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Report No: 537
Date: 12/07/2000

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

  1. LAW NUMBER: P.L.106-458 (S. 1088)

  2. BILL TITLE: Arizona National Forest Improvement Act

  3. BILL PURPOSE: Authorizes the Agriculture Department to sell or exchange certain land and administrative sites in Arizona.

  4. OMB ESTIMATE: P.L. 106-458 authorizes the Secretary of Agriculture to sell or exchange certain land in Arizona. The proceeds are authorized to be spent on constructing or improving facilities and purchasing other land in Arizona. OMB estimates that the land sales will increase offsetting receipts by about $14 million over the 2001-2003 period, which will be spent over the 2001-2005 period.

    5. The law also authorizes the city of Sedona to pay the fair market value for certain land in seven equal annual installments including interest. Allowing the city to pay in installments constitutes a direct loan for which the subsidy is scored on a net present value basis. OMB estimates that the subsidy cost will be insignificant. In addition, selling the land to the city will yield insignificant costs due to foregone permit fees.

    (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 -5 0 1 3 2

     

  5. CBO ESTIMATE:
    6. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 -5 0 1 3 2

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

    7. The estimates are the same.

  7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
    8. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Outlay effect.............. 34 1,392 2,456 7,095 7,827 8,021
    Receipt effect............ -8 -689 -808 -870 -922 -924
    Net costs.................... 42 2,081 3,264 7,965 8,749 8,945

    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.