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

Report No: 573
Date: 01/25/2002

  1. LAW NUMBER: P.L. 107-135 (H.R. 3447)

  2. BILL TITLE: Department of Veterans Affairs Health Care Programs Enhancement Act of 2001

  3. BILL PURPOSE: Amends various Department of Veterans Affairs (VA) programs by: (1) establishing geographically-based income thresholds in determining enrollment priority for the health care system; (2) establishing a chiropractic care program; (3) enhancing recruitment programs and medical provider benefits; (4) requiring VA to maintain special treatment program staffing levels by geographic area; and (5) expanding certain veterans benefits.

  4. OMB ESTIMATE: P.L. 107-135 increases direct spending on retirement benefits for VA nurses. The Act requires that part-time service performed by VA nurses prior to April 7, 1986, be treated as full-time service when calculating retirement annuities. Under current law, retirement benefits for these workers are calculated according to a formula that prorates their part-time service.

    5. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Net costs.................................... 0 1 1 2 2 2

     

  5. CBO ESTIMATE:
    6. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Net costs.................................... 0 1 1 2 2 2

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

    7. The estimates are the same.

  7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
    8. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Outlay effect.............. 5,503 18,468 23,828 23,538 22,827 8,224
    Receipt effect............ -69,768 -36,540 -86,866 -106,319 -107,744 -126,474
    Net costs.................... 75,271 55,008 110,694 129,857 130,571 134,698