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

handle is hein.congrec/cbo0690 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE COST ESTIMATE September 19, 2001 S. 1416 National Defense Authorization Act for Fiscal Year 2002 As reported by the Senate Committee on Armed Services on September 12, 2001 SUMMARY S. 1416 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 and certain other defense-related programs. 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 $10 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 S. 1416 would total $209 million over the 2002-2006 period and $86 million over the 2002-2011 period. Those totals include estimated net receipts from asset sales of $144 million over the next five years and $120 million over 10 years. Because it would affect direct spending, the bill would be subject to pay-as-you-go procedures. Section 4 of the Unfunded Mandates Reform Act (UMRA) excludes from the application of that act any legislative provisions that enforce the constitutional rights of individuals. CBO has determined that subtitle F (Uniformed Services Overseas Voting) of title V is excluded because the provision would enforce an individual's constitutional right to vote. The bill contains one private-sector mandate; however, the costs of that mandate would not exceed the threshold as specified in UMRA ($113 million in 2001, adjusted annually for inflation). The remaining provisions of the bill either contain no mandates or are excluded, as specified in UMRA, because they would be necessary for national security. The bill also would affect DoD's Tricare long-term care program by increasing costs in state Medicaid programs by about $1 million in 2002 and over $2 million in 2003. Such costs would not result from mandates as defined by UMRA.

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