§ 903. Enforcing deficit targets

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1985

   Balanced Budget and Emergency Deficit Control Act of 1985

   Pub. L. 99–177 title II § 253 · 99 Stat. 1037

   Enacted · 2 U.S.C. § 903

   Pub. L. 99–177, title II, § 253, Dec. 12, 1985, 99 Stat. 1078

   Source evidence

   Code source credit
   Pub. L. 99–177, title II, § 253, Dec. 12, 1985, 99 Stat. 1078

   Enacted provision · exact public law section
   SEC. 253. COMPLIANCE REPORT BY COMPTROLLER GENERAL. On or before November 15 of each fiscal year (or on or before April 1, 1986, in the case of the fiscal year 1986), the Comptroller General shall submit to the Congress and the President a report on Ante. p. 1072. the extent to which the President’s order issued under section 252(b) for such fiscal year complies with all of the requirements contained in section 252, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not.

2. 1987

   Pub. L. 100–119 title I § 103 · 101 Stat. 754

   1. Amended · 2 U.S.C. § 903

      Pub. L. 100–119 amended section generally

   2. Amended · 2 U.S.C. § 903

      Pub. L. 100–119 designating existing provisions as par. (1)

   3. Substituted · 2 U.S.C. § 903

      Pub. L. 100–119 substituting “(or December 15, 1987, in the case of the fiscal year 1988)” for “(or on or before April 1, 1986, in the case of the fiscal year 1986)”

   4. Added · 2 U.S.C. § 903

      Pub. L. 100–119 adding pars. (2) and (3)

   Source evidence

   Code amendment note
   Pub. L. 100–119 amended section generally, designating existing provisions as par. (1), substituting “(or December 15, 1987, in the case of the fiscal year 1988)” for “(or on or before April 1, 1986, in the case of the fiscal year 1986)”, and adding pars. (2) and (3).

   Enacted provision · exact public law section
   SEC. 103. COMPLIANCE REPORT BY COMPTROLLER GENERAL. Section 253 of the Act is amended to read as follows: 2 USC 903.

3. 1990

   Omnibus Budget Reconciliation Act of 1990

   Pub. L. 101–508 title XIII § 13101(a) · 104 Stat. 1388

   1. Amended · 2 U.S.C. § 903

      Pub. L. 101–508 amended section generally

   2. Substituted · 2 U.S.C. § 903

      Pub. L. 101–508 substituting provisions relating to enforcement of deficit targets for provisions relating to compliance report by Comptroller General

   Source evidence

   Code amendment note
   Pub. L. 101–508 amended section generally, substituting provisions relating to enforcement of deficit targets for provisions relating to compliance report by Comptroller General.

   Enacted provision · exact public law section
   (a) Sections 250 Through 254.— Sections 251 (except for subsection (a)(6)(D) through 254 of part C of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901 et seq.) are amended to read as follows: “SEC. 250. TABLE OF CONTENTS; STATEMENT OF BUDGET ENFORCEMENT THROUGH SEQUESTRATION; DEFINITIONS. “(a) Table of Contents.— “Sec. 250. Table of contents; budget enforcement statement; definitions. “Sec. 251. Enforcing discretionary spending limits. “Sec. 252. Enforcing pay-as-you-go. “Sec. 253. Enforcing deficit targets. “Sec. 254. Reports and orders. “Sec. 255. Exempt programs and activities. “Sec. 256. Special rules. “Sec. 257. The baseline. “Sec. 258. Suspension in the event of war or low growth. “Sec. 258A. Modification of presidential order. “Sec. 258B. Alternative defense sequestration. “Sec. 258C. Special reconciliation process. “(b) General Statement of Budget Enforcement Through Sequestration.— This part provides for the enforcement of the deficit reduction assumed in House Concurrent Resolution 310 (101st Congress, second session) and the applicable deficit targets for fiscal years 1991 through 1995. Enforcement, as necessary, is to be implemented through sequestration— “(1) to enforce discretionary spending levels assumed in that resolution (with adjustments as provided hereinafter); “(2) to enforce the requirement that any legislation increasing direct spending or decreasing revenues be on a pay-as-you-go basis; and “(3) to enforce the deficit targets specifically set forth in the Congressional Budget and Impoundment Control Act of 1974 (with adjustments as provided hereinafter); applied in the order set forth above. “(c) Definitions.— “As used in this part: “(1) The terms ‘budget authority’, ‘new budget authority’, ‘outlays’, and ‘deficit’ have the meanings given to such terms in section 3 of the Congressional Budget and Impoundment Control Act of 1974 (but including the treatment specified in section 257(b)(3) of the Hospital Insurance Trust Fund) and the terms ‘maximum deficit amount’ and ‘discretionary spending limit’ shall mean the amounts specified in section 601 of that Act as adjusted under sections 251 and 253 of this Act. “(2) The terms ‘sequester’ and ‘sequestration’ refer to or mean the cancellation of budgetary resources provided by discretionary appropriations or direct spending law. “(3) The term ‘breach’ means, for any fiscal year, the amount (if any) by which new budget authority or outlays for that year (within a category of discretionary appropriations) is above that category’s discretionary spending limit for new budget authority or outlays for that year, as the case may be. “(4) The term ‘category’ means: “(A) For fiscal years 1991, 1992, and 1993, any of the following subsets of discretionary appropriations: defense, international, or domestic. Discretionary appropriations in each of the three categories shall be those so designated in the joint statement of managers accompanying the conference report on the Omnibus Budget Reconciliation Act of 1990. New accounts or activities shall be categorized in consultation with the Committees on Appropriations and the Budget of the House of Representatives and the Senate. “(B) For fiscal years 1994 and 1995, all discretionary appropriations. Contributions to the United States to offset the cost of Operation Desert Shield shall not be counted within any category. “(5) The term ‘baseline’ means the projection (described in section 257) of current-year levels of new budget authority, outlays, receipts, and the surplus or deficit into the budget year and the outyears. “(6) The term ‘budgetary resources’ means— “(A) with respect to budget year 1991, new budget authority; unobligated balances; new loan guarantee commitments or limitations; new direct loan obligations, commitments, or limitations; direct spending authority; and obligation limitations; or “(B) with respect to budget year 1992, 1993, 1994, or 1995, new budget authority; unobligated balances; direct spending authority; and obligation limitations. “(7) The term ‘discretionary appropriations’ means budgetary resources (except to fund direct-spending programs) provided in appropriation Acts. “(8) The term ‘direct spending’ means— “(A) budget authority provided by law other than appropriation Acts; “(B) entitlement authority; and “(C) the food stamp program. “(9) The term ‘current’ means, with respect to OMB estimates included with a budget submission under section 1105(a) of title 31, United States Code, the estimates consistent with the economic and technical assumptions underlying that budget and with respect to estimates made after submission of the fiscal year 1992 budget that are not included with a budget submission, estimates consistent with the economic and technical assumptions underlying the most recently submitted President’s budget. “(10) The term ‘real economic growth’, with respect to any fiscal year, means the growth in the gross national product during such fiscal year, adjusted for inflation, consistent with Department of Commerce definitions. “(11) The term ‘account’ means an item for which appropriations are made in any appropriation Act and, for items not provided for in appropriation Acts, such term means an item for which there is a designated budget account identification code number in the President’s budget. “(12) The term ‘budget year means, with respect to a session of Congress, the fiscal year of the Government that starts on October 1 of the calendar year in which that session begins. “(13) The term ‘current year’ means, with respect to a budget year, the fiscal year that immediately precedes that budget year. “(14) The term ‘outyear’ means, with respect to a budget year, any of the fiscal years that follow the budget year through fiscal year 1995. “(15) The term ‘OMB’ means the Director of the Office of Management and Budget. “(16) The term ‘CBO’ means the Director of the Congressional Budget Office. “(17) For purposes of sections 252 and 253, legislation enacted during the second session of the One Hundred First Congress shall be deemed to have been enacted before the enactment of this Act. “(18) As used in this part, all references to entitlement authority shall include the list of mandatory appropriations included in the joint explanatory statement of managers accompanying the conference report on the Omnibus Budget Reconciliation Act of 1990. “(19) The term ‘deposit insurance’ refers to the expenses of the Federal Deposit Insurance Corporation and the funds it incorporates, the Resolution Trust Corporation, the National Credit Union Administration and the funds it incorporates, the Office of Thrift Supervision, the Comptroller of the Currency Assessment Fund, and the RTC Office of Inspector General. “(20) The term ‘composite outlay rate’ means the percent of new budget authority that is converted to outlays in the fiscal year for which the budget authority is provided and subsequent fiscal years, as follows: “(A) For the international category, 46 percent for the first year, 20 percent for the second year, 16 percent for the third year, and 8 percent for the fourth year. “(B) For the domestic category, 53 percent for the first year, 31 percent for the second year, 12 percent for the third year, and 2 percent for the fourth year. “SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS. “(a) Fiscal Years 1991–1995 Enforcement.— “(1) Sequestration.— Within 15 calendar days after Congress adjourns to end a session and on the same day as a sequestration (if any) under section 252 and section 253, there shall be a sequestration to eliminate a budget-year breach, if any, within any category. “(2) Eliminating a breach.— Each non-exempt account within a category shall be reduced by a dollar amount calculated by multiplying the baseline level of sequestrable budgetary resources in that account at that time by the uniform percentage necessary to eliminate a breach within that category; except that the health programs set forth in section 256(e) shall not be reduced by more than 2 percent and the uniform percent applicable to all other programs under this paragraph shall be increased (if necessary) to a level sufficient to eliminate that breach. If, within a category, the discretionary spending limits for both new budget authority and outlays are breached, the uniform percentage shall be calculated by— “(A) first, calculating the uniform percentage necessary to eliminate the breach in new budget authority, and “(B) second, if any breach in outlays remains, increasing the uniform percentage to a level sufficient to eliminate that breach. “(3) Military personnel.— If the President uses the authority to exempt any military personnel from sequestration under section 255(h), each account within subfunctional category 051 (other than those military personnel accounts for which the authority provided under section 255(h) has been exercised) shall be further reduced by a dollar amount calculated by multiplying the enacted level of non-exempt budgetary re-sources in that account at that time by the uniform percentage necessary to offset the total dollar amount by which outlays are not reduced in military personnel accounts by reason of the use of such authority. “(4) Part-year appropriations.— If, on the date specified in paragraph (1), there is in effect an Act making or continuing appropriations for part of a fiscal year for any budget account, then the dollar sequestration calculated for that account under paragraphs (2) and (3) shall be subtracted from— “(A) the annualized amount otherwise available by law in that account under that or a subsequent part-year appropriation; and “(B) when a full-year appropriation for that account is enacted, from the amount otherwise provided by the full-year appropriation. “(5) Look-back.— If, after June 30, an appropriation for the fiscal year in progress is enacted that causes a breach within a category for that year (after taking into account any sequestration of amounts within that category), the discretionary spending limits for that category for the next fiscal year shall be reduced by the amount or amounts of that breach. “(6) Within-Session sequestration.— If an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach within a category for that year (after taking into account any prior sequestration of amounts within that category), 15 days later there shall be a sequestration to eliminate that breach within that category following the procedures set forth in paragraphs (2) through (4). “(7) OMB estimates.— As soon as practicable after Congress completes action on any discretionary appropriation, CBO, after consultation with the Committees on the Budget of the House of Representatives and the Senate, shall provide OMB with an estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation. Within 5 calendar days after the enactment of any discretionary appropriation, OMB shall transmit a report to the House of Representatives and to the Senate containing the CBO estimate of that legislation, an OMB estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that legislation, and an explanation of any difference between the two estimates. For purposes of this paragraph, amounts provided by annual appropriations shall include any new budget authority and outlays for those years in accounts for which funding is provided in that legislation that result from previously enacted legislation. Those OMB estimates shall be made using current economic and technical assumptions. OMB shall use the OMB estimates transmitted to the Congress under this paragraph for the purposes of this subsection. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House and Senate Committees on the Budget, CBO, and OMB. “(b) Adjustments to Discretionary Spending Limits.— (1) When the President submits the budget under section 1105(a) of title 31, United States Code, for budget year 1992, 1993, 1994, or 1995 (except as otherwise indicated), OMB shall calculate (in the order set forth below), and the budget shall include, adjustments to discretionary spending limits (and those limits as cumulatively adjusted) for the budget year and each outyear through 1995 to reflect the following: “(A) Changes in concepts and definitions.— The adjustments produced by the amendments made by title XIII of the Omnibus Budget Reconciliation Act of 1990 or by any other changes in concepts and definitions shall equal the baseline levels of new budget authority and outlays using up-to-date concepts and definitions minus those levels using the concepts and definitions in effect before such changes. Such other changes in concepts and definitions may only be made in consultation with the Committees on Appropriations, the Budget, Government Operations, and Governmental Affairs of the House of Representatives and Senate. “(B) Changes in inflation.— (i) For a budget submitted for budget year 1992, 1993, 1994, or 1995, the adjustments produced by changes in inflation shall equal the levels of discretionary new budget authority and outlays in the baseline (calculated using current estimates) subtracted from those levels in that baseline recalculated with the baseline inflators for the budget year only, multiplied by the inflation adjustment factor computed under clause (ii). “(ii) For a budget year the inflation adjustment factor shall equal the ratio between the level of year-over-year inflation measured for the fiscal year most recently completed and the applicable estimated level for that year set forth below: “For 1990,1.041 “For 1991,1.052 “For 1992,1.041 “For 1993, 1.033 Inflation shall be measured by the average of the estimated gross national product implicit price deflator index for a fiscal year divided by the average index for the prior fiscal year. “(C) Credit reestimates.— For a budget submitted for fiscal year 1993 or 1994, the adjustments produced by reestimates to costs of Federal credit programs shall be, for any such program, a current estimate of new budget authority and outlays associated with a baseline projection of the prior year’s gross loan level for that program minus the baseline projection of the prior year’s new budget authority and associated outlays for that program. “(2) When OMB submits a sequestration report under section 254(g) or (h) for fiscal year 1991, 1992, 1993, 1994, or 1995 (except as otherwise indicated), OMB shall calculate (in the order set forth below), and the sequestration report, and subsequent budgets submitted by the President under section 1105(a) of title 31, United States Code, shall include, adjustments to discretionary spending limits (and those limits as adjusted) for the fiscal year and each succeeding year through 1995, as follows: “(A) IRS funding.— To the extent that appropriations are enacted that provide additional new budget authority or result in additional outlays (as compared with the CBO baseline constructed in June 1990) for the Internal Revenue Service compliance initiative in any fiscal year, the adjustments for that year shall be those amounts, but shall not exceed the amounts set forth below— “(i) for fiscal year 1991, $191,000,000 in new budget authority and $183,000,000 in outlays; “(ii) for fiscal year 1992, $172,000,000 in new budget authority and $169,000,000 in outlays; “(iii) for fiscal year 1993, $183,000,000 in new budget authority and $179,000,000 in outlays; “(iv) for fiscal year 1994, $187,000,000 in new budget authority and $183,000,000 in outlays; and “(v) for fiscal year 1995, $188,000,000 in new budget authority and $184,000,000 in outlays; and the prior-year outlays resulting from these appropriations of budget authority. “(B) Debt forgiveness.— If, in calendar year 1990 or 1991, an appropriation is enacted that forgives the Arab Republic of Egypt’s foreign military sales indebtedness to the United States and any part of the Government of Poland’s indebtedness to the United States, the adjustment shall be the estimated costs (in new budget authority and outlays, in all years) of that forgiveness. “(C) IMF funding.— If, in fiscal year 1991, 1992, 1993, 1994, or 1995 an appropriation is enacted to provide to the International Monetary Fund the dollar equivalent, in terms of Special Drawing Rights, of the increase in the United States quota as part of the International Monetary Fund Ninth General Review of Quotas, the adjustment shall be the amount provided by that appropriation. “(D) Emergency appropriations.— (i) If, for fiscal year 1991, 1992, 1993, 1994, or 1995, appropriations for discretionary accounts are enacted that the President designates as emergency requirements and that the Congress so designates in statute, the adjustment shall be the total of such appropriations in discretionary accounts designated as emergency requirements and the outlays flowing in all years from such appropriations. “(ii) The costs for operation Desert Shield are to be treated as emergency funding requirements not subject to the defense spending limits. Funding for Desert Shield will be provided through the normal legislative process. Desert Shield costs should be accommodated through Allied burden-sharing, subsequent appropriation Acts, and if the President so chooses, through offsets within other defense accounts. Emergency Desert Shield costs mean those incremental costs associated with the increase in operations in the Middle East and do not include costs that would be experienced by the Department of Defense as part of its normal operations absent Operation Desert Shield. “(E) Special allowance for discretionary new budget authority.— (i) For each of fiscal years 1992 and 1993, the adjustment for the domestic category in each year shall be an amount equal to 0.1 percent of the sum of the adjusted discretionary spending limits on new budget authority for ail categories for fiscal years 1991, 1992, and 1993 (cumulatively), together with outlays associated therewith (calculated at the composite outlay rate for the domestic category); “(ii) for each of fiscal years 1992 and 1993, the adjustment for the international category in each year shall be an amount equal to 0.079 percent of the sum of the adjusted discretionary spending limits on new budget authority for all categories for fiscal years 1991, 1992, and 1993 (cumulatively), together with outlays associated therewith (calculated at the composite outlay rate for the international category); and “(iii) if, for fiscal years 1992 and 1993, the amount of new budget authority provided in appropriation Acts exceeds the discretionary spending limit on new budget authority for any category due to technical estimates made by the Director of the Office of Management and Budget, the adjustment is the amount of the excess, but not to exceed an amount (for 1992 and 1993 together) equal to 0.042 percent of the sum of the adjusted discretionary limits on new budget authority for all categories for fiscal years 1991, 1992, and 1993 (cumulatively). “(F) Special outlay allowance.— If in any fiscal year out-lays for a category exceed the discretionary spending limit for that category but new budget authority does not exceed its limit for that category (after application of the first step of a sequestration described in subsection (a)(2), if necessary), the adjustment in outlays is the amount of the excess, but not to exceed $2,500,000,000 in the defense category, $1,500,000,000 in the international category, or $2,500,000,000 in the domestic category (as applicable) in fiscal year 1991, 1992, or 1993, and not to exceed $6,500,000,000 in fiscal year 1994 or 1995 less any of the outlay adjustments made under subparagraph (E) for a category for a fiscal year. “SEC. 252. ENFORCING PAY-AS-YOU-GO. “(a) Fiscal Years 1992–1995 Enforcement.— The purpose of this section is to assure that any legislation (enacted after the date of enactment of this section) affecting direct spending or receipts that increases the deficit in any fiscal year covered by this Act will trigger an offsetting sequestration. “(b) Sequestration; Look-Back.— Within 15 calendar days after Congress adjourns to end a session (other than of the One Hundred First Congress) and on the same day as a sequestration (if any) under section 251 and section 253, there shall be a sequestration to offset the amount of any net deficit increase in that fiscal year and the prior fiscal year caused by all direct spending and receipts legislation enacted after the date of enactment of this section (after adjusting for any prior sequestration as provided by paragraph (2)). OMB shall calculate the amount of deficit increase, if any, in those fiscal years by adding— “(1) all applicable estimates of direct spending and receipts legislation transmitted under subsection (d) applicable to those fiscal years, other than any amounts included in such estimates resulting from— “(A) full funding of, and continuation of, the deposit insurance guarantee commitment in effect on the date of enactment of this section, and “(B) emergency provisions as designated under subsection (e); and “(2) the estimated amount of savings in direct spending programs applicable to those fiscal years resulting from the prior year’s sequestration under this section or section 253, if any (except for any amounts sequestered as a result of a net deficit increase in the fiscal year immediately preceding the prior fiscal year), as published in OMB’s end-of-session sequestration report for that prior year. “(c) Eliminating a Deficit Increase.— (1) The amount required to be sequestered in a fiscal year under subsection (b) shall be obtained from non-exempt direct spending accounts from actions taken in the following order: “(A) First.— All reductions in automatic spending increases specified in section 256(a) shall be made. “(B) Second.— If additional reductions in direct spending accounts are required to be made, the maximum reductions permissible under sections 256(b) (guaranteed student loans) and 256(c) (foster care and adoption assistance) shall be made. “(C) Third.— (i) If additional reductions in direct spending accounts are required to be made, each remaining non-exempt direct spending account shall be reduced by the uniform percentage necessary to make the reductions in direct spending required by paragraph (1); except that the medicare programs specified in section 256(d) shall not be reduced by more than 4 percent and the uniform percentage applicable to all other direct spending programs under this paragraph shall be increased (if necessary) to a level sufficient to achieve the required reduction in direct spending. “(ii) For purposes of determining reductions under clause (i), outlay reductions (as a result of sequestration of Commodity Credit Corporation commodity price support contracts in the fiscal year of a sequestration) that would occur in the following fiscal year shall be credited as outlay reductions in the fiscal year of the sequestration. “(2) For purposes of this subsection, accounts shall be assumed to be at the level in the baseline. “(d) OMB Estimates.— As soon as practicable after Congress completes action on any direct spending or receipts legislation enacted after the date of enactment of this section, after consultation with the Committees on the Budget of the House of Representatives and the Senate, CBO shall provide OMB with an estimate of the amount of change in outlays or receipts, as the case may be, in each fiscal year through fiscal year 1995 resulting from that legislation. Within 5 calendar days after the enactment of any direct spending or receipts legislation enacted after the date of enactment of this section, OMB shall transmit a report to the House of Representatives and to the Senate containing such CBO estimate of that legislation, an OMB estimate of the amount of change in outlays or receipts, as the case may be, in each fiscal year through fiscal year 1995 resulting from that legislation, and an explanation of any difference between the two estimates. Those CMB estimates shall be made using current economic and technical assumptions. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the House and Senate Committees on the Budget, CBO, and OMB. “(e) Emergency Legislation.— If, for fiscal year 1991, 1992, 1993, 1994, or 1995, a provision of direct spending or receipts legislation is enacted that the President designates as an emergency requirement and that the Congress so designates in statute, the amounts of new budget authority, outlays, and receipts in all fiscal years through 1995 resulting from that provision shall be designated as an emergency requirement in the reports required under subsection (d). “SEC. 253. ENFORCING DEFICIT TARGETS. “(a) Sequestration.— Within 15 calendar days after Congress adjourns to end a session (other than of the One Hundred First Congress) and on the same day as a sequestration (if any) under section 251 and section 252, but after any sequestration required by section 251 (enforcing discretionary spending limits) or section 252 (enforcing pay-as-you-go), there shall be a sequestration to eliminate the excess deficit (if any remains) if it exceeds the margin. “(b) Excess Deficit; Margin.— The excess deficit is, if greater than zero, the estimated deficit for the budget year, minus— “(1) the maximum deficit amount for that year; “(2) the amounts for that year designated as emergency direct spending or receipts legislation under section 252(e); and “(3) for any fiscal year in which there is not a full adjustment for technical and economic reestimates, the deposit insurance reestimate for that year, if any, calculated under subsection (h). The ‘margin’ for fiscal year 1992 or 1993 is zero and for fiscal year 1994 or 1995 is $15,000,000,000. “(c) Dividing the Sequestration.— To eliminate the excess deficit in a budget year, half of the required outlay reductions shall be obtained from non-exempt defense accounts (accounts designated as function 050 in the President’s fiscal year 1991 budget submission) and half from non-exempt, non-defense accounts (all other non-exempt accounts). “(d) Defense.— Each non-exempt defense account shall be reduced by a dollar amount calculated by multiplying the level of sequestrable budgetary resources in that account at that time by the uniform percentage necessary to carry out subsection (c), except that, if any military personnel are exempt, adjustments shall be made under the procedure set forth in section 251(a)(3). “(e) Non-Defense.— Actions to reduce non-defense accounts shall be taken in the following order: “(1) First.— All reductions in automatic spending increases under section 256(a) shall be made. “(2) Second.— If additional reductions in non-defense accounts are required to be made, the maximum reduction permissible under sections 256(b) (guaranteed student loans) and 256(c) (foster care and adoption assistance) shall be made. “(3) Third.— (A) If additional reductions in non-defense accounts are required to be made, each remaining non-exempt, non-defense account shall be reduced by the uniform percentage necessary to make the reductions in non-defense outlays required by subsection (c), except that— “(i) the medicare program specified in section 256(d) shall not be reduced by more than 2 percent in total including any reduction of less than 2 percent made under section 252 or, if it has been reduced by 2 percent or more under section 252, it may not be further reduced under this section; and “(ii) the health programs set forth in section 256(e) shall not be reduced by more than 2 percent in total (including any reduction made under section 251), and the uniform percent applicable to all other programs under this subsection shall be increased (if necessary) to a level sufficient to achieve the required reduction in non-defense outlays. “(B) For purposes of determining reductions under subparagraph (A), outlay reduction (as a result of sequestration of Commodity Credit Corporation commodity price support contracts in the fiscal year of a sequestration) that would occur in the following fiscal year shall be credited as outlay reductions in the fiscal year of the sequestration, “(f) Baseline Assumptions; Part-Year Appropriations.— “(1) Budget assumptions.— For purposes of subsections (b), (c), (d), and (e), accounts shall be assumed to be at the level in the baseline minus any reductions required to be made under sections 251 and 252. “(2) Part-year appropriations.— If, on the date specified in subsection (a), there is in effect an Act making or continuing appropriations for part of a fiscal year for any non-exempt budget account, then the dollar sequestration calculated for that account under subsection (d) or (e), as applicable, shall be subtracted from— “(A) the annualized amount otherwise available by law in that account under that or a subsequent part-year appropriation; and “(B) when a full-year appropriation for that account is enacted, from the amount otherwise provided by the full-year appropriation; except that the amount to be sequestered from that account shall be reduced (but not below zero) by the savings achieved by that appropriation when the enacted amount is less than the baseline for that account. “(g) Adjustments to Maximum Deficit Amounts.— “(1) Adjustments.— “(A) When the President submits the budget for fiscal year 1992, the maximum deficit amounts for fiscal years 1992, 1993, 1994, and 1995 shall be adjusted to reflect up-to-date reestimates of economic and technical assumptions and any changes in concepts or definitions. When the President submits the budget for fiscal year 1993, the maximum deficit amounts for fiscal years 1993, 1994, and 1995 shall be further adjusted to reflect up-to-date reestimates of economic and technical assumptions and any changes in concepts or definitions. “(B) When submitting the budget for fiscal year 1994, the President may choose to adjust the maximum deficit amounts for fiscal years 1994 and 1995 to reflect up-to-date reestimates of economic and technical assumptions. If the President chooses to adjust the maximum deficit amount when submitting the fiscal year 1994 budget, the President may choose to invoke the same adjustment procedure when submitting the budget for fiscal year 1995. In each case, the President must choose between making no adjustment or the full adjustment described in paragraph (2). If the President chooses to make that full adjustment, then those procedures for adjusting discretionary spending limits described in sections 251(b)(l)(C) and 251(b)(2)(E), otherwise applicable through fiscal year 1993 or 1994 (as the case may be), shall be deemed to apply for fiscal year 1994 (and 1995 if applicable). “(C) When the budget for fiscal year 1994 or 1995 is submitted and the sequestration reports for those years under section 254 are made (as applicable), if the President does not choose to make the adjustments set forth in subparagraph (B), the maximum deficit amount for that fiscal year shall be adjusted by the amount of the adjustment to discretionary spending limits first applicable for that year (if any) under section 251(b). “(D) For each fiscal year the adjustments required to be made with the submission of the President’s budget for that year shall also be made when OMB submits the sequestration update report and the final sequestration report for that year, but OMB shall continue to use the economic and technical assumptions in the President’s budget for that year. Each adjustment shall be made by increasing or decreasing the maximum deficit amounts set forth in section 601 of the Congressional Budget Act of 1974. “(2) Calculations of adjustments.— The required increase or decrease shall be calculated as follows: “(A) The baseline deficit or surplus shall be calculated using up-to-date economic and technical assumptions, using up-to-date concepts and definitions, and, in lieu of the baseline levels of discretionary appropriations, using the discretionary spending limits set forth in section 601 of the Congressional Budget Act of 1974 as adjusted under section 251. “(B) The net deficit increase or decrease caused by all direct spending and receipts legislation enacted after the date of enactment of this section (after adjusting for any sequestration of direct spending accounts) shall be calculated for each fiscal year by adding— “(i) the estimates of direct spending and receipts legislation transmitted under section 252(d) applicable to each such fiscal year; and “(ii) the estimated amount of savings in direct spending programs applicable to each such fiscal year resulting from the prior year’s sequestration under this section or section 252 of direct spending, if any, as contained in OMB’s final sequestration report for that year. “(C) The amount calculated under subparagraph (B) shall be subtracted from the amount calculated under subparagraph (A). “(D) The maximum deficit amount set forth in section 601 of the Congressional Budget Act of 1974 shall be subtracted from the amount calculated under subparagraph (O- “(E) The amount calculated under subparagraph (D) shall be the amount of the adjustment required by paragraph (1). “(h) Treatment of Deposit Insurance.— “(1) Initial estimates.— The initial estimates of the net costs of federal deposit insurance for fiscal year 1994 and fiscal year 1995 (assuming full funding of, and continuation of, the deposit insurance guarantee commitment in effect on the date of the submission of the budget for fiscal year 1993) shall be set forth in that budget. “(2) Reestimates.— For fiscal year 1994 and fiscal year 1995, the amount of the reestimate of deposit insurance costs shall be calculated by subtracting the amount set forth under paragraph (1) for that year from the current estimate of deposit insurance costs (but assuming full funding of, and continuation of, the deposit insurance guarantee commitment in effect on the date of submission of the budget for fiscal year 1993). “SEC. 254. REPORTS AND ORDERS. “(a) Timetable.— The timetable with respect to this part for any budget year is as follows: “Date: Action to be completed:  January 21  Notification regarding optional adjustment of maximum deficit amount  5 days before the President’s budget submission  CBO sequestration preview report  The President’s budget submission  OMB sequestration preview report  August 10  Notification regarding military personnel  August 15  CBO sequestration update report  August 20  OMB sequestration update report  10 days after end of session  CBO final sequestration report  15 days after end of session  OMB final sequestration report; Presidential order  30 days later  GAO compliance report “(b) Submission and Availability of Reports.— Each report required by this section shall be submitted, in the case of CBO, to the House of Representatives, the Senate and OMB and, in the case of 0MB, to the House of Representatives, the Senate, and the President on the day it is issued. On the following day a notice of the report shall be printed in the Federal Register. “(c) Optional Adjustment of Maximum Deficit Amounts.— With respect to budget year 1994 or 1995, on the date specified in subsection (a) the President shall notify the House of Representatives and the Senate of his decision regarding the optional adjustment of the maximum deficit amount (as allowed under section 253{g)(l)(B)). “(d) Sequestration Preview Reports.— “(1) Reporting requirement.— On the dates specified in subsection (a), OMB and CBO shall issue a preview report regarding discretionary, pay-as-you-go, and deficit sequestration based on laws enacted through those dates, “(2) Discretionary sequestration report.— The preview reports shall set forth estimates for the current year and each subsequent year through 1995 of the applicable discretionary spending limits for each category and an explanation of any adjustments in such limits under section 251. “(3) Pay-as-you-go sequestration reports.— The preview re-ports shall set forth, for the current year and the budget year, estimates for each of the following: “(A) The amount of net deficit increase or decrease, if any, calculated under subsection 252(b). “(B) A list identifying each law enacted and sequestration implemented after the date of enactment of this section included in the calculation of the amount of deficit increase or decrease and specifying the budgetary effect of each such law. “(C) The sequestration percentage or (if the required sequestration percentage is greater than the maximum allowable percentage for medicare) percentages necessary to eliminate a deficit increase under section 252(c). “(4) Deficit sequestration reports.— The preview reports shall set forth for the budget year estimates for each of the following: “(A) The maximum deficit amount, the estimated deficit calculated under section 253(b), the excess deficit, and the margin. “(B) The amount of reductions required under section 252, the excess deficit remaining after those reductions have been made, and the amount of reductions required from defense accounts and the reductions required from non-defense accounts. “(C) The sequestration percentage necessary to achieve the required reduction in defense accounts under section 253(d). “(D) The reductions required under sections 253(e)(l) and 253(e)(2). “(E) The sequestration percentage necessary to achieve the required reduction in non-defense accounts under section 253(e)(3). The CBO report need not set forth the items other than the maximum deficit amount for fiscal year 1992, 1993, or any fiscal year for which the President notifies the House of Representatives and the Senate that he will adjust the maximum deficit amount under the option under section 253(g)(l)(B). “(5) Explanation of differences.— The OMB reports shall explain the differences between OMB and CBO estimates for each item set forth in this subsection. “(e) Notification Regarding Military Personnel.— On or before the date specified in subsection (a), the President shall notify the Congress of the manner in which he intends to exercise flexibility with respect to military personnel accounts under section 255(h). “(f) Sequestration Update Reports.— On the dates specified in subsection (a), OMB and CBO shall issue a sequestration update report, reflecting laws enacted through those dates, containing all of the information required in the sequestration preview reports. “(g) Final Sequestration Reports.— “(1) Reporting requirement.— On the dates specified in subsection (a), OMB and CBO shall issue a final sequestration report, updated to reflect laws enacted through those dates. “(2) Discretionary sequestration reports.— The final re-ports shall set forth estimates for each of the following: “(A) For the current year and each subsequent year through 1995 the applicable discretionary spending limits for each category and an explanation of any adjustments in such limits under section 251. “(B) For the current year and the budget year the estimated new budget authority and outlays for each category and the breach, if any, in each category. “(C) For each category for which a sequestration is required, the sequestration percentages necessary to achieve the required reduction. “(D) 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 resources to be sequestered and resulting outlay reductions. “(3) Pay-as-you-go and deficit sequestration reports.— The final reports shall contain all the information required in the pay-as-you-go and deficit 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 resources to be sequestered and resulting outlay reductions. The reports shall also contain estimates of the effects on outlays of the sequestration in each outyear through 1995 for direct spending programs. “(4) Explanation of differences.— The 0MB report shall explain any differences between 0MB and CBO estimates of the amount of any net deficit change calculated under subsection 252(b), any excess deficit, any breach, and any required sequestration percentage. The 0MB report shall also explain differences in the amount of sequesterable resources for any budget account to be reduced if such difference is greater than $5,000,000. “(5) Presidential order.— On the date specified in subsection (a), if in its final sequestration report 0MB estimates that any sequestration is required, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance. “(h) Within-Session Sequestration Reports and Order.— If an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach, 10 days later CBO shall issue a report containing the information required in paragraph (g)(2). Fifteen days after enactment, OMB shall issue a report containing the information required in paragraphs (g)(2) and (g)(4). On the same day as the OMB report, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance. “(i) GAO Compliance Report.— On the date specified in subsection (a), the Comptroller General shall submit to the Congress and the President a report on— “(1) the extent to which each order issued by the President under this section complies with all of the requirements contained in this part, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not; and “(2) the extent to which each report issued by OMB or CBO under this section complies with all of the requirements contained in this part, either certifying that the report fully and accurately complies with such requirements or indicating the respects in which it does not. “(j) Low-Growth Report.— At any time, CBO shall notify the Congress if— “(1) during the period consisting of the quarter during which such notification is given, the quarter preceding such notification, and the 4 quarters following such notification, CBO or OMB has determined that real economic growth is projected or estimated to be less than zero with respect to each of any 2 consecutive quarters within such period; or “(2) 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 one percent. “(k) Economic and Technical Assumptions.— In all reports required by this section, OMB shall use the same economic and technical assumptions as used in the most recent budget submitted by the President under section 1105(a) of title 31, United States Code.”.

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