BCA 2011 (Contents)

Budget Control Act of 2011

Section 101

TITLE I—TEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER
SEC. 101. enforcing discretionary spending limits.

Section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended to read as follows:

‘‘sec. 251. enforcing discretionary spending limits.

“(a) Enforcement.—

“(1) Sequestration.—Within 15 calendar days after Congress adjourns to end a session 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 enacted level of sequestrable budgetary resources in that account at that time by the uniform percent-age necessary to eliminate a breach within that category.

“(3) Military personnel.—If the President uses the authority to exempt any personnel account from sequestration under section 255(f), each account within subfunctional category 051 (other than those military personnel accounts for which the authority provided under section 255(f) has been exercised) shall be further reduced by a dollar amount calculated by multiplying the enacted level of non-exempt budgetary resources 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 for that account.

“(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) Estimates.—

“(A) CBO 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.

“(B) OMB estimates and explanation of differences.—Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of 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 2 estimates. If during the preparation of the report OMB determines that there is a significant difference between OMB and CBO, OMB shall consult with the Committees on the Budget of the House of Representatives and the Senate regarding that difference and that consultation shall include, to the extent practicable, written communication to those committees that affords such committees the opportunity to comment before the issuance of the report.

“(C) Assumptions and guidelines.—OMB estimates under this paragraph shall be made using current economic and technical assumptions. OMB shall use the OMB estimates transmitted to the Congress under this paragraph. OMB and CBO shall prepare estimates under this paragraph in conformance with scorekeeping guidelines determined after consultation among the Committees on the Budget of the House of Representatives and the Senate, CBO, and OMB.

“(D) Annual appropriations.—For purposes of this paragraph, amounts provided by annual appropriations shall include any discretionary appropriations for the current year, if any, and the budget year in accounts for which funding is provided in that legislation that result from previously enacted legislation.

“(b) Adjustments To Discretionary Spending Limits.—

“(1) Concepts and definitions.—When the President submits the budget under section 1105 of title 31, United States Code, OMB shall calculate and the budget shall include adjustments to discretionary spending limits (and those limits as cumulatively adjusted) for the budget year and each outyear to reflect changes in concepts and definitions. Such changes 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 changes may only be made after consultation with the Committees on Appropriations and the Budget of the House of Representatives and the Senate, and that consultation shall include written communication to such committees that affords such committees the opportunity to comment before official action is taken with respect to such changes.

“(2) Sequestration reports.—When OMB submits a sequestration report under section 254(e), (f), or (g) for a fiscal year, OMB shall calculate, 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, as follows:

“(A) Emergency appropriations; overseas contingency operations/global war on terrorism.—If, for any fiscal year, appropriations for discretionary accounts are enacted that—

‘‘(i) the Congress designates as emergency requirements in statute on an account by account basis and the President subsequently so designates, or

‘‘(ii) the Congress designates for Overseas Contingency Operations/Global War on Terrorism in statute on an account by account basis and the President subsequently so designates,

the adjustment shall be the total of such appropriations in discretionary accounts designated as emergency requirements or for Overseas Contingency Operations/Global War on Terrorism, as applicable.

“(B) Continuing disability reviews and redeterminations.—(i) If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an amount for continuing disability reviews under titles II and XVI of the Social Security Act and for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, then the adjustments for that fiscal year shall be the additional new budget authority provided in that Act for such expenses for that fiscal year, but shall not exceed—

‘‘(I) for fiscal year 2012, $623,000,000 in additional new budget authority;

‘‘(II) for fiscal year 2013, $751,000,000 in additional new budget authority;

‘‘(III) for fiscal year 2014, $924,000,000 in additional new budget authority;

‘‘(IV) for fiscal year 2015, $1,123,000,000 in additional new budget authority;

‘‘(V) for fiscal year 2016, $1,166,000,000 in additional new budget authority;

‘‘(VI) for fiscal year 2017, $1,309,000,000 in additional new budget authority;

‘‘(VII) for fiscal year 2018, $1,309,000,000 in additional new budget authority;

‘‘(VIII) for fiscal year 2019, $1,309,000,000 in additional new budget authority;

‘‘(IX) for fiscal year 2020, $1,309,000,000 in additional new budget authority; and

‘‘(X) for fiscal year 2021, $1,309,000,000 in additional new budget authority.

‘‘(ii) As used in this subparagraph—

‘‘(I) the term ‘continuing disability reviews’ means continuing disability reviews under sections 221(i) and 1614(a)(4) of the Social Security Act;

‘‘(II) the term ‘redetermination’ means redetermination of eligibility under sections 1611(c)(1) and 1614(a)(3)(H) of the Social Security Act; and

‘‘(III) the term ‘additional new budget authority’ means the amount provided for a fiscal year, in excess of $273,000,000, in an appropriation Act and specified to pay for the costs of continuing disability reviews and redeterminations under the heading ‘Limitation on Administrative Expenses’ for the Social Security Administration.

“(C) Health care fraud and abuse control.—(i) If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an amount for the health care fraud abuse control program at the Department of Health and Human Services (75–8393–0–7–571), then the adjustments for that fiscal year shall be the amount of additional new budget authority provided in that Act for such program for that fiscal year, but shall not exceed—

‘‘(I) for fiscal year 2012, $270,000,000 in additional new budget authority;

‘‘(II) for fiscal year 2013, $299,000,000 in additional new budget authority;

‘‘(III) for fiscal year 2014, $329,000,000 in additional new budget authority;

‘‘(IV) for fiscal year 2015, $361,000,000 in additional new budget authority;

‘‘(V) for fiscal year 2016, $395,000,000 in additional new budget authority;

‘‘(VI) for fiscal year 2017, $414,000,000 in additional new budget authority;

‘‘(VII) for fiscal year 2018, $434,000,000 in additional new budget authority;

‘‘(VIII) for fiscal year 2019, $454,000,000 in additional new budget authority;

‘‘(IX) for fiscal year 2020, $475,000,000 in additional new budget authority; and

‘‘(X) for fiscal year 2021, $496,000,000 in additional new budget authority.

‘‘(ii) As used in this subparagraph, the term ‘additional new budget authority’ means the amount provided for a fiscal year, in excess of $311,000,000, in an appropriation Act and specified to pay for the costs of the health care fraud and abuse control program.

“(D) Disaster funding.—

‘‘(i) If, for fiscal years 2012 through 2021, appropriations for discretionary accounts are enacted that Congress designates as being for disaster relief in statute, the adjustment for a fiscal year shall be the total of such appropriations for the fiscal year in discretionary accounts designated as being for disaster relief, but not to exceed the total of—

‘‘(I) the average funding provided for disaster relief over the previous 10 years, excluding the highest and lowest years; and

‘‘(II) the amount, for years when the enacted new discretionary budget authority designated as being for disaster relief for the preceding fiscal year was less than the average as calculated in subclause (I) for that fiscal year, that is the difference between the enacted amount and the allowable adjustment as calculated in such subclause for that fiscal year.

‘‘(ii) OMB shall report to the Committees on Appropriations and Budget in each House the average calculated pursuant to clause (i)(II), not later than 30 days after the date of the enactment of the Budget Control Act of 2011.

‘‘(iii) For the purposes of this subparagraph, the term ‘disaster relief’ means activities carried out pursuant to a determination under section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).

‘‘(iv) Appropriations considered disaster relief under this subparagraph in a fiscal year shall not be eligible for adjustments under subparagraph (A) for the fiscal year.

“(c) Discretionary Spending Limit.—As used in this part, the term ‘discretionary spending limit’ means—

‘‘(1) with respect to fiscal year 2012—

‘‘(A) for the security category, $684,000,000,000 in new budget authority; and

‘‘(B) for the nonsecurity category, $359,000,000,000 in new budget authority;

‘‘(2) with respect to fiscal year 2013—

‘‘(A) for the security category, $686,000,000,000 in new budget authority; and

‘‘(B) for the nonsecurity category, $361,000,000,000 in new budget authority;

‘‘(3) with respect to fiscal year 2014, for the discretionary category, $1,066,000,000,000 in new budget authority;

‘‘(4) with respect to fiscal year 2015, for the discretionary category, $1,086,000,000,000 in new budget authority;

‘‘(5) with respect to fiscal year 2016, for the discretionary category, $1,107,000,000,000 in new budget authority;

‘‘(6) with respect to fiscal year 2017, for the discretionary category, $1,131,000,000,000 in new budget authority;

‘‘(7) with respect to fiscal year 2018, for the discretionary category, $1,156,000,000,000 in new budget authority;

‘‘(8) with respect to fiscal year 2019, for the discretionary category, $1,182,000,000,000 in new budget authority;

‘‘(9) with respect to fiscal year 2020, for the discretionary category, $1,208,000,000,000 in new budget authority; and

‘‘(10) with respect to fiscal year 2021, for the discretionary category, $1,234,000,000,000 in new budget authority;

as adjusted in strict conformance with subsection (b).’’.

 

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COUNSEL NOTES
Public Law

Budget Control Act of 2011, Pub. L. 112–25, 125 Stat. 240, Aug. 2, 2011, S. 365.

Classification to the U.S. Code

This section is not separately classified to the U.S. Code. 

Discretionary Spending Limits Amended

The Budget Control Act of 2011 set statutory discretionary spending limits for fiscal years 2012 through 2021. They were further divided between “security” and “nonsecurity” for fiscal years  2012 and 2013. For fiscal year 2014 and forward only a single “discretionary category” existed. for these caps to remain in force, though, the $1.2 trillion in deficit reduction proposed by the Joint Committee on Deficit Reduction, created by the BCA 2011, would be required to enacted. When the Joint Committee failed to propose anything, these discretionary spending limits were replaced by a revised system set forth in section 251A, as enacted.

These excerpt from the President’ Budget Submission for Fiscal Year 2013 describes the method by which the procedure was to work:

The BBEDCA, as amended by the BCA, specifies spending limits (“caps”) on discretionary budget authority for 2012 through 2021. Title I of the BCA establishes a framework that places different limits on specific categories of spending in the first two years (2012 and 2013) as compared to a single spending limit in the remaining years (2014 through 2021). For 2012 and 2013, the discretionary spending limits in Title I are divided into two separate categories: the security category and the nonsecurity category.

*  *  *  *  *  *  *

The law also requires that the categories be revised if the Joint Select Committee process under Title IV of the BCA did not result in enactment of legislation that reduces the deficit by at least $1.2 trillion.

Federal Budget, Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 2013: Analytical Perspectives (February 2011), p. 128-129

References

Legislative History Notes
Public Laws

Pub. L. 112–25, §306, 125 Stat. 241. (Budget Control Act of 2011) 

Statutes at Large: Pub. L. 112–25, 125 Stat. 240, August. 2, 2011.

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