BBEDCA (Contents)
Balanced Budget and Emergency Deficit Control Act of 1985
Section 201
Title II—Deficit Reduction Procedures
PART A—CONGRESSIONAL BUDGET PROCESS
SUBPART I—CONGRESSIONAL BUDGET
Sec. 201. Congressional budget.
(a) Definitions.—
(1) Section 3 of the Congressional Budget and Impoundment Control Act of 1974 is amended by adding at the end thereof the following new paragraphs:[1]
[This subsection of the Balanced Budget and Emergency Deficit Control Act of 1985 (Pub. L. 99-177) added four paragraphs with new definitions at the end of section 3 (CBA) as paragraphs (6), (7), (8), (9), and (10). This text has been omitted.]
(b) Congressional Budget Process.—Title III of the Congressional Budget Act of 1974 is amended to read as follows:
[This subsection of the Balanced Budget and Emergency Deficit Control Act of 1985 (Pub. L. 99-177) amended the table of contents of title III of the Congressional Budget Act of 1974. The table, which has been superseded by more recent amendments, has been omitted.]
For the section in full see the following:
Sec. 201. Congressional budget
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Counsel Notes
[1] Omitted: Section 201 amended section 3 of the Congressional Budget Act of 1974 (CBA) by adding new paragraphs at the end: Paragraph (6) defined the term “deficit”, paragraph (7) defined “maximum deficit amount”, paragraph (8) defined “off-budget entity”, paragraph (9) defined “entitlement authority”, and paragraph (10) defined “credit authority”.
Notably, in 1985 the Maximum Deficit Amounts (MDA) were defined in section 3(7) of the CBA which included the enforceable procedures currently referred to in section 253 of BBEDCA. These are no longer enforced since the MDAs are no longer in place for any fiscal year.
The section restated or significantly amended sections of title III of the Congressional Budget Act of 1974. See the section 201 in full under “Explanatory Notes” for the description of these amendments from the Joint Statement of Managers which accompanied the Conference Report for the Act.
LEGISLATIVE HISTORY NOTES
PUBLIC LAWS
Pub. L. 99–177, title II, §201, Dec. 12, 1985, 99 Stat. 1039 (Balanced Budget and Emergency Deficit Control Act of 1985).
References
Definitions Revised or Added to the Congressional Budget Act of 1974
The Joint Explanatory Statement on the BBEDCA Conference Report included the following description of changes to definitions in the Congressional Budget Act of 1974:
Section 201. Congressional Budget
(a) Definitions
(1) Deficit.—The Congressional Budget and Impoundment Control Act of 1974 (hereinafter referred to as “current law”) does not include a definition of the term “deficit”.
The House amendment contained a definition of the term “deficit”.
The Senate amendment contained a definition of the term “deficit”.
The conference agreement contains a definition of the term “deficit” which is similar to that found in both amendments. “Deficit” is defined as the amount by which outlays exceed revenues for a fiscal year. The definition includes all off-budget Federal entities.
The definition also includes, for the purposes of the Balanced Budget and Emergency Deficit Reduction Act of 1985, receipts and disbursements of the Social Security trust funds.
The conferees are aware that this requirement conflicts with the mathematical consistency requirement for budget resolutions contained in the Congressional Budget Act and the House rules. The Balanced Budget and Emergency Deficit Control Act prohibits the budget resolution from setting forth social security spending and revenues. The mathematical consistency rule requires that the budget resolution therefore show a deficit which is computed without social security. The conferees intend that budget resolutions which are considered during the operation of the Balanced Budget and Emergency Deficit Control Act will contain two deficit computations: one will exclude social security so as to comply with the mathematical consistency rule. The other will include social security and will be the deficit level used for purposes of determining compliance with the maximum deficit amount under the Balanced Budget and Emergency Deficit Control Act.
(2) Maximum Deficit Amount.—
Current law does not contain a definition of “maximum deficit amount”.
The House amendment contained a definition of “maximum deficit amount”.
The Senate amendment contained a definition of “maximum deficit amount”.
The conference agreement defines “maximum deficit amount” to mean $171.9 billion in fiscal year 1986, $144 billion in fiscal year 1987, $108 billion in fiscal year 1988, $72 billion in fiscal year 1989, $36 billion in fiscal year 1990, and zero in fiscal year 1991.
(3) Off-budget Federal entity.—Current law does not contain a definition of off-budget Federal entity”.
The House amendment did not define “off-budget Federal entity”.
The Senate amendment did not define “off-budget Federal entity”.
The conference agreement defines “off-budget Federal entity” as any entity (other than a privately-owned Government-sponsored entity) which is established by Federal law, and the budget receipts and disbursements of which would, but for this Act, be required to be excluded from the President’s budget and the congressional budget. (See also discussion of “Off-Budget Federal Entities”.
(4) Entitlement authority.—Current law does not contain an explicit definition of “entitlement authority”.
The House amendment contained a definition of “entitlement authority”.
The Senate amendment did not contain a definition of “entitlement authority”.
The conference agreement contains the House provision defining “entitlement authority” so as to specifically reference spending authority as described in section 401(c)(2)(C) of the Budget Act, which is the working definition under current interpretation.
(5) Credit Authority.—Current law does not contain a definition of “credit authority”.
The House amendment defined “credit authority” as authority to incur direct loan obligations or primary loan guarantee commitments.
The Senate amendment contained an identical provision.
The conference agreement incorporates this language.
(6) Budget Authority to include Offsetting Receipts.—Current law does not define “budget authority” as including the authority to collect offsetting receipts.
The House amendment defined “budget authority” to include the authority to collect offsetting receipts.
The Senate amendment did not include such a provision.
The conference agreement contains the House provision clarifying the definition of budget authority by specifically including the authority to collect offsetting receipts. Offsetting receipts are amount deposited in receipt accounts. These amounts generally are deducted from budget authority by function and by agency. This provision would not change that scorekeeping practice. A reduction in offsetting receipts increases budget authority. Under the new definition, legislation that decreases offsetting receipts will be treated as legislation providing budget authority. The new definition does not affect the treatment of offsetting collections credited to an account, such as TVA power proceeds.
Joint Explanatory Statement of the Committee of Conference on the Balanced Budget and Emergency Deficit Control Act of 1985, pp. 101-102 (see “References” above).
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Budget Counsel 