resolution calls for 
$22.2 billion in budget authority [BA] and $22.0 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$115.0 billion in BA and $114.3 billion in outlays. Mandatory 
spending in this function would be $25.6 billion in BA and 
$25.4 billion in outlays in fiscal year 2001, and $139.9 
billion in BA and $139.2 billion in outlays over 5 years.

              FUNCTION 700: VETERANS BENEFITS AND SERVICES
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         47.8        254.9
Outlays.......................................         47.8        253.5
------------------------------------------------------------------------

                Function 750: Administration of Justice

                              ----------                              


                            FUNCTION SUMMARY

    The first component of the Administration of Justice 
function consists of funding for Federal law enforcement 
activities. This includes criminal investigations by the 
Federal Bureau of Investigation [FBI] and the Drug Enforcement 
Administration [DEA], and border enforcement and the control of 
illegal immigration by the Customs Service and Immigration and 
Naturalization Service [INS]. Also funded through this function 
are the Federal courts; Federal prison construction; and 
criminal justice assistance.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$26.9 billion in budget authority [BA] and $27.1 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$136.8 billion in BA and $136.6 billion in outlays. Mandatory 
spending in this function would be $1.1 billion in BA and $0.9 
billion in outlays in fiscal year 2001, and $3.5 billion in BA 
and $3.3 billion in outlays over 5 years.

                 FUNCTION 750: ADMINISTRATION OF JUSTICE
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         28.0        140.3
Outlays.......................................         28.0        139.9
------------------------------------------------------------------------

                    Function 800: General Government

                              ----------                              


                            Function Summary

    The General Government function consists of the activities 
of the Legislative Branch; the Executive Office of the 
President; general tax collection and fiscal operations of the 
Department of Treasury (including the Internal Revenue 
Service); the property and personnel costs of the General 
Services Administration and the Office of Personnel Management; 
general purpose fiscal assistance to States, localities, the 
District of Columbia, and U.S. territories; and other general 
Government activities. The Internal Revenue Service accounts 
for about half of the spending in this function.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$12.4 billion in budget authority [BA] and $13.0 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
$62.0 billion in BA and $63.1 billion in outlays. Mandatory 
spending in this function would be $1.2 billion in BA and $1.2 
billion in outlays in fiscal year 2001, and $5.8 billion in BA 
and $5.9 billion in outlays over 5 years.

                    FUNCTION 800: GENERAL GOVERNMENT
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         13.6         67.8
Outlays.......................................         14.2         69.0
------------------------------------------------------------------------

                       Function 900: Net Interest

                              ----------                              


                            FUNCTION SUMMARY

    Net Interest is the interest paid for the Federal 
Government's borrowing. Function 900 is a mandatory payment, 
with no discretionary components.

                       FUNCTION 900: NET INTEREST
                        (In billions of dollars)
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................        288.5      1,420.8
Outlays.......................................        288.5      1,420.8
------------------------------------------------------------------------

                        Function 920: Allowances

                              ----------                              


                            function summary

    The Allowances function is used for planning purposes to 
address the budgetary effects of proposals or assumptions that 
cross various other budget functions. Once such changes are 
enacted, the budgetary effects are distributed to the 
appropriate budget functions.

               summary of committee--reported resolution

    For discretionary spending, the budget resolution calls for 
-$4.2 billion in budget authority [BA] and -$8.6 billion in 
outlays in fiscal year 2001. The 5-year spending totals are 
-$12.2 billion in BA and -$15.2 billion in outlays.

                        FUNCTION 920: ALLOWANCES
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................         -4.2        -12.2
Outlays.......................................         -8.6        -15.2
------------------------------------------------------------------------

            Function 950: Undistributed Offsetting Receipts

                              ----------                              


                            function summary

    Receipts recorded in this function are either 
intrabudgetary (a payment from one Federal agency to another, 
such as agency payments to the retirement trust funds) or 
proprietary (a payment from the public for some kind of 
business transaction with the Government). The main types of 
receipts recorded in this function are: the payments Federal 
employees and agencies make to employee retirement trust funds; 
payments made by companies for the right to explore and produce 
oil and gas on the Outer Continental Shelf; and payments by 
those who bid for the right to buy or use public property or 
resources, such as the electromagnetic spectrum. These receipts 
are treated as negative spending.

                summary of committee-reported resolution

    There is no discretionary spending in this function. 
Mandatory spending in this function would be -$38.4 billion in 
BA and outlays in fiscal year 2001, and -$197.7 billion in BA 
and outlays over 5 years.

             FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS
                        [In billions of dollars]
------------------------------------------------------------------------
                                                    2001      2001-2005
------------------------------------------------------------------------
Budget Authority..............................        -38.4       -197.7
Outlays.......................................        -38.4       -197.7
------------------------------------------------------------------------


                                REVENUES

                              ----------                              


                            function summary

    The Revenues function reflects all of the Federal 
Government's various tax receipts. This includes individual 
income taxes; corporate income taxes; social insurance taxes, 
such as the Social Security payroll tax; excise taxes, such as 
the gasoline tax; and other taxes, such as estate and gift 
taxes.

                summary of committee-reported resolution

    This budget provides tax relief and fairness for families, 
small businesses, and farmers. It repeals the marriage penalty 
and gives assistance with health insurance and health care.
    Total Federal revenues are at 20.0 percent of Gross 
Domestic Product [GDP] this year, and are expected to rise to 
20.4 percent in the coming year. In only one year--1944 when 
American forces liberated Europe--has America ever claimed a 
higher portion of GDP for taxes. Tax revenues were 17.6 percent 
of GDP in 1993, the year President Clinton signed his $268-
billion tax increase.
    The Congressional Budget Office estimated that in 1995 
almost 27 million married couples paid a marriage penalty that 
averaged $1,200. In addition, the marriage penalty was 
estimated to drive down work effort and to further reduce a 
couple's earnings by an additional 1 percent. It is clearly 
unfair that people pay higher taxes just because they are 
married. This resolution calls for elimination of this perverse 
marriage penalty.
    This budget provides for eliminating the marriage penalty, 
and allows Congress to provide other assistance to families, 
small businesses, and farmers. It repeals the unfair Social 
Security earnings test, which penalizes seniors who want to 
work. The budget also leaves room for education assistance, a 
phaseout of the death tax, and incentives for health insurance 
and health care.
    Over 5 years, the budget provides for at least $150 billion 
in tax cuts. The budget provides $10 billion in tax relief in 
fiscal year 2001 alone. In addition, it creates a $50-billion 
reserve dedicated to either additional tax relief or additional 
debt relief. The resolution also allows for any future 
increases in the non-Social Security surplus to be added to 
this fund.
    In contrast, the President and Vice President would impose 
$10 billion in net tax increases in fiscal year 2001.

                                REVENUES
                        [In billions of dollars]
------------------------------------------------------------------------
                                               2001          2001-2005
------------------------------------------------------------------------
Total Revenues..........................         2,006.3        10,763.2
------------------------------------------------------------------------


    FISCAL YEAR 2001 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE TOTAL SPENDING AND REVENUES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                      2000       2001       2002       2003       2004       2005     2001-2005
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY
Total Spending:
    BA...........................    1,801.8    1,856.6    1,897.4    1,952.8    2,012.5    2,082.5      9,801.8
    O............................    1,784.0    1,823.3    1,876.5    1,930.7    1,989.6    2,059.5      9,679.6
    On-Budget:
        BA.......................    1,475.1    1,520.7    1,554.6    1,600.8    1,651.2    1,709.9      8,037.2
        O........................    1,457.3    1,487.5    1,533.7    1,578.8    1,628.4    1,686.9      7,915.3
    Off-Budget:
        BA.......................      326.7      335.9      342.8      352.0      361.3      372.6      1,764.6
        O........................      326.7      335.8      342.8      351.9      361.2      372.6      1,764.3
Revenues
    Total........................    1,945.1    2,006.3    2,074.3    2,145.7    2,220.5    2,316.4     10,763.2
    On-Budget....................    1,465.5    1,504.8    1,549.4    1,598.5    1,650.6    1,719.1      8,022.4
    Off-Budget...................      479.6      501.5      524.9      547.2      569.9      597.3      2,740.8
Surplus/Deficit (-)
    Total........................      161.1      183.0      197.8      215.0      230.9      256.9      1,083.6
    On-Budget....................        8.2       17.3       15.7       19.7       22.2       32.2        107.1
    Off-Budget...................      152.9      165.7      182.1      195.3      208.7      224.7        976.5
Debt Held by the Public (end of      3,470.3    3,300.0    3,107.8    2,904.3    2,684.3    2,437.0           na
 year)...........................
Debt Subject to Limit (end of        5,640.3    5,710.6    5,787.4    5,870.3    5,946.1    6,010.8           na
 year)...........................

                                                   BY FUNCTION
National Defense (050):
    BA...........................      288.9      306.3      309.3      315.6      323.4      331.7      1,586.3
    O............................      282.5      297.6      302.0      309.4      317.6      328.1      1,554.7
International Affairs (150):
    BA...........................       20.1       19.5       19.3       18.8       18.3       18.5         94.4
    O............................       15.5       17.3       17.2       16.1       15.2       14.8         80.6
General Science, Space, and
 Technology (250):
    BA...........................       19.3       19.8       19.9       20.0       20.1       20.3        100.1
    O............................       18.5       19.3       19.6       19.6       19.6       19.8         97.9
Energy (270):
    BA...........................        1.1        1.2        0.7        0.5        0.4        0.3          3.1
    O............................       -0.6       -0.1       -0.4       -0.7       -0.9       -0.9         -3.0
Natural Resources and Environment
 (300):
    BA...........................       24.3       25.0       25.1       25.2       25.3       25.4        126.0
    O............................       24.2       24.8       25.1       25.2       25.2       25.1        125.4
Agriculture (350):
    BA...........................       35.7       19.1       18.5       17.6       17.0       15.8         88.0
    O............................       34.3       16.9       16.7       15.9       15.5       14.2         79.2
Commerce and Housing Credit
 (370):
    BA...........................        8.5        6.9        9.0       10.3       13.6       13.5         53.3
    O............................        4.1        2.9        5.3        5.5        8.7        9.6         32.0
    On-budget:
        BA.......................        7.5        6.3        8.7        9.5       13.6       13.5         51.6
        O........................        3.1        2.3        5.0        4.7        8.7        9.6         30.3
    Off-budget:
        BA.......................        1.0        0.6        0.3        0.8         --         --          1.7
        O........................        1.0        0.6        0.3        0.8         --         --          1.7
Transportation (400):
    BA...........................       54.3       59.2       57.4       58.8       58.8       58.8        293.0
    O............................       46.6       50.3       52.5       54.8       55.1       55.1        267.8
Community and Regional Development (450):
    BA...........................       11.2        9.1        8.5        8.4        8.4        8.5         42.9
    O............................       10.8       11.1        9.7        8.8        8.3        7.8         45.7
Education, Training, Employment and Social Services (500):
    BA...........................       57.7       72.6       74.0       75.0       76.1       77.8        375.5
    O............................       61.4       69.2       72.1       73.2       73.5       74.2        362.2
Health (550):
    BA...........................      159.3      169.7      179.6      191.5      205.6      221.7        968.1
    O............................      152.3      167.1      177.9      190.6      205.0      220.3        960.9
Medicare (570):
    BA...........................      199.6      215.7      221.6      239.7      255.3      278.7      1,211.0
    O............................      199.5      216.0      221.6      239.5      255.5      278.7      1,211.3
Income Security (600):
    BA...........................      238.4      252.2      263.0      272.1      281.7      294.0      1,363.0
    O............................      248.0      254.9      264.3      273.4      283.2      295.9      1,371.7
Social Security (650):
    BA...........................      405.0      422.8      443.0      463.8      486.0      510.1      2,325.7
    O............................      405.0      422.7      443.0      463.7      485.9      510.1      2,325.4
    On-budget:
        BA.......................       11.5        9.7       11.6       12.3       13.0       13.8         60.4
        O........................       11.5        9.7       11.6       12.3       13.0       13.8         60.4
    Off-budget \1\:
        BA.......................      393.5      413.1      431.4      451.5      473.0      496.3      2,265.3
        O........................      393.5      413.0      431.4      451.4      472.9      496.3      2,265.0
Veterans Benefits and Services (700):
    BA...........................       46.0       47.8       49.0       50.8       52.0       55.3        254.9
    O............................       45.2       47.4       48.9       50.6       51.7       54.9        253.5
Administration of Justice (750):
    BA...........................       27.3       28.0       27.8       27.9       28.2       28.4        140.3
    O............................       28.0       28.0       28.0       27.9       27.9       28.1        139.9
General Government (800):
    BA...........................       13.9       13.6       13.6       13.5       13.5       13.6         67.8
    O............................       14.7       14.2       13.9       13.7       13.7       13.5         69.0
Net Interest (900):
    BA...........................      224.6      219.0      209.9      195.0      179.4      162.6        965.9
    O............................      224.6      219.0      209.9      195.0      179.4      162.6        965.9
    On-budget:
        BA.......................      284.6      288.5      290.0      285.8      281.0      275.5      1,420.8
        O........................      284.6      288.5      290.0      285.8      281.0      275.5      1,420.8
    Off-budget:
        BA.......................      -60.0      -69.5      -80.1      -90.8     -101.6     -112.9       -454.9
        O........................      -60.0      -69.5      -80.1      -90.8     -101.6     -112.9       -454.9
Allowances (920) \2\:
    BA...........................        8.5       -4.2       -1.5       -1.7       -2.3       -2.5        -12.2
    O............................       11.5       -8.6       -0.5       -1.4       -2.2       -2.5        -15.2
Undistributed Offsetting Receipts (950):
    BA...........................      -41.8      -46.7      -50.2      -50.2      -48.2      -50.1       -245.4
    O............................      -41.8      -46.7      -50.2      -50.2      -48.2      -50.1       -245.4
    On-budget:
        BA.......................      -34.1      -38.4      -41.3      -40.7      -38.1      -39.2       -197.7
        O........................      -34.1      -38.4      -41.3      -40.7      -38.1      -39.2       -197.7
    Off-budget:
        BA.......................       -7.7       -8.3       -8.9       -9.5      -10.1      -10.9        -47.7
        O........................       -7.7       -8.3       -8.9       -9.5      -10.1      -10.9        -47.7
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Includes administrative expenses.
\2\ Includes the Administration's FY 2000 request for supplemental appropriations.


       FISCAL YEAR 2001 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE DISCRETIONARY SPENDING
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                           2000      2001      2002      2003      2004      2005     2001-2005
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY

Total Discretionary Spending:
    BA.................................     578.2     596.5     607.4     615.9     624.9     635.6      3,080.3
    O..................................     615.2     622.1     639.3     648.3     655.6     666.7      3,232.0
    Defense:
        BA.............................     289.9     307.3     310.2     316.5     324.2     332.5      1,590.7
        O..............................     283.5     298.6     302.9     310.3     318.4     328.9      1,559.1
    Nondefense:
        BA.............................     288.3     289.2     297.2     299.4     300.7     303.1      1,489.6
        O..............................     331.7     323.5     336.4     338.0     337.2     337.8      1,672.9

                                                   BY FUNCTION

National Defense (050):
    BA.................................     289.9     307.3     310.2     316.5     324.2     332.5      1,590.7
    O..................................     283.5     298.6     302.9     310.3     318.4     328.9      1,559.1
International Affairs (150):
    BA.................................      22.3      19.7      19.3      18.8      18.3      18.3         94.4
    O..................................      20.1      21.3      21.0      19.8      18.7      18.2         99.0
General Science, Space, and Technology
 (250):
    BA.................................      19.2      19.7      19.9      20.0      20.1      20.3        100.0
    O..................................      18.4      19.2      19.5      19.5      19.6      19.8         97.7
Energy (270):
    BA.................................       2.6       2.8       2.6       2.4       2.2       2.2         12.2
    O..................................       3.0       2.8       2.7       2.5       2.3       2.3         12.6
Natural Resources and Environment
 (300):
    BA.................................      24.0      24.3      24.4      24.5      24.6      24.7        122.5
    O..................................      23.7      24.1      24.4      24.5      24.5      24.5        122.0
Agriculture (350):
    BA.................................       4.5       4.5       4.5       4.5       4.5       4.5         22.5
    O..................................       4.5       4.4       4.4       4.4       4.4       4.4         22.0
Commerce and Housing Credit (370):
    BA.................................       6.9       2.7       3.1       3.1       3.1       3.0         15.0
    O..................................       7.3       3.2       3.0       3.0       3.1       3.0         15.3
    On-budget:
        BA.............................       6.9       2.7       3.1       3.1       3.1       3.0         15.0
        O..............................       7.3       3.2       3.0       3.0       3.1       3.0         15.3
    Off-budget:
        BA.............................  ........  ........  ........  ........  ........  ........  ...........
        O..............................  ........  ........  ........  ........  ........  ........  ...........
Transportation (400):
    BA.................................      14.4      15.7      16.3      16.8      16.8      16.8         82.4
    O..................................      44.3      48.2      50.8      52.9      53.2      53.3        258.4
Community and Regional Development
 (450):
    BA.................................      11.4       9.1       8.5       8.5       8.5       8.5         43.1
    O..................................      11.5      11.7      10.3       9.5       9.0       8.5         49.0
Education, Training, Employment and
 Social Services (500):
    BA.................................      44.5      56.8      57.7      58.7      59.7      60.7        293.6
    O..................................      49.1      52.9      55.8      57.2      57.5      57.7        281.1
Health (550):
    BA.................................      33.7      34.9      35.5      36.0      36.5      37.0        179.9
    O..................................      28.9      33.9      33.8      34.7      35.2      35.7        173.3
Medicare (570):
    BA.................................       3.1       3.1       3.1       3.1       3.1       3.1         15.5
    O..................................       3.1       3.1       3.1       3.1       3.1       3.1         15.5
Income Security (600):
    BA.................................      29.9      35.2      38.3      38.5      38.6      38.8        189.4
    O..................................      42.4      41.9      42.2      42.2      42.3      42.5        211.1
Social Security (650):
    BA.................................       3.2       3.4       3.4       3.5       3.6       3.6         17.5
    O..................................       3.2       3.3       3.4       3.4       3.5       3.6         17.2
    On-budget:
        BA.............................  ........  ........  ........  ........  ........  ........          0.1
        O..............................  ........  ........  ........  ........  ........  ........          0.1
    Off-budget \1\:
        BA.............................       3.2       3.4       3.4       3.5       3.6       3.6         17.4
        O..............................       3.2       3.3       3.4       3.4       3.5       3.6         17.1
Veterans Benefits and Services (700):
    BA.................................      20.9      22.2      22.6      23.0      23.4      23.8        115.0
    O..................................      20.4      22.0      22.6      22.9      23.2      23.6        114.3
Administration of Justice (750):
    BA.................................      26.6      26.9      27.1      27.3      27.6      27.9        136.8
    O..................................      27.2      27.1      27.2      27.2      27.4      27.7        136.6
General Government (800):
    BA.................................      12.6      12.4      12.4      12.4      12.4      12.4         62.0
    O..................................      13.1      13.0      12.7      12.6      12.4      12.4         63.1
Allowances (920) \2\:
    BA.................................       8.5      -4.2      -1.5      -1.7      -2.3      -2.5        -12.2
    O..................................      11.5      -8.6      -0.5      -1.4      -2.2      -2.5       -15.2
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Includes administrative expenses.
\2\ Includes the Administration's FY 2000 request for supplemental appropriations.


         FISCAL YEAR 2001 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE MANDATORY SPENDING
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                           2000      2001      2002      2003      2004      2005     2001-2005
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY

Total Mandatory Spending:
    BA.................................   1,223.6   1,260.1   1,289.9   1,336.9   1,387.6   1,446.9      6,721.4
    O..................................   1,168.8   1,201.1   1,237.1   1,282.4   1,334.0   1,392.8      6,447.4
    On-budget:
        BA.............................     900.1     927.6     950.6     988.4   1,029.9   1,077.9      4,974.4
        O..............................     845.3     868.6     897.7     933.9     976.3   1,023.8      4,700.3
    Off-budget:
        BA.............................     323.5     332.5     339.4     348.5     357.7     369.0      1,747.1
        O..............................     323.5     332.5     339.4     348.5     357.7     369.0      1,747.1

                                                   BY FUNCTION

National Defense (050):
    BA.................................      -1.0      -1.0      -0.9      -0.9      -0.8      -0.8         -4.4
    O..................................      -1.0      -1.0      -0.9      -0.9      -0.8      -0.8         -4.4
International Affairs (150):
    BA.................................      -2.2      -0.2  ........  ........  ........       0.2  ...........
    O..................................      -4.6      -4.0      -3.8      -3.7      -3.5      -3.4        -18.4
General Science, Space, and Technology
 (250):
    BA.................................       0.1       0.1  ........  ........  ........  ........          0.1
    O..................................       0.1       0.1       0.1  ........  ........  ........          0.2
Energy (270):
    BA.................................      -1.5      -1.6      -1.9      -1.9       1.8      -1.9         -9.1
    O..................................      -3.6      -2.9      -3.1      -3.2      -3.2      -3.2        -15.6
Natural Resources and Environment
 (300):
    BA.................................       0.3       0.7       0.7       0.7       0.7       0.7          3.5
    O..................................       0.5       0.7       0.7       0.7       0.7       0.6          3.4
Agriculture (350):
    BA.................................      31.2      14.6      14.0      13.1      12.5      11.3         65.5
    O..................................      29.8      12.5      12.3      11.5      11.1       9.8         57.2
Commerce and Housing Credit (370):
    BA.................................       1.6       4.2       5.9       7.2      10.5      10.5         38.3
    O..................................      -3.2      -0.3       2.3       2.5       5.6       6.6         16.7
    On-budget:
        BA.............................       0.6       3.6       5.6       6.4      10.5      10.5         36.6
        O..............................      -4.2      -0.9       2.0       1.7       5.6       6.6         15.0
    Off-budget:
        BA.............................       1.0       0.6       0.3       0.8  ........  ........          1.7
        O..............................       1.0       0.6       0.3       0.8  ........  ........          1.7
Transportation (400):
    BA.................................      39.9      43.5      41.1      42.0      42.0      42.0        210.6
    O..................................       2.3       2.1       1.7       1.9       1.9       1.8          9.4
Community and Regional Development
 (450):
    BA.................................      -0.2  ........  ........      -0.1      -0.1  ........         -0.2
    O..................................      -0.7      -0.6      -0.6      -0.7      -0.7      -0.7         -3.3
Education, Training, Employment and
 Social Services (500):
    BA.................................      13.2      15.8      16.3      16.3      16.4      17.1         81.9
    O..................................      12.3      16.3      16.3      16.0      16.0      16.5         81.1
Health (550):
    BA.................................     125.6     134.8     144.1     155.5     169.1     184.7        788.2
    O..................................     123.4     133.2     144.1     155.9     169.8     184.6        787.6
Medicare (570):
    BA.................................     196.5     212.6     218.5     236.6     252.2     275.6      1,195.5
    O..................................     196.4     212.9     218.5     236.4     252.4     275.6      1,195.8
Income Security (600):
    BA.................................     208.5     217.0     224.7     233.6     243.1     255.2      1,173.6
    O..................................     205.6     213.0     222.1     231.2     240.9     253.4      1,160.6
Social Security (650):
    BA.................................     401.8     419.4     439.6     460.3     482.4     506.6      2,308.3
    O..................................     401.8     419.4     439.6     460.3     482.4     506.6      2,308.3
    On-budget:
        BA.............................      11.5       9.7      11.5      12.2      13.0      13.8         60.2
        O..............................      11.5       9.7      11.5      12.2      13.0      13.8         60.2
    Off-budget:
        BA.............................     390.3     409.7     428.1     448.0     469.5     492.7      2,248.0
        O..............................     390.3     409.7     428.1     448.0     469.5     492.7      2,248.0
Veterans Benefits and Services (700):
    BA.................................      25.1      25.6      26.4      27.8      28.6      31.5        139.9
    O..................................      24.8      25.4      26.3      27.7      28.5      31.3        139.2
Administration of Justice (750):
    BA.................................       0.7       1.1       0.7       0.6       0.6       0.5          3.5
    O..................................       0.8       0.9       0.8       0.7       0.5       0.4          3.3
General Government (800):
    BA.................................       1.3       1.2       1.2       1.1       1.1       1.2          5.8
    O..................................       1.6       1.2       1.2       1.1       1.3       1.1          5.9
Net Interest (900):
    BA.................................     224.5     218.9     210.0     195.0     179.4     162.7        966.0
    O..................................     224.5     218.9     210.0     195.0     179.4     162.7        966.0
    On-budget:
        BA.............................     284.6     288.5     290.0     285.8     281.0     275.5      1,420.8
        O..............................     284.6     288.5     290.0     285.8     281.0     275.5      1,420.8
    Off-budget:
        BA.............................     -60.0     -69.5     -80.1     -90.8    -101.6    -112.9       -454.9
        O..............................     -60.0     -69.5     -80.1     -90.8    -101.6    -112.9       -454.9
Allowances (920):
    BA.................................  ........  ........  ........  ........  ........  ........  ...........
    O..................................  ........  ........  ........  ........  ........  ........  ...........
Undistributed Offsetting Receipts
 (950):
    BA.................................     -41.8     -46.7     -50.3     -50.2     -48.2     -50.1       -245.5
    O..................................     -41.8     -46.7     -50.3     -50.2     -48.2     -50.1       -245.5
    On-budget:
        BA.............................     -34.1     -38.4     -41.3     -40.7     -38.1     -39.2       -197.7
        O..............................     -34.1     -38.4     -41.3     -40.7     -38.1     -39.2       -197.7
    Off-budget:
        BA.............................      -7.7      -8.3      -8.9      -9.5     -10.1     -10.9        -47.7
        O..............................      -7.7      -8.3      -8.9      -9.5     -10.1     -10.9        -47.7
----------------------------------------------------------------------------------------------------------------


         HOUSE BUDGET COMMITTEE RECOMMENDATION MINUS THE PRESIDENT'S REQUEST TOTAL SPENDING AND REVENUES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                           2000      2001      2002      2003      2004      2005     2001-2005
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY

Total Spending:
    BA.................................       7.1     -28.1     -30.9     -29.9     -45.0     -54.2       -188.1
    O..................................       6.1     -12.7     -25.1     -27.3     -43.8     -54.9       -163.8
    On-Budget:
        BA.............................       7.0     -28.0     -30.7     -29.6     -44.8     -53.9       -187.0
        O..............................       6.0     -12.5     -25.0     -27.0     -43.5     -54.6       -162.6
    Off-Budget:
        BA.............................       0.1      -0.1      -0.2      -0.3      -0.2      -0.3         -1.1
        O..............................       0.1      -0.2      -0.1      -0.3      -0.3      -0.3         -1.2
Revenues:
    Total..............................      -0.6     -19.5     -22.8     -25.3     -41.4     -36.0       -145.1
    On-Budget..........................      -0.6     -19.5     -22.8     -25.3     -41.4     -36.0       -145.1
    Off-Budget.........................  ........  ........  ........  ........  ........  ........  ...........
Surplus/Deficit (-):
    Total..............................      -6.7      -6.7       2.4       1.9       2.5      18.9         18.9
    On-Budget..........................      -6.6      -6.9       2.2       1.6       2.2      18.6         17.7
    Off-Budget.........................      -0.1       0.2       0.2       0.3       0.3       0.3          1.2

                                                   BY FUNCTION

National Defense (050):
    BA.................................  ........       1.0       0.3       0.2       0.3       0.3          2.1
    O..................................  ........       0.4       0.3       0.3       0.3       0.3          1.6
International Affairs (150) :
    BA.................................  ........      -3.1      -3.9      -4.7      -5.7      -6.2        -23.6
    O..................................  ........      -1.6      -1.9      -3.2      -4.5      -5.3        -16.5
General Science, Space, and Technology
 (250):
    BA.................................  ........      -1.1      -1.3      -1.5      -2.0      -2.2         -8.1
    O..................................  ........      -0.4      -1.0      -1.4      -1.8      -2.1         -6.7
Energy (270):
    BA.................................  ........      -0.2      -0.8      -0.8      -1.1      -1.2         -4.1
    O..................................  ........      -0.4      -0.6      -0.7      -1.0      -1.1         -3.8
Natural Resources and Environment
 (300):
    BA.................................  ........      -1.4      -1.1      -0.7      -1.2      -1.7         -6.1
    O..................................  ........      -0.8      -1.1      -0.8      -1.0      -1.3         -5.0
Agriculture (350):
    BA.................................       6.0      -2.6      -1.4       1.5       1.5       1.6          0.6
    O..................................       5.9      -3.0      -1.9       1.3       1.6       1.6         -0.4
Commerce and Housing Credit (370):
    BA.................................  ........      -0.5      -0.3      -0.3      -0.5      -0.7         -2.3
    O..................................  ........      -0.3      -0.1      -0.3      -0.4      -0.5         -1.6
    On-budget:
        BA.............................  ........      -0.5      -0.3      -0.3      -0.5      -0.7         -2.3
        O..............................  ........      -0.3      -0.1      -0.3      -0.4      -0.5         -1.6
    Off-budget:
        BA.............................  ........  ........  ........  ........  ........  ........  ...........
        O..............................  ........  ........  ........  ........  ........  ........  ...........
Transportation (400):
    BA.................................       0.6       0.4       1.8       1.7       0.4      -1.2          3.1
    O..................................  ........      -0.3       0.2       1.1       0.6      -0.3          1.3
Community and Regional Development
 (450):
    BA.................................  ........      -3.4      -4.0      -4.2      -4.5      -4.8        -20.9
    O..................................  ........      -0.2      -2.0      -2.9      -3.6      -4.3        -13.0
Education, Training, Employment and
 Social Services (500):
    BA.................................       0.5      -4.2      -3.3      -3.2      -3.6      -3.7        -18.0
    O..................................       0.5      -0.3      -2.5      -3.6      -4.7      -5.7        -16.8
Health (550):
    BA.................................  ........      -0.6      -3.3      -4.7      -6.1      -8.1        -22.8
    O..................................      -0.1  ........      -2.3      -3.1      -5.1      -8.4        -18.9
Medicare (570):
    BA.................................  ........       0.8      -2.1      -0.1      -6.1      -6.9        -14.4
    O..................................  ........       0.7      -2.1  ........      -6.1      -6.9        -14.4
Income Security (600):
    BA.................................  ........      -8.6      -5.8      -7.5      -9.6     -11.0        -42.5
    O..................................  ........      -3.9      -6.2      -8.9     -10.8     -12.3        -42.1
Social Security (650):
    BA.................................  ........      -0.1      -0.2      -0.2      -0.1      -0.2         -0.8
    O..................................  ........      -0.1      -0.1      -0.2      -0.2      -0.2         -0.8
    On-budget:
        BA.............................  ........  ........  ........  ........  ........  ........  ...........
        O..............................  ........  ........  ........  ........  ........  ........  ...........
    Off-budget:
        BA.............................  ........  ........      -0.2      -0.2      -0.1      -0.2         -0.7
        O..............................  ........      -0.1      -0.1      -0.2      -0.2      -0.2         -0.8
Veterans Benefits and Services (700):
    BA.................................  ........       0.1       0.5       1.0       0.8       0.7          3.1
    O..................................  ........       0.1       0.5       0.9       0.8       0.7          3.0
Administration of Justice (750):
    BA.................................  ........      -2.3      -3.0      -2.6      -2.6      -3.0        -13.5
    O..................................  ........      -1.8      -2.2      -2.5      -3.1      -3.3        -12.9
General Government (800):
    BA.................................  ........      -2.3      -2.5      -2.6      -2.9      -3.1        -13.4
    O..................................      -0.1      -0.9      -1.6      -2.1      -2.8      -3.0        -10.4
Net Interest (900):
    BA.................................  ........       0.6       1.0       0.9       0.7       0.3          3.5
    O..................................  ........       0.6       1.0       0.9       0.7       0.3          3.5
    On-budget:
        BA.............................  ........       0.6       1.1       0.9       0.8       0.4          3.8
        O..............................  ........       0.6       1.1       0.9       0.8       0.4          3.8
    Off-budget:
        BA.............................  ........  ........  ........      -0.1      -0.1      -0.1         -0.3
        O..............................  ........  ........  ........      -0.1      -0.1      -0.1         -0.3
Allowances (920):
    BA.................................      -0.1      -0.4      -1.3      -1.5      -2.1      -2.3         -7.6
    O..................................      -0.2      -0.2      -1.3      -1.5      -2.1      -2.3         -7.4
Undistributed Offsetting Receipts
 (950):
    BA.................................       0.1      -0.3      -0.3      -0.5      -0.6      -0.8         -2.5
    O..................................       0.1      -0.3      -0.3      -0.5      -0.6      -0.8         -2.5
    On-budget:
        BA.............................  ........      -0.2      -0.3      -0.5      -0.6      -0.8         -2.4
        O..............................  ........      -0.2      -0.3      -0.5      -0.6      -0.8         -2.4
    Off-budget:
        BA.............................       0.1      -0.1  ........  ........  ........  ........         -0.1
        O..............................       0.1      -0.1  ........  ........  ........  ........         -0.1
----------------------------------------------------------------------------------------------------------------


               HOUSE BUDGET COMMITTEE RECOMMENDATION COMPARED TO 2000 TOTAL SPENDING AND REVENUES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                       2001     2002     2003     2004     2005
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY

Total Spending:
    BA.............................................................     54.6     95.6    150.8    211.0    281.0
    O..............................................................     39.2     92.4    146.7    205.8    275.5
    On-Budget:
        BA.........................................................     45.5     79.5    125.6    176.3    235.1
        O..........................................................     30.2     76.3    121.6    171.2    229.6
    Off-Budget:
        BA.........................................................      9.1     16.1     25.2     34.7     45.9
        O..........................................................      9.0     16.1     25.1     34.6     45.9
Revenues:
    Total..........................................................     61.2    129.1    200.5    275.5    371.3
    On-Budget......................................................     39.3     83.9    133.0    185.2    253.6
    Off-Budget.....................................................     21.9     45.2     67.5     90.3    117.7
Surplus/Deficit (-):
    Total..........................................................     22.1     36.8     53.8     69.9     95.8
    On-Budget......................................................      9.2      7.6     11.5     14.1     24.0
    Off-Budget.....................................................     12.9     29.2     42.3     55.8     71.8

                                                   BY FUNCTION

National Defense (050):
    BA.............................................................     17.4     20.4     26.7     34.5     42.9
    O..............................................................     15.1     19.5     26.9     35.1     45.7
International Affairs (150):
    BA.............................................................     -0.6     -0.8     -1.3     -1.8     -1.6
    O..............................................................      1.8      1.7      0.6     -0.3     -0.7
General Science, Space, and Technology (250):
    BA.............................................................      0.5      0.7      0.8      0.9      1.1
    O..............................................................      0.8      1.2      1.1      1.2      1.4
Energy (270):
    BA.............................................................      0.1     -0.4     -0.5     -0.7     -0.8
    O..............................................................      0.5      0.2     -0.1     -0.3     -0.3
Natural Resources and Environment (300):
    BA.............................................................      0.7      0.8      0.8      1.0      1.0
    O..............................................................      0.6      0.9      1.1      1.0      0.9
Agriculture (350):
    BA.............................................................    -16.6    -17.2    -18.1    -18.7    -19.9
    O..............................................................     17.4    -17.6    -18.4    -18.8    -20.1
Commerce and Housing: Credit (370):
    BA.............................................................     -1.6      0.5      1.8      5.1      5.0
    O..............................................................     -1.2      1.1      1.4      4.6      5.5
    On-budget:
        BA.........................................................     -1.2      1.2      2.0      6.1      6.0
        O..........................................................     -0.8      1.8      1.6      5.6      6.5
    Off-budget:
        BA.........................................................     -0.4     -0.7     -0.2     -1.0     -1.0
        O..........................................................     -0.4     -0.7     -0.2     -1.0     -1.0
Transportation (400):
    BA.............................................................      4.9      3.1      4.5      4.5      4.5
    O..............................................................      3.7      5.9      8.3      8.5      8.5
Community and Regional Development (450):
    BA.............................................................     -2.1     -2.7     -2.8     -2.8     -2.7
    O..............................................................      0.4     -1.0     -2.0     -2.5     -3.0
Education, Training, Employment and Social Services (500):
    BA.............................................................     14.8     16.2     17.3     18.3     20.1
    O..............................................................      7.8     10.6     11.8     12.1     12.8
Health (550):
    BA.............................................................     10.4     20.3     32.2     46.3     62.4
    O..............................................................     14.8     25.6     38.3     52.7     68.0
Medicare (570):
    BA.............................................................     16.1     22.0     40.1     55.7     79.1
    O..............................................................     16.5     22.1     40.0     56.0     79.1
Income Security (600):
    BA.............................................................     13.8     24.6     33.7     43.3     55.7
    O..............................................................      6.9     16.3     25.5     35.2     47.9
Social Security (650):
    BA.............................................................     17.8     38.0     58.8     81.0    105.2
    O..............................................................     17.7     38.0     58.7     80.9    105.2
    On-budget:
        BA.........................................................     -1.8  .......     -0.7      1.5      2.3
        O..........................................................     -1.8  .......      0.7      1.5      2.3
    Off-budget:
        BA.........................................................     19.6     38.0     58.0     79.6    102.9
        O..........................................................     19.5     38.0     57.9     79.5    102.9
Veterans Benefits and Services (700):
    BA.............................................................      1.8      3.0      4.8      6.0      9.3
    O..............................................................      2.2      3.7      5.4      6.5      9.8
Administration of Justice (750):
    BA.............................................................      0.7      0.4      0.6      0.9      1.1
    O..............................................................  .......  .......     -0.1     -0.1      0.1
General Government (800):
    BA.............................................................     -0.3     -0.3     -0.4     -0.4     -0.3
    O..............................................................     -0.4     -0.8     -0.9     -1.0     -1.2
Net Interest (900):
    BA.............................................................     -5.6    -14.6    -29.6    -45.2    -61.9
    O..............................................................     -5.6    -14.6    -29.6    -45.2    -61.9
    On-budget:
        BA.........................................................      3.9      5.4      1.2     -3.6     -9.0
        O..........................................................      3.9      5.4      1.2     -3.6     -9.0
    Off-budget:
        BA.........................................................     -9.5    -20.0    -30.8    -41.5    -52.8
        O..........................................................     -9.5    -20.0    -30.8    -41.5    -52.8
Allowances (920):
    BA.............................................................    -12.7    -10.0    -10.2    -10.8    -11.0
    O..............................................................    -20.1    -12.0    -12.9    -13.7    -14.0
Undistributed Offsetting Receipts (950):
    BA.............................................................     -4.9     -8.4     -8.3     -6.4     -8.3
    O..............................................................     -4.9     -8.4     -8.3     -6.4     -8.3
    On-budget:
        BA.........................................................     -4.3     -7.2     -6.5     -3.9     -5.1
        O..........................................................     -4.3     -7.2     -6.5     -3.9     -5.1
    Off-budget:
        BA.........................................................     -0.6     -1.2     -1.8     -2.4     -3.2
        O..........................................................     -0.6     -1.2     -1.8     -2.4     -3.2
----------------------------------------------------------------------------------------------------------------


               HOUSE BUDGET COMMITTEE RECOMMENDATION COMPARED TO 2000 TOTAL SPENDING AND REVENUES
                                               [Percentage change]
----------------------------------------------------------------------------------------------------------------
                                                            2001         2002       2003       2004       2005
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY

Total Spending:
    BA.............................................           3.0           5.3        8.4       11.7       15.6
    O..............................................           2.2           5.2        8.2       11.5       15.4
    On-Budget:
        BA.........................................           3.1           5.4        8.5       11.9       15.9
        O..........................................           2.1           5.2        8.3       11.7       15.8
    Off-Budget:
        BA.........................................           2.8           4.9        7.7       10.6       14.0
        O..........................................           2.8           4.9        7.7       10.6       14.0
Revenues:
    Total..........................................           3.1           6.6       10.3       14.2       19.1
    On-Budget......................................           2.7           5.7        9.1       12.6       17.3
    Off-Budget.....................................           4.6           9.4       14.1       18.8       24.5
Surplus/Deficit (-):
    Total..........................................          13.7          22.8       33.5       43.4       59.5
    On-Budget......................................         112.3          92.4      141.3      172.2      293.5
    Off-Budget.....................................           8.4          19.1       27.7       36.5       47.0

                                                  4BY FUNCTION

National Defense (050):
    BA.............................................           6.0           7.1        9.3       12.0       14.8
    O..............................................           5.4           6.9        9.5       12.4       16.2
International Affairs (150):
    BA.............................................          -3.1          -4.0       -6.3       -9.1       -8.1
    O..............................................          11.5          10.6        3.8       -1.9       -4.5
General Science, Space, and Technology (250):
    BA.............................................           2.5           3.4        3.9        4.5        5.5
    O..............................................           4.5           6.2        6.0        6.4        7.5
Energy (270):
    BA.............................................          10.8         -36.9      -48.3      -66.7      -72.2
    O..............................................         -77.6         -28.1       10.2       54.1       51.3
Natural Resources and Environment (300):
    BA.............................................           2.8           3.1        3.4        3.9        4.2
    O..............................................           2.6           3.8        4.4        4.2        3.8
Agriculture (350):
    BA.............................................         -46.5         -48.2      -50.6      -52.4      -55.7
    O..............................................         -50.7         -51.3      -53.6      -54.8      -58.5
Commerce and Housing Credit (370):
    BA.............................................         -18.8           5.9       20.7       60.4       58.4
    O..............................................         -28.5          27.6       34.6      111.3      133.3
    On-budget:
        BA.........................................         -16.0          16.0       26.1       81.9       79.6
        O..........................................         -24.8          58.9       52.1      179.0      208.1
    Off-budget:
        BA.........................................         -40.0         -70.0      -20.0     -100.0     -100.0
        O..........................................         -40.0         -70.0      -20.0     -100.0     -100.0
Transportation (400):
    BA.............................................           9.0           5.6        8.2        8.3        8.4
    O..............................................           7.9          12.8       17.7       18.2       18.2
Community and Regional Development (450):
    BA.............................................         -18.4         -24.3      -24.6      -24.9      -24.2
    O..............................................           3.4          -9.5      -18.3      -22.8      -27.7
Education, Training, Employment and Social Services
 (500):
    BA.............................................          25.7          28.1       29.9       31.7       34.8
    O..............................................          12.7          17.3       19.2       19.6       20.8
Health (550):
    BA.............................................           6.6          12.8       20.2       29.1       39.2
    O..............................................           9.7          16.8       25.1       34.6       44.7
Medicare (570):
    BA.............................................           8.1          11.0       20.1       27.9       39.6
    O..............................................           8.3          11.1       20.0       28.1       39.7
Income Security (600):
    BA.............................................           5.8          10.3       14.1       18.2       23.3
    O..............................................           2.8           6.6       10.3       14.2       19.3
Social Security (650):
    BA.............................................           4.4           9.4       14.5       20.0       26.0
    O..............................................           4.4           9.4       14.5       20.0       26.0
    On-budget:
        BA.........................................         -15.7           0.3        6.3       12.8       19.9
        O..........................................         -15.7           0.3        6.3       12.8       19.9
    Off-budget:
        BA.........................................           5.0           9.7       14.7       20.2       26.1
        O..........................................           5.0           9.7       14.7       20.2       26.1
Veterans Benefits and Services (700):
    BA.............................................           4.0           6.5       10.5       13.0       20.1
    O..............................................           4.9           8.2       12.0       14.4       21.6
Administration of Justice (750):
    BA.............................................           2.5           1.6        2.2        3.1        4.1
    O..............................................          -0.1           0.2       -0.5       -0.4        0.5
General Government (800):
    BA.............................................          -1.9          -2.4       -2.6       -2.6       -2.4
    O..............................................          -3.0          -5.6       -6.4       -6.7       -7.9
Net Interest (900):
    BA.............................................          -2.5          -6.5      -13.2      -20.1      -27.6
    O..............................................          -2.5          -6.5      -13.2      -20.1      -27.6
    On-budget:
        BA.........................................           1.4           1.9        0.4       -1.3       -3.2
        O..........................................           1.4           1.9        0.4       -1.3       -3.2
    Off-budget:
        BA.........................................          15.8          33.4       51.2       69.2       88.0
        O..........................................          15.8          33.4       51.2       69.2       88.0
Allowances (920):
    BA.............................................        -149.4        -117.6     -120.0     -127.1     -129.4
    O..............................................        -174.8        -104.3     -112.2     -119.1     -121.7
Undistributed Offsetting Receipts (950):
    BA.............................................          11.7          20.2       19.9       15.2       19.8
    O..............................................          11.7          20.2       19.9       15.2       19.8
    On-budget:
        BA.........................................          12.6          21.1       19.1       11.5       14.9
        O..........................................          12.6          21.1       19.1       11.5       14.9
    Off-budget:
        BA.........................................           7.5          15.9       23.3       31.7       41.6
        O..........................................           7.5          15.9       23.3       31.7       41.6
----------------------------------------------------------------------------------------------------------------


                    THE CONGRESSIONAL BUDGET PROCESS

    The spending and revenue levels established in the budget 
resolution are executed through two parallel, but separate, 
mechanisms: allocations to the appropriations and authorizing 
committees, and reconciliation directives to the authorizing 
committees. The budget resolution may include instructions 
directing the authorizing committees to report legislation 
complying with entitlement, revenue, deficit or debt reduction 
targets. The report accompanying the budget resolution 
distributes or ``allocates'' amounts set forth in the budget 
aggregates for programs, projects and activities to the 
Appropriations Committee for annual appropriations and the 
authorizing committees if they have permanent or multiyear 
spending authority.

                          spending allocations

    As required under Section 302(a) of the Congressional 
Budget Act of 1974, the discretionary spending levels 
established in the budget resolution are allocated to the 
Appropriations Committee and the mandatory spending levels are 
allocated to each of the authorizing committees with mandatory 
spending authority. These levels can be enforced through points 
of order as discussed in the section ``Enforcing the Budget 
Resolution.'' Amounts provided under ``current law'' encompass 
programs that affect direct spending--entitlement and other 
programs that have spending authority or offsetting receipts. 
Amounts subject to discretionary action refer to programs that 
require subsequent legislation to provide the necessary 
spending authority. Amounts provided under ``reauthorizations'' 
reflect amounts assumed to reauthorize expiring mandatory 
programs.
    This budget resolution provides for 5-year allocations of 
budget authority and outlays for each of the authorizing 
committees. Section 302 of the Congressional Budget Act of 1974 
(as modified by the Balanced Budget Act of 1997) requires that 
allocations of budget authority be provided in the budget 
resolution for the first fiscal year and at least the 4 ensuing 
fiscal years (except for the Committee on Appropriations).
Committee on Appropriations
    The report accompanying the budget resolution allocates a 
lump sum of discretionary budget authority that is assumed in 
the resolution and corresponding outlays to the Committee on 
Appropriations. The Appropriations Committee is provided an 
allocation for the current year, Fiscal Year 2000 and the 
upcoming budget year, Fiscal Year 2001.
    Term. The allocation to the Appropriations Committee is for 
the fiscal year commencing on October 1, 2000. Unlike the 
authorizing committees, the Appropriations Committee does not 
receive a 5-year allocation of budget authority and outlays.
    Allocations. Upon receiving its 302(a) allocation, the 
Appropriations Committee is required to divide the allocation 
among its 13 subcommittees. The amount that each subcommittee 
receives constitutes its allocation pursuant to 302(b). As 
required by the Balanced Budget Act of 1997, the allocations 
are divided into general purpose discretionary, highway, and 
mass transit spending. These levels do not constitute separate 
allocations and hence are not subject to points of order under 
section 302(f) of the Congressional Budget Act of 1974.
    Adjustments Made Under the Congressional Budget Act. 
Section 314 of the Congressional Budget Act of 1974 establishes 
a process by which the budget resolution can accommodate 
programs for whichspending authority was not assumed in the 
budget resolution. Section 314 directs the Chairman of the Budget 
Committee to make adjustments to the 302(a) allocations and the 
budgetary aggregates for five purposes. Through these adjustments, 
additional budget authority and outlays will be made available for 
Continuing Disability Reviews, special drawing rights, arrearages to 
international organizations, designated emergencies, and an Earned 
Income Tax Credit Compliance Initiative. The Office of Management and 
Budget makes similar adjustments to the discretionary spending limits 
under section 251 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (see section on Statutory Controls Over the Budget).

Authorizing committees

    The authorizing committees are allocated a lump sum of new 
budget authority along with the corresponding outlays. This 
spending authority must be provided through subsequent 
legislation and is not controlled through the annual 
appropriations process. The budget authority allocated to these 
committees is categorized as subject to discretionary action 
when the resolution assumes a new or expanded mandatory program 
or a reduction in an existing program.
    Term. Since the spending authority for the authorizing 
committees is multiyear or permanent, the allocations are for 
the forthcoming budget year commencing on October 1 and the 5-
year total for fiscal year 2001 through fiscal year 2005. 
Authorizing committees are not required to file 302(b) 
allocations. Bills that are first effective in Fiscal Year 
2000, however, are measured against the revised levels for 
Fiscal Year 2000 through 2004 set forth in the report.
    In order to enforce these allocations, Members may raise a 
point of order against spending legislation that exceeds a 
committee's allocation (see section on Enforcing the Budget 
Resolution).
    The allocations for fiscal year 2001, and fiscal years 2001 
through 2005, are as follows:

          ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES
                        Appropriations Committee
                        [In millions of dollars]
------------------------------------------------------------------------
                                                   Budget
               Fiscal year 2001                  Authority     Outlays
------------------------------------------------------------------------
General Purpose \1\...........................      595,247      590,569
Highways \1\..................................  ...........       26,920
Mass Transit \1\..............................        1,255        4,639
                                               -------------------------
      Total Discretionary Action..............      596,502      622,128
Current Law Mandatory.........................      325,936     309,098
------------------------------------------------------------------------
\1\ Shown for display purposes only.


           ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES--COMMITTEES OTHER THAN APPROPRIATIONS
----------------------------------------------------------------------------------------------------------------
                                                                                                      Total 2001-
                                            2001         2002        2003        2004        2005        2005
----------------------------------------------------------------------------------------------------------------
       AGRICULTURE COMMITTEE
Current Law:
    BA.............................         14,463        13,647       3,338       3,185       3,189      37,822
    OT.............................         10,748        10,241        -237        -248        -290      20,214
Reauthorizations:
    BA.............................  ...............  ..........      29,866      29,968      29,294      89,128
    OT.............................  ...............  ..........      28,914      29,922      29,254      88,090
Total:
    BA.............................         14,463        13,647      33,204      33,153      32,483     126,950
    OT.............................         10,748        10,241      28,677      29,674      28,964     108,304

      ARMED SERVICES COMMITTEE
Current Law:
    BA.............................         50,142        51,686      53,321      55,120      57,044     267,313
    OT.............................         50,126        51,629      53,234      55,034      56,954     266,977

   BANKING AND FINANCIAL SERVICES
             COMMITTEE
Current Law:
    BA.............................          4,050         4,925       4,479       3,992       3,938      21,384
    OT.............................         -2,142        -1,019      -1,294      -2,425      -2,361      -9,241

   COMMITTEE ON EDUCATION AND THE
             WORKFORCE
Current Law:
    BA.............................          5,673         5,731       5,310       4,842       5,050      26,606
    OT.............................          4,928         5,177       4,962       4,551       4,559      24,177
Reauthorizations:
    BA.............................  ...............         305         305         791         814       2,215
    OT.............................  ...............          58         244         699         810       1,811
Total:
    BA.............................          5,673         6,036       5,615       5,633       5,864      28,821
    OT.............................          4,928         5,235       5,206       5,250       5,369      25,988

         COMMERCE COMMITTEE
Current Law:
    BA.............................          8,265         8,799      10,374      15,153      16,240      58,831
    OT.............................          6,516         9,024       9,902      15,311      16,329      57,082
Discretionary Action:
    BA.............................            100           100         100         100         100         500
    OT.............................            100           100         100         100         100         500
Total:
    BA.............................          8,365         8,899      10,474      15,253      16,340      59,331
    OT.............................          6,616         9,124      10,002      15,411      16,429      57,582

 INTERNATIONAL RELATIONS COMMITTEE
Current Law:
    BA.............................         11,385        11,715      11,799      11,813      12,098      58,810
    OT.............................         10,129        10,426      10,580      10,818      11,019      52,972

    GOVERNMENT REFORM COMMITTEE
Current Law:
    BA.............................         60,323        62,581      64,886      67,334      69,857     324,981
    OT.............................         58,905        61,212      63,575      66,128      68,719     318,539

 COMMITTEE ON HOUSE ADMINISTRATION
Current Law:
    BA.............................            113            87          89          86          87         462
    OT.............................             68            32          58         252          41         451

        RESOURCES COMMITTEE
Current Law:
    BA.............................          2,546         2,307       2,314       2,362       2,451      11,980
    OT.............................          2,493         2,339       2,431       2,378       2,400      12,041

        JUDICIARY COMMITTEE
Current Law:
    BA.............................          5,590         5,177       5,261       5,333       5,332      26,693
    OT.............................          5,076         5,149       5,115       5,115       5,249      25,704

 TRANSPORTATION AND INFRASTRUCTURE
             COMMITTEE
Current Law:
    BA.............................         51,193        49,090      49,765      12,224      12,271     174,543
    OT.............................          9,747         9,700       9,701       9,508       9,213      47,869
Reauthorizations:
    BA.............................  ...............  ..........  ..........      37,578      37,578      75,156
    OT.............................  ...............  ..........  ..........         104         306         410
Total:
    BA.............................         51,193        49,090      49,765      49,802      49,849     249,699
    OT.............................          9,747         9,700       9,701       9,612       9,519      48,279

         SCIENCE COMMITTEE
Current Law:
    BA.............................             81            60          61          62          62         326
    OT.............................             79            86          73          64          62         364

      SMALL BUSINESS COMMITTEE
Current Law:
    BA.............................              0             0           0           0           0           0
    OT.............................           -195          -160        -150        -140        -100        -745

    VETERANS' AFFAIRS COMMITTEE
Current Law:
    BA.............................          1,367         1,365       1,368       1,379       1,358       6,837
    OT.............................          1,273         1,392       1,355       1,372       1,359       6,751
Discretionary Action:
    BA.............................            380           895       1,422       1,968       2,747       7,412
    OT.............................            349           849       1,375       1,918       2,678       7,169
Total:
    BA.............................          1,747         2,260       2,790       3,347       4,105      14,249
    OT.............................          1,622         2,241       2,730       3,290       4,037      13,920

      WAYS AND MEANS COMMITTEE
Current Law:
    BA.............................        697,871       712,893     716,096     736,022     763,480   3,626,362
    OT.............................        696,956       712,378     714,907     734,695     761,823   3,620,759
Reauthorizations:
    BA.............................  ...............         215      19,718      19,919      19,925      59,777
    OT.............................  ...............         155      19,875      20,787      21,095      61,912
Total:
    BA.............................        697,871       713,108     735,814     755,941     783,405   3,686,139
    OT.............................        696,956       712,533     734,782     755,482     782,918   3,682,671
----------------------------------------------------------------------------------------------------------------


                           SECTION BY SECTION

                           AMOUNTS AND LEVELS

    In accordance with section 301(a) of the Congressional 
Budget Act of 1974, section 1 establishes the appropriate 
budgetary levels for the budget year, fiscal year 2001, and 
each of the succeeding 4 years, 2002, 2003, 2004, and 2005. In 
addition, section 1 revised the budgetary levels for the 
current fiscal year, fiscal year 2000. The authority to revise 
the current year levels is set forth in section 304 of the 
Congressional Budget Act of 1974 and is intended to reflect the 
President's veto of last year's reconciliation bill, the final 
levels of the Fiscal Year 2000 appropriation bills, and the 
anticipated supplemental appropriations bill. These levels are 
in turn subject to the adjustments for income support for 
farmers and farm producers in section 12. [See summary tables]
    Section 2 establishes the recommended levels for revenue, 
reduction in revenue, total new budget authority, total budget 
outlays, surpluses, and public debt. The recommended level of 
revenue operates as a floor against which all bills are 
measured pursuant to section 311 of the Congressional Budget 
Act of 1974. Similarly, the recommended levels of new budget 
authority and budget outlays serve as a ceiling on the 
consideration of subsequent spending. The budget aggregates for 
surpluses are based on budget outlays and revenue. The public 
debt aggregates refer to the portion of gross Federal debt 
issued by the Treasury to the public or another fund or 
account. [See summary tables]
    As further required by section 301(a) of the Congressional 
Budget Act of 1974, section 3 establishes the appropriate 
budgetary levels for 19 functional categories for the current 
fiscal year, fiscal year 2000, the budget year, fiscal year 
2001, and for the total of fiscal years 2001 through 2005. The 
categories correspond to those used in the President's fiscal 
year 2001 budget submission. Unlike the Fiscal year 2000 budget 
resolution, (H. Con. Res.68), the budget resolution does not 
separate education from training, employment, and Social 
Services in function 500. Consistent with the budgetary 
treatment of Social Security since 1990, Function 650 (Social 
Security) shows only the on-budget payments into the Social 
Security Trust Funds. [See summary tables]

                      RECONCILIATION INSTRUCTIONS

    In accordance with section 310(a) of the Congressional 
Budget Act, section 4 provides directives for the Committee on 
Ways and Means to report tax and debt-related legislation that 
achieves specified targets. Because Ways and Means is the only 
committee to receive reconciliation instructions, under section 
310(b) it is required to report the bills directly to the House 
rather than the Committee on the Budget (as is the case when 
two or more committees receive reconciliation instructions). 
The reason for reconciling multiple bills is to provide the 
Congress with the opportunity to consider discrete changes in 
tax policy separately rather than as part of an amalgamation of 
unrelated provisions as part of a single, massive bill. 
Moreover, multiple reconciliation bills will afford the tax 
committees maximum flexibility in the composition and timing of 
these bills to facilitate negotiations with the Senate and the 
President.
    Section 4 contains two sets of instructions to the 
Committee on Ways and Means: one for tax bills, and the other 
for debt reduction. The reporting schedule for the tax bills is 
as follows: bill #1, May 26; bill #2, June 23; bill #3, July 
28; bill #4, September 22; bill #5, May 26; and bill #6, 
September 22. The bills providing for a reduction in debt held 
by the public coincide with the first and last tax bills on May 
26 and September 22. The Committee assumes that it will be 
unnecessary to consider the second debt reduction bill if the 
President agrees to the first bill.
    Subsection (a) directs the Committee on Ways and Means to 
report legislation that will achieve a reduction in revenue of 
$9.554 billion in fiscal year 2001 and $145.648 billion over 5 
years. While the budget resolution assumes a year-to-year 
distribution of the revenue loss for the tax bills, the Ways 
and Means Committee bill may be higher or lower than these 
year-to-year levels so long as the net revenue loss does not 
exceed the first year and five-year totals. Subsection (a)(2) 
also includes a reserve for health-related legislation. For a 
full description of this provision, please see the appropriate 
section in ``Reserve Funds''.
    Subsection (b) directs the Committee on Ways and Means to 
report two bills that would, in total, reduce the level of the 
debt held by the public by $10 billion in fiscal year 2001 and 
not more than $20 billion over five years. No instruction is 
provided for changing the statutory debt limit, which includes 
the off-budget trust fund debt, because under this resolution 
the existing limits on the statutory debt of $5.95 trillion 
would not need to be changed until fiscal year 2004. The 
Committee notes that the reduction in debt held by the public 
could be achieved in a variety of ways, such as imposing a new 
statutory limit, as was introduced by Chairman Kasich and 
Representative Ryan in the House, or by providing a mandatory 
appropriation to a debt reduction account and then directing 
the Treasury Secretary to reduce net debt held by the public by 
an equivalent amount.

                            POINTS OF ORDER

    Section 5 extends a lock box for Social Security surpluses. 
Subsection (a) finds that Social Security is off-budget for 
purposes of the President's budget submission and the 
congressional budget process; the Old Age Survivors and 
Disability Insurance [OASDI] trust funds have been running 
surpluses for 17 years; and that these surpluses have been 
implicitly used to finance general operations of the Federal 
government. Subsection (a) also finds that this resolution is 
the second budget resolution to balance the budget without 
counting the Social Security surpluses. It also finds that the 
only way to ensure that Social Security surpluses are not used 
for other purposes is to balance the budget without using the 
Social Security surpluses and that the Congress and the 
President should take steps that are necessary to ensure that 
future budgets are balanced without using the Social Security 
surplus.
    Subsection (b) establishes a freestanding rule prohibiting 
the consideration in the House and Senate of any budget 
resolution that sets forth an on-budget deficit. It recognizes 
that to the extent the budget resolution establishes an on-
budget deficit, it is implicitly relying on Social Security to 
finance the general operations of the Federal government. 
Paragraph (2) clarifies that, for purposes of this section, the 
deficit levels are those set forth in the resolution pursuant 
to section 301 of the Congressional Budget Act of 1974. They 
may not include any adjustment to those aggregates for rule 
making provisions that provide for contingent adjustments in 
the aggregates for legislation that would strengthen social 
security through structural programmatic reform.
    Section 6 prohibits the House from considering legislation 
that would reduce the surplus below the levels set forth in 
section 2(4) of the resolution (as adjusted for the reserve 
funds). The reason for this new rule is to ensure that the 
portion of the surplus reserved for tax cuts is used to pay 
down the debt if the tax cuts do not become law. Under current 
law, committees can circumvent the allocations, aggregates and 
discretionary limits by simply designating legislation as 
emergencies. This designation results in a dollar-for-dollar 
increase in the allocations, aggregates, and discretionary 
spending limits. As one committee recently observed in a report 
accompanying a reported bill, the only real constraint on such 
committees is the approbation that would result if the 
emergency designated appropriations resulted in an on-budget 
deficit.
    This restriction is enforced by a point of order which, if 
sustained, would preclude furtherconsideration of the measure. 
The point of order would apply to both tax and spending bills. With 
respect to spending bills, the point of order would apply to both 
direct spending bills reported by authorizing committees and 
appropriations bills. For the purpose of the point of order, the 
surplus is at the level established in section 2(4). These levels are 
adjusted for the revenue legislation set forth in the reconciliation 
instructions in section 4 and subject to the adjustments in section 
4(a)(2) as well as the reserve funds in sections 8, 9, 10, 11, 12, 13, 
14 and 15.
    Section 7 establishes a new rule against bills that reduce 
the surplus similar to that in section 6, except that it 
applies only to fiscal year 2000. It establishes a freestanding 
rule that prohibits the consideration of any bill that would 
reduce the on-budget surplus below its current levels. This 
rule would apply in both the House and the Senate, and could 
only be waived in the Senate by a three-fifths vote. The bill 
provides exceptions for legislation providing tax cuts, 
implementing Social Security reform and implementing structural 
Medicare reform.

                             RESERVE FUNDS

    Sections 4(a)(2), 8, 9, 10, 11, 12, 13, 14, and 15 provide 
the Budget Committee chairman the authority to increase the 
budget aggregates, and in some cases the allocations, for 
specified legislation whose costs are not assumed in the 
allocation and/or aggregates. Absent these adjustments, any 
such legislation reported by these committees of jurisdiction 
would exceed the reporting committees' allocations in violation 
of section 302(f) of the Congressional Budget Act of 1974. 
Subjecting it to a point of order that would preclude the House 
from considering the measure. Budget resolutions have long 
included these adjustments pursuant to section 301(b)(4) of the 
Budget Act, which permits the budget resolution to include 
``such other matters, and require such other procedures, 
relating to the budget, as may be appropriate to carry out the 
purposes of this Act.''
    Section 4(a)(2) establishes a reserve fund for the tax 
provisions associated with the health related tax provisions in 
H.R. 2990. Because it has already passed the House (on October 
6, 1999), the adjustments could be made for a Senate amendment 
to that bill, the conference report on the bill, or any measure 
considered pursuant to the reconciliation instructions in 
section 4(a). This last option is viable only if the original 
bill is folded into one of the reconciliation bills. The Budget 
Committee chairman is directed to make the adjustment to 
revenue aggregates in section 2(1) and, if it is part of a 
reconciliation bill, the reconciliation instructions in section 
4(a). The adjustment is to be made in the amount of revenue 
reduction resulting from the bill for the specified purpose, 
but not to exceed $446 million in fiscal year 2001 and $4.3 
billion over 5-years.
    Section 8 establishes several procedures to ensure that 
$150 billion of the on-budget surplus is reserved for the tax 
cuts assumed in the resolution, and in the event they are not 
enacted into law, used to reduce the public debt. Subsection 
(a) directs the Budget Committee chairman to momentarily reduce 
the aggregate by the amount which the levels of Federal 
revenues should be changed for fiscal year 2001 ($150 billion 
over 5-years) is reduced to zero. In subsection (b) this level 
is then increased as each of the reconciliation bills is 
considered by the Congress.
    The reason for temporarily reducing the assumed tax cuts to 
zero is to ensure that no other bill diverts the amount of the 
surplus reserved for these bills to unrelated spending bills. 
Because the aggregate for the change in revenue would only be 
increased for the specified tax bills, no other tax bill could 
be considered by the House because it would not trigger an 
adjustment in the revenue floor subjecting the bill to a point 
of order under section 311(a) of the Congressional Budget Act 
of 1974. Similarly, spending bills could not effectively tap 
into this reserve by designating emergencies amounting to the 
amount of any tax cutsin the resolution that are not enacted 
because the surplus level would not reflect the assumed tax cuts and 
hence any spending bill that exceeded its allocation (by designating it 
as an emergency) would reduce the surplus below the adjusted level in 
the budget resolution. Once again, this would subject the bill to a 
point of order unless it were fully offset.
    As was the case in the fiscal year 2000 budget resolution, 
section 10 provides for an adjustment in the appropriate levels 
of the budget resolution if the Congressional Budget Office 
releases a report projecting an increase in the on-budget 
surplus. If there is an increase in the surplus relative to the 
March baseline, the Budget Committee chairman has the option to 
choose among any combination of the following: increasing the 
allocations to the authorizing committees; increasing the 
allocation of debt held by the public; and increasing the 
amount of revenue reduction. In any case, the sum of these 
adjustments cannot exceed the total of the change in revenue 
and debt assumed in the budget aggregates.
    Section 11 establishes a reserve fund for certain Medicare-
related legislation. The Budget Committee chairman has the 
option to increase both the allocations and aggregates for 
legislation providing for Medicare reform and prescription drug 
coverage. The adjustments are in the amount of budget authority 
provided by the bill for the specified purpose, but not to 
exceed $2 billion in both budget authority and outlays in 
fiscal year 2001 and $40 billion over the 5-year period. The 
reserve fund assumes that this legislation will not be part of 
a reconciliation bill.
    Section 12 establishes a reserve fund for agriculture for 
fiscal year 2000. The Budget Committee chairman is authorized 
to increase the allocations of budget authority and outlays to 
the Committee on Agriculture for legislation that provides 
income assistance to farmers and farm producers. The reserve 
fund is structured on the assumption that this assistance will 
be reported by the Committee on Agriculture as a freestanding 
bill, rather than be included in a supplemental appropriations 
bill, as has been the case in previous years. The adjustment is 
in the amount of budget authority and resulting outlays 
provided by the bill, but not to exceed $6 billion in fiscal 
year 2000. The resolution assumes that all of the budget 
authority will be obligated and paid out of the Treasury in 
fiscal year 2000.
    Section 13 provides a reserve fund for risk management or 
income support legislation in fiscal year 2001 similar to that 
included in last year's budget resolution. The reserve fund 
authorizes the Budget Committee chairman to increase the 
allocations for legislation related to crop insurance or other 
income support measures. The adjustment is at the option of the 
chairman, but must be in the amount of budget authority and 
resulting outlays provided by the bill, and cannot exceed 
$1.355 billion in budget authority and $595 million in outlays 
in fiscal year 2001, and $8.539 billion in budget authority and 
$7.223 billion in outlays over the 5-year period. The committee 
notes that a crop insurance bill, H.R. 2559, passed the House 
last year with a comparable adjustment in the fiscal year 2000 
budget resolution (H. Con. Res. 68) and has yet to be taken up 
by the Senate.
    Section 14 establishes a reserve fund for legislation 
permitting certain Federal employees to participate in the 
Thrift Savings Plan. The adjustment is for the revenue loss 
associated with this provision. The Chairman has the option to 
adjust the revenue aggregates by the revenue loss caused by the 
bill; but not to exceed $17 million in fiscal year 2001 and 
$107 million over five years. The reserve fund assumes the 
change in the Thrift Savings Plan will be outside of the 
reconciliation process.
    Section 15 sets forth the procedures for making adjustments 
pursuant to the reserve funds.
    Subsections (a) (1) and (2) provide that the adjustments 
are made only during the interval that the legislation is under 
consideration and do not take effect until the legislation is 
actually enacted. The treatment of these reserve funds is 
consistent with the treatment of adjustments for emergencies 
and other programs and initiatives under section 314 of the 
Congressional Budget Act.
    Subsection (a)(3) provides that in order to make the 
adjustments under sections 14 and 15, the Chairman must insert 
the adjustments in the Congressional Record.
    Subsection (a)(3) clarifies that any adjustments made under 
any of the reserve funds in the resolution have the same effect 
as if they were part of the original levels set forth in 
section 4. In other words, the adjusted levels are the levels 
that are used to enforce points of order against legislation 
that is inconsistent with the budget resolution's allocations 
and aggregates.
    Subsection (c) clarifies that the Committee on the Budget 
determines the estimates that are used to enforce points of 
order, as is the case for enforcing budget-related points of 
order pursuant to section 312 of the Budget Act.

                    ENFORCING THE BUDGET RESOLUTION

    The budget resolution is more than a planning document. The 
allocations of spending authority and the aggregate levels of 
both spending authority and revenues are binding on the 
Congress when it considers subsequent spending and tax 
legislation. Measures that would breach the levels set forth in 
the budget resolution are subject to points of order on the 
floor.
    Any Member of the House may raise a point of order against 
any tax or spending that creates new entitlement authority 
during certain points in a calendar year, or breaches the 
allocations or aggregate spending levels established in the 
budget resolution. If the point of order is sustained, the 
House is precluded from further consideration of the measure.
    The major Budget Act requirements are as follows:
    Section 302(f). Prohibits consideration of legislation that 
exceeds a committee's allocation of new budget authority. 
Section 302(f) applies to the budget year and the 5-year total 
for authorizing committees. For appropriations bills, however, 
it applies only to the budget year. An exception is provided 
for legislation exceeds the allocation of new budget authority 
but is offset by an increase in revenue above and beyond the 
level required by the budget resolution.
    Section 303(a). Prohibits consideration of spending and tax 
legislation before the House has passed a budget resolution. 
Section 303(a) does not apply to budget authority and revenue 
provisions first effective in an out year or to appropriation 
bills after May 15.
    Section 311(a)(1). Prohibits consideration of legislation 
that exceeds the ceiling on budget authority and outlays or 
reduces revenue below the revenue floor. Section 311(a)(1) 
applies to the budget year and 5-year total for bills 
increasing revenue, but only to the budget year for 
appropriations bills. Section 311 does not apply to spending 
bills that do not exceed the reporting committee's 302(a) 
allocation.
    Section 401(a). Prohibits consideration of legislation 
providing borrowing authority, new credit authority, or 
contract authority that is not controlled through the annual 
appropriations process.
    Section 401(b)(1). Prohibits consideration of legislation 
creating new entitlement authority in the year preceding the 
budget year. It does not apply to trust funds primarily 
financed by earmarked taxes.
    Under sections 303(g), 308(b)(2), and 311(c) of the Budget 
Act, the Budget Committee advises the presiding officer on the 
application of points of order against specific legislation 
pending before the House. House Budget Committee rules also 
authorize the chairman to poll the committee on recommendations 
to the Rules Committee as to whether to waive points of order 
in enforcing the Budget Act.
    Senate Enforcement Procedures. In the Balanced Budget Act, 
the Senate reaffirmed the extension of the pay-as-you-go point 
of order through fiscal year 2002. This point of order 
prohibits the consideration of any mandatory spending or tax 
legislation that would increase the deficit in the first fiscal 
year, the first 5 fiscal years or the second 5 fiscal years 
covered by the most recently passed budget resolution. Sixty 
votes are required to waive the point of order.

                   STATUTORY CONTROLS OVER THE BUDGET

    In addition to the allocations and aggregate spending 
levels in the budget resolution, the Federal budget is subject 
to statutorily established spending limits and budgetary 
controls. The Balanced Budget Act [BBA] revised and extended 
the caps on discretionary spending as well as the pay-as-you-go 
[PAYGO] requirements for entitlement and tax legislation. Both 
the spending caps and PAYGO requirements are enforced with 
automatic spending cuts through a process known as 
sequestration.

                     discretionary spending limits

    Under the BBA there is a combined limit on all 
discretionary appropriations for fiscal years 1998 through 
2002. In addition, the 1998 highway authorization act 
(``Transportation Equity Act for the 21st Century'' or TEA-21) 
set forth separate categories for highway and mass transit 
spending for fiscal years 1999 through 2002. A separate limit 
for programs for the Violent Crime Reduction Act lapsed in 1999 
and programs formerly subject to that limit are now under the 
general purpose discretionary limit.
    The BBA provides automatic adjustments to the spending caps 
for appropriations bills that provide budget authority and the 
resulting outlays (subject to certain limitations) for 
emergencies, estimating differences in outlays, continuing 
disability reviews, the International Monetary Fund [IMF], 
international arrearages, and an Earned Income Tax Credit 
compliance initiative. Similarly, TEA-21 provides for an 
automatic cap adjustment for changes in revenue relating to the 
highway spending category.

                  STATUTORY CAPS AS CURRENTLY ADJUSTED
                        [In millions of dollars]
------------------------------------------------------------------------
           Fiscal year                 2000         2001         2002
------------------------------------------------------------------------
General Purpose:
    BA...........................      566,472      541,095      550,333
    O............................      564,913      547,279      537,231
Highways:
    BA...........................          n/a          n/a          n/a
    O............................       24,574       26,920       27,925
Mass Transit:
    BA...........................          n/a          n/a          n/a
    O............................        4,117        4,639        5,419
Violent Crime Reduction:
    BA...........................        4,500  ...........  ...........
    O............................        6,444  ...........  ...........
                                  --------------------------------------
Total:
    BA...........................      584,843      541,095      550,333
    O............................      573,113      548,258      537,540
------------------------------------------------------------------------

                       pay-as-you-go requirements

    OBRA 1990 also established a pay-as-you-go [PAYGO] 
requirement for tax and entitlement legislation. Under PAYGO, 
the sum of all tax and entitlement (or otherwise mandatory) 
legislation may not reduce the surplus in any fiscal year.
    The Balanced Budget Act of 1997 extended the PAYGO 
requirements through fiscal year 2002. As amended by OBRA 93, 
PAYGO had been scheduled to expire at the end of fiscal year 
1998. PAYGO is enforced through a sequestration applied to all 
nonexempt entitlement programs. The law is somewhat unclear 
whether PAYGO lapses when there is an on-budget surplus.
    The Consolidated Appropriations Act of 2000 changed the 
balances of direct spending and receipts legislation for any 
fiscal year to zero. As a result, bills enacted since January 
4, 2000, the balances on the PAYGO scorecard are as follows:

                                             PAY-AS-YOU-GO SCORECARD
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                     Total  2001-
                                                                   2001   2002   2003   2004   2005      2005
----------------------------------------------------------------------------------------------------------------
Beginning PAYGO Balances (as required by The Consolidated             0      0      0      0      0            0
 Appropriations Act of 2000)....................................
Omnibus Parks Technical Corrections Act of 1999 H.R. 149 P.L.         6      4      2      0      0           12
 106-176........................................................
Electronic Benefit Transfer Interoperability and Portability Act      1      1      1      1      1            5
 of 2000 S. 1733 P.L. 106-171...................................
                                                                 -----------------------------------------------
      Total Deficit impact of enacted legislation...............      7      5      3      1      1           17
----------------------------------------------------------------------------------------------------------------


                      SENSES OF HOUSE AND CONGRESS

    The budget resolution contains 14 Senses of the House or 
Congress provisions that have no legal force but reflect the 
Congress' views on a variety of budget-related issues. The 
section numbers and section headings of these reserve funds are 
as follows:
    Section 10(c). Sense of Congress endorsing legislation 
establishing a limit on debt held by the debt reduction lock 
box.
    Section 16. Sense of Congress on waste, fraud and abuse.
    Section 17. Sense of Congress on providing additional 
dollars to the classroom.
    Section 18. Sense of Congress regarding emergency spending.
    Section 19. Sense of the House on estimates of the impact 
of regulations on the private sector.
    Section 20. Sense of the House on biennial budgeting.
    Section 21. Sense of Congress on access to health insurance 
and preserving home health services for all medicare 
beneficiaries.
    Section 22. Sense of Congress regarding Medicare+Choice 
programs/reimbursement rates.
    Section 23. Sense of the House on directing the Internal 
Revenue Service to accept negative numbers in farm income 
averaging.
    Section 24. Sense of the House regarding the stabilization 
of certain Federal Payments to States, counties, and boroughs.
    Section 25. Sense of Congress on the importance of the 
National Science Foundation.
    Section 26. Sense of Congress regarding skilled nursing 
facilities.
    Section 27. Sense of Congress on special education.
    Section 28. Sense of Congress on assumed funding levels for 
special education.
    Section 29. Sense of Congress on a federal employee pay 
raise.
    Section 30. Sense of Congress regarding HCFA draft 
guidelines.
    Section 31. Sense of Congress on asset-building for the 
working poor.

                                     TABLE 1.--TAX EXPENDITURE ESTIMATES BY BUDGET FUNCTION, FISCAL YEARS 2000-2004
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Corporations                                 Individuals                    Total--
                     Function                     ------------------------------------------------------------------------------------------------------
                                                     2000     2001     2002     2003     2004     2000     2001     2002     2003     2004     2000-04
--------------------------------------------------------------------------------------------------------------------------------------------------------
National Defense
    Exclusion of benefits and allowances to Armed  .......  .......  .......  .......  .......      2.0      1.9      2.0      2.0      2.0          9.9
     Forces personnel............................
    Exclusion of military disability benefits....  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1          0.4
International Affairs
    Exclusion of income earned abroad by U.S.      .......  .......  .......  .......  .......      2.4      2.6      2.8      3.0      3.3         14.1
     citizens....................................
    Exclusion of certain allowances for Federal    .......  .......  .......  .......  .......      0.2      0.2      0.3      0.3      0.3          1.3
     employees abroad............................
    Exclusion of income of foreign sales               2.7      2.9      3.1      3.3      3.6  .......  .......  .......  .......  .......         15.6
     corporations (FSCs).........................
    Deferral of active income of controlled            3.4      3.7      4.0      4.2      4.5  .......  .......  .......  .......  .......         19.8
     foreign corporations........................
    Inventory property sales source rule               4.0      4.2      4.4      4.6      4.8  .......  .......  .......  .......  .......         22.0
     exception...................................
    Deferral of certain financing income.........      0.5      0.9      0.4  .......  .......  .......  .......  .......  .......  .......          1.8
General Science, Space, and Technology
    Tax credit for qualified research              .......      3.0      6.8      3.7      3.8  .......  .......  .......  .......  .......         17.3
     expenditures................................
    Expensing of research and experimental             2.9      2.8      2.9      3.1      3.2  .......  .......  .......  .......  .......         14.9
     expenditures................................
Energy
    Expensing of exploration and development
     costs:
        Oil and gas..............................      0.4      0.5      0.5      0.5      0.5    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          2.4
        Other fuel...............................    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
    Excess of percentage over cost depletion:
        Oil and gas..............................      0.5      0.5      0.5      0.5      0.5      0.2      0.2      0.2      0.2      0.2          3.5
        Other fuels..............................      0.2      0.2      0.2      0.2      0.2      0.1      0.1      0.1      0.1      0.1          1.5
    Tax credit for enhanced oil recovery costs...      0.1      0.1      0.1      0.1      0.1    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.3
    Tax credit for production of non-conventional      1.1      1.1      1.2      1.2      1.2      0.2      0.3      0.3      0.3      0.3          7.1
     fuels.......................................
    Tax credits for alcohol fuels \2\............    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]  .......  .......  .......  .......  .......        [\1\]
    Exclusion of interest on State and local         [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.1      0.1      0.1      0.1      0.1          0.6
     government industrial development bonds for
     energy production facilities................
    Exclusion of energy conservation subsidies     .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.2
     provided by public utilities................
    Tax credit for investment in solar and           [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.3
     geothermal energy facilities................
    Tax credit for electricity production from       [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.1      0.1      0.1      0.1      0.1          0.4
     wind, biomass, and poultry waste............
Natural Resources and Environment
    Expensing of exploration and development         [\1\]      0.1      0.1      0.1      0.1    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.3
     costs, nonfuel minerals.....................
    Excess of percentage over cost depletion,          0.2      0.2      0.2      0.2      0.2      0.1      0.1      0.1      0.1      0.1          1.5
     nonfuel minerals............................
    Expensing of multiperiod timber-growing costs      0.1      0.2      0.2      0.2      0.2    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.9
    Exclusion of interest on State and local           0.1      0.1      0.1      0.1      0.1       .3      0.3      0.3      0.3      0.3          2.4
     government sewage water, and hazardous waste
     facilities bonds............................
    Special rules for mining reclamation reserves    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.2
    Special tax rate for nuclear decommissioning       0.1      0.1      0.1      0.2      0.2  .......  .......  .......  .......  .......          0.8
     reserve fund................................
    Exclusion of contributions in aid of             [\1\]    [\1\]    [\1\]    [\1\]    [\1\]  .......  .......  .......  .......  .......          0.1
     construction for water and sewer utilities..
Agriculture
    Expensing of soil and water conservation         [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.2
     expenditures................................
    Expensing of fertilizer and soil conditioner     [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.1      0.1      0.1      0.1          0.3
     costs.......................................
    Expensing of the costs raising dairy and         [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.2      0.2      0.2      0.2      0.2          0.9
     breeding cattle.............................
    Exclusion of cost-sharing payments...........    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
    Exclusion of cancellation of indebtedness      .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.2
     income of farmers...........................
    Cash accounting for agriculture..............    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.5      0.6      0.6      0.6      0.6          3.0
    Income averaging for farmers.................  .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
    Five-year carryback period for net operating     [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.1      0.1    [\1\]    [\1\]    [\1\]          0.3
     losses attributable to farming..............
Commerce and Housing
    Financal institutions:
        Exemption of Credit union income.........      0.8      0.9      0.9      0.9      1.0  .......  .......  .......  .......  .......          4.5
    Insurance companies:
        Exclusion of investment income on life         1.3      1.3      1.4      1.4      1.5     22.9     23.6     24.3     25.1     25.9        128.7
         insurance and annuity contracts.........
        Small life insurance company taxable           0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......          0.6
         income adjustment.......................
        Special treatment of life insurance            1.1      1.2      1.2      1.3      1.3  .......  .......  .......  .......  .......          6.1
         company reserves........................
        Deduction of unpaid property loss              2.8      2.9      2.9      3.0      3.1  .......  .......  .......  .......  .......         14.7
         reserves for property and casualty
         insurance companies.....................
        Special deduction for Blue Cross and Blue      0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......          0.6
         Shield companies........................
    Housing:
        Deduction for mortgage interest on owner-  .......  .......  .......  .......  .......     55.2     57.7     60.2     62.8     65.5        301.4
         occupied residences.....................
        Deduction for property taxes on owner-     .......  .......  .......  .......  .......     18.9     19.6     20.3     20.9     21.6        101.3
         occupied residences.....................
        Exclusion of capital gains on sales of     .......  .......  .......  .......  .......     12.9     12.9     13.0     13.1     13.2         65.1
         principal residences....................
        Exclusion of interest on State local           0.2      0.2      0.2      0.2      0.3      0.6      0.6      0.6      0.6      0.6          4.3
         government bonds for owner-occupied
         housing.................................
        Exclusion of interest on State and local       0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1          0.9
         government bonds for rental housing.....
        Deprecation of rental housing in excess        0.2      0.2      0.2      0.2      0.2      1.5      1.5      1.6      1.7      1.9          9.2
         of alternative depreciation system......
        Tax credit for low-income housing........      1.3      1.4      1.4      1.4      1.4      2.5      2.6      2.6      2.7      2.7         20.0
        Tax credit for first-time homebuyers in    .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
         the District of Columbia................
        Tax credit for rehabilitation of historic      0.3      0.4      0.4      0.4      0.4      0.1      0.1      0.1      0.1      0.1          2.3
         structures..............................
    Other business and commerce:
        Reduced rates of tax on long-term capital  .......  .......  .......  .......  .......     36.0     37.8     38.9     40.1     41.8        194.6
         gains...................................
        Exclusion of capital grants at death.....  .......  .......  .......  .......  .......     23.7     25.2     26.9     28.2     32.1        136.1
        Carryover basis of capital gains on gifts  .......  .......  .......  .......  .......      2.3      2.5      2.7      3.0      3.3         13.8
        Deferral of gain on non-dealer                 0.2      0.2      0.2      0.2      0.2      0.3      0.3      0.3      0.3      0.3          2.5
         installment sales.......................
        Deferral of gain on like-kind exchanges..      1.0      1.1      1.2      1.2      1.3      0.4      0.4      0.4      0.4      0.4          7.8
        Deferral of gain on involuntary            .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
         conversions resulting from
         Presidentially-declared disasters.......
        Depreciation of buildings other than           1.5      1.2      1.2      1.1      0.9      0.7      0.5      0.5      0.4      0.3          8.3
         rental housing in excess of alternative
         depreciation system.....................
        Depreciation of equipment in excess of        24.9     24.3     23.7     23.3     22.8      6.8      6.6      6.2      5.9      5.6        150.2
         alternative depreciation system.........
        Expensing of depreciable business              0.2      0.2      0.2      0.1      0.1      0.5      0.6      0.6      0.4      0.2          3.1
         property................................
        Amortization of business startup costs...    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.3      0.3      0.4      0.4      0.4          1.8
        Reduced rates on first $10,000,000 of          4.3      4.2      4.4      4.5      4.6  .......  .......  .......  .......  .......         22.0
         corporate taxable income................
        Permanent exemption from imputed interest    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.2      0.2      0.2      0.2      0.3          1.2
         rules...................................
        Expensing of magazine circulation            [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.2
         expenditures............................
        Speical rules for magazine, paperback        [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
         book, and record returns................
        Completed contract rules.................      0.2      0.2      0.2      0.2      0.2    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          1.1
        Cash accounting, other than agriculture..    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.1      0.1      0.1      0.1      0.1          0.6
        Exclusion of interest on State and local       0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.2      0.2      0.2          1.6
         government small-issue industrial
         development bonds.......................
        Exception from net operating loss              0.5      0.5      0.5      0.5      0.5  .......  .......  .......  .......  .......          2.5
         limitations for corporations in
         bankruptcy proceedings..................
        Tax credit for employer-paid FICA taxes        0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.2      0.2      0.2          1.8
         on tips.................................
Transportation
    Deferral of tax on capital construction funds      0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......          0.5
     of shipping companies.......................
    Exclusion of employer-paid transportation      .......  .......  .......  .......  .......      3.6      3.6      3.7      3.7      3.8         18.4
     benefits....................................
    Exclusion of interest on State and local         [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.4
     government bonds for high-speed rail........
Community and Regional Development
    Empowerment zone tax incentives..............      0.1      0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.1      0.1          1.2
    District of Columbia tax incentives..........      0.1      0.1      0.1      0.1      0.1    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.4
    Indian reservation tax incentives............      0.1      0.1      0.1      0.1    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.4
    Expensing of redevelopment costs in certain      [\1\]      0.1      0.1    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.3
     environmentally contaminated areas
     (``Brownfields'')...........................
    Tax credit for rehabilitation of structures,     [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
     other than historic structures..............
    Exclusion of interest on State and local           0.2      0.2      0.2      0.2      0.2      0.4      0.4      0.4      0.4      0.4          2.9
     government bonds for private airports,
     docks, and mass-commuting facilities........
Education, Training, Employment, and Social
 Services
    Education and training:
        Tax credits for tuition for post-          .......  .......  .......  .......  .......      5.4      5.4      5.5      5.6      5.6         27.5
         secondary education.....................
        Deduction for interest on student loans..  .......  .......  .......  .......  .......      0.3      0.4      0.4      0.4      0.4          1.8
        Exclusion of earnings of trust accounts    .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.2
         for higher education (``education
         IRAs'').................................
        Exclusion of interest on education         .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
         savings bonds...........................
        Deferral of tax on earnings of qualified   .......  .......  .......  .......  .......      0.1      0.1      0.1      0.2      0.2           07
         State tuition programs..................
        Exclusion of scholarship and fellowship    .......  .......  .......  .......  .......      1.1      1.2      1.3      1.4      1.5          6.5
         income..................................
        Exclusion of employer-provided education   .......  .......  .......  .......  .......      0.3      0.4      0.1  .......  .......          0.8
         assistance benefits.....................
        Parental personal exemption for students   .......  .......  .......  .......  .......      0.7      0.8      0.8      0.8      0.8          3.9
         age 19 to 23............................
        Exclusion of interest on State and local       0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.2      0.2      0.2          1.6
         government student loan bonds...........
        Exclusion of interest on State and local       0.2      0.2      0.2      0.2      0.2      0.5      0.5      0.5      0.5      0.5          3.7
         government bonds for private nonprofit
         educational facilities..................
        Tax credit for holders of qualified zone       0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......          0.3
         academy bonds...........................
        Deduction for charitable contributions to      0.9      1.0      1.0      1.1      1.2      3.9      4.3      4.6      4.9      5.2         28.2
         educational institutions................
    Employment:
        Exclusion of employee meals and lodging    .......  .......  .......  .......  .......      0.8      0.8      0.8      0.9      0.9          4.2
         (other than military)...................
        Exclusion of benefits provided under       .......  .......  .......  .......  .......      6.9      7.3      7.9      8.4      9.0         39.5
         cafeteria plans \3\.....................
        Exclusion of housing allowances for        .......  .......  .......  .......  .......      0.4      0.4      0.4      0.4      0.4          2.0
         ministers...............................
        Exclusion of miscellaneous fringe          .......  .......  .......  .......  .......      6.5      6.9      7.3      7.8      8.2         36.7
         benefits................................
        Exclusion of employee awards.............  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1          0.7
        Exclusion of income earned by voluntary    .......  .......  .......  .......  .......      1.4      1.5      1.6      1.7      1.7          7.9
         employees' beneficiary associations.....
        Special tax provisions for employee stock      0.8      0.8      0.8      0.9      0.9      0.2      0.2      0.2      0.2      0.3          5.3
         ownership plans (ESOPs).................
        Work opportunity tax credit..............      0.4      0.4      0.3      0.1      0.1      0.1      0.1      0.1    [\1\]    [\1\]          1.4
        Welfare-to-work tax credit...............      0.1      0.1      0.1    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.4
    Social services:
        Tax credit for children under age 17 \4\.  .......  .......  .......  .......  .......     17.1     17.1     17.0     16.9     16.4         84.5
        Tax credit for child and dependent care    .......  .......  .......  .......  .......      2.2      2.2      2.2      2.2      2.1         11.0
         expenses................................
        Exclusion of employer-provided child care  .......  .......  .......  .......  .......      0.4      0.4      0.5      0.5      0.5          2.4
         \5\.....................................
        Exclusion of certain foster care payments  .......  .......  .......  .......  .......      0.5      0.5      0.5      0.6      0.6          2.7
        Adoption credit and employee adoption      .......  .......  .......  .......  .......      0.2      0.3      0.2      0.1      0.1          0.8
         benefits exclusion......................
        Deduction for charitable contributions,        1.5      1.6      1.8      1.9      2.1     21.4     23.1     24.8     26.6     28.4        133.1
         other than for education and health.....
        Tax credit for disabled access               [\1\]    [\1\]    [\1\]    [\1\]    [\1\]      0.1      0.1      0.1      0.1      0.1          0.4
         expenditures............................
Health
    Exclusion of employer contributions for        .......  .......  .......  .......  .......     58.0     61.1     64.4     68.2     72.5        324.1
     health care, health insurance premiums, and
     long-term care insurance premiums \6\.......
    Exclusion of medical care and CHAMPUS/TRICARE  .......  .......  .......  .......  .......      1.6      1.6      1.6      1.6      1.6          8.0
     medical insurance for military dependents,
     retirees, and retiree dependents............
    Deduction for health insurance premiums and    .......  .......  .......  .......  .......      1.2      1.3      1.6      2.4      2.8          9.3
     long-term care insurance premiums by the
     self-employed...............................
    Deduction for medical expenses and long-term   .......  .......  .......  .......  .......      4.4      4.8      5.1      5.4      5.8         25.4
     care expenses...............................
    Exclusion of workers' compensation benefits    .......  .......  .......  .......  .......      4.5      4.7      4.9      5.1      5.4         24.6
     (medical benefits)..........................
    Medical savings accounts.....................  .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
    Exclusion of interest on State and local           0.3      0.3      0.3      0.3      0.3      0.8      0.8      0.9      0.9      0.9          5.9
     government bonds for private hospital
     facilities..................................
    Deduction for charitable contributions to          0.8      0.8      0.9      1.0      1.1      2.7      2.9      3.1      3.4      3.6         20.4
     health organizations........................
    Tax credit for orphan drug research..........      0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......          0.5
Medicare
    Exclusion of untaxed Medicare benefits:
        Hospital insurance.......................  .......  .......  .......  .......  .......     16.1     16.8     17.7     18.8     20.3         89.7
        Supplementary medical insurance..........  .......  .......  .......  .......  .......      8.8      9.8     11.1     12.5     14.1         56.3
Income Security
    Exclusion of workers' compensation benefits    .......  .......  .......  .......  .......      5.0      5.3      5.5      5.8      6.0         27.6
     (disability and survivors payments).........
    Exclusion of special benefits for disabled     .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1          0.4
     coal miners.................................
    Exclusion of cash public assistance benefits.  .......  .......  .......  .......  .......      0.7      0.7      0.7      0.8      0.8          3.7
    Net exclusion of pension contributions and
     earnings:
        Employer plans...........................  .......  .......  .......  .......  .......     76.0     80.7     83.6     86.5     89.3        416.0
        Individual retirement plans..............  .......  .......  .......  .......  .......     12.2     12.7     14.0     15.3     16.5         70.7
        Keogh plans..............................  .......  .......  .......  .......  .......      5.0      5.1      5.2      5.3      5.4         26.1
    Exclusion of other employee benefits:
        Premiums on group term life insurance....  .......  .......  .......  .......  .......      2.0      2.1      2.2      2.3      2.4         11.0
        Premiums on accident and disability        .......  .......  .......  .......  .......      0.2      0.2      0.2      0.2      0.2          1.0
         insurance...............................
    Additional standard deduction for the blind    .......  .......  .......  .......  .......      2.0      2.1      2.2      2.2      2.3         10.8
     and the elderly.............................
    Tax credit for the elderly and disabled......  .......  .......  .......  .......  .......    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.1
    Deduction for casualty and theft losses......  .......  .......  .......  .......  .......      0.2      0.2      0.3      0.3      0.3          1.3
    Earned income credit (EIC) \7\...............  .......  .......  .......  .......  .......      4.0      4.1      4.1      4.4      4.4         21.1
Social Security and Railroad Retirement
    Exclusion of untaxed social security and       .......  .......  .......  .......  .......     24.4     25.4     26.4     27.4     28.3        131.9
     railroad retirement benefits................
Veterans' Benefits and Services
    Exclusion of veterans' disability              .......  .......  .......  .......  .......      2.1      2.2      2.3      2.4      2.4         11.4
     compensation................................
    Exclusion of veterans' pensions..............  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1          0.6
    Exclusion of veterans' readjustment benefits.  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1          0.6
    Exclusion of interest on State and local         [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]    [\1\]          0.2
     government bonds for veterans' housing......
General Purpose Fiscal Assistance
    Exclusion of interest on public purpose State      5.1      5.3      5.4      5.6      5.8     13.0     13.6     14.0     14.4     14.9         96.9
     and local government debt...................
    Deduction of nonbusiness State and local       .......  .......  .......  .......  .......     35.5     36.8     38.1     39.2     40.4        190.0
     government income and a personal property
     taxes.......................................
    Tax credit for Puerto Rico and possession          3.8      4.0      3.6      3.2      3.0  .......  .......  .......  .......  .......         17.6
     income, and Puerto Rico economic activity...
Interest
    Deferral of interest on savings bonds........  .......  .......  .......  .......  .......      1.2      1.2      1.2      1.2      1.2         6.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Positive tax expenditure of less than $50 million.
\2\ In addition, the exemption from excise tax for alcohol fuels results in a reduction in excise tax receipts, net of income tax effect, of $0.5
  billion per year in fiscal years 2000 through 2004.
\3\ Estimate includes amounts of employer-provided health insurance purchased through cafeteria plans and employer-provided child care purchased
  dependent care flexible spending accounts. These amounts are also included in other line items in this table.
\4\ The figures in the table show the effect on the child credit on receipts. The increase in outlays is: $0.8 billion in 2000, $0.8 billion in 2001,
  $0.8 billion in 2002, $0.8 billion in 2003, and $0.8 billion in 2004.
\5\ Estimate includes employer-provided child care purchased through dependent care flexible spending accounts.
\6\ Estimate includes employer-provided health insurance purchased through cafeteria plans.
\7\ The figures in the table show the effect of the earned income credit on receipts. The increase in outlays is: $25.8 billion in 2000, $26.2 billion
  in 2001, $27.0 billion in 2002, $27.4 billion in 2003, and $28.1 billion in 2004.

Note: Details may not add to totals due to rounding.

Source: Joint Committee on Taxation.

                          Revenue Comparisons


 Table 1.--Comparison of Total Budget Revenues for President's Request 
                      and Committee Recommendation

                        [In billions of dollars]

Fiscal Year:                                                      Amount
    1995 Actual...............................................   1,351.8
    1996 Actual...............................................   1,453.1
    1997 Actual...............................................   1,579.3
    1998 Actual...............................................   1,721.8
    1999 Actual...............................................   1,827.5
    2000 Estiimated (CBO).....................................   1,945.1
Fiscal Year 2001:
    Administration's Request (February 2000)..................   2,025.9
    Committee Level...........................................   2,006.3
Fiscal Year 2002:
    Administration's Request (February 2000)..................   2,097.1
    Committee Level...........................................   2,074.3
Fiscal Year 2003:
    Administration's Request (February 2000)..................   2,171.0
    Committee Level...........................................   2,145.7
Fiscal Year 2004:
    Administration's Request (February 2000)..................   2,261.9
    Committee Level...........................................   2,220.5
Fiscal Year 2005:
    Administration's Request (February 2000)..................   2,352.4
    Committee Level...........................................   2,316.4

 Table 2.--Comparison of On-Budget Revenues for President's Budget and 
                        Committee Recommendation

Fiscal Year:            [In billions of dollars]
    1995 Actual...............................................   1,000.8
    1996 Actual...............................................   1,085.6
    1997 Actual...............................................   1,187.3
    1998 Actual...............................................   1,292.4
    1999 Actual...............................................   1,383.0
    2000 Estimated (CBO)......................................   1,465.5
Fiscal Year 2001:
    Administration's Request (February 2000)..................   1,524.4
    Committee Level...........................................   1,504.8
Fiscal Year 2002:
    Administration's Request (February 2000)..................   1,572.2
    Committee Level...........................................   1,549.4
Fiscal Year 2003:
    Administration's Request (February 2000)..................   1,623.9
    Committee Level...........................................   1,598.5
Fiscal Year 2004:
    Administration's Request (February 2000)..................   1,692.0
    Committee Level...........................................   1,650.6
Fiscal Year 2005:
    Administration's Request (February 2000)..................   1,755.1
    Committee Level...........................................   1,719.1

                      TABLE 3.--CBO BASELINE REVENUES BY SOURCE, UNDER PAST AND CURRENT LAW
                  [Includes on- and off-budget revenues, fiscal years, in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Projected
                                                     1950    1960    1970    1980     1990   -------------------
                                                                                                2000      2001
----------------------------------------------------------------------------------------------------------------
Individual Income Tax.............................    15.8    40.7    90.4   244.1     466.9     944.6     985.5
Corporate Income Tax..............................    10.4    21.5    32.8    64.6      93.5     189.4     189.4
Social Insurance Tax and contributions............     4.3    14.7    44.4   157.8     380.0     653.3     683.5
Excises...........................................     7.6    11.7    15.7    24.3      35.3      68.2      70.7
Estate and Gift taxes.............................     0.7     1.6     3.6     6.4      11.5      30.4      31.6
Customs Duties....................................     0.4     1.1     2.4     7.2      16.7      18.8      20.2
Miscellaneous Receipts............................     0.2     1.2     3.4    12.7      28.0      40.4      35.5
                                                   -------------------------------------------------------------
      Total \1\...................................    39.4    92.5   192.7   517.1   1,031.9   1,945.1   2,016.3
On-Budget Revenues................................    37.3    81.9   159.2   403.9     750.2   1,465.5   1,514.8
Off-Budget Revenues \2\...........................     2.1    10.6    33.5   113.2     281.7     479.6    501.5
----------------------------------------------------------------------------------------------------------------
\1\ Details may not sum to totals due to rounding.
\2\  Social Security (OASDI) revenues.

 Source: CBO March 2000 baseline revenues.


            TABLE 4.--CBO BASELINE REVENUES BY SOURCE, AS PERCENT OF GDP, UNDER PAST AND CURRENT LAW
                   [Includes on- and off-budget revenues, fiscal year, in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Project
                                                     1950    1960    1970    1980     1990   -------------------
                                                                                                2000      2001
----------------------------------------------------------------------------------------------------------------
Individual Income Tax.............................     5.8     7.9     9.0     9.0       8.2       9.9       9.8
Corporate Income Tax..............................     3.8     4.1     3.3     2.4       1.6       2.0       1.9
Social Insurance Tax and Contributions............     1.6     2.8     4.4     5.8       6.7       6.8       6.8
Excises...........................................     2.8     2.3     1.6     0.9       0.6       0.7       0.7
Estate and Gift Taxes.............................     0.2     0.3     0.4     0.2       0.2       0.3       0.3
Customs Duties....................................     0.1     0.2     0.2     0.3       0.3       0.2       0.2
Miscellaneous.....................................     0.1     0.2     0.3     0.5       0.5       0.4       0.4
      Total\1\....................................    14.4    17.8    19.1    19.0      18.2      20.3      20.1
On-Budget Revenues................................    13.6    15.8    15.8    14.9      13.2      15.3      15.1
Office-Budget Revenue\2\..........................      08     2.1     3.3     4.2       5.0       5.0       5.0
----------------------------------------------------------------------------------------------------------------
\1\ Details may not sum to totals due to rounding.
\2\ Social Security (OASDI) revenues.

Source: CBO March 2000 baseline revenues.


                       ADDITIONAL REPORT LANGUAGE

    The following additional report language was submitted 
pursuant to amendments and agreements accepted during the mark-
up of the budget resolution:
Revenue
    The resolution assumes enactment of a patient's bill of 
rights for people in managed care plans and assumes consumer 
health protections prescribed in the House-passed Patients' 
Bill of Rights Act (H.R. 2990). A portion of the net tax cut, 
$4.4 billion over 5 years, is reserved from the net tax cut to 
go to income and payroll effects resulting from the patients' 
bill of rights.
All Functions
    Agreement was reached between Chairman Kasich and Mr. 
Hoeffel regarding corporate welfare. Chairman Kasich agreed to 
hold additional hearings in either full committee or in one of 
the task forces on H.R. 3221, the Corporate Welfare Reform 
Commission Act of 1999.
Natural resources and environment
    The budget resolution assumes that the Pacific Northwest 
salmon recovery program should be a high priority.
    The budget resolution assumes that funding for the U.S. 
Army Corps of Engineers for general construction, for general 
operation and maintenance, and for operating and maintaining 
the St. Lawrence Seaway will come from the general fund and the 
receipts of the harbor maintenance excise tax and not from the 
proposed harbor services fee in the administration's budget 
request.
    There is agreement in the committee regarding the 
stabilization of certain Federal payments to States, counties, 
and boroughs. A sense of the House was added to the resolution 
stating that Federal revenue sharing payments to States, 
counties, and boroughs should be stabilized and maintained for 
the long-term benefit of schools, roads, public services, and 
communities, and that the provision of a stable, permanent 
funding is a priority of the 106th Congress.
Agriculture
    The House Budget Committee has included more than $8 
billion over 5 years to fund comprehensive crop insurance 
reform legislation. Members of the House of Representativeshave 
met their responsibility as provided in last year's resolution 
regarding crop insurance reform by passing H.R. 2559 on September 30, 
1999.
    Despite the passage of a joint budget resolution in April 
1999, which provided funding for reform legislation, the full 
Senate has yet to act. Such inaction has resulted in continued 
and unnecessary hardship for farmers across this country. They 
are laboring under inadequate crop insurance coverage, 
resulting in higher costs to farmers and continued uncertain 
government assistance in protecting them from nature's 
elements.
    The committee strongly urges the Senate to act on crop 
insurance legislation quickly. Farmers have waited long enough. 
It is critical that Congress enact crop insurance reform. 
Failure to do so will continue to subject farmers to 
uncertainty and higher costs resulting from a program badly in 
need of reform.

Health

    The committee encourages the Secretary of Health and Human 
Services (HHS) to expedite its review of State Children's 
Health Insurance Program (SCHIP) waivers in response to the 
Nation's Governors by establishing a reasonable time-frame for 
the review process.
    The committee recognizes the urgent and growing need to 
meet the varied needs of people suffering with Alzheimer's 
disease. More than 4 million Americans are afflicted with 
Alzheimer's disease, and that number is estimated to grow to 14 
million by the year 2050. Today, more than 19 million people 
have a family member with the disease. One in 10 persons over 
the age of 65 will develop Alzheimer's disease. More troubling, 
nearly half of those over the age of 85 will become a victim.
    The Federal Government spends only $1 in research for every 
$250 in cost burden on society for Alzheimer's, and the total 
Federal investment of roughly $400 million translates into only 
$100 for every person who currently has the disease. By 
comparison, the Government spends three to five times more on 
research into heart disease, cancer, and AIDS, even though the 
cost to society of Alzheimer's disease is just as great.
    The committee believes that an important step in fighting 
Alzheimer's disease is the encouragement of clinical research 
and training, which will complement the many excellent basic 
research efforts currently funded through the National 
Institutes of Health [NIH], the National Institute on Aging 
[NIA], and in the private sector.
    The committee believes further that research for a cure for 
tomorrow is critical, but meeting the needs of Alzheimer's 
patients today is urgent, and that Congress should address 
those needs in the following way:
    Create the Alzheimer's Clinical Research and Training 
Awards Program to train physicians to recognize and treat 
Alzheimer's disease, and to dedicate their careers to 
improvingcare for Alzheimer's patients by bridging the gap that exists 
between basic and clinical research.
    The awards program will foster physician dedication to a 
career in research, diagnosis, and treatment of Alzheimer's 
disease by awarding junior and mid-level physicians who have 
demonstrated the potential for a lifelong commitment to 
researching and treating Alzheimer's, with 1 year stipend to 
train as an Alzheimer's researcher/clinician.
    The awards program will be administered through the NIA, 
and should provide support for institutions focused primarily 
on Alzheimer's research but linked to a clinical treatment 
facility.
    The awards program will complement the Alzheimer's disease 
research centers (currently funded though NIA) or similar 
institutions that are State or privately funded.
    The awards program will encourage institutions implementing 
the program to specialize in training physicians and ultimately 
becoming Alzheimer's physician training centers.
    The awards program will advance research and clinical 
treatment for Alzheimer's disease.
    The committee believes that the Alzheimer's Clinical 
Research and Training Program should be paid for by using 
surplus revenues:
    Use $2.25 million each year for the next 5 years to fund 
the awards program, providing 15 $150,000 awards in each of the 
next 5 years for a total cost of $11.25 million.

Medicare

    The Medicare Payment Advisory Commission should continue to 
monitor Medicare skilled nursing benefits to determine if 
payment rates are sufficient to provide quality care, and that 
if the Commission recommends reform, Congress should pass 
legislation as quickly as possible to assure quality skilled 
nursing care.

General Government

    This budget resolution amendment contains the following 
provisions:
    It allows Federal employees to participate immediately in 
the Thrift Savings Plan [TSP].
    It calls for a pay increase of no less than 3.7 percent for 
Federal employees.

                  BUDGET COMMITTEE OVERSIGHT FINDINGS

                              ----------                              


                          COMMITTEE ACTIVITIES

    Clause 3(c)(1) of Rule XIII requires each committee report 
to contain oversight findings and recommendations pursuant to 
clause 2(b)(1) of rule X. The Budget Committee has not reported 
findings at the present time, but has conducted a hearing on 
waste, fraud, abuse, and mismanagement, and has formed 
oversight task forces, as further discussed below.
    Fraud, waste, abuse, and mismanagement undermine the 
effectiveness of Government programs, cost taxpayers billions 
in lost and wasted dollars, and deprive programs and 
beneficiaries of resources they are intended to receive. When 
such problems are chronic, they also jeopardize the credibility 
of a Government that spends about $1.8 trillion a year. As 
House Majority Leader Richard K. Armey has said: ``Every dollar 
spent by the Government is a dollar earned by someone else. 
Taxpayers deserve a Government that doesn't waste their hard-
earned dollars.''
    Therefore, the Committee on the Budget has made oversight 
of Federal programs a top priority for the coming year. Two 
activities already have been completed:

--On 15 February 2000, the Committee majority published 
    Reviving the Reform Agenda: The Urgent Need to Address 
    Government Waste, Fraud, Abuse, and Mismanagement. The 
    report summarized problems identified by the General 
    Accounting Office [GAO], the agency inspectors general, and 
    other sources. It focused on the Department of Defense; the 
    Department of Housing and Urban Development; Medicare; 
    Medicaid; food stamps and other nutrition programs; 
    Supplemental Security Income; and the Earned Income Credit. 
    It also addressed fragmentation and duplication in 
    Government programs.
--On 17 February 2000, the Committee conducted a hearing titled 
    ``Oversight of `High-Risk' Government Programs,'' at which 
    severalexpert witnesses testified to the extensive problems 
of fraud, waste, abuse, and mismanagement in the Government. 
Comptroller General David M. Walker gave extensive testimony at this 
hearing, as did the inspectors general from the Departments of Defense, 
Education, Housing and Urban Development, and Health and Human 
Services.

    The Committee's continuing oversight activities this year 
will be driven by six bipartisan task forces, which were 
formally created at a business meeting on 16 March 2000, just 
prior to markup of the budget resolution. The task forces will 
focus on the following areas: defense and international; 
education and training; health; natural resources and the 
environment; housing and infrastructure; and welfare.

                       BACKGROUND ON THE PROBLEM

    Federal programs continue to waste billions of dollars 
annually through longstanding, systemic problems that persist--
and in some cases are growing worse--despite repeated warnings 
from the Government's principal watchdogs, the General 
Accounting Office [GAO] and the inspectors general [IG] of 
Government agencies. Although most programs have problems 
unique to themselves, certain broad failures appear throughout. 
These include billions of dollars in improper Government 
payments; programs at high risk of waste, abuse, and 
mismanagement; a lack of financial accountability; and the 
persistence of fraud from both inside and outside the 
Government.

                      Improper Government Payments

    This past October, in a report on the Government's 
financial management, GAO cited $19.1 billion in improper 
Government payments for fiscal year 1998 (see chart). But the 
widely cited figure--applying to 17 major programs that spent 
about $870 billion--actually understates the size of the 
problem. It accounts only for the improper payments that could 
be quantified. In fact, GAO said: ``Improper payments are much 
greater than have been disclosed thus far.'' (GAO, Financial 
Management: Increased Attention Needed to Prevent Billions in 
Improper Payments, October 1999)
    To support this view, GAO's report noted the following:

--The Agency for International Development, the Medicaid 
    Program, and the Federal Crop Insurance Corporation all 
    acknowledged improper payments, but did not disclose the 
    amounts.
--In fiscal years 1994 through 1998, Department of Defense 
    contractors returned $984 million that the Government 
    erroneously paid to them.
--In a review of 290,000 Earned Income Credit [EIC] tax returns 
    with indications of errors or irregularities, the Internal 
    Revenue Service [IRS] found that $448 million (68 percent 
    of the $662 million claimed) was invalid for fiscal year 
    1998.

                   $19.1 Billion in Improper Payments

Medicare................................................   $12.6 Billion
Supplemental Security Income............................     1.6 Billion
The Food Stamp Program..................................     1.4 Billion
Old Age and Survivors Insurance.........................     1.2 Billion
Disability Insurance....................................     941 Million
Housing Subsidies.......................................     857 Million
Veterans Benefits, Unemployment Insurance, and Others...     514 Million

Source: GAO, Financial Management: Increased Attention Needed to Prevent 
Billions in Payments, October 1999.

    In addition, many Federal programs share key 
characteristics with those listed above--complex regulations, 
an emphasis on swift payments, and a large volume of 
transactions--and hence also risk making improper payments, GAO 
said. The problem is worsened because Government agencies do 
not perform comprehensive reviews of their payment methods. As 
a result, GAO said, ``the full extent of the Government's 
improper payments is not known.'' (GAO, Financial Management: 
Increased Attention Needed to Prevent Billions in Improper 
Payments, October 1999)
    [Note: In February the Health and Human Services IG 
released a new audit estimating that improper Medicare payments 
had increased in fiscal year 1999 to $13.5 billion--roughly $1 
billion greater than the year before. (Department of Health and 
Human Services IG, Improper Fiscal Year 1999 Medicare Fee-for-
Service Payments, February 2000.)]

             Programs and Agencies Remain at ``High Risk''

    Since 1990, GAO has identified programs and agencies 
considered at ``high risk'' for waste, fraud, abuse, and 
mismanagement. The problem areas cut across virtually every 
part of the Government, and most remain at high risk year after 
year (see chart).

    1999 High-Risk Areas and the Year They Were Designated High Risk

Managing Large Procurement Operations More Efficiently
      DOD Inventory Management............................  1990
      DOD Weapon Systems Acquisition......................  1990
      DOD Contract Management.............................  1992
      Department of Energy Contract Management............  1990
      Superfund Contract Management.......................  1990
      NASA Contract Management............................  1990
Reducing Inordinate Program Management Risks
      Medicare............................................  1990
      Supplemental Security Income........................  1997
      IRS Tax Filing Fraud................................  1995
      DOD Infrastructure Management.......................  1997
      HUD Programs........................................  1994
      Student Financial Aid Programs......................  1990
      Farm Loan Programs..................................  1990
      Asset Forfeiture Programs...........................  1990
      The 2000 Census.....................................  1997
Ensuring Major Technology Investments Improve Services
      Air Traffic Control Modernization...................  1995
      Tax Systems Modernization...........................  1995
      National Weather Service Modernization..............  1995
      DOD Systems Development and Modernization Efforts...  1995
Providing Basic Financial Accountability
      DOD Financial Management............................  1995
      Forest Service Financial Management.................  1999
      FAA Financial Management............................  1999
      IRS Financial Management............................  1995
      IRS Receivables.....................................  1990
Resolving Serious Information Security Weaknesses.................  1997
Addressing Urgent Year 2000 Computing Challenge...................  1997

Source: GAO/HR-99-1 High-Risk Update, January 1999.

    The list is still growing. Although the Government 
apparently resolved most of its Y2K computer conversion 
problems--which had been deemed high risk in 1997--a summary of 
---------------------------------------------------------------------------
the remaining high-risk designations reveals the following:

--Ten of the 14 programs first identified as high risk in 1990 
    were still at high risk in GAO's most recent assessment.
--Fifteen programs have been added to the list since 1993.
--A total of 19 programs have been high risk for 4 years or 
    more.
--Since 1995, the financial management operations of four major 
    agencies--the Department of Defense, the Forest Service, 
    the Federal Aviation Administration, and the Internal 
    Revenue Service--have been added to the high-risk list.

                    Lack of Financial Accountability

    In the words of Representative Pete Hoekstra--a Budget 
Committee member--an audit of an agency's financial records is 
``like making sure your shoes are tied, so you don't trip.'' If 
an agency handles its money properly, ``there is less chance of 
taxpayer dollars being lost to waste, fraud, and abuse.'' By 
these terms, the shoes of many Government agencies--as well as 
the Government as a whole--have been left untied.
    The most recent audits, for fiscal year 1998, showed that 
six major agencies--the Departments of Agriculture, Defense, 
Education, Justice, and Transportation, and the Agency for 
International Development--could not provide financial 
statements that reliably account for the hundreds of billions 
of dollars they spent. Put another way, these agencies failed 
to produce the kinds of financial records that the Government 
requires of every private-sector company that trades its stock 
publicly.
    A striking example, which shows no signs of improving, is 
the Department of Defense [DOD]. In a December 1999 summary, 
the IG reported that DOD's financial statements were ``less 
timely than ever,'' and that they contained ``a record $1.7 
trillion of unsupported adjustments''--an amount roughly the 
same as the entire Federal budget. The IG also cited ``problems 
related to cash management'' in the DOD working capital funds, 
``inaccurate or untimely recording of obligations and 
disbursements,'' and ``vulnerability to fraud.'' The IG 
concluded: ``DOD does not expect a significant difference in 
the overall results of financial statement audits for several 
more years.'' (Department of Defense IG, Detailed Response to 
Congressional Request of September 22, 1999 on DOD Management 
Challenges, 15 December 1999)
    The fiscal year 1998 financial statements for the 
Government overall were also deemed unreliable. GAO's audit 
specified--among other problems--that the Government cannot:

--Properly account for billions of dollars of property, 
    equipment, materials, and supplies.
--Properly estimate the cost of most major Federal credit 
    programs and related loans receivable and loan guarantee 
    liabilities.
--Estimate and reliably report amounts of environmental and 
    disposal liabilities and reported costs.
--Determine amounts of Government liabilities such as health 
    benefits for retired military employees.
--Determine the full extent of the billions in improper 
    payments through Government programs.

    Said GAO: ``[S]ignificant financial systems weaknesses, 
problems with fundamental recordkeeping and financial 
reporting, incomplete documentation, and weak internal 
controls, including computer controls, continue to prevent the 
Government from accurately reporting a significant portion of 
its assets, liabilities, and costs . . . They also affect the 
Government's ability . . . to manage its programs.'' (GAO, 
Financial Audit: 1998 Financial Report of the United States 
Government, March 1999)

                                 Fraud

    Fraud continues to pervade many large Government programs. 
Among the examples cited in this report are the following:

--The Earned Income Credit [EIC]--GAO reports that this credit 
    ``has historically been vulnerable to high rates of invalid 
    claims.'' As recently as December 1999, the Treasury 
    Department's inspector general cited ``scams'' and 
    ``conspiracies'' in which hundreds of taxpayers' Social 
    Security numbers were used to perpetrate EIC fraud.
--Food Stamps--Because food stamps are a kind of parallel 
    currency, they are subject to ``trafficking'' among a 
    variety of businesses, or exchanged by beneficiaries for 
    cash to buy cigarettes, toys, clothing, or other nonfood 
    items.
--Supplemental Security Income [SSI]--This cash assistance 
    program is frequently defrauded by persons who misrepresent 
    their income toqualify for benefits; by malingerers who 
falsely claim disabilities to obtain benefits; and by unscrupulous 
doctors and lawyers who vouch for false claimants.

    Other examples include the Federal Employees Health 
Benefits Program, estimated to consume as much as $1.8 billion 
a year in waste, fraud, and abuse (Office of Personnel 
Management IG, Most Serious Management Problems: Office of 
Personnel Management, 1 December 1999); and Unemployment 
Insurance [UI], which is subject to various abuses, including 
``fraudulent employer schemes, internal embezzlement schemes, 
and the fraudulent collection of UI benefits by illegal aliens 
using counterfeit or unissued Social Security numbers.'' 
(Department of Labor IG, U.S. Department of Labor: Top 
Management Issues, 8 December 1999)
    But in the Government's medical programs, fraud has taken 
on a new form. According to an October 1999 GAO report, 
Medicare and Medicaid have attracted their own class of 
criminals, who specialize in defrauding these Government 
programs, as well as private-sector health insurance. ``While 
the full extent of the problem remains unknown,'' GAO said, 
``we did determine that career criminal and organized criminal 
groups are involved in Medicare, Medicaid, and private 
insurance health care fraud or alleged fraud throughout the 
country.'' (GAO memorandum, Health Care: Fraud Schemes 
Committed by Career Criminals and Organized Criminal Groups and 
Impact on Consumers and Legitimate Health Care Providers, 5 
October 1999)
    Compounding the problem is the Government's own laxity in 
monitoring and oversight of these programs. This environment 
``permitted unscrupulous providers opportunities to obtain 
additional unjustified payments,'' GAO said. In other words, 
the Government itself bears at least some responsibility for 
the fraud perpetrated against its own programs. As GAO put it: 
``The lack of sufficient oversight and monitoring controls can 
lead to improper payments by fostering an atmosphere that 
invites fraud.'' (GAO, Financial Management: Increased 
Attention Needed to Prevent Billions in Improper Payments, 
October 1999)
    The Task Force on Social Security of the Committee on the 
Budget held a series of briefings and hearings on the budgetary 
implications of proposed reforms of the Social Security 
Program. On 15 July 1999, the Task Force reported 18 findings 
to the Committee on the Budget.

       ROLL CALL VOTES AND OTHER ITEMS REQUIRED UNDER HOUSE RULES

                            COMMITTEE VOTES

    Clause 3(b) of House Rule XIII requires each committee 
report to accompany any bill or resolution of a public 
character, ordered to include the total number of votes cast 
for and against on each roll call vote, on a motion to report 
and any amendments offered to the measure or matter, together 
with the names of those voting for and against. Listed below 
are the roll call votes taken in the House Budget Committee on 
the concurrent resolution on the budget for fiscal year 2001.
    On March 15, 2000 the Committee met in open session, a 
quorum being present. The committee adopted and ordered 
reported the Concurrent Resolution on the Budget for Fiscal 
year 2001. The following votes were taken in Committee:
    Mr. Chambliss asked unanimous consent that the Chairman be 
authorized, consistent with clause 4 of House Rule XVI, to 
declare a recess at any time during the Committee meeting.
    There was no objection to the unanimous consent request.
    Mr. Chambliss asked unanimous consent that the Committee on 
the Budget establish six oversight task forces to operate 
through September 13, 2000: In the area of housing and 
infrastructure, welfare, defense & international affairs, 
education and training, health, and natural resources and the 
environment; to be comprised of Members of the Majority who are 
appointed by Chairman Kasich and Members of the Minority to be 
appointed by Mr. Spratt with a ratio that reflects one more 
member of the Majority than the Minority on each panel; on 
which Chairman Kasich and Mr. Spratt will be ex officio 
members; to have a Chairman appointed by Chairman Kasich and a 
Ranking Minority Member to be appointed by Mr. Spratt; to hold 
oversight hearings and issue a report to the full Committee, on 
its findings and any recommendations, to the Committee on the 
Budget; and that will operate under the Rules of the Committee 
on the Budget for the 106th Congress so far as applicable.
    There was no objection to the unanimous consent request.
    Chairman Kasich asked unanimous consent to dispense with 
the first reading of the resolution and that the budget 
aggregates, function levels, and reconciliation levels be open 
for amendment at any time.
    There was no objection to the unanimous consent request.
    Mr. Price offered an amendment to reduce the reduction in 
revenue and to reduce the reconciliation instruction by $5 
billion in 2001 and by $75 billion over the five-year period of 
fiscal years 2001 through 2005. The amendment also included 
language dedicating an amount of the on-budget surplus over 10 
years equal to $300 billion to the Social Security system and 
to transfer $300 billion of the on-budget surplus over 10 years 
to the Medicare program. In addition, starting in 2011, amounts 
would be transferred to the Social Security trust funds equal 
to the reduction in government interest expenses resulting from 
the repayment of publicly held debt achieved by devoting all of 
the Social Security surplus and $300 billion of the on-budget 
surplus to debt repurchase over the preceding 10 years. 
Finally, the amendment included language saying 100 percent of 
the surplus would be saved and used to buy back debt.

    The amendment offered by Mr. Price was not agreed to by a 
roll call vote of 14 ayes and 22 noes.


----------------------------------------------------------------------------------------------------------------
          Representative             Aye       No      Present     Representative       Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman.............  .......        X   ........  Mr. Spratt, Ranking        X   .......  ........
Mr. Chambliss....................  .......        X   ........  Mr. McDermott......        X   .......  ........
Mr. Shays........................  .......  ........  ........  Ms. Rivers.........        X   .......  ........
Mr. Herger.......................  .......        X   ........  Mr. Thompson.......  ........  .......  ........
Mr. Franks.......................  .......  ........  ........  Mr. Minge..........  ........  .......  ........
Mr. Smith........................  .......        X   ........  Mr. Bentsen........        X   .......  ........
Mr. Nussle.......................  .......        X   ........  Mr. Davis..........  ........  .......  ........
Mr. Hoekstra.....................  .......        X   ........  Mr. Weygand........        X   .......  ........
Mr. Radanovich...................  .......        X   ........  Mrs. Clayton.......        X   .......  ........
Mr. Bass.........................  .......        X   ........  Mr. Price..........        X   .......  ........
Mr. Gutknecht....................  .......        X   ........  Mr. Markey.........  ........  .......  ........
Mr. Hilleary.....................  .......        X   ........  Mr. Kleczka........        X   .......  ........
Mr. Sununu.......................  .......        X   ........  Mr. Clement........        X   .......  ........
Mr. Pitts........................  .......        X   ........  Mr. Moran..........  ........  .......  ........
Mr. Knollenberg..................  .......        X   ........  Mr. Hooley.........        X   .......  ........
Mr. Thornberry...................  .......        X   ........  Mr. Lucas..........        X   .......  ........
Mr. Ryun.........................  .......        X   ........  Mr. Holt...........        X   .......  ........
Mr. Collins......................  .......        X   ........  Mr. Hoeffel........        X   .......  ........
Mr. Wamp.........................  .......        X   ........  Ms. Baldwin........        X   .......  ........
Mr. Green........................  .......        X   ........
Mr. Fletcher.....................  .......        X   ........
Mr. Miller.......................  .......        X   ........
Mr. Ryan.........................  .......        X   ........
Mr. Toomey.......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    Mr. Hoeffel offered an amendment to reduce the reduction in 
revenue and to reduce the reconciliation instruction by $5 
billion in 2001 and by $75 billion over the five-year period of 
fiscal years 2001 through 2005. The amendment included a 
reconciliation directive directing the Committee on Ways and 
Means to report a bill reducing revenue by $5 billion in fiscal 
year 2001 and $75 billion over the five-year period of fiscal 
years 2001 through 2005, providing that 100 percent of the 
Social Security surplus over ten years and $75 billion of the 
on-budget surplus over five years be used to buy back publicly 
held debt.

    The amendment offered by Mr. Hoeffel was not agreed to on a 
roll call vote of 16 ayes and 23 noes.


----------------------------------------------------------------------------------------------------------------
          Representative             Aye       No      Present     Representative       Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman.............  .......        X   ........  Mr. Spratt, Ranking        X   .......  ........
Mr. Chambliss....................  .......        X   ........  Mr. McDermott......        X   .......  ........
Mr. Shays........................  .......  ........  ........  Ms. Rivers.........        X   .......  ........
Mr. Herger.......................  .......        X   ........  Mr. Thompson.......  ........  .......  ........
Mr. Franks.......................  .......        X   ........  Mr. Minge..........        X   .......  ........
Mr. Smith........................  .......        X   ........  Mr. Bentsen........        X   .......  ........
Mr. Nussle.......................  .......        X   ........  Mr. Davis..........        X   .......  ........
Mr. Hoekstra.....................  .......        X   ........  Mr. Weygand........        X   .......  ........
Mr. Radanovich...................  .......        X   ........  Mrs. Clayton.......        X   .......  ........
Mr. Bass.........................  .......        X   ........  Mr. Price..........        X   .......  ........
Mr. Gutknecht....................  .......        X   ........  Mr. Markey.........  ........  .......  ........
Mr. Hilleary.....................  .......        X   ........  Mr. Kleczka........        X   .......  ........
Mr. Sununu.......................  .......        X   ........  Mr. Clement........        X   .......  ........
Mr. Pitts........................  .......        X   ........  Mr. Moran..........  ........  .......  ........
Mr. Knollenberg..................  .......        X   ........  Mr. Hooley.........        X   .......  ........
Mr. Thornberry...................  .......        X   ........  Mr. Lucas..........        X   .......  ........
Mr. Ryun.........................  .......        X   ........  Mr. Holt...........        X   .......  ........
Mr. Collins......................  .......        X   ........  Mr. Hoeffel........        X   .......  ........
Mr. Wamp.........................  .......        X   ........  Ms. Baldwin........        X   .......  ........
Mr. Green........................  .......        X   ........
Mr. Fletcher.....................  .......        X   ........
Mr. Miller.......................  .......        X   ........
Mr. Ryan.........................  .......        X   ........
Mr. Toomey.......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    Mr. Weygand offered an amendment to increase budget 
authority and outlays for Functions 550 and 570 by $34.5 
billion over five years to reflect the establishment of a 
voluntary, universal prescription drug benefit and protection 
for low-income Americans against the cost sharing requirement 
of the prescription drug benefit under Medicare as proposed in 
the President's budget submission. In addition, the aggregate 
level of revenues included in the Chairman's Mark would be 
increased by an equal amount. Finally, the revenue instruction 
would be reduced by the same amount.
    The amendment offered by Mr. Weygand was not agreed to on a 
roll call vote of 19 ayes and 23 noes.

----------------------------------------------------------------------------------------------------------------
          Representative             Aye       No      Present     Representative       Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman.............  .......        X   ........  Mr. Spratt, Ranking        X   .......  ........
Mr. Chambliss....................  .......        X   ........  Mr. McDermott......        X   .......  ........
Mr. Shays........................  .......        X   ........  Ms. Rivers.........        X   .......  ........
Mr. Herger.......................  .......        X   ........  Mr. Thompson.......        X   .......  ........
Mr. Franks.......................  .......        X   ........  Mr. Minge..........        X   .......  ........
Mr. Smith........................  .......        X   ........  Mr. Bentsen........        X   .......  ........
Mr. Nussle.......................  .......        X   ........  Mr. Davis..........        X   .......  ........
Mr. Hoekstra.....................  .......        X   ........  Mr. Weygand........        X   .......  ........
Mr. Radanovich...................  .......        X   ........  Mrs. Clayton.......        X   .......  ........
Mr. Bass.........................  .......        X   ........  Mr. Price..........        X   .......  ........
Mr. Gutknecht....................  .......        X   ........  Mr. Markey.........        X   .......  ........
Mr. Hilleary.....................  .......        X   ........  Mr. Kleczka........        X   .......  ........
Mr. Sununu.......................  .......        X   ........  Mr. Clement........        X   .......  ........
Mr. Pitts........................  .......  ........  ........  Mr. Moran..........        X   .......  ........
Mr. Knollenberg..................  .......        X   ........  Mr. Hooley.........        X   .......  ........
Mr. Thornberry...................  .......        X   ........  Mr. Lucas..........        X   .......  ........
Mr. Ryun.........................  .......        X   ........  Mr. Holt...........        X   .......  ........
Mr. Collins......................  .......        X   ........  Mr. Hoeffel........        X   .......  ........
Mr. Wamp.........................  .......        X   ........  Ms. Baldwin........        X   .......  ........
Mr. Green........................  .......        X   ........
Mr. Fletcher.....................  .......        X   ........
Mr. Miller.......................  .......        X   ........
Mr. Ryan.........................  .......        X   ........
Mr. Toomey.......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    Mr. Holt offered an amendment to increase over five years 
budget authority in the amount of $15.2 billion and outlays in 
the amount of $9.5 billion for Function 500 to reflect 
initiatives included in the President's budget submission. 
These initiatives included provisions to hire teachers, reduce 
class size in the earlygrades, and provide assistance for 
school construction through loans, grants and tax credits. In addition, 
the aggregate level of revenues included in the Chairman's Mark would 
be increased by an equal amount. The revenue instruction would also be 
reduced by the same amount. Finally, the amendment would reserve $1.7 
billion for tax credits to be used for the construction of new schools 
and the renovation of existing facilities.
    The amendment offered by Mr. Holt was not agreed to on a 
roll call vote of 18 ayes and 24 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....        X   ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......        X   ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........        X   ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........  ........  ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........        X   ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    Mr. McDermott offered an amendment to modify the 
reconciliation instruction included in the Chairman's Mark to 
direct the Committee on Ways and Means to reduce the aggregate 
level of revenues by $10 billion in fiscal year 2001, by $483 
billion for fiscal years 2002 through 2006 and by $1.269 
trillion for fiscal years 2001 through 2010 to reflect Governor 
George W. Bush's proposed package of tax cuts.
    The amendment offered by Mr. McDermott as amended by a 
second degree perfecting amendment offered by Mr. Chambliss was 
agreed to by a voice vote.
    Mr. Chambliss offered a second degree perfecting amendment 
expressing the sense of the House of Representatives that the 
Committee on the Budget has created task forces to address the 
issue of waste, fraud, and abuse and that the President should 
take immediate steps to reduce waste, fraud and abuse within 
the Federal Government and report such findings to Congress and 
that the resolution should include reconciliation directives to 
the appropriate committees of jurisdiction to dedicate any 
savings from implementation of such findings to debt reduction 
and tax relief.
    The second degree perfecting amendment offered by Mr. 
Chambliss was agreed to by a voice vote.
    Mrs. Clayton offered an amendment to increase budget 
authority by $1.3 billion in fiscal year 2001 and $17 billion 
over five years, to increase outlays by $558 million in fiscal 
year 2001 and $16.1 billion over five years for function 600; 
to increase budget authority by $2.2 billion in fiscal year 
2001 and $11.8 billion over five years, and outlays by $984 in 
fiscal year 2001 and $9.8 billion over five years for function 
500; to increase budget authority and outlays by $0 in fiscal 
year 2001 and $1.7 billion over five years for function 550. 
These increases would reflect increased funding for the Child 
Care Development Block Grant, the Social services block grant 
and expansions of Head Start and 21st Century Community 
Learning Centers. In addition, the aggregate level of revenues 
included in the Chairman's Mark would be increased by an equal 
amount . An amount within the reduction in revenue would be 
reserved for an expansion of the earned Income Tax Credit and 
the Child and Dependent Care Tax Credit.
    The amendment offered by Mrs. Clayton was not agreed to by 
a vote of 16 ayes and 22 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....        X   ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........  ........  ........  Mr. Bentsen.......  ........  ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........        X   ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........  ........  ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........        X   ........  Mr. Moran.........  ........  ........  ........
Mr. Knollenberg.................  ........  ........  ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........  ..................
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    Mr. Minge offered an amendment to include reconciliation 
instructions directing the Committee on Agriculture to report 
to the Committee on the Budget a recommendation consisting of 
changes within its jurisdiction to increase outlays by $6 
billion for fiscal year 2000 and by $7.2 billion for the period 
of fiscal years 2001 through 2005.
    The amendment offered by Mr. Minge was not agreed to by a 
voice vote.
    Ms. Baldwin offered an amendment to increase budget 
authority and outlays by $100 million in fiscal year 2001 and 
by $600 million over five years for Function 550; to increase 
budget authority and outlays by$0 in fiscal year 2001 and by 
$200 million over five years for function 570. These increases would 
reflect increased funding for accelerated enrollment of uninsured 
children eligible for Medicaid and the State Children's Health 
Insurance Program and for Medicaid treatment for women diagnosed with 
certain kinds of cancer. The amendment also increases budget authority 
and outlays for Function 570 to reflect increased funding for a 
Medicare ``buy-in'' provision as included in President's budget 
submission. In addition, the aggregate level of revenues included in 
the Chairman's Mark would be increased by an equal amount. The 
amendment further requires the reservation of $0 million in fiscal year 
2001 and $2 billion over five years for the tax credit associated with 
the President's budget submission for 25 percent of the premiums for 
participants of the Medicare Buy-In. The amendment requires the 
reservation of $0 million in fiscal year 2001 and $4.4 billion over 
five years for the tax credit associated with the President's budget 
submission for 25 percent of the premium for participants in the COBRA 
expansions.

    The amendment offered by Ms. Baldwin as amended by a second 
degree perfecting amendment offered by Representatives 
Fletcher, Ryan and Green was agreed to by a roll call vote of 
28 ayes, 12 noes, with one member voting present.


----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............        X   ........  ........  Mr. Spratt,         ........  ........         X
                                                                 Ranking.
Mr. Chambliss...................        X   ........  ........  Mr. McDermott.....  ........        X   ........
Mr. Shays.......................        X   ........  ........  Ms. Rivers........  ........        X   ........
Mr. Herger......................        X   ........  ........  Mr. Thompson......  ........        X   ........
Mr. Franks......................        X   ........  ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................        X   ........  ........  Mr. Bentsen.......  ........        X   ........
Mr. Nussle......................        X   ........  ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................        X   ........  ........  Mr. Weygand.......  ........        X   ........
Mr. Radanovich..................        X   ........  ........  Mrs. Clayton......  ........  ........  ........
Mr. Bass........................        X   ........  ........  Mr. Price.........  ........        X   ........
Mr. Gutknecht...................        X   ........  ........  Mr. Markey........  ........        X   ........
Mr. Hilleary....................        X   ........  ........  Mr. Kleczka.......  ........        X   ........
Mr. Sununu......................        X   ........  ........  Mr. Clement.......  ........        X   ........
Mr. Pitts.......................        X   ........  ........  Mr. Moran.........  ........  ........  ........
Mr. Knollenberg.................        X   ........  ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................        X   ........  ........  Mr. Lucas.........  ........        X   ........
Mr. Ryun........................        X   ........  ........  Mr. Holt..........  ........        X   ........
Mr. Collins.....................        X   ........  ........  Mr. Hoeffel.......  ........        X   ........
Mr. Wamp........................        X   ........  ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................        X   ........  ........
Mr. Fletcher....................        X   ........  ........
Mr. Miller......................        X   ........  ........
Mr. Ryan........................        X   ........  ........
Mr. Toomey......................        X   ........  ........
----------------------------------------------------------------------------------------------------------------

    Mr. Fletcher offered a second degree perfecting amendment 
increasing mandatory budget authority and outlays for function 
550 by $100 million for fiscal year 2001 and by $500 million 
for fiscal years 2001 through 2005 to reflect increased funding 
for accelerated enrollment of uninsured children eligible for 
Medicaid and the State Children's Health Insurance Program and 
for Medicaid treatment for women diagnosed with certain kinds 
of cancer. In addition, reduce discretionary budget authority 
and outlays in Function 550 by an equal amount.

    The amendment offered by Representatives Fletcher, Ryan and 
Green was agreed to by voice vote.
    Ms. Hooley offered an amendment to increase budget 
authority by $721 million in fiscal year 2001 and by $3.8 
billion over five years, and to increase outlays by $402 in 
fiscal year 2001 and by $3.4 billion over five years for 
function 300; to increase budget authority by $27 million in 
fiscal year 2001 and by $142 million over five years, and to 
increase outlays by $3 million in fiscal year 2001 and by $86 
million over five years for Function 450; to increase budget 
authority by $125 million in fiscal year 2001 and by $659 
million over five years, and to increase outlays by $28 million 
in fiscal year 2001 and by $490 million over five years for 
Function 750. The increased funding reflects the Lands Legacy 
Initiative and the Livable Communities. Initiative included 
within the President's budget submission. In addition, the 
aggregate level of revenues included in the Chairman's Mark 
would be increased by an equal amount. The amendment directs 
the Chairman of the Committee on the Budget to increase the 
302(a) allocation by $1.4 billion in budget authority and $1.0 
billion for outlays for fiscal year 2001 to the Appropriations 
Committee provided they report legislation providing funding 
for Federal land acquisitions, conservation related grants to 
states, tribes and localities and ocean and coastal 
conservation programs.
    The amendment was not agreed to by a roll call vote of 18 
ayes and 24 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....  ........  ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......        X   ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........        X   ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........        X   ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........        X   ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    Mr. Bentsen offered an amendment to increase budget 
authority by $1.8 billion in fiscal year 2001 and by $33.5 
billion over five years, and to increase outlays by $556 
million in fiscal year 2001 and by $14.3 billion over five 
years in Function 550 to reflect increased funding for the 
National Institutes of Health. In addition, the aggregate level 
of revenues included in the Chairman's Mark would be increased 
by an equal amount.
    The amendment offered by Mr. Bentsen was not agreed to by 
voice vote.
    Mr. McDermott offered an amendment to reserve within the 
aggregate revenue levels by $446 million in fiscal year 2001 
and by $4.4 billion over the five year period from 2001 through 
2005, to reflect health related tax provisions that passed in 
the first session of the 106th Congress.
    The amendment offered by Mr. McDermott was agreed to by a 
voice vote.
    Mr. Holt offered an amendment to increase budget authority 
by $675 million in fiscal year 2001 and by $3.9 billion over 
five years, and to increase outlays by $170 million in fiscal 
year 2001 and by $2.8 billion over five years in Function 250 
to reflect increased funding for the National Science 
Foundation. In addition, the aggregate level of revenues 
included in the Chairman's Mark would be increased by an equal 
amount.
    The amendment offered by Mr. Holt as modified by the 
unanimous consent request was agreed to by voice vote.
    Mr. Holt asked unanimous consent to modify his amendment to 
represent $100 million in budget authority in fiscal year 2001 
and zero in subsequent years and the appropriate amount of 
outlays for fiscal year 2001 and over five years.
    There was no objection to the unanimous consent request.
    Mr. Smith offered a second-degree perfecting amendment to 
modify the amendment offered by Mr. Holt to reflect the sense 
of Congress that Function 270 levels assume an amount of 
funding which ensures that the National Science Foundation's 
important role in funding basic research leads to the 
innovations that assure the Nation's economic future, and 
recognizing the National Science Foundation plays a crucial 
role in cultivating America's intellectual infrastructure.
    Mr. Smith withdrew his second degree perfecting amendment.
    Mr. Markey offered an amendment to increase budget 
authority by $2.25 in fiscal year 2001 and by $11.25 million 
over five years, and to increase outlays by $2.25 in fiscal 
year 2001 and by $11.25 million over five years in Function 550 
to reflect increased funding to support a program for training 
physicians to treat and recognize Alzheimer's and dedicate 
their careers to improving care for Alzheimer's Patients. In 
addition, the aggregate level of revenues included in the 
Chairman's Mark would be increased by an equal amount.
    The amendment offered by Mr. Markey was agreed to by voice 
vote.
    Mr. Clement offered an amendment to increase budget 
authority by $100 million in fiscal year 2001 and by $2.9 
billion over five years, and to increase outlays by $100 in 
fiscal year 2001 and by $2.9 billion over five years in 
Function 700 to reflect higher funding for certain veterans 
programs. In addition, the aggregate level of revenues included 
in the Chairman's Mark would be increased by an equal amount.
    Mr. Clement withdrew his amendment.
    Mr. Holt offered an amendment to increase budget authority 
by $740 in fiscal year 2001 and by $3.8 billion over five 
years, and to increase outlays by $37 million in fiscal year 
2001 and by $2.1 billion over five years in Function 750 to 
reflect funding for the 21st Century Policing Initiative. In 
addition, the aggregate level of revenues included in the 
Chairman's Mark would be increased by an equal amount.
    The amendment offered by Mr. Holt was not agreed to by a 
roll call vote of 17 ayes and 24 noes.

----------------------------------------------------------------------------------------------------------------
          Representative             Aye       No      Present     Representative       Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman.............  .......        X   ........  Mr. Spratt, Ranking        X   .......  ........
Mr. Chambliss....................  .......        X   ........  Mr. McDermott......  ........  .......  ........
Mr. Shays........................  .......        X   ........  Ms. Rivers.........        X   .......  ........
Mr. Herger.......................  .......        X   ........  Mr. Thompson.......        X   .......  ........
Mr. Franks.......................  .......        X   ........  Mr. Minge..........        X   .......  ........
Mr. Smith........................  .......        X   ........  Mr. Bentsen........        X   .......  ........
Mr. Nussle.......................  .......        X   ........  Mr. Davis..........        X   .......  ........
Mr. Hoekstra.....................  .......        X   ........  Mr. Weygand........        X   .......  ........
Mr. Radanovich...................  .......        X   ........  Mrs. Clayton.......        X   .......  ........
Mr. Bass.........................  .......        X   ........  Mr. Price..........        X   .......  ........
Mr. Gutknecht....................  .......        X   ........  Mr. Markey.........  ........  .......  ........
Mr. Hilleary.....................  .......        X   ........  Mr. Kleczka........        X   .......  ........
Mr. Sununu.......................  .......        X   ........  Mr. Clement........        X   .......  ........
Mr. Pitts........................  .......        X   ........  Mr. Moran..........        X   .......  ........
Mr. Knollenberg..................  .......        X   ........  Mr. Hooley.........        X   .......  ........
Mr. Thornberry...................  .......        X   ........  Mr. Lucas..........        X   .......  ........
Mr. Ryun.........................  .......        X   ........  Mr. Holt...........        X   .......  ........
Mr. Collins......................  .......        X   ........  Mr. Hoeffel........        X   .......  ........
Mr. Wamp.........................  .......        X   ........  Ms. Baldwin........        X   .......  ........
Mr. Green........................  .......        X   ........
Mr. Fletcher.....................  .......        X   ........
Mr. Miller.......................  .......        X   ........
Mr. Ryan.........................  .......        X   ........
Mr. Toomey.......................  .......        X   ........
----------------------------------------------------------------------------------------------------------------

    Ms. Rivers offered an amendment to increase budget 
authority by $9.2 billion in fiscal year 2001 and by $52.6 
billion over five years, and to increase outlays by $184 
million in fiscal year 2001 and by $36.6 billion over five 
years in Function 500 to reflect increased funding for special 
education. In addition, the aggregate level of revenues 
included in the Chairman's Mark would be increased by an equal 
amount.
    The amendment offered by Ms. Rivers as amended by the 
amendment offered by Mr. Bass was agreed to by voice vote.
    Mr. Bass offered a second degree perfecting amendment to 
the amendment offered by Ms. Rivers to express the sense of 
Congress that Function 500 levels assume at least a $2 billion 
increase in funding for fiscal year 2001 over the level 
provided in fiscal year 2000 and to reflect the commitment of 
Congress eventually appropriate 40 percent of the national per 
pupil expenditure for children with disabilities by a date 
certain.
    The second degree perfecting amendment offered by Mr. Bass 
was agreed to on a roll call vote of 22 ayes and 17 noes.

----------------------------------------------------------------------------------------------------------------
          Representative              Aye       No     Present     Representative      Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman.............        X   .......  ........  Mr. Spratt, Ranking  .......        X   ........
Mr. Chambliss....................        X   .......  ........  Mr. McDermot.......  .......  ........  ........
Mr. Shays........................        X   .......  ........  Ms. Rivers.........  .......        X   ........
Mr. Herger.......................        X   .......  ........  Mr. Thompson.......  .......        X   ........
Mr. Franks.......................        X   .......  ........  Mr. Minge..........  .......        X   ........
Mr. Smith........................        X   .......  ........  Mr. Bentsen........  .......        X   ........
Mr. Nussle.......................        X   .......  ........  Mr. Davis..........  .......        X   ........
Mr. Hoekstra.....................        X   .......  ........  Mr. Weygand........  .......        X   ........
Mr. Radanovich...................  ........  .......  ........  Mrs. Clayton.......  .......        X   ........
Mr. Bass.........................        X   .......  ........  Mr. Price..........  .......        X   ........
Mr. Gutknecht....................        X   .......  ........  Mr. Markey.........  .......  ........  ........
Mr. Hilleary.....................        X   .......  ........  Mr. Kleczka........  .......        X   ........
Mr. Sununu.......................        X   .......  ........  Mr. Clement........  .......        X   ........
Mr. Pitts........................  ........  .......  ........  Mr. Moran..........  .......        X   ........
Mr. Knollenberg..................        X   .......  ........  Mr. Hooley.........  .......        X   ........
Mr. Thornberry...................        X   .......  ........  Mr. Lucas..........  .......        X   ........
Mr. Ryun.........................        X   .......  ........  Mr. Holt...........  .......        X   ........
Mr. Collins......................        X   .......  ........  Mr. Hoeffel........  .......        X   ........
Mr. Wamp.........................        X   .......  ........  Ms. Baldwin........  .......        X   ........
Mr. Green........................        X   .......  ........
Mr. Fletcher.....................        X   .......  ........
Mr. Miller.......................        X   .......  ........
Mr. Ryan.........................        X   .......  ........
Mr. Toomey.......................        X   .......  ........
----------------------------------------------------------------------------------------------------------------

    Chairman Kasich offered an amendment to reflect a budget 
authority increase from the Chairman's Mark of $100 million for 
fiscal year 2001 for function 250 and the appropriate level of 
outlays. In addition, Chairman Kasich offered for Mr. Smith 
language expressing the sense of Congress on funding for the 
National Science Foundation that was previously offered by Mr. 
Smith but withdrawn. In addition, Chairman Kasich offered an 
amendment to reflect an increase from the Chairman's original 
mark of $100 million for fiscal year 2001 for function 250 and 
the appropriate level of outlays (due to uncertainty over the 
final disposition of the original Holt amendment.
    The amendment was agreed to by voice vote.
    Mr. Moran offered an amendment to increase budget authority 
by $200 million in fiscal year 2001 and by $1 billion over five 
years, and to increase outlays by $120 million in fiscal year 
2001 and by $890 million over five years in Function 750 to 
reflect increased funding for the United States Customs Service 
Automated Commercial Environment modernization program. In 
addition, the aggregate level of revenues included in the 
Chairman's Mark would be increased by an equal amount.
    The amendment offered by Mr. Moran was not agreed to by a 
roll call vote of 16 ayes and 23 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....  ........  ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........  ........  ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......        X   ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........  ........  ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........  ........  ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........        X   ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    Mr. Minge offered an amendment to require the Chairman of 
the House Budget Committee, in advising the presiding officer 
on the cost of proposed legislation, to rely exclusively on 
estimates prepared by the Congressional Budget Office or the 
Joint Tax Committee, in a form certified by that agency to be 
consistent with its own economic and technical estimates unless 
the estimates are approved by the Committee on the Budget by 
recorded vote.
    The amendment offered by Mr. Minge was not agreed to by a 
show of hands.
    Mr. Weygand offered an amendment to increase budget 
authority by $0 in fiscal year 2001 and by $5.1 billion over 
five years, and to increase outlays by $0 in fiscal year 2001 
and by $5.1 billion over five years in Function 570 to reflect 
revisions in the Medicare payment system for home health care 
agencies. In addition, the aggregate level of revenues included 
in the Chairman's Mark would be increased by an equal amount.
    The amendment was not agreed to by 17 ayes and 23 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....  ........  ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......        X   ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........  ........  ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........  ........  ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........        X   ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    Mr. Moran offered an amendment to reserve within the 
reduction of revenues an amount to reflect the immediate 
participation of Federal employees in the Thrift Savings Plan. 
It further provided for a sense of Congress that the pay 
increase for Federal workers should be no less than a 3.7 
percent increase in pay for Federal employees.
    The amendment offered by Mr. Moran as revised by unanimous 
consent was agreed to by voice vote.
    Mr. Thompson offered an amendment to express the sense of 
Congress that the provisions of the budget resolution assume 
that the Congress should modify the Federal tax law to include 
Individual Development Accounts in order to encourage low-
income workers and their families to save for buying a first 
home, starting a business, obtaining an education, or taking 
other measures to prepare for the future.
    The amendment offered by Mr. Thompson was agreed to by 
voice vote.
    Mr. Bentsen offered an amendment to increase budget 
authority by $900 million in fiscal year 2001 and by $10.2 
billion over five years, and to increase outlays by $900 in 
fiscal year 2001 and by $10.2 billion over five years in 
Function 550 and 570 to reflect a freeze in Medicaid 
disproportionate share hospital allotments at fiscal year 2000 
level and a repeal of the Medicare PPS-hospital market basket 
reductions for fiscal years 2001 and 2002. In addition, the 
aggregate level of revenues included in the Chairman's Mark 
would be increased by an equal amount.
    The amendment offered by Mr. Bentsen was not agreed to by 
voice vote.
    Mr. Bentsen offered an amendment expressing the sense of 
the Congress that many school-based health programs provide a 
broad range of services covered by Medicaid, affording access 
to care for children who otherwise might well go without needed 
services. School-based programs can also play a powerful role 
in identifying and enrolling children who are eligible for 
Medicaid, as well as the State Children's Health Insurance 
Programs. Further, the amendment expressed the sense of 
Congress that undue administrative burdens may be placed on 
school districts and states and that the Health Care Financing 
Administration should substantially revise or abandon current 
guidelines.
    The amendment offered by Mr. Bentsen was agreed to by voice 
vote.
    Mrs. Clayton offered an amendment to increase budget 
authority by $1.4 billion in fiscal year 2001 and by $8.4 
billion over five years, and to increase outlays by $600 
million in fiscal year 2001 and by $7.3 billion over five years 
in Function 350 to reflect an increase in funding for income 
assistance for farmers. In addition, the aggregate level of 
revenues included in the Chairman's Mark would be increased by 
an equal amount.
    The amendment was not agreed to by voice vote.
    Mr. Clement offered an amendment to express the sense of 
the Congress that a biennial budgeting process should be 
enacted in the second session of the 106th Congress.
    The amendment offered by Mr. Clement as amended by a second 
degree perfecting amendment offered by Mr. Nussle was agreed to 
by voice vote.
    Mr. Nussle offered a second degree perfecting amendment to 
the amendment offered by Mr. Clement to modify the language to 
express the sense of Congress that there are a wide range of 
views on a biennial budgeting process reform and that it should 
be considered only within the context of comprehensive budget 
process reform.
    The second degree perfecting amendment offered by Mr. 
Nussle was agreed to by voice vote.
    Ms. Hooley offered language related to funding levels for 
Pacific Northwest salmon recovery and the efficient use of 
funds directed to local communities and salmon restoration 
organizations.
    The language offered by Ms. Hooley was accepted.
    Mr. Minge offered an amendment expressing the sense of 
Congress that Medicare + Choice regional disparity among 
reimbursement rates are unfair; and that full funding of the 
Medicare + Choice program is a priority before financing new 
programs and benefits that may potentially add to the imbalance 
of the payments and benefits in the Fee-for-Service Medicare 
and Medicare + Choice.
    The amendment offered by Mr. Minge as amended by a second 
degree perfecting amendment offered by Mr. Ryan was agreed to 
by voice vote.
    Mr. Ryan offered a second degree perfecting amendment to 
modify the language offered as an amendment by Mr. Minge 
expressing the sense of Congress that Medicare + Choice 
regional disparity among reimbursement rates are unfair; and 
that full funding of the Medicare + Choice program is a 
priority as Congress deals with any Medicare reform 
legislation.
    The second degree perfecting amendment offered by Mr. Ryan 
to the amendment offered by Mr. Minge was agreed to by voice 
vote.
    Mr. Bentsen offered language stating it is the assumption 
of the budget resolution that the funding for the U.S. Army 
Corps of Engineers for general construction, for general 
operation and maintenance, and for operating and maintaining 
the St. Lawrence Seaway will come from the general fund and the 
receipts of the Harbor Maintenance Excise Tax and not from the 
Proposed Harbor Services Fee in the President's budget 
submission.
    The language offered by Mr. Bentsen was agreed by voice 
vote.
    Mr. Markey offered an amendment to increase budget 
authority by $10 billion in fiscal year 2001 and by $101 
billion over five years, and to increase outlays by $10 billion 
in fiscal year 2001 and by $101 billion over five years in 
Function 550 to reflect an increase in funding for long term 
care improvement. In addition, the aggregate level of revenues 
included in the Chairman's Mark would be increased by an equal 
amount. Within the tax cuts, the amendment would reserve $128 
million in fiscal year 2001 and $9.7 billion over five years to 
reflect the assumption of a tax credit for long-term care as 
proposed in the President's Budget Submission.
    The amendment offered by Mr. Markey was withdrawn.
    Mr. Minge offered an amendment to increase budget authority 
by $256 million in fiscal year 2001 and by $1.2 billion over 
five years, and to increase outlays by $130 million in fiscal 
year 2001 and by $1.1 billion over five years in Function 270 
to reflect increased development of solar power, renewable 
resources, fossil energy efficiency, and energy conservation 
programs. In addition, the aggregate level of revenues included 
in the Chairman's Mark would be increased by an equal amount.
    The amendment offered by Mr. Minge was not agreed to by a 
voice vote.
    Mr. Minge offered an amendment prohibiting to the 
consideration of legislation reducing revenues for fiscal years 
2001 through 2005 unless the Director of the Congressional 
Budget Office certified a portion of the on-budget surplus is 
reserved for debt retirement and that legislation has been 
enacted establishing points of order to prevent amounts 
reserved for debt retirement to be used for other purposes.
    The amendment offered by Mr. Minge was not agreed to by a 
voice vote.
    Mr. Minge offered an amendment expressing the sense of 
Congress that the Committee on the Budget should be directed to 
develop a definition of a process for funding emergencies 
consistent with the Comprehensive Budget Process Reform Act of 
1999 and to present its proposal to the House of 
Representatives as a change in the rules of the House of 
Representatives.
    Mr. Minge withdrew his amendment.
    Mr. Nussle and Mr. Minge offered an amendment expressing 
the sense of the Congress that the Committee on the Budget be 
directed to develop a definition of emergencies consistent with 
the Comprehensive Budget Process Reform Act of 1999 and be 
considered within the context of comprehensive budget process 
reform.
    The amendment was agreed to by voice vote.
    Mr. Minge offered an amendment expressing the sense of 
Congress that Medicare rates fail to cover the costs of 
providing quality care in skilled nursing facilities despite 
the efforts of Congress to restore funding for beneficiaries 
last year. In addition, the amendment expressed concern over 
the harm caused by deep cuts in Medicare and the underfunded 
Medicaid program for the recruitment of health care 
professionals into seniors health care.
    The amendment offered by Mr. Minge as modified by his 
unanimous consent request was agreed to by voice vote.
    Mr. Minge requested unanimous consent to revise his 
amendment to reflect language expressing the sense of the 
Congress that the Medicare Payment Advisory Commission continue 
to carefully monitor the skilled nursing benefit to determine 
if payment rates are sufficient to provide quality care and 
that Congress should pass legislation to assure quality skilled 
nursing care.
    There was no objection to the unanimous consent request.
    Mr. Chambliss made a motion that the Committee adopt the 
aggregates, function totals, and other relevant items as the 
Concurrent Resolution on the Budget for Fiscal year 2001.
    The motion offered by Mr. Chambliss was agreed to by voice 
vote.
    Mr. Chambliss made a motion that the Committee report the 
Concurrent Resolution with a favorable recommendation and that 
the Concurrent Resolution pass. The motion offered by Mr. 
Chambliss was agreed to by a roll call vote of 23 ayes and 18 
noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............        X   ........  ........  Mr. Spratt,         ........        X   ........
                                                                 Ranking.
Mr. Chambliss...................        X   ........  ........  Mr. McDermott.....  ........        X   ........
Mr. Shays.......................        X   ........  ........  Ms. Rivers........  ........        X   ........
Mr. Herger......................        X   ........  ........  Mr. Thompson......  ........  ........  ........
Mr. Franks......................        X   ........  ........  Mr. Minge.........  ........        X   ........
Mr. Smith.......................        X   ........  ........  Mr. Bentsen.......  ........        X   ........
Mr. Nussle......................        X   ........  ........  Mr. Davis.........  ........        X   ........
Mr. Hoekstra....................        X   ........  ........  Mr. Weygand.......  ........        X   ........
Mr. Radanovich..................        X   ........  ........  Mrs. Clayton......  ........        X   ........
Mr. Bass........................        X   ........  ........  Mr. Price.........  ........        X   ........
Mr. Gutknecht...................        X   ........  ........  Mr. Markey........  ........        X   ........
Mr. Hilleary....................        X   ........  ........  Mr. Kleczka.......  ........        X   ........
Mr. Sununu......................        X   ........  ........  Mr. Clement.......  ........        X   ........
Mr. Pitts.......................        X   ........  ........  Mr. Moran.........  ........  ........  ........
Mr. Knollenberg.................        X   ........  ........  Mr. Hooley........  ........  ........  ........
Mr. Thornberry..................        X   ........  ........  Mr. Lucas.........  ........        X   ........
Mr. Ryun........................        X   ........  ........  Mr. Holt..........  ........        X   ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......  ........        X   ........
Mr. Wamp........................        X   ........  ........  Ms. Baldwin.......  ........        X   ........
Mr. Green.......................        X   ........  ........
Mr. Fletcher....................        X   ........  ........
Mr. Miller......................        X   ........  ........
Mr. Ryan........................        X   ........  ........
Mr. Toomey......................        X   ........  ........
----------------------------------------------------------------------------------------------------------------

    Mr. Chambliss asked for unanimous consent that the Chairman 
be authorized to make a motion to go to conference pursuant to 
clause 1 of House Rule XXII, the staff be authorized to make 
any necessary technical and conforming corrections in the 
resolution, and any committee amendments, and calculate any 
remaining elements required in the resolution, prior to filing 
the resolution, and the motion to reconsider be laid upon the 
table.
    There was no objection to the unanimous consent request.

 Oversight Findings and Recommendations of the Committee on Government 
                                 Reform

    Clause 3(c)(4) of rule XIII requires each committee report 
to contain a summary of oversight findings and recommendations 
made by the Committee on Government Reform pursuant to clause 
4(c)(2) of rule X, whenever such findings have been timely 
submitted. The committee on the Budget has received no such 
findings or recommendations from the Committee on Government 
Reform.

                  Miscellaneous Budgetary Information

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives provides that Committee reports shall contain 
the statement required by Section 308(a)(1) of the 
Congressional Budget Act of 1974. This report does not contain 
such a statement because as a concurrent resolution setting 
forth a blueprint for the Congressional budget. The budget 
resolution does not provide new budget authority or new 
entitlement authority or change revenues.

          Establishment of Statutory Limit on the Public Debt

    Clause 3 of rule XXIII requires the report of the Committee 
on the Budget of the House accompanying any Concurrent 
Resolution on the Budget to include a clear statement about the 
effect of the adoption of the concurrent resolution upon the 
statutory limit on the debt. House rule XXIII provides for the 
automatic engrossment of a bill raising the statutory limit 
when the conference report on the Concurrent Resolution on the 
Budget passes.
    The adoption of this budget resolution will have no effect 
on the statutory limit on the debt if, as expected, the rule 
providing for the consideration of the Concurrent Resolution on 
the Budget for fiscal year 2001 waives the applicability of 
House Rule XXIII. House Resolution 152 waived the applicability 
of this rule (which was designated as House Rule XLIX in the 
105th Congress) during the consideration of House Concurrent 
Resolution 284, the Concurrent Resolution on the Budget for 
fiscal year 1999.
    According to the Views and Estimates submitted by the 
Committee on Ways and Means, the current statutory public debt 
limit of $5.95 trillion will not be reached until sometime 
beyond fiscal year 2009.

                       Views of Committee Members

    Clause 2(1) of rule XI requires each committee to afford a 
2-day opportunity for members of the committee to file 
additional, minority, or dissenting views and to include the 
view in its report. The following views were submitted:

  MINORITY VIEWS OF REPRESENTATIVES JOHN SPRATT, JIM McDERMOTT, LYNN 
 RIVERS, BENNIE THOMPSON, DAVID MINGE, KEN BENTSEN, JIM DAVIS, ROBERT 
 WEYGAND, EVA CLAYTON, DAVID PRICE, EDWARD MARKEY, GERALD KLECZKA, BOB 
 CLEMENT, JAMES MORAN, DARLENE HOOLEY, RUSH HOLT, JOSEPH HOEFFEL, AND 
                             TAMMY BALDWIN

    As you read the Republicans' budget resolution, you quickly 
realize that it looks very similar to their 1998 budget plan, 
when no concurrent budget resolution was adopted, and their 
1999 budget, when a resolution was adopted but honored in the 
breach. To make room for a large tax cut, this year's 
resolution proposes cuts in spending much like those proposed 
last year. Yet last year, when all 13 appropriation bills first 
passed the House, they were $30.1 billion above the budget 
resolution in the first year alone. When the final 
appropriation bill passed Congress on November 29, two months 
into the fiscal year, appropriated spending overran the budget 
resolution by $34.8 billion.
    Republicans have yet to explain how Congress will pass the 
cuts they assume in their budget plan this year when Congress 
could not pass them last year or the year before. The 
definition of folly is to repeat what has failed and expect it 
to succeed, and that is just what this resolution does. It 
assumes that Congress will cut nondefense spending by $7 
billion below this year's level and by $20 billion below the 
level needed to keep even with inflation, and then keep its 
foot on the brake for four more years, eventually taking 
nondefense spending $114 billion below the level of current 
purchasing power.
    Repeating the call for implausible program cuts wouldn't be 
so bad if it weren't for the fact that the resolution already 
spends some of the Social Security surplus even assuming that 
Congress adopts the large program cuts. The resolution's $200 
billion, five-year tax cut plus the other claims for the non-
Social Security surplus overwhelm the $114 billion reduction in 
the purchasing power of domestic appropriations. As a result, 
under their resolution, the non-Social Security surplus is 
virtually gone by 2003, and by 2004, the government begins 
spending the Social Security surplus.

                            TABLE 1.--REPUBLICANS USE UP THE ENTIRE SURPLUS--AND MORE
        [All figures exclude the Social Security surplus; plus signs indicate costs; dollars in billions]
----------------------------------------------------------------------------------------------------------------
                                                                                                Five   Ten years
                                               2000    2001    2002    2003    2004    2005    years      \3\
----------------------------------------------------------------------------------------------------------------
CBO Surplus w/o Social Security.............      27      15      29      36      42      48      171       893
    Tax cuts................................  ......      10      22      31      42      45      150       750
    Non-defense cuts \4\....................      12     -16     -13     -21     -29     -36     -114      -363
    All other costs including interest......       6       4       5       6       6       7       28       107
Surplus claimed by Republicans..............       8      17      16      20      22      32      107       398
    Reserve \2\ for $50 billion additional    ......       0       8      11      15      16       50       250
     tax cuts...............................
    Reserve \2\ for Medicare ``reform'' and   ......       2       4       7      12      16       40       155
     prescription drugs.....................
    Interest cost of reserves...............  ......   (\1\)   (\1\)       1       3       4        9        77
Surplus or Deficit (-) when reserves are           8      15       4       a      -7      -4        8       -84
 used.......................................
----------------------------------------------------------------------------------------------------------------
\1\ = less than $\1/2\ billion.
\2\ These ``reserves'' are available whenever Ways & Means or Commerce wishes to use them; they are not
  contingent upon improvements in the economy. The Resolution specifies only the first-year and five-year cost
  of the reserves; figures in 2002-2005 are interpolated by Democratic staff. [In addition, the Budget
  Resolution contains further language allowing still greater tax cuts if the economy performs better than CBO
  expects.]
\3\ Extrapolations for the second five years made by the Democratic staff.
\4\ Republican ``non-defense'' figures actually include the 2000 supplemental (both defense and non-defense) as
  well as $9 billion from the repeal of previously enacted timing shifts.

Totals represent either outlays or revenues and may not add due to rounding.

    If the nondefense spending cuts aren't achieved, as has 
been the case in the past, the resolution invades the Social 
Security surplus even sooner and more deeply. This means that 
Social Security revenues again would be used to fund other 
government activities. It also means that the publicly held 
debt would be reduced by less than if the Social Security 
surplus were merely saved.

                    TABLE 2.--THE REPUBLICAN BUDGET PLAN WITHOUT DOMESTIC DISCRETIONARY CUTS
        [All figures exclude the Social Security surplus; plus signs indicate costs; dollars in billions]
----------------------------------------------------------------------------------------------------------------
                                                                                                Five   Ten years
                                               2000    2001    2002    2003    2004    2005    years      \1\
----------------------------------------------------------------------------------------------------------------
CBO Surplus w/o Social Security.............      27      15      29      36      42      48      171       893
Tax cuts....................................  ......      10      30      42      57      61      200     1,000
Non-defense cuts \2\........................      12      -9  ......  ......  ......  ......       -9        -9
Defense adds................................  ......       3       2       2       3       2       12        23
Medicare ``reform'' & drugs.................  ......       2       4       7      12      16       40       155
Medicaid/CHIP access & benefits.............  ......   (\3\)   (\3\)   (\3\)   (\3\)   (\3\)        1         2
Farm adds...................................       6       1       1       2       2       2        7        18
Extend expiring Customs fee.................  ......  ......  ......  ......      -1      -2       -3       -13
Interest costs..............................   (\3\)       1       3       5       9      13       31       234
Republican ``Surplus''......................       8       8     -10     -22     -39     -45     -107      -517
----------------------------------------------------------------------------------------------------------------
May not add due to rounding.
\1\ Extrapolations for the second five years made by the Democratic staff.
\2\ Republican ``non-defense'' figures actually include the 2000 supplemental (both defense and non-defense) as
  well as $9 billion from the repeal of previously enacted timing shifts.
\3\ = less than $\1/2\ billion.

    The resolution spends the Social Security surplus because 
its tax cut trumps all other budget priorities. Democrats are 
strongly committed to middle-class tax cuts. On the House 
floor, Democrats will offer an alternative budget with more 
than enough tax relief to cover the cost of mitigating the 
marriage penalty, correcting the alternative minimum tax (AMT) 
so that it does not harm middle-income families, lowering 
estate taxes on small business and family farms, supporting 
education, providing tax relief for working families with 
children, encouraging retirement savings, and fostering 
investment in our communities. And additional funds for more 
tax relief are still available. But we believe that the 
surpluses projected for the next few years should also be used 
for make Social Security and Medicare solvent for the long-run.
    Unfortunately, the Republican budget resolution shuts a 
window of opportunity. The resolution does nothing to extend 
the solvency of Social Security or Medicare by even a single 
day. As noted above, implementation of the resolution also 
means that the government will repay less publicly held debt. 
Repaying more debt helps to bolster the government's finances 
in anticipation of the fiscal challenges posed by the impending 
retirement of the Baby Boom generation. Finally, the resolution 
invades the Social Security surplus, which both Republicans and 
Democrats have pledged to protect.
    The fact that the Republicans' tax cut jeopardizes both the 
Social Security surplus and priority domestic programs that 
Americans support is highlighted by looking just beyond the 
five-year horizon of this year's resolution. Tax cuts tend to 
grow over time. Last year's tax cut, which failed because it 
was perceived as fiscally irresponsible, cost $156 billion over 
five years. However, the cost ballooned to $792 billion over 
ten years and would have reached $869 billion over ten years if 
the bill had not ``sunset'' most of its tax cuts in the ninth 
year. This year's tax cuts cost $200 billion over five years. 
(See Graph 1.)
    Republicans acknowledged in markup that in the past, 
Republicans had used a ten-year portrayal of their tax cut to 
make it seem larger. This year, they portray their tax cut over 
five years to make it look smaller. But a tax cut of $200 
billion over five years could still easily cost $1 trillion 
over ten years. This means that between 2006 and 2010, when the 
fiscal pressures faced by Social Security and Medicare will be 
fast approaching, the growing tax cut would force progressively 
more severe cuts in appropriations, a bigger on-budget deficit, 
or both. Before we vote for tax cuts of this magnitude, we must 
make sure that there is money set aside to bolster Social 
Security and Medicare.
    Republicans themselves may have begun to recognize these 
problems with their plan. During the markup, Democrats offered 
as an amendment the tax cut proposed by the Republicans' 
presumptive presidential nominee, Governor George W. Bush. The 
Bush tax cut has an even larger price tag than the resolution's 
tax cut, costing $483 billion over five years and at least $1.3 
trillion over ten years. (See Graph 1.) Republicans used a 
parliamentary maneuver to avoid voting for the Bush tax cut.



    The Republican budget plan uses gimmicks to try to cloak 
the effects of their plan. Republicans double count their 
``reserves,'' promising the same money simultaneously for debt 
reduction, for tax cuts, and for the costs of Medicare 
``reform.'' And the biggest gimmick of all is premising the 
entire structure on putative future spending cuts that are just 
not realistic. Republicans' own history illustrates why.
    Over the past five years, a Republican-controlled Congress 
has increased nondefense discretionary spending each year at an 
average rate of 2.5 percent faster than inflation, as Graph 2 
shows. Graph 2 also depicts what this resolution assumes: a 
full reversal on spending. The resolution assumes that such 
unprecedented cuts would continue indefinitely even without new 
spending caps or enforcement mechanisms. Without acknowledging 
it, this resolution dispenses with the spending caps set by the 
Balanced Budget Act of 1997. The President's budget resets the 
caps roughly at the rate of inflation. This resolution does not 
set new caps and proposes no budget enforcement procedures to 
enforce their totally unrealistic cuts in domestic 
appropriations.



    This resolution is skating, therefore, on thin ice. If 
nondefense spending cannot be held $114 billion below inflation 
for the next five years, the budget will slide further into 
deficit. How feasible is it to cut the purchasing power of 
nondefense discretionary spending by $114 billion below 
inflation for the next five years, the budget will slide 
further into deficit. How feasible is it to cut the purchasing 
power of nondefense discretionary spending by $114 billion? 
Let's look at a few functions in this resolution to see what it 
entails.
     Function 450, Community and Regional Development: 
This function funds the Community Development Block Grant, the 
Economic Development Agency. These programs have stood the test 
of time. Efforts to cut the CDBG or eliminate EDA have failed 
in committee and on the floor. Despite this fact, resolution 
proposes that this function be cut from $11.4 billion in 2000 
to $9.1 billion in 2001 and taken on down to $8.5 billion in 
years 2002 through 2005. If the resolution does not cut 
programs like CDBG and EDA, then it leaves only one 
alternative: the resolution implausibly assumes that over the 
next five years, the nation will experience no hurricanes, 
floods, tornadoes, or earthquakes requiring federal assistance.
     Function 600, Income Security: This function 
funds, among other things: Women, Infants and Children's 
nutrition program (WIC): Low Income Home Energy Assistance 
Program (LIHEAP); the Child Care Block Grant; and Section 8 
housing. In other words, this function funds programs for the 
most vulnerable in our society. By 2005, it is cut by 19.1 
percent in real terms.
     Function 500, Education and Social Services: 
Republicans tout their commitment to education but when it 
comes to putting their treasure where they claim their heart 
is, they provide barely more than a freeze for this function 
and $20 billion left that the President over five years. The 
Republicans state that they target virtually all their increase 
to special education, leaving only a five-year freeze for Title 
I, all higher education, social services, and job training 
programs. By 2005, the Republican plan cuts purchasing power by 
8.5 percent for important programs such as Head Start and Pell 
Grants.
     Function 750, Administration of Justice: This 
function funds federal law enforcement activities for the FBI, 
the Drug Enforcement Agency (DEA), the Customs Service and the 
Immigration and Naturalization Service. For 2001, the House 
Republican budget plan provides $26.9 billion, which represents 
a $700 million cut in purchasing power. By 2005, the 
Republicans cut purchasing power for law enforcement funding by 
$2.9 billion or 9 percent.
     Function 150, International Affairs: This function 
funds foreign operations. It's a popular whipping boy, easy to 
cut because it has no strong contitutency, and Republicans cut 
it deeply, from $22.3 billion in 2000 to $19.7 billion in 2001 
and then to $18.3 billion. It is true that Wye River and UN 
arrears are non-recurring, but the Republican plan still cuts 
this function by $11.9 billion over five years even excluding 
these non recurring costs. The truth is that there are still 
serious needs like embassy security that have to be funded. 
Cuts this deep were proposed last year, and did not prevail. It 
is hard to believe that they will prevail this year.
    How deep will the cuts have to be in the FBI or the DEA due 
to the reduction in Function 750, or in WIC or LIHEAP due to 
the reduction in Function 600? The resolution does not provide 
the details. But just before markup, the committee received the 
following letter from the President's Chief of Staff warning of 
specific cuts in critical accounts:

                                           The White House,
                                        Washington, March 14, 2000.
Hon. John R. Kasich,
Chairman, Committee on the Budget, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: I am writing to express the 
Administration's deep concern that the majority in Congress is 
poised, once again, to propose a budget based on irresponsible 
tax cuts that would require deep reductions in key priorities, 
would jeopardize our ability to strengthen Social Security and 
Medicare, and would undermine our ability to pay off the debt 
by 2013.
    The budget resolution you outlined last week proposed large 
and costly tax cuts based on the assumption that essential 
funding for domestic priorities--including health care, the 
environment, science and technology, and law enforcement--will 
be slashed by $24 billion, the equivalent of a 10 percent 
across-the-board cut in these priorities. A 10 percent cut 
would have severe consequences:
     In law enforcement programs--FBI reduced by 1,100 
FBI agents and Drug Enforcement Agency reduced by 900 agents;
     More than 2000 air traffic controllers cut, 
forcing delays and reductions of air carrier operations at U.S. 
airports by 1.5 million flights (67 million passenger trips);
     EPA Superfund forced to eliminate funding for 25 
ongoing federally led cleanups and all 15 new federally-led 
cleanups;
     National Science Foundation funded research, which 
supports our high-tech future, would be denied to more than 
15,000 fewer researchers, educators and students; and
     750,000 fewer low-income women, infants, and 
children would receive nutritional benefits from WIC.
    Judging by the actions of Congress last year, it seems 
unlikely that these deep spending cuts would actually 
materialize. Therefore, your insistence on such a damaging and 
unrealistic budget would only increase the risk of dipping into 
the Social Security surplus and make it virtually impossible to 
strengthen Social Security and Medicare, and pay off the debt 
by 2013.
    As the President has pointed out, the tax cuts you have 
already passed would use more than $443 billion of the surplus 
over the next decade--this is more than half of the non-Social 
Security surplus--before a single penny has been devoted to 
extending the life of Social Security and Medicare, adding a 
voluntary prescription drug benefit, or investing in education 
for our children. To make matters worse, Speaker Hastert and 
the Republican leadership have made it clear that this is only 
the beginning--that your proposals will be at least as costly 
and irresponsible as the risky $792 billion tax cut that the 
President vetoed last year. Let me be clear--the budget that 
you have outlined is the wrong approach for America.
    The President's budget takes a responsible and balanced 
approach. It not only protects the Social Security surplus for 
debt reduction, but also ensures that the interest savings from 
this debt reduction are used to extend the life of Social 
Security to at least 2050. In contrast, last year, Republicans 
in Congress proposed a so-called ``lockbox'' that failed to add 
a single day to the life of Social Security. I urge you to join 
us this year in making the simple, bipartisan commitment to use 
the benefits of debt reduction to extend the life of Social 
Security.
    Our budget devotes more than half of the non-Social 
Security surplus to strengthening and modernizing Medicare, 
extending its life for a decade to 2025 and adding a badly 
needed prescription drug benefit. If the tax cuts you have 
already passed became law, we would not be able to afford these 
much-needed measures to strengthen and modernize Medicare. I 
urge you to join us in protecting a substantial portion of the 
surplus for Medicare.
    Our budget builds on our record of fiscal discipline to pay 
off the debt by 2013. I know you have expressed your strong 
support for debt reduction. I urge you to produce a realistic 
budget that will actually result in paying off the debt over 
the next thirteen years.
    And in the context of this budget based on fiscal 
discipline, the President has proposed substantial investments 
in key priorities like education and expanding health insurance 
coverage along with targeted tax relief to help reward work, 
make college more affordable, and lessen the costs of long-term 
health care. This is tax relief that will make a difference for 
working families. It is the kind of tax relief that Congress 
should consider this year.
    We now have an historic opportunity. The economy is strong, 
the budget is balanced, and we have the chance to start down a 
path of real progress on Social Security, Medicare, and paying 
down the debt. Let's make the most of this moment by meeting 
the challenges of the future and working together for the 
American people.
            Sincerely,
                     John Podesta, Chief of Staff to the President.
    It seems doubtful that the House will approve these cuts 
this year, and even if it did, that it could sustain them for 
years on end. Here is what is likely to happen instead. 
Congress will undo some of the gimmicks employed last year. For 
example, the shift of a pay date from September into October 
will be shifted back into September since the surplus for this 
year, 2000, is larger than estimated last July; in fact, the 
Republican plan already acknowledges this will happen. Then the 
Appropriations Committee will turn to the same timing shifts, 
advance appropriations, and deferred obligations as last year, 
shifting as much 2001 spending as possible into 2002. It will 
be deja vu all over again.
    The surpluses on our horizon offer an extraordinary 
opportunity. They allow us to make Social Security and Medicare 
sound and solvent for future generations. They mean we can 
close a gaping hole in Medicare coverage and provide a 
prescription drug benefit. They make it possible for us to do 
more for education at all levels. They allow us to give the 
American people tax relief, and to pay down our large public 
debt. Unfortunately, this resolution squanders this opportunity 
and jeopardizes the progress we have made in eliminating annual 
deficits and paying down public debt. This resolution also 
passes up the opportunity to put Social Security, Medicare, and 
the nation as a whole on sound fiscal footing.

                                   John M. Spratt, Jr.
                                   Jim McDermott.
                                   Bennie G. Thompson.
                                   David Minge.
                                   Jim Davis.
                                   Bob Weygand.
                                   Eva M. Clayton.
                                   David Price.
                                   Ed Markey.
                                   Jerry Kleczka.
                                   Bob Clement.
                                   Jim Moran.
                                   Darlene Hooley.
                                   Rush Holt.
                                   Joe Hoeffel.
                                   Tammy Baldwin.
                                   Lynn N. Rivers.
                                   Ken Bentsen.
        ADDITIONAL VIEWS OF CONGRESSMAN KENNETH E. BENTSEN, JR.

    On March 15, 2000, the House Budget Committee met to mark-
up the Fiscal Year 2001 budget. Although a number of amendments 
I cosponsored were adopted in the Republican Budget Resolution, 
I ultimately voted against the Resolution because it is 
fiscally unsound.
    I offered a number of substantive amendments to 
dramatically improve the overall Budget Resolution. For 
instance, I offered an amendment to provide the third 
installment toward doubling funding for the National Institutes 
of Health by 2003 relative to the 1998 level. NIH is the 
world's leading biomedical research institution and NIH-
supported scientists have made significant contributions toward 
improving the health of Americans. For this reason, there is 
broad bipartisan support for doubling NIH spending. 
Unfortunately, the Budget Resolution only provides for a 5.6% 
increase over the 2000 level; nowhere near the 15% increase 
that is necessary to keep NIH spending on track.
    A second amendment that I cosponsored provided for 
presumptive eligibility for children in Medicaid and S-CHIP, 
Medicaid coverage for women diagnosed with breast or cervical 
cancer by the CDC, and a Medicare buy-in program. The 
presumptive eligibility provision was drawn from a bill I 
introduced, H.R. 1298, the Medicaid Child Eligibility 
Improvement Act of 1999. While I am pleased that the Committee 
adopted our amendment's presumptive eligibility plank with 
respect to children and women with breast and cervical cancer, 
I could not support the funding mechanism of my Republican 
colleagues. It robs Peter to pay Paul. The Budget Resolution 
offsets these costs by cutting spending in Function 550, 
thereby requiring cuts to programs such as NIH as well as 
regional and community health centers.
    I also offered another amendment which unfortunately was 
not adopted. My amendment would freeze the State Medicaid 
disproportionate share hospital allotments at the Fiscal Year 
2000 level and repeals the Medicare PPS-hospital market based 
reductions for Fiscal Years 2001 and 2002.
    Since passage of the Balanced Budget Act (BBA) of 1997, 
Medicare spending is projected to have been reduced by more 
than $226 billion--nearly $123 billion more than Congress 
intended. The Congressional Budget Office's latest projections 
show reductions to the Medicare program that are more than four 
times the $15 billion Congress added as part of the Balanced 
Budget Refinement Act (BBRA) of 1999.
    The BBA also prescribed $10.4 billion cuts to the Medicaid 
disproportionate share hospital (DSH) program over five years. 
Since then, health care providers have been struggling. 
Although the Balanced Budget Refinement Act of 1999 (BBRA) 
partially improved payments for DSH hospitals, there is still 
cause for alarm as further DSH reductions loom. In Texas, the 
Federal government still must reduce Medicaid DSH allotments 
from $806 million in 2000 to $765 million for 2001 and 2002. 
Just this past weekend, I learned that approximately 200 
employees are being laid off at the University of Texas Medical 
School in Houston because of a projected $20 million shortfall. 
At a time when over 44 million Americans have no health 
insurance, I am concerned about these cuts to our nation's 
``safety net'' hospitals.
    The unanticipated effect of the BBA on Medicare baseline 
and the reduction in DSH allotments will cause continued 
erosion of the foundation of our nation's hospitals and the 
long term viability of our health care system. This amendment 
provided my Republican colleagues with the opportunity to 
address this crisis, but it was rebuffed. While unfortunate, it 
is apparent that the Republicans will not care about this issue 
until our hospitals are on life support.

                                                       Ken Bentsen.
                            A P P E N D I X

                              ----------                              


                            H. Con. Res. 290

    A concurrent resolution establishing the congressional 
budget for the United States Government for fiscal year 2001, 
revising the congressional budget for the United States 
Government for fiscal year 2000, and setting forth appropriate 
budgetary levels for each of fiscal years 2002 through 2005.
  Resolved by the House of Representatives (the Senate 
concurring),

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2001.

  The Congress declares that the concurrent resolution on the 
budget for fiscal year 2000 is hereby revised and replaced and 
that this is the concurrent resolution on the budget for fiscal 
year 2001 and that the appropriate budgetary levels for fiscal 
years 2002 through 2005 are hereby set forth.

SEC. 2. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2000 through 2005:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                        Fiscal year 2000: $1,465,500,000,000.
                        Fiscal year 2001: $1,504,800,000,000.
                        Fiscal year 2002: $1,549,400,000,000.
                        Fiscal year 2003: $1,598,500,000,000.
                        Fiscal year 2004: $1,650,600,000,000.
                        Fiscal year 2005: $1,719,100,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                        Fiscal year 2000: $0.
                        Fiscal year 2001: $10,000,000,000.
                        Fiscal year 2002: $22,000,000,000.
                        Fiscal year 2003: $31,000,000,000.
                        Fiscal year 2004: $42,000,000,000.
                        Fiscal year 2005: $45,000,000,000.
          (2) New budget authority.--For purposes of the 
        enforcement of this resolution, the appropriate levels 
        of total new budget authority are as follows:
                  Fiscal year 2000: $1,478,300,000,000.
                  Fiscal year 2001: $1,524,100,000,000.
                  Fiscal year 2002: $1,558,000,000,000.
                  Fiscal year 2003: $1,604,300,000,000.
                  Fiscal year 2004: $1,654,800,000,000.
                  Fiscal year 2005: $1,713,500,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2000: $1,460,500,000,000.
                  Fiscal year 2001: $1,490,700,000,000.
                  Fiscal year 2002: $1,537,000,000,000.
                  Fiscal year 2003: $1,582,200,000,000.
                  Fiscal year 2004: $1,631,900,000,000.
                  Fiscal year 2005: $1,690,500,000,000.
          (4) Surpluses.--For purposes of the enforcement of 
        this resolution, the amounts of the surpluses are as 
        follows:
                  Fiscal year 2000: $5,000,000,000.
                  Fiscal year 2001: $14,100,000,000.
                  Fiscal year 2002: $12,400,000,000.
                  Fiscal year 2003: $16,300,000,000.
                  Fiscal year 2004: $18,700,000,000.
                  Fiscal year 2005: $28,600,000,000.
          (5) Public debt.--The appropriate levels of the 
        public debt are as follows:
                  Fiscal year 2000: $5,640,300,000,000.
                  Fiscal year 2001: $5,710,600,000,000.
                  Fiscal year 2002: $5,787,400,000,000.
                  Fiscal year 2003: $5,870,300,000,000.
                  Fiscal year 2004: $5,946,100,000,000.
                  Fiscal year 2005: $6,010,800,000,000.

SEC. 3. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and budget outlays for fiscal 
years 2000 through 2005 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $288,900,000,000.
                          (B) Outlays, $282,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $306,300,000,000.
                          (B) Outlays, $297,600,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $309,300,000,000.
                          (B) Outlays, $302,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $315,600,000,000.
                          (B) Outlays, $309,400,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $323,400,000,000.
                          (B) Outlays, $317,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $331,700,000,000.
                          (B) Outlays, $328,100,000,000.
          (2) International Affairs (150):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $20,100,000,000.
                          (B) Outlays, $15,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $19,500,000,000.
                          (B) Outlays, $17,300,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $19,300,000,000.
                          (B) Outlays, $17,200,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $18,800,000,000.
                          (B) Outlays, $16,100,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $18,300,000,000.
                          (B) Outlays, $15,200,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $18,500,000,000.
                          (B) Outlays, $14,800,000,000.
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $19,300,000,000.
                          (B) Outlays, $18,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $19,800,000,000.
                          (B) Outlays, $19,300,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $19,900,000,000.
                          (B) Outlays, $19,600,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $20,000,000,000.
                          (B) Outlays, $19,600,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $20,100,000,000.
                          (B) Outlays, $19,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $20,300,000,000.
                          (B) Outlays, $19,800,000,000.
          (4) Energy (270):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $1,100,000,000.
                          (B) Outlays, -$600,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $1,200,000,000.
                          (B) Outlays, -$100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $700,000,000.
                          (B) Outlays, -$400,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $500,000,000.
                          (B) Outlays, -$700,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $400,000,000.
                          (B) Outlays, -$900,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $300,000,000.
                          (B) Outlays, -$900,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $24,300,000,000.
                          (B) Outlays, $24,200,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $25,000,000,000.
                          (B) Outlays, $24,800,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $25,100,000,000.
                          (B) Outlays, $25,100,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $25,200,000,000.
                          (B) Outlays, $25,200,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $25,300,000,000.
                          (B) Outlays, $25,200,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $25,400,000,000.
                          (B) Outlays, $25,100,000,000.
          (6) Agriculture (350):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $35,700,000,000.
                          (B) Outlays, $34,300,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $19,100,000,000.
                          (B) Outlays, $16,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $18,500,000,000.
                          (B) Outlays, $16,700,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $17,600,000,000.
                          (B) Outlays, $15,900,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $17,000,000,000.
                          (B) Outlays, $15,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $15,800,000,000.
                          (B) Outlays, $14,200,000,000.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $7,500,000,000.
                          (B) Outlays, $3,100,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $6,300,000,000.
                          (B) Outlays, $2,300,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $8,700,000,000.
                          (B) Outlays, $5,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $9,500,000,000.
                          (B) Outlays, $4,700,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $13,600,000,000.
                          (B) Outlays, $8,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $13,500,000,000.
                          (B) Outlays, $9,600,000,000.
          (8) Transportation (400):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $54,300,000,000.
                          (B) Outlays, $46,600,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $59,200,000,000.
                          (B) Outlays, $50,300,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $57,400,000,000.
                          (B) Outlays, $52,500,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $58,800,000,000.
                          (B) Outlays, $54,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $58,800,000,000.
                          (B) Outlays, $55,100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $58,800,000,000.
                          (B) Outlays, $55,100,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $11,200,000,000.
                          (B) Outlays, $10,800,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $9,100,000,000.
                          (B) Outlays, $11,100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $8,500,000,000.
                          (B) Outlays, $9,700,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $8,400,000,000.
                          (B) Outlays, $8,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $8,400,000,000.
                          (B) Outlays, $8,300,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $8,500,000,000.
                          (B) Outlays, $7,800,000,000.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $57,700,000,000.
                          (B) Outlays, $61,400,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $72,600,000,000.
                          (B) Outlays, $69,200,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $74,000,000,000.
                          (B) Outlays, $72,100,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $75,000,000,000.
                          (B) Outlays, $73,200,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $76,100,000,000.
                          (B) Outlays, $73,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $77,800,000,000.
                          (B) Outlays, $74,200,000,000.
          (11) Health (550):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $159,300,000,000.
                          (B) Outlays, $152,300,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $169,700,000,000.
                          (B) Outlays, $167,100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $179,600,000,000.
                          (B) Outlays, $177,900,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $191,500,000,000.
                          (B) Outlays, $190,600,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $205,600,000,000.
                          (B) Outlays, $205,000,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $221,700,000,000.
                          (B) Outlays, $220,300,000,000.
          (12) Medicare (570):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $199,600,000,000.
                          (B) Outlays, $199,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $215,700,000,000.
                          (B) Outlays, $216,000,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $221,600,000,000.
                          (B) Outlays, $221,600,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $239,700,000,000.
                          (B) Outlays, $239,500,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $255,300,000,000.
                          (B) Outlays, $255,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $278,700,000,000.
                          (B) Outlays, $278,700,000,000.
          (13) Income Security (600):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $238,400,000,000.
                          (B) Outlays, $248,000,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $252,200,000,000.
                          (B) Outlays, $254,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $263,000,000,000.
                          (B) Outlays, $264,300,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $272,100,000,000.
                          (B) Outlays, $273,400,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $281,700,000,000.
                          (B) Outlays, $283,200,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $294,000,000,000.
                          (B) Outlays, $295,900,000,000.
          (14) Social Security (650):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $14,700,000,000.
                          (B) Outlays, $14,700,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $13,100,000,000.
                          (B) Outlays, $13,000,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $14,900,000,000.
                          (B) Outlays, $14,900,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $15,700,000,000.
                          (B) Outlays, $15,600,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $16,600,000,000.
                          (B) Outlays, $16,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $17,400,000,000.
                          (B) Outlays, $17,400,000,000.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $46,000,000,000.
                          (B) Outlays, $45,200,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $47,800,000,000.
                          (B) Outlays, $47,400,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $49,000,000,000.
                          (B) Outlays, $48,900,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $50,800,000,000.
                          (B) Outlays, $50,600,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $52,000,000,000.
                          (B) Outlays, $51,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $55,300,000,000.
                          (B) Outlays, $54,900,000,000.
          (16) Administration of Justice (750):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $27,300,000,000.
                          (B) Outlays, $28,000,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $28,000,000,000.
                          (B) Outlays, $28,000,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $27,800,000,000.
                          (B) Outlays, $28,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $27,900,000,000.
                          (B) Outlays, $27,900,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $28,200,000,000.
                          (B) Outlays, $27,900,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $28,400,000,000.
                          (B) Outlays, $28,100,000,000.
          (17) General Government (800):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $13,900,000,000.
                          (B) Outlays, $14,700,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $13,600,000,000.
                          (B) Outlays, $14,200,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $13,600,000,000.
                          (B) Outlays, $13,900,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $13,500,000,000.
                          (B) Outlays, $13,700,000,000.
                  Fiscal year 2004:
                          ew budget authority, $13,500,000,000.
                          (B) Outlays, $13,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $13,600,000,000.
                          (B) Outlays, $13,500,000,000.
          (18) Net Interest (900):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $284,600,000,000.
                          (B) Outlays, $284,600,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $288,500,000,000.
                          (B) Outlays, $288,500,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $290,000,000,000.
                          (B) Outlays, $290,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $285,800,000,000.
                          (B) Outlays, $285,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $281,000,000,000.
                          (B) Outlays, $281,000,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $275,500,000,000.
                          (B) Outlays, $275,500,000,000.
          (19) Allowances (920):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $8,500,000,000.
                          (B) Outlays, $11,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        -$4,200,000,000.
                          (B) Outlays, -$8,600,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        -$1,500,000,000.
                          (B) Outlays, -$500,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        -$1,700,000,000.
                          (B) Outlays, -$1,400,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$2,300,000,000.
                          (B) Outlays, -$2,200,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$2,500,000,000.
                          (B) Outlays, -$2,500,000,000.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        -$34,100,000,000.
                          (B) Outlays, -$34,100,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        -$38,400,000,000.
                          (B) Outlays, -$38,400,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        -$41,300,000,000.
                          (B) Outlays, -$41,300,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        -$40,700,000,000.
                          (B) Outlays, -$40,700,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$38,100,000,000.
                          (B) Outlays, -$38,100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$39,200,000,000.
                          (B) Outlays, -$39,200,000,000.

SEC. 4. RECONCILIATION.

  (a) Legislation Providing $150 Billion in Tax Relief Over a 
5-Year Period.--
          (1) Submissions regarding revenues.--The House 
        Committee on Ways and Means shall report to the House a 
        reconciliation bill--
                  (A) not later than May 26, 2000;
                  (B) not later than June 23, 2000;
                  (C) not later than July 28, 2000; and
                  (D) not later than September 22, 2000;
        that consists of changes in laws within its 
        jurisdiction sufficient to reduce the total level of 
        revenues by not more than: $9,554,000,000 for fiscal 
        year 2001, and $145,648,000,000 for the period of 
        fiscal years 2001 through 2005.
          (2) Health-related tax provisions.--Whenever any bill 
        referred to in section 9(a) is reported (or an 
        amendment is offered or a conference report thereon is 
        submitted) after the date of adoption of this 
        resolution that provides the health-related tax 
        provisions contained in H.R. 2990 (as passed the 
        House), the chairman of the Committee on the Budget of 
        the House shall increase the reconciliation instruction 
        set forth in section 4(a)(1) by the amount of the 
        revenue reduction provided by such measure for such 
        purpose but not to exceed $446,000,000 in fiscal year 
        2001 and $4,352,000,000 for the period of fiscal years 
        2001 through 2005 (and make all other appropriate 
        conforming adjustments).
  (b) Submissions Regarding Debt Held by the Public.--The House 
Committee on Ways and Means shall report to the House a 
reconciliation bill--
          (1) not later than May 26, 2000, that consists of 
        changes in laws within its jurisdiction sufficient to 
        reduce the debt held by the public by $10,000,000,000 
        for fiscal year 2001; and
          (2) not later than September 22, 2000 that consists 
        of changes in laws within its jurisdiction sufficient 
        to reduce the debt held by the public by not more than 
        $20,000,000,000 for fiscal year 2001.

SEC. 5. LOCK-BOX FOR SOCIAL SECURITY SURPLUSES.

  (a) Findings.--Congress finds that--
          (1) under the Budget Enforcement Act of 1990, the 
        social security trust funds are off-budget for purposes 
        of the President's budget submission and the concurrent 
        resolution on the budget;
          (2) the social security trust funds have been running 
        surpluses for 17 years;
          (3) these surpluses have been used to implicitly 
        finance the general operations of the Federal 
        Government;
          (4) in fiscal year 2001, the social security surplus 
        will be $166 billion;
          (5) this resolution balances the Federal budget 
        without counting the social security surpluses;
          (6) the only way to ensure that social security 
        surpluses are not diverted for other purposes is to 
        balance the budget exclusive of such surpluses; and
          (7) Congress and the President should take such steps 
        as are necessary to ensure that future budgets are 
        balanced excluding the surpluses generated by the 
        social security trust funds.
  (b) Point of Order.--
          (1) In general.--It shall not be in order in the 
        House of Representatives or the Senate to consider any 
        revision to this resolution or a concurrent resolution 
        on the budget for fiscal year 2002, or any amendment 
        thereto or conference report thereon, that sets forth a 
        deficit for any fiscal year.
          (2) Deficit levels.--For purposes of this subsection, 
        a deficit shall be the level (if any) set forth in the 
        most recently agreed to concurrent resolution on the 
        budget for that fiscal year pursuant to section 
        301(a)(3) of the Congressional Budget Act of 1974.
  (c) Sense of Congress.--It is the sense of Congress that 
legislation should be enacted in this session of Congress that 
would enforce the reduction in debt held by the public assumed 
in this resolution by the imposition of a statutory limit on 
such debt or other appropriate means.

SEC. 6. DEBT REDUCTION LOCK-BOX.

  (a) Point of Order.--It shall not be in order in the House of 
Representatives or the Senate to consider any reported bill or 
joint resolution, or any amendment thereto or conference report 
thereon, that would cause a surplus for fiscal year 2001 to be 
less than the level (as adjusted for reconciliation or other 
tax-related legislation, medicare, or agriculture as considered 
pursuant to section 4, 8, 9, 10, 11, 12, 13, or 14) set forth 
in section 2(4) for that fiscal year.
  (b) Special Rule.--The level of the surplus for purposes of 
subsection (a) shall take into account amounts adjusted under 
section 314(a)(2)(B) or (C) of the Congressional Budget Act of 
1974.

SEC. 7. REDUCTION OF PUBLICLY-HELD DEBT.

  (a) Purpose.--It is the purpose of this section to ensure 
that the fiscal year 2000 on-budget surplus is used to reduce 
publicly-held debt.
  (b) Reduction of Publicly-held Debt.--
          (1) Point of order against certain legislation.--
        Except as provided by paragraph (2), it shall not be in 
        order in the House of Representatives or the Senate to 
        consider any bill, joint resolution, amendment, motion, 
        or conference report if--
                  (A) the enactment of that bill or resolution 
                as reported;
                  (B) the adoption and enactment of that 
                amendment; or
                  (C) the enactment of that bill or resolution 
                in the form recommended in that conference 
                report,
        would cause a decrease in the on-budget surplus for 
        fiscal year 2000.
          (2) Exception.--The point of order set forth in 
        paragraph (1) shall not apply to a bill, joint 
        resolution, amendment, motion, or conference report if 
        it--
                  (A) reduces revenues;
                  (B) implements structural social security 
                reform; or
                  (C) implements structural medicare reform.
          (3) Waivers and appeals in the senate.--
                  (A) Waivers.--Paragraph (1) may be waived or 
                suspended in the Senate only by the affirmative 
                vote of three-fifths of the Members, duly 
                chosen and sworn.
                  (B) Appeals.--(i) Appeals in the Senate from 
                the decisions of the Chair relating to 
                paragraph (1) shall be limited to 1 hour, to be 
                equally divided between, and controlled by, the 
                mover and the manager of the bill, joint 
                resolution, amendment, motion, or conference 
                report, as the case may be.
                  (ii) An affirmative vote of three-fifths of 
                the Members, duly chosen and sworn, shall be 
                required in the Senate to sustain an appeal of 
                the ruling of the Chair on a point of order 
                raised under paragraph (1).
  (c) Effective Date.--The provisions of this section shall 
cease to have any force or effect on October 1, 2000.

SEC. 8. SPECIAL PROCEDURES TO SAFEGUARD TAX RELIEF.

  (a) Adjustments to Preserve Surpluses.--Upon the reporting of 
a reconciliation bill by the Committee on Ways and Means 
pursuant to section 4(a)(1) or, the offering of an amendment 
to, or the submission of a conference report on, H.R. 3081, 
H.R. 6, or H.R. 2990, whichever occurs first, the chairman of 
the Committee on the Budget of the House shall reduce to zero 
the amounts by which aggregate levels of Federal revenues 
should be reduced as set forth in section 2(1)(B) (and make all 
other appropriate conforming adjustments).
  (b) Adjustments for Revenue Bills.--After making the 
adjustments referred to in paragraph (1), and whenever the 
Committee on Ways and Means reports any reconciliation bill 
pursuant to section 4(a)(1) (or an amendment thereto is offered 
or a conference report thereon is submitted) or an amendment to 
H.R. 3081, H.R. 6, or H.R. 2990 is offered or a conference 
report thereon is submitted after the date of adoption of this 
resolution, the chairman of the Committee on the Budget of the 
House shall increase the levels by which Federal revenues 
should be reduced by the reduction in revenue caused by such 
measure for each applicable year or period, but not to exceed, 
after taking into account any other bill or joint resolution 
enacted during this session of the One Hundred Sixth Congress 
that causes a reduction in revenues for such year or period, 
$9,554,000,000 in fiscal year 2001 and $145,648,000,000 for the 
period of fiscal years 2001 through 2005 (and make all other 
appropriate conforming adjustments).

SEC. 9. RESERVE FUND PROVIDING AN ADDITIONAL $50 BILLION FOR ADDITIONAL 
                    TAX RELIEF AND DEBT REDUCTION.

  Whenever the Committee on Ways and Means reports any 
reconciliation bill pursuant to section 4(a)(1) (or an 
amendment thereto is offered or a conference report thereon is 
submitted), or an amendment to H.R. 3081, H.R. 6, or H.R. 2990 
is offered or a conference report thereon is submitted after 
the date of adoption of this resolution (after taking into 
account any other bill or joint resolution enacted during this 
session of the One Hundred Sixth Congress that would cause a 
reduction in revenues for fiscal year 2001 or the period of 
fiscal years 2001 through 2005) that would cause the level by 
which Federal revenues should be reduced, as set forth in 
section 2(1)(B) for such fiscal year or for such period, as 
adjusted, to be exceeded, the chairman of the Committee on the 
Budget of the House may increase the levels by which Federal 
revenues should be reduced by the amount exceeding such level 
resulting from such measure, but not to exceed $0 in fiscal 
year 2001 and $50,000,000,000 for the period of fiscal years 
2001 through 2005 (and make all other appropriate conforming 
adjustments).

SEC. 10. RESERVE FUND FOR AUGUST UPDATE REVISION OF BUDGET SURPLUSES.

  (a) Reporting a Surplus.--If the Congressional Budget Office 
report referred to in subsection (c) projects an increase in 
the surplus for fiscal year 2000, fiscal year 2001, and the 
period of fiscal years 2001 through 2005 over the corresponding 
levels set forth in its March 2000 economic and budget forecast 
for fiscal year 2001, submitted pursuant to section 202(e)(1) 
of the Congressional Budget Act of 1974, the chairman of the 
Committee on the Budget of the House may make the adjustments 
as provided in subsection (b).
  (b) Adjustments.--Whenever the Committee on Ways and Means 
reports any reconciliation bill pursuant to section 4(a)(1) (or 
an amendment thereto is offered or a conference report thereon 
is submitted), or an amendment to H.R. 3081, H.R. 6, or H.R. 
2990 is offered or a conference report thereon is submitted 
after the date of adoption of this resolution that (after 
taking into account any other bill or joint resolution enacted 
during this session of the One Hundred Sixth Congress that 
would cause a reduction in revenues for such year or period) 
would cause the level by which Federal revenues should be 
reduced, as set forth in section 2(1)(B) for fiscal year 2001 
or for the period of fiscal years 2001 through 2005, as 
adjusted, to be exceeded, the chairman of the Committee on the 
Budget of the House may increase the levels by which Federal 
revenues should be reduced by the amount exceeding such level 
resulting from such measure for each applicable year or period 
(or for fiscal year 2000 may increase the level of the surplus 
and make all other appropriate conforming adjustments), but not 
to exceed the increase in the surplus for such year or period 
in the report referred to in subsection (a).
  (c) Congressional Budget Office Updated Budget Forecast for 
Fiscal Year 2001.--The report referred to in subsection (a) is 
the Congressional Budget Office updated budget forecast for 
fiscal year 2001.

SEC. 11. RESERVE FUND FOR MEDICARE.

  Whenever the Committee on Ways and Means or Committee on 
Commerce of the House reports a bill or joint resolution, or an 
amendment thereto is offered (in the House), or a conference 
report thereon is submitted that reforms the medicare program 
and provides coverage for prescription drugs, the chairman of 
the Committee on the Budget may increase the aggregates and 
allocations of new budget authority (and outlays resulting 
therefrom) by the amount provided by that measure for that 
purpose, but not to exceed $2,000,000,000 in new budget 
authority and outlays for fiscal year 2001 and $40,000,000,000 
in new budget authority and outlays for the period of fiscal 
years 2001 through 2005 (and make all other appropriate 
conforming adjustments).

SEC. 12. RESERVE FUND FOR AGRICULTURE IN FISCAL YEAR 2000.

  Whenever the Committee on Agriculture of the House reports a 
bill or joint resolution, or an amendment thereto is offered 
(in the House), or a conference report thereon is submitted 
that provides income support to owners and producers of farms, 
the chairman of the Committee on the Budget may increase the 
allocation of new budget authority and outlays to that 
committee for fiscal year 2000 by the amount of new budget 
authority (and the outlays resulting therefrom) provided by 
that measure for that purpose not to exceed $6,000,000,000 in 
new budget authority and outlays for fiscal year 2000, $0 in 
new budget authority and outlays for the period of fiscal years 
2001 through 2004, and $6,000,000,000 in new budget authority 
and outlays for the period of fiscal years 2000 through 2004 
(and make all other appropriate conforming adjustments).

SEC. 13. RESERVE FUND FOR AGRICULTURE IN FISCAL YEAR 2001.

  Whenever the Committee on Agriculture of the House reports a 
bill or joint resolution, or an amendment thereto is offered 
(in the House), or a conference report thereon is submitted 
that provides risk management or income assistance for 
agricultural producers, the chairman of the Committee on the 
Budget may increase the allocation of new budget authority and 
outlays to that committee by the amount of new budget authority 
(and the outlays resulting therefrom) if such legislation does 
not exceed $1,355,000,000 in new budget authority and 
$595,000,000 in outlays for fiscal year 2001 and $8,359,000,000 
in new budget authority and $7,223,000,000 in outlays for the 
period of fiscal years 2001 through 2005 (and make all other 
appropriate conforming adjustments).

SEC. 14. RESERVE FUND FOR FEDERAL EMPLOYEES PAY RAISE AND BENEFIT 
                    PACKAGE.

  Whenever any bill is reported by the Committee on Government 
Reform (or an amendment is offered or a conference report 
thereon is submitted) that permits Federal employees to 
immediately participate in the Thrift Savings Plan, the 
chairman of the Committee on the Budget of the House shall 
increase (if necessary) the levels by which Federal revenues 
should be reduced by an amount not to exceed $17,000,000 in 
fiscal year 2001 and $107,000,000 for the period of fiscal 
years 2001 through 2005 (and make all other appropriate 
conforming adjustments).

SEC. 15. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND 
                    AGGREGATES.

  (a) Application.--Any adjustments of allocations and 
aggregates made pursuant to section 4(a)(2), 8(b), 9, 10, 11, 
12, 13, or 14 for any measure shall--
          (1) apply while that measure is under consideration;
          (2) take effect upon the enactment of that measure; 
        and
          (3) be published in the Congressional Record as soon 
        as practicable.
  (b) Effect of Changed Allocations and Aggregates.--Revised 
allocations and aggregates resulting from these adjustments 
shall be considered for the purposes of the Congressional 
Budget Act of 1974 as allocations and aggregates contained in 
this resolution.
  (c) Budget Committee Determinations.--For purposes of this 
resolution--
          (1) the levels of new budget authority, outlays, 
        direct spending, new entitlement authority, revenues, 
        deficits, and surpluses for a fiscal year or period of 
        fiscal years shall be determined on the basis of 
        estimates made by the Committee on the Budget of the 
        House of Representatives or the Senate, as applicable; 
        and
          (2) such chairman, as applicable, may make any other 
        necessary adjustments to such levels to carry out this 
        resolution.

SEC. 16. SENSE OF THE HOUSE ON WASTE, FRAUD, AND ABUSE.

  (a) Findings.--The House finds that--
          (1) while the budget may be in balance, it continues 
        to be ridden with waste, fraud, and abuse;
          (2) just last month, auditors documented more than 
        $19,000,000,000 in improper payments each year by such 
        agencies as the Agency of International Development, 
        the Internal Revenue Service, the Social Security 
        Administration, and the Department of Defense;
          (3) the General Accounting Office (GAO) recently 
        reported that the financial management practices of 
        some Federal agencies are so poor that it is unable to 
        determine the full extent of improper government 
        payments; and
          (4) the GAO now lists a record number of 25 Federal 
        programs that are at ``high risk'' of waste, fraud, and 
        abuse.
  (b) Sense of the House.--It is the sense of the House that 
the Committee on the Budget has now created task forces to 
address this issue and that the President should take immediate 
steps to reduce waste, fraud, and abuse within the Federal 
Government and report on such actions to the Congress and that 
the resolution should include reconciliation directives to the 
appropriate committees of jurisdiction to dedicate the 
resulting savings to debt reduction and tax relief.

SEC. 17. SENSE OF CONGRESS ON PROVIDING ADDITIONAL DOLLARS TO THE 
                    CLASSROOM.

  (a) Findings.--The Congress finds that--
          (1) strengthening America's public schools while 
        respecting State and local control is critically 
        important to the future of our children and our Nation;
          (2) education is a local responsibility, a State 
        priority, and a national concern;
          (3) a partnership with the Nation's governors, 
        parents, teachers, and principals must take place in 
        order to strengthen public schools and foster 
        educational excellence;
          (4) the consolidation of various Federal education 
        programs will benefit our Nation's children, parents, 
        and teachers by sending more dollars directly to the 
        classroom; and
          (5) our Nation's children deserve an educational 
        system that will provide opportunities to excel.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) Congress should enact legislation that would 
        consolidate thirty-one Federal K-12 education programs; 
        and
          (2) the Department of Education, the States, and 
        local educational agencies should work together to 
        ensure that not less than 95 percent of all funds 
        appropriated for the purpose of carrying out elementary 
        and secondary education programs administered by the 
        Department of Education is spent for our children in 
        their classrooms.

SEC. 18. SENSE OF CONGRESS REGARDING EMERGENCY SPENDING.

  It is the sense of Congress that, as a part of a 
comprehensive reform of the budget process, the Committees on 
the Budget should develop a definition of, and a process for, 
funding emergencies consistent with the applicable provisions 
of H.R. 853, the Comprehensive Budget Process Reform Act of 
1999, that could be incorporated into the Rules of the House of 
Representatives and the Standing Rules of the Senate.

SEC. 19. SENSE OF THE HOUSE ON ESTIMATES OF THE IMPACT OF REGULATIONS 
                    ON THE PRIVATE SECTOR.

  (a) Findings.--The House finds that--
          (1) the Federal regulatory system sometimes adversely 
        affects many Americans and businesses by imposing 
        financial burdens with little corresponding public 
        benefit;
          (2) currently, Congress has no general mechanism for 
        assessing the financial impact of regulatory activities 
        on the private sector;
          (3) Congress is ultimately responsible for making 
        sure agencies act in accordance with congressional 
        intent and, while the executive branch is responsible 
        for promulgating regulations, Congress should curb 
        ineffective regulations by using its oversight and 
        regulatory powers; and
          (4) a variety of reforms have been suggested to 
        increase congressional oversight over regulatory 
        activity, including directing the President to prepare 
        an annual accounting statement containing several cost/
        benefit analyses, recommendations to reform inefficient 
        regulatory programs, and an identification and analysis 
        of duplications and inconsistencies among such 
        programs.
  (b) Sense of the House.--It is the sense of the House that 
the House should reclaim its role as reformer and take the 
first step toward curbing inefficient regulatory activity by 
passing legislation authorizing the Congressional Budget Office 
to prepare regular estimates on the impact of proposed Federal 
regulations on the private sector.

SEC. 20. SENSE OF THE HOUSE ON BIENNIAL BUDGET.

  It is the sense of the House that there is a wide range of 
views on the advisability of biennial budgeting and this issue 
should be considered only within the context of comprehensive 
budget process reform.

SEC. 21. SENSE OF CONGRESS ON ACCESS TO HEALTH INSURANCE AND PRESERVING 
                    HOME HEALTH SERVICES FOR ALL MEDICARE 
                    BENEFICIARIES.

  (a) Access to Health Insurance.--
          (1) Findings.--Congress finds that--
                  (A) 44.4 million Americans are currently 
                without health insurance, and that this number 
                is expected to rise to nearly 60 million people 
                in the next 10 years;
                  (B) the cost of health insurance continues to 
                rise, a key factor in increasing the number of 
                uninsured; and
                  (C) there is a consensus that working 
                Americans and their families will suffer from 
                reduced access to health insurance.
          (2) Sense of Congress on Improving Access to Health 
        Care Insurance.--It is the sense of Congress that 
        access to affordable health care coverage for all 
        Americans is a priority of the 106th Congress.
  (b) Preserving Home Health Service For All Medicare 
Beneficiaries.--
          (1) Findings.--Congress finds that--
                  (A) the Balanced Budget Act of 1997 reformed 
                Medicare home health care spending by 
                instructing the Health Care Financing 
                Administration to implement a prospective 
                payment system and instituted an interim 
                payment system to achieve savings;
                  (B) the Medicare, Medicaid, and SCHIP 
                Balanced Budget Refinement Act, 1999, reformed 
                the interim payment system to increase 
                reimbursements to low-cost providers and 
                delayed the automatic 15 percent payment 
                reduction until after the first year of the 
                implementation of the prospective payment 
                system; and
                  (C) patients whose care is more extensive and 
                expensive than the typical Medicare patient do 
                not receive supplemental payments in the 
                interim payment system but will receive special 
                protection in the home health care prospective 
                payment system.
          (2) Sense of congress on access to home health 
        care.--It is the sense of Congress that--
                  (A) Congress recognizes the importance of 
                home health care for seniors and disabled 
                citizens;
                  (B) Congress and the Administration should 
                work together to maintain quality care for 
                patients whose care is more extensive and 
                expensive than the typical Medicare patient, 
                including the sickest and frailest Medicare 
                beneficiaries, while home health care agencies 
                operate in the interim payment system; and
                  (C) Congress and the Administration should 
                work together to avoid the implementation of 
                the 15 percent reduction in the prospective 
                payment system and ensured timely 
                implementation of that system.

SEC. 22. SENSE OF CONGRESS REGARDING MEDICARE+CHOICE PROGRAMS/
                    REIMBURSEMENT RATES.

  It is the sense of Congress that the Medicare+Choice regional 
disparity among reimbursement rates is unfair, and that full 
funding of the Medicare+Choice program is a priority as 
Congress deals with any medicare reform legislation.

SEC. 23. SENSE OF THE HOUSE ON DIRECTING THE INTERNAL REVENUE SERVICE 
                    TO ACCEPT NEGATIVE NUMBERS IN FARM INCOME 
                    AVERAGING.

  (a) Findings.--The House finds that--
          (1) farmers' and ranchers' incomes vary widely from 
        year to year due to uncontrollable markets and 
        unpredictable weather;
          (2) in the Taxpayer Relief Act of 1997, Congress 
        enacted 3-year farm income averaging to protect 
        agricultural producers from excessive tax rates in 
        profitable years;
          (3) last year, the Internal Revenue Service (IRS) 
        proposed final regulations for averaging farm income 
        which fail to make clear that taxable income in a given 
        year may be a negative number; and
          (4) this IRS interpretation can result in farmers 
        having to pay additional taxes during years in which 
        they experience a loss in income.
  (b) Sense of the House.--It is the sense of the House that 
during this session of the 106th Congress, legislation should 
be considered to direct the Internal Revenue Service to count 
any net loss of income in determining the proper rate of 
taxation.

SEC. 24. SENSE OF THE HOUSE REGARDING THE STABILIZATION OF CERTAIN 
                    FEDERAL PAYMENTS TO STATES, COUNTIES, AND BOROUGHS.

  It is the sense of the House that Federal revenue-sharing 
payments to States, counties, and boroughs pursuant to the Act 
of May 23, 1908 (35 Stat. 260; 16 U.S.C. 500), the Act of March 
1, 1911 (36 Stat. 963; 16 U.S.C. 500), the Act of August 28, 
1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), the Act of 
May 24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et 
seq.), and sections 13982 and 13983 of the Omnibus Budget 
Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500 
note; 43 U.S.C. 1181f note) should be stabilized and maintained 
for the long-term benefit of schools, roads, public services, 
and communities, and that providing such permanent, stable 
funding is a priority of the 106th Congress.

SEC. 25. SENSE OF CONGRESS ON THE IMPORTANCE OF THE NATIONAL SCIENCE 
                    FOUNDATION.

  (a) Findings.--The Congress finds that--
          (1) the year 2000 will mark the 50th Anniversary of 
        the National Science Foundation;
          (2) the National Science Foundation is the largest 
        supporter of basic research in the Federal Government;
          (3) the National Science Foundation is the second 
        largest supporter of university-based research;
          (4) research conducted by the grantees of the 
        National Science Foundation has led to innovations that 
        have dramatically improved the quality of life of all 
        Americans;
          (5) grants made by the National Science Foundation 
        have been a crucial factor in the development of 
        important technologies that Americans take for granted, 
        such as lasers, Magnetic Resonance Imaging, Doppler 
        Radar, and the Internet;
          (6) because basic research funded by the National 
        Science Foundation is high-risk, cutting edge, 
        fundamental, and may not produce tangible benefits for 
        over a decade, the Federal Government is uniquely 
        suited to support such research; and
          (7) the National Science Foundation's focus on peer-
        reviewed merit based grants represents a model for 
        research agencies across the Federal Government.
  (b) Sense of Congress.--It is the sense of Congress that the 
function 250 (Basic Science) levels assume an amount of funding 
which ensures that the National Science Foundation is a 
priority in the resolution; recognizing the National Science 
Foundation's critical roles in funding basic research, which 
leads to the innovations that assure the Nation's economic 
future, and in cultivating America's intellectual 
infrastructure.

SEC. 26. SENSE OF CONGRESS REGARDING SKILLED NURSING FACILITIES.

  It is the sense of Congress that the Medicare Payment 
Advisory Commission continue to carefully monitor the medicare 
skilled nursing benefit to determine if payment rates are 
sufficient to provide quality care, and that if reform is 
recommended, Congress should pass legislation as quickly as 
possible to assure quality skilled nursing care.

SEC. 27. SENSE OF CONGRESS ON SPECIAL EDUCATION.

  (a) Findings.--Congress finds that--
          (1) all children deserve a quality education, 
        including children with disabilities;
          (2) the Individuals with Disabilities Education Act 
        provides that the Federal, State, and local governments 
        are to share in the expense of educating children with 
        disabilities and commits the Federal Government to pay 
        up to 40 percent of the national average per pupil 
        expenditure for children with disabilities;
          (3) the high cost of educating children with 
        disabilities and the Federal Government's failure to 
        fully meet its obligation under the Individuals with 
        Disabilities Education Act stretches limited State and 
        local education funds, creating difficulty in providing 
        a quality education to all students, including children 
        with disabilities;
          (4) the current level of Federal funding to States 
        and localities under the Individuals with Disabilities 
        Education Act is contrary to the goal of ensuring that 
        children with disabilities receive a quality education;
          (5) the Federal Government has failed to appropriate 
        40 percent of the national average per pupil 
        expenditure per child with a disability as required 
        under the Individuals with Disabilities Act to assist 
        States and localities to educate children with 
        disabilities; and
          (6) the levels in function 500 (Education) for fiscal 
        year 2001 assume sufficient discretionary budget 
        authority to accommodate fiscal year 2001 
        appropriations for IDEA at least $2,000,000,000 above 
        such funding levels appropriated in fiscal year 2000.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) Congress and the President should increase fiscal 
        year 2001 funding for programs under the Individuals 
        with Disabilities Act by at least $2,000,000,000 above 
        fiscal year 2000 appropriated levels;
          (2) Congress and the President should give programs 
        under the Individuals with Disabilities Education Act 
        the highest priority among Federal elementary and 
        secondary education programs by meeting the commitment 
        to fund the maximum State grant allocation for 
        educating children with disabilities under such Act 
        prior to authorizing or appropriating funds for any new 
        education initiative;
          (3) Congress and the President should, if new or 
        increased funding is authorized or appropriated for any 
        education initiative, provide the flexibility in such 
        authorization or appropriation necessary to allow local 
        educational agencies the authority to use such funds 
        for programs under the Individuals with Disabilities 
        Education Act; and
          (4) if a local educational agency chooses to utilize 
        the authority under section 613(a)(2)(C)(i) of the 
        Individuals with Disabilities Education Act to treat as 
        local funds up to 20 percent of the amount of funds the 
        agency receives under part B of such Act that exceeds 
        the amount it received under that part for the previous 
        fiscal year, then the agency should use those local 
        funds to provide additional funding for any Federal, 
        State, or local education program.

SEC. 28. ASSUMED FUNDING LEVELS FOR SPECIAL EDUCATIONAL.

  It is the sense of Congress that function 500 (Education) 
levels assume at least a $2,000,000,000 increase in fiscal year 
2001 over the current fiscal year to reflect the commitment of 
Congress to appropriate 40 percent of the national per pupil 
expenditure for children with disabilities by a date certain.

SEC. 29. SENSE OF CONGRESS ON A FEDERAL EMPLOYEE PAY RAISE.

  It is the sense of Congress that the pay increase for Federal 
employees in January 2001 should be at least 3.7 percent.

SEC. 30. SENSE OF CONGRESS REGARDING HCFA DRAFT GUIDELINES.

  (a) Findings.--Congress finds that--
          (1) on February 15, 2000, the Health Care Financing 
        Administration in the Department of Health and Human 
        Services issued a draft Medicaid School-Based 
        Administrative Claiming (MAC) Guide; and
          (2) in its introduction, the stated purpose of the 
        draft MAC guide is to provide information for schools, 
        State medicaid agencies, HCFA staff, and other 
        interested parties on the existing requirements for 
        claiming Federal funds under the medicaid program for 
        the costs of administrative activities, such as 
        medicaid outreach, that are performed in the school 
        setting associated with school-based health services 
        programs.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) many school-based health programs provide a broad 
        range of services that are covered by medicaid, 
        affording access to care for children who otherwise 
        might well go without needed services;
          (2) such programs also can play a powerful role in 
        identifying and enrolling children who are eligible for 
        medicaid, as well as the State Children's Health 
        Insurance programs;
          (3) undue administrative burdens may be placed on 
        school districts and States and deter timely 
        application approval;
          (4) the Health Care Financing Administration should 
        substantially revise or abandon the current draft MAC 
        guide because it appears to promulgate new rules that 
        place excessive administrative burdens on participating 
        school districts;
          (5) the goal of the revised guide should be to 
        encourage the appropriate use of Medicaid school-based 
        services without undue administrative burdens; and
          (6) the best way to ensure the continued viability of 
        medicaid school-based services is to guarantee that the 
        guidelines are fair and responsible.

SEC. 31. SENSE OF CONGRESS ON ASSET-BUILDING FOR THE WORKING POOR.

  (a) Findings.--Congress finds that--
          (1) 33 percent of all Americans households and 60 
        percent of African American households have no or 
        negative financial assets;
          (2) 46.9 percent of children in America live in 
        households with no financial assets, including 40 
        percent of Caucasian children and 75 percent of African 
        American children;
          (3) in order to provide low-income families with more 
        tools for empowerment, incentives, including individual 
        development accounts, are demonstrating success at 
        empowering low-income workers;
          (5) middle and upper income Americans currently 
        benefit from tax incentives for building assets; and
          (6) the Federal Government should utilize the Federal 
        tax code to provide low-income Americans with 
        incentives to work and build assets in order to escape 
        poverty permanently.
  (b) Sense of Congress.--It is the sense of Congress that the 
provisions of this resolution assume that Congress should 
modify the Federal tax law to include Individual Development 
Account provisions in order to encourage low-income workers and 
their families to save for buying a first home, starting a 
business, obtaining an education, or taking other measures to 
prepare for the future.