CBO ANALYSIS OF AUGUST 1 BUDGET CONTROL ACT
"The Congressional Budget Office (CBO) has estimated the impact on the deficit of the Budget Control Act of 2011, as posted on the Web site of the House Committee on Rules on August 1, 2011. The legislation would:

Establish caps on discretionary spending through 2021;
Allow for certain amounts of additional spending for "program integrity" initiatives aimed at reducing the amount of improper benefit payments;

Make changes to the Pell Grant and student loan programs;

Require that the House of Representatives and the Senate vote on a joint resolution proposing a balanced budget amendment to the Constitution;

Establish a procedure to increase the debt limit by $400 billion initially and procedures that would allow the limit to be raised further in two additional steps, for a cumulative increase of between $2.1 trillion and $2.4 trillion;

Reinstate and modify certain budget process rules;

Create a Congressional Joint Select Committee on Deficit Reduction to propose further deficit reduction, with a stated goal of achieving at least $1.5 trillion in budgetary savings over 10 years; and

Establish automatic procedures for reducing spending by as much as $1.2 trillion if legislation originating with the new joint select committee does not achieve such savings..."