Senate Budget Committee Senior Staff Jim Hearn, Lisa Konwinski, John Righter, and Cheri Reidy, Who Provided Keen Editorial Support
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109th Congress, 2nd Session S. Doc. 109–24 Committee on the Budget UNITED STATES SENATE 1974–2006 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 2006 VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00001 Fmt 5903 Sfmt 6602 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE congress.#13 An Act To establish a new congressional budget process; to establish Committees on the Budget in each House; to establish a Congres- sional Budget Office; to establish a procedure providing congres- sional control over the impoundment of funds by the executive branch; and for other purposes. —the Congressional Budget and Impoundment Control Act of 1974 II VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00002 Fmt 5914 Sfmt 5914 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE United States Senate Committee on the Budget ONE HUNDRED NINTH CONGRESS JUDD GREGG, New Hampshire, KENT CONRAD, North Dakota, Chairman Ranking Member PETE V. DOMENICI, New Mexico PAUL S. SARBANES, Maryland CHARLES E. GRASSLEY, Iowa PATTY MURRAY, Washington WAYNE ALLARD, Colorado RON WYDEN, Oregon MICHAEL B. ENZI, Wyoming RUSSELL D. FEINGOLD, Wisconsin JEFF SESSIONS, Alabama TIM JOHNSON, South Dakota JIM BUNNING, Kentucky ROBERT C. BYRD, West Virginia MICHAEL D. CRAPO, Idaho BILL NELSON, Florida JOHN ENSIGN, Nevada DEBBIE STABENOW, Michigan JOHN CORNYN, Texas ROBERT MENENDEZ, New Jersey LAMAR ALEXANDER, Tennessee LINDSEY O. GRAHAM, South Carolina SCOTT B. GUDES, Majority Staff Director MARY ANN NAYLOR, Staff Director III VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00003 Fmt 5914 Sfmt 5935 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE IV VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00004 Fmt 5914 Sfmt 5935 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE V VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00005 Fmt 5914 Sfmt 5935 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE 28749.041 VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00006 Fmt 5914 Sfmt 5935 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE Acknowledgments The publication of this history benefited from the contributions of a number of congressional offices and agencies, including the Congressional Research Service (CRS) of the Library of Congress, the United States Senate Historical Office, and the Senate Library. The United States Senate Committee on the Budget especially wishes to acknowledge the outstanding contributions of Robert Keith, budget process specialist, and Mary Frances Bley and Jerry V. Mansfield, librarians, of CRS; Tara J. Olivero, archivist and his- torian serving with the Committee; and Lynne Seymour, chief clerk of the Committee. This history would not have been possible without their significant expertise and effort. Integral to the success of this project was Suzanne Kayne of the Government Printing Office and Senate Budget Committee senior staff Jim Hearn, Lisa Konwinski, John Righter, and Cheri Reidy, who provided keen editorial support. Finally, the Committee wishes to express appreciation to the former professional staff who contributed to the production of this history through personal interviews and recollections. These public servants served the members of the Senate Budget Committee and the Nation with esprit and distinction. Their efforts and accom- plishments furthered the field of financial management, and made tangible, lasting improvements to the budget of the United States Government and the congressional budget process. VII VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00007 Fmt 5914 Sfmt 5914 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00008 Fmt 5914 Sfmt 5914 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE Introduction The following history of the Senate Budget Committee and the congressional budget process was created in a bipartisan effort. Sig- nificant contributions were made by Committee staff, the Congres- sional Research Service of the Library of Congress, and the Office of the Senate Historian. Several individuals are highlighted in the acknowledgments. The Budget Committee is one of the Senate’s youngest commit- tees, having been created by the Congressional Budget Act of 1974. The Committee, the budget resolution and reconciliation process, and enforcement authorities were created to enable Con- gress to create, enforce, and manage the annual Federal budget, in- cluding all types of Federal spending and revenues. From the out- set under the first chairman and ranking member, Senators Ed- mund S. Muskie and Peter H. Dominick, the Committee has ben- efited from effective leadership and membership, and it has been supported by an outstanding professional staff. One responsibility of the Committee is to facilitate an under- standing by the Congress and public of the policies, programs, fi- nancial resources, and estimates included in the budget, and how the congressional budget process works to enforce the budget blue- print. In that spirit, this history, including excerpts from inter- views with former senior staff, is provided. We hope that the pub- lic, students, and employees of the three branches of government will find this volume informative and useful. PREPARED UNDER THE AUTHORITY OF JUDD GREGG, CHAIRMAN, AND KENT CONRAD, RANKING MEMBER COMMITTEE ON THE BUDGET UNITED STATES SENATE 109TH CONGRESS IX VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00009 Fmt 5914 Sfmt 5914 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00010 Fmt 5914 Sfmt 5914 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE Contents Page Acknowledgments .............................................................................. VII Introduction ....................................................................................... IX Principal Duties and Functions of the Senate Committee on the Budget ........................................................................................... 1 Concurrent Resolutions on the Budget ...................................... 1 Reconciliation Legislation .......................................................... 7 Budget Process Reform Proposals .............................................. 11 Executive Impoundment Proposals and Impoundment Legisla- tion ........................................................................................ 13 Oversight of the Congressional Budget Office ........................... 14 Consideration of the Nomination of the Director and Deputy Director of the Office of Management and Budget ................ 16 History of the Congressional Budget Process and the Senate Com- mittee on the Budget ..................................................................... 19 Background ................................................................................ 19 Prelude to the 1974 Reform ...................................................... 24 The Congressional Budget and Impoundment Control Act of 1974 ....................................................................................... 28 The First Decade: From ‘‘Dry Run’’ to Reconciliation .............. 39 Coping with Deficits: the Gramm-Rudman-Hollings Act and Related Laws .......................................................................... 47 Moving Toward Balance: Budget Enforcement Laws in the 1990s and the Emergence of Surpluses .................................. 52 Congressional Budgeting in the 21st Century ........................... 60 Staff Recollections .............................................................................. 71 Beginnings ................................................................................. 73 People and Structure .......................................................... 73 Carroll Arms ...................................................................... 74 XI VerDate jan 13 2004 11:54 May 09, 2007 Jkt 028749 PO 00000 Frm 00011 Fmt 5914 Sfmt 5914 C:\DOCS\BUDGET\28749.TXT CRS1 PsN: SKAYNE Page Sid Brown (the Committee’s First Chief of Budget Re- view) .............................................................................. 75 Technology ......................................................................... 75 Markups, Resolutions, and the Senate Floor .............................. 76 Tests of Budget Enforcement ..................................................... 80 Committee Dynamics ................................................................. 82 Interaction with the Senate Leadership and the Executive Branch .................................................................................... 83 Reconciliation ............................................................................ 86 Gramm-Rudman-Hollings (GRH) ............................................. 90 Post-GRH Budget Agreements ................................................. 92 1987 Agreements: Omnibus Reconciliation (OBRA) and Balanced Budget and Emergency Deficit Control Reaf- firmation Act ................................................................. 92 1989 Agreement: OBRA ................................................... 93 1990 Agreements: Budget Enforcement Act, Andrews Air Force Base Summit ........................................................ 94 1993 Agreement: OBRA ................................................... 96 1997 Agreement: Balanced Budget Act ............................ 97 The Congressional Budget Office (CBO) ................................... 98 Contemporary Budgeting ..........................................................