text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Common Sense Spending Act of 2005''.
  
  SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS.
  
      (a) Adjustments to Discretionary Spending Limits.--In the matter 
  that precedes subparagraph (A) of section 251(b)(2) of the Balanced 
  Budget and Emergency Deficit Control Act of 1985, strike ``through 
  2002''.
      (b) Discretionary Spending Limit.--Section 251(c) of the Balanced 
  Budget and Emergency Deficit Control Act of 1985 is amended as follows:
              (1) Strike paragraphs (1) through (16) and insert the 
          following new paragraphs:
              ``(1) with respect to fiscal year 2006, for the 
          discretionary category: $837,196,960,000 in total new budget 
          authority of which not less than $434,139,940,000 shall be for 
          the defense category and of which not less than $32,180,020,000 
          shall be for homeland security activities outside of the 
          defense category and $906,352,000,000 in total outlays of which 
          not less than $439,419,000,000 shall be for the defense 
          category and of which not less than $30,854,000,000 in total 
          outlays shall be for the homeland security category outside of 
          the defense category;
              ``(2) with respect to fiscal year 2007, for the 
          discretionary category: an amount of new budget authority equal 
          to the amount of total new budget authority specified in 
          paragraph (1) adjusted to reflect the change in Consumer Price 
          Index over the previous 12 months prior to October 1, 2005;
              ``(3) with respect to fiscal year 2008, for the 
          discretionary category: an amount of new budget authority equal 
          to the amount of total new budget authority provided under 
          paragraph (2) adjusted to reflect the change in Consumer Price 
          Index over the previous 12 months prior to October 1, 2006;
              ``(4) with respect to fiscal year 2009, for the 
          discretionary category: an amount of new budget authority equal 
          to the amount of total new budget authority specified in 
          paragraph (3) adjusted to reflect the change in Consumer Price 
          Index over the previous 12 months prior to October 1, 2007; and
              ``(5) with respect to fiscal year 2010, for the 
          discretionary category: an amount of new budget authority equal 
          to the amount of total new budget authority specified in 
          paragraph (4) adjusted to reflect the change in Consumer Price 
          Index over the previous 12 months prior to October 1, 2008;''.
      (c) Adjustments to Discretionary Spending Limits.--
              (1) Section 251(b)(2) of the Balanced Budget and Emergency 
          Deficit Control Act of 1985 is amended by striking 
          subparagraphs (C) through (H) and by inserting after 
          subparagraph (B) the following new subparagraph:
                      ``(C) Accrual accounting.--If a bill or joint 
                  resolution is enacted that charges Federal agencies for 
                  the full cost of accrued Federal retirement and health 
                  benefits and a bill or joint resolution making 
                  appropriations is enacted that provides new budget 
                  authority to carry out the legislation charging Federal 
                  agencies for such accrued costs, the adjustment shall 
                  be equal to the reduction in mandatory budget authority 
                  and the outlays flowing therefrom estimated to result 
                  from the legislation charging Federal agencies for such 
                  accrued costs.''.
              (2) Section 251(b)(2)(A) of the Balanced Budget and 
          Emergency Deficit Control Act of 1985 is amended by striking 
          the last sentence.
      (d) Definition of Consumer Price Index.--Section 3 of the 
  Congressional Budget and Impoundment Control Act of 1974 is amended by 
  adding at the end the following new paragraph:
              ``(11) The term `Consumer Price Index' refers to the 
          Consumer Price Index for All Urban Consumers (all items; United 
          States city average), published by the Bureau of Labor 
          Statistics.''.
  
  SEC. 3. EXTENSION OF PAY-AS-YOU-GO.
  
      Section 252 of the Balanced Budget and Emergency Deficit Control 
  Act of 1985 is amended to read as follows:
  
  ``SEC. 252. ENFORCING PAY-AS-YOU-GO.
  
      ``(a) Purpose.--The purpose of this section is to assure that any 
  legislation enacted before October 1, 2010, affecting direct spending 
  that increases the deficit will trigger an offsetting sequestration.
      ``(b) Sequestration.--
              ``(1) Timing.--Not later than 15 calendar days after the 
          date Congress adjourns to end a session and on the same day as 
          a sequestration (if any) under section 251, there shall be a 
          sequestration to offset the amount of any net deficit increase 
          caused by all direct spending legislation enacted before 
          October 1, 2010, as calculated under paragraph (2).
              ``(2) Calculation of deficit increase.--OMB shall calculate 
          the amount of deficit increase or decrease by adding--
                      ``(A) all OMB estimates for the budget year of 
                  direct spending legislation transmitted under 
                  subsection (d);
                      ``(B) the estimated amount of savings in direct 
                  spending programs applicable to budget year resulting 
                  from the prior year's sequestration under this section 
                  or, if any, as published in OMB's final sequestration 
                  report for that prior year; and
                      ``(C) any net deficit increase or decrease in the 
                  current year resulting from all OMB estimates for the 
                  current year of direct spending legislation transmitted 
                  under subsection (d) of this section that were not 
                  reflected in the final OMB sequestration report for the 
                  current year.
                      ``(D) for fiscal year 2005, before making the 
                  calculations required in subparagraphs (A) through (C), 
                  OMB shall assume an automatic deficit increase of 
                  $8,400,000,000.
      ``(c) Eliminating a Deficit Increase.--(1) The amount required to 
  be sequestered in a fiscal year under subsection (b) shall be obtained 
  from non-exempt direct spending accounts from actions taken in the 
  following order:
                      ``(A) First.--All reductions in automatic spending 
                  increases specified in section 256(a) shall be made.
                      ``(B) Second.--If additional reductions in direct 
                  spending accounts are required to be made, the maximum 
                  reductions permissible under sections 256(b) 
                  (guaranteed and direct student loans) and 256(c) 
                  (foster care and adoption assistance) shall be made.
                      ``(C) Third.--(i) If additional reductions in 
                  direct spending accounts are required to be made, each 
                  remaining non-exempt direct spending account shall be 
                  reduced by the uniform percentage necessary to make the 
                  reductions in direct spending required by paragraph 
                  (1); except that the medicare programs specified in 
                  section 256(d) shall not be reduced by more than 4 
                  percent and the uniform percentage applicable to all 
                  other direct spending programs under this paragraph 
                  shall be increased (if necessary) to a level sufficient 
                  to achieve the required reduction in direct spending.
                      ``(ii) For purposes of determining reductions under 
                  clause (i), outlay reductions (as a result of 
                  sequestration of Commodity Credit Corporation commodity 
                  price support contracts in the fiscal year of a 
                  sequestration) that would occur in the following fiscal 
                  year shall be credited as outlay reductions in the 
                  fiscal year of the sequestration.
              ``(2) For purposes of this subsection, accounts shall be 
          assumed to be at the level in the baseline for fiscal year 2006 
          and for fiscal years 2007 through 2010 at the baseline after 
          adjusting for any sequester in fiscal year 2005.
      ``(d) Estimates.--
              ``(1) CBO estimates.--As soon as practicable after Congress 
          completes action on any direct spending, CBO shall provide an 
          estimate to OMB of that legislation.
              ``(2) OMB estimates.--Not later than 7 calendar days 
          (excluding Saturdays, Sundays, and legal holidays) after the 
          date of enactment of any direct spending, OMB shall transmit a 
          report to the House of Representatives and to the Senate 
          containing--
                      ``(A) the CBO estimate of that legislation;
                      ``(B) an OMB estimate of that legislation using 
                  current economic and technical assumptions; and
                      ``(C) an explanation of any difference between the 
                  2 estimates.
              ``(3) Significant differences.--If during the preparation 
          of the report under paragraph (2) OMB determines that there is 
          a significant difference between the OMB and CBO estimates, OMB 
          shall consult with the Committees on the Budget of the House of 
          Representatives and the Senate regarding that difference and 
          that consultation, to the extent practicable, shall include 
          written communication to such committees that affords such 
          committees the opportunity to comment before the issuance of 
          that report.
              ``(4) Scope of estimates.--The estimates under this section 
          shall include the amount of change in outlays for the current 
          year (if applicable), the budget year, and each outyear 
          excluding any amounts resulting from--
                      ``(A) full funding of, and continuation of, the 
                  deposit insurance guarantee commitment in effect under 
                  current estimates; and
                      ``(B) emergency provisions as designated under 
                  subsection (e).
              ``(5) Scorekeeping guidelines.--OMB and CBO, after 
          consultation with each other and the Committees on the Budget 
          of the House of Representatives and the Senate, shall--
                      ``(A) determine common scorekeeping guidelines; and
                      ``(B) in conformance with such guidelines, prepare 
                  estimates under this section.
      ``(e) Emergency Legislation.--If a provision of direct spending 
  legislation is enacted that the President designates as an emergency 
  requirement and that the Congress so designates in statute, the amounts 
  of new budget authority, outlays, and receipts in all fiscal years 
  resulting from that provision shall be designated as an emergency 
  requirement in the reports required under subsection (d) of this 
  section.''.
  
  SEC. 4. CONFORMING AMENDMENTS.
  
      (a) Expiration.--(1) Section 254(c)(2) of the Balanced Budget and 
  Emergency Deficit Control Act of 1985 is amended by striking ``2002'' 
  and inserting ``2010''.
      (2) Section 254(f)(2)(A) of the Balanced Budget and Emergency 
  Deficit Control Act of 1985 is amended by striking ``2002'' and 
  inserting ``2010''.
      (b) Expiration.--Section 275(b) of the Balanced Budget and 
  Emergency Deficit Control Act of 1985 is amended by striking ``2002'' 
  and inserting ``2010''.
  
  SEC. 5. EMERGENCY SPENDING LEGISLATION AND THE BASELINE.
  
      (a) In General.--Section 257(a) of the Balanced Budget and 
  Emergency Deficit Control Act of 1985 is amended by inserting ``, 
  except for emergency appropriations covered by section 251(b)(2)(A) and 
  emergency legislation covered by section 252(e)'' before the period.
      (b) Direct Spending and Receipts.--Section 257(b)(2) of the 
  Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
  adding at the end the following new subparagraph:
                      ``(E) Emergency legislation covered by section 
                  252(e) shall not be extended in the baseline.''.
      (c) Discretionary Appropriations.--Section 257(c) of the Balanced 
  Budget and Emergency Deficit Control Act of 1985 is amended by adding 
  at the end the following new paragraph:
              ``(7) Emergency appropriations covered by section 
          251(b)(2)(A) shall not be extended in the baseline.''.
  
  SEC. 6. OMB EMERGENCY CRITERIA.
  
      (a) Definition of Emergency.--Section 3 of the Congressional Budget 
  and Impoundment Control Act of 1974 (as amended by section 2(d) is 
  further amended by adding at the end the following new paragraph:
              ``(12)(A) The term `emergency' means a situation that--
                      ``(i) requires new budget authority and outlays (or 
                  new budget authority and the outlays flowing therefrom) 
                  for the prevention or mitigation of, or response to, 
                  loss of life or property, or a threat to national 
                  security; and
                      ``(ii) is unanticipated.
              ``(B) As used in subparagraph (A), the term `unanticipated' 
          means that the underlying situation is--
                      ``(i) sudden, which means quickly coming into being 
                  or not building up over time;
                      ``(ii) urgent, which means a pressing and 
                  compelling need requiring immediate action;
                      ``(iii) unforeseen, which means not predicted or 
                  anticipated as an emerging need; and
                      ``(iv) temporary, which means not of a permanent 
                  duration.''.
      (b) Conforming Amendment.--Section 250(c) of the Balanced Budget 
  and Emergency Deficit Control Act of 1985 is amended by adding at the 
  end the following new paragraph:
              ``(20) The term `emergency' has the meaning given to such 
          term in section 3 of the Congressional Budget and Impoundment 
          Control Act of 1974.''.
  
  SEC. 7. RULE RESPECTING DESIGNATION OF LEGISLATIVE PROVISION AS AN 
                EMERGENCY.
  
      (a) In General.--Title III of the Congressional Budget Act of 1974 
  is amended by adding at the end the following new section:
  
   ``rule respecting designation of legislative provision as an emergency
  
      ``Sec. 316. (a) Guidance.--In making a designation of a provision 
  of legislation as an emergency requirement under section 251(b)(2)(A) 
  or 252(e) of the Balanced Budget and Emergency Deficit Control Act of 
  1985, the committee report and any statement of managers accompanying 
  that legislation shall analyze whether a proposed emergency requirement 
  meets the definition of an `emergency' set out in section 3 of the 
  Congressional Budget and Impoundment Control Act of 1974.
      ``(b) In General.--It shall not be in order in the Senate or the 
  House of Representatives to consider any bill, joint resolution, or 
  conference report that contains an emergency designation under section 
  251(b)(2)(A) or 252(e) of the Balanced Budget and Emergency Deficit 
  Control Act of 1985 unless the proposed emergency requirement meets the 
  definition of an `emergency' set out in section 3 of the Congressional 
  Budget and Impoundment Control Act of 1974.
      ``(c) Waiver and Appeal in the Senate.--This section may be waived 
  or suspended in the Senate only by an affirmative vote of three-fifths 
  of the Members, duly chosen and sworn. An affirmative vote of three-
  fifths of the Members of the Senate, duly chosen and sworn, shall be 
  required in the Senate to sustain an appeal of the ruling of the Chair 
  on a point of order raised under this section.
      ``(d) Enforcement in the House of Representatives.--It shall not be 
  in order in the House of Representatives to consider a rule or order 
  that waives the application of subsection (b).
      ``(e) Disposition of Points of Order in the House.--As disposition 
  of a point of order under subsection (b) or subsection (d), the Chair 
  shall put the question of consideration with respect to the proposition 
  that is the subject of the point of order. A question of consideration 
  under this section shall be debatable for 10 minutes by the Member 
  initiating the point of order and for 10 minutes by an opponent of the 
  point of order, but shall otherwise be decided without intervening 
  motion except one that the House adjourn or that the Committee of the 
  Whole rise, as the case may be.
      ``(f) Effect on Amendment in Order as Original Text in the House.--
  The disposition of the question of consideration under this section 
  with respect to a bill or joint resolution shall be considered also to 
  determine the question of consideration under this subsection with 
  respect to an amendment made in order as original text.''.
      (b) Conforming Amendment.--The table of contents set forth in 
  section 1(b) of the Congressional Budget and Impoundment Control Act of 
  1974 is amended by inserting after the item relating to section 315 the 
  following new item:
  
  ``Sec. 316. Rule respecting designation of legislative provision as an 
                              emergency.''.
target: Common Sense Spending Act of 2005 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to extend discretionary spending limits through FY 2010.
  
  Repeals requirements for inclusion in a sequestration report of adjustments to discretionary limits for: (1) continuing disability reviews by the Social Security Administration; (2) specified allowances for the International Monetary Fund and international arrearages; (3) any earned income tax credit compliance initiative; (4) adoption incentive payments; and (5) conservation spending. Requires an adjustment to discretionary spending limits equal to the estimated resulting reduction in mandatory budget authority and outlays utilizing accrual methods, if enacted legislation charges Federal agencies for the full cost of accrued Federal retirement and health benefits, and an appropriations Act provides new budget authority to carry out such legislation. Revises PAYGO requirements to remove receipts from the requirement that any legislation enacted before FY 2011 affecting direct spending (currently, direct spending and receipts) that increases the deficit will trigger an offsetting sequestration. Revises the formula for calculating the amount of deficit increase or decrease by the Office of Management and Budget (OMB). Requires OMB to assume an automatic deficit increase of $8.4 billion before making such calculations for FY 2005. States that, with respect to eliminating a deficit increase, accounts shall be assumed to be at the level in the baseline for FY 2006 and for FY 2007 through 2010 at the baseline after adjusting for any sequester in FY 2005.
  
  Revises the definition of baseline to exclude emergency appropriations and legislation.
  
  Prohibits such emergency appropriations from being extended in the baseline.
  
  
  
  Amends the Congressional Budget Act of 1974 to require that the committee report and any statement of managers accompanying proposed legislation analyze whether a proposed emergency requirement meets a specified definition of "emergency." Prohibits the consideration of any such legislation that does not meet this "emergency" definition.
feat_title: To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to extend the discretionary spending limits through fiscal year 2010, to extend paygo for direct spending, and for other purposes.