United States · Amendment · HAMDT

HAMDT 621 (108th)

An amendment in the nature of a substitute numbered 16 printed in House Report 108-566 to establish a joint budget resolution signed by the President with the force of law, requiring the President and Congress to commit to the same budget before spending money. Replaces 20 functions withone-page budget, setting spending for five categories: mandatory, non- defense, defense, interest, and emergencies. Permits biennial budgeting if President and Congress agree in advance. Non-military emergencies must be handled with "rainy day" fund; spending from fund must be for sudden, urgent, unforeseen, and temporary emergencies. Requires two-thirds supermajority vote in both houses for over-budget spending. Establishes "Family Budget Protection Accounts" to allow Congress to redirect savings found during appropriations process to tax relief or deficit reduction at the end of fiscal year. Limits growth in entitlement spending to inflation adjustment for each program and population growth; discretionary caps allow growth for inflation, with firewall separating defense, non-defense, and emergency spending. Limits protected by points of order and enforced by sequesters. Expands programs eligible for sequester; exempts Social Security and Medicare Part A; protects Medicare Parts B, C, and D, Medicaid, veterans, military, federal retiree benefits,.and certain low-income programs from reductions greater than 2%; President can exempt defense or homeland security accounts for national security. Sunsets every voluntary entitlement program and all discretionary programs in FY08 and FY09 to allow cost-benefit analysis of continued funding (exempts earned benefits). Creates point of order to freeze program funding where authorization has lapsed. Provides expedited Congressional consideration of proposed presidential rescissions. Commission recommends cutting waste, fraud, and abuse; proposals receive expedited Congressional consideration (including in defense and entitlement spending). Requires use of nominal dollars to compare current spending with proposed spending. Requires agencies to fund government shareof accruing costs of pension, retiree pay, and retiree health benefits earned by federal civilian and military employees (no change to retiree benefits). Defines public debt accurately by excluding debt government owesto itself. Risk-assumed budgeting provides for consideration of long-term liabilities of business-related federal insurance programs.

Defence · Taxation · Budget