Government Waste Reduction Act of 2007 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to extend discretionary spending limits through FY2012.
Repeals requirements for inclusion in a sequestration report of adjustments to discretionary limits for: (1) continuing disability reviews by the Social Security Administration; (2) specified allowances for the International Monetary Fund and international arrearages; (3) any earned income tax credit compliance initiative; (4) adoption incentive payments; and (5) conservation spending.
Requires an adjustment to discretionary spending limits equal to the estimated resulting reduction in mandatory budget authority and outlays utilizing accrual methods, if enacted legislation charges federal agencies for the full cost of accrued federal retirement and health benefits, and an appropriations Act provides new budget authority to carry out such legislation.
Revises PAYGO requirements to remove receipts from the requirement that any legislation enacted before FY2013 affecting direct spending (currently, direct spending or 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). Requires OMB to assume an automatic deficit increase of $33.485 billion before making such calculations for FY2008.
Repeals the cap on the amount by which Medicare programs must be reduced.
States that, with respect to eliminating a deficit increase, accounts shall be assumed to be at the level in the baseline (as under current law) for FY2009, but for FY2010-FY2013 at the baseline only after adjusting for any sequester in FY2008.
Repeals the exemption of agricultural crop disaster assistance from the application of emergency legislation requirements (thus including agricultural crop disaster assistance as direct spending the President may designate as an emergency requirement).
Revises the definition of baseline to exclude emergency appropriations and legislation.
Prohibits such emergency appropriations and legislation from being extended in the baseline.
Amends the Congressional Budget Act of 1974 to require that the committee report and any statement of managers accompanying proposed legislation analyze whether a proposed emergency requirement meets a specified definition of "emergency." Prohibits the consideration of any such legislation that does not meet this "emergency" definition.