BUDGET PROCESS REFORMS

Stop Over-Spending Act (S.O.S. Act)

On June 20, the Senate Budget Committee reported the Stop Over-Spending Act (S.O.S. Act; S. 3521), a bill set to reform the Congressional budget process. The S.O.S. Act includes provisions to:

• Create a biennial budget cycle. During non-election years, Congress would consider a budget process extending over two years, including a two-year budget request by the President, two-year budget resolution and a two-year appropriations process.
• Revamp on existing procedure for the President to cancel certain spending and tax authorities (akin to a line item veto), with the approval of Congress.
• Establish statutory caps on discretionary spending, including emergency funding. An across-the-board sequestration would take effect in the event if the caps are exceeded.
• Provide for an automatic reconciliation process.
• Establish a commission on entitlement program reform and federal program performance evaluation.

S.3521: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s3521is.txt.pdf (as of June 15th)

On June 23, Senator Kent Conrad of North Dakota, ranking member of the Budget Committee, released a statement criticizing S. 3521 and offered alternative policy suggestions to:

• Restore PAYGO (statutory requirement that new entitlement/mandatory program spending or tax changes must be "budget neutral" or offset from existing funds).
• Provide reconciliation for deficit reduction only.
• Provide a Point-of-Order against new mandatory spending or revenue legislation that would increase the deficit until Social Security solvency is restored to 75 years.
• Provide a Point-of-Order against consideration of tax, spending, debt limit legislation without the approval of a new budget resolution.
• Allow Congress to amend conference reports.
• Enforce a discretionary spending limit.
• Require war costs (Iraq and Afghanistan) to be included in the President’s budget request.

S. 3521: http://budget.senate.gov/democratic/statements/2006/minorityviewsongopbudgetprocessbill062306.pdf

Presidential Line Item Veto Authority

On June 22, the House passed the Legislative Line Item Veto Act of 2006 (H.R. 4890), which would establish procedures for the President to cancel certain spending and tax authorities, with the approval of Congress.

H.R. 4890: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h4890eh.txt.pdf

Securing America's Future Economy Commission Act

On June 12, Senator Voinovich (Ohio) introduced the Securing America's Future Economy (SAFE) Commission Act (S. 3491), which establishes a commission to evaluate and propose solutions toward reforming the federal tax and entitlement systems. The SAFE Commission will also develop proposals to reform the formulation of cost estimates for legislation before Congress and encourage net national savings.  The report must be completed within one year of enactment. 

S. 3491: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s3491is.txt.pdf

NCSL ANNUAL MEETING

NCSL's 2006 Annual Meeting in Nashville August 15-18, where America's issues will take center stage.