Budget Process Law Annotated (1993)

BUDGET CONTROL

[PAGE 837-842]
Executive Order 12858 of August 4, 19931970
Deficit Reduction Fund

By the authority vested in me as President of the United States by the Constitution and the laws of the United States of [p. 838] America, including sections 11041971 and 11051972 of title 31, United States Code, it is hereby ordered as follows:


1970. This order appears at 58 Fed. Reg. 42,185. For history of the order, see infra note 1984.

1971. See supra pp.786-787.

1972. See supra pp. 788-798.


Section 1. Purpose. It is essential to guarantee that the net deficit reduction achieved by the Omnibus Budget Reconciliation Act of 19931973 is dedicated exclusively to reducing the deficit.1974


1973. Pub. L 103-66, 107 Stat. 312 (1993).

1974. Section 3(6) of the Congressional Budget Act of 1974 defines “deficit” to mean “with respect to a fiscal year, the amount by which outlays exceeds receipts during that year.” See supra p. 16.


Sec. 2. Deficit Reduction Fund.

(a).1975 Establishment of the Fund. There is established a separate account in the Treasury, known as the Deficit Reduction Fund, which shall receive the net deficit reduction achieved by the Omnibus Budget Reconciliation Act of 19931976 as called for in subsection (b) of this order.

(b) Amounts in Fund. Beginning upon enactment of the Omnibus Budget Reconciliation Act of 1993,1977 the Deficit Reduction Fund shall receive any increases in total revenues resulting from enactment of such Act on a daily basis. In addition, on a daily basis, the Secretary of the Treasury shall enter into such account an amount equivalent to the net deficit reduction achieved as a result of all spending reductions resulting from such Act. The cumulative fiscal year amounts for the combination of all such revenue increases and spending [p. 839] reductions shall be equal to:

(1) for fiscal year 1994, $60,292,000,000;

(2) for fiscal year 1995, $70,437,000,000;

(3) for fiscal year 1996, $92,061,000,000;

(4) for fiscal year 1997, $125,881,000,000;

(5) for fiscal year 1998, $146,939,000,000.

Within 30 days of enactment of the Omnibus Budget Reconciliation Act of 1993,1978 the foregoing amounts may be adjusted by the Director of the Office of Management and Budget to reflect the final scoring of such Act.

(c) Status of Amounts in Fund. (i) The amounts in the Deficit Reduction Fund shall be used exclusively to redeem maturing debt obligations of the Treasury of the United States held by foreign governments in the amounts specified in subsection (b).

(ii) The amounts in the Deficit Reduction Fund as set forth in subsection (b) that result from increases in total revenues and spending reductions shall not be available for new spending or to finance measures that increase the deficit for purposes of budget enforcement procedures under the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901– 922).1979

(d) Effect on Other Funds. Establishment of and transfers [p. 840] to the Deficit Reduction Fund shall not affect trust fund transfers that may be authorized or required by provisions of the Omnibus Reconciliation Act of 19931980 or any other provision of law.


1975. This superfluous period appears in the original.

1976. Pub. L 103-66, 107 Stat. 312 (1993).

1977. Pub. L. 103-66, 107 Stat. 312 (1993), enacted August 10, 1993.

1978. Pub. L. 103-66, 107 Stat. 312 (1993), enacted August 10, 1993. The Order thus required action not later than September 9,1993.

1979. The order cites sections 251-274 of the Balanced Budget and Emergency Deficit Control Act of 1985, as codified in the United States Code. See supra pp. 475-689.

1980. The President meant the Omnibus Budget Reconciliation Act of 1993, Pub. L. 103-66, 107 Stat. 312 (1993).


Sec. 3. Requirement for the President To Report Annually on the Status of the Fund. The Director of the Office of Management and Budget shall include in the President’s Budget transmitted under section 1105 of title 31, United States Code,1981 information about the Deficit Reduction Fund, including a separate statement of amounts in and Federal debt redeemed by that Fund.


1981. See supra pp. 788-798.


Sec. 4. Implementation. The Secretary of the Treasury and the Director of the Office of Management and Budget shall each take such actions as may be necessary, within their respective authorities, promptly to carry out this order.


Sec. 5. Effective Date. This order shall take effect upon enactment of the Omnibus Budget Reconciliation Act of 1993.1982

William J. Clinton1983

THE WHITE HOUSE,

August 4, 1993.1984

[Note #1984 spans PP. 840-842.] 

1982. Pub. L. 103-66, 107 Stat. 312 (1993), enacted August 10, 1993.

1983. Signed.

1984. For the President’s remarks on signing this Executive order, see issue 31 of the Weekly Compilation of Presidential Documents.

[P. 841]

The Federal Register notes the following in the margin: “FR Doc. 93-19101 Filed 8-5-93; 10:30 am] Billing code 3195-01-P.”

This order draws heavily on the language of an amendment on the same subject offered by Senator Dennis DeConcini that failed to achieve the 60 votes it needed to overcome a point of order. See 139 Cong. Rec. S7915-17, S7923 (daily ed. June 24, 1993). For legislative history of the deficit reduction trust fund, see S. Con. Res. 48, 100th Cong., 1st Sess., § 5 (1987) (as reported by the Senate Budget Committee); S. Rept. 100-40, 100th Cong., 1st Sess. LVI-LVII, 17,288-89 (1987); 133 Cong. Rec. S5561, S5566, S5568, S5573, S5574, S5579-80 (daily ed. Apr. 28, 1987) (motion to recommit and amendments incorporating the language of S. Con. Res. 48); H. Con. Res. 93, 100th Cong, 1st Sess. § 7, 133 Cong. Rec. S6069, 86075 (daily ed. May 6, 1987) (as amended in the Senate); Concurrent Resolution on the Budget – Fiscal Year 1988, H. Con. Res. 93, 100th Cong., 1st Sess. § 6, 101 Stat. 1986, 2000-01 (1987); H. Rept. 100-76, 100th Cong., 1st Sess. 36 (1987) (joint statement of managers); S. 101, 101st Cong., 1st Sess. § 301, 135 Cong. Rec. S170, S425-29 (daily ed. Jan. 25,1989) (Sen. Terry Sanford’s bill incorporating a fund); S. Rpt. 101-427, 101st Cong., 1st Sess. 4-5, 11(1990) (on Sen. Sanford’s bill); S. 101, 102d Cong., 1st Sess., 137 Cong. Rec. 8437 (daily ed. Jan. 14, 1991) (same); 139 Cong. Rec. S3582-84 (daily ed. Mar. 24, 1993) (Sen. DeConcini’s budget resolution amendment calling for a fund);Concurrent Resolution Setting Forth the Congressional Budget for the United States Government for the fiscal Years 1994,1995, 1996,1997, and 1998, H. Con. Res. 64, 103d Cong., 1st Sess. § 13(c), 139 Cong. Rec. H1747, H1754 (daily ed. Mar. 31, 1993) (adopted); H. Res. 186, 103d Cong., 1st Sess., 139 Cong. Rec. H2952 (daily ed. May 27, 1993) (House rule providing for inclusion of language in H.R. 2264); H. Rept. 103-112 (Conference Report, pp. 3, 49-50) 103d Cong., 1st Sess. (1993) (the report to accompany H. Res. 186, publishing the language); 139 Cong. Rec.  H2952-70 (daily ed. May 27, 1993) (House debate on H. Res. 186); H.R. 2264, 103d Cong., 1st Sess. §15301, 139 Cong. Rec. H3029, H3199 (daily ed. May27, 1993) (as passed by the House of Representatives); H. Rept. 103-213 (Conf. Rept., pp. 936, 963-64), 103d Cong., 1st Sess. (1993) (joint statement of managers accompanying H.R. 2264, discussing the fund), reprinted in 139 Cong. Rec. H6036, H6044 (daily ed. Aug. 4,1993).

The joint statement of managers accompanying H.R. 2264, 103d Cong., 1st Sess. § 15301, 139 Cong. Rec. H5792 (daily ed. Aug. 4,1993), discusses the trust fund as follows:

Title XIV—Budget Process Provisions

Note that the House recedes to the Senate on all material related to the executive and congressional budget process. The House conferees agreed to recede based on their understanding that inclusion of that material would make the entire conference report subject to a point of order in the Senate under section 306 of the Congressional Budget Act of 1974 and thereby endanger final enactment of the reconciliation bill. Therefore, the conferees’ decisions should not be considered as necessarily judging the relative merits of the Senate and House positions.

[P. 842]

[…]

Deficit Reduction Trust Fund Provision

Current Law

Current law includes no analogous provision.

The House Bill

The House bill creates the Deficit Reduction Trust Fund, an account to identify the reduced outlays and increased receipts achieved through reconciliation. Under the requirements of reconciliation and the terms of the Trust Fund, the legislative savings could not be spent and are solely reserved for deficit reduction. The Deficit Reduction Trust Fund would provide a quantitative display of the level of deficit reduction achieved through the adoption of the President’s policies in reconciliation.

The Trust Fund would operate in the following manner: 1) an amount equal to the net deficit reduction estimated to result from reconciliation is transferred to the Trust Fund within 10 days of enactment; 2) amounts in the Trust Fund are unavailable for appropriation, obligation, transfer or expenditure, and may only be used to pay off maturing public debt obligations; 3) amounts in the Trust Fund are excluded from Pay-As-You-Go budget enforcement and cannot finance new spending or tax reductions; and 4) the President’s budget request is required to include a separate statement of funds held by the Trust Fund.

The Senate Bill

The Senate adopted no analogous provisions.

The Conference Agreement

The conference agreement does not include the House provisions. The House conferees agreed to recede to the Senate, based on their understanding that inclusion of the Deficit Reduction Trust Fund would make the entire conference report subject to a point of order in the Senate and thereby endanger final enactment of the reconciliation bill, and based on their further understanding that President Clinton has agreed to establish a Deficit Reduction Trust Fund by Executive Order.

 

COUNSEL NOTES

Reference information from the Federal Register:

Federal Register

Vol. 58, No. 150

Friday, August 6, 1993

Title 3

The President 

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