SEC. 10114. Adjustments.
(a) In General.—Title III of the Congressional Budget Act of 1974 is amended by adding at the end the following new section:
“ Sec. 314. (a ) Adjustments.—
“(1) In general.—After the reporting of a bill or joint resolution, the offering of an amendment thereto, or the submission of a conference report thereon, the chairman of the Committee on the Budget of the House of Representatives or the Senate shall make the adjustments set forth in paragraph (2) for the amount of new budget authority in that measure (if that measure meets the requirements set forth in subsection (b)) and the outlays flowing from that budget authority.
“(2) Matters to be adjusted.—The adjustments referred to in paragraph (1) are to be made to—
“(A) the discretionary spending limits, if any, set forth in the appropriate concurrent resolution on the budget;
“(B) the allocations made pursuant to the appropriate concurrent resolution on the budget pursuant to section 302(a); and
“(C) the budgetary aggregates as set forth in the appropriate concurrent resolution on the budget.
“(b) Amounts of Adjustments.—The adjustment referred to in subsection (a) shall be—
“(1) an amount provided and 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;
“(2) an amount provided for continuing disability reviews subject to the limitations in section 251(b)(2)(C) of that Act;
“(3) for any fiscal year through 2002, an amount provided that is the dollar equivalent of the Special Drawing Rights with respect to—
“(A) an increase in the United States quota as part of the International Monetary Fund Eleventh General Review of Quotas (United States Quota); or
“(B) any increase in the maximum amount available to the Secretary of the Treasury pursuant to section 17 of the Bretton Woods Agreements Act, as amended from time to time (New Arrangements to Borrow);
“(4) an amount provided not to exceed $1,884,000,000 for the period of fiscal years 1998 through 2000 for arrearages for international organizations, international peacekeeping, and multilateral development banks; or
“(5) an amount provided for an earned income tax credit compliance initiative but not to exceed—
“(A) with respect to fiscal year 1998, $138,000,000 in new budget authority;
“(B) with respect to fiscal year 1999, $143,000,000 in new budget authority;
“(C) with respect to fiscal year 2000, $144,000,000 in new budget authority;
“(D) with respect to fiscal year 2001, $145,000,000 in new budget authority; and
“(E) with respect to fiscal year 2002, $146,000,000 in new budget authority.
“(c) Application of Adjustments.—The adjustments made pursuant to subsection (a) for legislation shall—
“(1) apply while that legislation is under consideration;
“(2) take effect upon the enactment of that legislation; and
“(3) be published in the Congressional Record as soon as practicable.
“(d) Reporting Revised Suballocations.—Following any adjustment made under subsection (a), the Committees on Appropriations of the Senate and the House of Representatives may report appropriately revised suballocations under section 302(b) to carry out this section.
“(e) Definitions For CDRs.—As used in subsection (b)(2)—
“(1) the term ‘continuing disability reviews’ shall have the same meaning as provided in section 251(b)(2)(C)(ii) of the Balanced Budget and Emergency Deficit Control Act of 1985; and
“(2) the term ‘new budget authority’ shall have the same meaning as the term ‘additional new budget authority’ and the term ‘outlays’ shall have the same meaning as ‘additional outlays’ in that section.”.
(b) Table of Contents.—The table of contents set forth in section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by adding after the item relating to section 313 the following new item:
“Sec. 314. Adjustments.”.
This section was not classified to the U.S. Code.
EXPLANATORY STATEMENT OF MANAGERS
(H. CONF. REPT. 105-217)
The joint explanatory statement of managers for the conference committee on H.R. 2014 summarized this section as follows:
15. Addition of a new section ‘314’ of the Congressional Budget Act.
HOUSE BILL (SECTION 11113)
Adds a new section 314 to the Budget Act containing some of the elements in the now-eliminated title VI. Most importantly, section 314 provides a procedure for adjusting the appropriate budget resolution levels for certain legislation for which similar adjustments are provided in the statutory discretionary spending levels under section 11203 of this title. The adjustments are for continuing disability reviews, the IMF1, arrearages and emergencies.
In a change from current law, the appropriate spending levels are adjusted for legislation designating funding for emergencies instead of the previous practice of simply not counting such spending against the budget resolution’s levels.
In another change in allocation procedures for the House, the adjustments are made only for the consideration of the relevant legislation and do not become permanent until the legislation is actually enacted.
SENATE AMENDMENT (SECTION 1611)
The Senate amendment is the same as the House language with slight modifications.
CONFERENCE AGREEMENT (SECTION 10114)
The Conference agreement reflects the House bill with modifications. The conference agreement provides for a process for the Budget Committee Chairman to make adjustments to levels set forth in or pursuant to a budget resolution for emergency legislation, continuing disability reviews, an IMF allowance, an allowance for international arrearages, and earned income tax credit compliance. The purpose of these adjustments is to ensure that budgetary limits, are only adjusted for the legislation that meets the specific criteria spelled out in this section. This section sets out a process regarding discretionary spending limits that is similar to the process in section 251 of GRH.2
Subsection (a)(1) provides the general authority for the Budget Committee Chairman to make adjustments for legislation. Subsection (a)(2) provides the Chairman with the authority to revise the levels set forth by or pursuant to a budget resolution. Subsection (b) provides the criteria for legislation that qualified for the adjustments.
A bill, resolution, amendment or conference report must meet the specific terms spelled out in one of these paragraphs before the Chairman can make any adjustments pursuant to this section. Subsection (c) provides that the adjustments only apply while the legislation is under consideration and only take final effect upon the legislation’s enactment. The conferees intend that the adjustments only apply while the legislation that meets the terms of one of the paragraphs of subsection (b) is under consideration. In subsection (c), the reference to ‘legislation’ means a bill, joint resolution, amendment, motion or conference report. It is the Chairman’s responsibility to ensure these adjustments are only available for legislation that meets the terms of subsection (b). This could necessitate that the Chairman reverse the adjustments, particularly the aggregates, after the pending legislation is disposed of.
U.S. Congress, Joint Explanatory Statement on the Committee of Conference on the Balanced Budget Act of 1997; (Conference Report), Committee on the Budget, House of Representatives, 105th Congress, 1st Session, Washington D.C. 1997, pp. 993-994.
Congressional Research service report
CRS issued a report on the Budget Enforcement Act of 1997 (Pub. L. 105-33), including this description of this section:
Section 10114. Adjustments and Budget Committee Determinations. Section 10114 adds a new Section 314 to the CBA establishing a procedure for the adjustment by the chairmen of the Budget Committees of various budgetary levels, generally for FY1998-2002. The adjustments are made pursuant to the consideration of legislation in several different categories and are meant to parallel similar adjustments made automatically in the statutory discretionary spending limits.
The budgetary levels subject to adjustment are the discretionary spending limits and budgetary aggregates set forth in the most recent budget resolution, and the spending allocations to committees made thereunder. Adjustments may be triggered by legislation in the following five categories:
(1) measures containing designated emergency amounts of discretionary spending, direct spending, or revenues;
(2) measures funding continuing disability reviews;
(3) measures providing an allowance for the International Monetary Fund;
(4) measures funding arrearages for international organizations, international peacekeeping, and multilateral development banks (but only for the period covering FY1998-2000 and subject to a limit of $1.884 billion in budget authority); and
(5) measures providing funds for an earned income tax credit compliance initiative, subject to annual limits ranging from $138 million for FY1998 to $146 million for FY2002.
The adjustments made under this section apply while the legislation is being considered, but only take effect permanently when the legislation is enacted. The Appropriations Committees are authorized to report revised suballocations conforming to any adjustments that are made.
Section 10114 of the act in part replaces authority for certain adjustments that had been authorized in Section 606(d) and (e) of the CBA.
CRS – Budget Enforcement Act of 1997: Summary and Legislative History by Robert Keith (97-931 GOV) October 8, 1997, pp. 13-14.
LEGISLATIVE HISTORY NOTES
Pub. L. 105–33, title X, §10000, Nov. 5, 1990, 111 Stat. 688; (Budget Enforcement Act of 1997).