One Percent Spending Reduction Act of 2011 - Amends the Balance Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to establish the aggregate projected outlay (outlay cap) (less net interest payments) for FY2012 at $3.382 billion, less 1%.
Reduces each outlay cap for FY2013-FY2017 by 1% of the previous fiscal year's outlay cap.
Requires the outlay cap for FY2018 and each subsequent fiscal year to be 18% of the gross domestic product (GDP) for that fiscal year as estimated by the Office of Management and Budget (OMB).
Prohibits the outlay caps from being less than those for the preceding fiscal year for FY2019 and any ensuing fiscal year.
Requires a sequestration by OMB within 45 days after the beginning of a fiscal year to eliminate any excess outlay amount.
Prescribes requirements for Congressional Budget Office (CBO) and OMB sequestration preview reports and an OMB final sequestration report, accompanied by a presidential order detailing uniform spending reductions equal to the excess outlay amount.
Requires the House and the Senate budget committees to report a resolution directing the committees of their respective chambers to change existing law to achieve the spending reductions outlined in the OMB August 20 report to meet the outlay limits, if a sequestration is projected.
States that if, after November 15, a bill resulting in outlays for the current fiscal year is enacted that causes excess outlays, the excess outlays for the next fiscal year shall be increased by the amount or amounts of that breach.
Repeals provisions of the Gramm-Rudman-Hollings Act terminating Pay-As-You-Go (PAYGO) enforcement mechanisms under such Act.
Amends the Congressional Budget Act of 1974 to make it out of order in both chambers to consider any bill, joint resolution, amendment, or conference report that includes any provision that would cause the most recently reported, current outlay limits in the Gramm-Rudman-Hollings Act to be exceeded. Prescribes procedures for waiver or suspension of this rule.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1848 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 1848
To prevent a fiscal crisis by enacting legislation to balance the
Federal budget through reductions of discretionary and mandatory
spending.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 11, 2011
Mr. Mack (for himself, Mr. Broun of Georgia, Mrs. Lummis, Mr. Ribble,
Mr. Stutzman, Mr. Campbell, Mr. Bartlett, Mr. King of Iowa, Mr. Ross of
Florida, Mr. Miller of Florida, Mr. Duncan of Tennessee, Mr. West, Mr.
Garrett, and Mr. Gingrey of Georgia) introduced the following bill;
which was referred to the Committee on the Budget, and in addition to
the Committee on Rules, 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 prevent a fiscal crisis by enacting legislation to balance the
Federal budget through reductions of discretionary and mandatory
spending.
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 ``One Percent Spending Reduction Act
of 2011''.
SEC. 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 24 percent of GDP in 2010.
(B) Total Federal debt exceeds $14 trillion and has
increased $4 trillion in the past three years alone.
(C) Without action, the Federal government will
continue to run massive deficits in the next decade and
total Federal debt will rise to $24 trillion by 2021.
(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) From 1980 to 2010, Federal revenues averaged 18 percent
of GDP and are projected to return to that level within the
next decade.
(4) Absent reform, the growth of Social Security, Medicare,
and Medicaid 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.
SEC. 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:
``SEC. 253A. ESTABLISHING OUTLAY CAPS.
``(a) Outlay Caps.--In this section, the term `outlay cap' means:
``(1) Fiscal year 2012.--For fiscal year 2012, the
aggregate projected outlays (less net interest payments) for
fiscal year 2012 shall be $3,382,000,000,000, less one percent.
``(2) Fiscal year 2013.--For fiscal year 2013, the
aggregate projected outlays (less net interest payments) for
fiscal year 2013 shall be the amount computed under paragraph
(1), less one percent.
``(3) Fiscal year 2014.--For fiscal year 2014, the
aggregate projected outlays (less net interest payments) for
fiscal year 2014 shall be the amount computed under paragraph
(2), less one percent.
``(4) Fiscal year 2015.--For fiscal year 2015, the
aggregate projected outlays (less net interest payments) for
fiscal year 2015 shall be the amount computed under paragraph
(3), less one percent.
``(5) Fiscal year 2016.--For fiscal year 2016, the
aggregate projected outlays (less net interest payments) for
fiscal year 2016 shall be the amount computed under paragraph
(4), less one percent.
``(6) Fiscal year 2017.--For fiscal year 2017, the
aggregate projected outlays (less net interest payments) for
fiscal year 2017 shall be the amount computed under paragraph
(5), less one percent.
``(7) Fiscal year 2018 and subsequent fiscal years.--(A)
For fiscal year 2018 and each subsequent fiscal year, the
aggregate projected outlays shall be 18 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 2019, 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 2012 through 2017
and for purposes of this subsection, the term
`excess outlay amount' means the amount by
which total Federal outlays (less net interest
payments) for a fiscal year exceeds the outlay
cap for that fiscal year.
``(ii) For fiscal year 2018 and in
subsequent fiscal years and for purposes of
this subsection, the term `excess outlay
amount' means the amount by which total 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 section 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 15, 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 2012 through
2017: the aggregate projected outlays (less net
interest payment), less one percent.
``(ii) For budget year 2018 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 report 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 report 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:
``SEC. 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.''.
SEC. 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.''.
SEC. 5. EFFECTIVE DATE.
This Act and the amendments made by it shall apply to fiscal year
2012 and subsequent fiscal years, including any reports and
calculations required for implementation in fiscal year 2012.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Budget, and in addition to the Committee on Rules, 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 Committee on Rules, 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.
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