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

Report No: 512
Date: 08/09/00

1. LAW NUMBER: P.L.106-253 (H.R. 4437)

    

2. BILL TITLE: Semipostal Authorization Act

    

3. BILL PURPOSE: Extends the semipostal stamp program authorized by the Stamp Out Breast Cancer Act, and authorizes the Postal Service to issue additional stamps at a premium to fund causes, as the Postal Service considers to be in the national public interest and appropriate, for a ten-year period.

    

4. OMB ESTIMATE: Under the Breast Cancer Research semipostal stamp program, the Postal Service issues special stamps at amounts not to exceed 25 percent above the regular postal rate, and transfers the sales proceeds above the regular rate (after recovering its administrative costs) to the National Institutes of Health (NIH) and the Department of Defense (DoD) to be used for breast cancer research. P.L. 106-253 extends this program until July 29, 2002. The Postal Service is off-budget, and therefore not subject to pay-as-you-go (PAYGO). Only the transfer and subsequent outlay of these funds by NIH and DoD are subject to PAYGO.

    

   The bill also authorizes the Postal Service to establish similar semipostals for causes the Postal service considers to be in the national public interest and appropriate. OMB has no basis for predicting the extent to which the Postal Service would issue additional semipostals under this new discretionary authority. However, the budgetary impact of each semipostal would be similar to that of the breast cancer research stamp. The net budgetary effects of any additional semipostals would be near zero, because amounts collected above the regular postal rates would eventually be spent by the agency or agencies associated with the semipostal.

   	(Fiscal years; in millions of dollars)
   	2000	2001	2002	2003	2004	2005
   Subject to PAYGO: NIH and DoD outlays..	0	-2	-2	1	2	1
   (Not subject to PAYGO: Postal outlays)...	-1	-2	1	2	0	0

    

5. CBO ESTIMATE:

   	(Fiscal years; in millions of dollars)
   	2000	2001	2002	2003	2004	2005
   Subject to PAYGO: NIH and DoD outlays..	0	-2	-2	1	2	1
   (Not subject to PAYGO: Postal outlays)...	-1	-2	1	2	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)
   	2000	2001	2002	2003	2004	2005
   Outlay effect..............	34	535	1,313	1,382	1,468	1,534
   Receipt effect............	-8	-620	-698	-746	-781	-768
   Net costs....................	42	1,155	2,011	2,128	2,249	2,302

    

   *$500,000 or less.

    

   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.