BBEDCA (Contents)
Balanced Budget and Emergency Deficit Control Act of 1985
Section 241
Title II—Deficit Reduction Procedures
PART B—BUDGET SUBMITTED BY THE PRESIDENT
Sec. 241. Submission of President’s budget; maximum deficit amount may not be exceeded.
(a) Submission of President’s Budget.—The first sentence of section 1105(a) of title 31, United States Code, is amended by striking out “During the first 15 days of each regular session of Congress” and inserting in lieu thereof the following: “On or before the first Monday after January 3 of each year (or on or before February 5 in 1986)”.[1]
(b) Maximum Deficit Amount May Not Be Exceeded.[2]—Section 1105 of title 31, United States Code, is amended by adding at the end thereof the following new subsection:
“(f)(1) The budget transmitted pursuant to subsection (a) for a fiscal year shall be prepared on the basis of the best estimates then available, in such a manner as to ensure that the deficit for such fiscal year shall not exceed the maximum deficit amount for such fiscal year as determined under paragraph (7) of section 3 of the Congressional Budget and Impoundment Control Act of 1974. Ante, p. 1039.
“(2) The deficit set forth in the budget so transmitted for any fiscal year shall not exceed the maximum deficit amount for such fiscal year as determined under paragraph (7) of section 3 of the Congressional Budget and Impoundment Control Act of 1974, with budget outlays and Federal revenues at such levels as the President may consider most desirable and feasible.
“(3) Paragraphs (1) and (2) shall not apply if a declaration of war by the Congress is in effect.”.
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COUNSEL NOTES
ENDNOTES
[1] Amended President’s submission from “during the first 15 days of each regular session of Congress” to “on or before the first Monday after January 3 of each year.” Budget Enforcement Act of 1990 amended it: “On or after the first Monday in January but not later than the first Monday in February of each year”.
[2] Omitted: This required budgets transmitted under 31 U.S.C. §1105(a) use the “best estimates then available” of the levels of deficit in that budget. It also required those deficits be no higher than the permitted Maximum Deficit Amounts provided for in law . At that time paragraph (7) of Sec. 3 of the Congressional Budget Act of 1974 set these levels. The enforcement procedure for Maximum Deficit Amounts are found in section 253 of BBEDCA.
Joint EXPLANATORY Statement
The Joint Explanatory Statement of the Managers of Conference on the Balanced Budget and Emergency Deficit Control Act of 1985 included this description:
Section 241. Submission of President’s Budget; Maximum Deficit Amount May Not Be Exceeded
(a) Submission of President’s Budget
The House amendment accelerated the deadline for transmittal of the President’s budget to the first Monday after January 3.
The Senate amendment contained the same accelerated schedule.
The conference agreement changes current law, which requires transmittal of the President’s budget during the first 15 days of each session to a deadline of the first Monday after January 3, except in calendar year 1986, when the deadline would be February 5.
(b) Maximum Deficit Amount May Not Be Exceeded
The House amendment contained substantially similar language.
The conference agreement adds a new subsection to section 1105 of title 31, United States Code. Paragraph (1) of the new subsection requires that the President’s budget shall be prepared on the basis of the best estimates then available in such a manner as to ensure adherence to the maximum deficit levels set forth in section 3(7) of the Congressional Budget Act, as amended by this conference agreement. Paragraph (2) of the new subsection reiterates this requirement in strong terms by stating that the deficit level in the President’s budget shall not exceed the maximum deficit amounts.
U.S. House of Representatives, Balanced Budget and Emergency Deficit Control Act of 1985: Conference Report to Accompany H. J. Res. 372, House Report 99-433 (December 10, 1985).
LEGISLATIVE HISTORY NOTES
PUBLIC LAWS
Pub. L. 99–177, title II, §225, Dec. 12, 1985, 99 Stat. 1063 (Balanced Budget and Emergency Deficit Control Act of 1985).
Amendments to section 1105
Section 1105(f), added by section 241 of BBEDCA, was amended:
1990
Subsec. (f).
Pub. L. 101–508, §13112(c)(2) (Budget Enforcement Act of 1990), amended section 1105(f) to read as follows:
“(f) The budget transmitted pursuant to subsection (a) for a fiscal year [the President’s budget submission] shall be prepared in a manner consistent with the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985 that apply to that and subsequent fiscal years.”
1987
Subsec. (f)(3) to (5)
Pub. L. 100–119 (Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987) amended section 1105(f) to read as follows (later amended by the BEA 1990):
“(f)(1) The budget transmitted pursuant to subsection (a) for a fiscal year shall be prepared on the basis of the best estimates then available, in such a manner as to ensure that the deficit for such fiscal year shall not exceed the maximum deficit amount for such fiscal year as determined under paragraph (7) of section 3 of the Congressional Budget and Impoundment Control Act of 1974.
“(2) The deficit set forth in the budget so transmitted for any fiscal year shall not exceed the maximum deficit amount for such fiscal year as determined under paragraph (7) of section 3 of the Congressional Budget and Impoundment Control Act of 1974, with budget outlays and Federal revenues at such levels as the President may consider most desirable and feasible.
“(3) The budget transmitted pursuant to subsection (a) for a fiscal year shall include a budget baseline estimate made in accordance with section 251(a)(6) of the Balanced Budget and Emergency Deficit Control Act of 1985 and using economic and technical assumptions consistent with the current services budget submitted under section 1109 for the fiscal year. If such budget baseline estimate differs from the estimate in the current services budget, the President shall explain the differences. The budget transmitted pursuant to subsection (a) for such fiscal year shall include the information required by section 251(a)(2) of such Act (other than account-level detail) assuming that the deficit in such budget baseline were the amount estimated by the Director of the Office of Management and Budget on August 25 of the calendar year in which the fiscal year begins.
“(4) Paragraphs (1) and (2) shall not apply with respect to fiscal year 1989 if the budget transmitted for such fiscal year provides for deficit reduction from a budget baseline deficit for such fiscal year (as defined by section 251(a)(6) of the Balanced Budget and Emergency Deficit Control Act of 1985 and based on laws in effect on January 1, 1988) equal to or greater than $36,000,000,000.
“(5) Paragraphs (1) and (2) shall not apply if a declaration of war by the Congress is in effect.”
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Budget Counsel 