About the Senate Budget Process Rules

One reason the nonprofit community was able to stop permanent repeal of the estate tax is that Sen. Phil Gramm (R-TX) needed 60 votes in the Senate, rather than just a "simple majority" of 51 votes. With the expiration of key Senate budget rules on October 1, however, the Senate may lose this key feature that helped earn it the title of "the world’s greatest deliberative body."

One reason the nonprofit community was able to stop permanent repeal of the estate tax is that Sen. Phil Gramm (R-TX) needed 60 votes in the Senate, rather than just a "simple majority" of 51 votes. With the expiration of key Senate budget rules on October 1, however, the Senate may lose this key feature that helped earn it the title of "the world’s greatest deliberative body."

One reason the nonprofit community was able to stop permanent repeal of the estate tax is that Sen. Phil Gramm (R-TX) needed 60 votes in the Senate, rather than just a "simple majority" of 51 votes. With the expiration of key Senate budget rules on October 1, however, the Senate may lose this key feature that helped earn it the title of "the world’s greatest deliberative body."

Unless the Senate takes action, some of the rules governing Senate budget procedures, including this 60-vote requirement (called a "supermajority" to distinguish it from the "simple majority") on certain issues, will expire October 1, 2002. In addition to helping to ensure that proposed tax cut legislation are debated thoroughly, the supermajority rule has kept the appropriations bills from becoming bogged down in unrelated amendments, while allowing for debate about the spending priorities of the country. (For a complete list of just how much of the Senate’s work is affected by these budget rules, see the list below.)

As with any budget procedure, there are advantages and disadvantages to the legislation recently proposed to preserve these budget rules. While OMB Watch has long opposed budget caps, we support the supermajority point of order provisions. However, any measure to renew the point of order provisions will also carry with it the renewal of budget caps. Sens. Kent Conrad (D-ND) and Russ Feingold (D-WI) offered an amendment to a defense authorization bill to reinstate the expiring budget rules. It needed 60 votes for passage but failed by one vote on June 20. The Bush Administration opposed the amendment because of concern over the size of the budget caps; the Administration wanted the caps $9 billion lower than what was identified in the proposal. Conrad has been working on another attempt to extend the budget rules beyond October 1 and it is expected that he and the bill’s other co-sponsors will try to bring their amendment to the floor in September and are looking at what vehicles would be appropriate.

Below are highlights of what would change if the budget rules were not renewed – probably more than you ever wanted to know about budget rules!

As of October 1, 2002, the following 60-vote points of order requirement can be waived with only a simple majority vote:

  • Against a reconciliation bill (which cannot be filibustered) that would change Social Security;

  • Against a budget resolution or other legislation that would reduce Social Security surpluses;

  • Against legislation that would cut taxes below the revenue floors in the most recent budget resolution;

  • Against legislation that would increase total spending above the levels in the most recent budget resolution; and

  • Against legislation that would exceed an authorizing committee’s spending allocation or an Appropriations subcommittee’s spending allocation.

As of October 1, the following provisions and points of order expire altogether:

  • The discretionary spending caps;

  • The provision allowing Congress and the President to designate items of discretionary spending as emergency requirements;

  • The pay-as-you-go rule in the Senate, which is a 60-vote point of order against mandatory spending or tax cuts that would worsen the deficit;

  • Pay-as-you-go sequestration, under which mandatory spending and tax cuts that increase the deficit trigger across-the-board cuts in mandatory spending at the end of the fiscal year (note: sequestration continues until the end of fiscal year 2006, but only for legislation enacted through September 30, 2002);

  • Requirements that the President’s budget comply with the discretionary spending caps and pay-as-you-go; and

  • The 60-vote point of order against legislation that would exceed the cap on appropriating funds for next year in the current fiscal year (“advance appropriations”).

The following supermajority points of order are permanent and do not expire:

  • The 60-vote point of order against considering legislation in the Budget Committee’s jurisdiction that has not been reported by the Budget Committee;

  • The 60-vote point of order against amendments to a budget resolution or reconciliation that are nongermane to the bill; and

  • The 60-vote “Byrd rule” point of order, which allows provisions to be stricken from a reconciliation bill if they violate the reconciliation instructions; increase spending or cut taxes beyond the years covered by the budget resolution; change Social Security; are in another committee’s jurisdiction; make no changes in spending or taxes; or produce spending or tax effects that are merely incidental.

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