OMB COST ESTIMATE
Report No: 491
P.L. 106-53 authorizes the prepayment of outstanding debts for certain water projects. Intotal, OMB estimates that $20 million of prepayments will be received in 2000. For eachyear 2000 through 2004, payments forgone as a result of the early payment are estimatedto be $2 million per year. Through 2003, the Act also allows the Corps of Engineers tospend recreations fees above $34 million per year on maintenance and enhancement ofsites where they were collected. Currently, appropriations action is required before thesefees can be spent. Because baseline estimates of these receipts are $36 million per year,OMB estimates that $2 million in direct spending per year will result from this provision.
In addition, the P.L. 106-53 directs the Corps of Engineers to sell certain propertiesyielding an estimated $5 million in receipts. The Act also exempts State and localgovernments from fees for the use of Outer Continental Shelf (OCS) sand, gravel andshell resources for certain projects. OMB estimates the net loss in receipts from thisprovision will be less than $500,000 per year.
OMB and CBO estimates differ on provisions related to recreation fees and exemption ofState and local governments from certain OCS fees. Although CBO's baseline estimateof recreation fee receipts is $36 million per year, identical to the OMB estimate, CBOscores $3 million per year in costs associated with the provision to allow spending ofreceipts above $34 million. CBO notes that there is a probability that receipts could behigher or lower than the baseline assumes and calculates an expected value for the loss ofreceipts. OMB scores based on the existing baseline. OMB and CBO have differentbaseline estimates for fees paid by State and local governments for OCS resources andthus differ on the loss associated with the fee exemption.
* $500,000 or less
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