[Federal Register Volume 78, Number 20 (Wednesday, January 30, 2013)]
[Notices]
[Pages 6353-6355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-01896]
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OFFICE OF MANAGEMENT AND BUDGET
2012 Statutory Pay-As-You-Go Act Annual Report
AGENCY: Office of Management and Budget (OMB).
ACTION: Notice.
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SUMMARY: This report is being published as required by the Statutory
Pay-As-You-Go (PAYGO) Act of 2010, 2 U.S.C. 931 et seq. The Act
requires that OMB issue (1) an annual report as specified in 2 U.S.C.
934(a) and (2) a sequestration order, if necessary.
FOR FURTHER INFORMATION CONTACT: Patrick Locke. 202-395-3672.
SUPPLEMENTARY INFORMATION: This report and additional information about
the PAYGO Act can be found at http://www.whitehouse.gov/omb/paygo_default.
Authority: 2 U.S.C. 934.
Courtney Timberlake,
Assistant Director for Budget.
This Report is being published pursuant to section 5 of the
Statutory Pay-As-You-Go (PAYGO) Act of 2010, Public Law 111-139, 124
Stat. 8, 2 U.S.C. 934, which requires that OMB issue an annual PAYGO
report, including a sequestration order if necessary, no later than 14
working days after the end of a congressional session.
This Report describes the budgetary effects of all legislation
enacted during the second session of the 112th Congress and presents
the 5-year and 10-year PAYGO scorecards maintained by OMB. Because
neither the 5-year nor 10-year scorecard shows a debit for the budget
year, which for purposes of this Report is fiscal year 2013,\1\ a
sequestration order under subsection 5(b) of the PAYGO Act, 2 U.S.C
934(b), is not necessary.
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\1\ References to years on the PAYGO scorecards are to fiscal
years.
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There was no legislation designated as emergency legislation under
section 4(g) of the PAYGO Act, 2 U.S.C. 933(g) enacted during the
second session of the 112th Congress. In addition, the scorecards
include no current policy adjustments made under section 4(c) of the
PAYGO Act, 2 U.S.C. 933(c), for legislation enacted during the second
session of the 112th Congress. For these reasons, the Report does not
contain any information about emergency legislation or a description of
any current policy adjustments.
I. PAYGO Legislation with Budgetary Effects
PAYGO legislation is authorizing legislation that affects direct
spending or revenues; and appropriations legislation that affects
direct spending in the years beyond the budget year or affects revenues
in any year.\2\ For a more complete description of the Statutory PAYGO
Act, see the OMB Web site, http://www.whitehouse.gov/omb/paygo_description, and Chapter 14, ``Budget Process,'' of the Analytical
Perspectives volume of the 2013 Budget, http://www.gpo.gov/fdsys/pkg/BUDGET-2013-PER/pdf/BUDGET-2013-PER.pdf.
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\2\ Provisions in appropriations acts that affect direct
spending in the years beyond the budget year (also known as
``outyears'') or affect revenues in any year are scorable for the
purposes of the PAYGO scorecards except if the provisions produce
outlay changes that net to zero over the current year, budget year,
and the four subsequent years. As specified in section 3 of the
Statutory PAYGO Act, off-budget effects are not counted as budgetary
effects. Off-budget effects refer to effects on the Social Security
trust funds (Old-Age and Survivors Insurance and Disability
Insurance) and the Postal Service.
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The 5-year PAYGO scorecard shows that PAYGO legislation enacted in
the second session of the 112th Congress was estimated to have PAYGO
budgetary effects that decreased the deficit by $839 million each year
from 2013 through 2017.\3\ Balances carried
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over from prior sessions of the Congress further increase the savings
being shown on the 5-year scorecard in years 2013 through 2015 but
would increase the deficit in 2016. The 10-year PAYGO scorecard shows
that PAYGO legislation for the second session of the 112th Congress
decreased the deficit by $1,134 million each year from 2013 through
2022. Balances from prior sessions further increase the savings in
years 2013 through 2021.
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\3\ As provided in section 4(d) of the PAYGO Act, 2 U.S.C.
933(d), budgetary effects on the PAYGO scorecards are based on
congressional estimates for bills including a reference to a
congressional estimate in the Congressional Record, and for which
such a reference is indeed present in the Record. Absent such a
congressional cost estimate, OMB is required to use its own estimate
for the scorecard. Only one bill enacted during the second session
of the 112th Congress (Pub. L. 112-154) had such a congressional
estimate and therefore OMB was required to provide an estimate for
all other PAYGO laws enacted during the session.
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In the second session of the 112th Congress, 56 laws were enacted
that were determined to constitute PAYGO legislation. Of the 56 enacted
PAYGO laws, two laws were estimated to have PAYGO budgetary effects
(costs or savings) in excess of $500 million over one or both of the 5-
year or 10-year PAYGO windows. These were:
An Act to extend the National Flood Insurance Program, and
for other purposes, Public Law 112-123; and
National Defense Authorization Act for Fiscal Year 2013,
Public Law 112-239.
In addition, 8 laws were enacted that were estimated to have PAYGO
budgetary effects (costs or savings) greater than zero but less than
$500 million over one or both of the 5-year or 10-year PAYGO windows.
These acts were:
FAA Modernization and Reform Act of 2012, Public Law 112-
95;
St. Croix River Crossing Project Authorization Act, Public
Law 112-100;
Honoring America's Veterans and Caring for Camp Lejeune
Families Act of 2012, Public Law 112-154;
An Act to amend the African Growth and Opportunity Act to
extend the third-country fabric program and to add South Sudan to the
list of countries eligible for designation under that Act, to make
technical corrections to the Harmonized Tariff Schedule of the United
States relating to the textile and apparel rules of origin for the
Dominican Republic-Central America-United States Free Trade Agreement,
to approve the renewal of import restrictions contained in the Burmese
Freedom and Democracy Act of 2003, and for other purposes, Public Law
112-163;
Lions Clubs International Century of Service Commemorative
Coin Act, Public Law 112-181;
Medicare IVIG Access and Strengthening Medicare and
Repaying Taxpayers Act of 2012, Public Law 112-242;
Dignified Burial and Other Veterans' Benefits Improvement
Act of 2012, Public Law 112-260; and
An Act to amend title 5, United States Code, to make clear
that accounts in the Thrift Savings Fund are subject to certain Federal
tax levies, Public Law 112-267.
Finally, in addition to the laws identified above, 46 laws enacted
in the second session were estimated to have negligible budgetary
effects. The budgetary effects of these laws were estimated to fall
below $500,000 in each year and in the aggregate from 2013 through
2022.
II. Budgetary Effects Excluded From the Scorecard Balances
Three laws enacted in the second session of the 112th Congress had
estimated budgetary effects on direct spending and revenues that are
not included in the calculations for the PAYGO scorecards due to
exclusions required by law. Public Law 112-96, the Middle Class Tax
Relief and Job Creation Act of 2012; Public Law 112-141, the Moving
Ahead for Progress in the 21st Century Act; and Public Law 112-240, the
American Taxpayer Relief Act of 2012, all contain provisions that state
``[t]he budgetary effects of this Act shall not be entered on either
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory
Pay-As-You-Go Act of 2010.'' For this reason, the budgetary effects of
these laws are not included in the PAYGO scorecards.
III. PAYGO Scorecards
Statutory Pay-As-You-Go Scorecards
[in millions of dollars, negative amounts portray decreases in deficits]
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2013 2014 2015 2016 2017
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Second Session of the 112th Congress...... -839 -839 -839 -839 -839
Balances from Previous Sessions........... -9,155 -9,155 -9,155 1,880 0
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Five-year PAYGO Scorecard............. -9,994 -9,994 -9,994 1,041 -839
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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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Second Session of the 112th Congress...... -1,134 -1,134 -1,134 -1,134 -1,134 -1,134 -1,134 -1,134 -1,134 -1,134
Balances from Previous Sessions........... -7,081 -7,081 -7,081 -7,081 -7,081 -7,081 -7,081 -7,081 -710 0
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Ten-year PAYGO Scorecard.............. -8,215 -8,215 -8,215 -8,215 -8,215 -8,215 -8,215 -8,215 -1,844 -1,134
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The total net budgetary effects of all PAYGO legislation enacted
during the second session of the 112th Congress on the five-year
scorecard reduces the deficit by $4,196 million. This total is averaged
over the years 2013 to 2017 on
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the 5-year PAYGO scorecard, resulting in a savings of $839 million in
each year. Balances carried over from prior sessions of the Congress
add to these savings in 2013 through 2015, resulting in a savings of
$9,994 million each year in 2013 through 2015. However, the balance
carried over for 2016 reduces the 2016 savings by $1,880 million, which
results in a net cost on the 5-year PAYGO scorecard in 2016 of $1,041
million. The five-year PAYGO window extended only through 2016 in the
first session of the 112th Congress, so there were no five-year
balances to carry over into 2017.
The total 10-year net impact of legislation enacted during the
second session of the 112th Congress was a savings of $11,343 million.
The 10-year PAYGO scorecard shows the total net impact averaged over
the 10-year period, resulting in $1,134 million in savings every year.
Balances from prior sessions increase the savings to $8,215 million in
2013 through 2020 and to $1,844 million in 2021.
IV. Sequestration Order
As shown on the scorecards, the budgetary effects of PAYGO
legislation enacted in the second session of the 112th Congress,
combined with the balances left on the scorecard from previous sessions
of the Congress, resulted in net savings on both the 5-year and the 10-
year scorecard in the budget year, which is 2013 for the purposes of
this Report. Because the costs for the budget year, as shown on the
scorecards, do not exceed savings for the budget year, there is no
``debit'' on either scorecard under section 3 of the PAYGO Act, 2
U.S.C. 932, and there is no need for a sequestration order.
The savings shown on the scorecards for 2013 will be removed from
the scorecards that are used to record the budgetary effects of PAYGO
legislation enacted in the first session of the 113th Congress. The
totals shown in 2014 through 2022 will remain on the scorecards and
will be used in determining whether a sequestration order will be
necessary at the end of future sessions of the Congress.
[FR Doc. 2013-01896 Filed 1-29-13; 8:45 am]
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