FEB510

TheWeekInCongress.com - February 4, 2010 - The House addressed Senate amendments to HJRES 45, a resolution raising the public debt limit Congress is allowed and establishing spending procedures and limitations aimed at budget neutrality, but the focus was on a statutory adoption of pay-as-you-go (PAYGO) rules. PAYGO is a budget balancing tool implemented in the 1990 Budget Enforcement Act requiring that increases in spending be offset by decreases in spending elsewhere or an increase in taxes.

The Senate amendment approves the text of HR 2920, a built that defines and adopts PAYGO rules that passed the House in July 2009.

Congress and the Clinton Administration used PAYGO frequently between 1992 and 1999 to eliminate a $300 billion spending deficit and produce surpluses. During those years and since, Congress would suspend and reinstall PAYGO rules from time to time. The amendment would make PAYGO a budget function.

Areas of federal spending that were exempt from PAYGO have included war, disasters and unemployment insurance. Those exemptions would continue but the final legislation would include Pell Grants, Low Income Heating Assistance (LIHEAP), nutrition funds for Women With Infant Children (WIC), The early learning Head Start program, and housing assistance. Also temporarily exempt from deficit spending rules would be Medicare physician payments for 5 years, the Alternative Minimum Tax for 2 years. The FY 2009 estate tax exemption and rates for two years.

This PAYGO requires that all new policies reducing revenues or expanding entitlement spending be offset over five and ten years and also exempts emergency spending in the category of reinvigorating the economy such as through the Recovery and Reinvestment Act.

Any extension of child tax credit, marriage penalty relief and reduction in income tax rates for taxpayers with incomes below $250,000 will be permanently extended. Extensions of higher income tax cuts must be offset in the future.

The PAYGO provision, as have previous PAYGOs, includes an enforcement mechanism called sequester. Sequester is an automatic reduction in spending for the category in which spending was not balanced. The sequester could take two basic forms; one would be across the board budget cuts--excluding those programs exempt from PAYGO--or cuts in the programs or departments in which the deficit occurred. Programs exempt from PAYGO would also be exempt from sequester.

The resolution was divided into two parts for consideration resulting in a 'division vote'. The part of the resolution raising the debt limit was agreed to pursuant to the rule governing debate.

On motion to adopt the second portion of the divided question was agreed to by the Yeas and Nays: 233 - 187 thereby agreeing to Titles I and II of the resolution. Title I addresses PAYGO details. Title II directs the Comptroller General of the Government Accountability Office to conduct routine investigations to identify programs, agencies, offices, and initiatives with duplicative goals and activities within Departments and government-wide and report annually to Congress on the findings, including the cost of such duplication and with recommendations for consolidation and elimination to reduce duplication identifying specific rescissions.

The Senate Amendments
HR 2920 bill report and vote.

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Bills qualify disabled advocates; recall school integration; improve cyber-security.

Disability Advocates

Non-lawyer advocates for SS disabled claims to meet new standards.

HR 4532

Louisiana Integration

The history of the landmark integration law is reviewed.

HRES 901

Cyber-security

Funds are provided to beef up protection of US cyber infrastructure.

HR 4061

The House is adjourned until February 9th.

The Senate is adjourned until February 8th.