10-05-2002

BUDGET: Budget Process Rules Allowed to Expire

As the new fiscal year began on October 1, significant budget rules that
had been in place since 1990 expired, and there was no sign that either
chamber would renew them immediately. The most significant one to lapse
was the so-called "paygo" rule, which required that any increase
in entitlement spending or tax cuts be paid for by offsetting entitlement
cuts or tax increases. The rule had the most impact in the Senate, where
60 votes were required to waive it. It is possible-although not
probable-that without the rule in place, supporters of Medicare
prescription drug benefits could bring a bill to the Senate floor without
finding a way to pay for the new entitlement. Senate leaders have
discussed renewing the paygo rule for this year, but they have not yet
brought that proposal to the floor. In addition, the statutory requirement
that Congress set discretionary spending caps expired. Those caps have had
little meaning in recent years, as Congress has regularly exceeded them.
In the House, Budget Committee ranking member John M. Spratt Jr., D-S.C.,
introduced legislation this week to renew the budget rules.


David Baumann/National Journal

National Journal