Budget Enforcement Act of 1990
Encyclopedia
The Budget Enforcement Act of 1990 ' onMouseout='HidePop("15689")' href="/topics/United_States_Code">U.S.C.
& ) was enacted by the United States Congress as title XIII of the Omnibus Budget Reconciliation Act of 1990
to enforce the deficit reduction accomplished by that law and revise the budget control process of the Federal Government. The Act created two new budget control processes: a set of caps on annually-appropriated spending, and a "pay-as-you-go" or "PAYGO
" process for entitlements and taxes. The law departed from the fixed deficit targets of Gramm-Rudman-Hollings
, and imposed no penalty if the deficit for a given year grew outside the Office of Management and Budget "Snapshot" or deficit estimate, provided this budget growth was out of Congress' control.
From the Omnibus Budget Reconciliation Act of 1990
:
The act has since been extended several times, most recently with the Balanced Budget Act of 1997
. It expired in 2002, but the Democratic Majority adopted some of its principles, known as PAYGO
, or Pay-As-You-Go, in their rules during the 110th Congress. This was passed as H. RES. 6
on January 4, 2007.
President Obama enshrined some of these principles into law when he signed the Statutory Pay-As-You-Go Act of 2010 on February 12, 2010. Like the BEA, this law brought back the requirement that the Administration send up a Constitutionally valid sequester order to Congress if Congress increases mandatory spending or decreases taxes in a way that, on net, increases the deficit. However, like the 2007 House rule, this law was lacking in Gramm-Rudman's discretionary spending caps, and so was considerably less powerful as a check on appropriated discretionary spending.
United States Code
The Code of Laws of the United States of America is a compilation and codification of the general and permanent federal laws of the United States...
& ) was enacted by the United States Congress as title XIII of the Omnibus Budget Reconciliation Act of 1990
Omnibus Budget Reconciliation Act of 1990
The Omnibus Budget Reconciliation Act of 1990 is a United States statute enacted pursuant to the budget reconciliation process to reduce the United States federal budget deficit....
to enforce the deficit reduction accomplished by that law and revise the budget control process of the Federal Government. The Act created two new budget control processes: a set of caps on annually-appropriated spending, and a "pay-as-you-go" or "PAYGO
PAYGO
PAYGO is the practice in the United States of financing expenditures with funds that are currently available rather than borrowed.-Budgeting:The PAYGO compels new spending or tax changes not to add to the federal deficit. Not to be confused with pay-as-you-go financing, which is when a government...
" process for entitlements and taxes. The law departed from the fixed deficit targets of Gramm-Rudman-Hollings
Gramm-Rudman-Hollings Balanced Budget Act
The Gramm-Rudman-Hollings Balanced Budget and Emergency Deficit Control Act of 1985 and Budget and Emergency Deficit Control Reaffirmation Act of 1987 were, according to U.S...
, and imposed no penalty if the deficit for a given year grew outside the Office of Management and Budget "Snapshot" or deficit estimate, provided this budget growth was out of Congress' control.
From the Omnibus Budget Reconciliation Act of 1990
Omnibus Budget Reconciliation Act of 1990
The Omnibus Budget Reconciliation Act of 1990 is a United States statute enacted pursuant to the budget reconciliation process to reduce the United States federal budget deficit....
:
The act has since been extended several times, most recently with the Balanced Budget Act of 1997
Balanced Budget Act of 1997
The Balanced Budget Act of 1997, , was signed into law on August 5, 1997. It was an omnibus legislative package enacted using the budget reconciliation process and designed to balance the federal budget by 2002....
. It expired in 2002, but the Democratic Majority adopted some of its principles, known as PAYGO
PAYGO
PAYGO is the practice in the United States of financing expenditures with funds that are currently available rather than borrowed.-Budgeting:The PAYGO compels new spending or tax changes not to add to the federal deficit. Not to be confused with pay-as-you-go financing, which is when a government...
, or Pay-As-You-Go, in their rules during the 110th Congress. This was passed as H. RES. 6
on January 4, 2007.
President Obama enshrined some of these principles into law when he signed the Statutory Pay-As-You-Go Act of 2010 on February 12, 2010. Like the BEA, this law brought back the requirement that the Administration send up a Constitutionally valid sequester order to Congress if Congress increases mandatory spending or decreases taxes in a way that, on net, increases the deficit. However, like the 2007 House rule, this law was lacking in Gramm-Rudman's discretionary spending caps, and so was considerably less powerful as a check on appropriated discretionary spending.
Further reading
- Dauster, William G. Budget Process Law Annotated: 1993 Edition. Washington, D.C.: Government Printing OfficeUnited States Government Printing OfficeThe United States Government Printing Office is an agency of the legislative branch of the United States federal government. The office prints documents produced by and for the federal government, including the Supreme Court, the Congress, the Executive Office of the President, executive...
, 1993. ISBN 0-16-041726-0