Establishing the congressional budget for the United States Government for fiscal year 2008 and setting forth appropriate budgetary levels for fiscal years 2009 through 2012.

Sets forth the congressional budget for the federal government for FY2008, including the appropriate budgetary levels for FY2009-FY2012. Lists recommended budgetary levels and amounts, for FY2008-FY2012, with respect to: (1) federal revenues; (2) new budget authority; (3) budget outlays; (4) deficits (on-budget); (5) debt subject to limit; and (6) debt held by the public. Lists the appropriate levels of new budget authority and outlays for specified major functional categories for FY2008-FY2012. Sets forth reconciliation instructions for the Committees on: (1) Agriculture; (2) Armed Services; (3) Education and Labor: (4) Energy and Commerce; (5) Financial Services; (6) Foreign Affairs; (7) the Judiciary; (8) Natural Resources; (9) Transportation and Infrastructure; and (10) Ways and Means. Requires the House Budget Committee to report a reconciliation bill providing for mandatory spending reform. Declares the policy in the resolution on: (1) taxation; (2) entitlement spending; and (3) the Bonneville Power Marketing Administration. Prohibits House legislation that would require advance appropriations, except certain FY2009 or FY2010 programs, projects, activities, or accounts. States that if legislation is reported that makes appropriations for FY2008 for contingency operations directly related to the global war on terrorism and other unanticipated defense-related operations, then the resulting new budget authority, new entitlement authority, outlays, or receipts shall not count for certain purposes of the Congressional Budget Act of 1974. Provides for adjustments for tax legislation. Repeals the Gephardt Rule (relating to mandatory adjustment of the statutory limit on the public debt to conform to a budget resolution). Requires introduction of budget process reform legislation. Requires the Treasury Department to study the impact of the current federal tort system on global competition and gross domestic product (GDP) growth. Prescribes the budgetary treatment of the National Flood Insurance Program. Provides for a nondefense reserve fund for emergencies. Authorizes the President to propose the cancellation (line item veto) of any dollar amount of discretionary budget authority, item of direct spending, limited tariff benefit, or targeted tax benefit. Expresses the sense of Congress on: (1) deferral authority; and (2) abuse of proposed cancellations. Makes it out of order in the House of Representatives to consider any legislation unless: (1) the required list of congressional earmarks, limited tax and tariff benefits, and the name of the requesting Member is also set forth in the text of the measure; and (2) such list is made publicly available on the Internet in a searchable format at least 48 hours before a measure's consideration. Makes it out of order to consider in the House or Senate any direct spending legislation, excluding the impact of any revenue provisions, increasing the on-budget deficit or causing an on-budget deficit for any one of specified applicable time periods. Makes it out of order to consider in the House legislation that would cause the discretionary spending limits in this resolution to be exceeded. Establishes specified discretionary spending limits in the House. Expresses the sense of the House of Representatives on: (1) child support enforcement; (2) state veterans cemeteries; and (3) the Internal Revenue Code. Expresses the sense of Congress on health insurance reform.