Congressional Budget Resolutions: Revisions and Adjustments

Publication Date: October 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

The Congressional Budget Act of 1974 requires that the House and Senate adopt a concurrent resolution on the budget each year. For about the first decade of the congressional budget process, the 1974 act required that two budget resolutions be adopted each year (an advisory one in the spring and a binding one in the fall). In the early 1980s, the House and Senate changed to the practice of adopting a single annual budget resolution. In late 1985, the 1974 act was amended to conform it to the changed practice in this regard.

Initial implementation of the congressional budget process occurred in 1975 for FY1976, with full implementation of the process occurring the following year. The House and Senate have reached final agreement on a budget resolution for every succeeding fiscal year, except in three instances (in 1998 for FY1999, in 2002 for FY2003, and in 2004 for FY2005).

The 1974 act originally reflected the assumption that revisions would be a routine part of the congressional budget process by requiring the adoption each fall of a second budget resolution revising (or reaffirming) the first resolution. Although the House and Senate terminated this requirement in favor of adopting a single budget resolution each year, revisions may be made in budget resolutions in several other ways.

First, a revised budget resolution may be adopted by the House and Senate as a separate measure under authority provided in Section 304 of the 1974 act. Second, revisions in current-year levels may be incorporated into the budget resolution for the following fiscal year. Third, adjustments may be made under authority provided in Section 314 of the 1974 act or comparable provisions included in budget resolutions. Fourth, adjustments may be made pursuant to "reserve funds" or similar provisions included in budget resolutions. Fifth, adjustments may be made whenever the "fungibility rule" is used under the reconciliation process. Finally, "deeming resolutions" may include revisions to budget resolutions or provisions that effectively constitute revisions.

The House and Senate adopted a revised budget resolution under Section 304 as a separate measure only once, in March 1977 for FY1977. Due to the fact that two budget resolutions already had been adopted in 1976 for FY1977, as was required at the time, the revised budget resolution was referred to as the "third budget resolution" for that fiscal year. The development of the third budget resolution for FY1977 stemmed from budget revisions, including a stimulus package, submitted to Congress by incoming President Jimmy Carter at the beginning of the 1977 session.

The House and Senate have made changes in budget resolution levels on many occasions under the other authorities, cited above, that provide for revisions and adjustments.

This report will be updated as developments warrant.