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.

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

 

5. CBO ESTIMATE:

	(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:

The estimates are the same.

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

	(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