2010 Pay-As-You-Go (PAYGO) Report, 3657-3673 [2011-1064]
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reproduction cost), or, if by e-mail or
fax, forward a check in the applicable
amount to the Consent Decree Library at
the stated address.
Maureen Katz,
Assistant Chief, Environmental Enforcement
Section, Environment and Natural Resources
Division.
[FR Doc. 2011–1107 Filed 1–19–11; 8:45 am]
BILLING CODE 4410–15–P
OFFICE OF MANAGEMENT AND
BUDGET
2010 Pay-As-You-Go (PAYGO) Report
Authority: Sec. 5, Public Law 111–139,
124 Stat. 8.
Office of Management and
Budget (OMB).
ACTION: Notice.
AGENCY:
This report is being published
as required by the Statutory Pay-AsYou-Go (PAYGO) Act of 2010. The Act
requires that OMB issue (1) an annual
report of all legislation affecting
mandatory spending and revenue
enacted during the prior session of
Congress and (2) a sequestration order,
if necessary.
FOR FURTHER INFORMATION CONTACT:
Patrick Locke, 202–395–3945.
SUPPLEMENTARY INFORMATION: This
report and additional information about
the PAYGO Act can be found at
https://www.whitehouse.gov/omb/
paygo_default.
SUMMARY:
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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, which
requires that OMB issue an annual
PAYGO report, including a
sequestration order if necessary, within
14 working days after the end of a
Congressional session. This Report
covers all legislation enacted during the
second session of the 111th Congress
since enactment of the PAYGO Act on
February 12, 2010. This Report
summarizes the budgetary effects of
enacted PAYGO legislation, the current
policy adjustments provided by the
PAYGO Act, and legislation designated
as an emergency under the PAYGO Act.
This Report also presents the five-year
and ten-year PAYGO scorecards
maintained by OMB.
Because balances on both scorecards
represent PAYGO savings in net, a
sequestration order is not necessary.
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I. PAYGO Legislation With Budgetary
Effects
PAYGO legislation is authorizing
legislation that affects direct spending
or revenues and appropriations
legislation that affects direct spending
or revenues in the years beyond the
budget year.1 For a more complete
description of the Statutory PAYGO Act,
see https://www.whitehouse.gov/omb/
paygo_description. The scorecards show
that PAYGO legislation enacted since
February 12, 2010, was estimated to
have PAYGO budgetary effects that
increase the deficit by $4.3 billion in
2010 and $114.5 billion in 2011, and
decrease the deficit by $55.2 billion over
the 2010–2015 period and $63.7 billion
over the 2010–2020 period.2 The
scorecards also show that since
February 12, 2010, 97 laws (96 public
laws and one private law) were enacted
that were determined to constitute
PAYGO legislation.3
Of the 97 enacted PAYGO laws, 13
have estimated PAYGO budgetary
effects in excess of $500 million over
the 2010–2015 and/or 2010–2020
periods. These are:
• Hiring Incentives to Restore
Employment Act, Public Law 111–147;
• Patient Protection and Affordable
Care Act, Public Law 111–148;
• Health Care and Education
Reconciliation Act of 2010, Public Law
111–152;
• Preservation of Access to Care for
Medicare Beneficiaries and Pension
Relief Act of 2010, Public Law 111–192;
• Dodd-Frank Wall Street Reform and
Consumer Protection Act, Public Law
111–203;
1 Provisions in appropriations acts that affect
direct spending or revenues in the years beyond the
budget year are not considered to be PAYGO
legislation to the extent that the resulting outyear
outlay changes flow from budget authority changes
that occur in the current or budget year, or if the
provisions produce outlay changes netting to zero
over a six-year period consisting of the current year,
the 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 Fund.
2 Budgetary effects on the PAYGO scorecard are
based on Congressional estimates if those estimates
are placed in the Congressional Record according to
the procedures of the PAYGO Act and crossreferenced in the enacted PAYGO legislation in
question. Absent a valid Congressional cost
estimate, OMB uses its own estimate for the
scorecard. Of the 97 PAYGO laws on the scorecard,
44 used a Congressional cost estimate and 53 used
an OMB estimate.
3 In addition to the 97 laws shown on the
scorecards, 149 laws were enacted that did not
affect direct spending or revenues.
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• Public Law 111–226, an act that
provides education jobs and Medicaid
assistance to States;4
• Small Business Jobs Act of 2010,
Public Law 111–240;
• The Physician Payment and
Therapy Relief Act of 2010, Public Law
111–286;
• Claims Resolution Act of 2010,
Public Law 111–291;
• Healthy, Hunger-Free Kids Act of
2010, Public Law 111–296;
• Medicare and Medicaid Extenders
Act of 2010, Public Law 111–309;
• Omnibus Trade Act of 2010, Public
Law 111–344; and
• Post-9/11 Veterans Educational
Assistance Improvements Act of 2010,
Public Law 111–377
In addition to these 13 laws, 21 laws
were enacted that were estimated to
have PAYGO budgetary effects greater
than zero but less than $500 million
over the 2010–2015 or 2010–2020
period. These are:
• Social Security Disability
Applicants’ Access to Professional
Representation Act of 2010, Public Law
111–142;
• Capitol Police Administrative
Technical Correction Act of 2009/Travel
Promotion Act of 2009, Public Law 111–
145;
• An Act to provide that Members of
Congress shall not receive a cost-ofliving adjustment in pay during fiscal
year 2011, Public Law 111–165;
• Haiti Economic Lift Program Act of
2010, Public Law 111–171;
• Homebuyer Assistance and
Improvement Act of 2010, Public Law
111–198;
• A Joint Resolution approving the
renewal of import restrictions contained
in the Burmese Freedom and Democracy
Act of 2003 and for other purposes,
Public Law 111–210;
• United States Manufacturing
Enhancement Act of 2010, Public Law
111–227;
• General and Special Risk Insurance
Funds Availability Act of 2010, Public
Law 111–228;
• An Act making emergency
supplemental appropriations for border
security for fiscal year ending
September 30, 2010, and for other
purposes, Public Law 111–230;5
4 P.L. 111–226 was amended before enactment to
strike its original provisions and substitute
provisions that provided funding to States for
education jobs and Medicaid assistance. The
amendment did not change the official title, which
refers to the bill’s original provisions concerning
reauthorization of the Federal Aviation
Administration and modernization of the air traffic
control system. OMB’s PAYGO scorecard refers to
the bill using this official title.
5 Public Law 111–230 law was the single
appropriations law enacted during the second
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• Star-Spangled Banner
Commemorative Coin Act, Public Law
111–232;
• Firearms Excise Tax Improvement
Act of 2010, Public Law 111–237;
• Security Cooperation Act of 2010,
Public Law 111–266;
• Veterans’ Benefits Act of 2010,
Public Law 111–275;
• Coin Modernization, Oversight, and
Continuity Act of 2010, Public Law
111–302;
• Regulated Investment Company
Modernization Act of 2010, Public Law
111–325;
• An Act to require the Federal
Deposit Insurance Corporation to fully
insure Interest on Lawyers Trust
Accounts, Public Law 111–343;
• James Zadroga 9/11 Health
Compensation Act of 2010, Public Law
111–347;
• Section 202 Supportive Housing for
the Elderly Act of 2010, Public Law
111–372;
• Pedestrian Safety Enhancement Act
of 2010, Public Law 111–373;
• An Act to clarify the National
Credit Union Administration authority
to make stabilization fund expenditures
without borrowing from the Treasury,
Public Law 111–382; and
• Ike Skelton National Defense
Authorization Act for Fiscal Year 2011.
Finally, in addition to the laws
identified above, 63 laws enacted since
February 12, 2010, were estimated to
have a negligible PAYGO budgetary
effect. The PAYGO budgetary effect of
these laws was estimated to fall below
$500,000 each year and in the aggregate
from 2010 through 2020.
II. PAYGO Legislation Excluded From
the Scorecard Balances
Some or all of the budgetary effects of
a number of PAYGO laws enacted since
February 12, 2010, are not included in
the calculations for the PAYGO
scorecards due to emergency
designations and other exclusions
required by law. As noted above, the 97
PAYGO laws enacted during the second
session of the 111th Congress were
estimated to result in PAYGO savings of
$55.2 billion over 2010–2015 and $63.7
billion over 2010–2020, after reflecting
emergency designations, current policy
adjustments, and other adjustments.
Before applying these adjustments,
these laws were estimated to increase
the on-budget deficit by $899.4 billion
over 2010–2015 and by $820.1 billion
session of the 111th Congress that was determined
to constitute PAYGO legislation. The law made
changes to direct spending beyond the budget year
by increasing immigration fees; these changes
constitute PAYGO budgetary effects under section
3 of the PAYGO Act.
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over 2010–2020. The budget effects that
were excluded from balances on the
PAYGO scorecards are discussed below.
Legislation Subject to Current Policy
Adjustments
Current policy adjustments are
excluded from the budgetary effects of
certain legislation, as specified in
sections 4(c) and 7 of the PAYGO Act.
Legislation affecting Medicare
physicians’ payments, the estate and gift
tax, the alternative minimum tax (AMT),
and certain provisions of the 2001 and
2003 tax acts is subject to current policy
adjustments. In addition to excluding
current policy adjustments from the
scorecards, any savings from the
Community Living Assistance Services
and Supports (CLASS) Act or
amendments to the CLASS Act are
excluded from the scorecards, as
specified in Section 4(d) of the PAYGO
Act. The following 8 laws were enacted
that contain provisions subject to
current policy adjustments and the
CLASS Act provision:
• Temporary Extension Act of 2010,
Public Law 111–144;
• Patient Protection and Affordable
Care Act, Public Law 111–148;
• Continuing Extension Act of 2010,
Public Law 111–157;
• Preservation of Access to Care for
Medicare Beneficiaries and Pension
Relief Act of 2010, Public Law 111–192;
• Small Business Jobs Act of 2010,
Public Law 111–240;
• The Physician Payment and
Therapy Relief Act of 2010, Public Law
111–286;
• Medicare and Medicaid Extenders
Act of 2010, Public Law 111–309; and
• Tax Relief, Unemployment
Insurance Reauthorization, and Job
Creation Act of 2010, Public Law 111–
312.
The total costs excluded from the
scorecards due to current policy
adjustments are $436.4 billion over
2010–2015 and $433.8 billion over
2010–2020. The total savings excluded
from the scorecards through the CLASS
Act provision are $39.9 billion over
2010–2015 and $78.6 billion over 2010–
2020. As discussed in the next section,
three of these laws, the Temporary
Extension Act of 2010, the Continuing
Extension Act of 2010, and the Tax
Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of
2010, also contain provisions that were
designated as emergencies.
Section 7(c) of the PAYGO Act
exempts from the scorecards some of the
costs of providing relief from the
scheduled cuts to Medicare physician
payments that would have occurred
under the Sustainable Growth Rate
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(SGR) formula. Under the PAYGO Act,
the cost of extending physician
payments through 2014 at December
2009 levels is excluded from the
scorecard. The Temporary Extension
Act of 2010, Public Law 111–144, and
the Continuing Extension Act of 2010,
Public Law 111–157, extended
physician payments at the December
2009 levels through March 31, 2010,
and May 31, 2010, respectively. The
PAYGO Act’s current policy adjustment
excluded these extensions from the
PAYGO scorecards. The Preservation of
Access to Care for Medicare
Beneficiaries and Pension Relief Act of
2010, Public Law 111–192, extended
physician payments through November
30, 2010, at a level that was 2.2 percent
above December 2009 levels. The
current policy adjustment applied only
to the cost of extending the December
2009 payment rates; the cost of the
additional 2.2 percent was included on
the scorecards. The Physician Payment
and Therapy Relief Act of 2010, Public
Law 111–286, and the Medicare and
Medicaid Extenders Act of 2010, Public
Law 111–309, extended these higher
rates through December 31, 2010, and
December 31, 2011, respectively, and
the current policy adjustment applied
only to the extension of December 2009
payment levels. All three of these bills
that extended higher payment levels
resulted in net savings on the PAYGO
scorecards because of the combination
of the current policy adjustments and
other provisions in the bills that reduce
direct spending.
Section 7(f) of the PAYGO Act
exempts from the scorecards the costs of
extending the middle class tax cuts
enacted under the Economic Growth
and Tax Relief Reconciliation Act
(EGTRRA) and the Jobs and Growth Tax
Relief Reconciliation Act (JGTRRA), as
amended. In addition, section 7(e)
exempts from the scorecards the cost of
extending AMT relief through 2011, and
section 7(d) exempts from the
scorecards the cost of extending a
portion of estate and gift tax relief
through 2011. The PAYGO scorecards
include a current policy adjustment for
the provision of the Small Business Jobs
Act of 2010 that amended Section
179(b) of the Internal Revenue Code to
extend and increase expensing
limitations for small businesses. The
scorecards also include current policy
adjustments for three provisions of the
Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of
2010, Public Law 111–312: the two-year
extension of the middle-class tax cuts,
the two-year extension of AMT relief,
and the amount of the estate tax relief
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that would correspond to a two-year
extension of estate and gift taxes at the
tax rates, exemption amount, and
related parameters in effect in 2009. The
Patient Protection and Affordable Care
Act, Public Law 111–148, also included
a current policy adjustment for a
provision affecting the adoption credit,
which was originally enacted as a
middle-class tax cut in EGTRRA.
Legislation Designated as an Emergency
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As shown on the scorecards, five laws
were enacted that contain provisions
that received an emergency designation
under the Statutory PAYGO Act: The
Temporary Extension Act of 2010,
Public Law 111–144; the Continuing
Extension Act of 2010, Public Law 111–
157; the Unemployment Compensation
Extension Act of 2010, Public Law 111–
205; an Act to extend the deadline for
Social Services Block Grant
expenditures of supplemental funds
appropriated following disasters
occurring in 2008, Public Law 111–285;
and the Tax Relief, Unemployment
Insurance Reauthorization, and Job
Creation Act of 2010, Public Law 111–
312. The total costs excluded through
emergency designations were $570.1
billion over 2010–2015 and $545.1
billion over 2010–2020. Although
shown on the scorecards, the budgetary
effects of provisions designated as
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emergencies are not included in the
PAYGO effects shown on the
scorecards, as specified by Section 4(g)
of the PAYGO Act.
Emergency Offsets
Scorekeeping guidelines adopted by
the Office of Management and Budget,
the Congressional Budget Office, and
the Congressional budget committees
preclude scoring savings for the
subsequent repeal of legislative
provisions that were designated as
emergency spending when enacted.
Although the laws repealing the
emergency provisions are reported on
the PAYGO scorecards maintained by
OMB, the savings associated with repeal
are not included in the balances on the
scorecards that are used to determine
the need for a sequestration. Two such
laws were enacted during the second
session of the 111th Congress: The
Education, Jobs and Medicaid
Assistance to States Act, Public Law
111–226, and the Healthy, Hunger-Free
Kids Act of 2010, Public Law 111–296.
These adjustments excluded $12.0
billion of savings over 2010–2015 and
$16.5 billion of savings over 2010–2020.
Total Exclusions
In total, a net of $883.8 billion in costs
over 2010–2020 were enacted by
Congress but excluded from the PAYGO
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scorecards through current policy
adjustments, emergency designations, or
other adjustments. Of that amount,
$894.0 billion of costs were enacted in
the Tax Relief, Unemployment
Insurance Reauthorization, and Job
Creation Act of 2010, Public Law 111–
312. All other exemptions or exclusions
produced a net of $10.2 billion in
uncounted savings.
III. Sequestration Order
As shown on the scorecards, the
budgetary effects of PAYGO legislation
enacted since enactment of the PAYGO
Act did not result in a ‘‘debit’’ on either
the five-year or the ten-year scorecard in
the budget year, 2011, which means that
costs for the budget year as shown on
the scorecards do not exceed savings for
the budget year. For this reason, a
sequestration order is not necessary and
is not included in this Report.
The savings shown on the scorecards
for 2011 will be removed from the
scorecards that are used to record the
budgetary effects of PAYGO legislation
enacted in the first session of the 112th
Congress. The savings shown in 2012
through 2020 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 Congress.
BILLING CODE P
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BILLING CODE C
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NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[Notice: (11–005)]
NASA Advisory Council; Space
Operations Committee; Meeting.
National Aeronautics and
Space Administration.
ACTION: Notice of meeting.
AGENCY:
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In accordance with the
Federal Advisory Committee Act, Public
Law 92–463, as amended, the National
Aeronautics and Space Administration
announces a meeting of the NASA
Advisory Council (NAC) Space
Operations Committee.
DATES: Tuesday, February 8, 2011,
8 a.m.–5 p.m., Local Time.
ADDRESSES: NASA Headquarters, 300 E
Street, SW., Room 7C61, Washington,
DC 20546.
FOR FURTHER INFORMATION CONTACT: Mr.
Jacob Keaton, Space Operations Mission
Directorate, National Aeronautics and
SUMMARY:
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Space Administration Headquarters,
Washington, DC 20546, 202/358–1507,
jacob.keaton@nasa.gov.
The
agenda for the meeting includes the
following topics:
—International Space Station Program
Update
—Space Shuttle Program Update
—Space Communication and Navigation
Program Update
—Heavy Lift Development Update
—Commercial Crew Development
Program Update
SUPPLEMENTARY INFORMATION:
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[FR Doc. 2011–1064 Filed 1–19–11; 8:45 am]
3673
Agencies
[Federal Register Volume 76, Number 13 (Thursday, January 20, 2011)]
[Notices]
[Pages 3657-3673]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-1064]
=======================================================================
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OFFICE OF MANAGEMENT AND BUDGET
2010 Pay-As-You-Go (PAYGO) Report
Authority: Sec. 5, Public Law 111-139, 124 Stat. 8.
AGENCY: Office of Management and Budget (OMB).
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This report is being published as required by the Statutory
Pay-As-You-Go (PAYGO) Act of 2010. The Act requires that OMB issue (1)
an annual report of all legislation affecting mandatory spending and
revenue enacted during the prior session of Congress and (2) a
sequestration order, if necessary.
FOR FURTHER INFORMATION CONTACT: Patrick Locke, 202-395-3945.
SUPPLEMENTARY INFORMATION: This report and additional information about
the PAYGO Act can be found at https://www.whitehouse.gov/omb/paygo_default.
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, which requires that OMB issue an annual PAYGO report,
including a sequestration order if necessary, within 14 working days
after the end of a Congressional session. This Report covers all
legislation enacted during the second session of the 111th Congress
since enactment of the PAYGO Act on February 12, 2010. This Report
summarizes the budgetary effects of enacted PAYGO legislation, the
current policy adjustments provided by the PAYGO Act, and legislation
designated as an emergency under the PAYGO Act. This Report also
presents the five-year and ten-year PAYGO scorecards maintained by OMB.
Because balances on both scorecards represent PAYGO savings in net,
a sequestration order is not necessary.
I. PAYGO Legislation With Budgetary Effects
PAYGO legislation is authorizing legislation that affects direct
spending or revenues and appropriations legislation that affects direct
spending or revenues in the years beyond the budget year.\1\ For a more
complete description of the Statutory PAYGO Act, see https://www.whitehouse.gov/omb/paygo_description. The scorecards show that
PAYGO legislation enacted since February 12, 2010, was estimated to
have PAYGO budgetary effects that increase the deficit by $4.3 billion
in 2010 and $114.5 billion in 2011, and decrease the deficit by $55.2
billion over the 2010-2015 period and $63.7 billion over the 2010-2020
period.\2\ The scorecards also show that since February 12, 2010, 97
laws (96 public laws and one private law) were enacted that were
determined to constitute PAYGO legislation.\3\
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\1\ Provisions in appropriations acts that affect direct
spending or revenues in the years beyond the budget year are not
considered to be PAYGO legislation to the extent that the resulting
outyear outlay changes flow from budget authority changes that occur
in the current or budget year, or if the provisions produce outlay
changes netting to zero over a six-year period consisting of the
current year, the 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
Fund.
\2\ Budgetary effects on the PAYGO scorecard are based on
Congressional estimates if those estimates are placed in the
Congressional Record according to the procedures of the PAYGO Act
and cross-referenced in the enacted PAYGO legislation in question.
Absent a valid Congressional cost estimate, OMB uses its own
estimate for the scorecard. Of the 97 PAYGO laws on the scorecard,
44 used a Congressional cost estimate and 53 used an OMB estimate.
\3\ In addition to the 97 laws shown on the scorecards, 149 laws
were enacted that did not affect direct spending or revenues.
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Of the 97 enacted PAYGO laws, 13 have estimated PAYGO budgetary
effects in excess of $500 million over the 2010-2015 and/or 2010-2020
periods. These are:
Hiring Incentives to Restore Employment Act, Public Law
111-147;
Patient Protection and Affordable Care Act, Public Law
111-148;
Health Care and Education Reconciliation Act of 2010,
Public Law 111-152;
Preservation of Access to Care for Medicare Beneficiaries
and Pension Relief Act of 2010, Public Law 111-192;
Dodd-Frank Wall Street Reform and Consumer Protection Act,
Public Law 111-203;
Public Law 111-226, an act that provides education jobs
and Medicaid assistance to States;\4\
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\4\ P.L. 111-226 was amended before enactment to strike its
original provisions and substitute provisions that provided funding
to States for education jobs and Medicaid assistance. The amendment
did not change the official title, which refers to the bill's
original provisions concerning reauthorization of the Federal
Aviation Administration and modernization of the air traffic control
system. OMB's PAYGO scorecard refers to the bill using this official
title.
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Small Business Jobs Act of 2010, Public Law 111-240;
The Physician Payment and Therapy Relief Act of 2010,
Public Law 111-286;
Claims Resolution Act of 2010, Public Law 111-291;
Healthy, Hunger-Free Kids Act of 2010, Public Law 111-296;
Medicare and Medicaid Extenders Act of 2010, Public Law
111-309;
Omnibus Trade Act of 2010, Public Law 111-344; and
Post-9/11 Veterans Educational Assistance Improvements Act
of 2010, Public Law 111-377
In addition to these 13 laws, 21 laws were enacted that were
estimated to have PAYGO budgetary effects greater than zero but less
than $500 million over the 2010-2015 or 2010-2020 period. These are:
Social Security Disability Applicants' Access to
Professional Representation Act of 2010, Public Law 111-142;
Capitol Police Administrative Technical Correction Act of
2009/Travel Promotion Act of 2009, Public Law 111-145;
An Act to provide that Members of Congress shall not
receive a cost-of-living adjustment in pay during fiscal year 2011,
Public Law 111-165;
Haiti Economic Lift Program Act of 2010, Public Law 111-
171;
Homebuyer Assistance and Improvement Act of 2010, Public
Law 111-198;
A Joint Resolution approving the renewal of import
restrictions contained in the Burmese Freedom and Democracy Act of 2003
and for other purposes, Public Law 111-210;
United States Manufacturing Enhancement Act of 2010,
Public Law 111-227;
General and Special Risk Insurance Funds Availability Act
of 2010, Public Law 111-228;
An Act making emergency supplemental appropriations for
border security for fiscal year ending September 30, 2010, and for
other purposes, Public Law 111-230;\5\
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\5\ Public Law 111-230 law was the single appropriations law
enacted during the second session of the 111th Congress that was
determined to constitute PAYGO legislation. The law made changes to
direct spending beyond the budget year by increasing immigration
fees; these changes constitute PAYGO budgetary effects under section
3 of the PAYGO Act.
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Star-Spangled Banner Commemorative Coin Act, Public Law
111-232;
Firearms Excise Tax Improvement Act of 2010, Public Law
111-237;
Security Cooperation Act of 2010, Public Law 111-266;
Veterans' Benefits Act of 2010, Public Law 111-275;
Coin Modernization, Oversight, and Continuity Act of 2010,
Public Law 111-302;
Regulated Investment Company Modernization Act of 2010,
Public Law 111-325;
An Act to require the Federal Deposit Insurance
Corporation to fully insure Interest on Lawyers Trust Accounts, Public
Law 111-343;
James Zadroga 9/11 Health Compensation Act of 2010, Public
Law 111-347;
Section 202 Supportive Housing for the Elderly Act of
2010, Public Law 111-372;
Pedestrian Safety Enhancement Act of 2010, Public Law 111-
373;
An Act to clarify the National Credit Union Administration
authority to make stabilization fund expenditures without borrowing
from the Treasury, Public Law 111-382; and
Ike Skelton National Defense Authorization Act for Fiscal
Year 2011.
Finally, in addition to the laws identified above, 63 laws enacted
since February 12, 2010, were estimated to have a negligible PAYGO
budgetary effect. The PAYGO budgetary effect of these laws was
estimated to fall below $500,000 each year and in the aggregate from
2010 through 2020.
II. PAYGO Legislation Excluded From the Scorecard Balances
Some or all of the budgetary effects of a number of PAYGO laws
enacted since February 12, 2010, are not included in the calculations
for the PAYGO scorecards due to emergency designations and other
exclusions required by law. As noted above, the 97 PAYGO laws enacted
during the second session of the 111th Congress were estimated to
result in PAYGO savings of $55.2 billion over 2010-2015 and $63.7
billion over 2010-2020, after reflecting emergency designations,
current policy adjustments, and other adjustments. Before applying
these adjustments, these laws were estimated to increase the on-budget
deficit by $899.4 billion over 2010-2015 and by $820.1 billion over
2010-2020. The budget effects that were excluded from balances on the
PAYGO scorecards are discussed below.
Legislation Subject to Current Policy Adjustments
Current policy adjustments are excluded from the budgetary effects
of certain legislation, as specified in sections 4(c) and 7 of the
PAYGO Act. Legislation affecting Medicare physicians' payments, the
estate and gift tax, the alternative minimum tax (AMT), and certain
provisions of the 2001 and 2003 tax acts is subject to current policy
adjustments. In addition to excluding current policy adjustments from
the scorecards, any savings from the Community Living Assistance
Services and Supports (CLASS) Act or amendments to the CLASS Act are
excluded from the scorecards, as specified in Section 4(d) of the PAYGO
Act. The following 8 laws were enacted that contain provisions subject
to current policy adjustments and the CLASS Act provision:
Temporary Extension Act of 2010, Public Law 111-144;
Patient Protection and Affordable Care Act, Public Law
111-148;
Continuing Extension Act of 2010, Public Law 111-157;
Preservation of Access to Care for Medicare Beneficiaries
and Pension Relief Act of 2010, Public Law 111-192;
Small Business Jobs Act of 2010, Public Law 111-240;
The Physician Payment and Therapy Relief Act of 2010,
Public Law 111-286;
Medicare and Medicaid Extenders Act of 2010, Public Law
111-309; and
Tax Relief, Unemployment Insurance Reauthorization, and
Job Creation Act of 2010, Public Law 111-312.
The total costs excluded from the scorecards due to current policy
adjustments are $436.4 billion over 2010-2015 and $433.8 billion over
2010-2020. The total savings excluded from the scorecards through the
CLASS Act provision are $39.9 billion over 2010-2015 and $78.6 billion
over 2010-2020. As discussed in the next section, three of these laws,
the Temporary Extension Act of 2010, the Continuing Extension Act of
2010, and the Tax Relief, Unemployment Insurance Reauthorization, and
Job Creation Act of 2010, also contain provisions that were designated
as emergencies.
Section 7(c) of the PAYGO Act exempts from the scorecards some of
the costs of providing relief from the scheduled cuts to Medicare
physician payments that would have occurred under the Sustainable
Growth Rate (SGR) formula. Under the PAYGO Act, the cost of extending
physician payments through 2014 at December 2009 levels is excluded
from the scorecard. The Temporary Extension Act of 2010, Public Law
111-144, and the Continuing Extension Act of 2010, Public Law 111-157,
extended physician payments at the December 2009 levels through March
31, 2010, and May 31, 2010, respectively. The PAYGO Act's current
policy adjustment excluded these extensions from the PAYGO scorecards.
The Preservation of Access to Care for Medicare Beneficiaries and
Pension Relief Act of 2010, Public Law 111-192, extended physician
payments through November 30, 2010, at a level that was 2.2 percent
above December 2009 levels. The current policy adjustment applied only
to the cost of extending the December 2009 payment rates; the cost of
the additional 2.2 percent was included on the scorecards. The
Physician Payment and Therapy Relief Act of 2010, Public Law 111-286,
and the Medicare and Medicaid Extenders Act of 2010, Public Law 111-
309, extended these higher rates through December 31, 2010, and
December 31, 2011, respectively, and the current policy adjustment
applied only to the extension of December 2009 payment levels. All
three of these bills that extended higher payment levels resulted in
net savings on the PAYGO scorecards because of the combination of the
current policy adjustments and other provisions in the bills that
reduce direct spending.
Section 7(f) of the PAYGO Act exempts from the scorecards the costs
of extending the middle class tax cuts enacted under the Economic
Growth and Tax Relief Reconciliation Act (EGTRRA) and the Jobs and
Growth Tax Relief Reconciliation Act (JGTRRA), as amended. In addition,
section 7(e) exempts from the scorecards the cost of extending AMT
relief through 2011, and section 7(d) exempts from the scorecards the
cost of extending a portion of estate and gift tax relief through 2011.
The PAYGO scorecards include a current policy adjustment for the
provision of the Small Business Jobs Act of 2010 that amended Section
179(b) of the Internal Revenue Code to extend and increase expensing
limitations for small businesses. The scorecards also include current
policy adjustments for three provisions of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010, Public Law
111-312: the two-year extension of the middle-class tax cuts, the two-
year extension of AMT relief, and the amount of the estate tax relief
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that would correspond to a two-year extension of estate and gift taxes
at the tax rates, exemption amount, and related parameters in effect in
2009. The Patient Protection and Affordable Care Act, Public Law 111-
148, also included a current policy adjustment for a provision
affecting the adoption credit, which was originally enacted as a
middle-class tax cut in EGTRRA.
Legislation Designated as an Emergency
As shown on the scorecards, five laws were enacted that contain
provisions that received an emergency designation under the Statutory
PAYGO Act: The Temporary Extension Act of 2010, Public Law 111-144; the
Continuing Extension Act of 2010, Public Law 111-157; the Unemployment
Compensation Extension Act of 2010, Public Law 111-205; an Act to
extend the deadline for Social Services Block Grant expenditures of
supplemental funds appropriated following disasters occurring in 2008,
Public Law 111-285; and the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010, Public Law 111-312. The
total costs excluded through emergency designations were $570.1 billion
over 2010-2015 and $545.1 billion over 2010-2020. Although shown on the
scorecards, the budgetary effects of provisions designated as
emergencies are not included in the PAYGO effects shown on the
scorecards, as specified by Section 4(g) of the PAYGO Act.
Emergency Offsets
Scorekeeping guidelines adopted by the Office of Management and
Budget, the Congressional Budget Office, and the Congressional budget
committees preclude scoring savings for the subsequent repeal of
legislative provisions that were designated as emergency spending when
enacted. Although the laws repealing the emergency provisions are
reported on the PAYGO scorecards maintained by OMB, the savings
associated with repeal are not included in the balances on the
scorecards that are used to determine the need for a sequestration. Two
such laws were enacted during the second session of the 111th Congress:
The Education, Jobs and Medicaid Assistance to States Act, Public Law
111-226, and the Healthy, Hunger-Free Kids Act of 2010, Public Law 111-
296. These adjustments excluded $12.0 billion of savings over 2010-2015
and $16.5 billion of savings over 2010-2020.
Total Exclusions
In total, a net of $883.8 billion in costs over 2010-2020 were
enacted by Congress but excluded from the PAYGO scorecards through
current policy adjustments, emergency designations, or other
adjustments. Of that amount, $894.0 billion of costs were enacted in
the Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010, Public Law 111-312. All other exemptions or
exclusions produced a net of $10.2 billion in uncounted savings.
III. Sequestration Order
As shown on the scorecards, the budgetary effects of PAYGO
legislation enacted since enactment of the PAYGO Act did not result in
a ``debit'' on either the five-year or the ten-year scorecard in the
budget year, 2011, which means that costs for the budget year as shown
on the scorecards do not exceed savings for the budget year. For this
reason, a sequestration order is not necessary and is not included in
this Report.
The savings shown on the scorecards for 2011 will be removed from
the scorecards that are used to record the budgetary effects of PAYGO
legislation enacted in the first session of the 112th Congress. The
savings shown in 2012 through 2020 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 Congress.
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[FR Doc. 2011-1064 Filed 1-19-11; 8:45 am]
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