Congressional Budget Actions in 2002

Publication Date: December 2002

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

During the second session of the 107th Congress, the House and Senate considered many different budgetary measures. Most of these measures pertained to FY2003 (which began on October 1, 2002) and beyond, but a supplemental appropriations measure for FY2002 was enacted as well. This issue brief describes House and Senate action on major budgetary legislation within the framework of the congressional budget process and other procedural requirements.

Congress begins its annual budget process once the President submits his budget. President Bush submitted his FY2003 budget to Congress on February 4, 2002. President Bush released his budget update, Mid-Session Review, on July 15.

In preparation for congressional action on the budget, CBO released its annual report on budget baseline projections, The Budget and Economic Outlook: Fiscal Years 2003-2012, on January 31. CBO twice updated these budget baseline projections, based on new technical assumptions and a revised economic forecast, in its report, Analysis of the President’s Budgetary Proposals for Fiscal Year 2003, released on March 6, and its report, The Budget and Economic Outlook: An Update, released on August 27.

The Congressional Budget Act of 1974 established the congressional budget process. The process is centered on the adoption of an annual concurrent resolution on the budget. Budget resolution policies are implemented through the enactment of reconciliation bills, revenue and debt-limit legislation, and appropriations and other spending measures, and enforced by points of order that may be raised when legislation is pending on the House and Senate floor.

The House adopted its version of the FY2003 budget resolution, H.Con.Res. 353, on March 20. In the absence of an agreement with the Senate, the House adopted a resolution “deeming” its budget resolution to have been adopted by Congress for budget enforcement purposes. The Senate Budget Committee reported its version of the FY2003 budget resolution, S.Con.Res. 100, on March 22, but did not consider it on the Senate floor.

On August 2, President Bush signed H.R. 4775, FY2002 Supplemental Appropriations Act, into law (P.L. 107-206).

On October 23, President Bush signed into law the first two FY2003 regular appropriations acts: the Defense Appropriations Act, 2003 (P.L. 107-248) and the Military Construction Appropriations Act, 2003 (P.L. 107-249). In the absence of final action on the remaining 11 regular appropriations acts, Congress passed and President Bush signed into law a fifth continuing resolution (CR) for FY2003 (P.L. 107-294) on November 23. The CR provides temporary appropriations through January 11, 2003, for federal government agencies and programs funded in those acts.

The statutory limits on discretionary spending and the “pay-as-you-go” (PAYGO) requirement for direct spending and revenue legislation established under the Budget Enforcement Act of 1990, as amended, expired on September 30, 2002. Also, Congress passed and President Bush signed legislation (H.R. 5708, P.L. 107-312) that reduced the positive balances on the PAYGO scorecard to zero, thereby preventing any future PAYGO sequestration due to projected increases in the deficit as a result of direct spending and revenue legislation enacted prior to the end of FY2002.