S. 547 — Introduced in Senate

II 113th CONGRESS 1st Session S. 547 IN THE SENATE OF THE UNITED STATES March 13, 2013 Mr. Enzi (for himself, Mr. Paul, Mr. Rubio, Mr. Vitter, Mr. Barrasso, and Mr. Isakson) introduced the following bill; which was read twice and referred to the Committee on the Budget A BILL To prevent a fiscal crisis by enacting legislation to balance the Federal budget through reductions of discretionary and mandatory spending. 1. Short title This Act may be cited as the One Percent Spending Reduction Act of 2013. 2. Congressional findings and purpose (a) Findings The Congress finds the following: (1) The fiscal crisis faced by the Federal Government demands immediate action. (2) The dramatic growth in spending and debt in recent years threatens our economic and national security: (A) Federal spending has grown from 18 percent of GDP in 2001 to nearly 23 percent of GDP in 2012. (B) Total Federal debt exceeds $16,000,000,000,000 and is projected to increase each year over the next 10 years. (C) Without action, the Federal Government will continue to run massive deficits in the next decade and total Federal debt will rise to $26,000,000,000,000 by 2023. (D) Interest payments on this debt will soon rise to the point where balancing the budget as a matter of policy is beyond the reach of Congress. (3) Due to recent tax hikes, Federal revenues are scheduled to rise to approximately 19 percent of GDP, a full percentage point above the average of about 18 percent of GDP over the past 40 years. (4) Absent reform, the growth of Social Security, Medicare, Medicaid, and other health-related spending will overwhelm all other Federal programs and consume all projected tax revenues. (b) Purpose The purpose of this Act is to address the fiscal crisis by— (1) acting quickly to balance the Federal budget and eliminate the parade of deficits and ballooning interest payments; (2) achieving balance by reducing spending one percent per year until spending equals projected long-term revenues; and (3) reforming entitlement programs to ensure long-term fiscal stability and balance. 3. Establishment and enforcement of spending caps (a) Outlay caps The Balanced Budget and Emergency Deficit Control Act of 1985 is amended by inserting after section 253 the following new section: 253A. Establishing outlay caps (a) Outlay caps In this section, the term outlay cap means: (1) Fiscal year 2014 For fiscal year 2014, the aggregate outlays (less net interest payments) for fiscal year 2014 shall be $3,329,000,000,000, less one percent. (2) Fiscal year 2015 For fiscal year 2015, the aggregate outlays (less net interest payments) for fiscal year 2015 shall be the amount computed under paragraph (1), less one percent. (3) Fiscal year 2016 For fiscal year 2016, the aggregate outlays (less net interest payments) for fiscal year 2016 shall be the amount computed under paragraph (2), less one percent. (4) Fiscal year 2017 and subsequent fiscal years (A) For fiscal year 2017 and each subsequent fiscal year, the aggregate outlays shall be 19 percent of the gross domestic product for that fiscal year as estimated by OMB prior to March of the previous fiscal year. (B) Notwithstanding paragraph (A), for any fiscal year beginning with fiscal year 2018, the aggregate projected outlays may not be less than the aggregate projected outlays for the preceding fiscal year. (b) Sequestration (1) In general (A) Excess spending Not later than 45 calendar days after the beginning of a fiscal year, OMB shall conduct a sequestration to eliminate the excess outlay amount. (B) Definitions (i) For fiscal years 2014 through 2016 and for purposes of this subsection, the term excess outlay amount means the amount by which total projected Federal outlays (less net interest payments) for a fiscal year exceeds the outlay cap for that fiscal year. (ii) For fiscal year 2017 and in subsequent fiscal years and for purposes of this subsection, the term excess outlay amount means the amount by which total projected Federal outlays for a fiscal year exceeds the outlay cap for that fiscal year. (2) Sequestration (A) On August 15 of each year, CBO shall issue a sequestration preview report as described in section 254(c)(4). (B) On August 20 of each year, OMB shall issue a sequestration preview report as described in section 254(c)(4). (C) On October 31 of each year, OMB shall issue its final sequestration report as described in section 254(f)(3). It shall be accompanied by a Presidential order detailing uniform spending reductions equal to the excess outlay amount as defined in this section. (D) The reductions shall generally follow the process set forth in sections 253 and 254, except as provided in this section. (3) Congressional action If the August 20 OMB report projects a sequestration, the Committees on Budget of the Senate and House of Representatives may report a resolution directing their committees to change the existing law to achieve the spending reductions outlined in the August 20 report necessary to meet the outlay limits. (c) No exempt programs Section 255 and section 256 shall not apply to this section, except that payments for net interest (budget function 900) shall be exempt from the spending reductions under sequestration. (d) Look back If, after November 14, a bill resulting in outlays for the fiscal year in progress is enacted that causes excess outlays, the excess outlay amount for the next fiscal year shall be increased by the amount or amounts of that breach. . (b) Conforming amendments to BBEDCA (1) Sequestration preview reports Section 254(c)(4) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows: (4) Outlay cap sequestration reports The preview reports shall set forth for the budget year estimates for the following: (A) (i) For each of budget years 2014 through 2016: the aggregate projected outlays (less net interest payments), less one percent. (ii) For budget year 2017 and each subsequent budget year: the estimated gross domestic product (GDP) for that budget year. (B) The amount of reductions required under section 253A. (C) The sequestration percentage necessary to achieve the required reduction under section 253A. . (2) Final sequestration reports Section 254(f)(3) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows: (3) Outlay caps sequestration reports The final reports shall contain all the information required in the outlay cap sequestration preview reports. In addition, these reports shall contain, for the budget year, for each account to be sequestered, estimates of the baseline level of sequestrable budgetary resources and resulting outlays and the amount of budgetary sources to be sequestered and result in outlay reductions. The reports shall also contain estimates of the effects on outlays on the sequestration of each outyear for direct spending programs. . (3) Repeal of expiration date Section 275 of the Balanced Budget and Emergency Deficit Control Act of 1985 is repealed. (c) Enforcement Title III of the Congressional Budget Act of 1974 is amended by adding after section 315 the following: 316. Enforcement procedures (a) Outlay caps It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, or conference report that includes any provision that would cause the most recently reported, current outlay cap set forth in section 253A of the Balanced Budget and Emergency Deficit Control Act of 1985 to be breached. (b) Waiver or suspension (1) In the Senate The provisions of this section may be waived or suspended in the Senate only by the affirmative vote of two-thirds of the Members, duly chosen and sworn. (2) In the House The provisions of this section may be waived or suspended in the House of Representatives only by a rule or order proposing only to waive such provisions by an affirmative vote of two-thirds of the Members, duly chosen and sworn. (c) Point of order protection In the House, it shall not be in order to consider a rule or order that waives the application of paragraph (2) of subsection (b). (d) Motion To suspend It shall not be in order for the Speaker to entertain a motion to suspend the application of this section under clause 1 of rule XV. . 4. Conforming amendments The table of contents set forth in— (1) section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 315 the following new item: Sec. 316. Enforcement procedures. ; and (2) section 250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by inserting after the item relating to section 253 the following new item: Sec. 253A. Establishing outlay caps. . 5. Effective date This Act and the amendments made by it shall apply to fiscal year 2014 and subsequent fiscal years, including any reports and calculations required for implementation in fiscal year 2014.