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Congressional Budget Office Cost Estimate [i] (August 2001)

handle is hein.congrec/cbo0689 and id is 1 raw text is: 



                CONGRESSIONAL BUDGET OFFICE
                               COST ESTIMATE

                                                                         August 22, 2001

                                     H.R. 2586
              National Defense Authorization Act for Fiscal Year 2002

        As ordered reported by the House Committee on Armed Services on August 1, 2001



SUMMARY

H.R. 2586 would authorize appropriations totaling $343 billion for fiscal year 2002 for the military
functions of the Department of Defense (DoD) and the Department of Energy. It also would prescribe
personnel strengths for each active duty and selected reserve component of the U.S. armed forces.
CBO estimates that appropriation of the authorized amounts for 2002 would result in additional
outlays of $338 billion over the 2002-2006 period.

The bill also contains provisions that would raise the costs of discretionary defense programs over the
2003-2006 period. CBO estimates that those provisions would require appropriations of $9 billion
over those four years.

The bill contains provisions that would reduce direct spending, primarily through revised payment
rates for some services offered under the Tricare for Life program and certain asset sales. We
estimate that the direct spending savings resulting from provisions of H.R. 2586 would total $384
million over the 2002-2006 period and $355 million over the 2002-2011 period. Those totals include
estimated net receipts from asset sales of $44 million over the next five years and $20 million over 10
years. Because it would affect direct spending, the bill would be subject to pay-as-you-go procedures.

The bill contains several intergovernmental mandates as defined by the Unfunded Mandates Reform
Act (UMRA). CBO estimates, however, that the costs of complying with those mandates would not
be significant and would not exceed the threshold as specified in UMRA. The bill also contains
provisions that affect DoD's Tricare long-term care program and would increase costs in state
Medicaid programs. The remaining provisions of the bill are either excluded under Section 4 of
UMRA, which excludes from the application of that act any legislative provisions that are necessary
for the national security, or contain no mandates.


ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of H.R. 2586 is shown in Table 1. Most of the costs of this
legislation fall within budget function 050 (national defense).

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