Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987

Increases the public debt limit to $2,800,000,000,000.

Title I: Deficit Reduction Procedures - Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to revise the sequestration procedures.

Requires that the sequestration reports of the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) include estimates of the net deficit reductions made for the fiscal year.

Requires the Director of OMB to identify and explain any differences between OMB and CBO estimates regarding: (1) the aggregate amount of required outlay reductions; (2) the aggregate amount of resources to be sequestered from defense accounts; and (3) the amount of sequesterable resources for any budget account that is to be reduced, if such difference is greater than $5,000,000.

Describes the methods to be used by the Director of OMB to calculate: (1) the amount of reductions in budgetary resources; (2) the aggregate outlay rate for defense programs; (3) the amount of outlays estimated for health insurance programs under title XVIII (Medicare) of the Social Security Act; and (4) the excess deficit.

Modifies the procedures with regard to the use of economic assumptions, budgetary resource-outlay ratios, and other assumptions for the purpose of calculating the baseline.

Sets forth the aggregate amount of outlay reductions required for FY 1988 through 1993. Places caps on the maximum amount of aggregate required outlay reductions for FY 1988 and 1989.

Extends presidential discretion with respect to exempting military personnel accounts from sequestration and modifying funding for specific defense programs, projects, and activities.

Requires the President to issue any necessary initial sequestration order on August 25 (currently, September 1). Requires the President's initial and final sequestration orders to be in accordance with the initial and revised OMB (currently, GAO) reports.

Establishes a special rule concerning the reduction of payments under Medicare.

Establishes special sequestration procedures for national defense. Extends presidential discretion with respect to exempting military personnel accounts from sequestration and modifying funding for specific defense programs, projects, and activities to all fiscal years covered by the revised timeframe (FY 1988-1993). Prohibits the closing of domestic military bases. Eliminates the President's option to modify or terminate existing defense contracts.

Modifies the provisions dealing with the GAO compliance report to require that the Comptroller General: (1) assess whether the OMB's sequestration reports comply with the requirements of the Congressional Budget Act of 1974; and (2) make recommendations for improving sequestration procedures.

Lists additional exempted programs and activities.

Provides an expedited procedure for congressional action to cancel or modify a presidential sequestration order.

Revises the maximum deficit amounts for FY 1988 through 1993.

Freezes certain Medicare payment provisions.

Title II: Budget Process Reform - Expresses the sense of the Congress calling for the adoption of legislation that will experiment with multiyear authorizations and two-year appropriations for selected agencies and accounts.

States that transfers of Government actions from one fiscal year to another shall not be counted as savings for the purposes of the Congressional Budget and Impoundment Control Act of 1974 and the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings), with specified exemptions.

Expresses the sense of the Congress calling for legislation to reform the financial management of the Government.

Repeals the expiration date of the State and Local Government Cost Estimate Act of 1981.

Permits budget deferrals only: (1) to provide for contingencies; (2) to achieve savings made possible through changes in requirements or greater efficiency; or (3) as specifically provided by law. States that a deferral may not be proposed for any period extending beyond the fiscal year in which the proposal is reported. Describes the content of any special message proposing such a deferral.

Requires an affirmative vote of three-fifths of the Senate membership to sustain an appeal of the ruling of the Chair on a point or order under provisions of the Congressional Budget Act of 1974.

Limits the President to one rescission proposal a year regarding substantially the same budget authority.

Prohibits the Senate from considering any concurrent resolution on the budget that sets forth amounts and levels that are determined on the basis of more than one set of economic and technical assumptions. Requires the joint explanatory statement accompanying a conference report on a concurrent resolution on the budget to set forth the common economic assumptions upon which such statement and report are based.

Directs CBO to study and report to all congressional committees of appropriate jurisdiction on Federal direct loan and loan guarantee programs for FY 1987 and 1988, including specified information on the cost of credit programs.