Social Security Surplus Preservation and Debt Reduction Act - Amends the Congressional Budget Act of 1974 to make it out of order in the House of Representatives or the Senate to consider a concurrent budget resolution (or amendment thereto or conference report thereon) that violates a provision of the Budget Enforcement Act of 1990 that provides that the receipts and disbursements of the Federal Old-Age and Survivors and Disability Insurance Trust Funds (social security trust funds) shall not be counted for purposes of the presidential or congressional budget or the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).
Makes it out of order in the House or the Senate to consider any legislation that would: (1) increase the limit on the public debt under the Gramm-Rudman-Hollings Act; or (2) provide additional borrowing authority that would result in such limit being exceeded.
Makes it out of order in the House or the Senate to consider a concurrent budget resolution (or amendment thereto or conference report thereon) that sets forth a deficit for any fiscal year. Makes such point of order inapplicable if: (1) the public debt limit is suspended; or (2) the deficit for a fiscal year results solely from the enactment of retirement security reform legislation or provisions designated as emergency requirements.
Includes the level of public debt in the required content of the concurrent budget resolution. Requires the budget resolution to specify the amounts by which the limit on such debt is to be changed and direct the committee having jurisdiction to recommend such change.
Amends the Gramm-Rudman-Hollings Act to set forth: (1) limits on the public debt for specified periods through April 30, 2010; and (2) estimated levels of social security surpluses through FY 2009.
Provides for adjustments to the public debt limit based on actual social security surpluses and emergency requirements. Prohibits such adjustments if those for the current year are less than the on-budget surplus for the year before the current year.
Suspends the public debt limit in cases of low economic growth or war.
Provides for an adjustment to the public debt limit if retirement security reform legislation is enacted.
Sunsets this Act on April 30, 2010.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1803 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 1803
To preserve and protect the surpluses of the Social Security trust
funds by reaffirming the exclusion of receipts and disbursement from
the budget, by setting a limit on the debt held by the public, and by
amending the Congressional Budget Act of 1974 to provide a process to
reduce the limit on the debt held by the public.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 13, 1999
Mr. Kasich (for himself and Mr. Ryan of Wisconsin) introduced the
following bill; which was referred to the Committee on the Budget, and
in addition to the Committees on Rules, and Ways and Means, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To preserve and protect the surpluses of the Social Security trust
funds by reaffirming the exclusion of receipts and disbursement from
the budget, by setting a limit on the debt held by the public, and by
amending the Congressional Budget Act of 1974 to provide a process to
reduce the limit on the debt held by the public.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Social Security Surplus Preservation
and Debt Reduction Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the $69,246,000,000 unified budget surplus achieved in
fiscal year 1998 was entirely due to surpluses generated by the
social security trust funds and the cumulative unified budget
surpluses projected for subsequent fiscal years are primarily
due to surpluses generated by the social security trust funds;
(2) Congress and the President should balance the budget
excluding the surpluses generated by the social security trust
funds;
(3) according to the Congressional Budget Office, balancing
the budget excluding the surpluses generated by the social
security trust funds will reduce the debt held by the public by
a total of $1,723,000,000,000 by the end of fiscal year 2009;
and
(4) social security surpluses should be used to enhance
retirement security or to reduce the debt held by the public
and should not be spent on other programs.
SEC. 3. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.
(a) Protection by Congress.--
(1) Reaffirmation of support.--Congress reaffirms its
support for the provisions of section 13301 of the Budget
Enforcement Act of 1990 that provides that the receipts and
disbursements of the social security trust funds shall not be
counted for the purposes of the budget submitted by the
President, the congressional budget, or the Balanced Budget and
Emergency Deficit Control Act of 1985.
(2) Protection of social security benefits.--If there are
sufficient balances in the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust
Fund, the Secretary of Treasury shall give priority to the
payment of social security benefits required to be paid by law.
(b) Points of Order.--Section 301 of the Congressional Budget Act
of 1974 is amended by adding at the end the following:
``(j) Social Security Point of Order.--It shall not be in order in
the House of Representatives or the Senate to consider a concurrent
resolution on the budget, an amendment thereto, or a conference report
thereon that violates section 13301 of the Budget Enforcement Act of
1990.
``(k) Debt Held by the Public Point of Order.--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 that
would--
``(1) increase the limit on the debt held by the public in
section 253A(a) of the Balanced Budget and Emergency Deficit
Control Act of 1985; or
``(2) provide additional borrowing authority that would
result in the limit on the debt held by the public in section
253A(a) of the Balanced Budget and Emergency Deficit Control
Act of 1985 being exceeded.
``(l) Social Security Surplus Protection Point of Order.--
``(1) In general.--It shall not be in order in the House of
Representatives or the Senate to consider a concurrent
resolution on the budget, an amendment thereto, or a conference
report thereon that sets forth a deficit in any fiscal year.
``(2) Exception.--Paragraph (1) shall not apply if--
``(A) the limit on the debt held by the public in
section 253A(a) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is suspended; or
``(B) the deficit for a fiscal year results solely
from the enactment of--
``(i) retirement security reform
legislation, as defined in section 253A(e)(2)
of the Balanced Budget and Emergency Deficit
Control Act of 1985; or
``(ii) provisions of legislation that are
designated as an emergency requirement pursuant
to section 251(b)(2)(A) or 252(e) of the
Balanced Budget and Emergency Deficit Control
Act of 1985.''.
SEC. 4. DEDICATION OF SOCIAL SECURITY SURPLUSES TO REDUCTION IN THE
DEBT HELD BY THE PUBLIC.
(a) Amendments to the Congressional Budget Act of 1974.--The
Congressional Budget Act of 1974 is amended--
(1) in section 3, by adding at the end the following:
``(11)(A) The term `debt held by the public' means the
outstanding face amount of all debt obligations issued by the
United States Government that are held by outside investors,
including individuals, corporations, State or local
governments, foreign governments, and the Federal Reserve
System.
``(B) For the purpose of this paragraph, the term `face
amount', for any month, of any debt obligation issued on a
discount basis that is not redeemable before maturity at the
option of the holder of the obligation is an amount equal to
the sum of--
``(i) the original issue price of the obligation;
plus
``(ii) the portion of the discount on the
obligation attributable to periods before the beginning
of such month.
``(12) The term `social security surplus' means the amount
for a fiscal year that receipts exceed outlays of the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund.'';
(2) in section 301(a) by--
(A) redesignating paragraphs (6) and (7) as
paragraphs (7) and (8), respectfully; and
(B) inserting after paragraph (5) the following:
``(6) the debt held by the public; and''; and
(3) in section 310(a) by--
(A) striking ``or'' at the end of paragraph (3);
(B) by redesignating paragraph (4) as paragraph
(5); and
(C) inserting the following new paragraph;
``(4) specify the amounts by which the statutory limit on
the debt held by the public is to be changed and direct the
committee having jurisdiction to recommend such change; or''.
(b) Amendments to the Balanced Budget and Emergency Deficit Control
Act of 1985.--The Balanced Budget and Emergency Deficit Control Act of
1985 is amended--
(1) in section 250, by striking subsection (b) and
inserting the following:
``(b) General Statement of Purpose.--This part provides for the
enforcement of--
``(1) a balanced budget excluding the receipts and
disbursements of the social security trust funds; and
``(2) a limit on the debt held by the public to ensure that
social security surpluses are used for retirement security
reform or to reduce debt held by the public and are not spent
on other programs.'';
(2) in section 250(c)(1), by inserting ``` debt held by the
public', `social security surplus''' after ``outlays',''; and
(3) by inserting after section 253 the following:
``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.
``(a) Limit.--The debt held by the public shall not exceed--
``(1) for the period beginning May 1, 2000 through April
30, 2001, $3,628,000,000,000;
``(2) for the period beginning May 1, 2001 through April
30, 2002, $3,512,000,000,000;
``(3) for the period beginning May 1, 2002 through April
30, 2004, $3,383,000,000,000;
``(4) for the period beginning May 1, 2004 through April
30, 2006, $3,100,000,000,000;
``(5) for the period beginning May 1, 2006 through April
30, 2008, $2,775,000,000,000; and,
``(6) for the period beginning May 1, 2008 through April
30, 2010, $2,404,000,000,000.
``(b) Adjustments for Actual Social Security Surplus Levels.--
``(1) Estimated levels.--The estimated level of social
security surpluses for the purposes of this section is--
``(A) for fiscal year 1999, $127,000,000,000;
``(B) for fiscal year 2000, $137,000,000,000;
``(C) for fiscal year 2001, $145,000,000,000;
``(D) for fiscal year 2002, $153,000,000,000;
``(E) for fiscal year 2003, $162,000,000,000;
``(F) for fiscal year 2004, $171,000,000,000;
``(G) for fiscal year 2005, $184,000,000,000;
``(H) for fiscal year 2006, $193,000,000,000;
``(I) for fiscal year 2007, $204,000,000,000;
``(J) for fiscal year 2008, $212,000,000,000; and
``(K) for fiscal year 2009, $218,000,000,000.
``(2) Adjustment to the limit for actual social security
surpluses.--After October 1 and no later than December 31 of
each year, the Secretary shall make the following calculations
and adjustments:
``(A) Calculation.--After the Secretary determines
the actual level for the social security surplus for
the current year, the Secretary shall take the
estimated level of the social security surplus for that
year specified in paragraph (1) and subtract that
actual level.
``(B) Adjustment.--
``(i) 2000 through 2004.--With respect to
the periods described in subsections (a)(1),
(a)(2), and (a)(3), the Secretary shall add the
amount calculated under subparagraph (A) to--
``(I) the limit set forth in
subsection (a) for the period of years
that begins on May 1st of the following
calendar year; and
``(II) each subsequent limit.
``(ii) 2004 through 2010.--With respect to
the periods described in subsections (a)(4),
(a)(5), and (a)(6), the Secretary shall add the
amount calculated under subparagraph (A) to--
``(I) the limit set forth in
subsection (a) for the period of years
that includes May 1st of the following
calendar year; and
``(II) each subsequent limit.
``(c) Adjustment to the Limit for Emergencies.--
``(1) Estimate of legislation.--
``(A) Calculation.--If legislation is enacted into
law that contains a provision that is designated as an
emergency requirement pursuant to section 251(b)(2)(A)
or 252(e), OMB shall estimate the amount the debt held
by the public will change as a result of the
provision's effect on the level of total outlays and
receipts excluding the impact on outlays and receipts
of the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund.
``(B) Baseline levels.--OMB shall calculate the
changes in subparagraph (A) relative to baseline levels
for each fiscal year through fiscal year 2010 using
current estimates.
``(C) Estimate.--OMB shall include the estimate
required by this paragraph in the report required under
section 251(a)(7) or section 252(d), as the case may
be.
``(2) Adjustment.--After January 1 and no later than May 1
of each calendar year beginning with calendar year 2000--
``(A) with respect to the periods described in
subsections (a)(1), (a)(2), and (a)(3), the Secretary
shall add the amounts calculated under paragraph (1)(A)
for the current year included in the report referenced
in paragraph (1)(C) to--
``(i) the limit set forth in subsection (a)
for the period of years that begins on May 1 of
that calendar year; and
``(ii) each subsequent limit; and
``(B) with respect to the periods described in
subsections (a)(4), (a)(5), and (a)(6), the Secretary
shall add the amounts calculated under paragraph (1)(A)
for the current year included in the report referenced
in paragraph (1)(C) to--
``(i) the limit set forth in subsection (a)
for the period of years that includes May 1 of
that calendar year; and
``(ii) each subsequent limit.
``(3) Exception.--The Secretary shall not make the
adjustments pursuant to this section if the adjustments for the
current year are less than the on-budget surplus for the year
before the current year.
``(d) Adjustment to the Limit for Low Economic Growth and War.--
``(1) Suspension of statutory limit on debt held by the
public.--
``(A) Low economic growth.--If the most recent of
the Department of Commerce's advance, preliminary, or
final reports of actual real economic growth indicate
that the rate of real economic growth for each of the
most recently reported quarter and the immediately
preceding quarter is less than 1 percent, the limit on
the debt held by the public established in this section
is suspended.
``(B) War.--If a declaration of war is in effect,
the limit on the debt held by the public established in
this section is suspended.
``(2) Restoration of statutory limit on debt held by the
public.--
``(A) Restoration of limit.--The statutory limit on
debt held by the public shall be restored on May 1
following the quarter in which the level of real Gross
Domestic Product in the final report from the
Department of Commerce is equal to or is higher than
the level of real Gross Domestic Product in the quarter
preceding the first two quarters that caused the
suspension of the pursuant to paragraph (1).
``(B) Adjustment.--
``(i) Calculation.--The Secretary shall
take level of the debt held by the public on
October 1 of the year preceding the date
referenced in subparagraph (A) and subtract the
limit in subsection (a) for the period of years
that includes the date referenced in
subparagraph (A).
``(ii) Adjustment.--The Secretary shall add
the amount calculated under clause (i) to--
``(I) the limit in subsection (a)
for the period of fiscal years that
includes the date referenced in
subparagraph (A); and
``(II) each subsequent limit.
``(e) Adjustment to the Limit for Retirement Security Reform
Provisions that Affect On-Budget Levels.--
``(1) Estimate of legislation.--
``(A) Calculation.--If retirement security reform
legislation is enacted, OMB shall estimate the amount
the debt held by the public will change as a result of
the legislation's effect on the level of total outlays
and receipts excluding the impact on outlays and
receipts of the Federal Old-Age and Survivors Insurance
Trust Fund and the Federal Disability Insurance Trust
Fund.
``(B) Baseline levels.--OMB shall calculate the
changes in subparagraph (A) relative to baseline levels
for each fiscal year through fiscal year 2010 using
current estimates.
``(C) Estimate.--OMB shall include the estimate
required by this paragraph in the report required under
section 252(d) for retirement security reform
legislation.
``(2) Adjustment to limit on the debt held by the public.--
If retirement security reform legislation is enacted, the
Secretary shall adjust the limit on the debt held by the public
for each period of fiscal years by the amounts determined under
paragraph (1)(A) for the relevant fiscal years included in the
report referenced in paragraph (1)(C).
``(e) Definitions.--In this section:
``(1) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(2) Retirement security reform legislation.--The term
`retirement security reform legislation' means a bill or joint
resolution that is enacted into law and includes a provision
stating the following:
```( ) Retirement security reform legislation.--For the
purposes of the Social Security Surplus Preservation and Debt
Reduction Act, this Act constitutes retirement security reform
legislation.'
This paragraph shall apply only to the first bill or joint
resolution enacted into law as described in this paragraph.
``(3) Retirement security reform provisions.--The term
`retirement security reform provisions' means a provision or
provisions identified in retirement security reform legislation
stating the following:
```( ) Retirement security reform provisions.--For the
purposes of the Social Security Surplus Preservation and Debt
Reduction Act, ________ of this Act constitutes or constitute
social security reform provisions.', with a list of specific
provisions in that bill or joint resolution specified in the
blank space.''.
SEC. 5. PRESIDENT'S BUDGET.
Section 1105(f) of title 31, United States Code, is amended by
striking ``in a manner consistent'' and inserting ``in compliance''.
SEC. 6. SUNSET.
This Act and the amendments made by it shall expire on April 30,
2010.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Budget, and in addition to the Committees on Rules, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Rules, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Rules, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Rules, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Social Security.
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