Balanced Budget Enforcement Act of 1997

TABLE OF CONTENTS:

Title I: Balancing the Budget

Title II: Technical and Conforming Amendments

Balanced Budget Enforcement Act of 1997 - Title I: Balancing the Budget - Part A: Purpose - Repeals parts C (Emergency Powers to Eliminate Deficits in Excess of Maximum Deficit Amount), D (Budgetary Treatment of Social Security Trust Funds), and E (Miscellaneous and Related Provisions) of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).

Part B: The Deficit Elimination Act of 1997 - Deficit Elimination Act of 1997 - Sets for FY 1998 through 2002: (1) deficit reduction targets for direct spending and receipts legislation; and (2) discretionary funding limits, measured in terms of new budget authority. Permits adjustments, whenever appropriate, to discretionary funding limits to reflect: (1) changes in concepts; (2) changes in inflation; (3) expiring housing contracts; (4) emergencies; (5) new limits for FY 2002 and thereafter; and (6) transportation trust funds.

(Sec. 103) Provides for: (1) balancing the budget in FY 2002; (2) preventing deficits after FY 2002; (3) enactment of a spin-off law, if required, to achieve such goals; and (4) targeted sequestration if a spin-off law is in effect for a fiscal year on the date of the final sequestration report for that fiscal year.

(Sec. 106) Establishes a scorecard upon which shall be entered: (1) for FY 1998 through 2002 the estimated increase or decrease in the deficit; (2) for FY 2003 and thereafter the estimated increase or decrease in the deficit or surplus; and (3) for fiscal years after FY 1998 the amount of discretionary appropriations.

(Sec. 109) Declares that, for a budget year in which a spin-off law is not in effect, the amount to be sequestered: (1) shall be the amount (if any) by which the sum of all budget-year entries on the direct spending and receipts scorecard is greater than zero; and (2) shall be increased whenever the average out-year change in direct spending and receipts, combined, achieved during that budget-year session would result in higher deficits than if that average change had equaled the amount targeted for the budget year, with that budget-year target being the amount that the sequestration preview report for the budget year shows was needed to bring the budget-year entries on the direct spending and receipts scorecard to zero.

Provides that, within 15 days after the Congress adjourns to end a session, and on the same day as an across-the-board reduction of discretionary programs, such a sequestration shall take place to reduce the amount of receipts in the current policy baseline, unless the sum computed for the sequestration is less than $500 million. Mandates that sequestration be achieved by reducing each non-exempt direct spending account by the uniform percentage necessary to achieve 80 percent of the sequestration sum, and increasing receipts to achieve the other 20 percent through surtaxes as enacted under this Act.

(Sec. 110) Provides for an across-the-board reduction of discretionary programs, if there is a sequestration.

(Sec. 111) Lists programs and activities which shall be exempt from sequestration, including optional exemptions of military personnel.

(Sec. 112) Sets forth general sequestration rules, including permanent sequestration of direct spending and receipts, as well as special rules for: (1) block grants to States for temporary assistance for needy families (TANF) under the Social Security Act; (2) the Child Support Enforcement Program; (3) the Commodity Credit Corporation; (4) the Conservation Reserve Program; (5) extended unemployment compensation; (6) the Federal Employees Health Benefits Fund; (7) the Federal Housing Finance Board; (8) Federal pay; (9) guaranteed student loans; (10) Federal insurance programs; (11) Medicaid; (12) Medicare; (13) the Postal Service Fund; (14) power marketing administration funds and the Tennessee Valley Authority (TVA) fund; and (15) veterans' housing loans.

(Sec. 113) Amends the Internal Revenue Code to provide for the imposition of tax sequestration surtaxes on individuals and corporations.

(Sec. 114) Requires both the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) to prepare both sequestration preview and final reports. Directs the Board of Estimates (established under this Act), at specified appropriate times, to choose one report from each pair as the official preview or final report. Directs the President, on the day that the Board chooses the final sequestration report, to issue an order fully implementing without change all required sequestrations and tax actions.

(Sec. 115) Provides for determination of the current policy baseline and the baseline assuming deficit reduction.

(Sec. 117) Establishes in the Treasury a Stabilization Reserve Fund in order to accumulate balances during years of comparative prosperity, which balances may later be used to cover the loss of receipts and the increase in outlays that occur during times of comparative economic distress.

(Sec. 118) Provides for the suspension of sequestration procedures: (1) upon the declaration of war; and (2) during periods of low economic growth. Sets forth procedures for the consideration of a low growth joint resolution by the Congress.

(Sec. 119) Establishes a Board of Estimates to report to the President and the Congress concerning the selection of the OMB and CBO sequestration preview and final reports.

(Sec. 120) Provides for: (1) expedited judicial review of the constitutionality of provisions of this Act in the United States District Court for the District of Columbia in an action by any Member of Congress or other adversely affected individual seeking declaratory judgment and injunctive relief; and (2) direct appeal to the Supreme Court of any court order issued pursuant to such an action.

Title II: Technical and Conforming Amendments - Sets forth technical and conforming amendments to: (1) the Congressional Budget and Impoundment Act of 1974; (2) the Federal Credit Reform Act of 1990; (3) the Rules of the House of Representatives and the Standing Rules of the Senate; and (4) other Federal law provisions concerning, among other things, the President's budget and the public debt limit.