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This is historical material, "frozen in time."
The web site is no longer updated and links to external web sites and some internal pages will not work.
OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS
Report No: 509
Date: 06/30/00
LAW NUMBER: P.L.106-224 (H.R. 2559)
BILL TITLE: Agricultural Risk Protection Act of 2000
BILL PURPOSE: Authorizes a comprehensive
reform of the federal crop insurance program, provides assistance for agricultural
market loss, and includes other provisions pertaining to biomass research
and development, plant protection, and inspection animals.
OMB ESTIMATE: P.L. 106-224 prohibits OMB from including
all but the crop insurance reform costs in the PAYGO scorecard. Therefore, only the crop insurance spending increases of $6.8 billion
over the 2001-2005 period are subject to PAYGO. The other costs that are exempt
from PAYGO total $7.2 billion over the five-year period. A significant portion
of this total is income assistance payments to agricultural producers in 2000
and 2001. The remaining costs are the net impact of providing various
research programs, purchasing additional school lunch commodities, using school
lunch applications to identify children eligible for Medicaid and the State
Children's Health Insurance Program (SCHIP), and improving oversight of the
Child and Adult Care Food Program.
(Fiscal years; in millions of dollars)
2000
2001
2002
2003
2004
2005
Outlays subject to PAYGO:
Crop insurance............................
0
739
1,408
1,480
1,565
1,633
Outlays not subject to PAYGO:
Agricultural assistance and other..
5,500
1,670
6
13
25
20
CBO ESTIMATE:
(Fiscal years; in millions of dollars)
2000
2001
2002
2003
2004
2005
Outlays subject to PAYGO:
Crop insurance............................
0
672
1,489
1,606
1,682
1,770
Outlays not subject to PAYGO:
Agricultural assistance and other..
5,500
1,493
65
31
20
4
EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:
The difference between OMB and CBO's PAYGO estimates is the result of different
assumptions regarding the effect of increased crop insurance subsidies on
buyer behavior.
CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO
DATE:
(Fiscal years; in millions of dollars)
2000
2001
2002
2003
2004
2005
Outlay effect..............
34
640
1,306
1,372
1,457
1,524
Receipt effect............
-8
-620
-698
-746
-781
-768
Net costs....................
42
1,260
2,004
2,118
2,238
2,292
*$500,000 or less.
NOTE: The cumulative effect of direct
spending and revenue legislation enacted to date is currently estimated to
result in an end-of-session sequester. The Administration looks forward to
working with the Congress to ensure that an unintended sequester does not
occur.
