Congress' $1.83 trillion fiscal 2001 budget plan-approved just prior to the spring recess-contains nine different reserve funds for either tax cuts, debt relief or spending that together would set aside $5.5 billion in fiscal 2000 and at least $68.5 billion over the next five fiscal years.
Budget staffers said the reserve fund amounts are "built into" the resolution, so if they are tapped it would not increase spending or tax cuts beyond the budgeted amounts. The first three reserve funds address contingencies Congress expects to crop up later this year, while the remaining six set aside funds for specific uses that can be released only if Congress enacts the relevant authorizing legislation.
Reserve funds are set aside in case Congress fails to enact tax cuts, for which the budget provides $11.6 billion for fiscal 2001 and $150 billion over five years; fails to enact Medicare reform legislation, for which the budget devotes $2 billion in fiscal 2001 and $40 billion over five years; or if tax cut legislation is vetoed, those funds should go to paying down the publicly held debt.
The budget carves out another $1 billion for fiscal 2001 and $25 billion over five years for additional tax relief and debt reduction, if needed. And if the Congressional Budget Office this summer projects larger surpluses than currently forecast, the budget resolution directs the extra money to either tax cuts, or in the House, to reducing the publicly held debt.
Among the traditional reserve funds, the largest provides the money for Medicare reform and enactment of a prescription drug benefit, should the Senate Finance Committee or the House Ways and Means and Commerce committees write the necessary legislation. But only the agriculture reserve fund contains fiscal 2000 money, and therefore it is the fund most likely to be tapped. It designates $5.5 billion for disaster payments to farmers for fiscal 2000 and $1.64 billion in fiscal 2001, should the House and Senate Agriculture panels report out authorizing legislation by June 29.
The remaining reserve funds, from which money is less likely to be drawn, also dedicate money to other constituencies important to both parties. To supply home health care for children with disabilities, the budget designates $25 million for fiscal 2001 and $150 million over five years, pending legislation from the House Commerce or Senate Finance panels. Those two panels also must act to release $50 million for fiscal 2001 and $250 million over five years in a reserve fund for accelerated enrollment of uninsured children in the State Children's Health Insurance Program and to finance Medicaid coverage for women diagnosed with breast or cervical cancer through the CDC screening program.
Should either of the House or Senate Armed Services panels include the requisite language in the annual defense authorization bill, the budget devotes $50 million for fiscal 2001 and $400 million over five years for military retirees' health care.
And the budget reserves $200 million for fiscal 2001 and $1.1 billion over five years to provide regular federal payments for road and school system improvements to county governments whose jurisdictions include federal lands not subject to local taxation-provided authorizing legislation is drafted by the House Resources, House Agriculture or the Senate Energy and Natural Resources panels.