OMB COST ESTIMATE FOR PAY-AS-YOU-GO
CALCULATIONS
Report No: 579
Date: 07/10/2002
- LAW NUMBER: P.L. 107-195 (H.R. 4560)
- BILL TITLE: Auction Reform Act
- BILL PURPOSE: Prohibits the Federal
Communications Commission (FCC) from
conducting the auctions of licenses for spectrum scheduled for Wednesday, June 19,
2002.
- OMB ESTIMATE: The FCC was
scheduled to auction licences for spectrum in the 700
Megahertz (MHz) band that is currently used by television channels 52 to 59 on June 19,
2002. P.L. 107-195 prohibited that auction and established a new schedule. The Act
requires that specific segments of the lower 700 MHz band be auctioned between August
19 and September 19, 2002. The remaining portions of the 700 MHz band are required to
be auctioned prior to September 30, 2007. The Act reduces offsetting receipts (and thus
increases outlays) in 2003 and 2004 and increases them in 2005 and 2006.
|
(Fiscal years; in millions of dollars) |
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Outlay effect..................... |
0 |
2,150 |
3,150 |
-3,900 |
-3,850 |
0 |
- CBO ESTIMATE:
|
(Fiscal years; in millions of dollars) |
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Outlay effect..................... |
0 |
775 |
1,300 |
1,525 |
-2,200 |
-2,200 |
- EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:
Differences between OMB and CBO estimates are the result of different baseline
assumptions and different assumptions about the timing of replacement auctions and the
estimated increase in value of the spectrum resulting from delay.
- CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION
ENACTED TO DATE:
|
(Fiscal years; in millions of dollars) |
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Outlay effect.............. |
2,204 |
36,520 |
39,016 |
30,997 |
15,293 |
9,894 |
Receipt effect............ |
0 |
-86,865 |
-106,317 |
-107,742 |
-126,472 |
2 |
Net costs.................... |
2,204 |
123,385 |
145,333 |
138,739 |
141,765 |
9,892 |
|