I spent a big part of my evening reading and trying to understand the compromise bill that raised the debt ceiling.  As I read it, it occurred to me that the whole point was to put it on auto-pilot. Either the committee decides on a budget or the auto-pilot clicks on. The bill is difficult to read because it amends two other, previously passed bills, so the entire scope cannot be understood without reading the other two bills, which I did not do. The amended bills are: Balanced Budget and Emergency Deficit Control Act of 1985 and the Congressional Budget and Impoundment Control Act of 1974.

There were several points that I noted as important:

There are two categories of appropriations, each with their own limits.

·         Security Category = Department of Defense, Department of Homeland Security, Department of Veterans Affairs, National Nuclear Security Administration, intelligence community management account (95-0401-0-1-054) and international affairs.

·         Discretionary Category = “all discretionary appropriations.”

The definition of “emergency” was carefully rewritten to be something that requires funding to prevent the loss of life or property or a threat to national security, either of which is unanticipated.

The president can amend the debt ceiling on his own in a bizarre process called the “Debt Ceiling Disapproval Process”

·         First the President certifies that the debt is within $100,000,000,000 of reaching the limit.

·         The next step is confusing to me: “the Secretary of the Treasury may exercise authority to borrow an additional $900,000,000,000“unless a resolution of disapproval is enacted. “Upon submission of such certification, the limit on debt is increased by $400,000,000,000.

·         If Congress fails to enact a joint resolution of disapproval, the debt limit is increased by an additional $500,000,000,000.  (Clearly the numbers add up, but I’m just not sure I understand this process correctly.)

·         If the debt ceiling is raised, and additional borrowing is needed, there may be additional joint resolutions of disapproval increasing the ceiling by an additional $1,200,000,000,000; or $1,500,000,000,000 if there is a balanced budget amendment pending in the states for ratification.

There is an adjustment for Medicare, which seems to be limited to 2% in each fiscal year.

Subsidized Pell Grants for graduate and professional students are terminated.

A Joint Select Committee on Deficit Reduction is established, with a goal of reducing the deficit by at least $1,500,000,000 by 2021. Three members appointed by the majority leader of the Senate, the minority leader of the Senate, the Speaker, and the minority of the House (12 total.) There are Co-Chairs appointed by the Speaker and the majority leader in the Senate. Seven members = a quorum.

Time Line

14 Days from today Co-Chairs and committee members must be appointed. (Good luck on that one, since they went on vacation until after Labor Day.)

Within 45 Days from today: initial meeting of committee.

On September 6, 7, 8, or 9, 2011 any certification submitted will result in a joint resolution, which may only contain the following specific language: “Joint resolution relating to the disapproval of the President’s exercise of authority to increase the debt limit, as submitted under Section 3101A of title 31, United States Code, on (date.)” and “That Congress disapproves of the President’s exercise of authority to increase the debt limit as exercised pursuant to the certification under section 3101A(a) of title 31, United States Code.”

Congress has 7 days to pass said joint resolution, without amendment or much debate.

October 14, 2011 = deadline for House and Senate to communicate to the joint committee any changes required in law to reduce the deficit consistent with the goal.

November 23, 2011 = deadline for a vote by the joint committee on its recommendations and proposed legislative language.

December 2, 2011 = deadline to submit recommendations and proposed legislative language to President, Vice President, Speaker of the House, and majority and minority Leaders of each house.

December 9, 2011 = deadline to submit a joint committee bill to the Senate. (and House, I think.)

December 23, 2011 = deadline to vote on passage of joint committee bill.

January 15, 2012 = deadline to pass a bill achieving $1,200,000,000,000 in deficit reduction.

January 31, 2012 = termination of joint committee.

By April 15, 2012;

·         all committees need to report their allocations, aggregate spending levels, and levels of Social Security revenues and outlays.

·         The Senate paygo scorecard needs to be reset to zero.

By 12/31/2011

·         House and Senate “shall vote on passage of a  … balanced budget amendment to the Constitution of the United States.”

·         Seven days after receipt the House and Senate will vote on any balanced budget amendment.

Revised Spending Limits

2013: Security $546,000,000,000; Nonsecurity $501,000,000,000 (interesting that the language is not the same as in the definitions section—I would have expected this to be called “discretionary”)

2014: Security $556,000,000,000; Nonsecurity $510,000,000,000

2015: Security $566,000,000,000; Nonsecurity $520,000,000,000

2016: Security $577,000,000,000; Nonsecurity $530,000,000,000

2017: Security $590,000,000,000; Nonsecurity $541,000,000,000

2018: Security $603,000,000,000; Nonsecurity $553,000,000,000

2019: Security $616,000,000,000; Nonsecurity $566,000,000,000

2020: Security $630,000,000,000; Nonsecurity $578,000,000,000

2021: Security $644,000,000,000; Nonsecurity $590,000,000,000

Homework:

Budget Control Act of 2011