Pay-as-you-go procedures for budget enforcement / Robert Keith, Library of Congress Congressional Research Service.

Format:

Book

Government document

Author/Creator:

Keith, Robert, author.

Library of Congress Congressional Research Service, author.

Contributor:

Library of Congress Congressional Research Service, author.

Series:

CRS report for Congress ; RL34300.

CRS report for Congress ; RL34300

Language:

English

Subjects (All):

Budget deficits.

Physical Description:

1 online resource (7 pages).

Place of Publication:

Washington, District of Columbia : Congressional Research Service, Library of Congress, 2008.

Summary:

"Pay-as-you-go" (PAYGO) procedures play an important role in enforcing budget policies with respect to the consideration of revenue and direct spending legislation. Generally, the purpose of PAYGO procedures is to discourage or prevent the enactment of legislation that would cause, or increase, a deficit or reduce a surplus. PAYGO procedures are not a comprehensive means of budget enforcement because they do not apply to discretionary spending, which is provided in annual appropriations acts; such spending is subject to other budget enforcement procedures. Further, PAYGO rules deal only with the budgetary impact of legislation considered during a session; they do not address changes in direct spending and revenue levels under current law stemming from changes in the economy, demographic trends, and other factors. Over the years, several different PAYGO procedures have been used for budget enforcement purposes. The PAYGO procedures have been based in statute as well as congressional rules. Statutory and rules-based PAYGO procedures have been in effect simultaneously at times, while at other times only one form of PAYGO procedures was in effect. The scope and effect of PAYGO procedures have varied depending on their form. At present, the House and Senate each have their own PAYGO rules, but the statutory procedures that existed for more than a decade effectively were terminated in late 2002. Efforts to restore the statutory PAYGO procedures so far have been unsuccessful, but calls to restore them may be renewed in the 111th Congress. The Senate has had its own PAYGO rule since 1993, while the House did not adopt its own PAYGO rule until 2007. The House PAYGO rule, which is Clause 10 of Rule XXI, was adopted on January 5, 2007, as part of the "opening-day" rules package (H.Res. 6). The Senate revised its PAYGO rule on May 17, 2007, as part of the conference agreement on the FY2008 budget Resolution (Section 201 of S.Con.Res. 21). Although there are differences in the two rules, they essentially are the same in their fundamental purpose-to discourage the consideration and enactment during a session of direct spending and revenue legislation that is not deficit neutral. Both rules prohibit the consideration of direct spending or revenue legislation that would cause or increase a deficit in either of two time periods: (1) a six-year period consisting of the current fiscal year, the budget year, and the four ensuing fiscal years; and (2) an 11-year period consisting of the current year, the budget year, and the ensuing nine fiscal years. Determinations regarding the cost of legislation for purposes of enforcing the PAYGO rule are made by the respective Budget Committee.

Notes:

Description based on publisher supplied metadata and other sources.