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Report No: 542
Date: 12/07/2000

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

  1. LAW NUMBER: P.L.106-512 (S-1474)

  2. BILL TITLE: Palmetto Bend Conveyance Act

  3. BILL PURPOSE: Directs the Secretary of Interior to convey the Palmetto Bend Reclamation Project in Texas to the State of Texas.

  4. OMB ESTIMATE: P.L. 106-512 requires the State of Texas to pay the adjusted net present value of its repayment obligations on the project, as a condition of the conveyance which will occur in 2001. The Federal government will forgo construction cost payments which will result in the loss of offsetting receipts beginning in 2002.

    5.  

    (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 -43 3 3 4 4

     

  5. CBO ESTIMATE:
    6. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 -42 3 3 4 4

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

    7. The difference between OMB and CBO's PAYGO estimate is the result of different assumptions regarding the discount rate.

  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 1,399 2,473 7,112 7,845 8,039
    Receipt effect............ -8 -752 -838 -898 -929 -924
    Net costs.................... 42 2,151 3,311 8,010 8,774 8,963

    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.