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• <br /> 004 <br /> THE 1985 BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT <br /> CRAMM-RUDMAN-HOLLINGS <br /> I. WHAT IS GRAMM-RUDMAN-HOLLINGS (G-R-H) ? <br /> A. PUBLIC LAW (P.L. 99-177) <br /> 1. SIGNED BY PRESIDENT REAGAN ON DECEMBER 12, 1985 <br /> B. LEGISLATION AIMED AT REDUCING CURP.ENT FEDERAL DEFICIT FROM APPROXIMATELY <br /> $200 BILLION TO $ 0 BY FEDERAL FISCAL YEAR 1991 <br /> II. WHY WAS G-R-H ENACTED? <br /> A. RECENT SURGE IN FEDERAL DEFICIT <br /> 1. FROM $78.9 BILLION IN FISCAL YEAR 1981 TO $200 BILLION IN FISCAL YEAR 1986 <br /> 2. SPENDING $4 FOR EVERY $3 TAKEN IN <br /> B. CONGRESSIONAL FRUSTRATION IN DEALING WITH DEFICIT <br /> III. HOW DOES G-R-H WORK? <br /> A. MANDATES SPECIFIC DEFICIT TARGETS <br /> FY 1986 FY 1987 FY 1988 <br /> $171.9 BILLION $144 BILLION $108 BILLION <br /> FY 1989 FY 1990 FY 1991 <br /> $72 BILLION $36 BILLION - $ 0 <br /> B. PROVIDES 2 ALTERNATIVE METHODS TO REACH MANDATED DEFICIT TARGETS <br /> 1. REVISED CONGRESSIONAL BUDGET PROCESS <br /> 2. SEQUESTRATION <br />