Fiscal Year 2012
The Budget Control Act Serves as the Budget for 2012 and 2013
The Budget Control Act states: “For the purpose of enforcing the Congressional Budget Act of 1974 through April 15, 2012 ... the allocations, aggregates, and levels set in subsection (b)(1) shall apply in the Senate in the same manner as for a concurrent resolution on the budget for fiscal year 2012.” In many ways, the Budget Control Act is even more extensive than a traditional budget resolution. Number one, it has the force of law, unlike a budget resolution that never goes to the President. A budget resolution is purely a Congressional document; the Budget Control Act is a law. Number two, it sets discretionary caps for 10 years, instead of the one year normally set in a budget resolution. Number three, it provides enforcement mechanisms, including two years of “deeming resolutions,” which allow budget points of order to be enforced. And fourth, it creates a reconciliation-like “Super Committee” process to address both entitlements and tax reform. And it backs that process up with a $1.2 trillion sequester.
Chairman Conrad's Floor Speech on Democratic Budget Framework (Jul. 11, 2011)
The budget framework provides $4 trillion in deficit reduction over 10 years. It is actually $5 trillion if measured on the same basis as the fiscal commission. It stabilizes the debt by 2014 and cuts the deficit to 2 1/2 percent of GDP by 2015 and 1.3 percent by 2021. It has tax reform that simplifies the code. It closes loopholes and goes after offshore tax havens and abusive tax shelters and restores fairness. The plan rejects the House GOP plan to end Medicare as we know it. The plan protects education, energy, and infrastructure investments. And it has a balanced deficit and debt reduction plan, cutting spending by about $2 trillion and providing additional revenue by about $2 trillion.