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Report No: 529
Date: 11/27/2000

OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

  1. LAW NUMBER: P.L.106-393 (H.R. 2389)

  2. BILL TITLE: Secure Rural Schools and Community Self-Determination Act of 2000

  3. BILL PURPOSE: (1) Allows eligible States and counties to elect to receive a Federal payment, rather than a share of revenues generated from Federal lands, to fund schools and roads; (2) prohibits the reduction of the States' share of on-shore mineral royalties to offset Federal administrative costs; and (3) authorizes a community forest restoration project in the State of New Mexico.

  4. OMB ESTIMATE: P.L. 106-393 allows States and counties to elect to receive a fixed Federal payment, in lieu of a share of revenues generated from Federal lands, through FY 2006. OMB estimates that the new fixed payments will increase payments to States and counties by $919 million over the 2001-2005 period. The law also prohibits the Federal Government from deducting administrative costs from the States' share of on-shore leasing royalties. OMB estimates that the royalty payments to States will increase by $111 million over the five-year period.
    5. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 21 242 258 251 258

     

  5. CBO ESTIMATE:
    6. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 21 256 270 277 282

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

    7. The difference between OMB and CBO estimates is the result of CBO's lower baseline estimates of payments to States and counties.

  7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
    8. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Outlay effect.............. 34 789 1,434 1,568 2,089 2,043
    Receipt effect............ -8 -620 -699 -747 -786 -775
    Net costs.................... 42 1,409 2,133 2,315 2,875 2,818

    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.