Common Sense Spending Act of 2004 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to extend the discretionary spending limits through FY 2009, with adjustments for inflation each year starting FY 2006.
Provides that if a bill or joint resolution is enacted that charges Federal agencies for the full cost of accrued Federal retirement and health benefits, and a bill or joint resolution making appropriations is enacted that provides new budget authority to carry out such legislation, the adjustment shall be equal to the reduction in mandatory budget authority and the outlays flowing therefrom estimated to result from the legislation.
Repeals the exemption of appropriations to cover agricultural crop disaster assistance from the application of mandatory adjustments in discretionary spending limits in a sequestration report and subsequent budgets for emergency appropriations for discretionary accounts. (Thus applies such mandatory adjustments in the total amount of emergency appropriations to appropriations covering agricultural crop disaster assistance.)
Revises PAYGO requirements to remove receipts from the requirement that any legislation enacted before FY 2009 affecting direct spending (currently, direct spending and receipts) that increases the deficit will trigger an offsetting sequestration. Revises the formula for calculating the amount of deficit increase or decrease by the Office of Management and Budget (OMB) to require OMB, before making such calculations for FY 2005, to assume an automatic deficit increase of $7.4 billion.
States that, with respect to eliminating a deficit increase, accounts shall be assumed to be at the level in the baseline for FY 2005 and for FY 2006 through 2009 at the baseline after adjusting for any sequester in FY 2005.
Revises the definition of baseline to exclude emergency appropriations and legislation.
Prohibits such emergency appropriations from being extended in the baseline.
Amends the Congressional Budget and Impoundment Control Act of 1974 to define: (1) "emergency" as an unanticipated situation that requires new budget authority and outlays (or new budget authority and the outlays flowing therefrom) for the prevention or mitigation of, or response to, loss of life or property, or a threat to national security; and (2) "unanticipated" as an underlying situation that is sudden, which means quickly coming into being or not building up over time, urgent, which means a pressing and compelling need requiring immediate action, unforeseen, which means not predicted or anticipated as an emerging need, and temporary, which means not of a permanent duration.
Outlines the rule for designation of a legislative provision as an emergency.