OMB COST ESTIMATE
FOR PAY-AS-YOU-GO
CALCULATIONS
Report No: 582
Date: 09/10/2002
1. LAW NUMBER: P.L. 107-204 (H.R. 3763)
2. BILL TITLE: Sarbanes-Oxley Act of 2002
3. BILL PURPOSE: Creates a new regulatory board to oversee the activities of public accounting firms and creates new restrictions on auditing practices and penalties for corporate wrongdoing.
4. OMB ESTIMATE: P.L. 107-204 authorizes the new board and a new accounting standard-setting body to assess fees on public companies to cover their regulatory costs. The fee collections, which both OMB and CBO classify as governmental receipts, are expected to roughly offset the spending by these two organizations, also classified as governmental. The Act also raises or creates civil and criminal penalties for corporate fraud, which is also expected increase both receipts and spending by offsetting amounts.
|
(Fiscal years; in millions of dollars) |
|||||
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Outlay effect.................. |
0 |
36 |
82 |
89 |
92 |
96 |
Receipt effect................ |
0 |
43 |
87 |
89 |
92 |
96 |
Net costs....................... |
0 |
-7 |
-5 |
0 |
0 |
0 |
5. CBO ESTIMATE:
|
(Fiscal years; in millions of dollars) |
|||||
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Outlay effect.................. |
0 |
36 |
82 |
89 |
92 |
96 |
Receipt effect................ |
0 |
43 |
87 |
89 |
92 |
96 |
Net costs....................... |
0 |
-7 |
-5 |
0 |
0 |
0 |
6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:
The estimates are the same.
7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
|
(Fiscal years; in millions of dollars) |
|||||
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Outlay effect.............. |
2,206 |
36,556 |
39,098 |
31,086 |
15,385 |
9,990 |
Receipt effect............ |
0 |
-86,822 |
-106,230 |
-107,653 |
-126,380 |
98 |
Net costs.................... |
2,206 |
123,378 |
145,328 |
138,739 |
141,765 |
9,892 |
