OMB
COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS
Report No: 563
Date: 01/08/2002
(Fiscal years; in millions of dollars) | ||||||
2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
Costs subject to pay-as-you-go: | ||||||
Receipts...................................... | 267 | -267 | 0 | 0 | 0 | 0 |
Outlays: | ||||||
Victim compensation.............. | 0 | 1,200 | 3,000 | 1,800 | 0 | 0 |
Other....................................... | 0 | 130 | 0 | 0 | 0 | 0 |
Subtotal, net pay-as-you-go costs. | 267 | 1,063 | 3,000 | 1,800 | 0 | 0 |
Costs designated emergency: | ||||||
Grants to airlines...................... | 2,328 | 2,672 | 0 | 0 | 0 | 0 |
Loan guarantee subsidies......... | 0 | 1,500 | 1,500 | 0 | 0 | 0 |
Subtotal, emergency..................... | 2,328 | 4,172 | 1,500 | 0 | 0 | 0 |
(Fiscal years; in millions of dollars) | ||||||
2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
Costs subject to pay-as-you-go: | ||||||
Receipts...................................... | 1,400 | -1,400 | 0 | 0 | 0 | 0 |
Outlays: | ||||||
Victim compensation............. | 0 | 400 | 2,400 | 2,400 | 800 | 0 |
Other....................................... | 0 | 600 | 0 | 0 | 0 | 0 |
Subtotal, net pay-as-you-go costs. | 1,400 | -400 | 2,400 | 2,400 | 800 | 0 |
Costs designated emergency: | ||||||
Grants to airlines...................... | 2,300 | 2,700 | 0 | 0 | 0 | 0 |
Loan guarantee subsidies......... | 0 | 500 | 1,500 | 0 | 0 | 0 |
Subtotal, emergency..................... | 2,300 | 3,200 | 1,500 | 0 | 0 | 0 |
CBO scores pay-as-you-go costs of $6.6 billion for the period 2001 through 2006, $0.5 billion more than OMB. All the difference in the total cost over the period results from different pricing of provisions providing assistance to airlines for insurance. CBO assumes that benefits will be provided over a longer period of time than OMB does. OMB assumes a quicker payment of victim compensation payments than CBO does, which changes the year by year estimates but not the overall total. Likewise, CBO and OMB have different estimates for the provision delaying certain excise tax payments from 2001 to 2002, which affects the year by year estimates but not the overall total. This difference is the result of different baseline assumptions. The difference between CBO and OMB in pricing the emergency provisions is the result of different assumptions on the volume and timing of loan guarantees that will be made under the Act.
(Fiscal years; in millions of dollars) | ||||||
2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
Outlay effect.............. | 5,503 | 18,093 | 23,298 | 22,835 | 22,088 | 7,436 |
Receipt effect............ | -69,768 | -34,865 | -84,624 | -103,812 | -104,966 | -123,403 |
Net costs.................... | 75,271 | 52,958 | 107,922 | 126,647 | 127,054 | 130,839 |