[Federal Register Volume 85, Number 17 (Monday, January 27, 2020)]
[Notices]
[Pages 4719-4721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01290]
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OFFICE OF MANAGEMENT AND BUDGET
2019 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. The Act requires that OMB issue an
annual report and a sequestration order, if necessary.
FOR FURTHER INFORMATION CONTACT: Erin O'Brien. 202-395-3106.
SUPPLEMENTARY INFORMATION: This report can be found at https://www.whitehouse.gov/omb/paygo/.
Authority: 2 U.S.C. 934.
Kelly A. Kinneen,
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 PAYGO
legislation enacted during the first session of the 116th 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 2020,\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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The budget year balance on each of the PAYGO scorecards is zero
because two laws, the Bipartisan Budget Act of 2019 (Pub. L. 116-37),
and the Further Continuing Appropriations Act, 2020, and Further Health
Extenders Act of 2019 (Pub. L. 116-69), directed changes to the
balances of the scorecards. Public Law 116-37 removed all balances
included on the scorecards at the time of enactment, and Public Law
116-69 shifted the debits on both scorecards from fiscal year 2020 to
fiscal year 2021. The changes directed by these laws are discussed in
more detail in section IV of this report.
During the first session of the 116th Congress, no laws with PAYGO
effects were enacted with emergency requirements under section 4(g) of
the PAYGO Act, 2 U.S.C. 933(g). Six laws had estimated budgetary
effects on direct spending and/or revenues that were excluded from the
calculations of the PAYGO scorecards due to provisions excluding all or
part of the law from section 4(d) of the PAYGO Act, 2 U.S.C. 933(d).
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 after the budget year or affects revenues
in any year.\2\ For a more complete description of the Statutory PAYGO
Act, see Chapter 11, ``Budget Concepts,'' of the Analytical
Perspectives volume of the 2020 President's Budget, found on the
website of the U.S. Government Printing Office (https://www.govinfo.gov/content/pkg/BUDGET-2020-PER/pdf/BUDGET-2020-PER.pdf).
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\2\ Provisions in appropriations acts that affect direct
spending in the years after the budget year (also known as
``outyears'') or affect revenues in any year are considered to be
budgetary effects 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 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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This PAYGO Act's requirement of deficit neutrality is based on two
cumulative scorecards that tally the cumulative budgetary effects of
PAYGO legislation as averaged over rolling 5- and 10-year periods
starting with the budget year. The 5-year and 10-year PAYGO scorecards
for each congressional session begin with the balances of costs or
savings carried over from previous sessions and then tally the costs or
savings of PAYGO laws enacted in the most recent session. The 5-year
PAYGO scorecard for the first session of the 116th Congress began with
balances of costs of $3,293 million in 2020 and $1,646 million in 2021
through 2023. Added to those balances were the budgetary effects of
PAYGO legislation through Public Law 116-36. Section 102 of Public Law
116-37 eliminated those balances, resetting each year of the scorecards
to zero. The completed 5-year scorecard for the session shows that
PAYGO legislation enacted during the session was estimated to have
PAYGO budgetary effects that increased the deficit by an average of
$514 million each year from 2020 through 2024.\3\ Section 1801 of
Public Law 116-69 deducted the costs from the scorecard in 2020 and
added those costs to the scorecard in 2021. Therefore, the 2020 column
of the scorecard is zero and the 2021 column reflects a debit of $1,028
million.
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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. Eleven of the bills enacted during this session
had such a congressional estimate and therefore OMB was required to
provide an estimate for the remaining PAYGO laws enacted during the
session.
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The 10-year PAYGO scorecard for the first session of the 116th
Congress began with balances of costs of $2,064 million in 2020 and
$1,032 million in 2021 through 2028. Added to those balances were the
budgetary effects of PAYGO legislation through Public Law 116-36.
Section 102 of Public Law 116-37 eliminated those balances. The
completed 10-year scorecard for the session shows that PAYGO
legislation for the session increased the deficit by an average of $657
million each year from 2020 through 2029. Section 1801 of Public Law
116-69 deducted the costs from the scorecard in 2020 and added those
costs to the scorecard in 2021. Therefore, the 2020 column of the
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scorecard is zero and the 2021 column reflects a debit of $1,314
million.
In the first session of the 116th Congress, 33 laws were enacted
that were determined to constitute PAYGO legislation. Of the 33 enacted
PAYGO laws, 14 laws were estimated to have PAYGO budgetary effects
(costs or savings) in excess of $500,000 over one or both of the 5-year
or 10-year PAYGO windows. These were:
Medicaid Extenders Act of 2019, Public Law 116-3;
Consolidated Appropriations Act, 2019, Public Law 116-6;
Pesticide Registration Improvement Extension Act of 2018;
Public Law 116-8;
John D. Dingell, Jr. Conservation, Management, and
Recreation Act, Public Law 116-9;
Medicaid Services Investment and Accountability Act of
2019, Public Law 116-16;
Additional Supplemental Appropriations for Disaster Relief
Act, 2019, Public Law 116-20;
Blue Water Navy Vietnam Veterans Act of 2019, Public Law
116-23;
Taxpayer First Act, Public Law 116-25;
To provide for a 2-week extension of the Medicaid
community mental health services demonstration program, and for other
purposes, Public Law 116-29;
Sustaining Excellence in Medicaid Act of 2019, Public Law
116-39;
Fostering Undergraduate Talent by Unlocking Resources for
Education Act, Public Law 116-91;
National Defense Authorization Act for Fiscal Year 2020,
Public Law 116-92;
Consolidated Appropriations Act, 2020, Public Law 116-93;
and
Further Consolidated Appropriations Act, 2020, Public Law
116-94.
In addition to the laws identified above, 19 laws enacted in this
session were estimated to have negligible budgetary effects on the
PAYGO scorecards--costs or savings of less than $500,000 over both the
5-year and 10-year PAYGO windows.
II. Budgetary Effects Excluded From the Scorecard Balances
Six laws enacted in the first session of the 116th Congress had
estimated budgetary effects on direct spending and revenues that were
excluded from the calculations for the PAYGO scorecards due to
provisions in law excluding all or part of the law from section 4(d) of
the PAYGO Act. Two laws were excluded entirely from the scorecards:
Never Forget the Heroes: James Zadroga, Ray Pfeifer, and
Luis Alvarez Permanent Authorization of the September 11th Victim
Compensation Fund Act, Public Law 116-34; and
Bipartisan Budget Act of 2019, Public Law 116-37.
In addition, budgetary effects in four laws were excluded by
provisions excluding certain portions of those laws from the
scorecards:
Consolidated Appropriations Act, 2019, Public Law 116-6;
Continuing Appropriations Act, 2020, and Health Extenders
Act of 2019, Public Law 116-59;
Further Continuing Appropriations Act, 2020, and Further
Health Extenders Act of 2019, Public Law 116-69; and
Further Consolidated Appropriations Act, 2020, Public Law
116-94.
III. PAYGO Scorecards
Statutory Pay-as-You-Go Scorecards
[In millions of dollars; negative amounts portray decreases in deficits]
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2020 2021 2022 2023 2024
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First Session of the 116th Congress....... 408 408 408 408 408
Balances from Previous Sessions........... 3,293 1,646 1,646 1,646 0
Elimination of balances pursuant to Sec. -3,187 -1,540 -1,540 -1,540 106
102 of Public Law 116-37.................
Deduction of the budget year debit -514 514 0 0 0
pursuant to Sec. 1801 of Public Law 116-
69.......................................
5-year PAYGO Scorecard.................... 0 1,028 514 514 514
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2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
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First Session of the 116th Congress....... 396 396 396 396 396 396 396 396 396 396
Balances from Previous Sessions........... 2,064 1,032 1,032 1,032 1,032 1,032 1,032 1,032 1,032 0
Elimination of balances pursuant to Sec. -1,803 -771 -771 -771 -771 -771 -771 -771 -771 261
102 of Public Law 116-37.................
Deduction of the budget year debit -657 657 0 0 0 0 0 0 0 0
pursuant to Sec. 1801 of Public Law 116-
69.......................................
10-year PAYGO Scorecard................... 0 1,314 657 657 657 657 657 657 657 657
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IV. Legislative Revisions to the PAYGO Scorecards
Two laws were enacted prior to issuance of this report that
required direct adjustments to the totals on the PAYGO scorecards.
A. Elimination of Balances
Section 102 of Public Law 116-37, the Bipartisan Budget Act of 2019
(BBA), includes a provision that states, ``Effective on the date of
enactment of this Act, the balances on the PAYGO scorecards established
pursuant to paragraphs (4) and (5) of section 4(d) of the Statutory
Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)) shall be zero.''
Accordingly, these scorecards show the removal of the balances on the
scorecards from laws enacted prior to the BBA.
B. Deduction of Budget Year Debit From the 5- and 10-Year Scorecards
Section 1801 of Public Law 116-69, Further Continuing
Appropriations Act, 2020, and Further Health Extenders Act of 2019,
includes a provision that states, ``For the purposes of the annual
report issued pursuant to section 5 of the Statutory Pay-As-You-Go Act
of 2010 (2 U.S.C. 934) after adjournment of the first session of the
116th Congress, and for determining whether a sequestration order is
necessary under such section, the debit for the budget year on the 5-
year scorecard, if any, and the 10-year scorecard, if any, shall be
deducted from such scorecard in 2020 and added to such scorecard in
2021.'' Accordingly, both the 5- and 10-year scorecards deduct the
debit from 2020 and add that debit to 2021.
V. Sequestration Order
As shown on the scorecards, the budgetary effects of PAYGO
legislation enacted in the first session of the 116th
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Congress, combined with section 102 of Public Law 116-37 and section
1801 of Public Law 116-69, resulted in zero costs on both the 5-year
and the 10-year scorecard in the budget year, which is 2020 for the
purposes of this Report. Because the costs for the budget year, as
shown on the scorecards, were deducted from the budget year and added
to the subsequent 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.\4\
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\4\ Joint Committee reductions for 2020 were calculated and
ordered in a separate report and are not affected by this
determination. See: https://www.whitehouse.gov/wp-content/uploads/2019/03/2020_JC_Sequestration_Report_3-18-19.pdf.
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The totals shown in 2021 through 2029 will remain on the scorecards
that are used to record the budgetary effects of PAYGO legislation
enacted in the second session of the 116th Congress, and will be used
in determining whether a sequestration order will be necessary in the
future. On the 5-year scorecard for the second session of the 116th
Congress, 2021 through 2024 will show balances of costs. On the 10-year
scorecard, 2021 through 2029 will show balances of costs.
[FR Doc. 2020-01290 Filed 1-24-20; 8:45 am]
BILLING CODE 3110-01-P