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86-376

108TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

1st Session

108-71
CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2004

April 10, 2003- Ordered to be printed
Mr. NUSSLE, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H. Con. Res. 95]

The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the concurrent resolution (H. Con. Res. 95), establishing the congressional budget for the United States Government for fiscal year 2004 and setting forth appropriate budgetary levels for fiscal years 2003 and 2005 through 2013, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows:

In lieu of the matter proposed to be inserted by the Senate amendment, insert the following:

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2004.

Sec. 1. Concurrent resolution on the budget for fiscal year 2004.
TITLE I--RECOMMENDED LEVELS AND AMOUNTS
Sec. 101. Recommended levels and amounts.
Sec. 102. Social security.
Sec. 103. Major functional categories.
TITLE II--RECONCILIATION
Sec. 201. Reconciliation for economic growth and tax simplification and fairness.
Sec. 202. Limit on Senate consideration of reconciliation.
TITLE III--SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE
Sec. 301. Submissions of findings providing for the elimination of waste, fraud, and abuse in mandatory programs.
TITLE IV--RESERVE FUNDS AND CONTINGENCY PROCEDURE
Subtitle A--Reserve Funds for Legislation Assumed in Budget Aggregates
Sec. 401. Reserve fund for medicare modernization and prescription drugs.
Sec. 402. Reserve fund for medicaid reform.
Sec. 403. Reserve fund for State children's health insurance program.
Sec. 404. Reserve fund for project bioshield.
Sec. 405. Reserve fund for health insurance for the uninsured.
Sec. 406. Reserve fund for children with special needs.
Subtitle B--Contingency Procedure
Sec. 411. Contingency procedure for surface transportation.
Subtitle C--Adjustments to Fiscal Year 2003 Levels
Sec. 421. Supplemental appropriations for fiscal year 2003.
TITLE V--BUDGET ENFORCEMENT
Sec. 501. Restrictions on advance appropriations.
Sec. 502. Emergency legislation.
Sec. 503. Extension of supermajority enforcement.
Sec. 504. Discretionary spending limits in the Senate.
Sec. 505. Pay-as-you-go point of order in the Senate.
Sec. 506. Compliance with section 13301 of the Budget Enforcement Act of 1990.
Sec. 507. Application and effect of changes in allocations and aggregates.
Sec. 508. Adjustments to reflect changes in concepts and definitions.
TITLE VI--SENSE OF THE SENATE
Sec. 601. Sense of the Senate on Federal employee pay.
Sec. 602. Sense of the Senate regarding Pell Grants.
Sec. 603. Sense of the Senate on emergency and disaster assistance for livestock and agriculture producers.
Sec. 604. Social security restructuring.
Sec. 605. Sense of the Senate concerning State fiscal relief.
Sec. 606. Federal agency review commission.
Sec. 607. Sense of the Senate regarding highway spending.
Sec. 608. Sense of the Senate on reports on liabilities and future costs.
Sec. 609. Sense of the Senate concerning an expansion in health care coverage.
Sec. 610. Sense of the Senate concerning programs of the Corps of Engineers.
Sec. 611. Sense of the Senate concerning Native American health.
Sec. 612. Sense of the Senate on providing tax and other incentives to revitalize rural America.
Sec. 613. Sense of the Senate concerning children's graduate medical education.
Sec. 614. Sense of the Senate on funding for criminal justice.
Sec. 615. Sense of the Senate concerning funding for drug treatment programs.
Sec. 616. Sense of Senate concerning free trade agreement with the United Kingdom.

TITLE I--RECOMMENDED LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

SEC. 102. SOCIAL SECURITY.

SEC. 103. MAJOR FUNCTIONAL CATEGORIES.

TITLE II--RECONCILIATION

SEC. 201. RECONCILIATION FOR ECONOMIC GROWTH AND TAX SIMPLIFICATION AND FAIRNESS.

(a) IN THE HOUSE- The House Committee on Ways and Means shall report a reconciliation bill not later than May 8, 2003, that consists of changes in laws within its jurisdiction sufficient to reduce revenues by not more than $535,000,000,000 for the period of fiscal years 2003 through 2013 and increase the total level of outlays by not more than $15,000,000,000 for the period of fiscal years 2003 through 2013.

(b) IN THE SENATE- The Senate Committee on Finance shall report a reconciliation bill not later than May 8, 2003, that consists of changes in laws within its jurisdiction sufficient to reduce revenues by not more than $522,524,000,000 and increase the total level of outlays by not more than $27,476,000,000 for the period of fiscal years 2003 through 2013.

SEC. 202. LIMIT ON SENATE CONSIDERATION OF RECONCILIATION.

(a) POINT OF ORDER- It shall not be in order for the Senate to consider a bill reported pursuant to section 201, or an amendment thereto, which would cause the total revenue reduction to exceed $322,524,000,000 or the total outlay increase to exceed $27,476,000,000 for the period of fiscal years 2003 through 2013, except for the purpose of inserting the text of a Senate-passed measure and requesting a conference with the House of Representatives.

(b) WAIVER- This section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

(c) APPEALS- An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on the point of order raised under this section.

TITLE III--SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE

SEC. 301. SUBMISSIONS OF FINDINGS PROVIDING FOR THE ELIMINATION OF WASTE, FRAUD, AND ABUSE IN MANDATORY PROGRAMS.

(a) FINDINGS AND PURPOSE- The Congress finds that--

(b) SUBMISSIONS PROVIDING FOR THE ELIMINATION OF WASTE, FRAUD, AND ABUSE IN MANDATORY PROGRAMS- Not later than September 2, 2003, the House committees named in subsection (c) and the Senate committees named in subsection (d) shall submit findings that identify changes in law within their jurisdictions that would achieve the specified level of savings through the elimination of waste, fraud, and abuse. After receiving those recommendations, the Committees on the Budget may use them in the development of future concurrent resolutions on the budget. For purposes of this subsection, the specified level of savings for each committee shall be inserted in the Congressional Record by the chairmen of the Committee on the Budget by May 16, 2003.

(c) HOUSE COMMITTEES- The following committees of the House of Representatives shall submit findings to the House Committee on the Budget pursuant to subsection (b): the Committee on Agriculture, the Committee on Armed Services, the Committee on Education and the Workforce, the Committee on Energy and Commerce, the Committee on Financial Services, the Committee on Government Reform, the Committee on House Administration, the Committee on International Relations, the Committee on the Judiciary, the Committee on Resources, the Committee on Science, the Committee on Small Business, the Committee on Transportation and Infrastructure, the Committee on Veterans' Affairs, and the Committee on Ways and Means.

(d) SENATE COMMITTEES- The following committees of the Senate shall submit their findings to the Senate Committee on the Budget pursuant to subsection (b): the Committee on Agriculture, Nutrition, and Forestry, the Committee on Armed Services, the Committee Banking, Housing, and Urban Affairs, the Committee Commerce, Science, and Transportation, the Committee on Energy and Natural Resources, the Committee on Environment and Public Works, the Committee on Finance, the Committee on Foreign Relations, the Committee on Governmental Affairs, the Committee on Health, Education, Labor, and Pensions, the Committee on the Judiciary, and the Committee on Veterans' Affairs.

(e) GAO REPORT- By August 1, 2003, the Comptroller General shall submit to the Committees on the Budget a comprehensive report identifying instances in which the committees of jurisdiction may make legislative changes to improve the economy, efficiency, and effectiveness of programs within their jurisdiction.

TITLE IV--RESERVE FUNDS AND CONTINGENCY PROCEDURE

Subtitle A--Reserve Funds for Legislation Assumed in Budget Aggregates

SEC. 401. RESERVE FUND FOR MEDICARE MODERNIZATION AND PRESCRIPTION DRUGS.

(a) IN THE HOUSE- (1) In the House, if the Committee on Ways and Means or the Committee on Energy and Commerce reports a bill or joint resolution, or if an amendment thereto is offered or a conference report thereon is submitted, that provides a prescription drug benefit and modernizes medicare, and provides adjustments to the medicare program on a fee-for-service, capitated, or other basis, the chairman of the Committee on the Budget may revise the appropriate allocations described in paragraph (3) for such committees and other appropriate levels in this resolution by the amount provided by that measure for that purpose, but not to exceed $7,000,000,000 in new budget authority and $7,000,000,000 in outlays for fiscal year 2004 and $400,000,000,000 in new budget authority and $400,000,000,000 in outlays for the period of fiscal years 2004 through 2013.

(2) After the consideration of any measure for which an adjustment is made pursuant to paragraph (1), the chairman of the Committee on the Budget shall make any further appropriate adjustments in allocations and budget aggregates.

(3) In the House, there shall be a separate section 302(a) allocation to the appropriate committees for medicare. For purposes of enforcing such separate allocation under section 302(f) of the Congressional Budget Act of 1974, the `first fiscal year' and the `total of fiscal years' shall be deemed to refer to fiscal year 2004 and the total of fiscal years 2004 through 2013 included in the joint explanatory statement of managers accompanying this resolution, respectively. Such separate allocation shall be the exclusive allocation for medicare under section 302(a) of such Act.

(b) IN THE SENATE- If the Committee on Finance of the Senate reports a bill or joint resolution, or an amendment is offered thereto or a conference report thereon is submitted, that strengthens and enhances the Medicare Program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) and improves the access of beneficiaries under that program to prescription drugs or promotes geographic equity payments, the chairman of the Committee on the Budget, may revise appropriate budgetary aggregates and committee allocations of new budget authority and outlays provided by that measure for that purpose, but not to exceed $7,000,000,000 for fiscal year 2004 and $400,000,000,000 for the period of fiscal years 2004 through 2013.

SEC. 402. RESERVE FUND FOR MEDICAID REFORM.

If the Committee on Energy and Commerce of the House or the Committee on Finance of the Senate reports a bill or joint resolution, or if an amendment thereto is offered or a conference report thereon is submitted, that modernizes medicaid, the appropriate chairman of the Committee on the Budget may revise appropriate budgetary aggregates and committee allocations of new budget authority and outlays provided by that measure for that purpose, but not to exceed $3,258,000,000 in new budget authority and outlays for fiscal year 2004, $8,944,000,000 in new budget authority and outlays for the period of fiscal years 2004 through 2008, and $12,782,000,000 in budget authority and outlays for the period of fiscal years 2004 through 2010, if the legislation would not increase the deficit over the period of fiscal years 2004 through 2013.

SEC. 403. RESERVE FUND FOR STATE CHILDREN'S HEALTH INSURANCE PROGRAM.

If the Committee on Energy and Commerce of the House or the Committee on Finance of the Senate reports a bill or joint resolution, or if an amendment thereto is offered or a conference report thereon is submitted, that extends the availability of fiscal year 1998 and 1999 expired State Children's Health Insurance Program allotments and the expiring fiscal year 2000 allotments, the appropriate chairman of the Committee on the Budget may revise appropriate budgetary aggregates and committee allocations of new budget authority and outlays by the amount provided by that measure for that purpose, but not to exceed $1,260,000,000 in new budget authority and $85,000,000 in outlays for fiscal year 2003, $1,330,000,000 in new budget authority and $85,000,000 in outlays for fiscal year 2004, $690,000,000 in new budget authority and $760,000,000 in outlays for the period of fiscal years 2004 through 2008, and $565,000,000 in new budget authority and $890,000,000 in outlays for the period of fiscal years 2004 through 2013.

SEC. 404. RESERVE FUND FOR PROJECT BIOSHIELD.

(a) IN THE HOUSE- In the House, if the appropriate committee of jurisdiction reports a bill or joint resolution, or if an amendment thereto is offered or a conference report thereon is submitted, that establishes a program to accelerate the research, development, and purchase of biomedical threat countermeasures and--

(b) IN THE SENATE- In the Senate, if the Committee on Health, Education, Labor, and Pensions reports a bill or joint resolution, or if an amendment thereto is offered or a conference report thereon is submitted, that provides for the Department of Homeland Security to procure countermeasures necessary to protect the public health from current and emerging threats of chemical, biological, radiological, or nuclear agents for inclusion by the Secretary of Health and Human Services in the Strategic National Stockpile, the chairman of the Committee on the Budget may revise appropriate budgetary aggregates and committee allocations of new budget authority and outlays provided by that measure for that purpose, but not to exceed $890,000,000 in new budget authority and $575,000,000 in outlays for fiscal year 2004, and $5,593,000,000 in new budget authority and $5,593,000,000 in outlays for the period of fiscal years 2004 through 2013.

SEC. 405. RESERVE FUND FOR HEALTH INSURANCE FOR THE UNINSURED.

If the committee of jurisdiction in the House or the Committee on Finance of the Senate reports a bill or joint resolution, or an amendment thereto is offered or a conference report thereon is submitted, that provides health insurance for the uninsured (including a measure providing for tax deductions for the purchase of health insurance for, among others, moderate income individuals not receiving health insurance from their employers), the appropriate chairman of the Committee on the Budget may revise allocations of new budget authority and outlays, the revenue aggregates, and other appropriate aggregates by the amount provided by that measure for that purpose, but not to exceed $28,457,000,000 for the period of fiscal years 2004 through 2008 and $49,965,000,000 for the period of fiscal years 2004 through 2013.

SEC. 406. RESERVE FUND FOR CHILDREN WITH SPECIAL NEEDS.

If the Committee on Energy and Commerce of the House or the Committee on Finance of the Senate reports a bill or joint resolution, or if an amendment thereto is offered or a conference report thereon is submitted, that provides States with the option to expand Medicaid coverage for children with special needs, allowing families of disabled children to purchase coverage under the Medicaid Program for such children, the appropriate chairman of the Committee on the Budget may revise committee allocations for that committee and other appropriate budgetary aggregates and allocations of new budget authority and outlays by the amount provided by that measure for that purpose, but not to exceed $43,000,000 in new budget authority and $42,000,000 in outlays for fiscal year 2004, $1,627,000,000 in new budget authority and $1,566,000,000 in outlays for the period of fiscal years 2004 through 2008, and $7,462,000,000 in new budget authority and $7,261,000,000 in outlays for the period of fiscal years 2004 through 2013.

Subtitle B--Contingency Procedure

SEC. 411. CONTINGENCY PROCEDURE FOR SURFACE TRANSPORTATION.

(a) IN GENERAL- If the Committee on Transportation and Infrastructure of the House or the Committee on Environment and Public Works, the Committee on Banking, Housing, and Urban Affairs, or the Committee on Commerce, Science, and Transportation of the Senate reports a bill or joint resolution, or if an amendment thereto is offered or a conference report thereon is submitted, that provides new budget authority for the budget accounts or portions thereof in the highway and transit categories as defined in sections 250(c)(4)(B) and (C) of the Balanced Budget and Emergency Deficit Control Act of 1985 in excess of the following amounts:

(b) ADJUSTMENT FOR OUTLAYS- (1) For fiscal year 2004, in the House and in the Senate, if a bill or joint resolution is reported, or if an amendment thereto is offered or a conference report thereon is submitted, that changes obligation limitations such that the total limitations are in excess of $39,684,000,000 for fiscal year 2004, for programs, projects, and activities within the highway and transit categories as defined in sections 250(c)(4)(B) and (C) of the Balanced Budget and Emergency Deficit Control Act of 1985 and if legislation has been enacted that satisfies the conditions set forth in subsection (a) for such fiscal year, the appropriate chairman of the Committee on the Budget may increase the allocation of outlays and appropriate aggregates for such fiscal year for the committee reporting such measure by the amount of outlays that corresponds to such excess obligation limitations, but not to exceed the amount of such excess that was offset pursuant to subsection (a).

(2) For fiscal year 2005, in the Senate, if a bill or joint resolution is reported, or if an amendment thereto is offered or a conference report thereon is submitted, that changes obligation limitations such that the total limitations are in excess of $40,788,000,000 for fiscal year 2005, for programs, projects, and activities within the highway and transit categories as defined in sections 250(c)(4)(B) and (C) of the Balanced Budget and Emergency Deficit Control Act of 1985 and if legislation has been enacted that satisfies the conditions set forth in subsection (a) for such fiscal year, the chairman of the Committee on the Budget may increase the allocation of outlays and appropriate aggregates for such fiscal year for the committee reporting such measure by the amount of outlays that corresponds to such excess obligation limitations, but not to exceed the amount of such excess that was offset pursuant to subsection (a).

(c) STATEMENT OF INTENT- It is the intent of Congress that the increase in new budget authority and outlays above the baseline assumed for highways and highway safety in section 103 of this resolution is derived from the resources available to the Highway Trust Fund.

Subtitle C--Adjustments to Fiscal Year 2003 Levels

SEC. 421. SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2003.

If legislation making supplemental appropriations for fiscal year 2003 is enacted before May 1, 2003, the appropriate chairman of the Committee on the Budget shall make the appropriate adjustments in the appropriate allocations and aggregates of new budget authority and outlays to reflect the difference between such measure and the corresponding levels assumed in this resolution.

TITLE V--BUDGET ENFORCEMENT

SEC. 501. RESTRICTIONS ON ADVANCE APPROPRIATIONS.

(a) IN THE HOUSE- (1)(A) In the House, except as provided in paragraph (2), an advance appropriation may not be reported in a bill or joint resolution making a general appropriation or continuing appropriation, and may not be in order as an amendment thereto.

(B) Managers on the part of the House may not agree to a Senate amendment that would violate subparagraph (A) unless specific authority to agree to the amendment first is given by the House by a separate vote with respect thereto.

(2) In the House, an advance appropriation may be provided for fiscal year 2005 for programs, projects, activities or accounts identified in the joint explanatory statement of managers accompanying this resolution under the heading `Accounts Identified for Advance Appropriations, Part A' in an aggregate amount not to exceed $23,158,000,000 in new budget authority, and an advance appropriation may be provided for fiscal year 2006 for any program identified in such statement under the heading `Accounts Identified for Advance Appropriations, Part B'.

(3) In this subsection, the term `advance appropriation' means any discretionary new budget authority in a bill or joint resolution making general appropriations or continuing appropriations for fiscal year 2004 that first becomes available for any fiscal year after 2004.

(b) IN THE SENATE- (1) Except as provided in paragraph (2), it shall not be in order in the Senate to consider any bill, joint resolution, motion, amendment, or conference report that would provide an advance appropriation.

(2) An advance appropriation may be provided for fiscal years 2005 and 2006 for programs, projects, activities, or accounts identified in the joint explanatory statement of managers accompanying this resolution under the heading `Accounts Identified for Advance Appropriations' in an aggregate amount not to exceed $23,158,000,000 in new budget authority in each year.

(3)(A) In the Senate, paragraph (1) may be waived or suspended only by an affirmative vote of three-fifths of the Members, duly chosen and sworn. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under paragraph (1).

(B) A point of order under paragraph (1) may be raised by a Senator as provided in section 313(e) of the Congressional Budget Act of 1974.

(C) If a point of order is sustained under paragraph (1) against a conference report in the Senate, the report shall be disposed of as provided in section 313(d) of the Congressional Budget Act of 1974.

SEC. 502. EMERGENCY LEGISLATION.

(c) IN THE SENATE-

SEC. 503. EXTENSION OF SUPERMAJORITY ENFORCEMENT.

(a) IN GENERAL- Notwithstanding any provision of the Congressional Budget Act of 1974, subsections (c)(2) and (d)(3) of section 904 of the Congressional Budget Act of 1974 shall remain in effect for purposes of Senate enforcement through September 30, 2008.

(b) REPEAL- Senate Resolution 304, agreed to October 16, 2002 (107th Congress), is repealed.

SEC. 504. DISCRETIONARY SPENDING LIMITS IN THE SENATE.

(a) DISCRETIONARY SPENDING LIMITS- In the Senate and as used in this section, the term `discretionary spending limit' means--

(b) DISCRETIONARY SPENDING POINT OF ORDER IN THE SENATE-

(c) ADJUSTMENTS-

SEC. 505. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

(a) POINT OF ORDER-

(b) WAIVER- This section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn.

(c) APPEALS- Appeals in the Senate from the decisions of the Chair relating to any provision of this section shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the bill or joint resolution, as the case may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required to sustain an appeal of the ruling of the Chair on a point of order raised under this section.

(d) DETERMINATION OF BUDGET LEVELS- For purposes of this section, the levels of new budget authority, outlays, and revenues for a fiscal year shall be determined on the basis of estimates made by the Committee on the Budget of the Senate.

(e) SUNSET- This section shall expire on September 30, 2008.

SEC. 506. COMPLIANCE WITH SECTION 13301 OF THE BUDGET ENFORCEMENT ACT OF 1990.

(a) IN GENERAL- In the House, notwithstanding section 302(a)(1) of the Congressional Budget Act of 1974 and section 13301 of the Budget Enforcement Act of 1990, the joint explanatory statement accompanying the conference report on any concurrent resolution on the budget shall include in its allocation under section 302(a) of the Congressional Budget Act of 1974 to the Committee on Appropriations amounts for the discretionary administrative expenses of the Social Security Administration.

(b) SPECIAL RULE- In the House, except as provided by section 401(a), for purposes of applying section 302(f) of the Congressional Budget Act of 1974, estimates of the level of total new budget authority and total outlays provided by a measure shall include any discretionary amounts provided for the Social Security Administration.

SEC. 507. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND AGGREGATES.

(a) APPLICATION- Any adjustments of allocations and aggregates made pursuant to this resolution shall--

(b) EFFECT OF CHANGED ALLOCATIONS AND AGGREGATES- Revised allocations and aggregates resulting from these adjustments shall be considered for the purposes of the Congressional Budget Act of 1974 as allocations and aggregates contained in this resolution.

(c) BUDGET COMMITTEE DETERMINATIONS- For purposes of this resolution--

(d) ENFORCEMENT IN THE HOUSE- In the House, for the purpose of enforcing this concurrent resolution, sections 302(f) and 311(a) of the Congressional Budget Act of 1974 shall apply to fiscal year 2004 and the total for fiscal year 2004 and the four ensuing fiscal years.

SEC. 508. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND DEFINITIONS.

In the House or in the Senate, upon the enactment of a bill or joint resolution providing for a change in concepts or definitions, the appropriate chairman of the Committee on the Budget shall make adjustments to the levels and allocations in this resolution in accordance with section 251(b) of the Balanced Budget and Emergency Deficit Control Act of 1985 (as in effect prior to September 30, 2002).

TITLE VI--SENSE OF THE SENATE

SEC. 601. SENSE OF THE SENATE ON FEDERAL EMPLOYEE PAY.

It is the sense of the Senate that rates of compensation for civilian employees of the United States should be adjusted at the same time, and in the same proportion, as are rates of compensation for members of the uniformed services.

SEC. 602. SENSE OF THE SENATE REGARDING PELL GRANTS.

It is the sense of the Senate that the levels in this resolution assume that within the discretionary allocation provided to the Committee on Appropriations the maximum Pell Grant award should be raised to the maximum extent practicable.

SEC. 603. SENSE OF THE SENATE ON EMERGENCY AND DISASTER ASSISTANCE FOR LIVESTOCK AND AGRICULTURE PRODUCERS.

It is the sense of the Senate that the Senate develop a long-term drought plan that effectively recognizes the recurring nature of drought cycles and adequately supports emergency and disaster assistance to livestock and agricultural producers hurt by drought and that the Senate establish an agricultural reserve to fund these activities.

SEC. 604. SOCIAL SECURITY RESTRUCTURING.

It is the sense of the Senate that--

SEC. 605. SENSE OF THE SENATE CONCERNING STATE FISCAL RELIEF.

It is the Sense of the Senate that the functional totals in this resolution assume that any legislation enacted to provide economic growth for the United States should include not less than $30,000,000,000 for State fiscal relief over the next 18 months (of which at least half should be provided through a temporary increase in the Federal medical assistance percentage (FMAP)).

SEC. 606. FEDERAL AGENCY REVIEW COMMISSION.

It is the sense of the Senate that a commission should be established to review Federal domestic agencies, and programs within such agencies, with the express purpose of providing Congress with recommendations, and legislation to implement those recommendations, to realign or eliminate government agencies and programs that are duplicative, wasteful, inefficient, outdated, or irrelevant, or have failed to accomplish their intended purpose.

SEC. 607. SENSE OF THE SENATE REGARDING HIGHWAY SPENDING.

(a) FINDINGS- The Senate makes the following findings:

(b) SENSE OF THE SENATE- It is the sense of the Senate that the Senate should only consider legislation that increases highway spending if such legislation changes highway user fees to pay for such increased spending.

SEC. 608. SENSE OF THE SENATE ON REPORTS ON LIABILITIES AND FUTURE COSTS.

It is the sense of the Senate that the Congressional Budget Office shall consult with the Committee on the Budget of the Senate in order to prepare a report containing--

SEC. 609. SENSE OF THE SENATE CONCERNING AN EXPANSION IN HEALTH CARE COVERAGE.

It is the sense of the Senate that the functional totals in this resolution assume that--

SEC. 610. SENSE OF THE SENATE CONCERNING PROGRAMS OF THE CORPS OF ENGINEERS.

It is the sense of the Senate that the Corps of Engineers requires additional funding to perform its vital functions and the budgetary totals in this resolution assume that the level of funding provided for programs of the Corps will not be reduced below current baseline spending levels.

SEC. 611. SENSE OF THE SENATE CONCERNING NATIVE AMERICAN HEALTH.

It is the sense of the Senate that Congress has recognized the importance of Native American health. In 1997, Congress enacted a program to spend $30,000,000 a year on research and treatment on diabetes in the Native American community. This amount was increased to $100,000,000 a year in 2000 and further increased to $150,000,000 a year in 2002. This is a 500 percent increase since 1997. This priority focuses on prevention and treatment for a major disease in the Native American community.

SEC. 612. SENSE OF THE SENATE ON PROVIDING TAX AND OTHER INCENTIVES TO REVITALIZE RURAL AMERICA.

It is the sense of the Senate that if tax relief measures are enacted in accordance with the assumptions in the budget resolution in this session of Congress, such legislation should include incentives to help rural communities attract individuals to live and work and start and grow a business in those communities.

SEC. 613. SENSE OF THE SENATE CONCERNING CHILDREN'S GRADUATE MEDICAL EDUCATION.

It is the sense of the Senate that, for fiscal year 2004, children's graduate medical education should be funded at $305,000,000.

SEC. 614. SENSE OF THE SENATE ON FUNDING FOR CRIMINAL JUSTICE.

It is the sense of the Senate that the funding levels in this resolution assume that the programs authorized under the Crime Identification Technology Act of 1998 to improve the justice system will be fully funded at the levels authorized for each of the fiscal years 2004 through 2007.

SEC. 615. SENSE OF THE SENATE CONCERNING FUNDING FOR DRUG TREATMENT PROGRAMS.

It is the sense of the Senate that the functional totals in this resolution assume that up to $20,000,000 from funds designated, but not obligated, for travel and administrative expenses, from drug interdiction activities should be used for service-oriented targeted grants for the utilization of substances that block the craving for heroin and that are newly approved for such use by the Food and Drug Administration.

SEC. 616. SENSE OF SENATE CONCERNING FREE TRADE AGREEMENT WITH THE UNITED KINGDOM.

It is the sense of the Senate that the President should negotiate a free trade agreement with the United Kingdom.

And the Senate agree to the same.
Jim Nussle,
Christopher Shays,

Managers on the Part of the House.
Don Nickles,
Pete V. Domenici,
Chuck Grassley,
Judd Gregg,

Managers on the Part of the Senate.

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

The managers on the part of the House and the Senate at the conference on disagreeing votes of the two Houses on the amendment of the Senate to the concurrent resolution (H. Con. Res. 95), establishing the congressional budget for the United States Government for fiscal year 2004 and setting forth appropriate budgetary levels for fiscal years 2003 through 2005 through 2013, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report:

The Senate amendment struck all out of the House bill after the enacting clause and inserted a substitute text.

The House recedes from its disagreement to the amendment of the Senate with an amendment that is a substitute for the House bill and the Senate amendment. The differences between the House bill, the Senate amendment, and the substitute agreed to in conference are noted below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting and clarifying changes.

DISPLAYS AND AMOUNTS

The contents of concurrent budget resolutions are set forth in section 301(a) of the Congressional Budget Act of 1974. The years in this document are fiscal years unless otherwise indicated.

House Resolution

The House budget resolution includes all of the items required as part of a concurrent budget resolution under section 301(a) of the Congressional Budget Act other than the spending and revenue levels for Social Security (which is used to enforce a point of order applicable only in the Senate).

Senate Amendment

The Senate amendment includes all of the items required under section 301(a) of the Congressional Budget Act. As permitted under section 301(b) of the Congressional Budget Act, Section 101(6) of the Senate amendment includes advisory levels on debt held by the public.

Conference Agreement

The Conference Agreement includes all of the items required by section 301(a) of the Congressional Budget Act.

AGGREGATE AND FUNCTION LEVELS

The following tables are included in this section:

Conference Report on the Fiscal Year 2004 Budget Resolution: Total Spending and Revenues

Conference Report on the Fiscal Year 2004 Budget Resolution: Discretionary Spending

Conference Report on the Fiscal Year 2004 Budget Resolution: Mandatory Spending

House-Passed Fiscal Year 2004 Budget Resolution: Total Spending and Revenues

House-Passed Fiscal Year 2004 Budget Resolution: Discretionary Spending

House Passed Fiscal Year 2004 Budget Resolution: Mandatory Spending

Senate-Passed Fiscal Year 2004 Amendment: Aggregate and Function Levels 

CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: TOTAL SPENDING AND REVENUES
[Dollars in billions]
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Fiscal Year                                                     2003      2004      2005      2006      2007      2008      2009      2010      2011      2012      2013    2004-08    2004-13 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY                                                                                                                                                                                 
Total Spending:                                                                                                                                                                                
BA                                                         2,231.122 2,247.860 2,387.012 2,529.740 2,652.819 2,782.789 2,905.038 3,024.490 3,156.932 3,264.724 3,412.316 12,600.220 28,363.720 
OT                                                         2,181.910 2,268.230 2,375.351 2,493.643 2,607.179 2,737.405 2,866.279 2,992.306 3,133.830 3,229.310 3,386.854 12,481.808 28,090.387 
On-Budget:                                                                                                                                                                                     
BA                                                         1,862.613 1,861.004 1,990.236 2,122.301 2,232.829 2,348.872 2,454.439 2,555.612 2,669.462 2,754.007 2,875.121 10,555.242 23,863.883 
OT                                                         1,815.395 1,883.834 1,981.402 2,089.299 2,190.576 2,307.259 2,419.846 2,527.898 2,651.220 2,723.935 2,855.491 10,452.370 23,630.760 
Off-Budget:                                                                                                                                                                                    
BA                                                           368.509   386.856   396.776   407.439   419.990   433.917   450.599   468.878   487.470   510.717   537.195  2,044.978  4,499.837 
OT                                                           366.515   384.396   393.949   404.344   416.603   430.146   446.433   464.408   482.610   505.375   531.363  2,029.438  4,459.627 
Revenues                                                                                                                                                                                       
Total                                                      1,834.718 1,883.273 2,081.650 2,276.573 2,441.399 2,586.273 2,772.894 2,923.691 3,062.692 3,239.140 3,423.675 11,269.168 26,691.260 
On-budget                                                  1,303.111 1,325.452 1,493.875 1,657.511 1,790.251 1,901.844 2,053.762 2,167.937 2,270.540 2,409.572 2,553.985  8,168.933 19,624.729 
Off-budget                                                   531.607   557.821   587.775   619.062   651.148   684.429   719.132   755.754   792.152   829.568   869.690  3,100.235  7,066.531 
Surplus/Deficit (-):                                                                                                                                                                           
Total                                                       -347.192  -384.957  -293.701  -217.070  -165.780  -151.132   -93.385   -68.615   -71.138     9.830    36.821 -1,212.640 -1,399.127 
On-budget                                                   -512.284  -558.382  -487.527  -431.788  -400.325  -405.415  -366.084  -359.961  -380.680  -314.363  -301.506 -2,283.437 -4,006.031 
Off-budget                                                   165.092   173.425   193.826   214.718   234.545   254.283   272.699   291.346   309.542   324.193   338.327  1,070.797  2,606.904 
Debt Held by the Public (end of year)                          3,917     4,299     4,599     4,829     5,007     5,169     5,272     5,349     5,428     5,424     5,394         na         na 
Debt Subject to Limit (end of year)                            6,747     7,384     7,978     8,534     9,064     9,602    10,102    10,601    11,125    11,588    12,040         na         na 
BY FUNCTION                                                                                                                                                                             
National Defense (050):                                                                                                                                                                        
BA                                                           392.494   400.546   420.071   440.185   460.435   480.886   491.951   502.301   511.859   520.553   529.428  2,202.123  4,758.215 
OT                                                           386.229   400.916   414.237   426.011   438.656   462.861   479.249   493.195   508.131   510.509   524.494  2,142.681  4,658.259 
International Affairs (150):                                                                                                                                                                   
BA                                                            22.506    25.681    29.734    32.308    33.603    34.611    35.413    36.258    37.136    38.005    38.885    155.937    341.634 
OT                                                            19.283    24.207    24.917    26.539    28.464    29.604    30.733    31.689    32.565    33.408    34.298    133.731    296.424 
General Science, Space, and Technology (250):                                                                                                                                                  
BA                                                            23.153    23.927    24.433    25.217    26.055    26.832    27.462    28.121    28.805    29.492    30.185    126.464    270.529 
OT                                                            21.556    22.799    23.861    24.485    25.221    25.948    26.639    27.296    27.963    28.639    29.319    122.314    262.170 
Energy (270):                                                                                                                                                                                  
BA                                                             2.074     2.634     2.797     2.714     2.540     3.080     3.090     3.194     3.296     3.408     3.520     13.765     30.273 
OT                                                             0.439     0.873     0.947     1.272     1.069     1.419     1.686     1.794     1.976     2.357     2.326      5.580     15.719 
Natural Resources and Environment (300):                                                                                                                                                       
BA                                                            30.816    31.623    32.504    32.962    33.386    34.064    35.183    36.021    36.829    37.529    38.214    164.539    348.315 
OT                                                            28.940    30.782    31.654    32.830    33.127    33.527    34.544    35.360    36.163    36.836    37.600    161.920    342.423 
Agriculture (350):                                                                                                                                                                             
BA                                                            24.418    24.583    27.003    26.828    26.299    25.507    26.092    25.545    24.991    24.573    24.297    130.220    255.718 
OT                                                            23.365    23.656    25.763    25.593    25.107    24.381    25.128    24.716    24.180    23.778    23.498    124.500    245.800 
Commerce and Housing Credit (370):                                                                                                                                                             
BA                                                             5.212     7.316     8.243     5.802     5.455     5.211     4.751     4.278     3.871     3.716     3.369     32.027     52.012 
OT                                                             2.281     3.374     3.550     0.638    -0.520    -1.289    -1.756    -2.591    -3.581    -4.131    -4.438      5.753    -10.744 
On-budget:                                                                                                                                                                                     
BA                                                             8.812     7.516     8.743     8.280     8.626     8.743     8.526     8.407     8.386     8.489     8.563     41.908     84.279 
OT                                                             5.881     3.574     4.050     3.116     2.651     2.243     2.019     1.538     0.934     0.642     0.756     15.634     21.523 
Off-budget:                                                                                                                                                                                    
BA                                                            -3.600    -0.200    -0.500    -2.478    -3.171    -3.532    -3.775    -4.129    -4.515    -4.773    -5.194     -9.881    -32.267 
OT                                                            -3.600    -0.200    -0.500    -2.478    -3.171    -3.532    -3.775    -4.129    -4.515    -4.773    -5.194     -9.881    -32.267 
Transportation (400):                                                                                                                                                                          
BA                                                            64.091    69.506    70.489    72.496    75.278    76.927    78.878    77.747    78.624    79.527    80.466    364.696    759.938 
OT                                                            67.847    69.869    69.442    70.191    71.786    73.659    75.632    77.233    78.291    79.317    80.346    354.947    745.766 
Community and Regional Development (450):                                                                                                                                                      
BA                                                            12.251    14.063    14.138    14.321    14.536    14.745    14.980    15.233    15.492    15.755    16.023     71.803    149.286 
OT                                                            15.994    15.823    15.872    14.961    14.664    14.123    14.298    14.501    14.750    14.992    15.259     75.443    149.243 
Education, Training, Employment and Social Services (500):                                                                                                                                     
BA                                                            82.699    90.035    91.442    93.428    95.569    97.925    99.813   101.551   103.529   105.790   107.265    468.399    986.347 
OT                                                            81.455    84.205    87.020    90.541    92.986    95.118    97.440    99.289   101.117   102.985   104.934    449.870    955.635 
Health (550):                                                                                                                                                                                  
BA                                                           222.913   240.554   259.701   279.236   299.614   322.061   345.548   370.626   396.818   415.790   445.484  1,401.166  3,375.432 
OT                                                           217.881   238.785   259.403   279.024   298.681   320.731   344.059   369.097   395.280   414.384   444.082  1,396.624  3,363.526 
Medicare (570):                                                                                                                                                                                
BA                                                           248.586   266.018   282.682   321.623   343.717   369.244   395.368   423.288   453.285   485.951   526.553  1,583.284  3,867.729 
OT                                                           248.434   266.283   285.630   318.384   343.987   369.119   395.107   423.546   456.642   482.125   526.809  1,583.403  3,867.632 
Income Security (600):                                                                                                                                                                         
BA                                                           326.390   319.518   333.821   341.816   349.199   361.697   373.372   384.844   400.266   403.738   418.672  1,706.051  3,686.943 
OT                                                           334.177   324.840   337.123   344.292   350.945   362.808   374.083   385.347   400.688   404.146   419.245  1,720.008  3,703.517 
Social Security (650):                                                                                                                                                                         
BA                                                           478.882   501.140   521.499   546.735   575.008   606.071   641.105   679.322   720.505   766.154   816.195  2,750.453  6,373.734 
OT                                                           476.888   498.679   518.672   543.640   571.621   602.300   636.939   674.852   715.645   760.812   810.363  2,734.912  6,333.523 
On-budget:                                                                                                                                                                                     
BA                                                            13.255    14.294    15.471    16.421    17.919    19.704    21.810    24.283    28.170    31.357    34.347     83.809    223.776 
OT                                                            13.255    14.293    15.471    16.421    17.919    19.704    21.810    24.283    28.170    31.357    34.347     83.808    223.775 
Off-budget:                                                                                                                                                                                    
BA                                                           465.627   486.846   506.028   530.314   557.089   586.367   619.295   655.039   692.335   734.797   781.848  2,666.644  6,149.958 
OT                                                           463.633   484.386   503.201   527.219   553.702   582.596   615.129   650.569   687.475   729.455   776.016  2,651.104  6,109.748 
Veterans Benefits and Services (700):                                                                                                                                                          
BA                                                            57.597    63.779    67.135    65.397    63.874    67.666    69.279    70.992    75.669    72.618    77.455    327.851    693.864 
OT                                                            57.486    63.209    66.553    64.995    63.442    67.398    68.924    70.588    75.249    72.097    76.989    325.597    689.444 
Administration of Justice (750):                                                                                                                                                               
BA                                                            38.543    37.626    37.946    37.984    38.461    39.477    40.497    41.599    42.889    44.207    45.576    191.494    406.262 
OT                                                            37.712    40.788    39.193    38.329    38.252    39.128    40.212    41.299    42.472    43.760    45.120    195.690    408.553 
General Government (800):                                                                                                                                                                      
BA                                                            18.185    20.202    20.635    20.656    21.126    21.236    21.946    22.695    23.458    24.255    25.076    103.855    221.285 
OT                                                            18.110    20.066    20.714    20.485    20.876    21.013    21.504    22.212    22.946    23.880    24.520    103.154    218.216 
Net Interest (900):                                                                                                                                                                            
BA                                                           156.067   169.656   212.681   243.313   258.818   269.793   278.541   283.448   288.931   293.336   292.764  1,154.261  2,591.281 
OT                                                           156.067   169.656   212.681   243.313   258.818   269.793   278.541   283.448   288.931   293.336   292.764  1,154.261  2,591.281 
On-budget:                                                                                                                                                                                     
BA                                                           240.176   259.414   310.630   352.219   380.574   405.647   429.542   450.651   473.381   496.015   514.513  1,708.484  4,072.586 
OT                                                           240.176   259.414   310.630   352.219   380.574   405.647   429.542   450.651   473.381   496.015   514.513  1,708.484  4,072.586 
Off-budget:                                                                                                                                                                                    
BA                                                           -84.109   -89.758   -97.949  -108.906  -121.756  -135.854  -151.001  -167.203  -184.450  -202.679  -221.749   -554.223 -1,481.305 
OT                                                           -84.109   -89.758   -97.949  -108.906  -121.756  -135.854  -151.001  -167.203  -184.450  -202.679  -221.749   -554.223 -1,481.305 
Allowances (920):                                                                                                                                                                              
BA                                                            74.758    -7.621    -6.541    -7.331    -8.947    -9.959   -11.526   -12.888   -16.414   -21.460   -25.618    -40.399   -128.305 
OT                                                            38.279    22.346     1.520    -5.930    -8.796    -9.951    -9.978   -10.880   -12.671   -15.707   -19.181     -0.811    -69.228 
Undistributed Offsetting Receipts (950):                                                                                                                                                       
BA                                                           -50.513   -52.926   -63.401   -65.950   -61.207   -64.285   -66.705   -69.685   -72.907   -78.213   -81.493   -307.769   -676.772 
OT                                                           -50.513   -52.926   -63.401   -65.950   -61.207   -64.285   -66.705   -69.685   -72.907   -78.213   -81.493   -307.769   -676.772 
On-budget:                                                                                                                                                                                     
BA                                                           -41.104   -42.894   -52.598   -54.459   -49.035   -51.221   -52.785   -54.856   -57.007   -61.585   -63.783   -250.207   -540.223 
OT                                                           -41.104   -42.894   -52.598   -54.459   -49.035   -51.221   -52.785   -54.856   -57.007   -61.585   -63.783   -250.207   -540.223 
Off-budget:                                                                                                                                                                                    
BA                                                            -9.409   -10.032   -10.803   -11.491   -12.172   -13.064   -13.920   -14.829   -15.900   -16.628   -17.710    -57.562   -136.549 
OT                                                            -9.409   -10.032   -10.803   -11.491   -12.172   -13.064   -13.920   -14.829   -15.900   -16.628   -17.710    -57.562   -136.549 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: DISCRETIONARY SPENDING
[Dollars in billions]
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year                                                   2003    2004    2005    2006    2007    2008    2009    2010      2011      2012      2013   2004-08   2004-13 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY                                                                                                                                                               
Total Spending:                                                                                                                                                              
BA                                                         840.554 784.460 814.086 842.470 872.461 903.983 924.775 944.195   962.135   978.491   995.126 4,217.460 9,022.182 
OT                                                         842.961 860.752 858.003 870.434 892.160 926.475 955.305 980.114 1,004.818 1,016.239 1,038.931 4,407.824 9,403.231 
Defense:                                                                                                                                                                     
BA                                                         392.137 400.058 419.437 439.507 459.729 480.129 491.172 501.487   511.015   519.702   528.537 2,198.860 4,750.773 
OT                                                         386.373 400.561 413.682 425.379 437.995 462.157 478.522 492.435   507.345   509.721   523.668 2,139.774 4,651.465 
Nondefense:                                                                                                                                                                  
BA                                                         448.417 384.402 394.649 402.963 412.732 423.854 433.603 442.708   451.120   458.789   466.589 2,018.600 4,271.409 
OT                                                         456.588 460.191 444.321 445.055 454.165 464.318 476.783 487.679   497.473   506.518   515.263 2,268.050 4,751.766 
BY FUNCTION                                                                                                                                                           
National Defense (050):                                                                                                                                                      
BA                                                         392.137 400.058 419.437 439.507 459.729 480.129 491.172 501.487   511.015   519.702   528.537 2,198.860 4,750.773 
OT                                                         386.373 400.561 413.682 425.379 437.995 462.157 478.522 492.435   507.345   509.721   523.668 2,139.774 4,651.465 
International Affairs (150):                                                                                                                                                 
BA                                                          25.407  28.651  30.034  31.579  32.854  33.845  34.630  35.459    36.322    37.176    38.037   156.963   338.587 
OT                                                          26.000  26.775  27.522  29.195  31.084  32.119  33.225  34.179    35.072    35.935    36.778   146.695   321.884 
General Science, Space, and Technology (250):                                                                                                                                
BA                                                          23.047  23.897  24.402  25.186  26.023  26.799  27.429  28.087    28.770    29.456    30.149   126.307   270.198 
OT                                                          21.457  22.701  23.766  24.421  25.176  25.915  26.607  27.263    27.929    28.605    29.284   121.979   261.667 
Energy (270):                                                                                                                                                                
BA                                                           3.237   3.672   3.975   3.914   3.902   4.858   4.975   5.096     5.227     5.357     5.489    20.321    46.465 
OT                                                           3.151   3.577   3.869   3.971   3.901   4.647   4.911   5.031     5.157     5.286     5.415    19.965    45.765 
Natural Resources and Environment (300):                                                                                                                                     
BA                                                          29.238  29.327  29.802  30.097  30.583  31.319  31.998  32.705    33.448    34.196    34.970   151.128   318.445 
OT                                                          27.857  29.014  29.554  29.983  30.464  30.965  31.542  32.199    32.899    33.595    34.342   149.980   314.557 
Agriculture (350):                                                                                                                                                           
BA                                                           5.727   5.243   5.609   5.734   5.876   6.037   6.208   6.386     6.575     6.767     6.962    28.499    61.397 
OT                                                           5.852   5.589   5.533   5.613   5.758   5.958   6.128   6.303     6.487     6.679     6.871    28.451    60.919 
Commerce and Housing Credit (370):                                                                                                                                           
BA                                                           0.150  -0.496  -0.269  -0.554   0.534   0.878   0.767   0.661     0.534     0.625     0.574     0.093     3.254 
OT                                                           0.054   0.092  -0.393  -0.650   0.449   0.686   0.633   0.549     0.414     0.502     0.450     0.184     2.732 
On-budget:                                                                                                                                                                   
BA                                                           0.150  -0.496  -0.269  -0.554   0.534   0.878   0.767   0.661     0.534     0.625     0.574     0.093     3.254 
OT                                                           0.054   0.092  -0.393  -0.650   0.449   0.686   0.633   0.549     0.414     0.502     0.450     0.184     2.732 
Off-budget:                                                                                                                                                                  
BA                                                                                                                                                                           
OT                                                                                                                                                                           
Transportation (400):                                                                                                                                                        
BA                                                          22.611  23.205  23.134  24.192  24.882  25.276  26.393  26.221    27.040    27.875    28.739   120.689   256.957 
OT                                                          65.184  67.608  67.257  68.142  69.802  71.732  73.676  75.266    76.289    77.269    78.245   344.541   725.286 
Community and Regional Development (450):                                                                                                                                    
BA                                                          11.725  13.826  13.999  14.188  14.401  14.688  14.921  15.168    15.425    15.686    15.950    71.102   148.252 
OT                                                          16.054  15.912  15.992  15.124  14.884  14.390  14.602  14.835    15.079    15.313    15.569    76.302   151.700 
Education, Training, Employment and Social Services (500):                                                                                                                   
BA                                                          72.875  80.507  81.005  82.245  84.023  86.086  87.707  89.283    90.924    92.938    94.086   413.866   868.804 
OT                                                          71.958  75.206  77.152  80.039  82.172  83.975  86.043  87.652    89.250    90.886    92.523   398.544   844.898 
Health (550):                                                                                                                                                                
BA                                                          49.468  49.620  50.667  51.800  52.950  54.299  55.607  56.972    58.387    59.806    61.246   259.336   551.354 
OT                                                          44.349  47.742  49.376  50.414  51.631  52.576  53.801  55.102    56.460    57.851    59.252   251.739   534.205 
Medicare (570):                                                                                                                                                              
BA                                                           3.798   3.739   3.807   3.906   4.014   4.138   4.353   4.572     4.809     5.089     5.396    19.604    43.823 
OT                                                           3.797   3.726   3.811   3.897   3.992   4.113   4.309   4.524     4.757     5.027     5.327    19.539    43.483 
Income Security (600):                                                                                                                                                       
BA                                                          44.020  45.712  48.760  50.311  52.004  53.714  55.441  57.295    59.143    61.023    62.884   250.501   546.287 
OT                                                          50.781  51.544  52.373  53.424  54.643  56.116  57.505  58.954    60.560    62.215    63.908   268.100   571.242 
Social Security (650):                                                                                                                                                       
BA                                                           3.833   4.282   4.363   4.450   4.549   4.665   4.820   4.983     5.151     5.323     5.503    22.309    48.089 
OT                                                           3.859   4.231   4.326   4.435   4.532   4.644   4.794   4.953     5.121     5.291     5.471    22.168    47.798 
On-budget:                                                                                                                                                                   
BA                                                           0.021   0.025   0.025   0.026   0.027   0.027   0.028   0.029     0.030     0.031     0.032     0.130     0.280 
OT                                                           0.021   0.024   0.025   0.026   0.027   0.027   0.028   0.029     0.030     0.031     0.032     0.129     0.279 
Off-budget:                                                                                                                                                                  
BA                                                           3.812   4.257   4.338   4.424   4.522   4.638   4.792   4.954     5.121     5.292     5.471    22.179    47.809 
OT                                                           3.838   4.207   4.301   4.409   4.505   4.617   4.766   4.924     5.091     5.260     5.439    22.039    47.519 
Veterans Benefits and Services (700):                                                                                                                                        
BA                                                          26.532  29.957  28.386  28.812  29.272  29.838  30.796  31.789    32.824    33.887    35.000   146.265   310.561 
OT                                                          26.902  29.600  28.183  28.495  29.024  29.662  30.530  31.497    32.521    33.576    34.663   144.964   307.751 
Administration of Justice (750):                                                                                                                                             
BA                                                          36.289  33.529  35.762  36.664  37.621  38.694  39.771  40.931    42.288    43.674    45.117   182.270   394.051 
OT                                                          35.484  37.495  36.611  36.824  37.483  38.455  39.596  40.741    41.977    43.331    44.764   186.868   397.277 
General Government (800):                                                                                                                                                    
BA                                                          15.702  17.352  17.754  17.770  18.191  18.679  19.313  19.988    20.667    21.371    22.105    89.746   193.190 
OT                                                          15.570  17.033  17.869  17.658  17.966  18.316  18.859  19.511    20.172    20.864    21.582    88.842   189.830 
Allowances (920):                                                                                                                                                            
BA                                                          74.758  -7.621  -6.541  -7.331  -8.947  -9.959 -11.526 -12.888   -16.414   -21.460   -25.618   -40.399  -128.305 
OT                                                          38.279  22.346   1.520  -5.930  -8.796  -9.951  -9.978 -10.880   -12.671   -15.707   -19.181    -0.811   -69.228 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: MANDATORY SPENDING
[Dollars in billions]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year                                                     2003      2004      2005      2006      2007      2008      2009      2010      2011      2012      2013   2004-08    2004-13 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY                                                                                                                                                                                
Total Spending:                                                                                                                                                                               
BA                                                         1,390.568 1,463.400 1,572.926 1,687.270 1,780.358 1,878.806 1,980.263 2,080.295 2,194.797 2,286.233 2,417.190 8,382.760 19,341.538 
OT                                                         1,338.949 1,407.478 1,517.348 1,623.209 1,715.019 1,810.930 1,910.974 2,012.192 2,129.012 2,213.071 2,347.923 8,073.984 18,687.156 
On-budget:                                                                                                                                                                                    
BA                                                         1,025.871 1,080.801 1,180.488 1,284.255 1,364.890 1,449.527 1,534.456 1,616.371 1,712.448 1,780.808 1,885.466 6,359.961 14,889.510 
OT                                                           976.272 1,027.289 1,127.700 1,223.274 1,302.921 1,385.401 1,469.307 1,552.708 1,651.493 1,712.956 1,821.999 6,066.585 14,275.048 
Off-budget:                                                                                                                                                                                   
BA                                                           364.697   382.599   392.438   403.015   415.468   429.279   445.807   463.924   482.349   505.425   531.724 2,022.799  4,452.028 
OT                                                           362.677   380.189   389.648   399.935   412.098   425.529   441.667   459.484   477.519   500.115   525.924 2,007.399  4,412.108 
BY FUNCTION                                                                                                                                                                            
National Defense (050):                                                                                                                                                                       
BA                                                             0.357     0.488     0.634     0.678     0.706     0.757     0.779     0.814     0.844     0.851     0.891     3.263      7.442 
OT                                                            -0.144     0.355     0.555     0.632     0.661     0.704     0.727     0.760     0.786     0.788     0.826     2.907      6.794 
International Affairs (150):                                                                                                                                                                  
BA                                                            -2.901    -2.970    -0.300     0.729     0.749     0.766     0.783     0.799     0.814     0.829     0.848    -1.026      3.047 
OT                                                            -6.717    -2.568    -2.605    -2.656    -2.620    -2.515    -2.492    -2.490    -2.507    -2.527    -2.480   -12.964    -25.460 
General Science, Space, and Technology (250):                                                                                                                                                 
BA                                                             0.106     0.030     0.031     0.031     0.032     0.033     0.033     0.034     0.035     0.036     0.036     0.157      0.331 
OT                                                             0.099     0.098     0.095     0.064     0.045     0.033     0.032     0.033     0.034     0.034     0.035     0.335      0.503 
Energy (270):                                                                                                                                                                                 
BA                                                            -1.163    -1.038    -1.178    -1.200    -1.362    -1.778    -1.885    -1.902    -1.931    -1.949    -1.969    -6.556    -16.192 
OT                                                            -2.712    -2.704    -2.922    -2.699    -2.832    -3.228    -3.225    -3.237    -3.181    -2.929    -3.089   -14.385    -30.046 
Natural Resources and Environment (300):                                                                                                                                                      
BA                                                             1.578     2.296     2.702     2.865     2.803     2.745     3.185     3.316     3.381     3.333     3.244    13.411     29.870 
OT                                                             1.083     1.768     2.100     2.847     2.663     2.562     3.002     3.161     3.264     3.241     3.258    11.940     27.866 
Agriculture (350):                                                                                                                                                                            
BA                                                            18.691    19.340    21.394    21.094    20.423    19.470    19.884    19.159    18.416    17.806    17.335   101.721    194.321 
OT                                                            17.513    18.067    20.230    19.980    19.349    18.423    19.000    18.413    17.693    17.099    16.627    96.049    184.881 
Commerce and Housing Credit (370):                                                                                                                                                            
BA                                                             5.062     7.812     8.512     6.356     4.921     4.333     3.984     3.617     3.337     3.091     2.795    31.934     48.758 
OT                                                             2.227     3.282     3.943     1.288    -0.969    -1.975    -2.389    -3.140    -3.995    -4.633    -4.888     5.569    -13.476 
On-budget:                                                                                                                                                                                    
BA                                                             8.662     8.012     9.012     8.834     8.092     7.865     7.759     7.746     7.852     7.864     7.989    41.815     81.025 
OT                                                             5.827     3.482     4.443     3.766     2.202     1.557     1.386     0.989     0.520     0.140     0.306    15.450     18.791 
Off-budget:                                                                                                                                                                                   
BA                                                            -3.600    -0.200    -0.500    -2.478    -3.171    -3.532    -3.775    -4.129    -4.515    -4.773    -5.194    -9.881    -32.267 
OT                                                            -3.600    -0.200    -0.500    -2.478    -3.171    -3.532    -3.775    -4.129    -4.515    -4.773    -5.194    -9.881    -32.267 
Transportation (400):                                                                                                                                                                         
BA                                                            41.480    46.301    47.355    48.304    50.396    51.651    52.485    51.526    51.584    51.652    51.727   244.007    502.981 
OT                                                             2.663     2.261     2.185     2.049     1.984     1.927     1.956     1.967     2.002     2.048     2.101    10.406     20.480 
Community and Regional Development (450)                                                                                                                                                      
BA                                                             0.526     0.237     0.139     0.133     0.135     0.057     0.059     0.065     0.067     0.069     0.073     0.701      1.034 
OT                                                            -0.060    -0.089    -0.120    -0.163    -0.220    -0.267    -0.304    -0.334    -0.329    -0.321    -0.310    -0.859     -2.457 
Education, Training, Employment and Social Services (500):                                                                                                                                    
BA                                                             9.824     9.528    10.437    11.183    11.546    11.839    12.106    12.268    12.605    12.852    13.179    54.533    117.543 
OT                                                             9.497     8.999     9.868    10.502    10.814    11.143    11.397    11.637    11.867    12.099    12.411    51.326    110.737 
Health (550):                                                                                                                                                                                 
BA                                                           173.445   190.934   209.034   227.436   246.664   267.762   289.941   313.654   338.431   355.984   384.238 1,141.830  2,824.078 
OT                                                           173.532   191.043   210.027   228.610   247.050   268.155   290.258   313.995   338.820   356.533   384.830 1,144.885  2,829.321 
Medicare (570):                                                                                                                                                                               
BA                                                           244.788   262.279   278.875   317.717   339.703   365.106   391.015   418.716   448.476   480.862   521.157 1,563.680  3,823.906 
OT                                                           244.637   262.557   281.819   314.487   339.995   365.006   390.798   419.022   451.885   477.098   521.482 1,563.864  3,824.149 
Income Security (600):                                                                                                                                                                        
BA                                                           282.370   273.806   285.061   291.505   297.195   307.983   317.931   327.549   341.123   342.715   355.788 1,455.550  3,140.656 
OT                                                           283.396   273.296   284.750   290.868   296.302   306.692   316.578   326.393   340.128   341.931   355.337 1,451.908  3,132.275 
Social Security (650):                                                                                                                                                                        
BA                                                           475.049   496.858   517.136   542.285   570.459   601.406   636.285   674.339   715.354   760.831   810.692 2,728.144  6,325.645 
OT                                                           473.029   494.448   514.346   539.205   567.089   597.656   632.145   669.899   710.524   755.521   804.892 2,712.744  6,285.725 
On-budget:                                                                                                                                                                                    
BA                                                            13.234    14.269    15.446    16.395    17.892    19.677    21.782    24.254    28.140    31.326    34.315    83.679    223.496 
OT                                                            13.234    14.269    15.446    16.395    17.892    19.677    21.782    24.254    28.140    31.326    34.315    83.679    223.496 
Off-budget:                                                                                                                                                                                   
BA                                                           461.815   482.589   501.690   525.890   552.567   581.729   614.503   650.085   687.214   729.505   776.377 2,644.465  6,102.149 
OT                                                           459.795   480.179   498.900   522.810   549.197   577.979   610.363   645.645   682.384   724.195   770.577 2,629.065  6,062.229 
Veterans Benefits and Services (700):                                                                                                                                                         
BA                                                            31.065    33.822    38.749    36.585    34.602    37.828    38.483    39.203    42.845    38.731    42.455   181.586    383.303 
OT                                                            30.584    33.609    38.370    36.500    34.418    37.736    38.394    39.091    42.728    38.521    42.326   180.633    381.693 
Administration of Justice (750):                                                                                                                                                              
BA                                                             2.254     4.097     2.184     1.320     0.840     0.783     0.726     0.668     0.601     0.533     0.459     9.224     12.211 
OT                                                             2.228     3.293     2.582     1.505     0.769     0.673     0.616     0.558     0.495     0.429     0.356     8.822     11.276 
General Government (800):                                                                                                                                                                     
BA                                                             2.483     2.850     2.881     2.886     2.935     2.557     2.633     2.707     2.791     2.884     2.971    14.109     28.095 
OT                                                             2.540     3.033     2.845     2.827     2.910     2.697     2.645     2.701     2.774     3.016     2.938    14.312     28.386 
Net Interest (900):                                                                                                                                                                           
BA                                                           156.067   169.656   212.681   243.313   258.818   269.793   278.541   283.448   288.931   293.336   292.764 1,154.261  2,591.281 
OT                                                           156.067   169.656   212.681   243.313   258.818   269.793   278.541   283.448   288.931   293.336   292.764 1,154.261  2,591.281 
On-budget:                                                                                                                                                                                    
BA                                                           240.176   259.414   310.630   352.219   380.574   405.647   429.542   450.651   473.381   496.015   514.513 1,708.484  4,072.586 
OT                                                           240.176   259.414   310.630   352.219   380.574   405.647   429.542   450.651   473.381   496.015   514.513 1,708.484  4,072.586 
Off-budget:                                                                                                                                                                                   
BA                                                           -84.109   -89.758   -97.949  -108.906  -121.756  -135.854  -151.001  -167.203  -184.450  -202.679  -221.749  -554.223 -1,481.305 
OT                                                           -84.109   -89.758   -97.949  -108.906  -121.756  -135.854  -151.001  -167.203  -184.450  -202.679  -221.749  -554.223 -1,481.305 
Allowances (920):                                                                                                                                                                             
BA                                                                                                                                                                                            
OT                                                                                                                                                                                            
Undistributed Offsetting Receipts (950):                                                                                                                                                      
BA                                                           -50.513   -52.926   -63.401   -65.950   -61.207   -64.285   -66.705   -69.685   -72.907   -78.213   -81.493  -307.769   -676.772 
OT                                                           -50.513   -52.926   -63.401   -65.950   -61.207   -64.285   -66.705   -69.685   -72.907   -78.213   -81.493  -307.769   -676.772 
On-budget:                                                                                                                                                                                    
BA                                                           -41.104   -42.894   -52.598   -54.459   -49.035   -51.221   -52.785   -54.856   -57.007   -61.585   -63.783  -250.207   -540.223 
OT                                                           -41.104   -42.894   -52.598   -54.459   -49.035   -51.221   -52.785   -54.856   -57.007   -61.585   -63.783  -250.207   -540.223 
Off-budget:                                                                                                                                                                                   
BA                                                            -9.409   -10.032   -10.803   -11.491   -12.172   -13.064   -13.920   -14.829   -15.900   -16.628   -17.710   -57.562   -136.549 
OT                                                            -9.409   -10.032   -10.803   -11.491   -12.172   -13.064   -13.920   -14.829   -15.900   -16.628   -17.710   -57.562   -136.549 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: TOTAL SPENDING AND REVENUES
[Dollars in billions]
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year                                                     2003      2004      2005      2006      2007      2008      2009      2010      2011      2012      2013    2004-08    2004-13 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY                                                                                                                                                                                 
Total Spending:                                                                                                                                                                                
BA                                                         2,158.555 2,225.395 2,349.552 2,483.786 2,597.355 2,716.161 2,834.044 2,950.169 3,084.734 3,215.178 3,369.698 12,372.249 27,826.072 
OT                                                         2,143.410 2,232.365 2,337.286 2,450.075 2,555.757 2,674.646 2,797.065 2,916.177 3,057.083 3,172.626 3,335.342 12,250.129 27,528.422 
On-Budget:                                                                                                                                                                                     
BA                                                         1,790.046 1,838.519 1,952.639 2,076.319 2,177.306 2,282.248 2,383.491 2,481.237 2,597.191 2,704.406 2,832.479 10,327.031 23,325.835 
OT                                                         1,776.895 1,847.887 1,943.164 2,045.680 2,139.077 2,244.487 2,350.662 2,451.698 2,574.381 2,667.177 2,803.936 10,220.295 23,068.149 
Off-Budget:                                                                                                                                                                                    
BA                                                           368.509   386.876   396.913   407.467   420.049   433.913   450.553   468.932   487.543   510.772   537.219  2,045.218  4,500.237 
OT                                                           366.515   384.478   394.122   404.395   416.680   430.159   446.403   464.479   482.702   505.449   531.406  2,029.834  4,460.273 
Revenues:                                                                                                                                                                                      
Total                                                      1,855.336 1,908.024 2,107.162 2,281.891 2,444.370 2,587.249 2,736.597 2,886.701 3,028.028 3,194.074 3,372.405 11,328.696 26,546.501 
On-budget                                                  1,323.729 1,350.138 1,519.267 1,662.729 1,793.142 1,902.740 2,017.385 2,130.867 2,235.796 2,364.426 2,502.635  8,228.016 19,479.125 
Off-budget                                                   531.607   557.886   587.895   619.162   651.228   684.509   719.212   755.834   792.232   829.648   869.770  3,100.680  7,067.376 
Surplus/Deficit (-):                                                                                                                                                                           
Total                                                       -288.074  -324.341  -230.124  -168.184  -111.387   -87.397   -60.468   -29.476   -29.055    21.448    37.063   -921.433   -981.921 
On-budget                                                   -453.166  -497.749  -423.897  -382.951  -345.935  -341.747  -333.277  -320.831  -338.585  -302.751  -301.301 -1,992.279 -3,589.024 
Off-budget                                                   165.092   173.408   193.773   214.767   234.548   254.350   272.809   291.355   309.530   324.199   338.364  1,070.846  2,607.103 
Debt Held by the Public (end of year)                          3,858     4,179     4,416     4,597     4,720     4,819     4,889     4,926     4,963     4,949     4,918         na         na 
Debt Subject to Limit (end of year)                            6,687     7,264     7,794     8,302     8,777     9,251     9,719    10,179    10,660    11,112    11,564         na         na 
BY FUNCTION                                                                                                                                                                             
National Defense (050):                                                                                                                                                                        
BA                                                           392.494   400.546   420.071   440.185   460.435   480.886   494.067   507.840   522.103   536.531   551.323  2,202.123  4,813.987 
OT                                                           386.229   400.916   414.237   426.011   438.656   462.861   480.650   497.348   516.338   523.884   543.541  2,142.681  4,704.442 
International Affairs (150):                                                                                                                                                                   
BA                                                            22.506    24.750    28.631    31.090    32.271    33.120    33.775    34.466    35.315    36.148    37.006    149.862    326.572 
OT                                                            19.283    23.654    24.090    25.557    27.344    28.303    29.284    30.078    30.916    31.716    32.576    128.948    283.518 
General Science, Space, and Technology (250):                                                                                                                                                  
BA                                                            23.153    22.771    23.591    24.344    25.153    25.899    26.504    27.140    27.800    28.464    29.134    121.758    260.800 
OT                                                            21.556    22.348    23.082    23.690    24.425    25.127    25.799    26.435    27.079    27.735    28.393    118.672    254.113 
Energy (270):                                                                                                                                                                                  
BA                                                             2.074     2.583     2.707     2.609     2.431     2.988     2.977     3.085     3.181     3.288     3.401     13.318     29.250 
OT                                                             0.439     0.928     0.961     1.244     1.022     1.400     1.660     1.781     1.955     2.316     2.293      5.555     15.560 
Natural Resources and Environment (300):                                                                                                                                                       
BA                                                            30.816    29.240    30.253    30.945    31.453    32.230    33.463    34.432    35.438    36.354    37.251    154.121    331.059 
OT                                                            28.940    29.868    30.276    31.203    31.335    31.713    32.843    33.768    34.752    35.626    36.600    154.395    327.984 
Agriculture (350):                                                                                                                                                                             
BA                                                            24.418    24.192    26.481    26.197    25.567    24.607    24.998    24.293    23.781    23.390    23.155    127.044    246.661 
OT                                                            23.365    23.363    25.205    25.000    24.430    23.543    24.091    23.526    23.030    22.654    22.413    121.541    237.255 
Commerce and Housing Credit (370):                                                                                                                                                             
BA                                                             5.212     7.205     8.137     5.673     6.000     5.103     4.999     4.621     4.437     4.269     4.065     32.118     54.509 
OT                                                             2.281     3.294     3.457     0.487    -0.068    -1.562    -1.793    -2.584    -3.374    -3.945    -4.138      5.608    -10.226 
On-budget:                                                                                                                                                                                     
BA                                                             8.812     7.405     8.637     8.151     9.171     8.635     8.774     8.750     8.952     9.042     9.259     41.999     86.776 
OT                                                             5.881     3.494     3.957     2.965     3.103     1.970     1.982     1.545     1.141     0.828     1.056     15.489     22.041 
Off-budget:                                                                                                                                                                                    
BA                                                            -3.600    -0.200    -0.500    -2.478    -3.171    -3.532    -3.775    -4.129    -4.515    -4.773    -5.194     -9.881    -32.267 
OT                                                            -3.600    -0.200    -0.500    -2.478    -3.171    -3.532    -3.775    -4.129    -4.515    -4.773    -5.194     -9.881    -32.267 
Transportation (400):                                                                                                                                                                          
BA                                                            64.091    65.430    65.806    66.718    67.726    68.692    69.881    71.084    72.789    74.498    76.283    334.372    698.907 
OT                                                            67.847    69.225    66.917    66.538    67.264    68.297    69.552    70.915    72.410    74.004    75.640    338.241    700.762 
Community and Regional Development (450):                                                                                                                                                      
BA                                                            12.251    14.137    14.356    14.647    14.968    15.351    15.702    16.076    16.468    16.858    17.256     73.459    155.819 
OT                                                            15.994    15.923    15.991    15.119    14.918    14.500    14.803    15.146    15.524    15.892    16.288     76.451    154.104 
Education, Training, Employment and Social Services (500):                                                                                                                                     
BA                                                            86.169    84.748    84.381    86.670    88.650    90.811    92.393    93.935    95.832    97.635    99.536    435.260    914.591 
OT                                                            81.340    85.706    83.598    84.639    86.417    88.355    90.486    92.170    93.936    95.713    97.602    428.715    898.622 
Health (550):                                                                                                                                                                                  
BA                                                           221.878   235.103   248.663   265.462   284.237   303.780   324.153   345.696   370.681   395.391   423.754  1,337.245  3,196.920 
OT                                                           218.021   235.479   248.358   264.949   283.363   302.637   322.870   344.412   369.399   394.133   422.447  1,334.786  3,188.047 
Medicare (570):                                                                                                                                                                                
BA                                                           248.586   266.538   282.932   322.237   344.656   370.545   396.931   424.989   452.618   489.873   528.586  1,586.908  3,879.905 
OT                                                           248.434   266.865   285.912   319.017   344.943   370.436   396.685   425.263   455.994   486.064   528.861  1,587.173  3,880.040 
Income Security (600):                                                                                                                                                                         
BA                                                           326.588   315.485   325.921   331.772   336.386   344.748   352.988   360.370   374.372   377.623   391.496  1,654.312  3,511.161 
OT                                                           334.373   321.120   329.359   334.216   338.308   345.993   353.901   361.147   375.115   378.358   392.351  1,668.996  3,529.868 
Social Security (650):                                                                                                                                                                         
BA                                                           478.882   501.089   521.493   546.791   575.122   606.191   641.237   679.459   720.651   766.311   816.362  2,750.686  6,374.706 
OT                                                           476.888   498.690   518.702   543.719   571.753   602.437   637.087   675.006   715.810   760.988   810.549  2,735.301  6,334.741 
On-budget:                                                                                                                                                                                     
BA                                                            13.255    14.223    15.330    16.451    17.975    19.827    21.982    24.357    28.235    31.450    34.481     83.806    224.311 
OT                                                            13.255    14.222    15.330    16.451    17.975    19.827    21.982    24.357    28.235    31.450    34.481     83.805    224.310 
Off-budget:                                                                                                                                                                                    
BA                                                           465.627   486.866   506.163   530.340   557.147   586.364   619.255   655.102   692.416   734.861   781.881  2,666.880  6,150.395 
OT                                                           463.633   484.468   503.372   527.268   553.778   582.610   615.105   650.649   687.575   729.538   776.068  2,651.496  6,110.431 
Veterans Benefits and Services (700):                                                                                                                                                          
BA                                                            57.597    61.567    65.847    64.000    62.348    65.696    66.939    68.222    72.714    69.867    74.518    319.458    671.718 
OT                                                            57.486    61.119    65.632    63.830    62.074    65.557    66.695    67.938    72.418    69.477    74.198    318.212    668.938 
Administration of Justice (750):                                                                                                                                                               
BA                                                            38.543    37.313    37.676    37.586    37.966    38.884    39.846    40.891    42.160    43.459    44.808    189.425    400.589 
OT                                                            37.712    40.898    39.007    38.030    37.862    38.639    39.669    40.703    41.855    43.131    44.471    194.436    404.265 
General Government (800):                                                                                                                                                                      
BA                                                            18.178    19.779    20.038    19.672    19.976    19.789    20.208    20.620    21.342    22.090    22.881     99.254    206.395 
OT                                                            18.103    19.597    20.226    19.731    19.737    19.584    19.800    20.175    20.874    21.751    22.374     98.875    203.849 
Net Interest (900):                                                                                                                                                                            
BA                                                           155.632   166.912   205.969   233.138   245.717   253.445   259.512   262.464   265.793   268.782   267.822  1,105.181  2,429.554 
OT                                                           155.632   166.912   205.969   233.138   245.717   253.445   259.512   262.464   265.793   268.782   267.822  1,105.181  2,429.554 
On-budget:                                                                                                                                                                                     
BA                                                           239.741   256.670   303.916   342.042   367.472   389.300   410.519   429.676   450.251   471.470   489.580  1,659.400  3,910.896 
OT                                                           239.741   256.670   303.916   342.042   367.472   389.300   410.519   429.676   450.251   471.470   489.580  1,659.400  3,910.896 
Off-budget:                                                                                                                                                                                    
BA                                                           -84.109   -89.758   -97.947  -108.904  -121.755  -135.855  -151.007  -167.212  -184.458  -202.688  -221.758   -554.219 -1,481.342 
OT                                                           -84.109   -89.758   -97.947  -108.904  -121.755  -135.855  -151.007  -167.212  -184.458  -202.688  -221.758   -554.219 -1,481.342 
Allowances (920):                                                                                                                                                                              
BA                                                                      -1.067                                                                                               -1.067     -1.067 
OT                                                                      -0.614    -0.292    -0.093    -0.036    -0.015                                                       -1.050     -1.050 
Undistributed Offsetting Receipts (950):                                                                                                                                                       
BA                                                           -50.513   -52.926   -63.401   -65.950   -63.707   -66.604   -66.529   -69.514   -72.741   -75.653   -78.939   -312.588   -675.964 
OT                                                           -50.513   -52.926   -63.401   -65.950   -63.707   -66.604   -66.529   -69.514   -72.741   -75.653   -78.939   -312.588   -675.964 
On-budget:                                                                                                                                                                                     
BA                                                           -41.104   -42.894   -52.598   -54.459   -51.535   -53.540   -52.609   -54.685   -56.841   -59.025   -61.229   -255.026   -539.415 
OT                                                           -41.104   -42.894   -52.598   -54.459   -51.535   -53.540   -52.609   -54.685   -56.841   -59.025   -61.229   -255.026   -539.415 
Off-budget:                                                                                                                                                                                    
BA                                                            -9.409   -10.032   -10.803   -11.491   -12.172   -13.064   -13.920   -14.829   -15.900   -16.628   -17.710    -57.562   -136.549 
OT                                                            -9.409   -10.032   -10.803   -11.491   -12.172   -13.064   -13.920   -14.829   -15.900   -16.628   -17.710    -57.562   -136.549 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: DISCRETIONARY SPENDING
[Dollars in billions]
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year                                                   2003    2004    2005    2006    2007    2008    2009    2010    2011      2012      2013   2004-08   2004-13 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY                                                                                                                                                             
Total Spending:                                                                                                                                                            
BA                                                         765.796 775.386 802.587 830.682 860.381 891.601 915.318 939.877 965.492   991.479 1,018.043 4,160.637 8,990.846 
OT                                                         804.682 831.265 841.708 857.651 878.630 911.456 940.851 968.691 999.228 1,018.712 1,050.542 4,320.710 9,298.734 
Defense                                                                                                                                                                    
BA                                                         392.137 400.058 419.437 439.507 459.729 480.129 493.288 507.026 521.259   535.680   550.432 2,198.860 4,806.545 
OT                                                         386.373 400.561 413.682 425.379 437.995 462.157 479.923 496.588 515.552   523.096   542.715 2,139.774 4,697.648 
Nondefense                                                                                                                                                                 
BA                                                         373.659 375.328 383.150 391.175 400.652 411.472 422.030 432.851 444.233   455.799   467.611 1,961.777 4,184.301 
OT                                                         418.309 430.704 428.026 432.272 440.635 449.299 460.928 472.103 483.676   495.616   507.827 2,180.936 4,601.086 
BY FUNCTION                                                                                                                                                         
National Defense (050):                                                                                                                                                    
BA                                                         392.137 400.058 419.437 439.507 459.729 480.129 493.288 507.026 521.259   535.680   550.432 2,198.860 4,806.545 
OT                                                         386.373 400.561 413.682 425.379 437.995 462.157 479.923 496.588 515.552   523.096   542.715 2,139.774 4,697.648 
International Affairs (150):                                                                                                                                               
BA                                                          25.407  27.843  29.122  30.620  31.842  32.791  33.546  34.351  35.187    36.016    36.851   152.218   328.169 
OT                                                          26.000  26.376  26.888  28.455  30.266  31.234  32.310  33.233  34.097    34.935    35.754   143.219   313.548 
General Science, Space, and Technology (250):                                                                                                                              
BA                                                          23.047  22.741  23.561  24.314  25.122  25.867  26.472  27.108  27.767    28.430    29.100   121.605   260.482 
OT                                                          21.457  22.251  22.989  23.627  24.381  25.095  25.768  26.404  27.047    27.703    28.360   118.343   253.625 
Energy (270):                                                                                                                                                              
BA                                                           3.237   3.625   3.888   3.813   3.794   4.752   4.840   4.960   5.086     5.211     5.344    19.872    45.313 
OT                                                           3.151   3.614   3.856   3.915   3.816   4.562   4.804   4.919   5.043     5.167     5.297    19.763    44.993 
Natural Resources and Environment (300):                                                                                                                                   
BA                                                          29.238  27.018  27.588  28.150  28.751  29.646  30.518  31.431  32.374    33.340    34.320   141.153   303.136 
OT                                                          27.857  28.167  28.205  28.427  28.771  29.305  30.073  30.914  31.800    32.700    33.657   142.875   302.019 
Agriculture (350):                                                                                                                                                         
BA                                                           5.727   5.109   5.467   5.569   5.691   5.838   6.005   6.177   6.354     6.538     6.728    27.674    59.476 
OT                                                           5.852   5.537   5.334   5.462   5.599   5.783   5.943   6.116   6.287     6.471     6.658    27.715    59.190 
Commerce and Housing Credit (370):                                                                                                                                         
BA                                                           0.150  -0.503  -0.217  -0.489   0.595   0.916   1.225   1.280   1.369     1.439     1.521     0.302     7.136 
OT                                                           0.054   0.147  -0.314  -0.564   0.523   0.730   1.042   1.150   1.234     1.333     1.387     0.522     6.668 
On-budget:                                                                                                                                                                 
BA                                                           0.150  -0.503  -0.217  -0.489   0.595   0.916   1.225   1.280   1.369     1.439     1.521     0.302     7.136 
OT                                                           0.054   0.147  -0.314  -0.564   0.523   0.730   1.042   1.150   1.234     1.333     1.387     0.522     6.668 
Off-budget:                                                                                                                                                                
BA                                                                                                                                                                         
OT                                                                                                                                                                         
Transportation (400):                                                                                                                                                      
BA                                                          22.611  22.225  22.140  22.544  23.010  23.554  24.279  25.042  25.828    26.635    27.468   113.473   242.725 
OT                                                          65.184  66.995  64.772  64.536  65.335  66.443  67.687  69.059  70.519    72.070    73.653   328.081   681.069 
Community and Regional Development (450):                                                                                                                                  
BA                                                          11.725  13.909  14.227  14.527  14.849  15.313  15.668  16.043  16.434    16.824    17.218    72.825   155.012 
OT                                                          16.054  16.016  16.116  15.289  15.145  14.775  15.116  15.491  15.866    16.227    16.614    77.341   156.655 
Education, Training, Employment and Social Services (500):                                                                                                                 
BA                                                          72.875  75.390  74.170  75.775  77.459  79.444  80.873  82.381  83.947    85.515    87.091   382.238   802.045 
OT                                                          71.958  74.172  73.051  74.414  75.943  77.662  79.647  81.218  82.757    84.313    85.892   375.242   789.069 
Health (550):                                                                                                                                                              
BA                                                          49.468  48.063  49.093  50.183  51.285  52.591  53.850  55.162  56.522    57.887    59.271   251.215   533.907 
OT                                                          44.349  47.097  48.243  49.086  50.216  51.105  52.282  53.540  54.849    56.186    57.537   245.747   520.141 
Medicare (570):                                                                                                                                                            
BA                                                           3.798   3.619   3.687   3.785   3.888   4.009   4.221   4.433   4.662     4.936     5.234    18.988    42.474 
OT                                                           3.797   3.668   3.723   3.795   3.883   4.000   4.192   4.401   4.629     4.891     5.184    19.069    42.366 
Income Security (600):                                                                                                                                                     
BA                                                          44.020  44.436  45.235  46.150  46.305  46.540  47.533  48.538  49.589    50.639    51.691   228.666   476.656 
OT                                                          50.781  50.570  48.947  49.387  49.075  48.944  49.724  50.427  51.286    52.128    52.985   246.923   503.473 
Social Security (650):                                                                                                                                                     
BA                                                           3.833   4.160   4.226   4.310   4.407   4.519   4.671   4.829   4.991     5.158     5.333    21.622    46.604 
OT                                                           3.859   4.171   4.225   4.318   4.408   4.515   4.661   4.816   4.980     5.145     5.320    21.637    46.559 
On-budget:                                                                                                                                                                 
BA                                                           0.021   0.024   0.024   0.025   0.026   0.026   0.027   0.028   0.029     0.030     0.031     0.125     0.270 
OT                                                           0.021   0.023   0.024   0.025   0.026   0.026   0.027   0.028   0.029     0.030     0.031     0.124     0.269 
Off-budget:                                                                                                                                                                
BA                                                           3.812   4.136   4.202   4.285   4.381   4.493   4.644   4.801   4.962     5.128     5.302    21.497    46.334 
OT                                                           3.838   4.148   4.201   4.293   4.382   4.489   4.634   4.788   4.951     5.115     5.289    21.513    46.290 
Veterans Benefits and Services (700):                                                                                                                                      
BA                                                          26.532  28.162  27.729  28.153  28.610  29.174  30.128  31.102  32.116    33.159    34.234   141.828   302.567 
OT                                                          26.902  27.922  27.886  28.066  28.515  29.124  29.969  30.924  31.931    32.968    34.036   141.513   301.341 
Administration of Justice (750):                                                                                                                                           
BA                                                          36.289  33.314  35.592  36.372  37.247  38.266  39.328  40.482  41.819    43.190    44.612   180.791   390.222 
OT                                                          35.484  37.693  36.532  36.636  37.212  38.127  39.256  40.398  41.614    42.961    44.373   186.200   394.802 
General Government (800):                                                                                                                                                  
BA                                                          15.702  17.284  17.642  17.399  17.797  18.252  18.873  19.532  20.188    20.882    21.595    88.374   189.444 
OT                                                          15.570  16.922  17.865  17.516  17.583  17.910  18.454  19.093  19.737    20.418    21.120    87.796   186.618 
Allowances (920):                                                                                                                                                          
BA                                                                  -1.067                                                                                -1.067    -1.067 
OT                                                                  -0.614  -0.292  -0.093  -0.036  -0.015                                                -1.050    -1.050 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: MANDATORY SPENDING
[Dollars in billions]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year                                                     2003      2004      2005      2006      2007      2008      2009      2010      2011      2012      2013   2004-08    2004-13 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY                                                                                                                                                                                
Total Spending:                                                                                                                                                                               
BA                                                         1,392.759 1,450.009 1,546.965 1,653.104 1,736.974 1,824.560 1,918.726 2,010.292 2,119.242 2,223.699 2,351.655 8,211.612 18,835.226 
OT                                                         1,338.728 1,401.100 1,495.578 1,592.424 1,677.127 1,763.190 1,856.214 1,947.486 2,057.855 2,153.914 2,284.800 7,929.419 18,229.688 
On-budget:                                                                                                                                                                                    
BA                                                         1,028.062 1,067.269 1,154.254 1,249.922 1,321.306 1,395.140 1,472.817 1,546.161 1,636.661 1,718.055 1,819.738 6,187.891 14,381.323 
OT                                                           976.051 1,020.770 1,105.657 1,192.322 1,264.829 1,337.520 1,414.445 1,487.795 1,580.104 1,653.580 1,758.683 5,921.098 13,815.705 
Off-budget:                                                                                                                                                                                   
BA                                                           364.697   382.740   392.711   403.182   415.668   429.420   445.909   464.131   482.581   505.644   531.917 2,023.721  4,453.903 
OT                                                           362.677   380.330   389.921   400.102   412.298   425.670   441.769   459.691   477.751   500.334   526.117 2,008.321  4,413.983 
BY FUNCTION                                                                                                                                                                            
National Defense (050):                                                                                                                                                                       
BA                                                             0.357     0.488     0.634     0.678     0.706     0.757     0.779     0.814     0.844     0.851     0.891     3.263      7.442 
OT                                                            -0.144     0.355     0.555     0.632     0.661     0.704     0.727     0.760     0.786     0.788     0.826     2.907      6.794 
International Affairs (150):                                                                                                                                                                  
BA                                                            -2.901    -3.093    -0.491     0.470     0.429     0.329     0.229     0.115     0.128     0.132     0.155    -2.356     -1.597 
OT                                                            -6.717    -2.722    -2.798    -2.898    -2.922    -2.931    -3.026    -3.155    -3.181    -3.219    -3.178   -14.271    -30.030 
General Science, Space, and Technology (250):                                                                                                                                                 
BA                                                             0.106     0.030     0.030     0.030     0.031     0.032     0.032     0.032     0.033     0.034     0.034     0.153      0.318 
OT                                                             0.099     0.097     0.093     0.063     0.044     0.032     0.031     0.031     0.032     0.032     0.033     0.329      0.488 
Energy (270):                                                                                                                                                                                 
BA                                                            -1.163    -1.042    -1.181    -1.204    -1.363    -1.764    -1.863    -1.875    -1.905    -1.923    -1.943    -6.554    -16.063 
OT                                                            -2.712    -2.686    -2.895    -2.671    -2.794    -3.162    -3.144    -3.138    -3.088    -2.851    -3.004   -14.208    -29.433 
Natural Resources and Environment (300):                                                                                                                                                      
BA                                                             1.578     2.222     2.665     2.795     2.702     2.584     2.945     3.001     3.064     3.014     2.931    12.968     27.923 
OT                                                             1.083     1.701     2.071     2.776     2.564     2.408     2.770     2.854     2.952     2.926     2.943    11.520     25.965 
Agriculture (350):                                                                                                                                                                            
BA                                                            18.691    19.083    21.014    20.628    19.876    18.769    18.993    18.116    17.427    16.852    16.427    99.370    187.185 
OT                                                            17.513    17.826    19.871    19.538    18.831    17.760    18.148    17.410    16.743    16.183    15.755    93.826    178.065 
Commerce and Housing Credit (370):                                                                                                                                                            
BA                                                             5.062     7.708     8.354     6.162     5.405     4.187     3.774     3.341     3.068     2.830     2.544    31.816     47.373 
OT                                                             2.227     3.147     3.771     1.051    -0.591    -2.292    -2.835    -3.734    -4.608    -5.278    -5.525     5.086    -16.894 
On-budget:                                                                                                                                                                                    
BA                                                             8.662     7.908     8.854     8.640     8.576     7.719     7.549     7.470     7.583     7.603     7.738    41.697     79.640 
OT                                                             5.827     3.347     4.271     3.529     2.580     1.240     0.940     0.395    -0.093    -0.505    -0.331    14.967     15.373 
Off-budget:                                                                                                                                                                                   
BA                                                            -3.600    -0.200    -0.500    -2.478    -3.171    -3.532    -3.775    -4.129    -4.515    -4.773    -5.194    -9.881    -32.267 
OT                                                            -3.600    -0.200    -0.500    -2.478    -3.171    -3.532    -3.775    -4.129    -4.515    -4.773    -5.194    -9.881    -32.267 
Transportation (400):                                                                                                                                                                         
BA                                                            41.480    43.205    43.666    44.174    44.716    45.138    45.602    46.042    46.961    47.863    48.815   220.899    456.182 
OT                                                             2.663     2.230     2.145     2.002     1.929     1.854     1.865     1.856     1.891     1.934     1.987    10.160     19.693 
Community and Regional Development (450):                                                                                                                                                     
BA                                                             0.526     0.228     0.129     0.120     0.119     0.038     0.034     0.033     0.034     0.034     0.038     0.634      0.807 
OT                                                            -0.060    -0.093    -0.125    -0.170    -0.227    -0.275    -0.313    -0.345    -0.342    -0.335    -0.326    -0.890     -2.551 
Education, Training, Employment and Social Services (500):                                                                                                                                    
BA                                                            13.294     9.358    10.211    10.895    11.191    11.367    11.520    11.554    11.885    12.120    12.445    53.022    112.546 
OT                                                             9.382    11.534    10.547    10.225    10.474    10.693    10.839    10.952    11.179    11.400    11.710    53.473    109.553 
Health (550):                                                                                                                                                                                 
BA                                                           172.410   187.040   199.570   215.279   232.952   251.189   270.303   290.534   314.159   337.504   364.483 1,086.030  2,663.013 
OT                                                           173.672   188.382   200.115   215.863   233.147   251.532   270.588   290.872   314.550   337.947   364.910 1,089.039  2,667.906 
Medicare (570):                                                                                                                                                                               
BA                                                           244.788   262.919   279.245   318.452   340.768   366.536   392.710   420.556   447.956   484.937   523.352 1,567.920  3,837.431 
OT                                                           244.637   263.197   282.189   315.222   341.060   366.436   392.493   420.862   451.365   481.173   523.677 1,568.104  3,837.674 
Income Security (600):                                                                                                                                                                        
BA                                                           282.568   271.049   280.686   285.622   290.081   298.208   305.455   311.832   324.783   326.984   339.805 1,425.646  3,034.505 
OT                                                           283.592   270.550   280.412   284.829   289.233   297.049   304.177   310.720   323.829   326.230   339.366 1,422.073  3,026.395 
Social Security (650):                                                                                                                                                                        
BA                                                           475.049   496.929   517.267   542.481   570.715   601.672   636.566   674.630   715.660   761.153   811.029 2,729.064  6,328.102 
OT                                                           473.029   494.519   514.477   539.401   567.345   597.922   632.426   670.190   710.830   755.843   805.229 2,713.664  6,288.182 
On-budget:                                                                                                                                                                                    
BA                                                            13.234    14.199    15.306    16.426    17.949    19.801    21.955    24.329    28.206    31.420    34.450    83.681    224.041 
OT                                                            13.234    14.199    15.306    16.426    17.949    19.801    21.955    24.329    28.206    31.420    34.450    83.681    224.041 
Off-budget:                                                                                                                                                                                   
BA                                                           461.815   482.730   501.961   526.055   552.766   581.871   614.611   650.301   687.454   729.733   776.579 2,645.383  6,104.061 
OT                                                           459.795   480.320   499.171   522.975   549.396   578.121   610.471   645.861   682.624   724.423   770.779 2,629.983  6,064.141 
Veterans Benefits and Services (700):                                                                                                                                                         
BA                                                            31.065    33.405    38.118    35.847    33.738    36.522    36.811    37.120    40.598    36.708    40.284   177.630    369.151 
OT                                                            30.584    33.197    37.746    35.764    33.559    36.433    36.726    37.014    40.487    36.509    40.162   176.699    367.597 
Administration of Justice (750):                                                                                                                                                              
BA                                                             2.254     3.999     2.084     1.214     0.719     0.618     0.518     0.409     0.341     0.269     0.196     8.634     10.367 
OT                                                             2.228     3.205     2.475     1.394     0.650     0.512     0.413     0.305     0.241     0.170     0.098     8.236      9.463 
General Government (800):                                                                                                                                                                     
BA                                                             2.476     2.495     2.396     2.273     2.179     1.537     1.335     1.088     1.154     1.208     1.286    10.880     16.951 
OT                                                             2.533     2.675     2.361     2.215     2.154     1.674     1.346     1.082     1.137     1.333     1.254    11.079     17.231 
Net Interest (900):                                                                                                                                                                           
BA                                                           155.632   166.912   205.969   233.138   245.717   253.445   259.512   262.464   265.793   268.782   267.822 1,105.181  2,429.554 
OT                                                           155.632   166.912   205.969   233.138   245.717   253.445   259.512   262.464   265.793   268.782   267.822 1,105.181  2,429.554 
On-budget:                                                                                                                                                                                    
BA                                                           239.741   256.670   303.916   342.042   367.472   389.300   410.519   429.676   450.251   471.470   489.580 1,659.400  3,910.896 
OT                                                           239.741   256.670   303.916   342.042   367.472   389.300   410.519   429.676   450.251   471.470   489.580 1,659.400  3,910.896 
Off-budget:                                                                                                                                                                                   
BA                                                           -84.109   -89.758   -97.947  -108.904  -121.755  -135.855  -151.007  -167.212  -184.458  -202.688  -221.758  -554.219 -1,481.342 
OT                                                           -84.109   -89.758   -97.947  -108.904  -121.755  -135.855  -151.007  -167.212  -184.458  -202.688  -221.758  -554.219 -1,481.342 
Allowances (920):                                                                                                                                                                             
BA                                                                                                                                                                                            
OT                                                                                                                                                                                            
Undistributed Offsetting Receipts (950):                                                                                                                                                      
BA                                                           -50.513   -52.926   -63.401   -65.950   -63.707   -66.604   -66.529   -69.514   -72.741   -75.653   -78.939  -312.588   -675.964 
OT                                                           -50.513   -52.926   -63.401   -65.950   -63.707   -66.604   -66.529   -69.514   -72.741   -75.653   -78.939  -312.588   -675.964 
On-budget:                                                                                                                                                                                    
BA                                                           -41.104   -42.894   -52.598   -54.459   -51.535   -53.540   -52.609   -54.685   -56.841   -59.025   -61.229  -255.026   -539.415 
OT                                                           -41.104   -42.894   -52.598   -54.459   -51.535   -53.540   -52.609   -54.685   -56.841   -59.025   -61.229  -255.026   -539.415 
Off-budget:                                                                                                                                                                                   
BA                                                            -9.409   -10.032   -10.803   -11.491   -12.172   -13.064   -13.920   -14.829   -15.900   -16.628   -17.710   -57.562   -136.549 
OT                                                            -9.409   -10.032   -10.803   -11.491   -12.172   -13.064   -13.920   -14.829   -15.900   -16.628   -17.710   -57.562   -136.549 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SENATE-PASSED FY 2004 BUDGET RESOLUTION AMENDMENT:  AGGREGATE AND FUNCTION LEVELS
[Dollars in billions]
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Function                                                   2002 Actual      2003      2004      2005      2006      2007      2008      2009      2010      2011      2012      2013    2004-08    2004-13 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
050--National Defense:                                                                                                                                                                                     
BA                                                             362.106   395.494   400.658   420.402   440.769   461.400   482.340   489.209   495.079   502.947   510.984   519.393  2,205.569  4,723.181 
OT                                                             348.555   389.229   401.064   414.536   426.591   439.621   464.315   477.989   487.993   500.478   501.628   514.885  2,146.127  4,629.100 
Discretionary:                                                                                                                                                                                             
BA                                                             360.988   395.137   400.058   419.437   439.507   459.729   480.129   486.788   492.526   500.259   508.180   516.432  2,198.860  4,703.045 
OT                                                             348.511   389.373   400.561   413.682   425.379   437.995   462.157   475.620   485.494   497.848   498.887   511.989  2,139.774  4,609.612 
Mandatory:                                                                                                                                                                                                 
BA                                                               1.118     0.357     0.600     0.965     1.262     1.671     2.211     2.421     2.553     2.688     2.804     2.961      6.709     20.136 
OT                                                               0.044    -0.144     0.503     0.854     1.212     1.626     2.158     2.369     2.499     2.630     2.741     2.896      6.353     19.488 
150--International Affairs:                                                                                                                                                                                
BA                                                              25.144    22.506    25.681    29.734    32.308    33.603    34.611    35.413    36.258    37.136    38.005    38.885    155.937    341.634 
OT                                                              22.357    19.283    24.207    24.917    26.539    28.464    29.604    30.733    31.689    32.565    33.408    34.298    133.730    296.422 
Discretionary:                                                                                                                                                                                             
BA                                                              25.208    25.407    28.651    30.034    31.579    32.854    33.845    34.630    35.459    36.322    37.176    38.037    156.963    338.587 
OT                                                              26.229    26.000    26.775    27.522    29.195    31.084    32.119    33.225    34.179    35.072    35.935    36.778    146.694    321.882 
Mandatory:                                                                                                                                                                                                 
BA                                                              -0.064    -2.901    -2.970    -0.300     0.729     0.749     0.766     0.783     0.799     0.814     0.829     0.848     -1.026      3.047 
OT                                                              -3.872    -6.717    -2.568    -2.605    -2.656    -2.620    -2.515    -2.492    -2.490    -2.507    -2.527    -2.480    -12.964    -25.460 
250--General Science, Space and Technology:                                                                                                                                                                
BA                                                              22.016    23.153    23.603    24.433    25.217    26.055    26.832    27.462    28.121    28.805    29.492    30.185    126.140    270.205 
OT                                                              20.772    21.556    22.728    23.715    24.420    25.202    25.942    26.639    27.296    27.963    28.639    29.319    122.007    261.863 
Discretionary:                                                                                                                                                                                             
BA                                                              21.922    23.047    23.573    24.402    25.186    26.023    26.799    27.429    28.087    28.770    29.456    30.149    125.983    269.874 
OT                                                              20.715    21.457    22.630    23.620    24.356    25.157    25.909    26.607    27.263    27.929    28.605    29.284    121.672    261.360 
Mandatory:                                                                                                                                                                                                 
BA                                                               0.094     0.106     0.030     0.031     0.031     0.032     0.033     0.033     0.034     0.035     0.036     0.036      0.157      0.331 
OT                                                               0.057     0.099     0.098     0.095     0.064     0.045     0.033     0.032     0.033     0.034     0.034     0.035      0.335      0.503 
270--Energy:                                                                                                                                                                                               
BA                                                               0.400     2.074     2.634     2.797     2.714     2.540     3.080     3.090     3.194     3.296     3.408     3.520     13.765     30.273 
OT                                                               0.483     0.439     0.873     0.947     1.272     1.069     1.419     1.686     1.794     1.976     2.357     2.326      5.578     15.718 
Discretionary:                                                                                                                                                                                             
BA                                                               3.248     3.237     3.672     3.975     3.914     3.902     4.858     4.975     5.096     5.227     5.357     5.489     20.321     46.465 
OT                                                               2.974     3.151     3.577     3.869     3.971     3.901     4.647     4.911     5.031     5.157     5.286     5.415     19.963     45.764 
Mandatory:                                                                                                                                                                                                 
BA                                                              -2.848    -1.163    -1.038    -1.178    -1.200    -1.362    -1.778    -1.885    -1.902    -1.931    -1.949    -1.969     -6.556    -16.192 
OT                                                              -2.491    -2.712    -2.704    -2.922    -2.699    -2.832    -3.228    -3.225    -3.237    -3.181    -2.929    -3.089    -14.385    -30.046 
300--Natural Resources and Environment:                                                                                                                                                                    
BA                                                              30.636    30.816    35.253    32.639    33.261    33.576    34.245    35.370    36.198    36.958    37.592    38.316    168.974    353.408 
OT                                                              29.459    28.940    31.378    32.325    33.889    34.128    34.119    34.701    35.512    36.267    36.874    37.677    165.840    346.870 
Discretionary:                                                                                                                                                                                             
BA                                                              29.124    29.238    32.836    29.802    30.097    30.583    31.319    31.998    32.705    33.448    34.196    34.970    154.637    321.954 
OT                                                              28.949    27.857    29.489    30.090    30.936    31.392    31.431    31.542    32.199    32.899    33.595    34.342    153.339    317.915 
Mandatory:                                                                                                                                                                                                 
BA                                                               1.512     1.578     2.417     2.837     3.164     2.993     2.926     3.372     3.493     3.510     3.396     3.346     14.337     31.454 
OT                                                               0.510     1.083     1.889     2.235     2.954     2.736     2.688     3.159     3.313     3.368     3.279     3.335     12.501     28.955 
350--Agriculture:                                                                                                                                                                                          
BA                                                              23.821    24.418    24.457    26.844    26.661    26.141    25.363    25.943    25.407    24.864    24.455    24.185    129.466    254.320 
OT                                                              22.188    23.365    23.530    25.604    25.426    24.949    24.237    24.979    24.578    24.053    23.660    23.386    123.746    244.402 
Discretionary:                                                                                                                                                                                             
BA                                                               5.688     5.727     5.243     5.609     5.734     5.876     6.037     6.208     6.386     6.575     6.767     6.962     28.499     61.397 
OT                                                               5.306     5.852     5.589     5.533     5.613     5.758     5.958     6.128     6.303     6.487     6.679     6.871     28.451     60.919 
Mandatory:                                                                                                                                                                                                 
BA                                                              18.133    18.691    19.214    21.235    20.927    20.265    19.326    19.735    19.021    18.289    17.688    17.223    100.967    192.923 
OT                                                              16.882    17.513    17.941    20.071    19.813    19.191    18.279    18.851    18.275    17.566    16.981    16.515     95.295    183.483 
370--Commerce and Housing Credit:                                                                                                                                                                          
BA                                                              11.262     5.212     7.228     8.155     5.714     5.367     5.123     4.663     4.190     3.783     3.628     3.281     31.587     51.132 
OT                                                              -0.385     2.281     3.286     3.462     0.550    -0.608    -1.377    -1.844    -2.679    -3.669    -4.219    -4.526      5.313    -11.624 
Discretionary:                                                                                                                                                                                             
BA                                                               0.693     0.150    -0.496    -0.269    -0.554     0.534     0.878     0.767     0.661     0.534     0.625     0.574      0.093      3.254 
OT                                                               1.230     0.054     0.092    -0.393    -0.650     0.449     0.686     0.633     0.549     0.414     0.502     0.450      0.184      2.732 
Mandatory:                                                                                                                                                                                                 
BA                                                              10.569     5.062     7.724     8.424     6.268     4.833     4.245     3.896     3.529     3.249     3.003     2.707     31.494     47.878 
OT                                                              -1.615     2.227     3.194     3.855     1.200    -1.057    -2.063    -2.477    -3.228    -4.083    -4.721    -4.976      5.129    -14.356 
370 on-budget:                                                                                                                                                                                             
BA                                                               8.191     8.812     7.428     8.655     8.192     8.538     8.655     8.438     8.319     8.298     8.401     8.475     41.468     83.399 
OT                                                               0.266     5.881     3.486     3.962     3.028     2.563     2.155     1.931     1.450     0.846     0.554     0.668     15.194     20.643 
Discretionary:                                                                                                                                                                                             
BA                                                               0.693     0.150    -0.496    -0.269    -0.554     0.534     0.878     0.767     0.661     0.534     0.625     0.574      0.093      3.254 
OT                                                               1.230     0.054     0.092    -0.393    -0.650     0.449     0.686     0.633     0.549     0.414     0.502     0.450      0.184      2.732 
Mandatory:                                                                                                                                                                                                 
BA                                                               7.498     8.662     7.924     8.924     8.746     8.004     7.777     7.671     7.658     7.764     7.776     7.901     41.375     80.145 
OT                                                              -0.964     5.827     3.394     4.355     3.678     2.114     1.469     1.298     0.901     0.432     0.052     0.218     15.010     17.911 
400--Transportation:                                                                                                                                                                                       
BA                                                              68.887    64.091    75.783    76.502    77.515    79.931    82.747    85.361    72.323    73.183    74.067    74.987    392.478    772.399 
OT                                                              61.862    67.847    71.555    71.581    73.035    74.938    77.285    79.865    79.035    75.687    74.864    75.124    368.394    752.969 
Discretionary:                                                                                                                                                                                             
BA                                                              23.820    22.611    25.715    25.040    24.857    25.840    26.936    28.756    26.221    27.040    27.875    28.739    128.388    267.019 
OT                                                              57.292    65.184    69.294    69.396    70.986    72.954    75.358    77.909    77.068    73.685    72.816    73.023    357.988    732.489 
Mandatory:                                                                                                                                                                                                 
BA                                                              45.067    41.480    50.068    51.462    52.658    54.091    55.811    56.605    46.102    46.143    46.192    46.248    264.090    505.380 
OT                                                               4.570     2.663     2.261     2.185     2.049     1.984     1.927     1.956     1.967     2.002     2.048     2.101     10.406     20.480 
450--Community and Regional Development:                                                                                                                                                                   
BA                                                              23.361    15.751    14.323    14.398    14.581    14.796    15.005    15.240    15.493    15.752    16.015    16.283     73.103    151.886 
OT                                                              12.991    17.569    16.716    16.696    15.553    15.096    14.383    14.558    14.761    15.010    15.252    15.519     78.444    153.543 
Discretionary:                                                                                                                                                                                             
BA                                                              23.051    15.225    13.826    13.999    14.188    14.401    14.688    14.921    15.168    15.425    15.686    15.950     71.102    148.252 
OT                                                              14.108    17.629    16.787    16.517    15.474    15.059    14.390    14.602    14.835    15.079    15.313    15.569     78.227    153.624 
Mandatory:                                                                                                                                                                                                 
BA                                                               0.310     0.526     0.497     0.399     0.393     0.395     0.317     0.319     0.325     0.327     0.329     0.333      2.001      3.634 
OT                                                              -1.117    -0.060    -0.071     0.179     0.079     0.037    -0.007    -0.044    -0.074    -0.069    -0.061    -0.050      0.217     -0.081 
500--Education, Training, Employment, and Social Services:                                                                                                                                                 
BA                                                              79.861    82.974    97.610    91.777    92.818    95.959    99.315   102.203   104.059   106.160   108.544   110.143    477.479  1,008.588 
OT                                                              70.544    81.531    86.279    91.286    91.964    92.948    95.279    98.470   101.281   103.536   105.570   107.642    457.757    974.256 
Discretionary:                                                                                                                                                                                             
BA                                                              71.275    72.875    86.322    81.280    81.575    84.353    87.416    90.037    91.731    93.495    95.632    96.904    420.946    888.745 
OT                                                              62.751    71.958    75.843    81.012    81.317    82.028    84.040    87.013    89.584    91.609    93.411    95.171    404.241    861.029 
Mandatory:                                                                                                                                                                                                 
BA                                                               8.586    10.099    11.288    10.497    11.243    11.606    11.899    12.166    12.328    12.665    12.912    13.239     56.533    119.843 
OT                                                               7.793     9.573    10.436    10.274    10.647    10.920    11.239    11.457    11.697    11.927    12.159    12.471     53.516    113.227 
550--Health:                                                                                                                                                                                               
BA                                                             205.120   222.913   248.464   264.948   284.216   304.438   326.942   350.373   375.419   401.552   415.777   445.554  1,429.008  3,417.683 
OT                                                             196.521   217.881   246.671   264.680   284.024   303.522   325.618   348.889   373.890   400.014   414.359   444.147  1,424.514  3,405.813 
Discretionary:                                                                                                                                                                                             
BA                                                              45.789    49.468    52.712    50.667    51.800    52.950    54.299    55.607    56.972    58.387    59.806    61.246    262.428    554.446 
OT                                                              39.426    44.349    50.799    49.394    50.423    51.637    52.576    53.801    55.102    56.460    57.851    59.252    254.828    537.294 
Mandatory:                                                                                                                                                                                                 
BA                                                             159.331   173.445   195.752   214.281   232.416   251.488   272.643   294.766   318.447   343.165   355.971   384.308  1,166.580  2,863.237 
OT                                                             157.095   173.532   195.872   215.286   233.601   251.885   273.042   295.088   318.788   343.554   356.508   384.895  1,169.686  2,868.519 
570--Medicare:                                                                                                                                                                                             
BA                                                             231.399   248.586   265.178   282.869   322.045   344.178   369.577   395.685   422.684   453.721   488.367   526.981  1,583.847  3,871.285 
OT                                                             230.855   248.434   265.443   285.817   318.806   344.448   369.452   395.424   422.942   457.078   484.541   527.237  1,583.966  3,871.188 
Discretionary:                                                                                                                                                                                             
BA                                                               3.653     3.798     3.739     3.807     3.906     4.014     4.138     4.353     4.572     4.809     5.089     5.396     19.604     43.823 
OT                                                               3.156     3.797     3.726     3.811     3.897     3.992     4.113     4.309     4.524     4.757     5.027     5.327     19.539     43.483 
Mandatory:                                                                                                                                                                                                 
BA                                                             227.746   244.788   261.439   279.062   318.139   340.164   365.439   391.332   418.112   448.912   483.278   521.585  1,564.243  3,827.462 
OT                                                             227.699   244.637   261.717   282.006   314.909   340.456   365.339   391.115   418.418   452.321   479.514   521.910  1,564.427  3,827.705 
600--Income Security:                                                                                                                                                                                      
BA                                                             309.367   326.390   319.513   333.810   341.805   349.191   362.006   373.681   385.152   400.573   404.045   418.978  1,706.325  3,688.754 
OT                                                             312.511   334.169   324.701   337.157   344.322   350.983   363.115   374.384   385.671   401.003   404.453   419.551  1,720.278  3,705.341 
Discretionary:                                                                                                                                                                                             
BA                                                              42.379    44.020    45.712    48.760    50.311    52.004    53.714    55.441    57.295    59.143    61.023    62.884    250.501    546.287 
OT                                                              48.081    50.781    51.544    52.373    53.424    54.643    56.116    57.505    58.954    60.560    62.215    63.908    268.100    571.243 
Mandatory:                                                                                                                                                                                                 
BA                                                             266.988   282.370   273.801   285.050   291.494   297.187   308.292   318.240   327.857   341.430   343.022   356.094  1,455.824  3,142.467 
OT                                                             264.430   283.388   273.157   284.784   290.898   296.340   306.999   316.879   326.717   340.443   342.238   355.643  1,452.178  3,134.098 
650--Social Security:                                                                                                                                                                                      
BA                                                             462.363   478.882   501.140   521.499   546.735   575.008   606.071   641.105   679.322   720.505   766.154   816.195  2,750.453  6,373.734 
OT                                                             455.999   476.888   498.679   518.672   543.640   571.621   602.300   636.939   674.852   715.645   760.812   810.363  2,734.912  6,333.523 
Discretionary:                                                                                                                                                                                             
BA                                                               3.523     3.833     4.282     4.363     4.450     4.549     4.665     4.820     4.983     5.151     5.323     5.503     22.309     48.089 
OT                                                               3.925     3.859     4.231     4.326     4.435     4.532     4.644     4.794     4.953     5.121     5.291     5.471     22.168     47.798 
Mandatory:                                                                                                                                                                                                 
BA                                                             458.840   475.049   496.858   517.136   542.285   570.459   601.406   636.285   674.339   715.354   760.831   810.692  2,728.144  6,325.645 
OT                                                             452.074   473.029   494.448   514.346   539.205   567.089   597.656   632.145   669.899   710.524   755.521   804.892  2,712.744  6,285.725 
650 on-budget:                                                                                                                                                                                             
BA                                                              13.997    13.255    14.294    15.471    16.421    17.919    19.704    21.810    24.283    28.170    31.357    34.347     83.809    223.776 
OT                                                              13.988    13.255    14.293    15.471    16.421    17.919    19.704    21.810    24.283    28.170    31.357    34.347     83.808    223.775 
Discretionary:                                                                                                                                                                                             
BA                                                               0.019     0.021     0.025     0.025     0.026     0.027     0.027     0.028     0.029     0.030     0.031     0.032      0.130      0.280 
OT                                                               0.019     0.021     0.024     0.025     0.026     0.027     0.027     0.028     0.029     0.030     0.031     0.032      0.129      0.279 
Mandatory:                                                                                                                                                                                                 
BA                                                              13.978    13.234    14.269    15.446    16.395    17.892    19.677    21.782    24.254    28.140    31.326    34.315     83.679    223.496 
OT                                                              13.969    13.234    14.269    15.446    16.395    17.892    19.677    21.782    24.254    28.140    31.326    34.315     83.679    223.496 
700--Veterans Benefits and Services:                                                                                                                                                                       
BA                                                              52.126    57.597    63.773    67.125    65.388    63.859    67.645    69.254    70.967    75.643    72.592    77.429    327.790    693.675 
OT                                                              50.983    57.486    63.200    66.530    64.970    63.416    67.374    68.899    70.563    75.223    72.071    76.963    325.490    689.209 
Discretionary:                                                                                                                                                                                             
BA                                                              24.074    26.532    29.957    28.386    28.812    29.272    29.838    30.796    31.789    32.824    33.887    35.000    146.265    310.561 
OT                                                              23.959    26.902    29.600    28.183    28.495    29.024    29.662    30.530    31.497    32.521    33.576    34.663    144.964    307.751 
Mandatory:                                                                                                                                                                                                 
BA                                                              28.052    31.065    33.816    38.739    36.576    34.587    37.807    38.458    39.178    42.819    38.705    42.429    181.525    383.114 
OT                                                              27.024    30.584    33.600    38.347    36.475    34.392    37.712    38.369    39.066    42.702    38.495    42.300    180.526    381.458 
750--Administration of Justice:                                                                                                                                                                            
BA                                                              36.171    38.543    37.757    38.077    37.965    38.442    39.458    40.478    41.580    42.870    44.188    45.557    191.699    406.372 
OT                                                              34.310    37.712    40.882    39.324    38.348    38.233    39.109    40.193    41.280    42.453    43.741    45.101    195.896    408.664 
Discretionary:                                                                                                                                                                                             
BA                                                              34.676    36.289    33.679    35.912    36.664    37.621    38.694    39.771    40.931    42.288    43.674    45.117    182.570    394.351 
OT                                                              33.153    35.484    37.608    36.761    36.862    37.483    38.455    39.596    40.741    41.977    43.331    44.764    187.169    397.578 
Mandatory:                                                                                                                                                                                                 
BA                                                               1.495     2.254     4.078     2.165     1.301     0.821     0.764     0.707     0.649     0.582     0.514     0.440      9.129     12.021 
OT                                                               1.157     2.228     3.274     2.563     1.486     0.750     0.654     0.597     0.539     0.476     0.410     0.337      8.727     11.086 
800--General Government:                                                                                                                                                                                   
BA                                                              18.384    18.195    20.012    20.341    22.396    21.147    21.646    21.957    22.706    23.469    24.267    25.138    105.542    223.079 
OT                                                              17.380    18.120    19.876    20.420    22.225    20.897    21.423    21.515    22.223    22.957    23.892    24.582    104.841    220.010 
Discretionary:                                                                                                                                                                                             
BA                                                              15.602    15.702    17.102    17.364    17.760    18.181    18.669    19.303    19.977    20.656    21.360    22.094     89.076    192.466 
OT                                                              14.640    15.570    16.783    17.479    17.648    17.956    18.306    18.849    19.500    20.161    20.853    21.571     88.172    189.106 
Mandatory:                                                                                                                                                                                                 
BA                                                               2.782     2.493     2.910     2.977     4.636     2.966     2.977     2.654     2.729     2.813     2.907     3.044     16.466     30.613 
OT                                                               2.740     2.550     3.093     2.941     4.577     2.941     3.117     2.666     2.723     2.796     3.039     3.011     16.669     30.904 
900--Net Interest:                                                                                                                                                                                         
BA                                                             170.955   155.592   166.095   203.823   230.541   243.499   252.354   259.782   263.974   267.195   267.392   261.100  1,096.312  2,415.755 
OT                                                             170.957   155.592   166.095   203.823   230.541   243.499   252.354   259.782   263.974   267.195   267.392   261.100  1,096.312  2,415.755 
Discretionary:                                                                                                                                                                                             
BA                                                               0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000      0.000      0.000 
OT                                                               0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000      0.000      0.000 
Mandatory:                                                                                                                                                                                                 
BA                                                             170.955   155.592   166.095   203.823   230.541   243.499   252.354   259.782   263.974   267.195   267.392   261.100  1,096.312  2,415.755 
OT                                                             170.957   155.592   166.095   203.823   230.541   243.499   252.354   259.782   263.974   267.195   267.392   261.100  1,096.312  2,415.755 
900 on-budget:                                                                                                                                                                                             
BA                                                             247.775   239.682   255.775   301.673   339.281   364.919   387.674   410.022   430.164   450.345   468.452   480.870  1,649.322  3,889.175 
OT                                                             247.777   239.682   255.775   301.673   339.281   364.919   387.674   410.022   430.164   450.345   468.452   480.870  1,649.322  3,889.175 
Discretionary:                                                                                                                                                                                             
BA                                                               0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000      0.000      0.000 
OT                                                               0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000      0.000      0.000 
Mandatory:                                                                                                                                                                                                 
BA                                                             247.775   239.682   255.775   301.673   339.281   364.919   387.674   410.022   430.164   450.345   468.452   480.870  1,649.322  3,889.175 
OT                                                             247.777   239.682   255.775   301.673   339.281   364.919   387.674   410.022   430.164   450.345   468.452   480.870  1,649.322  3,889.175 
920--Allowances:                                                                                                                                                                                           
BA                                                               0.000     0.115   -16.122    -5.943    -2.104    -1.467    -6.263   -19.939   -41.290   -19.883   -23.031   -27.371    -31.899   -163.413 
OT                                                               0.000     0.115    -8.342    -6.134    -5.959    -3.698    -7.163   -17.617   -38.356   -16.729   -19.546   -24.228    -31.297   -147.771 
Discretionary:                                                                                                                                                                                             
BA                                                               0.000     0.115   -15.202    -5.623    -1.784    -1.147    -5.943   -19.619   -40.970   -19.563   -22.711   -27.051    -29.699   -159.613 
OT                                                               0.000     0.115    -7.763    -5.685    -5.657    -3.381    -6.843   -17.297   -38.036   -16.409   -19.226   -23.908    -29.330   -144.204 
Mandatory:                                                                                                                                                                                                 
BA                                                               0.000     0.000    -0.920    -0.320    -0.320    -0.320    -0.320    -0.320    -0.320    -0.320    -0.320    -0.320     -2.200     -3.800 
OT                                                               0.000     0.000    -0.579    -0.449    -0.302    -0.317    -0.320    -0.320    -0.320    -0.320    -0.320    -0.320     -1.967     -3.567 
950--Undistributed Offsetting Receipts:                                                                                                                                                                    
BA                                                             -47.806   -50.513   -52.926   -63.411   -69.375   -61.259   -65.185   -66.882   -69.937   -73.259   -78.640   -82.068   -312.156   -682.942 
OT                                                             -47.392   -50.513   -52.926   -63.411   -69.375   -61.259   -65.185   -66.882   -69.937   -73.259   -78.640   -82.068   -312.156   -682.942 
Discretionary:                                                                                                                                                                                             
BA                                                               0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000      0.000      0.000 
OT                                                               0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000      0.000      0.000 
Mandatory:                                                                                                                                                                                                 
BA                                                             -47.806   -50.513   -52.926   -63.411   -69.375   -61.259   -65.185   -66.882   -69.937   -73.259   -78.640   -82.068   -312.156   -682.942 
OT                                                             -47.392   -50.513   -52.926   -63.411   -69.375   -61.259   -65.185   -66.882   -69.937   -73.259   -78.640   -82.068   -312.156   -682.942 
950 on-budget:                                                                                                                                                                                             
BA                                                             -38.514   -41.104   -42.894   -52.608   -57.884   -49.087   -52.121   -52.962   -55.108   -57.359   -62.012   -64.358   -254.594   -546.393 
OT                                                             -38.514   -41.104   -42.894   -52.608   -57.884   -49.087   -52.121   -52.962   -55.108   -57.359   -62.012   -64.358   -254.594   -546.393 
Discretionary:                                                                                                                                                                                             
BA                                                               0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000      0.000      0.000 
OT                                                               0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000     0.000      0.000      0.000 
Mandatory:                                                                                                                                                                                                 
BA                                                             -38.514   -41.104   -42.894   -52.608   -57.884   -49.087   -52.121   -52.962   -55.108   -57.359   -62.012   -64.358   -254.594   -546.393 
OT                                                             -38.514   -41.104   -42.894   -52.608   -57.884   -49.087   -52.121   -52.962   -55.108   -57.359   -62.012   -64.358   -254.594   -546.393 
Total:                                                                                                                                                                                                     
BA                                                           2,085.573 2,162.789 2,260.114 2,390.819 2,531.170 2,656.404 2,782.913 2,889.448 2,970.900 3,125.270 3,227.301 3,366.670 12,621.420 28,201.009 
OT                                                           2,010.950 2,147.924 2,245.894 2,371.946 2,490.782 2,607.468 2,733.603 2,849.302 2,948.361 3,105.447 3,191.109 3,338.397 12,449.692 27,882.308 
Discretionary:                                                                                                                                                                                             
BA                                                             734.713   772.411   791.381   816.945   848.002   881.539   910.979   916.981   909.590   950.790   968.401   984.394  4,248.847  8,979.003 
OT                                                             734.405   809.372   837.164   857.489   876.104   901.663   933.724   950.277   949.739   991.328   999.948 1,019.939  4,406.144  9,317.374 
Mandatory:                                                                                                                                                                                                 
BA                                                           1,350.860 1,390.378 1,468.733 1,573.874 1,683.168 1,774.865 1,871.933 1,972.467 2,061.310 2,174.480 2,258.900 2,382.276  8,372.573 19,222.006 
OT                                                           1,276.545 1,338.552 1,408.730 1,514.457 1,614.678 1,705.805 1,799.879 1,899.025 1,998.622 2,114.119 2,191.161 2,318.458  8,043.549 18,564.934 
Total on-budget:                                                                                                                                                                                           
BA                                                           1,720.248 1,794.261 1,873.180 1,993.944 2,123.565 2,236.078 2,348.462 2,438.088 2,501.009 2,636.500 2,714.965 2,827.496 10,575.229 23,693.287 
OT                                                           1,655.288 1,781.390 1,861.420 1,977.898 2,086.272 2,190.529 2,302.923 2,402.108 2,482.940 2,621.537 2,684.115 2,805.055 10,419.041 23,414.796 
Discretionary:                                                                                                                                                                                             
BA                                                             731.209   768.599   787.124   812.607   843.578   877.017   906.341   912.189   904.636   945.669   963.109   978.923  4,226.668  8,931.194 
OT                                                             730.499   805.534   832.957   853.188   871.695   897.158   929.107   945.511   944.815   986.237   994.688 1,014.500  4,384.105  9,269.855 
Mandatory:                                                                                                                                                                                                 
BA                                                             989.039 1,025.662 1,086.056 1,181.337 1,279.987 1,359.061 1,442.120 1,525.899 1,596.373 1,690.831 1,751.856 1,848.573  6,348.561 14,762.093 
OT                                                             924.789   975.856 1,028.463 1,124.710 1,214.577 1,293.371 1,373.816 1,456.597 1,538.125 1,635.300 1,689.427 1,790.555  6,034.937 14,144.941 
Revenues                                                     1,853.173 1,865.468 1,958.615 2,153.829 2,321.376 2,479.341 2,619.660 2,762.435 2,897.122 3,102.068 3,292.730 3,497.075 11,532.821 27,084.251 
Revenues on-budget                                           1,337.852 1,333.861 1,400.789 1,566.044 1,702.314 1,828.213 1,935.251 2,043.323 2,141.398 2,309.946 2,463.192 2,627.425  8,432.611 20,017.895 
Deficit/Surplus                                               -157.777  -282.456  -287.279  -218.117  -169.406  -128.127  -113.943   -86.867   -51.239    -3.379   101.621   158.678   -916.871   -798.057 
On-budget                                                     -317.436  -447.529  -460.631  -411.854  -383.958  -362.316  -367.672  -358.785  -341.542  -311.591  -220.923  -177.630 -1,986.430 -3,396.901 
Off-budget                                                     159.659   165.073   173.352   193.737   214.552   234.189   253.729   271.918   290.303   308.212   322.544   336.308  1,069.559  2,598.844 
Notes and Miscellaneous Info:                                                                                                                                                                              
Revenues:                                                                                                                                                                                                  
On-budget                                                    1,337.852 1,333.861 1,400.789 1,566.044 1,702.314 1,828.213 1,935.251 2,043.323 2,141.398 2,309.946 2,463.192 2,627.425  8,432.611 20,017.895 
Off-budget                                                     515.321   531.607   557.826   587.785   619.062   651.128   684.409   719.112   755.724   792.122   829.538   869.650  3,100.210  7,066.356 
Outlays:                                                                                                                                                                                                   
On-budget:                                                                                                                                                                                                 
BA                                                           1,720.248 1,794.261 1,873.180 1,993.944 2,123.565 2,236.078 2,348.462 2,438.088 2,501.009 2,636.500 2,714.965 2,827.496 10,575.229 23,693.287 
OT                                                           1,655.288 1,781.390 1,861.420 1,977.898 2,086.272 2,190.529 2,302.923 2,402.108 2,482.940 2,621.537 2,684.115 2,805.055 10,419.041 23,414.796 
Off-budget:                                                                                                                                                                                                
BA                                                             365.325   368.528   386.934   396.875   407.605   420.326   434.451   451.360   469.891   488.770   512.336   539.174  2,046.191  4,507.722 
OT                                                             355.662   366.534   384.474   394.048   404.510   416.939   430.680   447.194   465.421   483.910   506.994   533.342  2,030.651  4,467.512 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

FUNCTIONS AND REVENUES

Pursuant to section 301(a)(3) of the Budget Act, the budget resolution must set appropriate levels for each major functional category based on the 302(a) allocations and the budgetary totals.

The respective levels of the House resolution, the Senate amendment, and the Conference Agreement for each major budget function and revenue totals are discussed in the following section. The Conference Agreement provides aggregate discretionary spending in 2004 of $784.460 billion in budget authority (BA) and $860.752 billion in outlays.

These two aggregate numbers are allocated to the Appropriations Committees to be suballocated to their 13 individual appropriation subcommittees.

REVENUE

The component of the budget resolution classified as revenue reflects all of the Federal Government's various tax receipts that are classified as `on-budget.' This includes individual income taxes; corporate income taxes; excise taxes, such as the gasoline tax; various other taxes, such as estate and gift taxes; and social insurance taxes, except for Social Security. Customs duties, tariffs, and other miscellaneous receipts also are included in the revenue function.

Social insurance taxes collected for the Social Security system--the Old Age and Survivors and Disability Insurance [OASDI] payroll tax--are off budget. The remaining social insurance taxes (the Hospital Insurance [HI] payroll tax portion of Medicare, the Federal Unemployment Tax Act [FUTA] payroll tax, railroad retirement, and other retirement systems) are all on budget. Pursuant to the Congressional Budget Act of 1974 and the Budget Enforcement Act of 1990, Social Security payroll taxes, which constitute slightly more than a quarter of all Federal receipts, are not reflected in the budget resolution.

House Resolution

The House resolution calls for on-budget revenue of $1.32 trillion in fiscal year 2003; $1.35 trillion in 2004; $8.23 trillion from 2004 through 2008; and $19.48 trillion from 2004 through 2013. When off-budget Social Security taxes are added, total revenue is estimated to be $1.86 trillion in fiscal year 2003, $1.91 trillion in 2004, $11.33 trillion over the next 5 years, and $26.55 trillion over the next 10 years.

The resolution directs the Committee on Ways and Means to report legislation to the House floor by 11 April 2003, making adjustments in current law to effect a reduction in revenue of $35.4 billion in 2003; $112.8 billion in 2004; $387.7 billion from 2004 through 2008; and $698.3 billion in 2003-2013. This `reconciles' an economic growth and job creation plan similar to the President's under the expedited reconciliation rules of the Budget Act. (Also reconciled to the Ways and Means Committee is $27.5 billion in new mandatory spending authority to cover the refundable component of an accelerated increase in the child tax credit.)

The resolution also assumes the permanent extension of the expiring tax cuts in the Economic Growth and Tax Relief Reconciliation Act of 2001 that otherwise will expire in 2010. This will reduce revenue over 11 years by $601.9 billion below the baseline. This adjustment is not reconciled.

Finally, the budget accommodates, but does not reconcile, $49.9 billion in additional tax relief over the next 11 years. Policies would be determined by the Committee on Ways and Means, but could include incentives for charitable giving, affordable single-family housing, and energy production, conservation, and reliability; simplifying the tax laws; and other House policies. Tariff and other revenue effects of various trade initiatives are also possible.

Senate Amendment

The Senate amendment assumes an overall reduction in revenues of $802.2 billion over the 11-year period, 2003-13. The Senate amendment instructs the Finance Committee to report legislation by 8 April 2003 to reduce revenues by $322.5 billion over 2003-2013 and to increase direct spending related to tax policy changes by $27.5 billion over 2003-13 (reflected in Function 600). The Senate amendment assumes, but does not reconcile, an additional $479.6 billion in tax relief over 11 years with a related, but unreconciled, increase in direct spending (related to tax policy changes) of $22.3 billion over 11 years (reflected in Function 600).

The Committee-reported resolution reconciled the Finance Committee for a reduction in revenues and an increase in outlays consistent with President Bush's jobs and growth tax relief plan. The President's plan provides tax relief of $698 billion over the 2003-13 period. It includes three main components: tax relief for working families (by speeding up individual income tax marginal rate reductions already in law, accelerating marriage penalty relief already in law, increasing the child credit immediately to $1,000, and increasing the alternative minimum tax exemption amount); elimination of the double taxation of dividends; and a permanent increase in small business expensing. Since the child credit is partially refundable, the Committee-reported resolution assumed outlay increases sufficient to accommodate the President's growth plan--$27.5 billion in new spending over the next 11 years.

During consideration of the Committee-reported resolution, the Senate adopted several amendments that had the combined effect of reducing the revenue reconciliation instruction to the Finance Committee to $322.5 billion over 11 years.

The Committee-reported resolution assumed, but did not reconcile, the permanent extension of the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 [EGTRRA], which are currently scheduled to expire after 2010. The 11-year tax relief assumption for the EGTRRA extensions is $601.9 billion, with $592.6 billion of the revenue loss (98 percent) occurring in years 2011-13. The permanent extension of the EGTRRA provisions also results in an increase in direct spending of $22.3 billion over 11 years. The Committee-reported resolution also assumed, but did not reconcile, about $13 billion in tax relief over 11 years from several measures expected to be considered in the upcoming year.

During the Senate's consideration of the Committee-reported resolution, the Senate adopted eight amendments affecting the amount of tax relief assumed outside of reconciliation. The Senate adopted one amendment providing for $45 billion in additional tax relief consistent with making the repeal of the estate tax permanent beginning in 2009. The Senate also adopted seven amendments that reduced the level of tax relief assumed outside of reconciliation by $181 billion. The Committee-reported resolution assumed $614.7 billion of tax relief outside of reconciliation; the Senate amendment assumes $478.7 billion of tax relief outside of reconciliation.

Conference Agreement

The Conference Agreement calls for a jobs and growth plan with goals similar to the President's proposal: supporting broad, sustained economic growth and job creation.

With these goals, the Conference Agreement assumes $626 billion over the 2003-13 period for tax relief and associated outlays for a jobs and growth plan. The Agreement directs the Senate Finance Committee to report legislation by 8 May 2003 to reduce revenue by $522.524 billion over 2003-2013, and to increase direct spending related to tax policy changes by $27.476 billion over 2003-2013 (reflected in function 600). The Agreement also directs the House Ways and Means Committee to report legislation by 30 May 2003 to reduce revenue by $535.0 billion over 2003-13, and to increase direct spending related to tax policy changes by $15.0 billion over 2003-2013.

The Conference Agreement assumes, but does not reconcile, an additional $690.9 billion in tax relief over 11 years, and associated increases in direct spending. The assumed additional tax relief could accommodate the permanent extension of the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 [EGTRRA], the tax provisions of energy policy legislation, the revenue impacts of trade legislation, and several miscellaneous tax provisions proposed by the President or Congress.

NATIONAL DEFENSE: FUNCTION 050

Function Summary

The National Defense function includes funds to develop, maintain, and equip the military forces of the United States. More than 95 percent of the funding in this function goes to Department of Defense [DOD] military activities. The function also includes pay and benefits for military and civilian personnel; research, development, testing, and evaluation; procurement of weapon systems; military construction and family housing; and operations and maintenance of the defense establishment. The remaining funding in the function is for atomic energy defense activities of the Department of Energy, and other defense-related activities.

House Resolution

The House resolution calls for $400.6 billion in BA and $400.9 billion in outlays in fiscal year 2004, an increase of 2.0 percent in BA compared with fiscal year 2003. The function totals are $2,202.1 billion in BA and $2,142.7 billion in outlays over 5 years; and $4,814.0 billion in BA and $4,704.4 billion in outlays over 10 years.

The BA and outlay funding levels for National Defense will support critical military and homeland security initiatives, and are consistent with the President's recommendations. The resolution assumes $70 million in additional mandatory BA to permit proceeds from facilities that were acquired, constructed, or improved with commissary surcharges or nonappropriated funds, and that were closed under Base Realignment and Closure authority, to be reapplied to nonappropriated fund activities without an appropriation.

Senate Amendment

For discretionary programs, the Senate amendment assumes the President's request for National Defense in 2004 totalling $400.1 billion in BA and $400.6 billion in outlays for 2004. This is an increase of $7.9 billion in BA (2.0 percent) and $14.2 billion in outlays (3.7 percent) from the 2003 level.

For 2003, the Committee-reported resolution assumed the full-year appropriations already enacted. An amendment to the resolution adopted by the Senate assumed an increase of $3.0 billion in BA and outlays in 2003 to provide pay and benefits for active duty, National Guard and Reserve forces, and to modernize National Guard and Reserve equipment and weapons.

For defense activities in the Department of Defense only, the Senate amendment assumes $380.8 billion in discretionary BA in 2004, an increase of $6.2 billion (1.6 percent) above the 2003 level of $374.6 billion.

Within DOD, the Senate amendment assumes $231.9 billion in discretionary BA for readiness accounts (military personnel and operations and maintenance) in 2004. This represents an increase of $2.4 billion in BA (1.0 percent) above the 2003 level of $229.5 billion. These appropriations would support an active duty end strength of 1,388,100 and a Selected Reserves strength of 863,000. It would also support pay raises ranging from 2.0 percent to 6.3 percent, targeted by rank and years of service.

The Senate amendment also assumes $136.2 billion for investment accounts (procurement and research, development, testing, and evaluation) in 2004. This represents an increase of $4.8 billion in BA (3.9 percent) above the 2003 appropriated level of $131.4 billion. Major purchases include a Virginia Class submarine, 3 DDG-51 destroyers, 42 F/A-18E/F fighter aircraft, and 22 F-22 fighter aircraft.

For military construction and family housing, the Senate amendment assumes $9.1 billion in discretionary budget authority for 2004 representing a 13.8-percent decrease from the 2003 level of $10.5 billion.

During floor consideration, the Senate adopted an amendment that would allow the Appropriations Committee to provide up to $100 billion for the costs associated with disarming Iraq.

For defense activities in the Department of Energy, the Senate amendment assumes $16.9 billion in discretionary BA in 2004, representing an increase of $1.1 billion (6.9 percent) above the 2003 enacted level of $15.8 billion.

The Senate amendment assumes $8.8 billion in discretionary BA for the National Nuclear Security Administration in 2004, representing an increase of $796 million (10.0 percent) above the 2003 enacted level of $8.0 billion.

The Senate amendment assumes $7.7 billion in discretionary BA for the Department of Energy's environmental and other defense activities in 2004, representing an increase of $185 million (2.5 percent) above the 2003 enacted level of $7.6 billion.

The Senate-reported resolution assumed no mandatory increases or decreases in this function. Of note, the Senate-reported amendment assumed full funding for the so-called Purple Heart Plus program, which was included in last year's Defense Authorization Act. The provision allows all disabled military retirees whose disabilities are a direct result of combat, and those most severely disabled (60 percent or greater) military retirees whose disabilities are a direct result of combat-related injury, to receive their full military retirement pay as well as a special compensation equal to the amount of veterans' disability compensation without offset. The Senate amendment reflects an amendment to the Committee-reported resolution adopted by the Senate to cover the incremental mandatory cost of phased-in concurrent receipt of retirement pay and disability for all veterans with service-related disabilities rated at 60 percent or higher ($182 million in BA and outlays in 2004, and $12.8 billion in BA and outlays over the 2004-13 period).

Conference Agreement

The Conference Agreement assumes enactment of the fiscal year 2003 supplemental appropriations bill for addressing the conflict in Iraq. The provision allows an adjustment for the finally enacted level.

The Agreement calls for function totals of $400.5 billion in BA and $400.9 billion in outlays for fiscal year 2004; $2,202.1 billion in BA and $2,142.7 billion in outlays over 5 years; and $4,758.2 billion in BA and $4,658.3 billion in outlays over 10 years.

The discretionary levels in this function are consistent with the President's request. The levels will support military forces capable of prevailing decisively in the near term, and accommodate the military's longer-term transformation goals.

INTERNATIONAL AFFAIRS: FUNCTION 150

Function Summary

As part of the Global War on Terrorism, the Department of State and international assistance programs play a vital role in maintaining and expanding support of the international coalition against terrorism. Funds distributed through the International Affairs function provide for international development and humanitarian assistance; international security assistance; the conduct of foreign affairs; foreign information and exchange activities; and international financial programs. The major departments and agencies in this function include the Department of State, the Department of the Treasury, and the United States Agency for International Development [USAID].

House Resolution

The budget resolution calls for $24.8 billion in BA and $23.7 billion in outlays in fiscal year 2004, an increase of 9.8 percent in BA compared with fiscal year 2003. The function totals are $149.9 billion in BA and $128.9 billion in outlays over 5 years, and $326.6 billion in BA and $283.5 billion in outlays over 10 years.

The House resolution calls for $2 billion as the first installment toward the President's Emergency Plan for AIDS Relief, a 5-year, $15-billion initiative to turn the tide in the global effort to combat the HIV/AIDS pandemic. This initiative--funded through USAID, the Department of Health and Human Services, and the Centers for Disease Control--virtually triples U.S. funding to fight the international AIDS pandemic. The resolution also recommends funds sufficient for the President's proposal to create a new Government corporation--the Millennium Challenge Corporation--to administer a $1.3 billion fund designed to promote just governance and sound free-market economic policies in International Development Association-eligible countries (with yearly per-capita incomes below $1,435).

Senate Amendment

For discretionary programs, the Senate amendment assumes the President's request for 2004 totaling $28.7 billion in BA and $26.8 billion in outlays. This represents an increase of $3.2 billion in BA (12.8 percent) and $0.8 billion in outlays (3.0 percent) from the 2003 level.

The Senate amendment assumes $12.5 billion in discretionary BA for International Development and Humanitarian Assistance, an increase of $2.1 billion (20.1 percent) above the 2003 appropriated level of $10.4 billion. Within International Development and Humanitarian Assistance, the Senate amendment assumes a new development assistance organization, called the Millennium Challenge Corporation, with an initial funding level of $1.3 billion for 2004 and $14.3 billion over 2004-13. The Senate amendment also assumes a new Global AIDS Initiative ($450 million in 2004 and $22.3 billion over 10 years), and a new fund for dealing with famine ($200 million in 2004, and $2.2 billion over 10 years).

The Senate amendment assumes $7.6 billion in discretionary BA for International Security Assistance, an increase of $0.9 billion (13.2 percent) above the 2003 appropriated level of $6.7 billion. Within International Security Assistance, the Senate amendment assumes the creation of a new fund to deal with Complex Foreign Crises, with initial funding of $100 million for 2004.

The Senate amendment assumes $7.5 billion in discretionary BA for the Conduct of Foreign Affairs, an increase of $636 million (9.2 percent) above the 2003 appropriated level of $6.9 billion. The Senate amendment also assumes $983 million in discretionary BA for Foreign Information and Exchange Activities, an increase of $152 million (18.3 percent) above the 2003 appropriated level of $831 million.

The Senate amendment assumes no mandatory increases or decreases in this function.

Conference Agreement

The Conference Agreement calls for $25.7 billion in BA and $24.2 billion in outlays in fiscal year 2004; $155.9 billion in BA and $133.7 billion in outlays over 5 years; and $341.6 billion in BA and $296.4 billion in outlays over 10 years. The Conference Agreement fully accommodates the President's request for this function. This includes funding for the President's Millennium Challenge Corporation initiative and the Global AIDS Initiative.

GENERAL SCIENCE, SPACE, AND TECHNOLOGY: FUNCTION 250

Function Summary

Function 250 consists of General Science, Space and Technology programs. The largest component of this function--about two-thirds of total spending--is for the space flight, research, and supporting activities of the National Aeronautics and Space Administration [NASA]. The function also reflects general science funding, including the budgets for the National Science Foundation [NSF], and the fundamental science programs of the Department of Energy [DOE].

House Resolution

The House resolution calls for $22.8 billion in BA and $22.3 billion in outlays in fiscal year 2004, a decrease of 1.6 percent in BA compared with fiscal year 2003. The function totals are $121.8 billion in BA and $118.7 billion in outlays over 5 years; and $260.8 billion in BA and $254.1 billion in outlays over 10 years.

Senate Amendment

For discretionary programs the Senate amendment assumes a discretionary total of $23.6 billion in BA and $22.6 billion in outlays for 2004. This represents an increase of $0.5 billion (2.3 percent) in BA and $1.2 billion (5.5 percent) in outlays from the 2003 level. The Senate amendment includes the following specific assumptions.

For NASA, the Senate amendment assumes funding the President's request of $14.5 billion for Function 250 activities (this excludes NASA aeronautics funding that falls in Function 400). Included is $6.7 billion for Science, Aeronautics, and Exploration and $7.8 billion for Space Flight Capabilities. The President's request of $4.0 billion (on a full-cost basis) is assumed for the Space Shuttle.

The Senate amendment assumes funding the President's request of $5.4 billion in discretionary funding for National Science Foundation activities, a 3.2-percent increase over the 2003 level.

For Department of Energy science programs, the Senate amendment assumes a $100-million increase over the President's request, bringing total funding for DOE science programs to $3.4-billion in 2004, a 4.6-percent increase over the 2003 level.

The Senate amendment includes $273 million for the Department of Homeland Security in 2004. These funds support the advance of homeland security through scientific research.

The Senate amendment assumes no mandatory increases or decreases in this function.

Conference Agreement

The Conference Agreement for Function 250 calls for $23.9 billion in BA and $22.8 billion in outlays in fiscal year 2004. The functional totals are $126.5 billion in BA and $122.3 billion in outlays over 5 years, and $270.5 billion in BA and $262.2 billion in outlays over 10 years. The Agreement accommodates an increase of $324 million above the administration's request for NSF research and related activities. The Agreement also supports a $100-million increase over the administration's request for DOE science programs.

ENERGY: FUNCTION 270

Function Summary

The Energy function reflects civilian energy and environmental activities and programs of the Federal Government. Through this function, spending is provided for energy supply programs, such as solar and renewable, fossil and nuclear research at the Department of Energy [DOE]; rural electricity and telecommunications loans, administered through the Rural Utilities Service of the Department of Agriculture; electric power generation and transmission programs of the Power Marketing Administrations (the Southeastern Power Administration, the Southwestern Power Administration, the Western Area Power Administration, and the Bonneville Power Administration); and power generation and transmission programs of the Tennessee Valley Authority. This function also provides funds for energy conservation programs; emergency energy preparedness (mainly the Strategic Petroleum Reserve); and energy information, policy, and regulation programs, including spending by the Office of the Secretary of Energy and the operations of the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and the U.S. Enrichment Corporation.

Function 270 does not include DOE's national security activities--the National Nuclear Security Administration--which are in Function 050 (Defense), or its basic research and science activities, which are in Function 250 (General Science, Space, and Technology).

House Resolution

The House resolution calls for $2.6 billion in BA and $0.9 billion in outlays in fiscal year 2004, an increase of 25 percent in BA compared with fiscal year 2003. The function totals are $13.3 billion in BA and $5.6 billion in outlays over 5 years, and $29.3 billion in BA and $15.6 billion in outlays over 10 years.

Pursuant to the Homeland Security Act of 2002, the functions of the National Simulation and Analysis Center and the energy security and assurance programs of the Department of Energy are transferred to the new Department's Directorate of Information Analysis and Infrastructure Protection.

The resolution accommodates resources outside the Department of Homeland Security necessary for certain aspects of homeland security. A sum of $619 million is assumed in fiscal year 2004 for the Nuclear Regulatory Commission to continue to review and strengthen NRC's physical facilities and information technology infrastructure to enhance nuclear plant security. Of this amount, $572 million is provided by fees and receipts.

Senate Amendment

The Senate amendment assumes spending in this function would total $2.6 billion in BA and $0.9 billion in outlays for 2004. This represents an increase of $0.6 billion in BA (7 percent), and $0.4 billion in outlays from the 2003 level. The Senate amendment includes the following specific assumptions.

For discretionary programs, the Senate amendment assumes a total of $3.7 billion in BA and $3.6 billion in outlays for 2004. This represents an increase of $0.4 billion (13 percent) in BA above the 2003 level.

The Senate amendment assumes $881 million for non-defense environmental management activities. This is an increase of $213 million, or 32 percent, above the 2003 enacted level. (An additional $6.3 billion for environmental management activities is included in Function 050.)

The Senate amendment assumes $802 million for Energy Supply activities. This is $106 million (15 percent) above the 2003 enacted level. This increase includes funding for the President's Freedom Fuel Initiative, which would help reverse America's growing dependence on foreign oil, by providing funds for research for a commercially viable hydrogen-powered fuel cell technology.

The Senate amendment assumes no mandatory increases or decreases in this function.

Conference Agreement

The Conference Agreement for Function 270 calls for $2.6 billion in BA and $0.9 billion in outlays in fiscal year 2004. The functional totals are $13.8 billion in BA and $5.6 billion in outlays over 5 years, and $30.3 billion in BA and $15.7 billion in outlays over 10 years. The Conference Agreement fully supports the President's budget request for this function.

NATURAL RESOURCES AND ENVIRONMENT: FUNCTION 300

Function Summary

Programs within Function 300 consist of water resources, conservation, land management, pollution control and abatement, and recreational resources. Major departments and agencies in this function are the Department of Interior, including the National Park Service [NPS], the Bureau of Land Management [BLM], the Bureau of Reclamation, and the Fish and Wildlife Service [FWS]; conservation-oriented and land management agencies within the Department of Agriculture [USDA] including the Forest Service; the National Oceanic and Atmospheric Administration [NOAA] in the Department of Commerce; the Army Corps of Engineers; and the Environmental Protection Agency [EPA].

House Resolution

The House resolution calls for $29.2 billion in BA and $29.9 billion in outlays in fiscal year 2004. The function totals are $154.1 billion in BA and $154.4 billion in outlays over 5 years, and $331.0 billion in BA and $327.9 billion in outlays over 10 years.

The resolution assumes legislation allowing the Bureau of Land Management to use updated management plans to identify publicly owned areas suitable for sale; the permanent extension of the Recreation Fee Program, which allows parks, refuges, forests, and other publicly-owned units to spend fees within the units from which they are collected; legislation to prevent the United Mine Workers of America Combined Benefit Fund from financial crisis by transferring to it any additional interest from the Abandoned Mine Land Reclamation Fund; the Water Resources Development Act of 2002, which authorizes the Corps of Engineers to conduct water resource studies and undertake specified projects and programs for flood control, inland navigation, shoreline protection, and environmental restoration; and the Central Utah Project [CUP] Completion Act, which clarifies and streamlines completion of project goals. The CUP provides water for agricultural, industrial, and municipal uses.

Senate Amendment

The Senate amendment assumes spending in this function of $35.3 billion in BA and $31.4 billion in outlays for 2004. This represents an increase of $4.4 billion in BA (14 percent), and $2.4 billion in outlays from the 2003 level. The Senate amendment includes the following specific assumptions.

For discretionary programs, the Senate amendment assumes a total of $32.8 billion in BA and $29.5 billion in outlays for 2004. This represents an increase of $3.6 billion (12 percent) in BA above the 2003 level.

The Senate amendment assumes $3.1 billion for the National Fire Plan, which is $880 million above the President's request. This reflects an amendment to the resolution adopted by the Senate that added $500 million to the National Fire Plan. The Senate believes it is critical to fund the National Fire Plan at a realistic level that will allow the Forest Service and Department of Interior to pay for wildfire suppression, while maintaining its ongoing operations.

The Senate amendment assumes $900 million for the Land and Water Conservation Fund [LWCF], the same as the President's budget.

The Senate amendment assumes $11.3 billion for the Environmental Protection Agency. This is $3 billion (36 percent) above the 2003 enacted level. The Senate did not accept the President's cut to the State and Tribal Assistance Grants, instead funding them at $6.8 billion, which is $3 billion more than the 2003 enacted level. (This increase to the State and Tribal Assistance Grants is due to an amendment adopted by the Senate, which added $3 billion in 2004 to the Clean Water and Safe Drinking Water State Revolving Fund.) Within the EPA, there is $1.4 billion for Superfund, which is $125 million or 9.9 percent more than the 2003 enacted level. The Senate amendment also includes $2.2 billion for environmental programs and management. This is $122 million, or 5.8 percent, more than the 2003 enacted level.

The Senate amendment assumes $4.5 billion for the Corps of Engineers, the same as the 2003 level, and $546 million more than the President's request. It does not include the President's proposal to fund operations and maintenance and construction from the Inland Waterways Trust Fund or from the Harbor Maintenance Trust Fund.

The Senate amendment assumes the President's proposal to make the Recreation Fee Demonstration Program permanent. This program allows the Forest Service and Department of Interior to collect entrance fees and use a portion of those fees without further appropriation for maintenance and other projects. Over 10 years, this program would have a net cost of $803 million.

The Senate amendment reflects the administration's proposal for the Federal Land Transaction Facilitation Act. This proposal would allow the Bureau of Land Management to use updated management plans to identify property suitable for disposal as well as allow a certain portion of receipts to be used by the BLM for restoration projects. It would cap receipt retention at $100 million per year. The proposal costs $86 million over 10 years.

The Senate amendment assumes $3.4 billion over 10 years for the Conservation Security Program in the Department of Agriculture.

Conference Agreement

The Conference Agreement calls for $31.6 billion in BA and $30.8 billion in outlays in fiscal year 2004. The function totals are $164.5 billion in BA and $161.9 billion in outlays over 5 years, and $348.3 billion in BA and $342.4 billion in outlays over 10 years.

For discretionary programs, the Conference Agreement provides for a total of $29.3 billion in BA and $29.0 billion in outlays in fiscal year 2004.

The Conference Agreement recognizes the importance of the National Fire Plan and calls for $2.6 billion for the plan, $380 million above the President's request. The Congress believes it is critical to fund the National Fire Plan at a level that will allow the Forest Service and the Department of the Interior to pay for wildfire suppression, while maintaining their normal operations. In particular, Congress places a priority on wildfire suppression; rehabilitation and restoration of areas burned during recent fire seasons; and the reduction of hazardous fuels, which will help prevent wildfires in the future.

The Conference Agreement accommodates $8.3 billion for the Environmental Protection Agency, $250 million greater than the 2003 enacted level. The Congress restored funding for the State and Tribal Assistance Grants to $3.8 billion, the same as the 2003 enacted level. Within the EPA, there is $1.4 billion for Superfund, which is $125 million (9.9 percent) more than the 2003 enacted level; and $2.2 billion for environmental programs and management, which is $122 million (5.8 percent) more than the 2003 enacted level.

The Conference Agreement also accommodates the Senate's $4.5 billion for the Corps of Engineers.

For mandatory programs, the Agreement assumes the President's proposal allowing the Forest Service and Department of Interior to collect entrance fees and use a portion of those fees for maintenance and other projects without further appropriation. It also assumes an amendment allowing the Bureau of Land Management [BLM] to use updated management plans to identify property suitable for disposal, as well as permit a certain portion of receipts to be used by the BLM for restoration projects. The Agreement also assumes $3.4 billion over 10 years for the Conservation Security Program in the Department of Agriculture; legislation passed in the House last year to authorize the Army Corps of Engineers to conduct water resource studies and undertake specific projects and programs for flood control, inland navigation, shoreline protection, and environmental restoration; and enactment of the Central Utah Project Completion Act, which passed in the House last year.

AGRICULTURE: FUNCTION 350

Function Summary

The Agriculture function includes funds for direct assistance and loans to food and fiber producers, export assistance, market information, inspection services, and agricultural research. Farm policy is driven by the Farm Security and Rural Investment Act of 2002, which provides producers with continued planting flexibility while protecting them against unique uncertainties such as poor weather conditions and unfavorable market conditions.

House Resolution

The House resolution calls for $24.0 billion in BA and $23.4 billion in outlays in fiscal year 2004. The function totals are $125.1 billion in BA and $121.5 billion in outlays over 5 years, and $240.8 billion in BA and $237.1 billion in outlays over 10 years.

Included in these funding levels is the continuation of the 2002 farm bill.

Senate Amendment

The Senate amendment assumes spending in this function would total $24.5 billion in BA and $23.5 billion in outlays for 2004. This represents an increase of $39 million in BA over the 2003 level.

For discretionary programs, the Senate amendment assumes a total of $5.2 billion in BA and $5.6 billion in outlays for 2004. This represents a decrease of $0.5 billion or 8.5 percent in BA from the 2003 level.

The Senate amendment assumes the President's request that several mandatory agriculture programs will provide discretionary savings of $321 million in 2004 and $1.1 billion over 10 years.

The Senate amendment also assumes a decrease of $1.4 billion over 10 years in the mandatory programs administered by the Department of Agriculture.

Conference Agreement

The conference agreement calls for $24.6 billion in BA and $23.7 billion in outlays in fiscal year 2004. The function totals are $130.2 billion in BA and $124.5 billion in outlays over 5 years, and $255.7 billion in BA and $245.8 billion in outlays over 10 years. Included in these funding levels is the continuation of the 2002 Farm Bill. The Conference Agreement fully supports the President's overall request for this function.

COMMERCE AND HOUSING CREDIT: FUNCTION 370

Function Summary

Function 370 includes four components: mortgage credit (usually negative BA because receipts tend to exceed the losses from defaulted mortgages); the Postal Service (mostly off budget); deposit insurance (negligible spending due to deposit insurance premiums); and other advancement of commerce (the majority of the discretionary and mandatory spending in this function).

The mortgage credit component of this function includes housing assistance through the Federal Housing Administration [FHA], the Government National Mortgage Association [Ginnie Mae], and rural housing programs of the Department of Agriculture. The function also includes net Postal Service spending and spending for deposit insurance for banks, thrifts, and credit unions. Finally, most, but not all, of the Commerce Department is provided for in this function including the International Trade Administration, Bureau of Economic Analysis, Patent and Trademark Office, National Institute of Standards and Technology, National Telecommunications and Information Administration, and the Bureau of the Census; as well as independent agencies such as the Securities and Exchange Commission [SEC], the Commodity Futures Trading Commission, the Federal Trade Commission, the Federal Communications Commission [FCC], and the majority of the Small Business Administration [SBA].

More than two-thirds of the spending in Function 370 is out of the FCC's Universal Service Fund. Spending from this fund exactly offsets the receipts (classified as taxes on the revenue side of the budget) that certain telecommunications operators charge their customers to promote service to low-income users and high-cost areas, as well as new services.

House Resolution

The House resolution calls for $7.4 billion in BA and $3.6 billion in outlays in fiscal year 2004, a decline of 16 percent in BA compared with fiscal year 2003. The function totals are $42.0 billion in BA and $16.5 billion in outlays over 5 years, and $86.8 billion in BA and $26.6 in outlays over 10 years.

For the Department of Homeland Security, $21 million is provided for Departmentwide technology investments, as is $9 million for the Critical Infrastructure Assurance Office under Information Analysis and Infrastructure Protection.

The resolution assumes other funding for homeland security purposes of the Commerce Department, including: $83.9 million for the Bureau of Industry and Security to inhibit the global spread of dual-use technologies that could be used in biological, chemical, and nuclear weapons of mass destruction (formerly the Bureau of Export Administration); $10.3 million for the National Institute of Standards and Technology; and $3.7 million for the International Trade Administration.

Senate Amendment

For discretionary programs, the Senate amendment assumes discretionary spending in this function would total -$0.5 billion in BA and $0.1 billion in outlays for 2004. This represents a decrease of $0.6 billion in BA, but an increase of $38 million in outlays from the 2003 level. The Senate amendment includes the following specific assumptions.

The Senate amendment for 2004 reflects all the President's requested increases over 2003 (shown as percentage increase) for export control and enforcement (47 percent), the activities of the Census Bureau (20 percent), economic and statistical analysis (18-percent), and homeland security investments in the Department of Commerce (43 percent). The Senate amendment also assumes the President's request of $842 million (an 18-percent increase) for the Securities and Exchange Commission to implement the corporate responsibility activities under the Sarbanes-Oxley bill.

The President's budget proposes to eliminate the Advanced Technology Program, which would save $0.7 billion over the next 10 years and is reflected in the Senate amendment. The President's proposal to discontinue the Manufacturing Extension Program, however, is not assumed by the Senate amendment.

For mandatory programs, the Senate amendment assumes the President's proposal to merge the deposit insurance funds for banks and thrifts--the Bank Insurance Fund and the Savings Association Insurance Fund. According to CBO estimates, this proposal would be nearly budget neutral over the next 10 years.

The Senate amendment also assumes legislation (S. 380, as cleared for the President on 8 April 2003) that would reduce the Postal Service payment to the Civil Service Retirement [CSRS] trust fund for 2003-05, but then would reinstate and redirect the payment to an escrow fund until Congress can enact subsequent law regarding how the Postal Service should address its retiree health liabilities and other concerns. This proposal would increase the unified deficit by $7.3 billion over the 2003-13 period. The budgetary effect on the Postal Service is reflected in this function, and the effect on the receipts of the CSRS fund are shown in Function 950 (a small interest effect appears in Function 900).

Conference Agreement

The Conference Agreement calls for on-budget amounts as follows: $7.5 billion in BA and $3.6 billion in outlays in fiscal year 2004; $41.9 billion in BA and $15.6 billion in outlays over 5 years; and $84.3 billion in BA and $21.5 billion in outlays over 10 years. For mandatory programs, the agreement assumes a merger of the Bank Insurance Fund and the Savings Association Insurance Fund; legislation to pay interest on bank deposits with the Federal Reserve; and regulatory relief for certain financial services companies. For discretionary programs, the Agreement is consistent with the Senate amendment.

TRANSPORTATION: FUNCTION 400

Function Summary

This function funds all major Federal transportation modes and programs including the Transportation Security Administration; the Federal Highway Administration; the Federal Transit Administration; the National Rail Passenger Corporation [Amtrak]; highway, motor carrier and rail safety programs; the Federal Aviation Administration; the aeronautical activities of the National Aeronautics and Space Administration [NASA]; the Coast Guard; the Maritime Administration; and other transportation support activities.

House Resolution

The House resolution calls for $65.4 billion in BA and $69.2 billion in outlays in fiscal year 2004, an increase of 2.1 percent in BA compared with fiscal year 2003. Function totals are $334.2 billion in BA and $338.2 billion in outlays over 5 years, and $698.9 billion in BA and $700.8 billion in outlays over 10 years.

The resolution assumes an increase in Federal-aid Highway contract authority and obligation limitation from $32.1 billion in 2004 to $39.0 billion in 2013; a freeze of Transit Category contract authority and obligation limitation at $5.7 billion; transfer of the receipts from the 2.5-cent gasohol deficit reduction tax from the General Fund to the Highway Trust Fund; and establishment of a contingency procedure to increase spending above the level in the budget resolution on highways, highway safety, and transit should additional resources be made available to the Highway Trust Fund.

Senate Amendment

For Function 400, the Senate amendment includes $75.8 billion in BA and $71.6 billion in outlays for 2004. This represents an increase of $11.7 billion in BA, or 18 percent.

The Senate amendment includes major increases in the Federal-aid Highways program, reflecting an amendment adopted by the Senate that set contract authority at levels that cannot be sustained with trust fund receipts under current law. For 2004, the Senate amendment assumes an obligation limitation of $35.6 billion, an 11-percent increase from the Committee-reported resolution of $32.1 billion and contract authority of $39.3 billion, a 29-percent increase from the Committee-reported resolution of $30.5 billion.

For 2004-09, the Senate amendment includes $233.3 billion in obligation limitation, a 20-percent increase from the Committee-reported resolution of $194.4 billion and the amendment includes contract authority of $255.7 billion, a 24-percent increase in the Committee-reported resolution of $206.5 billion.

For Essential Air Service, the Senate amendment assumes $103 million for 2004, which is $53 million above the President's request.

For Port Security, the Senate amendment included $850 million in 2004, and $850 million in 2005 due to an amendment adopted on the floor.

For the Coast Guard, the Senate amendment assumes the President's request of $6.1 billion, the same as the 2003 enacted level. This request would recapitalize much of the Coast Guard's budget which was diverted for more urgent needs, following September 11, 2001.

The Senate amendment assumes full funding for the President's request for NASA programs within this function at $993 million, a 20-percent increase from the enacted 2003 level.

The Senate amendment includes $1.8 billion for Amtrak, a 100-percent increase over the committee-passed resolution of $900 million due to an amendment adopted on the Senate floor that added $912 million.

Conference Agreement

The Conference Agreement calls for $69.5 billion in BA and $69.9 billion in outlays in fiscal year 2004; $364.7 billion in BA and $354.9 billion in outlays over 5 years; and $759.9 billion in BA and $745.8 billion in outlays over 10 years.

The Conference Agreement provides contract authority for Federal-aid highways of $35.482 billion in 2004, and $231.078 billion for 2004-09, representing a compromise midway between the House- and Senate-passed level.

The Conference Agreement also provides transit budget authority of $5.841 billion in 2004 and $49.1 billion for 2004-09, which is also a compromise midway between the House- and Senate-passed.

The Conference Agreement establishes a contingency procedure to increase spending above the level in the budget resolution on highways, highway safety, and transit should new offsetting resources be made available to the Highway Trust Fund. The conferees intend that the increase provided for in this Conference Agreement above the baseline will be constrained by the resources available to the Highway Trust Fund.

COMMUNITY AND REGIONAL DEVELOPMENT: FUNCTION 450

Function Summary

Function 450 includes programs that provide Federal funding for economic and community development in both urban and rural areas, including: Community Development Block Grants [CDBGs]; the non-power activities of the Tennessee Valley Authority; the non-roads activities of the Appalachian Regional Commission; the Economic Development Administration [EDA]; and partial funding for the Bureau of Indian Affairs [BIA]. Funding for disaster relief and insurance--including the Federal Emergency Management Agency [FEMA], now part of the new Department of Homeland Security [DHS]--also appear here.

House Resolution

The House resolution calls for $14.1 billion in BA and $15.9 billion in outlays in fiscal year 2004, an increase of 15.4 percent in BA compared with fiscal year 2003. The function totals are $73.5 billion in BA and $76.5 billion in outlays over 5 years, and $155.8 billion in BA and $154.1 billion in outlays over 10 years.

Resources allow for significant expansions of the First Responder Grant Program, with $3.5 billion in funding for grants for `first responders' such as local firefighters, and search-and-rescue or police forces. This is a $1.7 billion increase over the 2003 enacted level.

Senate Amendment

The Senate amendment assumes funding for this function will total $14.3 billion in BA and $16.7 billion in outlays. This represents a decrease of 9 percent in BA, or $1.4 billion, from 2003. The Senate amendment assumes funding of $151.9 billion in BA and $153.5 billion in outlays over 2004-13.

For discretionary programs, the Senate amendment assumes $13.8 billion in BA and $16.8 billion in outlays for 2004. This represents a decrease of $1.4 billion in BA from the 2003 level. The Senate amendment includes the following specific assumptions.

As part of the newly formed Department of Homeland Security, all the activities of what was once known as the Federal Emergency Management Agency will be managed by the Emergency Preparedness and Response Directorate within DHS. For the Office of Domestic Preparedness, the Committee-reported resolution assumed the President's request for $3.5 billion in 2004 to ensure that first responders are properly trained and equipped. Then the Senate adopted an amendment to the resolution to add an additional $3.5 billion in 2003 for first responders. The Senate amendment also assumes $3.2 billion for Disaster Relief activities. This level is consistent with the average cost of (non-terrorist) disaster events over the past 5 years. This includes $2.0 billion in new money, as well as money left over from prior years. This $2.0 billion in new money represents an increase of $1.2 billion over the 2003 level.

The Senate amendment also incorporates the President's proposal for a new $300 million pre-disaster mitigation program. The Senate amendment also continues to support the protection of the public against flood damage by supporting the Flood Map Modernization Fund and including $200 million to update the inaccurate maps.

For Community Development Block Grants, the Senate amendment matches the President's request by assuming $4.7 billion in 2004. This is $200 million below the enacted 2003 level. The President proposes to review this program and develop proposals to better incorporate poorer communities with poverty rates above the national average.

For the Bureau of Indian Affairs, the Senate amendment assumes $1.1 billion which is an increase of $21 million from 2003. The resolution also supports Indian school construction and provides $346 million to improve academic performance at BIA schools and to eliminate the school maintenance and repair backlog.

Among mandatory activities in this function, the Senate amendment reflects an amendment adopted by the Senate adding $260 million in BA in 2004 (and in each year thereafter through 2013) for a new Homestead Venture Capital Fund.

Conference Agreement

The Conference Agreement calls for spending of $14.1 billion in BA and $15.8 billion in outlays in 2004, and $71.8 billion in BA and $75.4 billion in outlays over the period 2004-08. Over the period 2004-13, the agreement calls for spending of $149.3 billion in BA and $149.2 billion in outlays. The conference agreement accommodates the expansion of grants for first responders, and other activities in the new Department of Homeland Security.

The conferees strongly support the continued funding of the Round II Urban and Rural Empowerment Zone and Enterprise Community [EZ/EC] initiatives at least at the level pledged by the Round II designation of 1999. The conferees recognize that the current EZ/EC initiative is yielding measurable results; improving the economy and quality of life in distressed areas; enabling self-sufficiency of disadvantaged residents; and leveraging private and nonprofit resources. In competing for the designations, these communities were selected for their thoughtful use of Federal funds over a full 10 year cycle, not on how quickly they could withdraw funds from the Treasury. The Round II EZ/EC designees have received only a small portion of the Federal grant funds they were promised to implement their strategic plans for revitalization. This Conference Agreement assumes the program will receive sufficient resources to continue progress on this important work.

EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES: FUNCTION 500

Function Summary

Education spending consumes two-thirds of the Function 500 total, including elementary and secondary education services, higher education aid, and research and general education aids--the last category incorporating funding for arts, humanities, museums, libraries, and public broadcasting. Job training and other Labor Department activities are in this function, as are social services--including the Social Services Block Grant, vocational rehabilitation, and national service.

House Resolution

The House resolution calls for $84.7 billion in BA and $85.7 billion in outlays in fiscal year 2004. The function totals are $435.2 billion in BA and $428.7 billion in outlays over 5 years, and $914.5 billion in BA and $898.5 billion in outlays over 10 years.

The resolution levels support priority funding for a number of discretionary spending programs. It assumes an increase of $50 million, to $1.238 billion, for the Impact Aid program. It accommodates an increase of at least $666 million, to $12.35 billion, for Title I funding of low-income school districts. The resolution also provides for at least $12.7 billion toward the Pell Grant program for low-income undergraduate students, a $1.34-billion increase from 2003. In the area of special education, the resolution assumes an increase of at least $660 million for Individuals with Disabilities Education Act [IDEA] Part B Grants to States.

In mandatory spending, the resolution includes reconciliation instructions to the Committee on Education and the Workforce to create re-employment accounts as a temporary new benefit. As recommended in the President's economic growth proposal, $3.6 billion in mandatory BA is provided in 2003 for the establishment of these accounts.

Senate Amendment

For discretionary programs, the Senate amendment assumes $86.3 billion in BA and $75.8 billion in outlays for 2004. This represents an increase of $13.4 billion (18.5 percent) in BA over the 2003 level. The Senate amendment includes the following specific assumptions.

For Title I Grants to Local Education Agencies, the Committee-reported resolution assumed a $1 billion increase, bringing funding to $12.7 billion for academic year 2004-05. This represents an 8.6-percent increase over the previous academic year. An amendment adopted by the Senate added an additional $2 billion for No Child Left Behind programs. Another amendment adopted by the Senate added $2 billion for block grants to States for No Child Left Behind, special education, and vocational education programs.

For the Individuals with Disabilities Education Act [IDEA], the Committee-reported resolution assumed a $1-billion increase for Part B Grants to States, and a $205-million cap adjustment in 2004. In addition to maintaining the previous year's funding level, a $1-billion increase was assumed in each year thereafter through 2009, bringing IDEA funding to $6.2 billion above the baseline level in 2009. During its consideration of the resolution, the Senate adopted an amendment that increased IDEA levels by $970 million in 2004 and $2.3 billion in 2005.

The Committee-reported resolution assumed holding Impact Aid at the 2003 level. The Senate adopted an amendment to increase Impact Aid by $112 million, bringing its funding level to $1.3 billion in 2004.

For Pell Grants, the Committee-reported resolution assumed a $1.4 billion increase. The Senate adopted an amendment to increase Pell funding by an additional $1.8 billion, which would support a $4,500 maximum award. This brings total funding for Pell Grants to $14.5 billion in 2004.

The Senate amendment fully funds the President's request of $6.8 billion for Head Start, which would remain in HHS.

The Senate amendment reflects the President's proposals for reauthorization of the Workforce Investment Act [WIA] as well as an amendment adopted by the Senate to increase WIA funding by $678 million, bringing total funding to $5.6 billion.

The Senate amendment includes the administration's request for the Labor Department's Office of Labor-Management Standards, which reflects an additional $6 million to improve the transparency of union finances. The Senate amendment also reflects an additional $6-million increase to make whole the chronic under-funding of the Office in prior years.

The Senate amendment also assumes enactment of the CARE Act, as reported by the Senate Finance Committee, and therefore reflects an additional $275 million for the Social Services Block Grant for 2003 and an additional $1.1 billion for 2004.

The Senate amendment assumes adoption of the President's student loan forgiveness proposal at a cost of $45 million in 2004.

Among mandatory programs in this function, the Senate amendment reflects an amendment adopted by the Senate to create a New Homestead Venture Capital Fund, costing $1.2 billion over 10 years.

Conference Agreement

The resolution calls for $90.0 billion in BA and $84.2 billion in outlays in fiscal year 2004. The function totals are $468.4 billion in BA and $449.9 billion in outlays over 5 years, and $986.3 billion in BA and $955.6 billion in outlays over 10 years.

These levels accommodate a $3-billion increase from the previous year for the Department of Education, which would provide for a $1.3-billion increase for the Pell Grant program; a $50-million increase for the Impact Aid Program; and a $1-billion increase for Title I of the No Child Left Behind Act. Cumulatively, the Conference Agreement accommodates funding for No Child Left Behind programs of $1.5 billion above the President's proposed level. For the Part B Grants to States program of the Individuals with Disabilities Education Act, a $2.2-billion increase is provided for 2004, followed by an additional $2.5 billion increase in 2005. This increase of $4.7 billion over 2 years would raise the program's level of funding from $8.9 billion to $13.6 billion.

In mandatory spending, the resolution assumes the President's proposal to increase from $5,000 to $17,500 the maximum level of student loan forgiveness available to math, science, and special education teachers serving in low-income communities.

HEALTH: FUNCTION 550

Function Summary

Medicaid represents about 71 percent of the spending in this function. The function also includes the State Children's Health Insurance Program [SCHIP]; health research and training, including NIH and substance abuse prevention and treatment; and consumer and occupational health and safety, including the Occupational Safety and Health Administration.

The Department of Health and Human Services [HHS] plays a lead role in addressing bio-terrorism. Four key HHS components participate in homeland bio-terrorism security: the Centers for Disease Control and Prevention [CDC], the Food and Drug Administration [FDA], the Health Resources and Services Administration [HRSA], and the National Institutes of Health [NIH]. In fiscal year 2004, total spending for HHS's bioterrorism efforts would be $3.6 billion.

House Resolution

The House resolution calls for $235.1 billion in BA and $235.5 billion in outlays in fiscal year 2004, an increase of 5.9 percent in BA compared with fiscal year 2003. The function totals are $1,337.2 billion in BA and $1,334.8 billion in outlays over 5 years, and $3,196.9 billion in BA and $3,188.0 billion in outlays over 10 years.

For the Department of Homeland Security [DHS], the resolution reserves $5.6 billion over 10 years for BioShield, a program to accelerate research, development, and purchase of bioterrorism threat countermeasures. Also within Function 550, the resolution assumes $400 million to maintain and strengthen the Strategic National Stockpile.

The resolution provides for Medicaid reform to give States greater flexibility and to provide health insurance coverage for new populations. The budget establishes a reserve fund of $3.25 billion in fiscal year 2004 and $8.9 billion over 5 years for Medicaid reform. The proposal is budget-neutral over 10 years.

Other Medicaid policies include assumptions that expiring fiscal year 2000 State Children's Health Insurance Program funds will be extended for 1 year, that Transitional Medicaid Assistance and the QI-1 programs are extended for 5 years, and that the Vaccines for Children program will be modified to allow health departments to give vaccines.

The resolution also assumes enactment of abstinence education legislation and assumes States will have the option to expand Medicaid coverage for children with special needs, allowing families of disabled children the opportunity to purchase coverage under the Medicaid program for such children.

The budget assumes that by fiscal year 2004, NIH funding will have more than doubled over the 1998 level, to $27.9 billion.

Senate Amendment

For discretionary programs, the Senate amendment assumes $52.7 billion in BA and $50.8 billion in outlays for 2004. This represents an increase of $3.2 billion in BA over the 2003 level.

The omnibus appropriations bill of 2003 completed the planned 5-year doubling of the National Institutes of Health [NIH] budget from $13.7 billion in 1998 to $27.1 billion in 2003. Nonetheless, the Senate amendment includes an additional 10-percent increase for 2004, bringing total NIH funding to $29.7 billion in BA in 2004.

For mandatory programs, the Senate amendment includes several reserve funds. The Senate amendment assumes a reserve fund for the Finance Committee to reform Medicaid and the State Children's Health Insurance Program by providing flexibility to the States for innovation and expansion of coverage. The fund is based on the administration's proposal for a new Medicaid and SCHIP program option, under which States may take their Medicaid and SCHIP funding in a single Federal payment.

The Senate amendment includes another reserve fund for the Finance Committee to report legislation to extend the availability of SCHIP funds that will expire and restore availability of funds from 1998 and 1999 that have expired. According to CBO estimates, approximately $1.26 billion in SCHIP funds reverted to the Treasury on 1 October 2002, and $1.35 billion will return to the Treasury at the end of 2003. Beyond these amounts, the reserve fund would allow such legislation to provide an additional $1.825 billion in BA and $975 million in outlays over 10 years to the States to ease some of the financial strain they face as well as to cover more children under their SCHIP programs.

The Senate amendment includes an $88 billion reserve fund for the Finance Committee to report legislation that would assist the 41 million uninsured Americans in gaining access to quality, affordable health insurance.

The Senate amendment includes a reserve fund for the HELP Committee for the creation of Project Bioshield, a comprehensive effort to develop effective countermeasures against biological and other dangerous agents. Over the next 10 years, almost $6 billion will be available to purchase new countermeasures for smallpox, anthrax, and botulism toxin as well as to produce and purchase countermeasures for other dangerous agents, such as Ebola and plague, once safe and effective treatments are developed.

The Senate amendment includes savings of $3.346 billion over 10 years for medical liability reform.

Conference Agreement

The Conference Agreement calls for $240.6 billion in BA and $238.8 billion in outlays in fiscal year 2004. The function totals are $1,401.2 billion in BA and $1,396.6 billion in outlays over 5 years, and $3,375.4 billion in BA and $3,363.5 billion in outlays over 10 years.

The Agreement reserves $5.6 billion in funding over 10 years to allow the Department of Homeland Security to procure, for inclusion in the Strategic National Stockpile, countermeasures necessary to protect the public health from current and emerging threats of chemical, biological, radiological or nuclear agents. For Medicaid reform, the Agreement establishes a reserve fund of $3.3 billion in fiscal year 2004, and $8.9 billion over 5 years. The fund is budget neutral over 10 years. Other reserve funds in the Agreement include $161 million in new BA in 2004 and $50 billion over 10 years to increase access to health insurance for the uninsured; and $43 million in new BA in 2004 and $7.5 billion over 10 years for the Family Opportunity Act. Other assumptions include a 1-year extension of certain State Children's Health Insurance Program funds--specifically fiscal year 1998 and 1999 funds that have expired, and fiscal year 2000 funds that are expiring. In addition, the Conference Agreement assumes that Transitional Medicaid Assistance and the QI-1 programs are extended for 5 years. It also assumes funding for abstinence education.

The Agreement assumes savings of $3.7 billion over 10 years resulting from the impact of medical liability reform on Medicaid, FEHBP, and DOD. The figure reflects an updated cost estimate from the Congressional Budget Office for the 108th Congress.

MEDICARE: FUNCTION 570

Function Summary

This budget function reflects the Medicare Part A Hospital Insurance [HI] Program, Part B Supplementary Medical Insurance [SMI] Program, and premiums paid by qualified aged and disabled beneficiaries. It also includes the `Medicare+Choice' Program, which covers Part A and Part B benefits and allows beneficiaries to choose certain private health insurance plans. Medicare+Choice plans may include health maintenance organizations, preferred provider organizations, provider-sponsored organizations, and private fee-for-service plans. In addition to covering all Medicare-covered services, such plans may add benefits or reduce cost-sharing required by the traditional Medicare program.

House Resolution

The House resolution calls for $266.5 billion in BA and $266.9 billion in outlays in fiscal year 2004, an increase of 7.2 percent in BA compared with fiscal year 2003. The function totals are $1.6 trillion in BA and $1.6 trillion in outlays over 5 years and $3.9 trillion in BA and $3.9 trillion in outlays over 10 years. Over the 2004-13 period, Medicare spending grows by 7.8 percent.

The House budget resolution includes a reserve fund of $400 billion over 10 years for Medicare modernization and a prescription drug benefit. The $400 billion amount is equal to the amount the President proposed in his fiscal year 2004 budget. This amount is in addition to the $54 billion increase in Medicare spending in the Fiscal Year 2003 Omnibus Appropriations Bill.

Senate Amendment

The Senate amendment assumes the President's proposal to provide additional Medicare funds to improve access to prescription drugs for all beneficiaries and to strengthen and modernize the program. This funding is included in a reserve fund, which contains up to $400 billion for the 2004-13 period.

The Senate amendment also assumes savings of $7.9 billion dollars over 10 years in Medicare from the passage of medical liability reform. The Congressional Budget Office has determined that limits on medical malpractice litigation would lower the cost of malpractice insurance for physicians, hospitals, and other health care providers and organizations. That reduction in insurance costs would, in turn, lead to lower charges for health care services and procedures, and ultimately, to a decrease in rates for health insurance premiums.

Conference Agreement

The Conference Agreement calls for $266.0 billion in BA and $266.3 billion in outlays in fiscal year 2004, $1,583.3 billion in BA and $1,583.4 billion in outlays over 5 years, and $3,867.7 billion in BA and $3,867.6 billion in outlays over 10 years.

The Conference Agreement includes separate Medicare reserve funds for the House and Senate, each of which provides $7 billion in fiscal year 2004 and $400 billion over 10 years. The $400-billion level is equal to the amount the President proposed in his fiscal year 2004 budget.

The Conference Agreement also assumes savings of $11.2 billion over 10 years in Medicare from the passage of medical liability reform legislation. This amount reflects the updated cost estimate from the Congressional Budget Office for the 108th Congress.

INCOME SECURITY: FUNCTION 600

Function Summary

The Income Security function includes most of the Federal Government's income support programs. These include: general retirement and disability insurance (excluding Social Security)--mainly through the Pension Benefit Guaranty Corporation [PBGC]--and benefits to railroad retirees. Other components are Federal employee retirement and disability benefits (including military retirees); unemployment compensation; low-income housing assistance, including section 8 housing; food and nutrition assistance, including food stamps and school lunch subsidies; and other income security programs.

This last category includes: Temporary Assistance to Needy Families [TANF], the Government's principal welfare program; Supplemental Security Income [SSI]; spending for the refundable portion of the Earned Income Credit [EIC]; and the Low Income Home Energy Assistance Program [LIHEAP]. Agencies involved in these programs include the Departments of Agriculture, Health and Human Services, Housing and Urban Development, the Social Security Administration (for SSI), and the Office of Personnel Management (for Federal retirement benefits).

Over the period 1998-03, BA in the function has had an average annual increase of 6.4 percent.

House Resolution

The House resolution calls for $315.9 billion in BA and $321.6 billion in outlays in fiscal year 2004. The function totals are $1,658.0 billion in BA and $1,672.7 billion in outlays over 5 years, and $3,524.3 in BA and $3,543.0 in outlays over 10 years. The reauthorization of the contingency fund in the TANF program causes a one-time spike in BA and outlays during fiscal year 2003 relative to the remaining period of the reauthorization.

The resolution assumes that the TANF block grant, as well as the related child care entitlement to States and other elements of the 1996 welfare reform law will be reauthorized during fiscal year 2003 as passed by the House on 13 February 2003 in the Personal Responsibility, Work, and Family Promotion Act of 2003, which accommodates an additional $2.4 billion in mandatory spending above the baseline for these programs over 5 years (2003-08). The resolution allows for an additional $1 billion over 5 years above current law for the mandatory child care entitlement to States.

The resolution also accommodates the President's proposal to offer States an optional block grant for foster care payments. The resolution assumes $6.9 billion in 2004 for Foster Care and Adoption Assistance, including the Independent Living program, which provides assistance to youths who are aging out of foster care.

The resolution assumes a decline in Unemployment Insurance benefit payments in fiscal year 2004, relative to 2003, because extended Federal Unemployment Insurance benefits enacted on 8 January 2003 will terminate on 31 May 2003, and because economic assumptions assume a drop in the unemployment rate in 2004.

The resolution seeks to reduce erroneous overpayments in SSI by accommodating $1.4 billion to conduct Continuing Disability Reviews [CDRs] of SSI Disability recipients to ensure that they are sufficiently disabled to remain eligible for benefits.

The resolution assumes the outlay portions of refundable tax credits contained in the President's economic growth package of tax incentives, together with the outlay effects of making refundable tax credit policies of the 2001 tax cuts permanent. Outlays are assumed for the Earned Income Tax Credit and the Child Tax Credit under these provisions.

The resolution also assumes enactment of legislation such as H.R. 4069 (from the 107th Congress), providing for enhancement of Social Security benefits for women.

Senate Amendment

For discretionary programs, the Senate amendment assumes $45.7 billion in BA and $51.5 billion in outlays for 2004. This represents an increase of $1.7 billion in BA and $763 million in outlays from the 2003 level. The Senate amendment includes the following specific assumptions.

The Senate amendment includes an additional $9 million for the Employee Benefit Security Administration for pension protection and employer education.

The Senate amendment incorporates the administration's plan to reform the Federal Employee Compensation Act. These changes will save taxpayers approximately $80 million over 10 years.

The Senate amendment incorporates a debt restructuring and interest refinancing plan for the Black Lung Trust Fund.

The Senate amendment includes the President's proposal for food and nutrition funding totaling $41.7 billion for 2004. The Senate amendment increases funding for the Women's Infant and Children program by $73 million, or 1.6 percent more than 2003.

The Senate amendment assumes reauthorization the Personal Responsibility and Work Act and therefore assumes an increase above the President's request for the Child Care Development Block Grant. The Senate amendment assumes an increase for 2004 of $214 million over the 2003 level, a 10.2-percent increase.

The Senate amendment includes the President's proposal to eliminate a discretionary limit on administrative expenditures for the Pension Benefit Guarantee Corporation.

Under the Senate amendment, sufficient budget authority is provided to renew all utilized section 8 housing contracts as contemplated in the 2003 Omnibus Appropriations Bill.

Among mandatory programs in this function, the Senate amendment assumes the President's request to reauthorize the landmark 1996 welfare reform legislation, which replaced the 60 year-old Aid to Families with Dependent Children program with the Temporary Assistance to Needy Families block grant. The Senate amendment also assumes the President's priority to promote healthy marriages, fatherhood and family formation. The Senate amendment is supportive of efforts to capitalize and develop the role of sustainable social services, such as Goodwill, which are critical to the success of moving welfare recipients to work.

The Senate amendment assumes an increase of $200 million annually above the baseline in the Child Care Entitlement to States.

The Senate amendment also assumes aspects of the President's proposal to enhance Child Support Enforcement collections. Child Support Enforcement efforts will increase collections and direct more of the support collected to children and families.

The Senate amendment assumes the President's Foster Care and Adoption Assistance proposal, providing States with increased flexibility to better design their child welfare system that supports services to families in crisis and children at risk.

Conference Agreement

The conference agreement calls for spending of $319.5 billion in BA and $324.8 billion in outlays in 2004, and $1,706.1 billion in BA and $1,720.0 billion in outlays over the period 2004-08. Over the period 2004-13, the agreement calls for spending of $3,686.9 billion in BA and $3,703.5 billion in outlays.

The conference agreement assumes reauthorization of TANF at the level requested by the President, which is largely consistent with H.R. 4 as passed by the House on 13 February, 2003. It also provides $2.0 billion above the baseline level for the mandatory Child Care Entitlement to States, as assumed in the Senate budget resolution. The Agreement assumes funding for the incentive to States to reform child welfare programs as proposed by the President. It also assumes savings from pre-effectuation reviews of applications for Supplemental Security Income benefits.

SOCIAL SECURITY: FUNCTION 650

Function Summary

Function 650 consists of the Social Security Program, or Old Age, Survivors, and Disability Insurance [OASDI]. Under provisions of the Congressional Budget Act and the Budget Enforcement Act, Social Security trust funds are `off budget.' Nevertheless, a small portion of spending in Function 650--specifically a portion of the budget for the Office of the Inspector General of the Social Security Administration [SSA], the quinquennial adjustment for World War II veterans, and general fund transfers of taxes paid on Social Security benefits--are on budget.

House Resolution

Total on-budget spending in the House resolution is $14.2 billion in BA and outlays.

Senate Amendment

The Senate amendment assumes the on-budget totals for Social Security will be $14.3 billion in BA and outlays for 2004 and $223.8 billion in BA and outlays over 2004-13. The Senate amendment assumes discretionary spending in this function, for the administrative expenses of the Social Security Administration, would total $4.3 billion in BA and $4.2 billion in outlays for 2004. This represents an increase of $0.4 billion, or 11.7 percent, in BA above the 2003 level. The Senate amendment assumes no mandatory increases or decreases in this function.

Conference Agreement

The Conference Agreement calls for on-budget amounts as follows: $14.3 billion in BA and outlays in 2004; $83.8 billion in BA and outlays for 2004-08; and $223.8 billion in BA and outlays over the 2004-13 period. The House accepts the Senate's method of recording certain pension offsets.

VETERANS BENEFITS AND SERVICES: FUNCTION 700

Function Summary

The Veterans Benefits and Services function includes funding for the Department of Veterans Affairs [VA], which provides benefits to veterans who meet various eligibility rules. Benefits range from income security for veterans, principally disability compensation and pensions; veterans education, training, and rehabilitation services; hospital and medical care for veterans; and other veterans' benefits and services, such as home loan guarantees. There are about 25 million veterans, but over the next 20 years this number will decline by one-third, to about 17 million.

House Resolution

The House resolution calls for $61.6 billion in BA and $61.1 billion in outlays in fiscal year 2004, an increase of 5.4 percent in BA compared with fiscal year 2003. The function totals are $319.5 billion in BA and $318.2 billion in outlays over 5 years; and $671.7 billion in BA and $668.9 billion in outlays over 10 years.

The resolution supports a $1.3-billion increase in veterans medical care. It assumes the expansions and revisions of mandatory benefits proposed by the administration's fiscal year 2004 budget, as well as: continuation of Dependency and Indemnity Compensation for surviving spouses who remarry after age 55; an increase in auto allowance from $9,000 to $11,000 for severely disabled veterans; and accrued benefits for veterans survivors.

Senate Amendment

The Senate amendment assumes levels for this function of $63.8 billion in BA and $63.2 billion in outlays. This represents an increase of 10.7 percent, or $6.2 billion, in BA. The Senate amendment assumes funding of $693.7 billion in BA and $689.2 billion in outlays over 2004-13.

For discretionary spending, the Senate amendment assumes $30.0 billion in BA and $29.6 billion in outlays for 2004. This represents an increase of 12.9 percent, or $3.4 billion, in BA over the 2003 level. The Senate amendment proposes to refocus resources to benefit higher priority veterans.

The Senate amendment proposes total net funding of $29.0 billion for the Department of Veterans Affairs [VA] medical programs. This is an increase of 14.6 percent, or $3.7 billion, above the 2003 enacted level, and the largest increase for medical care in the past 5 years. This increase will help the VA in its mission to provide medical care to its core constituency low-income and service-connected disabled veterans.

The Senate amendment assumes the enactment of legislation to establish the President's proposed $250 enrollment fee for priority level 7 and 8 veterans. Priority 7 and 8 veterans have ailments that are not service connected and have a higher income than other veterans using the VA hospitals. The enrollment fee would generate offsetting receipts of $102 million in 2004 for the Medical Care Collections Fund [MCCF].

The Senate amendment also assumes legislation will be enacted to increase the insurance and prescription drug co-payments for Priority 7 and 8 veterans to $20 and $15, respectively, as proposed by the President. In addition, the Senate amendment reflects the President's proposal to eliminate both the insurance and prescription drug co-payment for priority level 2 through 5 veterans. These changes in the prescription drug and insurance co-payments would yield offsetting receipts of $224 million in 2004 into MCCF.

For mandatory veterans programs, the Senate amendment assumes the President's proposal to enact legislation to restore the original interpretation of section 1110 of title 38 U.S. Code will be enacted. Section 1110 prohibits compensation for alcohol or drug abuse that arises secondarily from a service connected disability. In February 2001, the U.S. Court of Appeals decided that section 1110 did not preclude compensation for alcohol or drug abuse arising secondarily from a service connected disability. This proposal would save $71 million over 10 years.

Conference Agreement

The Conference Agreement calls for $63.8 billion in BA and $63.2 billion in outlays in fiscal year 2004. The function totals are $327.9 billion in BA and $325.6 billion in outlays over 5 years; and $693.9 billion in BA and $689.4 billion in outlays over 10 years. The Agreement assumes no revisions in mandatory programs.

The Conference Agreement provides for discretionary BA of $29.96 billion for fiscal year 2004, an increase of $3.4 billion, or 12.9 percent--nearly all of which is expected to be for Department of Veterans Affairs [VA] medical programs. An increase of this magnitude will help the VA in its mission to provide medical care to its core constituency--low-income and service-connected disabled veterans, as well as the cost of medical care for combat veterans returning from Iraq in accordance with Public Law 105-368.

ADMINISTRATION OF JUSTICE: FUNCTION 750

Function Summary

Function 750 supports the majority of Federal justice and law enforcement programs and activities. This includes funding for the Department of Justice, much of the newly formed Department of Homeland Security [DHS], as well as the financial law enforcement activities of the Department of the Treasury, Federal courts and prisons, and criminal justice assistance to State and local governments.

House Resolution

The House resolution calls for $37.3 billion in BA and $40.9 billion in outlays for this function for fiscal year 2004. The function totals over 10 years are $404.2 billion in BA and outlays.

The House resolution fully funds the Department of Homeland Security [DHS] components reflected in this function, including: securing the Nation's borders; enhancing Federal, State, and local law enforcement efforts; stopping terrorist financing; and bringing terrorist conspirators to justice.

The resolution also provides for $18.7 billion in discretionary funding for the Department of Justice, and thus allows for the hiring of 2,170 new employees, including 1,911 new FBI personnel.

Also in this function, the resolution assumes $9 million for the mandatory costs associated with creating 62 new Federal judgeships and extending five existing bankruptcy judgeships.

Senate Amendment

The Senate amendment assumes funding for this function will total $37.8 billion in BA and $40.9 billion in outlays. This represents a decrease of 2.0 percent, or $0.8 billion, in BA from 2003. The Senate amendment assumes funding of $406.4 billion in BA and $408.7 billion in outlays over 2004-13.

For discretionary programs, the Senate amendment assumes $33.7 billion in BA and $37.6 billion in outlays for 2004. This represents a decrease of $2.6 billion in BA from the 2003 level. The Senate amendment includes the following specific assumptions.

For the Department of Homeland Security, the Senate amendment assumes $5.6 billion in discretionary funds in 2004 for the Bureau of Customs and Border Protection, an increase of $800 million (16.7 percent) more than in 2003. For the DHS Bureau of Immigration and Customs Enforcement, the Senate amendment assumes $1.4 billion for 2004, an increase of $0.3 billion or 26 percent more than in 2003. The Senate also adopted an amendment to add $150 million in BA in 2004 and 2005 for additional port security needs.

For the Federal Bureau of Investigation [FBI], the Senate amendment assumes a total of $4.1 billion, an increase of $397 million (10.6 percent) from 2003. This increase would be primarily used for intelligence analysts, surveillance personnel, and field investigators, including cybercrime investigators, as well as to support FBI-led interagency task forces.

The Senate amendment also assumes $500 million for the Office of Domestic Preparedness to be used exclusively for grants to local law enforcement agencies to combat terrorism.

The Senate amendment assumes two mandatory proposals in the President's budget concerning the extension of expiring Customs user fees. If extended, the combined resulting collections would be $1.3 billion in 2004 and $17.8 billion through 2013.

Conference Agreement

The function totals for the Conference Agreement are $37.6 billion in BA and $40.8 billion in outlays for fiscal year 2004; $191.5 billion in BA and $195.7 billion in outlays over 5 years; and $406.3 billion in BA and $408.6 billion in outlays over 10 years.

The Agreement fully funds the President's request for the Department of Justice and the programs and activities of the Department of Homeland Security in Function 750. The Agreement also assumes additional funding for Bankruptcy and other Federal judges.

GENERAL GOVERNMENT: FUNCTION 800

Function Summary

The General Government function consists of the activities of the Legislative Branch; the Executive Office of the President; general tax collection and fiscal operations of the Department of Treasury (including the Internal Revenue Service [IRS]); the property and personnel costs of the General Services Administration and the Office of Personnel Management; general purpose fiscal assistance to States, localities, the District of Columbia, and U.S. territories; and other general government activities. The IRS accounts for about half of the spending in this function.

House Resolution

The House resolution calls for $19.8 billion in BA and $19.6 billion in outlays in fiscal year 2004, an increase of 8.8 percent in BA compared with fiscal year 2003. The function totals are $99.3 billion in BA and $98.9 billion in outlays over 5 years, and $206.4 billion in BA and $203.9 billion in outlays over 10 years.

The House Passed resolution accommodates $500 million for the newly created Election Assistance Commission. It also assumes the President's mandatory spending proposal to pay financial institutions for their services in lieu of providing compensating balances; and continuation of fiscal assistance provided to the Compact of Free Association between the United States Government and the government of the Federated States of Micronesia.

Senate Amendment

For discretionary programs, the Senate amendment assumes $17.1 billion in BA and $16.8 billion in outlays for 2004. This represents an increase of $1.4 billion in BA from the 2003 level. The Senate amendment includes the following specific assumptions.

The Senate amendment allocates $10.4 billion for the Internal Revenue Service [IRS], an increase of $550 million or almost 6 percent over 2003. Of that increase, 50 percent is directed into Tax Law Enforcement [TLE], 23 percent toward Processing Assistance and Management [PAM], and 19 percent for reducing fraud in the Earned Income Tax Credit [EITC] program.

The Senate amendment allocates $223 million for Payments in Lieu of Taxes [PILT] for 2004, $23 million more than the President's request. Over the next decade, this translates into an additional $300 million above the President's request. These payments compensate municipal governments for forgone revenues stemming from the presence of the Federal Government.

The Senate amendment increases Homeland Security funding within Function 800 by $214 million in 2004. The additional funds are dedicated to developing the site plan for the new headquarters, converting wireless radio communication to narrowband operations and bolstering security at Federal buildings.

For mandatory programs, the Senate amendment reflects the President's proposal to open ANWR for oil and gas leasing (the total Federal receipts portion appears in Function 950, Offsetting Receipts). The State of Alaska would receive a payment of one-half of the proceeds, or $1.7 billion in 2006, which is reflected in Function 800.

The Senate amendment assumes that President's $386 million Financial Agent Services proposal is enacted. Currently, financial institutions that operate major collection and payment programs on behalf of the Federal Government are reimbursed via compensating balances. The President's proposal would instead replace the existing barter arrangement with a more transparent fee-for-service agreement.

In its examination of selected Government programs, OMB determined through the Performance Assessment Rating Tool [PART] that IRS collection efforts do not efficiently utilize its available resources. In response, the President proposes legislation that would permit the IRS to enlist the help of private collection agencies to obtain payment from delinquent taxpayers. The Senate amendment includes $226 million in mandatory funding in 2004 for this proposal.

Conference Agreement

The Conference Agreement for Function 800 calls for $20.2 billion in BA and $20.1 billion in outlays in fiscal year 2004. The functional totals are $103.9 billion in BA and $103.2 billion in outlays over 5 years, and $221.3 billion in BA and $218.2 billion in outlays over 10 years.

The Conference Agreement reflects the Senate amendment on funding for PILT.

In fiscal year 2004, the Conference Agreement assumes the President's $386 million Financial Agent Services proposal is enacted. It also assumes that Compacts of Free Association are ratified and therefore accommodates $19 million for this purpose in 2004.

NET INTEREST: FUNCTION 900

Function Summary

Net interest is the interest paid for the Federal Government's borrowing less the interest received by the Federal Government from trust fund investments and loans to the public. Function 900 is a mandatory payment, with no discretionary components.

On-budget BA and outlays for net interest has gone from $287.8 billion in fiscal year 1998 to $239.7 billion in fiscal year 2003, an overall decrease of 3.6 percent per year.

House Resolution

For on-budget interest, the resolution calls for $256.7 billion in BA and outlays in fiscal year 2004, an increase of 7.2 percent compared with fiscal year 2003. The function totals are $1,659.4 billion in BA and outlays over 5 years, and $3,910.9 billion in BA and outlays over 10 years. For off-budget interest, it calls for -$89.8 billion in BA and outlays in fiscal year 2004, a decrease of 6.7 percent compared with fiscal year 2003. The function totals are -$554.2 billion in BA and outlays over 5 years, and -$1,481.3 billion in BA and outlays over 10 years.

The resolution assumes a reduction in interest payments of $0.3 billion in BA and outlays in fiscal year 2004 and $5.3 billion in BA and outlays over 10 years. This saving arises from replacing Treasury's compensating balances by a permanent indefinite appropriation (see Function 800) that would result in lower borrowing by the Federal Government.

Senate Amendment

For 2004, the Senate amendment sets forth on-budget levels of $255.8 billion in BA and outlays. Over the 2004-2013 period, it provides on-budget amounts of $3,889.2 billion in BA and outlays.

The Senate amendment assumes two additional policies that affect net interest. The first is the President's proposal to pay financial institutions for their services in lieu of providing compensating balances (discussed in Function 800), which results in lower borrowing by the Federal Government and saves $5.3 billion in interest over 10 years. The second is the Postal Service pension proposal (discussed in Functions 370 and 950), which results in a reduction in interest received by the Federal Government.

Conference Agreement

The Conference Agreement calls for on-budget amounts of 259.4 billion in BA and outlays in fiscal year 2004, and $4,072.6 billion over the 2004-13 period.

ALLOWANCES: FUNCTION 920

Function Summary

The Allowances function is used for planning purposes to reflect the aggregate budgetary effects of proposals or assumptions that relate to programs in other budget functions. Once such changes are enacted, the budgetary effects are distributed to the appropriate budget functions.

There is no spending history in Function 920 for the reason mentioned above.

House Resolution

The House resolution calls for -$1.1 billion in BA and -$0.6 billion in outlays in fiscal year 2004, all of it in discretionary spending. The function totals are -$1.1 billion in BA and outlays for both the 5-year and the 10-year periods. There are offsets in Functions 500 and 700: $0.2 billion in BA and outlays in Function 500, for Impact Aid; and -$1.1 billion in BA and outlays in Function 700 to match the function total with the President's.

Senate Amendment

The Senate Amendment assumes levels for this function would total -$16.1 billion in BA and -$8.3 billion in outlays for 2004. Initially, the Committee-reported resolution only assumed discretionary effects in this function (totaling -$3.9 billion in BA and -$3.6 billion in outlays for 2004). These assumptions reflected removal of the effects of pay annualization in the baseline (which would reduce discretionary BA by about $2 billion annually); an alternate growth scenario for the path of nondefense discretionary spending after 2008 (the last year of the President's 2004 budget); and an unspecified offset for an increase in veterans medical care.

During consideration of the Committee-reported resolution, the Senate adopted 10 amendments that provided unspecified discretionary offsets in Function 920 for specific assumptions affecting other portions of the budget, and one amendment for an unspecified mandatory offset in Function 920 for spending increases in Functions 450 and 500.

Conference Agreement

The Agreement calls for -$7.6 billion in BA and $22.3 billion in outlays in fiscal year 2004.

UNDISTRIBUTED OFFSETTING RECEIPTS: FUNCTION 950

Function Summary

Offsetting Receipts recorded in this function are either intragovernmental (a payment from one Federal agency to another, such as agency payments to the retirement trust funds) or proprietary (a payment from the public for some kind of business transaction with the Government). The main types of receipts recorded in this function are: the payments Federal employers make to employee retirement trust funds; payments made by companies for the right to explore and produce oil and gas on the Outer Continental Shelf; and payments by those who bid for the right to buy or use public property or resources, such as the electromagnetic spectrum. These receipts are treated as mandatory negative spending.

House Resolution

The House resolution calls for -$52.9 billion in BA and outlays for this function in fiscal year 2004, reflecting a -$2.4 billion, or -4.8 percent, increase in receipts (or decrease in spending) compared to the fiscal year 2003 budget. This amount is the baseline for offsetting receipts increased by the reduction ($2.7 billion) in the Postal Service's contribution to the Civil Service Retirement System. Over the 2004-08 period, BA and outlays are to further decrease by $16.1 billion due to an average increase for receipts of 5.7 percent per year. Over 10 years, receipts are to total -$676.0 billion in BA and outlays.

On-Budget Receipts. The resolution calls for -$42.9 billion in BA and outlays in fiscal year 2004, a decrease of 4.4 percent in BA compared with fiscal year 2003. The function totals are -$255.0 billion in BA and outlays over 5 years, and -$539.4 billion in BA and outlays over 10 years. Over the 2004-08 period, on-budget BA and outlays further decrease an average of 5.4 percent per year.

Off-Budget Receipts. The resolution assumes -$10.0 billion in BA and outlays in fiscal year 2004, a decrease of 6.6 percent in BA compared with fiscal year 2003. The off-budget function totals -$57.6 billion in BA and outlays over 5 years, and -$136.5 billion in BA and outlays over 10 years. Over the 2004-08 period, BA and outlays further decrease an average of 6.8 percent per year. The off-budget receipts in this function are agencies' payments to the Social Security trust funds at baseline.

Senate Amendment

The Senate amendment assumes additional offsetting receipts of $2.15 billion over the 2004-13 period, consistent with opening up the 1002 area of the Arctic National Wildlife Refuge for oil exploration and production in order to decrease our dependence on foreign oil (the payment of a share of these receipts to the State of Alaska is reflected in Function 800). An amendment to the Committee-reported resolution adopted by the Senate struck the reconciliation instruction to the Senate Energy Committee to report legislation producing that level of savings.

The Senate amendment also assumes legislation (S. 380, as cleared for the President on 8 April 2003) that would reduce the Postal Service payment to the Civil Service Retirement [CSRS] trust fund for 2003-05, but then would reinstate and redirect the payment to an escrow fund until Congress can enact subsequent law regarding how the Postal Service should address its retiree health liabilities and other concerns. This proposal would increase the unified deficit by $7.3 billion over the 2003-13 period. The budgetary effect on the Postal Service is reflected in Function 370, and the effect on the receipts of the CSRS fund are shown in this function (a small interest effect appears in Function 900).

The Senate amendment assumes the President's proposals to extend the authority of the Federal Communications Commission to auction spectrum (which would otherwise expire at the end of 2007) and to impose an efficiency fee on users of spectrum not acquired through Federal auction.

Conference Agreement

On-Budget Receipts. For these receipts, the Agreement assumes -$42.9 billion in BA and outlays in fiscal year 2004; -$250.2 billion over 5 years; and -$540.2 billion over 10 years.

Off-Budget Receipts. The Agreement assumes -$10.0 billion in BA and outlays in fiscal year 2004; -$57.6 billion over 5 years; and -$136.5 billion over 10 years.

The Agreement assumes extended authority to auction the electromagnetic spectrum. It makes no assumption concerning the Arctic National Wildlife Refuge.

RECONCILIATION INSTRUCTIONS

Under section 310(a) of the Congressional Budget Act, the budget resolution may include directives to the committees of jurisdiction to make revisions in law necessary to accomplish a specified change in spending or revenues. If the resolution includes directives to only one committee of the House or Senate, then that committee is required to directly report to its House legislative language of its design that would implement the level of spending or revenue changes provided for in the resolution. Any bill considered pursuant to a reconciliation instruction is subject to special procedures set forth in sections 310 and 313 of the Budget Act.

House Resolution

Section 201. Reconciliation

Section 201 provides for two different reconciliation bills. The first reconciliation bill is designed to stimulate economic growth and to simplify and reform the tax system. It has two separate directives: The Committee on Ways and Means must reduce the total level of revenues by not more than $35.4 billion for fiscal year 2003, $112.8 billion for fiscal year 2004, $387.7 billion for the period of fiscal years 2004 through 2008, and $662.8 billion for the period of fiscal years 2004 through 2013. It must also increase the level of direct spending by $4.4 billion in outlays for fiscal year 2003, $1.1 billion in outlays for fiscal year 2004, $17.4 billion in outlays for the period of fiscal years 2004 through 2008, and $23.1 billion in outlays for the period of fiscal years 2004 through 2013. It also requires the Education and the Workforce to increase direct spending by $3.6 billion for FY2003. These changes must be transmitted to the Budget Committee by 11 April 2003.

The House resolution also instructs 13 committees to reduce spending on programs within their jurisdiction to the Budget Committee by 18 July 2003. The intent of the instruction is to reduce instances of waste fraud and abuse in these program areas. The committees may choose their own methods of complying with the directives. The committees are as follows: Agriculture, Education and the Workforce, Energy and Commerce, Financial Services, Government Reform, House Administration, International Relations, the Judiciary, Resources, Science, Transportation and Infrastructure, Veterans Affairs, and the Ways and Means. Each committee is required to reduce its spending by one percent.

Senate Amendment

Section 104. Reconciliation in the Senate

The Senate amendment instructs the Finance Committee to report legislation by 8 April 2003 to reduce revenues by $322.5 billion over 2003-2013 and to increase direct spending related to tax policy changes by $27.5 billion over 2003-2013 (reflected in function 600). The Committee-reported resolution had reconciled the Finance Committee for a reduction in revenues and an increase in outlays consistent with President Bush's jobs and growth tax relief plan--$725.8 billion over the 2003-2013 period. During consideration of the Committee-reported resolution, the Senate adopted several amendments that reduced the revenue reconciliation instruction to the Finance Committee.

Conference Agreement

Section 201. Reconciliation for economic growth and tax simplification and fairness

Section 201(a) of the Conference Agreement includes a reconciliation directive to the House Ways and Means Committee to report legislation by 8 May 2003 to stimulate economic growth and to simplify and reform the tax system. The committee must reduce the total level of revenues by not more than $535.0 billion for the period of fiscal years 2003 through 2013, and to increase direct spending related to tax policy changes by $15.0 billion over 2003-2013.

Section 201(b) of the Conference Agreement instructs the Senate Finance Committee to report legislation by 8 May 2003 to reduce revenues by $522.524 billion over 2003-2013 and to increase direct spending related to tax policy changes by $27.476 billion over 2003-2013 (reflected in function 600).

Section 202. Limit on Senate consideration of reconciliation

Section 202 of the Conference Agreement limits initial Senate consideration of a reconciliation bill reported pursuant to Section 201, or any amendment thereto, to no more than $322.524 billion in revenue reductions and $27.476 billion in outlay increases for the period of fiscal years 2003 through 2013, enforced by a 60-vote point of order. The limitation would not apply to a conference report on legislation considered pursuant to this Title.

SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE

Section 301. Submissions to eliminate waste, fraud, and abuse

Section 301 of the Conference Agreement requires authorizing committees in the House and the Senate to submit findings to the appropriate Budget Committee identifying instances of waste fraud and abuse in programs within their jurisdiction sufficient to reduce outlays by an amount to be specified by the chairmen of the Budget Committees. Such a specified amount must be inserted in the Congressional Record by 19 May 2003. The findings of the authorizing committees must be submitted to the Budget Committees by 2 September 2003. These findings will be used by the Budget Committees in the development of future budget resolutions.

In the House, the authorizing committees directed to report these findings are: Agriculture, Armed Services, Education and the Workforce, Energy and Commerce, Financial Services, Government Reform, House Administration, International Relations, Judiciary, Resources, Science, Small Business, Transportation and Infrastructure, Veterans' Affairs, and Ways and Means.

In the Senate, the authorizing committees directed to report these findings are: Agriculture, Nutrition and Forestry; Armed Services; Banking, Housing, and Urban Affairs; Commerce, Science, and Transportation; Energy and Natural Resources; Environment and Public Works; Finance; Foreign Relations; Governmental Affairs; Health, Education, Labor, and Pensions; Judiciary; Small Business; Veterans' Affairs; and Indian Affairs.

Finally, the Comptroller-General of the General Accounting Office is directed to submit to the Budget Committees a report identifying instances in which the committees of jurisdiction can make legislative changes to improve the economy, efficiency, and effectiveness of Federal programs. The report must be submitted by 2 September 2003.

RESERVE FUNDS, CONTINGENCY PROCEDURES, AND ADJUSTMENTS

House Resolution

Section 301. Medicare modernization and prescription drugs

Section 301 creates a reserve fund for legislation that provides a prescription drug benefit and modernizes Medicare, and provides adjustments to the Medicare program on a fee-for-service, capitated, or other basis. It creates a separate allocation for Medicare and then permits the Chairman of the House Budget Committee to make adjustments to that allocation for such legislation. The committees with jurisdiction over Medicare may report legislation for these purposes, though the adjustment made must be no more than $7.5 billion in fiscal year 2004 and $400 billion for fiscal years 2004 through 2013. Pursuant to section 321(d), legislation must be within the allocations provided by the budget resolution in the first year and five-year period. Because of the separate Medicare allocation established in section 301(c), Medicare legislation must be within its allocation in the first year and the ten-year period. For legislation other than Medicare, the applicable allocation is for the first and five-year period.

Section 302. Reserve fund for Medicaid

Section 302 creates a reserve fund that allows the Chairman of the House Budget Committee to adjust the allocation of BA and outlays to the Committee on Energy and Commerce for any measure that combines funding for Medicaid and the State Children's Health Insurance Program [SCHIP]. The purpose of this reserve fund is to ensure, as a condition for setting any increase in the allocation, the bill is deficit neutral over ten years. The adjustments in the allocations may not exceed $3.3 billion in new BA and outlays for fiscal year 2004; and $8.9 billion in new BA and outlays for the period of fiscal years 2004 through 2008.

Section 303. Reserve fund for Bioshield

In section 303, the Chairman of the House Budget Committee is permitted to adjust the allocation of BA and outlays to the appropriate committees for a bill that establishes a program to accelerate the research, development, and purchase of biomedical threat countermeasures.

The adjustment can accommodate either a discretionary or mandatory program, depending on the structure of the program in the authorizing legislation. If it is mandatory, the adjustment may not exceed $890 million in new mandatory BA for fiscal year 2004, and $3.4 billion in new mandatory BA for fiscal years 2004 through 2008. If it is discretionary, the adjustment would be made in the Appropriations Committee's 302(a) allocation for fiscal year 2004 because that allocation is made for only a single fiscal year. If the program includes both mandatory and discretionary components or if two bills are enacted, the maximum adjustment the committee may make in fiscal year 2004 is $890 million in BA.

Section 311: Contingency procedure for surface transportation

In section 311, the House resolution creates a contingency procedure to permit the Transportation and Infrastructure Committee to increase spending above the level in the budget resolution on highways, highway safety, and transit in the surface transportation reauthorization bill it will consider later this year, should additional resources be made available to the Highway Trust Fund. The offsets may take the form of an increase in receipts to the Highway Trust Fund or a reduction in mandatory outlays from the fund.

Subsection (a) creates a reserve fund that allows the Chairman of the House Budget Committee to adjust the allocation of BA to the Committee on Transportation and Infrastructure for any measure that reauthorizes surface transportation programs and provides new BA for highway and transit spending. The Budget Committee Chairman may make an adjustment to its allocation if the Transportation Committee reports a measure that exceeds the amounts specified in section 311. The adjustment may only be made if it is offset by changes in law, either included in same measure, or by previously enacted legislation. The changes in law may effect either direct spending or receipts must be appropriated to the Highway Trust Fund. The adjustment may be made in the BA allocation for fiscal year 2004 and the 5 year period, but the additional resources must offset the additional BA and corresponding outlays in each year.

Subsection (b) creates a reserve fund that allows the Chairman of the House Budget Committee to adjust the allocation of outlays to the Committee on Appropriations for any measure that sets total obligation limitations greater than $38.5 billion for fiscal year 2004 for spending from the Highway Trust Fund. In addition, the amount of the adjustment must be offset by increases in resources dedicated to the Highway Trust Fund in fiscal year 2004 as previously referred to in subsection (a).

Senate Amendment

In general, a reserve fund permits the Chairman of the Committee on the Budget to increase the section 302 allocation and other appropriate levels set out in this resolution (including in some cases--see sections 211 and 212--the discretionary spending limits) once certain conditions specified in the reserve fund have been met. The authority to make these adjustments is solely within the discretion of the Chairman and may be made when the specified committee of jurisdiction reports a measure that satisfies all the conditions set out in the reserve fund.

Section 211: Adjustment for special education

The Senate amendment contains a mechanism to make additional resources available to the Committee on Appropriations specifically for the Part B grant program under the Individuals with Disabilities Education Act (IDEA). The mechanism will make available an additional $205 million for fiscal year 2004 and $209 million for fiscal year 2005 after enactment of a bill reported by the Committee on Health, Education, Labor and Pensions reauthorizing IDEA and only if the appropriators provide more than the base amounts described in the reserve. Additionally, the amendment requires the reauthorization bill to provide an allowance of uniform discipline policies for all students; local fiscal relief; and to minimize the over-identification of students with disabilities.

Section 212: Adjustment for highways and highway safety and transit

The Senate amendment provides a mechanism to make additional resources available to the appropriate authorizing committees and the Committee on Appropriations for highway and transit programs once the reauthorization of the Transportation Equity Act for the 21st Century (TEA-21) is enacted, provided that the reauthorization includes new governmental receipts for the highway trust fund--without increasing the deficit. The amendment makes no assumption with respect to the floor procedures required to bring together the portions of this legislation that fall within the jurisdiction of various committees of the Senate. Therefore the amendment names all three authorizing committees (the Committee on the Environment and Public Works, the Committee on Banking, Housing and Urban Affairs and the Committee on Commerce, Science and Transportation). The amendment further assumes that the additional funding facilitated by this section will be provided in the form of new governmental receipts in a measure reported by the Committee on Finance, net of the 25% income tax offset as is customarily scored by the Joint Committee on Taxation.

Section 213: Reserve fund for Medicare

The Senate amendment provides up to $400 billion for the period of fiscal years 2004 through 2013 for legislation that improves the Medicare program and makes prescription drugs more accessible for those covered by Medicare. During the markup an amendment offered by Senator Feingold was agreed to which provides that the legislation may also promote geographic equity payments. The adjustment may be made only if the Committee on Finance reports a bill that strengthens and enhances the Medicare program as well as improves the access of beneficiaries to prescription drugs or promotes geographic equity.

Section 214: Reserve fund for health insurance for the uninsured

The Senate amendment provides up to $88 billion for the period of fiscal years 2004 through 2013 for legislation that provides health insurance for the uninsured. The adjustment may be made only if the Committee on Finance reports a bill that provides health insurance for the uninsured--which may include a measure providing for tax deductions for the purchase of health insurance for, among others, moderate income individuals not receiving health insurance from their employers.

Section 215: Reserve fund for children with special needs

The Senate amendment creates a reserve for legislation that provides states with the option to expand Medicaid coverage for children with special needs. The adjustment may be made only if the Committee on Finance reports a bill that does not exceed $43 million in new budget authority and $42 million in outlays for fiscal year 2004, and $7.462 billion in new budget authority and $7.262 billion in outlays for the period of fiscal years 2004 through 2013.

Section 216: Reserve fund for Medicaid reform

The Senate amendment provides up to $12.782 billion through 2010 for legislation that reforms the Medicaid program. The adjustment may be made only if the Committee on Finance reports a bill that provides significant reform of the Medicaid program. The adjustments may be made only if the Finance Committee reports a bill that does not exceed $3.258 billion in new budget authority and outlays for 2004, $8.944 billion in new budget authority and outlays for the period of fiscal years 2004 through 2008, $12.782 billion in new budget authority and outlays for the period of fiscal years 2004 through 2010, and is deficit neutral for the period of fiscal years 2004 through 2013.

Section 217: Reserve fund for Project Bioshield

The Senate amendment provides up to $5.593 billion over the life of the resolution for legislation that facilitates procurement for inclusion by the Secretary of Health and Human Services in the Strategic National Stockpile of countermeasures necessary to protect the public health from current and emerging threats of chemical, biological, radiological, or nuclear agents. The adjustments may be made only if the Committee on Health Education, Labor and Pensions reports a bill that provides no more than $890 million in new budget authority (and $575 million in outlays) for fiscal year 2004 and $5.593 billion in new budget authority and outlays for the period of fiscal years 2004 through 2013.

Section 218: Reserve fund for the state grant program and ANWR receipts

The Senate amendment provides up to $250 million per year (beginning in fiscal year 2006) for legislation that provides additional resources for the state grant program funded from the Land and Water Conservation Fund. The adjustment is conditioned upon two events: the enactment of legislation that yields offsetting receipts (reflected in the resolution as a reduction in outlays) from the opening of the Arctic National Wildlife Refuge and subsequent reporting of a bill from the Committee on Energy and Natural Resources that dedicates a portion of these receipts to the Land and Water Conservation Trust Fund for the grant program.

Section 219: Reserve fund for State Children's Health Insurance Program

The Senate amendment provides up to $1.825 billion in new budget authority for legislation that extends the availability to states of expired State Children's Health Insurance Program allotments (from 1998 and 1999) and expiring 2000 allotments. The adjustments may be made only if the Committee on Finance reports a bill that provides no more than $1.26 billion in new budget authority (and $85 million in outlays) for fiscal year 2003, $1.33 billion in new budget authority (and $85 million in outlays) for fiscal year 2004, $1.95 billion in new budget authority (and $845 million in outlays) for the period of fiscal years 2003 through 2008, and $1.825 billion in new budget authority (and $975 million in outlays) for the period of fiscal years 2003 through 2013.

Section 319: Reserve fund to strengthen Social Security

Section 319 of the Senate amendment was adopted as part of an amendment that reduced to $350 billion the reconciliation instruction to the Committee on Finance. It purports to hold in reserve $396 billion to extend the solvency of the Social Security trust funds, but provides no policy directive for how to accomplish this. On its face, it would permit the Committee on Finance to spend $396 billion on any program so long as it was part of legislation that for instance, reduced benefits or increased the retirement age, and thus extended solvency.

Past practice has been to include the effect of the policies described in a reserve fund in the functional levels and aggregates of the budget resolution but to withhold the funds from the committee's 302(a) allocation. The language of section 319 does not conform to this model. Rather, it entirely eliminates the $396 billion from the budget--or in other words, reduces the deficit. If the authority in this section were invoked it would result in a $396 billion increase in the deficit. It is not clear, how a deficit increase would contribute to the solvency of Social Security trust funds.

Section 329: Reserve fund for possible military action and reconstruction in Iraq

Section 329 of the Senate amendment was adopted as part of an amendment that reduced the reconciliation instruction to the Finance Committee by $100 billion and thus increased taxes by $10 billion each year 2004 through 2013. It purports to hold this $100 billion in reserve for the Committee on Appropriations to pay for military action and reconstruction in Iraq over the period of 2003 through 2013. Because this reserve can only be triggered for an appropriations bill, it would more appropriately be a cap adjustment instead of a reserve fund.

Past practice has been to include the effect of the policies described in a reserve fund in the functional levels and aggregates of the budget resolution but to withhold the funds from the committee's 302(a) allocation. The language of section 329 does not conform to this model. Rather it entirely eliminates the $100 billion from the budget--or in other words, it reduces the deficit by that amount over the 10-year period ending in 2013. If the authority in this section were invoked, it would result in up to a $100 billion increase in the deficit.

Conference Agreement

Section 401. Reserve fund for Medicare

Section 401 of the Conference Agreement permits the appropriate Budget Committee Chairman to adjust committee allocations and other appropriate budgetary aggregates and allocations for reported legislation (and amendments thereto, or any conference report thereon) for Medicare-related legislation.

Section 401(a) of the Conference Agreement establishes a Medicare reserve fund for the House. The reserve fund permits the Chairman of the Committee on the Budget to adjust the levels in the budget resolution to accommodate certain Medicare-related legislation. The Chairman may make an adjustment to the separate Medicare allocation to the Ways and Means Committee and the Energy and Commerce Committee for legislation that provides a prescription drug benefit and modernizes Medicare, and provides adjustments to the Medicare program on a fee-for-service, capitated, or other basis. The amount of the adjustment for this legislation may not exceed $7.0 billion in budget authority and outlays for fiscal year 2004 and $400 billion in budget authority and outlays for fiscal years 2004 through 2013. The adjustment is made to the separate allocation for Medicare, regardless of the committee that reports the measure.

Section 401(b) of the Conference Agreement sets forth a Medicare reserve fund for the Senate and also provides up to $400 billion for the period of fiscal years 2004 through 2013 for legislation that improves the Medicare program and makes prescription drugs more accessible for those covered by Medicare. The legislation may also promote geographic equity payments. The Chairman of the Committee on the Budget may make an adjustment only if the Committee on Finance reports a bill that strengthens and enhances the Medicare program as well as improves the access of beneficiaries to prescription drugs and does not exceed $7.0 billion in new budget authority and outlays for fiscal year 2004 and $400 billion fiscal years 2004-2013.

The Senate conferees recognize the need to enhance both the benefits and structure of the Medicare program in order to provide a better system for seniors. In addition to providing an integrated prescription drug benefit, the Conferees support efforts to take advantage of competition in order to enhance seniors' medical benefits which are currently lacking in our present system. This could include access to preventive care services, disease management and catastrophic protection against high hospital costs.

While considering benefit expansions, however, it is critical to recognize the long-term unfunded promises in the Medicare program. The President's budget submission includes sobering information on the extent of Medicare's long-term unfunded promises. According to the Medicare Trustees' most recent report, the Hospital Insurance Trust Fund is expected to be exhausted in 2026--four years earlier than estimated in the 2002 report.

Medicare actuaries project a 75-year unfunded promise to the HI fund of $5 trillion. However, this only tells half the story. It does not include the Part B program. Medicare beneficiary premiums only cover 25 percent of these costs. The remaining 75 percent of expenses are not covered by any specific or dedicated financing source. The Senate conferees believe it is artificial to separate Part A and B. Policy makers must look at the total expenditures for Medicare. From this perspective Medicare's unfunded promises are $13 trillion.

Section 402. Reserve fund for Medicaid reform

Section 402 of the Conference Agreement includes a reserve fund to reform the Medicaid program. Both the House resolution and the Senate amendment included reserve funds this general purpose. The reserve fund, which applies in both the House and the Senate, permits the appropriate Budget Committee Chairman to adjust the appropriate committee allocations of the Committee on Energy and Commerce in the House, or the Committee on Finance in the Senate, and other budgetary aggregates and allocations for reported legislation (and amendments thereto, or any conference report thereon) that modernizes Medicaid. The adjustments in the allocations may not exceed $3.258 billion in new BA and outlays for fiscal year 2004; and $8.944 billion in new BA and outlays for fiscal years 2004 through 2008, and $12.782 billion for fiscal years 2004 through 2010.

Section 403. Reserve fund for State Children's Health Insurance Program

Section 403 of the Conference Agreement retains the reserve fund for the extension of the State Children's Health Insurance Program [SCHIP] included in section 219 of the Senate amendment. The reserve fund, which applies in both the House and the Senate, permits the appropriate Budget Committee Chairman to adjust the committee allocations for the Committee on Ways and Means in the House, or the Committee Finance in the Senate, and other appropriate budgetary aggregates and allocations for reported legislation (and amendments thereto, or any conference report thereon) that extends the availability of expired and expiring allotments of the State Children's Health Insurance Program [SCHIP]. The adjustments in the allocations may not exceed $1.260 billion in new BA and $85 million in outlays for fiscal year 2003; $1.350 billion in new BA and $105 million in outlays for fiscal year 2004; $1.355 billion in new BA and $1.425 million in outlays for fiscal year 2004 through 2008; and $1.355 billion in new BA and $1.680 million in outlays for the period of fiscal years 2004 through 2013.

Section 404. Reserve fund for Bioshield

Section 404 of the Conference Agreement establishes separate procedures in the House and the Senate reserving amounts for legislation providing countermeasures to international terrorism.

Section 404(a) of the Conference Agreement adopts the reserve fund for bioshield included in section 303 the House resolution. The reserve fund permits the House Budget Committee Chairman to adjust committee allocations and other appropriate budgetary aggregates and allocations for a reported measure (and amendments thereto, or any conference report thereon) that establishes either a new mandatory or discretionary program to accelerate the research, development, and purchase of biomedical threat countermeasures. If the program established is mandatory, the adjustment may not exceed $890 million in new mandatory BA for fiscal year 2004, and $3.418 billion in new BA and outlays for fiscal years 2004 through 2008. If the program authorized is discretionary, the adjustment may not exceed $890 million in new mandatory BA for the measure appropriating funds for the new program. If the program includes both mandatory and discretionary components or if two bills are enacted, the maximum adjustment the chairman may make in fiscal year 2004 is $890 million in BA.

Section 404(b) of the Conference Agreement adopts the reserve fund for bioshield included in section 217 of the Senate Amendment with minor modifications. The reserve fund permits the appropriate Budget Committee Chairman to adjust committee allocations and other appropriate budgetary aggregates and allocations for reported legislation (and amendments thereto, or any conference report thereon) that establishes a new mandatory program to accelerate the research, development, and purchase of biomedical threat countermeasures. For the adjustment to take place, the measure may provide no more than $890 million in new mandatory BA and $575 million in outlays for fiscal year 2004, and $5.593 billion in new mandatory BA and outlays for fiscal years 2004 through 2013.

Section 405. Reserve fund for health insurance for the uninsured

Section 405 of the Conference Agreement retains the Senate reserve fund for health insurance for the uninsured included in section 214 of the Senate amendment. The reserve fund permits the Chairmen of the respective Budget Committees to adjust the allocation of BA and outlays to the appropriate committee of jurisdiction in the House, or the Committee on Finance in the Senate, for any measure that provides health insurance for the uninsured (including a measure providing for tax deductions for the purchase of health insurance for, among others, moderate income individuals not receiving health insurance for from their employers). The adjustments in the allocations may not exceed $28.5 billion in new BA and outlays for fiscal years 2004 through 2008, and $50 billion in new BA and outlays for the period of fiscal years 2004 through 2013.

Section 406. Reserve fund for children with special meeds

Section 406 of the Conference Agreement retains the reserve fund for children with special needs included in section 215 of the Senate amendment and which was accommodated in the allocations in the House resolution. The reserve fund, which applies in both the House and the Senate, permits the appropriate Budget Committee Chairman to adjust the committee allocations for the Committee on Energy and Commere in the House, or the Committee on Finance in the Senate, and other appropriate budgetary aggregates and allocations for reported legislation (and amendments thereto, or any conference report thereon) that provides states with the option to expand Medicaid coverage for children with special needs, allowing families of disabled children to purchase coverage under the Medicaid program for such children. The adjustments in the allocations may not exceed $43 million in BA and $42 million in outlays for fiscal year 2004, $1.627 billion in BA and $1.566 billion in outlays for the period of fiscal years 2004 through 2008. and $7.462 billion in BA and $7.262 billion in outlays for the period of fiscal years 2004 through 2013.

Section 411. Contingency procedure for surface transportation

Section 411 of the Conference agreement establishes a separate contingency procedure for the Highway Trust Fund, which will be reauthorized this session of Congress. The contingency procedure, which applies in both the House and the Senate, permits the appropriate Budget Committee Chairman to accommodate legislation providing additional highway spending to the extent it is offset by additional revenues or a reduction in mandatory spending in the Highway Trust Fund. The procedure permits the Budget Committee Chairmen to increase the 302(a) allocation of the Committee on Transportation and Infrastructure in the House, or the Committee on Environment and Public Works, the Committee on Banking, Housing, and Urban Affairs, or the Committee on Commerce, Science, and Transportation in the Senate, for legislation that provides in excess of the level assumed in the budget resolution but only to the extent to which it has been offset by new revenue or savings in mandatory outlays. The offsets must be dedicated to the Highway Trust Fund and can be made in the same measure or legislation enacted earlier in the 108th Congress. In view of the fact that outlays are determined by obligation limits, subsection (a) also permits the chairman to make a corresponding change in outlays for the committee setting the obligation limits. Again, legislation must have first been enacted to offset the increase in contract authority.

Section 421. Supplemental appropriations for fiscal year 2003

If a measure making supplemental appropriations for fiscal year 2003 is enacted before May 1, 2003, the Chairmen of the Committees on the Budget are permitted to adjust the appropriate allocations and aggregates of budget authority and outlays in the budget resolution to reflect the difference between that measure and the levels assumed in that resolution. The Conference Agreement reflects the President's requested level of $74.7 billion.

BUDGET ENFORCEMENT

Under section 301 of the Budget Act, the budget resolution may include special procedures to enforce the spending and revenue levels contained in the resolution and the allocations found in the accompanying joint statement of managers.

House Resolution

Section 301(c). Medicare 302(a) allocation

Section 301(c) creates a Medicare allocation to the Ways and Means Committee and Energy and Commerce Committee. Legislation changing the Medicare program must be offset in the first year and the 10-year period. This allocation may be increased should a reserve fund for specific Medicare modernization legislation be released. Such a measure must provide less than $7.5 billion in the first year, and no more than $400 billion over 10 years. If a measure receiving a Medicare allocation adjustment also includes budget authority not directly related to Medicare modernization, that non-Medicare spending will be compared to the committee of jurisdiction's allocation.

Section 321. Application and effects of changes in allocations and aggregates

This section sets forth the procedures for making adjustments pursuant to the reserve funds included in this resolution. Subsection (a)(1) and (2) provide that the adjustments may only be made during the interval that the legislation is under consideration and do not take effect until the legislation is actually enacted. This is approximately consistent with the procedures for making adjustments for various initiatives under section 314 of the Congressional Budget Act. Subsection (a)(3) provides that in order to make the adjustments provided for in the reserve funds, the chairman of the House Budget Committee is directed to insert these adjustments in the Congressional Record.

Subsection (b) clarifies that any adjustments made under any of the reserve funds in the resolution have the same effect as if they were part of the original levels set forth in section 101. Therefore the adjusted levels are used to enforce points of order against legislation inconsistent with the allocations and aggregates included in the concurrent resolution on the budget.

Subsection (c) clarifies that the House Budget Committee determines the levels and estimates used to enforce points of order, as is the case for enforcing budget-related points of order, and the determination is made pursuant to section 312 of the Budget Act. This section of the Budget Act provides the chairman of the Budget Committee with the authority to advise the chairman of the House on the appropriate levels and estimates related to legislation being considered on the floor.

Subsection (d) provides for 5-year enforcement periods. Though the authorizing committees receive a 10-year allocation, under Section 321 (d) of the House resolution, the Budget Committee will apply the various relevant provisions of the Congressional Budget Act for only the first and 5-year time period.

Section 401. Restrictions on advance appropriations

Section 401 imposes a limitation on advance appropriations similar to a provision included in the last several budget resolutions. It does two things: 1) It limits the total amount of advance appropriations; and 2) It limits the accounts for which advanced appropriations may be made. It establishes this procedure with regard to any advance appropriation for fiscal year 2004 and any year thereafter. An exception is provided for those programs specified in the Joint Statement of Managers, but the total advance appropriation must be lower than a specified level. The section defines an `advance appropriation' as any new discretionary budget authority making general appropriations or continuing appropriations for fiscal year 2004 that first becomes available after 2004. This limitation is enforced by a point of order that may be raised against any measure including an advance appropriation not falling within the exception. The result of the point of order would be to remove the advance appropriation, but the measure would continue to be considered.

Section 402. Compliance with section 13301 of the Budget Enforcement Act of 1990

Section 402 provides authority to include the administrative expenses related to Social Security in the allocation to the Appropriations Committee. This language is necessary to ensure that the Appropriations Committee retains control of administrative expenses through the Congressional budget process. In the 106th Congress, the Joint Leadership of the House and Senate Budget Committees decided to discontinue including administrative expenses in the budget resolution. This change was intended to make the budget resolution consistent with CBO's baseline which does not include administrative expenses for Social Security. At the same time, the Budget Committees believe that these expenses should continue to be reflected in the 302(a) allocations to the Appropriations Committee. Absent a waiver of section 302(a) of the Budget Act, the inclusion of these expenses in the allocation is construed as violating 302(a) of the Budget Act which states that the allocations must reflect the discretionary amounts in the budget resolution (and arguably, section 13301 of the Budget Enforcement Act, which states that Social Security benefits and revenues are off-budget).

Senate Amendment

Section 201. Extension of supermajority enforcement

The Senate amendment extends the 60-vote requirement for 5 years (until September 30, 2008), for waivers and appeals with respect to those Budget Act points of order for which this supermajority requirement expired on September 30, 2002 (and was temporarily extended through April 15, 2003 in S. Res. 304, 107th Congress).

Section 202. Discretionary spending limits in the Senate

The Senate amendment sets out discretionary spending limits for the Senate for the first two years covered by the budget resolution (FY 2004 and 2005) with respect to both budget authority and outlays. It also sets limits for FY 2003 because no FY 2003 budget resolution was ever adopted. Since the advent of statutory discretionary spending limits in 1990, a majority of budget resolution conference reports have included language dealing with `congressional caps'. 1

[Footnote]

[Footnote 1: See: section 12(b) of H. Con. Res. 64 (103rd Cong.) the FY 1994 Concurrent Resolution on the Budget; section 24 of H. Con. Res. 218 (103rd Cong.) the FY 1995 Concurrent Resolution on the Budget; Section 201 of H. Con. Res. 67 (104th Cong.) the FY 1996 Concurrent Resolution on the Budget; Section 301 of H. Con. Res. 178 (104th Cong.) the FY 1997 Concurrent Resolution on the Budget; Section 201 of H. Con. Res. 84 (105th Cong.) the FY 1998 Concurrent Resolution on the Budget (all establishing multiyear caps); Section 206 of H. Con. Res. 290 (106th Cong.) the FY 2001 Concurrent Resolution on the Budget; Section 203 of H. Con. Res. 83 (107th Cong.) the FY 2002 Concurrent Resolution on the Budget (both providing a mechanism to accommodate an increase to the currect year's statutory cap).]

The Senate amendment provides that the following amounts will be the discretionary spending limits:

The Senate amendment also provides for a number of so-called cap adjustments. The cap adjustments permit the Chairman of the Committee on the Budget to increase the spending limit, the section 302(a) allocations to the Committee on Appropriations, and any other appropriate levels in the resolution if an appropriations bill provides additional resources for the programs specified in the adjustment. The Senate amendment provides that spending and allocations may be adjusted for: (1) emergency spending, (2) funding for Part B grants under the Individuals with Disabilities Education Act (IDEA), and (3) highway and transit programs.

These discretionary spending limits are enforced by a 60-vote point of order on two fronts: (1) there will be a point of order against the FY 2005 budget resolution if it exceeds the limits set forth in this resolution (or against any revision to the FY 2004 resolution that does so) and (2) there will be a point of order against any appropriations bill that causes the discretionary limits to be exceeded.

Section 203. Restriction on advance appropriations in the Senate

The Senate amendment once again includes language limiting the use of advance appropriations. This restriction was first included in the FY 2001 budget resolution and was included and revised in the FY 2002 resolution as well. The Senate amendment continues to limit advance appropriations to an annual limit of $23.158 billion with respect to both the FY 2004 and 2005 appropriations bills and to those programs, which are listed in the statement of managers accompanying the conference report on the budget resolution. The amendment also continues the exception for advances with respect to the Corporation for Public Broadcasting.

The list of permissible advances is as follows:

ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS

Interior

Elk Hills

Labor, HHS

Employment and Training Administration

Education for the Disadvantaged

School Improvement

Children and Family Services (Head Start)

Special Education

Vocational and Adult Education

Treasury, Postal

Payment to Postal Service

Veterans', HUD

Section 8 Renewals

Section 204. Emergency legislation

With respect to emergency spending, the Senate amendment addresses two issues: the ability to designate spending as an emergency and the restatement of the 60-vote point of order in the Senate with respect to the use of that designation.

The authority to designate spending as an `emergency' existed as a part of the statutory discretionary spending limits and the pay-as-you-go rules set out in sections 251 and 252 of the Balanced Budget and Emergency Deficit Control Act of 1985. The purpose of the designation was to create a `safety valve' for unexpected, emergency expenditures with respect to the sequestration mechanism which served as the underlying enforcement mechanism for the caps and PAYGO. With the expiration of section 251 on September 30, 2002 and the de facto expiration of section 252 by virtue of setting the scorecard to zero for all fiscal years, the Senate amendment reestablishes the authority of Congress to designate spending and revenue changes as an emergency. In doing so, the resolution specifies the criteria used in the definition of an emergency and requires committee reports and statements of managers to justify the use of emergency designations vis a vis these criteria. The criteria are as follows:

An expenditure may be designated an emergency if it is--

If an item of discretionary spending is accompanied by an emergency designation then the discretionary spending limit and the allocation to the Committee on Appropriations will be adjusted accordingly (as well as all other appropriate levels in the resolution). If a revenue reduction or mandatory spending increase is accompanied by an emergency designation, then the committee allocation and the Senate's pay-go scorecard will be adjusted accordingly (again, as well as all other appropriate levels in the resolution).

The Senate amendment also revises the Senate's emergency designation point of order. This point of order was first included in the FY 2000 budget resolution. This point of order allows any member to question the use of an emergency designation while the bill, amendment or conference report containing the designation is before the Senate. Once the point of order is made, it will require 60-votes to waive the point of order and keep the designation. If the motion to waive is not successful, the designation is removed from the measure while the spending or revenue provision remains, potentially making the measure subject to a Budget Act point of order, which too would require 60-votes to overcome. The removal of the designation is accomplished by the same method as provided for in the Byrd Rule (section 313 of the Congressional Budget Act).

The language in the Senate amendment differs from past resolutions only to the extent that the references to sections 251 and 252 of the BBEDCA have been replaced with a cross reference to subsection (a) of this section, which provides the authority for the use of the designation. In addition, spending for homeland security programs would be exempt from the point of order as has been the case with defense spending.

Section 205. Pay-as-you-go point of order in the Senate

The Senate amendment revises and extends the Senate's pay-as-you-go point of order. The original pay-as-you-go point of order first appeared in the FY 1994 budget resolution. Its most recent incarnation expired in its entirety on September 30, 2002. The point of order was revised and extended in S. Res. 304 (107th Congress) through April 15, 2003. S. Res 304 included a new provision within the pay-as-you-go rule making the rule applicable to mandatory spending in appropriation bills in order to prevent the exploitation of the fact that there were no limits on discretionary spending for FY 2003 due to the expiration of the discretionary spending limits and the lack of a FY 2003 budget resolution.

The pay-as-you-go point of order included in the Senate amendment does not retain the expanded application to appropriation bills set out in S. Res. 304. Rather it resembles the previous versions of the rule with one specific exception: it will not apply to any spending or revenue changes that result from the implementation of the reconciliation instruction set out in section 104 of the Senate amendment (up to $350 billion). It will nonetheless apply to all other mandatory spending and revenue changes provided for in the Senate amendment.

Section 221. Authority to make adjustments for changes in concepts and definitions

The Senate amendment provides that upon enactment of legislation that changes the nature of funding of an existing program from discretionary to mandatory (or vice versa), the Chairman of the Committee on the Budget will immediately adjust the levels in this resolution (including the discretionary spending limits) to reflect such a change.

Section 222. Application and effect of changes in allocations and aggregates

The Senate amendment contains language identical to section 221 of the FY 2002 budget resolution, which makes clear when adjustments made under Title II of the budget resolution will take effect.

Section 223. Exercise of rulemaking powers

The Senate amendment includes language identical to section 222 of the FY 2002 budget resolution which simply states Congress' authority to legislate rule of procedure for either chamber.

Conference Agreement

Section 501. Restrictions on advance appropriations

Section 501 of the Conference Agreement retains the language of both section 401 of the House resolution and section 203 of the Senate amendment.

Subsection (a) applies to the House; it limits which programs may receive an advance appropriation and an overall amount of advanced appropriations. Advance appropriations may be provided for the accounts in the appropriation bills listed below, provided that their sum does not exceed $23.158 billion in budget authority. Advance appropriations are defined as any discretionary budget authority in a measure for fiscal year 2004 which first becomes available in a year after that fiscal year. This limitation is enforced by a point of order that may be raised against any measure including an advance appropriation not falling within the exception. The result of the point of order would be to remove the advance appropriation, but the measure would continue to be considered.

ACCOUNTS IDENTIFIED FOR ADVANCED APPROPRIATIONS

PART A: ADVANCED APPROPRIATIONS FOR FISCAL YEAR 2005

Interior Appropriations

Elk Hills (89 5428 02 271)

Labor, Health and Human Services, Education Appropriations

Employment and Training administration (16 0174 01 504)

Education for the Disadvantaged (91 0900 01 501)

School Improvement (91 1000 01 501)

Children and Family Services [Head Start] (75 1536 01 506)

Special Education (91 0300 01 501)

Vocational and Adult Education (91 0400 01 501)

Treasury, General Government Appropriations

Payment to Postal Service (18 1001 01 372)

Veterans, Housing and Urban Development Appropriations

Section 8 Renewals (86 0319 01 604)

PART B: ADVANCED APPROPRIATIONS FOR FISCAL YEAR 2006

Labor, Health and Human Services, Education Appropriations

Corporation for Public Broadcasting (20 0151 01 503)

Subsection (b) applies in the Senate and is virtually identical to the language in section 203 of the Senate amendment and sets an overall limit of $23.158 billion per year. The Conference Agreement modifies the Senate language only to the extent that the explicit exception for the Corporation for Public Broadcasting is moved from the text of the resolution to the list set out below. A conforming change is made to the definition of an advance appropriation to make clear that its inclusion on the list below, covers the advance for both the 1st and 2nd years.

The list of permissible advances is as follows:

ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS

Interior

Elk Hills (89 5428 02 271)

Labor, HHS

Corporation for Public Broadcasting (20 0151 01 503)

Employment and Training Administration (16 0174 01 504)

Education for the Disadvantaged (91 0900 01 501)

School Improvement (91 1000 01 501)

Children and Family Services (Head Start) (75 1536 01 506)

Special Education (91 0300 01 501)

Vocational and Adult Education (91 0400 01 501)

Treasury, Postal

Payment to Postal Service (18 1001 01 372)

Veterans', HUD

Section 8 Renewals (86 0319 01 604)

Section 502. Emergency legislation

Section 502 the House recedes to the Senate on its regimen relating to the budgetary treatment of emergencies. With some modifications, it extends to the House the authority of Congress to designated spending-related legislation as an emergency for purposes of budget enforcement, adopts criteria for emergency spending, and requires committees to justify emergency-designated provisions. The point of order in the Senate amendment, however, continues to apply only to the Senate.

Section 502(a) of the Conference Agreement includes a statement of intent that, in the absence of the extension of the discretionary spending limits and PAYGO requirements under the Balanced Budget and Emergency Deficit Control Act of 1985, the section enables Congress to designate provisions of legislation as emergencies. The House conferees note that this regimen is similar to H.R. 853, which was reported by the House Budget Committee in the 106th Congress.

Subsections (b) sets forth the procedure in the House governing emergencies designated spending (or receipts). It extends the automatic exemption for emergency-designated spending (and receipts) from the budget resolution, which was in effect until the statutory discretionary spending limits and PAYGO requirements expired last September. If an urgent need arises after the budget resolution is adopted, the committee of jurisdiction could designate the emergency-related provisions as an emergency requirement pursuant to this section.

Instead of adjusting the allocations and budget aggregates by the designated amount, subsection (b) provides that spending (or receipts) resulting from such measure would not be counted for purposes of determining whether the measure complies with the budget resolution or related requirements under the Budget Act of 1974. The conferees note that this is consistent with congressional scoring conventions prior to the Balanced Budget Act of 1997. Assuming the measure is otherwise in compliance with the budget resolution, it would not be subject to a point of order under sections 302(f), 303(a), 311(a) or 401 of the Congressional Budget Act of 1974.

In subsection (b)(2), committees reporting legislation that includes an emergency designation are required to include in the accompanying report, or the conference committee in the joint statement of managers, a statement justifying the emergency designation on the basis of the following criteria:

The conferees note that this definition was originally developed by the previous Bush Administration as part of an OMB Circular (A-11) on the preparation and submission of budget estimates.

Section 502(c) of the Conference Agreement retains the language of section 204 of the Senate amendment (which provides the authority to use an emergency designation and creates a supermajority point of order to police the use of the designation) with a number of modifications.

The Conference Agreement strengthens the requirement that committees in both Houses provide a justification for use of the designation vis a vis the criteria listed in subsection (b)(2) and (c)(3).

The point of order with respect to the use of the designation applies only in the Senate and contains some technical changes with respect to the execution of the point of order that were recommended by the Parliamentarian of the Senate. It is the view of the Conferees that the exception for `homeland security' spending could not be included at this time due to the lack of consensus between the Congress and the Executive branch as to exactly what programs, projects or activities should qualify for the exception. It may be possible to do so in the future.

Section 503. Extension of supermajority enforcement

Section 503 of the Conference Agreement retains the language of section 201 of the Senate amendment extending 60-vote enforcement for five years.

Section 504. Discretionary spending limits in the Senate

Section 504 of the Conference Agreement retains the language of section 202 of the Senate amendment which sets forth discretionary spending limits in the Senate only for fiscal years 2003, 2004 and 2005 with a number of modifications. The limits BA for FY 2003 now include the amounts included in the supplemental appropriations bill that is being considered at the same time as the conference on the budget resolution, with outlays reflected accordingly.

The Conference Agreement provides that the following amounts will be the discretionary spending limits in the Senate:

The Conference Agreement also provides that these limits may be adjusted for emergency spending (pursuant to section 502) and for additional resources for transportation (pursuant to section 411).

Section 505. Pay-As-You-Go Point of Order in the Senate

The Senate Pay-As-You-Go Point of Order Included in the Conference Agreement reflects the language in the Senate-reported resolution and will apply on a post-budget resolution policy basis; that is, it will not apply to direct spending or revenue changes assumed in this resolution. To accomplish this, a scorecard will be maintained by the Chairman of the Committee on the Budget that will set out the total level of change to the deficit assumed by this budget resolution Conference Agreement. Subsequent legislation will be measured against these balances.

The following table shows the total of revenue and direct spending policy assumptions in the Conference Agreement on the budget resolution:

PAY GO SCORE CARD
2003 64.789
2004 155.946
2005 149.364
2006 133.611
2007 119.017
2008 121.625
2009 85.416
2010 87.650
2011 218.726
2012 302.840
2013 316.973
2004-08 679.563
2004-13 1691.168

Section 506. Compliance with Section 13301 of the Budget Enforcement Act of 1990

Section 506 retains the language of section 402 of the House resolution regarding the budgetary treatment in the House of discretionary spending for the Social Security Administration.

Section 507. Application and effect of changes in allocations and aggregates

Section 507 of the Conference Agreement retains the language of section 321 of the House resolution (which is virtually identical to Section 204 of the Senate amendment) clarifying the process for implementing any adjustment made pursuant to the reserve funds and the status of these adjusted levels. It further clarifies that the Budget Committee determines scoring for purposes of points of order. The section also makes clear that, for the purpose of enforcing provisions of the Congressional Budget Act in the House, legislation must be within a reporting committee's allocation for fiscal year 2004 and the period of fiscal years 2004 through 2008.

Section 508. Adjustments to reflect changes in concepts and definitions

Section 508 of the Conference Agreement retains the language of section 221 of the Senate amendment and applies it to the House. It provides that upon enactment of legislation that changes funding of an existing program from discretionary to mandatory (or vice versa), the Chairman of the Committee on the Budget will immediately adjust the levels in this resolution (including the discretionary spending limits) to reflect such a change.

ALLOCATIONS

As required in section 302 of the Congressional Budget Act, the joint statement of managers includes an allocation, based on the Conference Agreement, of total budget authority and total budget outlays among each of the appropriate committees. The allocations are as follow: 

ALLOCATION OF SPENDING AUTHORITY TO HOUSE APPROPRIATIONS COMMITTEE
[In millions of dollars]
---------------------------------------
                          2003    2004 
---------------------------------------
Discretionary Action:                  
BA                     840,554 784,460 
OT                     842,961 860,752 
Current Law Mandatory:                 
BA                     391,344 426,127 
OT                     378,717 409,870 
---------------------------------------

ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES OTHER THAN APPROPRIATIONS
[Dollars in millions]
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal year                                            2003    2004    2005    2006    2007    2008      2009      2010      2011      2012      2013   2004-08    2004-13 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Agriculture Committee:                                                                                                                                              
Current Law                                                                                                                                                                
BA                                                   19,840  20,509  22,792  22,501  21,709  20,518     5,720     5,897     6,014     6,028     5,991   108,029    137,679 
OT                                                   15,480  16,561  19,201  19,449  18,467  17,078     2,734     3,151     3,429     3,754     3,712    90,756    107,536 
Reauthorizations:                                                                                                                                                          
BA                                                                                           26,803    43,206    43,226    43,260    43,405    43,736    26,803    243,636 
OT                                                                                           25,586    43,169    43,188    43,221    43,367    43,696    25,586    242,227 
Total:                                                                                                                                                                     
BA                                                   19,840  20,509  22,792  22,501  21,709  47,321    48,926    49,123    49,274    49,433    49,727   134,832    381,315 
OT                                                   15,480  16,561  19,201  19,449  18,467  42,664    45,903    46,339    46,650    47,121    47,408   116,342    349,763 
Armed Services Committee:                                                                                                                                           
Current Law:                                                                                                                                                               
BA                                                   74,000  77,493  80,663  83,445  86,350  89,324    92,292    95,417    98,608   101,899   105,348   417,275    910,839 
OT                                                   73,476  77,295  80,459  83,291  86,195  89,166    92,132    95,253    98,438   101,723   105,167   416,406    909,119 
Discretionary Action:                                                                                                                                                      
BA                                                               70                                                                                          70         70 
OT                                                               34      32       4                                                                          70         70 
Total:                                                                                                                                                                     
BA                                                   74,000  77,563  80,663  83,445  86,350  89,324    92,292    95,417    98,608   101,899   105,348   417,345    910,909 
OT                                                   73,476  77,329  80,491  83,295  86,195  89,166    92,132    95,253    98,438   101,723   105,167   416,476    909,189 
Committee on Education and the Workforce:                                                                                                                           
Current Law:                                                                                                                                                               
BA                                                    5,069   4,809   5,666   6,357   6,656   6,887     7,091     7,273     7,452     7,630     7,885    30,375     67,706 
OT                                                    4,516   4,121   5,053   5,637   5,942   6,212     6,401     6,572     6,733     6,897     7,138    26,965     60,706 
Discretionary Action:                                                                                                                                                      
BA                                                      130      39      38      38      43      43        42        45        44        44        43       201        419 
OT                                                      115      47      47      47      52      52        52        57        57        57        57       245        525 
Reauthorizations:                                                                                                                                                          
BA                                                              393     404     415   3,503   3,583     3,667     3,664     3,843     3,933     4,027     8,298     27,432 
OT                                                              330     402     413   2,422   3,419     3,629     3,728     3,816     3,906     3,999     6,986     26,064 
Total:                                                                                                                                                                     
BA                                                    5,199   5,241   6,108   6,810  10,202  10,513    10,800    10,982    11,339    11,607    11,955    38,874     95,557 
OT                                                    4,631   4,498   5,502   6,097   8,416   9,683    10,082    10,357    10,606    10,860    11,194    34,196     87,295 
Energy and Commerce Committee:                                                                                                                                      
Current Law:                                                                                                                                                               
BA                                                   10,433  10,710  11,718  11,824  12,845   7,807     7,773     7,882     8,009     8,099     8,234    54,904     94,901 
OT                                                   11,987  12,071  11,900  12,003  12,455  10,289     8,154     7,719     7,615     7,732     7,849    58,718     97,787 
Discretionary Action:                                                                                                                                                      
BA                                                             -170    -480    -910   1,250     749    -1,996    -2,161    -2,296    -4,780    -4,904       439    -15,698 
OT                                                             -170    -480    -910   1,250     749    -1,996    -2,161    -2,296    -4,780    -4,904       439    -15,698 
Reauthorizations:                                                                                                                                                          
BA                                                                                            5,040     5,040     5,040     5,040     5,040     5,040     5,040     30,240 
OT                                                                                            2,345     4,470     5,130     5,446     5,465     5,443     2,345     28,299 
Total:                                                                                                                                                                     
BA                                                   10,433  10,540  11,238  10,914  14,095  13,596    10,817    10,761    10,753     8,359     8,370    60,383    109,443 
OT                                                   11,987  11,901  11,420  11,093  13,705  13,383    10,628    10,688    10,765     8,417     8,388    61,502    110,388 
Financial Services Committee:                                                                                                                                       
Current Law:                                                                                                                                                               
BA                                                    6,100   7,406   8,430   8,365   7,702   7,558     7,456     7,568     7,795     7,938     8,170    39,461     78,388 
OT                                                    1,951   2,139   2,740   1,921     894     650       435       170      -228      -622      -619     8,344      7,480 
Discretionary Action:                                                                                                                                                      
BA                                                                                                                                                                         
OT                                                              375     525     575      50    -275      -275      -300      -300      -200               1,250        175 
Total:                                                                                                                                                                     
BA                                                    6,100   7,406   8,430   8,365   7,702   7,558     7,456     7,568     7,795     7,938     8,170    39,461     78,388 
OT                                                    1,951   2,514   3,265   2,496     944     375       160      -130      -528      -822      -619     9,594      7,655 
Government Reform Committee:                                                                                                                                        
Current Law:                                                                                                                                                               
BA                                                   66,645  68,243  71,550  74,376  77,325  80,696    84,320    88,242    92,163    95,997    99,999   372,190    832,911 
OT                                                   65,140  66,710  70,071  72,959  75,902  79,272    82,863    86,817    90,798    94,705    98,875   364,914    818,972 
Discretionary Action:                                                                                                                                                      
BA                                                               -1              -1              -1        -1        -1        -1        -1        -1        -3         -8 
OT                                                                                       -1                -1        -1        -1        -1        -1        -1         -6 
Total:                                                                                                                                                                     
BA                                                   66,645  68,242  71,550  74,375  77,325  80,695    84,319    88,241    92,162    95,996    99,998   372,187    832,903 
OT                                                   65,140  66,710  70,071  72,959  75,901  79,272    82,862    86,816    90,797    94,704    98,874   364,913    818,966 
Committee on House Administration:                                                                                                                                  
Current Law:                                                                                                                                                               
BA                                                       82      82      83      82      81      80        79        79        79        79        79       408        803 
OT                                                       85     246      38      23      54     213        79        61        55       208        48       574      1,025 
International Relations Committee:                                                                                                                                  
Current Law:                                                                                                                                                               
BA                                                   13,633   9,825  11,398  12,424  12,665  12,912    13,162    13,417    13,679    13,911    14,147    59,224    127,540 
OT                                                   11,441  11,746  10,704  10,749  11,052  11,374    11,680    11,953    12,231    12,503    12,810    55,625    116,802 
Resources Committee:                                                                                                                                                
Current Law:                                                                                                                                                               
BA                                                    3,832   3,840   3,676   3,740   3,739   3,050     2,981     3,039     3,112     3,196     3,272    18,045     33,645 
OT                                                    3,412   3,437   3,200   3,540   3,585   3,145     2,969     2,912     2,965     3,040     3,098    16,907     31,891 
Discretionary Action:                                                                                                                                                      
BA                                                        7      24     118     124     126     130       133       137       139       143       146       522      1,220 
OT                                                        7      24       9      76     109     124       127       129       132       134       139       342      1,003 
Total:                                                                                                                                                                     
BA                                                    3,839   3,864   3,794   3,864   3,865   3,180     3,114     3,176     3,251     3,339     3,418    18,567     34,865 
OT                                                    3,419   3,461   3,209   3,616   3,694   3,269     3,096     3,041     3,097     3,174     3,237    17,249     32,894 
Judiciary Committee:                                                                                                                                                
Current Law:                                                                                                                                                               
BA                                                    5,914   6,942   5,749   5,783   5,862   5,959     6,154     6,263     6,366     6,466     6,582    30,295     62,126 
OT                                                    5,870   6,082   6,101   5,985   5,838   5,888     6,065     6,137     6,218     6,306     6,418    29,894     61,038 
Discretionary Action:                                                                                                                                                      
BA                                                               19      19      19      19      19        19        19        19        19        19        95        190 
OT                                                               19      19      19      19      19        19        19        19        19        19        95        190 
Total:                                                                                                                                                                     
BA                                                    5,914   6,961   5,768   5,802   5,881   5,978     6,173     6,282     6,385     6,485     6,601    30,390     62,316 
OT                                                    5,870   6,101   6,120   6,004   5,857   5,907     6,084     6,156     6,237     6,325     6,437    29,989     61,228 
Transportation and Infrastructure Committee:                                                                                                                        
Current Law:                                                                                                                                                               
BA                                                   69,531   8,038  14,449  13,581  13,345  13,583    13,804    14,129    14,407    14,798    15,284    62,996    135,418 
OT                                                   30,724  13,244  14,935  13,854  13,503  13,642    13,835    14,136    14,403    14,793    15,283    69,178    141,628 
Discretionary Action:                                                                                                                                                      
BA                                                            9,256   5,890   6,868   8,942  10,178    10,965     9,983    10,000    10,019    10,038    41,134     92,139 
OT                                                                                                                                                                         
Reauthorizations:                                                                                                                                                          
BA                                                           40,231  40,231  40,231  40,231  40,231    40,231    40,231    40,231    40,231    40,231   201,155    402,310 
OT                                                              173     441     550     588     613       626       639       639       639       639     2,365      5,547 
Total:                                                                                                                                                                     
BA                                                   69,531  57,525  60,570  60,680  62,518  63,992    65,000    64,343    64,638    65,048    65,553   305,285    629,867 
OT                                                   30,724  13,417  15,376  14,404  14,091  14,255    14,461    14,775    15,042    15,432    15,922    71,543    147,175 
Science Committee:                                                                                                                                                  
Current Law:                                                                                                                                                               
BA                                                      130      55      56      57      59      60        61        63        65        67        68       287        611 
OT                                                      122     123     120      90      72      60        60        62        64        65        67       465        783 
Small Business Committee:                                                                                                                                           
Current Law:                                                                                                                                                               
BA                                                      864       3       1       1       1                                                                   6          6 
OT                                                      792      -6                              -1        -1        -1        -1        -1        -1        -7        -12 
Veterans' Affairs Committee:                                                                                                                                        
Current Law:                                                                                                                                                               
BA                                                    1,171   1,311   1,297   1,310   1,319   1,324     1,310     1,291     1,254     1,207     1,158     6,561     12,781 
OT                                                    1,042   1,217   1,228   1,250   1,262   1,270     1,262     1,250     1,224     1,185     1,142     6,227     12,290 
Reauthorizations:                                                                                                                                                          
BA                                                              429   1,129   1,766   2,254   3,080     3,791     4,540     5,657     5,566     6,750     8,658     34,962 
OT                                                              419   1,129   1,746   2,231   3,072     3,773     4,481     5,636     5,505     6,688     8,597     34,680 
Total:                                                                                                                                                                     
BA                                                    1,171   1,740   2,426   3,076   3,573   4,404     5,101     5,831     6,911     6,773     7,908    15,219     47,743 
OT                                                    1,042   1,636   2,357   2,996   3,493   4,342     5,035     5,731     6,860     6,690     7,830    14,824     46,970 
Ways and Means Committee:                                                                                                                                           
Current Law:                                                                                                                                                               
BA                                                  728,516 728,732 792,780 855,434 906,045 955,712 1,009,838 1,064,521 1,123,340 1,164,783 1,214,151 4,238,703  9,815,336 
OT                                                  731,399 732,853 796,856 852,561 906,718 956,342 1,010,200 1,065,527 1,127,592 1,162,020 1,215,640 4,245,330  9,826,309 
Discretionary Action:                                                                                                                                                      
BA                                                    4,444   1,334   4,458   3,862   3,343   2,608     2,145       168    -2,219     9,076     8,323    15,605     33,098 
OT                                                    4,380     762   4,486   3,890   3,483   2,781     2,133       221    -2,205     9,087     8,327    15,402     32,965 
Reauthorizations:                                                                                                                                                          
BA                                                    3,417  16,889  16,889  16,889  16,889  17,788    17,808    17,829    17,851    17,873    17,897    85,344    174,602 
OT                                                    3,025  15,000  17,250  17,700  17,300  17,298    17,747    17,819    17,840    17,863    17,886    84,548    173,703 
Total:                                                                                                                                                                     
BA                                                  736,377 746,955 814,127 876,185 926,277 976,108 1,029,791 1,082,518 1,138,972 1,191,732 1,240,371 4,339,652 10,023,036 
OT                                                  738,804 748,615 818,592 874,151 927,501 976,421 1,030,080 1,083,567 1,143,227 1,188,970 1,241,853 4,345,280 10,032,977 
Medicare:                                                                                                                                                           
Discretionary Action (Reserve Fund):                                                                                                                                       
BA                                                            7,000      na      na      na      na        na        na        na        na        na        na    400,000 
OT                                                            7,000      na      na      na      na        na        na        na        na        na        na    400,000 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT: BUDGET YEAR TOTAL 2003
[Millions of dollars]
---------------------------------------------------------------------------------------------------------------------------------------
Committee                             Direct spending jurisdiction           Entitlements funded in annual appropriations acts         
                                                   Budgetauthority   Outlays                                   Budgetauthority Outlays 
---------------------------------------------------------------------------------------------------------------------------------------
 Appropriations:                                                                                                                       
General purpose discretionary                              839,118   805,146                                                           
Memo:                                                                                                                                  
On-budget                                                  835,306   801,308                                                           
Off-budget                                                   3,812     3,838                                                           
Highways                                                              31,264                                                           
Mass transit                                                 1,436     6,551                                                           
Mandatory                                                  391,344   378,717                                                           
Total                                                    1,231,898 1,221,678                                                           
Agriculture, Nutrition, and Forestry                        19,359    14,964                                            52,763  40,712 
Armed Services                                              73,996    73,473                                               275     233 
Banking, Housing and Urban Affairs                          12,558     1,599                                               118      16 
Commerce, Science and Transportation                        10,590     7,255                                               885     814 
Energy and Natural Resources                                 2,879     2,539                                                48      63 
Environment and Public Works                                30,830     2,372                                                           
Finance                                                    759,763   763,470                                           286,512 286,509 
Foreign Relations                                           13,595    11,366                                               183     183 
Government Affairs                                          66,931    65,426                                            16,564  16,564 
Judiciary                                                    6,509     6,441                                               534     527 
Health, Education, Labor and Pensions                        5,328     4,805                                             2,814   2,801 
Rules and Administration                                        82        85                                               104     103 
Intelligence                                                                                                               223     223 
Veterans' Affairs                                            1,171     1,109                                            30,321  29,969 
Indian Affairs                                                 456       444                                                           
Small Business                                                 864       769                                                           
Unassigned to Committee                                  (371,644) (358,647)                                                           
Total                                                    1,865,165 1,819,148                                           391,344 378,717 
---------------------------------------------------------------------------------------------------------------------------------------

SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT: BUDGET YEAR TOTAL 2004
[Millions of dollars]
---------------------------------------------------------------------------------------------------------------------------------------
Committee                             Direct spending jurisdiction           Entitlements funded in annual appropriations acts         
                                                   Budgetauthority   Outlays                                   Budgetauthority Outlays 
---------------------------------------------------------------------------------------------------------------------------------------
 Appropriations:                                                                                                                       
General purpose discretionary                              782,999   822,563                                                           
Memo:                                                                                                                                  
On-budget                                                  778,742   818,356                                                           
Off-budget                                                   4,257     4,207                                                           
Highways                                                              31,555                                                           
Mass transit                                                 1,461     6,634                                                           
Mandatory                                                  426,949   410,619                                                           
Total                                                    1,211,409 1,271,371                                                           
Agriculture, Nutrition, and Forestry                        20,801    16,826                                            55,536  39,472 
Armed Services                                              77,560    77,326                                               357     376 
Banking, Housing and Urban Affairs                          13,946     2,251                                               120      12 
Commerce, Science and Transportation                        10,908     6,518                                               827     843 
Energy and Natural Resources                                 2,669     2,390                                                64      70 
Environment and Public Works                                35,654     2,312                                                           
Finance                                                    757,606   760,928                                           315,856 315,780 
Foreign Relations                                            9,787    11,689                                               179     179 
Government Affairs                                          68,533    67,000                                            17,362  17,362 
Judiciary                                                    7,883     7,230                                               511     523 
Health, Education, Labor and Pensions                        5,232     4,439                                             2,888   2,872 
Rules and Administration                                        82       246                                               109     109 
Intelligence                                                                                                               226     226 
Veterans' Affairs                                            1,311     1,260                                            32,914  32,795 
Indian Affairs                                                 475       472                                                           
Small Business                                                   3      (23)                                                           
Unassigned to Committee                                  (371,280) (355,315)                                                           
Total                                                    1,852,579 1,876,920                                           426,949 410,619 
---------------------------------------------------------------------------------------------------------------------------------------

SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT, 5-YEAR TOTAL: 2004-2008
[Millions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------
Committee                              Direct spending jurisdiction           Entitlements funded in annual appropriations acts           
                                                    Budgetauthority   Outlays                                   Budgetauthority   Outlays 
------------------------------------------------------------------------------------------------------------------------------------------
Agriculture                                                 109,330    91,951                                           288,857   206,256 
Armed Services                                              417,330   416,461                                             2,992     3,047 
Banking, Housing and Urban Affairs                           71,267     7,231                                               626     (104) 
Commerce, Science, and Transportation                        60,492    38,575                                             4,538     4,541 
Energy and Natural Resources                                 11,991    10,905                                               320       333 
Environment and Public Works                                190,317    10,561                                                             
Finance                                                   4,501,491 4,510,575                                         1,824,189 1,823,275 
Foreign Relations                                            59,034    55,412                                               876       876 
Governmental Affairs                                        372,971   365,695                                            93,701    93,701 
Judiciary                                                    25,585    25,756                                             2,629     2,640 
Health, Education, Labor, and Pensions                       32,738    29,056                                            15,226    15,126 
Rules and Administration                                        408       574                                               588       588 
Intelligence                                                                                                              1,230     1,230 
Veterans' Affairs                                             6,561     6,382                                           176,815   176,196 
Indian Affairs                                                2,587     2,569                                                             
Small Business                                                    6      (59)                                                             
------------------------------------------------------------------------------------------------------------------------------------------

SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT, 10-YEAR TOTAL: 2004-2013
[Millions of dollars]
-------------------------------------------------------------------------------------------------------------------------------------------
Committee                              Direct spending jurisdiction            Entitlements funded in annual appropriations acts           
                                                    Budgetauthority    Outlays                                   Budgetauthority   Outlays 
-------------------------------------------------------------------------------------------------------------------------------------------
Agriculture                                                 209,130    178,892                                           600,618   446,118 
Armed Services                                              910,879    909,159                                             7,129     7,273 
Banking, Housing and Urban Affairs                          141,433      1,859                                             1,318     (176) 
Commerce, Science, and Transportation                       113,446     69,687                                            10,252    10,232 
Energy and Natural Resources                                 22,263     20,458                                               640       653 
Environment and Public Works                                393,698     19,403                                                             
Finance                                                  10,593,061 10,608,189                                         4,487,111 4,485,223 
Foreign Relations                                           127,160    116,399                                             1,733     1,733 
Governmental Affairs                                        833,756    819,817                                           206,453   206,453 
Judiciary                                                    42,068     41,692                                             5,459     5,455 
Health, Education, Labor, and Pensions                       71,126     64,104                                            32,601    32,468 
Rules and Administration                                        803      1,025                                             1,309     1,309 
Intelligence                                                                                                               2,648     2,648 
Veterans' Affairs                                            12,781     12,501                                           373,770   372,651 
Indian Affairs                                                5,805      5,765                                                             
Small Business                                                    6       (76)                                                             
-------------------------------------------------------------------------------------------------------------------------------------------

ECONOMIC ASSUMPTIONS

Section 301(g)(2) of the Congressional Budget Act requires that the joint explanatory statement accompanying a conference report on a budget resolution set forth the common economic assumptions upon which the joint statement and conference report are based. The Conference Agreement is built upon the economic forecasts developed by the Congressional Budget Office [CBO] and presented in CBO's `The Budget and Economic Outlook: Fiscal Years 2004-2013' (January 2003).

House Resolution- CBO's economic assumptions were used.

Senate Amendment- CBO's economic assumptions were used.

Conference Agreement- CBO's economic assumptions were used. 

ECONOMIC ASSUMPTIONS OF BUDGET RESOLUTION
[Calendar years 2003-2013]
---------------------------------------------------------------------------------------------------------------
                                                        2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 
---------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year)              2.5  3.6  3.4  3.3  3.2  3.1  3.0  2.9  2.6  2.5  2.7 
GDP Price Index (percentage change year over year)       1.6  1.7  2.0  2.1  2.1  2.2  2.2  2.2  2.2  2.2  2.2 
Consumer Price Index (percentage change year over year)  2.3  2.2  2.4  2.5  2.5  2.5  2.5  2.5  2.5  2.5  2.5 
Unemployment Rate (percent)                              5.9  5.7  5.4  5.3  5.2  5.2  5.2  5.2  5.2  5.2  5.2 
3-month Treasury Bill Rate (percent)                     1.4  3.5  4.8  4.9  4.9  4.9  4.9  4.9  4.9  4.9  4.9 
10-year Treasury Note Rate (percent)                     4.4  5.2  5.7  5.8  5.8  5.8  5.8  5.8  5.8  5.8  5.8 
---------------------------------------------------------------------------------------------------------------

PUBLIC DEBT

The adoption of this Conference Agreement by the two Houses would result in the engrossment of a House Joint Resolution adjusting the level of the statutory limit on the public debt pursuant to House Rule XXVII. In consonance with clause 3 of that rule, the conferees contemplate a joint resolution of the following form:

`Resolved, by the Senate and the House of Representatives of the United States of America in Congress assembled, That subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $7,384,000,000,000.'

If the joint resolution is enacted to raise the debt limit to the level contemplated by this conference agreement, the limit will be increased from $6.4 trillion to $7.384 trillion.

Legislative jurisdiction over the public debt remains with the Committee on Ways and Means. The debt rule does not preclude that committee from originating public debt limit bills whenever necessary.

OTHER PROVISIONS

The Senate amendment included 4 separate sections dealing with various reserve funds and or adjustments that have not been included in this Conference Agreement. These provisions are discussed below.

The Agreement does not include any language with respect to section 211 of the Senate amendment which provided an adjustment for Part B grant program under the Individuals with Disabilities Education Act. Additional funding for this program is assumed within the functional levels and discretionary spending limits set out in the Conference Agreement.

The Agreement also does not include any language with respect to section 218 of the Senate amendment which provided a reserve for the State grant program which is funded through the Land and Water conservation fund. The section 218 language was proposed only in conjunction with a reconciliation instruction to the Senate Committee on Energy and Natural Resources designed to facilitate exploration of the Arctic National Wildlife Refuge. This Conference Agreement does not include any such instruction, thus the reserve fund has become irrelevant.

The Agreement does not include any language with respect to section 319 of the Senate amendment which purported to provide a reserve fund to strengthen Social Security. As discussed above, the language was superfluous and thus was not adopted by the conferees.

The Agreement does not include any language with respect to section 329 of the Senate amendment which purported to create a $100 billion reserve for the war in Iraq and subsequent reconstruction. Again the language was superfluous and has in fact been superceded by the President's request and Congress' action on a FY 2003 supplemental appropriations bill for just this purpose.

SENSES OF CONGRESS

House Resolution

The House Resolution did not include any Senses of the House or of Congress.

Senate Amendment

The Senate amendment contains twenty-seven `Sense of the Senate' provisions that were adopted either during the markup or during consideration on the Senate floor. Two other provisions calling for reserve funds were also adopted and included in Title III of the Senate amendment. They more appropriately should have appeared in Title II with other reserve funds and adjustments. These are non-binding statements.

Section 301. Sense of the Senate on Federal employee pay.

Section 302. Sense of the Senate on Tribal colleges and universities.

Section 303. Sense of the Senate regarding the 504 small business credit program.

Section 304. Sense of the Senate regarding Pell Grants.

Section 305. Sense of the Senate regarding the National Guard.

Section 306. Sense of the Senate regarding weapons of mass destruction civil support teams.

Section 307. Sense of the Senate on emergency and disaster assistance for livestock and agriculture producers.

Section 308. Social Security restructuring.

Section 309. Sense of the Senate concerning State fiscal relief.

Section 310. Federal Agency Review Commission.

Section 311. Sense of the Senate regarding highway spending.

Section 312. Sense of the Senate concerning an expansion in health care coverage.

Section 313. Sense of the Senate on the State Criminal Alien Assistance Program.

Section 314. Sense of the Senate concerning programs of the Corps of Engineers.

Section 315. Radio interoperability for first responders.

Section 316. Sense of the Senate on corporate tax haven loopholes.

Section 317. Sense of the Senate on phased-in concurrent receipt of retired pay and veterans' disability compensation for veterans with service-connected disabilities rated at 60 percent or higher.

Section 318. Sense of the Senate concerning Native American Health.

Section 319. Reserve fund to strengthen social security.

Section 320. Sense of the Senate on providing tax and other incentives to revitalize rural America.

Section 321. Sense of the Senate concerning higher education affordability.

Section 322. Sense of the Senate concerning children's graduate medical education.

Section 323. Sense of the Senate on funding for criminal justice.

Section 324. Sense of the Senate concerning funding for drug treatment programs.

Section 325. Funding for after-school programs.

Section 326. Sense of the Senate on the $1,000 child credit.

Section 327. Sense of the Senate concerning funding for domestic nutrition assistance programs.

Section 328. Sense of the Senate concerning free trade agreement with the United Kingdom.

Section 329. Reserve fund for possible military action and reconstruction in Iraq.

Conference Agreement

The Conference Agreement contains the following Senses of the Senate:

Section 601. Sense of the Senate on Federal employee pay.

Section 602. Sense of the Senate regarding Pell Grants.

Section 603. Sense of the Senate on emergency and disaster assistance for livestock and agriculture producers.

Section 604. Social Security restructuring.

Section 605. Sense of the Senate concerning State fiscal relief.

Section 606. Federal Agency Review Commission.

Section 607. Sense of the Senate regarding highway spending.

Section 608. Sense of the Senate on Reports and Liabilities and Future Costs.

Section 609. Sense of the Senate concerning an expansion in health care coverage.

Section 610. Sense of the Senate concerning programs of the Corps of Engineers.

Section 611. Sense of the Senate concerning Native American Health.

Section 612. Sense of the Senate on providing tax and other incentives to revitalize rural America.

Section 613. Sense of the Senate concerning children's graduate medical education.

Section 614. Sense of the Senate on funding for criminal justice.

Section 615. Sense of the Senate concerning funding for drug treatment programs.

Section 616. Sense of the Senate concerning free trade agreement with the United Kingdom.
JIM NUSSLE,
CHRISTOPHER SHAYS,

Managers on the Part of the House.
DON NICKLES,
PETE V. DOMENICI,
CHUCK GRASSLEY,
JUDD GREGG,

Managers on the Part of the Senate.