SENATOR JOHN THUNE'S
COMMON SENSE BUDGET PLAN

Part I: Eliminating Wasteful Spending

Discretionary Spending Caps Establishes binding spending caps for all non-defense, non-veteran, non-homeland security discretionary spending from 2011 to 2020 at Fiscal-Year 2008 levels.
Stop Stimulus Spending Ends unobligated stimulus spending on September 30, 2010. Stimulus tax provisions would be allowed to expire on December 31, 2010, as enacted by the stimulus bill.

Part II: Budget Reform

Improving PAYGO and Trust Fund Accounting This provision would end the practice of double counting spending reductions and revenue increases in spending legislation. Binding Federal Budget Reforms the budget process by requiring a binding joint budget resolution. Since the joint resolution would have to be signed into law, the Administration and Congress would be forced to work more closely on the joint budget resolution, and Congress would have less flexibility to violate budget restraints on federal spending. Biennial Budget Establishes a biennial budget. In odd numbered years, Congress would pass a two-year budget. In even numbered years, Congress would pass two-year appropriation bills. This process would give Congress more time for oversight of government spending. Congress has only completed all of the annual appropriation bills on time in four of the last 34 years, and this year Congress didn’t even pass a budget. Legislative Line-Item Veto Creates a legislative line-item veto. The President may propose to Congress a cancellation of any discretionary spending item, direct spending item, limited tariff benefit or targeted tax benefit contained within a bill or joint resolution. Upon Congressional approval, any cancellations must be applied to reducing the deficit.

Part III: New Joint Committee on Deficit Reduction

Standing Joint Committee of Congress on Deficit Reduction Creates a permanent Joint Committee on Deficit Reduction composed of a bipartisan group of 20 members—10 from the House of Representatives and 10 from the Senate. Every other year, the new Joint Committee must introduce legislation that eliminates or reduces spending on wasteful government programs and achieves a savings of at least 10 percent of the previous year’s budget deficit. The legislation to reduce spending or wasteful programs would receive expedited consideration in the House and Senate. All the committees in Congress are currently dedicated to spending money. This would create a committee dedicated to cutting wasteful spending.

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