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

Report No: 584
Date: 10/11/2002

1.         LAW NUMBER: P.L. 107-228 (H.R. 1646)                                     

2.         BILL TITLE: Foreign Relations Authorization Act

3.         BILL PURPOSE: (1) Authorizes appropriations for fiscal year 2003 for the Department of State, international broadcasting, and security assistance programs; and (2) makes a number of policy, programmatic, and technical changes to laws affecting U.S. foreign relations.

4.         OMB ESTIMATE: P.L. 107-228 allows the release of arrearage payments to the United Nations, authorizes spending of fees for international adoptions and affidavits of support, allows more cases to be eligible to receive payment of judgments under the Victims of Trafficking and Violence Protection Act of 2000, changes the computation of retirement benefits for members of the Foreign Service who have served overseas, authorizes transfer of naval vessels, and provides other changes to current law.

5.         CBO ESTIMATE:      

6.         EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

The difference in 2003 is largely due to a scoring difference for the release of arrearage payments to the United Nations. CBO scores $244 million for the release, whereas OMB views it as discretionary and does not score it for PAYGO purposes. The differences in the subsequent years are due to different baseline assumptions about fees for international adoptions. CBO assumes collection of these fees in its baseline, and therefore, scores the spending of these fees. OMB does not score this spending, because it does not assume any collection of these fees.

7.         CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE: