[House Report 106-673]
[From the U.S. Government Publishing Office]
106th Congress Rept. 106-673
HOUSE OF REPRESENTATIVES
2d Session Part 1
======================================================================
DEBT REDUCTION RECONCILIATION ACT OF 2000
_______
June 12, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Archer, from the Committee on Ways and Means, submitted the
following
R E P O R T
[To accompany H.R. 4601]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 4601) to provide for reconciliation pursuant to
section 213(c) of the concurrent resolution on the budget for
fiscal year 2001 to reduce the public debt and to decrease the
statutory limit on the public debt, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
I. Summary and Background...........................................3
A. Purpose and Summary................................... 3
B. Background and Need for Legislation................... 4
C. Legislative History................................... 4
II. Explanation of the Bill..........................................4
A. Present Law........................................... 4
B. Reasons for Change.................................... 5
C. Explanation of Provisions............................. 5
III. Votes of the Committee...........................................6
IV. Budget Effects of the Bill.......................................7
V. Other Matters to Be Discussed Under the Rules of the House.......9
VI. Changes in Existing Law Made By the Bill, as Reported...........10
VII. Letter From the Committee on the Budget.........................11
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Debt Reduction Reconciliation Act of
2000''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) fiscal discipline, resulting from the Balanced Budget Act
of 1997, and strong economic growth have ended decades of
deficit spending and have produced budget surpluses without
using the social security surplus;
(2) fiscal pressures will mount in the future as the aging of
the population increases budget obligations;
(3) until Congress and the President agree to legislation
that strengthens social security, the social security surplus
should be used to reduce the debt held by the public;
(4) strengthening the Government's fiscal position through
public debt reduction increases national savings, promotes
economic growth, reduces interest costs, and is a constructive
way to prepare for the Government's future budget obligations;
and
(5) it is fiscally responsible and in the long-term national
economic interest to use an additional portion of the nonsocial
security surplus to reduce the debt held by the public.
(b) Purpose.--It is the purpose of this Act to--
(1) reduce the debt held by the public with the goal of
eliminating this debt by 2013; and
(2) decrease the statutory limit on the public debt.
SEC. 3. ESTABLISHMENT OF PUBLIC DEBT REDUCTION PAYMENT ACCOUNT.
(a) In General.--Subchapter I of chapter 31 of title 31, United
States Code, is amended by adding at the end the following new section:
``Sec. 3114. Public debt reduction payment account
``(a) There is established in the Treasury of the United States an
account to be known as the Public Debt Reduction Payment Account
(hereinafter in this section referred to as the `account').
``(b) The Secretary of the Treasury shall use amounts in the account
to pay at maturity, or to redeem or buy before maturity, any obligation
of the Government held by the public and included in the public debt.
Any obligation which is paid, redeemed, or bought with amounts from the
account shall be canceled and retired and may not be reissued. Amounts
deposited in the account are appropriated and may only be expended to
carry out this section.
``(c) If the Congressional Budget Office estimates an on-budget
surplus for fiscal year 2000 in the report submitted pursuant to
section 202(e)(2) of the Congressional Budget Act of 1974 in excess of
the amount of the surplus set forth for that fiscal year in section
101(4) of the concurrent resolution on the budget for fiscal year 2001
(House Concurrent Resolution 290, 106th Congress), then there is hereby
appropriated into the account on the later of the date of enactment of
this Act or the date upon which the Congressional Budget Office submits
such report, out of any money in the Treasury not otherwise
appropriated, for the fiscal year ending September 30, 2000, an amount
equal to that excess. The funds appropriated to this account shall
remain available until expended.
``(d) The appropriation made under subsection (c) shall not be
considered direct spending for purposes of section 252 of Balanced
Budget and Emergency Deficit Control Act of 1985.
``(e) Establishment of and appropriations to the account shall not
affect trust fund transfers that may be authorized under any other
provision of law.
``(f) The Secretary of the Treasury and the Director of the Office of
Management and Budget shall each take such actions as may be necessary
to promptly carry out this section in accordance with sound debt
management policies.
``(g) Reducing the debt pursuant to this section shall not interfere
with the debt management policies or goals of the Secretary of the
Treasury.''.
(b) Conforming Amendment.--The chapter analysis for chapter 31 of
title 31, United States Code, is amended by inserting after the item
relating to section 3113 the following:
``3114. Public debt reduction payment account.''.
SEC. 4. REDUCTION OF STATUTORY LIMIT ON THE PUBLIC DEBT.
Section 3101(b) of title 31, United States Code, is amended by
inserting ``minus the amount appropriated into the Public Debt
Reduction Payment Account pursuant to section 3114(c)'' after
``$5,950,000,000,000''.
SEC. 5. OFF-BUDGET STATUS OF PUBLIC DEBT REDUCTION PAYMENT ACCOUNT.
Notwithstanding any other provision of law, the receipts and
disbursements of the Public Debt Reduction Payment Account established
by section 3114 of title 31, United States Code, shall not be counted
as new budget authority, outlays, receipts, or deficit or surplus for
purposes of--
(1) the budget of the United States Government as submitted
by the President,
(2) the congressional budget, or
(3) the Balanced Budget and Emergency Deficit Control Act of
1985.
SEC. 6. REMOVING PUBLIC DEBT REDUCTION PAYMENT ACCOUNT FROM BUDGET
PRONOUNCEMENTS.
(a) In General.--Any official statement issued by the Office of
Management and Budget, the Congressional Budget Office, or any other
agency or instrumentality of the Federal Government of surplus or
deficit totals of the budget of the United States Government as
submitted by the President or of the surplus or deficit totals of the
congressional budget, and any description of, or reference to, such
totals in any official publication or material issued by either of such
Offices or any other such agency or instrumentality, shall exclude the
outlays and receipts of the Public Debt Reduction Payment Account
established by section 3114 of title 31, United States Code.
(b) Separate Public Debt Reduction Payment Account Budget
Documents.--The excluded outlays and receipts of the Public Debt
Reduction Payment Account established by section 3114 of title 31,
United States Code, shall be submitted in separate budget documents.
SEC. 7. REPORTS TO CONGRESS.
(a) Reports of the Secretary of the Treasury.--(1) Within 30 days
after the appropriation is deposited into the Public Debt Reduction
Payment Account under section 3114 of title 31, United States Code, the
Secretary of the Treasury shall submit a report to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate confirming that such account has been established
and the amount and date of such deposit. Such report shall also include
a description of the Secretary's plan for using such money to reduce
debt held by the public.
(2) Not later than October 31, 2000, and October 31, 2001, the
Secretary of the Treasury shall submit a report to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate setting forth the amount of money deposited into
the Public Debt Reduction Payment Account, the amount of debt held by
the public that was reduced, and a description of the actual debt
instruments that were redeemed with such money.
(b) Report of the Comptroller General of the United States.--Not
later than November 15, 2001, the Comptroller General of the United
States shall submit a report to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the Senate
verifying all of the information set forth in the reports submitted
under subsection (a).
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
The bill, H.R. 4601, the Debt Reduction Reconciliation Act
of 2000, provides for reconciliation pursuant to section 213(c)
of the concurrent resolution on the budget for fiscal year 2001
to reduce the public debt.
The purpose of H.R. 4601 is to reduce the debt held by the
public by the amount of any additional on-budget surplus in
fiscal year 2000. The bill would establish an off-budget
account in the U.S. Treasury, called the Public Debt Reduction
Payment Account. If the Congressional Budget Office's revised
estimate of the fiscal year 2000 on-budget surplus is higher
than specified in the fiscal year 2001 Congressional budget
resolution, the increased amount would be automatically
appropriated to the account, and the statutory debt limit would
be reduced by an equivalent amount. Funds in the account could
be used only to reduce the debt held by the public. The
reduction in the debt limit emphasizes Congress's intent to
reverse years of increasing debt and rising debt limits. The
bill would also require the Secretary of the Treasury and U.S.
Comptroller General of the United States to report to Congress
on how the funds were used to reduce the debt.
B. Background and Need for Legislation
The gross federal debt consists of debt held by the public
and debt held by government accounts, including the Social
Security trust funds. Almost all of this debt is subject to a
``debt limit,'' which was first established in statute in 1917.
This limit represents the maximum amount the U.S. Treasury may
borrow without receiving additional authority from Congress.
The current statutory debt limit is $5.95 trillion. The
outstanding debt subject to the limit was $5.57 trillion at the
end of 1999. Of this amount, $3.63 trillion was held by the
public, and $1.97 trillion was held by government accounts.
Although the debt held by the public has decreased in recent
years, the gross federal debt continues to rise because of
increases in the government-held debt.
Under present law, any budget surpluses remaining at the
end of the fiscal year are used to reduce the debt held by the
public. Present law includes several mechanisms to limit
spending, such as pay-as-you-go scorekeeping rules and
discretionary spending limits. In addition, current law
provides for points of order in the House and Senate to enforce
the Congressional Budget Resolution. This year's Budget
Resolution added new budget, debt, and surplus-related points
of order. Although these tools have effectively controlled
spending in the past, they have been less effective in
controlling spending during an era of budget surpluses. The
current legislation is needed to emphasize that public debt
reduction is a priority of the Congress, and a portion of the
non-social security surplus should be reserved for this
purpose.
C. Legislative History
The bill, H.R. 4601, was introduced by Mr. Fletcher et al
on June 8, 2000. The Committee marked up the bill on June 8,
2000, and approved the bill with a Chairman's amendment in the
nature of a substitute, by a rollcall vote.
II. EXPLANATION OF THE BILL
A. Present Law
The public debt outstanding comprises the total face amount
or principal of marketable and non-marketable securities
currently outstanding. With the exception of certain debt,\1\
currently representing less than $100 billion, the Congress has
established a public debt limit that represents the maximum
amount of money the Government is allowed to borrow without
receiving additional authority from Congress. Debt subject to
the public debt limit generally includes debt owed to the
public which comprises all Federal securities held by
individuals, corporations, State and local governments, foreign
governments, and other foreign persons, and debt held by the
Government which comprises Federal securities held by
Government trust funds, revolving funds, and special funds.
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\1\ Debt not subject to the public debt limit comprise unamortized
discount on Treasury bills and zero-coupon Treasury bonds, certain old
debt, debt held by the Federal Financing Bank, and certain guaranteed
debt.
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The statutory limit on the public debt currently is $5.95
trillion. It was set at this level in the Balanced Budget Act
of 1997 (P.L. 105-33), enacted into law on August 5, 1997.
With the approval of the President, the Secretary of the
Treasury may use money received from the sale of bonds or notes
of the United States and other money in the general fund of the
Treasury to make purchases, redemptions, or refunds of bonds,
notes, certificates of indebtedness, Treasury bills, or savings
certificates of the United States Government at or before
maturity of such instruments of indebtedness.
By June 1 of each year, the Secretary of the Treasury must
submit a report to Congress regarding the Treasury's public
debt activities.
B. Reasons for Change
The U.S. economy continues its healthy growth. As a result,
what were reasonable projections of the Federal Government's
surplus are likely to be revised upwards. In particular, the
non-social security portion of the Federal budget is in
surplus, and the estimated size of the surplus is likely to
increase when the Congressional Budget Office (``CBO'')
releases its revised budget estimates. The Committee believes
that, if the CBO revises upward its projection of the fiscal
year 2000 surplus, the best use of that additional surplus
would be to reduce the national debt. Accordingly, the
Committee believes that to help enforce fiscal discipline
monies equal to the value of the upward revision in the Federal
Government's surplus should be appropriated to a newly
established account from which the Secretary of the Treasury
should draw funds to retire debt held by the public.
The Committee also believes it is important to reduce the
statutory limit on the public debt to mark the progress the
Federal Government has made in maintaining fiscal discipline.
The bill also contains language directing the Secretary of
the Treasury and the Director of the Office of Management and
Budget (``OMB'') to use the money to pay down the debt in a
manner consistent with sound debt management. In its management
of the public debt, Treasury generally adheres to three goals:
(1) ensuring adequate cash balances so the government can pay
its day-to-day operating expenses, (2) financing the debt at
the lowest cost to taxpayers, and (3) promoting efficient
capital markets. The bill provides Treasury with maximum
flexibility in using the funds to pay down the debt so that
none of these goals are compromised.
The bill emphasizes that reduction of the debt held by the
public is a priority of the Congress, and the Congress should
pro-actively set aside a portion of the non-social security
surplus for this purpose.
C. Explanation of Provisions
H.R. 4601, as reported, establishes an account in the
Treasury to be called the Public Debt Reduction Payment Account
(``the Account''). The bill provides that an amount of money is
to be appropriated to the Account out of any money in the
Treasury not otherwise appropriated. The amount of money to be
appropriated is to equal the value of the CBO projection
submitted pursuant to section 202(e)(2) of the Congressional
Budget Act of 1974 of the fiscal year 2000 surplus in excess of
the amount of fiscal year 2000 surplus specified in the
concurrent budget resolution for fiscal year 2001.\2\ The
appropriation will not be considered direct spending. Amounts
appropriated to the Account may only be expended to redeem or
buy at maturity public debt held by the public. The bill
provides that the Account has off-budget status. The bill
further provides that any official statement regarding surplus
or deficit totals of the Federal Government issued by the OMB,
the CBO, or any other agency of the Federal Government shall
exclude the outlays and receipts of the Account. The outlays
and receipts of the Account will be submitted in separate
budget documents.
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\2\ The surplus specified in section 101(4) of the concurrent
budget resolution is $24.4 billion for fiscal year 2000.
---------------------------------------------------------------------------
In addition, the bill reduces the statutory limit on the
public debt by the amount deposited into the Account. That is,
the current statutory debt limit of $5.95 trillion is to be
reduced by an amount of money equal to the value of the CBO's
projection submitted pursuant to section 202(e)(2) of the
Congressional Budget Act of 1974 of the fiscal year 2000
surplus in excess of the amount of fiscal year 2000 surplus
specified in the concurrent budget resolution for fiscal year
2001.
The bill provides that the Secretary of the Treasury and
the Director of the OMB shall take such action as necessary to
ensure that the funds appropriated to the Account are promptly
used to reduce the debt held by the public in a manner
consistent with sound debt management policies.
The bill requires the Secretary of the Treasury to make
three reports to Congress related to the Account. The first
report is due within 30 days after the appropriation is
deposited into the Account. This report will confirm the
establishment of the account and provide a description of the
Secretary's plan for using the money deposited into the account
to retire debt held by the public. A second report is due no
later than October 31, 2000. In this report, the Secretary will
account for money used from the Account to reduce debt held by
the public during fiscal year 2000. The third report is due no
later than October 31, 2001. This report will provide a
detailed accounting of the debt redeemed from amounts deposited
into the Account. The bill further requires that the
Comptroller General verify the accuracy of the Secretary's
reports not later than November 15, 2001.
Effective Date.--The bill is effective on the date of
enactment.
III. VOTES OF THE COMMITTEE
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the following statements are made
concerning the votes of the Committee on Ways and Means in its
consideration of the bill, H.R. 4601.
motion to report the bill
The bill, H.R. 4601, as amended, was ordered favorably
reported by a rollcall vote of 32 yeas to 3 nays (with a quorum
being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representatives Yea Nay Present Representatives Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Archer..................... X ........ ......... Mr. Rangel....... X ........ .........
Mr. Crane...................... X ........ ......... Mr. Stark........ ........ ........ .........
Mr. Thomas..................... X ........ ......... Mr. Matsui....... X ........ .........
Mr. Shaw....................... X ........ ......... Mr. Coyne........ X ........ .........
Mrs. Johnson................... X ........ ......... Mr. Levin........ X ........ .........
Mr. Houghton................... ........ ........ ......... Mr. Cardin....... ........ X .........
Mr. Herger..................... X ........ ......... Mr. McDermott.... ........ ........ .........
Mr. McCrery.................... X ........ ......... Mr. Kleczka...... X ........ .........
Mr. Camp....................... X ........ ......... Mr. Lewis (GA)... X ........ .........
Mr. Ramstad.................... X ........ ......... Mr. Neal......... X ........ .........
Mr. Nussle..................... X ........ ......... Mr. McNulty...... X ........ .........
Mr. Johnson.................... X ........ ......... Mr. Jefferson.... X ........ .........
Ms. Dunn....................... X ........ ......... Mr. Tanner....... ........ X .........
Mr. Collins.................... X ........ ......... Mr. Becerra...... X ........ .........
Mr. Portman.................... X ........ ......... Mrs. Thurman..... ........ X .........
Mr. English.................... X ........ ......... Mr. Doggett...... ........ ........ .........
Mr. Watkins.................... X ........ .........
Mr. Hayworth................... X ........ .........
Mr. Weller..................... X ........ .........
Mr. Hulshof.................... X ........ .........
Mr. McInnis.................... X ........ .........
Mr. Lewis (KY)................. X ........ .........
Mr. Foley...................... X ........ .........
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IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimates of Budgetary Effects
In compliance with clause 3(d)(2) of rule XIII of the Rules
of the House of Representatives, the following statement is
made concerning the effects on the budget of the bill, H.R.
4601, as reported.
The Committee has provided the estimate of the
Congressional Budget Office, which is below.
B. Statement Regarding New Budget Authority and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority and no
increased tax expenditures.
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the Congressional Budget Office (``CBO''), the
following statement by CBO is provided.
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 12, 2000.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4601, the Debt
Reduction Reconciliation Act of 2000.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Paul
Cullinan.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 4601--Debt Reduction Reconciliation Act of 2000
H.R. 4601 would establish the Public Debt Reduction Payment
Account, a new account in the Treasury of the United States,
and would appropriate into that account an amount equal to any
increase in the on-budget surplus projected by the
Congressional Budget Office (CBO) for fiscal year 2000. The
increase would be measured relative to the $24.4 billion on-
budget surplus specified in the concurrent resolution on the
budget for fiscal year 2001. Transactions of the new account
would be off-budget, and funds in the account would be used to
retire or purchase outstanding federal debt held by the public.
The bill would also reduce the statutory limit on the public
debt by the same amount that is appropriated to this account.
This bill would have no effect on the total spending,
receipts, or surplus of the federal government. Whether it
would affect the allocation of the budget surplus between the
on-budget and off-budget categories would depend on the
budgetary treatment chosen by the Office of Management and
Budget (OMB).
H.R. 4601 could reduce the on-budget surplus and increase
the off-budget surplus in fiscal year 2000 by the same amount.
Because CBO has not yet completed its summer budget update, we
do not yet have a specific estimate of the budgetary impact of
the bill. CBO has stated that it anticipates an on-budget
surplus of at least $40 billion for the current fiscal year,
which would indicate that at least $16 billion would be
transferred to the Public Debt Reduction Payment Account.
H.R. 4601 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would have no effect on the budgets of state, local, or tribal
governments.
Budgetary implications
Although H.R. 4601 would have no budgetary effect relative
to the current CBO baseline estimates, the bill could change
the on-budget and off-budget surpluses if CBO's forthcoming
budget update projects an increase in the on-budget surplus. In
that case, the bill would appropriate the increase to an off-
budget account, leaving the on-budget surplus at the level
assumed in the budget resolution and increasing the off-budget
surplus--but the total federal surplus would not be affected by
the bill. That budgetary treatment would parallel the budgetary
treatment of subsidy appropriations to the Postal Service and
interest payments to the Social Security trust funds--that is,
on-budget outlays precisely offset by off-budget receipts or
collections. (It is possible however, that OMB would choose an
alternative approach, which would result in no change in either
the on-budget or off-budget surplus.)
Any increase in the on-budget surplus, if not used for
additional spending or for reductions in taxes, would
automatically be used to reduce the federal debt. This bill,
therefore, would help reduce the public debt only to the extent
that, by reducing the reported on-budget surplus, it inhibits
the use of some of that surplus for spending increases or tax
reductions.
Budgetary treatment
For Congressional scorekeeping purposes, CBO would record
payments from the general fund of the Treasury to the off-
budget Public Debt Reduction Payment Account as direct
spending. H.R. 4601, however, specifies that the appropriation
to the account would not be classified as direct spending.
Therefore, once the bill is enacted into law, pay-as-you-go
procedures would not apply to the appropriation. However, that
language does not affect the treatment of the bill for
Congressional scorekeeping purposes.
The CBO staff contact for H.R. 4601 is Paul Cullinan. This
estimate was approved by Robert A. Sunshine, Assistant Director
for Budget Analysis.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives (relating to oversight findings),
the Committee advises that it was the result of the Committee's
oversight review concerning the statutory limit on the public
debt that the Committee concluded that it is appropriate and
timely to enact the provisions included in the bill as
reported. On January 20, 1999, the Committee on Ways and Means
held a public hearing on ``the Outlook for the State of the
U.S. Economy in 1999'' which discussed the benefits of using
budget surpluses to reduce the debt held by the public. On
September 29, 1999, the Committee on Ways and Means held a
public hearing on ``Treasury's Debt Buyback Proposal'' which
discussed Treasury's debt management policies.
B. Summary of Findings and Recommendations of the Committee on
Government Reform
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that no
oversight findings or recommendations have been submitted to
this Committee by the Committee on Government Reform with
respect to the provisions contained in the bill.
C. Constitutional Authority Statement
With respect to clause (3)(d)(1) of rule XIII of the Rules
of the House of Representatives (relating to Constitutional
Authority), the Committee states that the Committee's action in
reporting this bill is derived from Article I of the
Constitution, Section 8 (``The Congress shall have the Power To
lay and collect Taxes, Duties, Imposts and Excises * * *'').
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
CHAPTER 31 OF TITLE 31, UNITED STATES CODE
* * * * * * *
CHAPTER 31--PUBLIC DEBT
SUBCHAPTER I--BORROWING AUTHORITY
Sec.
3101. Public debt limit.
* * * * * * *
3114. Public debt reduction payment account.
* * * * * * *
SUBCHAPTER I--BORROWING AUTHORITY
Sec. 3101. Public debt limit
(a) * * *
(b) The face amount of obligations issued under this chapter
and the face amount of obligations whose principal and interest
are guaranteed by the United States Government (except
guaranteed obligations held by the Secretary of the Treasury)
may not be more than $5,950,000,000,000 minus the amount
appropriated into the Public Debt Reduction Payment Account
pursuant to section 3114(c) outstanding at one time, subject to
changes periodically made in that amount as provided by law
through the congressional budget process described in Rule XLIX
of the Rules of the House of Representatives or otherwise.
* * * * * * *
Sec. 3114. Public debt reduction payment account
(a) There is established in the Treasury of the United States
an account to be known as the Public Debt Reduction Payment
Account (hereinafter in this section referred to as the
``account'').
(b) The Secretary of the Treasury shall use amounts in the
account to pay at maturity, or to redeem or buy before
maturity, any obligation of the Government held by the public
and included in the public debt. Any obligation which is paid,
redeemed, or bought with amounts from the account shall be
canceled and retired and may not be reissued. Amounts deposited
in the account are appropriated and may only be expended to
carry out this section.
(c) If the Congressional Budget Office estimates an on-budget
surplus for fiscal year 2000 in the report submitted pursuant
to section 202(e)(2) of the Congressional Budget Act of 1974 in
excess of the amount of the surplus set forth for that fiscal
year in section 101(4) of the concurrent resolution on the
budget for fiscal year 2001 (House Concurrent Resolution 290,
106th Congress), then there is hereby appropriated into the
account on the later of the date of enactment of this Act or
the date upon which the Congressional Budget Office submits
such report, out of any money in the Treasury not otherwise
appropriated, for the fiscal year ending September 30, 2000, an
amount equal to that excess. The funds appropriated to this
account shall remain available until expended.
(d) The appropriation made under subsection (c) shall not be
considered direct spending for purposes of section 252 of
Balanced Budget and Emergency Deficit Control Act of 1985.
(e) Establishment of and appropriations to the account shall
not affect trust fund transfers that may be authorized under
any other provision of law.
(f) The Secretary of the Treasury and the Director of the
Office of Management and Budget shall each take such actions as
may be necessary to promptly carry out this section in
accordance with sound debt management policies.
(g) Reducing the debt pursuant to this section shall not
interfere with the debt management policies or goals of the
Secretary of the Treasury.
VII. LETTER FROM THE COMMITTEE ON THE BUDGET
House of Representatives,
Committee on the Budget,
Washington, DC, June 8, 2000.
Hon. Bill Archer,
Committee on Ways and Means, Longworth House Office Building,
Washington, DC.
Dear Chairman Archer: As you know, the Concurrent Budget
Resolution for FY 2001, H. Con. Res. 290, established a
procedure to consider legislation to reduce the debt held by
the public.
Section 213(c) states: ``If the Congressional Budget Office
estimates an on-budget surplus for fiscal year 2000 in excess
of the level set forth in this resolution, then the chairman of
the Committee on the Budget of the House may direct the
Committee on Ways and Means to report by a date certain an
additional reconciliation bill that reduces debt held by the
public by such amount.''
In its Monthly Budget Review released May 12, 2000, CBO
reported the surplus for FY 2000 would be at least $14 billion
higher than the level set forth in the budget resolution. While
CBO has not yet released its official mid-session update, I
urge the Committee on Ways and Means to report the Debt
Reduction Reconciliation Act of 2000. This bill is fully
consistent with the intent of Section 213.
Although the Debt Reduction Reconciliation Act of 2000
contains provisions within the jurisdiction of the Committee on
the Budget, I will ask that the Budget Committee be discharged
from consideration of this bill.
Sincerely,
John R. Kasich,
Chairman, Committee on the Budget.