-
https://clinton.presidentiallibraries.us/files/original/e6eed7a3001628e23f0eb3d14a7d3c5d.pdf
3715a6c7f8b331c48d3f073a5b83e825
PDF Text
Text
FOIA Number:
2006-0469-F (2)
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Speechwriting
Series/Staff Member:
Michael Waldman
Subseries:
OA/ID Number:
14454
FolderlD:
Folder Title:
MS - 1995 Budget: December 15, 1995 Offer
Stack:
Row:
Section:
Shelf:
Position:
S
92
4
3
3
�December 27, 1995 (1:15pm)
URAI
7-YEAR SAVINGS - ADMINISTRATION OFFER OF DECEMBER 15, 1995, DASCHLE, COALITION, AND REPUBLICANS
TABLE OF CONTENTS
I.
WELFARE-RELATED
OVERVIEW OF WELFARE-RELATED AND LOW INCOME TAX PROVISIONS
4
FOOD STAMP PROGRAM . ,
7
CHILD NUTRITION
10
SSI .
13
IMMIGRATION .
:
AFDC, JOBS, CHILD CARE, CHILD SUPPORT, AND CHILD PROTECTION
16
.
19
SOCIAL SERVICES BLOCK GRANT
24
EITC AND OTHER LOW INCOME REVENUE CHANGES
25
II.
OTHER NON-HEALTH
EDUCATION
29
MINIMUM WAGE
34
UNEMPLOYMENT INSURANCE
35
PENSION ASSET REVERSIONS
36
FEDERAL CIVILIAN EMPLOYEE RETIREMENT AND HEALTH
37
VETERANS
39
MILITARY RETIREMENT
41
�NATIONAL DEFENSE STOCKPILE
42
SPECTRUM AUCTIONS .
43
COMMERCE
46
TRADE
49
AGRICULTURE
50
ENERGY
58
HOUSING/BANKING
71
McKINNEY ACT
79
NATURAL RESOURCES
80
NORTHERN MARIANAS
•
Ill
TRANSPORTATION
112
DEBT COLLECTION
122
PUERTO RICO
123
CPI AND COLAS
124
III.
HEALTH
MEDICARE
Overview
Managed Care Overview
Increasing beneficiary choice of plans
Payment Methods
125
125
129
129
132
2
�Beneficiary Protections
Savings - Part A
Savings - Part B
Fraud and Abuse Prevention
134
136
145
150
MEDICAID
'Overview
General Spending Limits
Reforming Disproportionate Share
Hospital (DSH) Payments . .
State Flexibility and Other Changes
152
152
154
HEALTH INSURANCE REFORMS
167
IV.
158
159
REVENUES
Proposals Primarily Affecting
Individuals
173
Corporate Subsidies, Loophole Closers,
and Other Measures
192
�OV ERVIEW OF WELFARE-RELATED AND LOW INCOME TAX PROVISIONS - DRAFT
December 27, 1995 (1:19pm)
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Food programs
Food programs
Food programs
Food programs
Reduces Food Stamps and Child Nutrition
spending. Maintains current funding
structure. (-$22 billion)
(-$22 billion)
Cuts in food programs are similar to those
in the Administration package. (-$16
billion)
Deeper Food Stamp cuts, optional Food
Stamp block grant. Food Stamp cap
could reduce assistance further. 7-State
school lunch experiment. (-$31 billion in
cuts; $1.8 billion in TEFAP add-backs.
Also USDA estimates -$7 billion effect of
Food Stamp cap.)
SSI
SSI
SSI
SSI
Reforms SSI without cutting off assistance
to children currently receiving help or
reducing benefits to severely disabled
children. (-$7 billion)
(-$10 billion)
190,000 children would lose SSI benefits
they now receive, and benefits would be
reduced somewhat for many elderly and
disabled adults. (-$14 billion)
190,000 children would lose SSI benefits
they now receive and assistance to many
new recipients would be cut by 25 percent
~ affecting 735,000 children in 2002.
(-$15 billion, including $3 billion in
DA&A savings being used to offset the
earnings test change.)
Immigrants
Immigrants
Immigrants
Immigrants
Makes sponsors of immigrants more
responsible for those they bring in the
country. When sponsors' income is above
the median, AFDC, SSI, and the Food
Stamp Program would deem it available
until legal immigrants attain citizenship.
(-$5 billion)
(-$5 billion)
Immigrant provisions are similar to the
Administration's. (-$5 billion)
Over one million legal immigrants would
lose Food Stamp, SSI, and Medicaid
assistance they now receive, with no
exceptions for the very elderly or those
becoming disabled after immigrating.
(-$20 billion with Medicaid block grant;
-$24 billion without Medicaid block grant)
�OVERVIEW OF WELFARE-RELATED AND LOW INCOME TAX PROVISIONS - DRAFT
December 27, 1995 (1:19pm)
Administration OITer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
AFDC
AFDC
AFDC
AFDC
No net reductions in AFDC, JOBS, and
child care
Child Protection
(3.7 billion)
Provides funds for expanded welfare-towork programs. Ensures funding is
adequate during regional or national
recessions. Allows states to provide an
extra year of transitional Medicaid for
families leaving welfare for work.
($2 billion)
Child Protection
Child Protection
Current law.
Maintains current funding structure that
responds to changing foster care
caseloads.
SSBG
10 percent reduction effective 1996.
(-$1.9 billion).
SSBG
10 percent reduction effective 1996.
(-$1.9 billion).
Welfare-Related Savings
Welfare-Related Savings
-$36 billion excluding Medicaid
-$37 billion including Medicaid.
-$37 billion including Medicaid.
-$37 billion excluding Medicaid
-$35 billion, including Medicaid
.5
Child Protection
Block grants child protective services
(-$ 6 billion)
SSBG
(-$1.9 billion).
Strict work requirements and limited
resources for child care are likely to
reduce states' ability to run effective
welfare-to-work programs. Contingency
funding will be inadequate in the event of
a regional or national recession.
($3 billion, including $1 billion in Food
Stamp effects)
SSBG
10 percent reduction effective 1997
(-$1.7 billion).
Welfare-Related Savings
-$64 billion, excluding Medicaid. Medicaid
effects would be -$5 billion, plus the effect of
ending categorical eligibility for AFDC
recipients.
�OVERVIEW OF WELFARE-RELATED AND LOW INCOME TAX PROVISIONS - DRAFT
December 27, 1995 (1:19pm)
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Low Income Tax Provisions
Low Income Tax Provisions
Low Income Tax Provisions
Low Income Tax Provisions
($7 billion in tax savings)
Includes'the Administration's EITC
provision and one other small change.
Makes the Dependent Care Tax Credit
refundable, while reducing its cost.
Includes AFDC, Food Stamps, and SSI in
taxable income.
Increases taxes on about 12 million
families, including about 7 million who are
worse off even with other tax changes in
the bill by repealing the credit for childless
workers, redefining adjusted gross income
for the EITC, scaling back the scheduled
1996 increase for many 2+ child families,
and increasing the phase-out rates for
many families. ($26 billion in tax savings.)
Strengthens EITC compliance provisions
and makes undocumented and temporary
aliens ineligible. ($1.6 billion in tax
savings)
($12 billion in tax savings estimated.
Number appears not to include costs of
making DCTC refundable.)
Total Low Income Changes
Total Low Income Changes
-$39 billion
-$43 billion
-$47 billion
Total Low Income Changes
-$90 billion, excluding Medicaid.
Absent a Medicaid block grant, cuts
would be -$95 billion or deeper.
�December 27, 1995 (1:20pm)
NUTRITION PROGRAMS - DRAFT
FOOD STAMP PROGRAM
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
No block grant or block grant option.
No block grant or block grant option.
Optional food stamp block grant
eliminates national entitlement to basic
minimum food allowance for the needy.
No cap on food stamp spending.
No cap on food stamp spending.
Annual spending cap on food stamps with
no cushion for error and insufficient
mechanisms to raise the cap. USDA
estimates the cap will be hit in 1996
Would result in across-the-board cuts if
economy declines or cap projections are
inaccurate.
Reduces food stamp spending by $19
billion (excluding immigrants.)
Similar to Administration.
Reduces food stamp spending by $28
billion or 20 percent in 2002. (excluding
cuts to immigrants)
Main elements of package:
1 Adjusts maximum benefit to 100
percent of the Thrifty Food Plan.(-$6.3
billion)
Main elements of package;
1. Similar to Administration. (-$6.3
billion)
Main elements of package:
1. Similar to Administration (-$6 2 billion)
2. Reduces standard deduction, and
indexes thereafter. This cut is larger than
the Republican cut because it is more
equitable relative to other their cuts
discussed below. (-$8.1 billion)
2. Freezes standard deduction for two
years. (-$2.4 billion)
2. Freezes the standard permanently
(-$5.4 billion)
3 Counts all energy assistance as
income. (-$2.8 billion)
3. Counts most energy assistance as
income.(-$2.7 billion)
3. Similar to Administration (-$3 billion)
4 Permit states to use a standard utility
allowance rather than actual costs(-$0.5 b)
4. No such provision
4. Similar to Administration (-$0.5 billion)
�NUTRITION PROGRAMS - DRAFT
December 27, 1995 (1:20pm)
FOOD STAMP PROGRAM
Administration OITer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
5 Prevents minor parents living in their
parents' households from receiving
benefits as family heads. (-$0.1 billion)
5. Similar to Republicans. (-1.6 billion)
5. Prevents young parents under age 22
and living in their parents' households
from receiving benefits as family heads.
(-$1.7 billion)
6. Allow the vehicle allowance to index
from the current level (-$0.3 billion)
6. No such provision.
6. Freeze the value of the vehicle
allowance (-$1 billion)
7. Strengthens program integrity.
7. Includes Administration's program
integrity provisions.
7. Includes some of the Administration's
food stamp program integrity provisions ;
others dropped due to a procedural rule.
8 Other minor provisions.
8. Some of the Administration's plan.
8. Similar to the Administration's plan
Provisions Not in Administration Bill:
1 Maintains current law which would
permit those families with shelter costs in
excess of 50 percent of their income to
deduct the full amount of those costs.
Provisions Not in Administration Bill:
1. No such provision.
Provisions Not in Administration Bill:
1. Cap the excess shelter deduction at
1996 level. (-$4.1 billion)
2. Maintains the current law safety net
and work requirement.
2. Six month time limit for childless adults
who are not working or in a training
program. The State must offer a training
slot to those they would otherwise
disqualify. (-$0.2 billion)
2. Mandated 4 month time limit for
childless adults. States are not required to
provide training to someone who would
otherwise be cut off.
(-$4.6 billion)
3. No such provision.
3. No such provision.
3. Creates new $300 million in annual
mandatory spending for commodity
distribution programs starting in 1997.
($1.8 billion)
�NUTRITION PROGRAMS - DRAFT
December 27, 1995 (1:20pm)
FOOD STAMP PROGRAM
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Food Stamp Sub-Total
Food Stamp Sub-Total
Food Stamp Sub-Total
Food Stamp Sub-Total
Food Stamps -$13 .8 billion
(excluding immigrant provisions)
Food Stamps -$27.5 billion;
(excluding immigrant provisions)
TEFAP $1.8 billion
Food Stamps, -$19 billion
(excluding immigrant provisions)
Food Stamps, -$19 billion
�NUTRITION PROGRAMS - DRAFT
December 27, 1995 (1:20pm)
CHILD NUTRITION
Administration Offer of 12/15/95
(7-Year Plan)
Coalition
Block grants
Republicans
Block grants
Daschle
Block grants
No child nutrition block grants.
No child nutrition block grants.
School Lunch block grant demonstration
projects in 7 USDA regions.
Child and Adult Care Feeding Program
Child and Adult Care Feeding Program
Child and Adult Care Feeding Program
Better targets subsidies to Family Day
Care Homes serving low-income kids and
rounds down meal reimbursement rates to
the nearest cent. ($2.5 billion)
Administration's policy on Family Day
Care Homes without rate round down.
(-$2.2 billion)
Administration's proposal, but with
slightly deeper rate cut.
(-$2.8 billion)
School Meal Programs
Current law
School Meal Programs
Includes:
- Rounding down meal and commodity
reimbursement rates to the nearest cent.
Immigrants
Immigrants
No immigrant provisions limiting
children's eligibility for Child Nutrition
programs based on immigrant status.
No immigrant provisions limiting
children's eligibility for Child Nutrition
programs based on immigrant status.
School Meal Programs
Includes:
- Reducing Summer reimbursement rates.
Immigrants
Citizen/legal resident eligibility test
requires all children who are citizens to fill
out eligibility forms — roughly doubling
the number of applications that must be
filled. (-$.5 billion, included in immigrant
total)
Child Nutrition Sub-Total
Child Nutrition Sub-Total
Child Nutrition Sub-Total
Child Nutrition Sub-Total
-$3 4 billion
-$3 .4 billion
-$2.7 billion
-$3.7 billion (excl. immigrant provisions)
10
�NUTRITION PROGRAMS - DRAFT
December 27, 1995 (1:20pm)
CHILD NUTRITION
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Nutrition Programs Total
Nutrition Programs Total
Nutrition Programs Total
Nutrition Programs Total
-$22 billion in nutrition programs
-$22 billion in nutrition programs
$17 billion in nutrition programs
- $31 billion in Food Stamps and
Child Nutrition;
$1.8 billion in commodity distribution
11
�FOOD STAMPS AND CHILD NUTRITION DECISIONS
The Administration and Republicans agree to -$22.4 billion in savings in this area (-$19 Food Stamps, -$3.4 Child Nutrition)
The Republican plan includes an additional -$8.6 in Food Stamp reductions and -$0.3 in Child Nutrition.
1)
Optional Food Stamp Block Grant Permit an optional block grant of this 100 percent federal benefit program with no income or eligibility criteria. While benefits are to
remain 100 percent for food assistance, eligibility criteria would be entirely up to the States.
Optional food stamp block grant (Republican)
-$0.9 billion
Maintain the federal guarantee for a minimum national benefit (Coalition, Administration)
-0-
2)
Cap on Food Stamp Spending Cap food stamps spending at CBO's estimates for the program over the next seven years no cushion for estimating error The cap
eliminates the notion of food stamps as a program which expands to meet the needs of low-income families. If spending were to exceed the cap, benefits would have to be
reduced on a pro rata basis nationwide, or Congress would have to enact a savings to offset the cost of lifting the cap. USDA estimates that the program requires an $7
billion more than the cap provides over 7 years.
3)
Time-Limit. Terminate food stamp benefits after four months for childless, able-bodied adults who are not performing workfare, or enrolled in specific employment and
training programs, or working 20 hours per week. The State is not required to provide training.
Four month time limit with no requirement to provide training/workfare slots (Republican)
-$4.6 billion
Six month time limit with a requirement to provide training/workfare slots (Coalition)
-$0.2 billion
No time limit (Administration)
-0-
4)
Food Stamp Shelter Deduction. Freeze the current deduction level and prohibit families from deducting shelter expenses in excess of 50 percent of household income (This
provision was enacted as a part of the OBRA 93 food stamp changes.)
Freeze the excess shelter deduction at the 1996 level (Republican) -$4.1 billion
Retain current law.
-0-
5)
Structure and Size of the Food Stamp Cuts. The Republican proposal does not include the Administration's $19 billion in its entirety. Administration provisions cut all
recipients' benefits by a small amount, but permit indexing within the basic benefit structure. The Republican package erodes the value of benefits over time. The key issue is
whether or not to use the Administration plan or the Republican plan as the base for negotiations. In addition, the Republican plan cuts food stamps by an additional $1.8
billion in order to create a new poorly targeted commodities entitlement program.
6)
Child Nutrition Block Grant Demonstration. A School Lunch/Breakfast Block Grant Demonstration would allow a block grant to be established in each of the seven
USDA regions on a demonstration basis.
Permit Child Nutrition Block Grants (Republican)
Estimate not available.
Maintain the federal eligibility, benefits and nutrition standards (Administration/Coalition)
-0-
12
�SSI - DRAFT
December 27, 1995 (1:20pm)
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
"Grand fathering"
"Grand fathering"
"Grand fathering"
"Grand fathering"
Current recipients remain on the rolls.
Limits eligibility prospectively for
childhood disability. 200,000 future
applicants who would be eligible in 2002
under current law would not get benefits.
Partial Benefits
Retains full cash benefits for all eligible
children.
Drug Addiction and
Alcoholism
Ends eligibility because of drug addiction
or alcoholism. Provides $50 million for
each of two years for drug treatment.
Same as Republicans.
Limits eligibility for childhood disability
for current recipients and future
applicants. 190,000 children now on the
rolls would lose benefits. 320,000
children (110,000 current recipients and
210,000 future applicants) who would be
eligible in 2002 under current law will not
get benefits.
1
Partial Benefits
Partial Benefits
Same as Administration.
Drug Addiction and
Alcoholism
Drug Addiction and
Alcoholism
Same as Administration, except provides
$100 million for each of four years for
drug treatment.
1
Partial Benefits
Children determined not to need personal
care assistance to remain at home would
be eligible for only 75 percent of the full
benefit amount. In the year 2002, some
735,000 children (about 65 percent)
would receive reduced benefits
Drug Addiction and
Alcoholism
Same as Administration. [Note: Section
was deleted from conference bill because
it was included as an offset in the Senior
Citizens' Right-to-Work Act (i.e.,
earnings test bill).]
The difference between 190,000 current recipient children now and 110,000 in 2002 represents children who, between 1995 and 2002, reach the age of eighteen, have impairments that
improve, or die.
13
�December 27, 1995 (1:20pm)
SSI - DIM FT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Other
Other
Other
Other
Requires disabled adults expected to
improve to reapply every 3 years.
Reduces unearned income exclusion from
$20 to $15 per month.
No provision.
SSI Total
Childhood disability, -$4.3 billion;
Dmg/alcohol addiction, -$2.8 billion
(including -$0.6 billion for Medicaid)
SSI Total
-$9.5 billion
No provision.
SSI Total
Childhood disability, -$8.1 billion;
Drug/alcohol addiction, -$2.5 billion
(including -$0.6 billion for Medicaid);
Other, -$3.0 billion (including $0.5 billion
for Medicaid)
SSI Total
Childhood disability, -$12.4 billion
Drug/alcohol addiction, -$2.3 billion
(-$2.9 billion without Medicaid block
grant)
14
�SSI BENEFITS
Decisions
The Administration and Republicans agree on $6.5 billion in savings (not including Medicaid savings) in this area. [Note: $2.3 billion of this amount, from ending SSI eligibility
because of drug addiction or alcoholism, has been included as an offset in "earnings test bill."] Republican proposal would cut an additional $7.0 billion.
1.
Children: Benefit levels. 2-tier benefit system for severely disabled children coming on the rolls (with second tier eligible for 75 percent of full benefits), or all severely
disabled children eligible for full cash benefits. Under Republicans' two-tier system, in 2002, some 735,000 children would get reduced benefits.
Two-tiered system (Republican):
Full cash benefits (Administration; Coalition):
2
Children: Grand-fathering. Children currently on rolls who would not meet tightened eligibility requirements would begin to lose benefits in January 1997, or tightened
requirements would not be applied to children currently on rolls. Under Republican proposal, 190,000 children now on rolls would lose benefits.
Lose benefits as of January 1, 1997 (Republican; Coalition):
New rules not applied to current recipients (Administration):
3
$3 .8 billion
-0-
Adults: Reapplication. Adults with disabilities expected to improve would be required to reapply for benefits every three years, QT no reapplication requirement. Under
current law, continuing disability reviews are conducted periodically to determine whether an individual is still eligible for benefits. Under Coalition proposal, eligible
recipients who fail to reapply in a timely manner could have benefits suspended for a significant period of time.
Reapplication (Coalition):
No reapplication (Administration; Republican):
4
$4.2 billion
-0-
$1.9biilion
-0-
Adults: Unearned income exclusion Unearned income exclusion would be reduced from $20 per month to $15 per month, effectively reducing benefits of SSI recipients
who also receive social security benefits by $60 per year, QT no change to unearned income exclusion. Under Coalition proposal, over 3 million recipients annually would
have their benefits reduced.
Reduce to $ 15 per month (Coalition):
Maintain at $20 per month (Administration; Republican):
$1.1 billion
-0-
15
�December 27, 1995 (1:20pm)
IMMIGRATION - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Responsibility of Sponsors
Responsibility of Sponsors
Responsibility of Sponsors
Responsibility of Sponsors
Deems some of sponsors' income to
immigrant until citizenship in eligibility
calculations for AFDC-repIacement TEA,
Food Stamps, and SSI. Most of the same
exemptions as the Administration plus an
additional exemption for elderly over 75.
States required to deem sponsors' income
until citizenship for state run Medicaid,
welfare block grant, SSBG, and other
federal means-tested programs. Option
of banning eligibility for these programs.
Ineligibility for Benefits
Ineligibility for Benefits
Extends until citizenship the deeming of
sponsors' income for SSI, AFDC and
Food Stamps. Exceptions for those
currently on the rolls, those disabled after
immigration, those whose sponsors'
incomes are below the median, and others.
Ineligibility for Benefits
No comparable provision. The
Administration's plan relies on provisions
which hold sponsors responsible for the
immigrants they sponsor, as described
above.
Ineligibility for Benefits
No comparable provision
Most legal immigrants denied SSI and
Food Stamps, including those now on the
rolls. New immigrants are denied
eligibility for all other federally funded,
needs-based programs for firstfiveyears
in the country. Exemptions: naturalized
citizens, asylees, refugees, deportees,
veterans and their families, those who
become eligible for Social Security by
working 40 quarters.
No exemption for legal immigrants who
become disabled after entering the U.S. or
the elderly over 75. (Savings would drop
by about one half ~ from $20 billion to
about $10 billion — if both exceptions
were added in their most comprehensive
form.)
16
�IMMKiKA'l ION - DRAFT
December 27, 1995 (1:20pm)
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Medicaid
Medicaid
Medicaid
Medicaid
No restrictions on Medicaid for legal
permanent residents.
Restrictions on Illegal Immigrants
No restrictions on Medicaid.
Restrictions on Illegal Immigrants
Continues current law restrictions for
illegal immigrants with schools
not required to verify status.
Other Provisions
Continues current law restrictions for
illegal immigrants - same as
Administration.
Other Provisions
Other Provisions
Conforms documented aliens' eligibility
rules for major Federal benefit programs.
Immigration Total
Restrictions on Illegal Immigrants
No provision to conform eligibility rules.
Immigration Total
States would be required to deem
sponsor's income until citizenship and
have the option to ban legal immigrants.
Savings scored to this provision would
increase by about $4 billion if the proposal
did not include a Medicaid block grant.
Restrictions on Illegal Immigrants
Conference bill requires most programs,
including School Lunch and WIC, to
verify citizenship and report illegal
immigrants. This would place a massive,
unprecedented burden on schools and
localities.
Other Provisions
Conforms documented aliens' eligibility
rules for all major programs.
Immigration Total
-$5.5 billion.
-$5 4 billion, including -$0.8 billion in
Medicaid.
17
Immigration Total
-$21.0 billion, with Medicaid block grant.
Without Medicaid block grant: about -$25
billion.
�BENEFITS TO IMMIGRANTS: DECISIONS
1 Rules that strengthen the responsibility of sponsors of immigrants. All proposals would attribute a portion of a sponsor's income to sponsored immigrants for purposes of
determining eligibility for programs until the immigrant becomes a citizen (i.e., "sponsor deeming"). Differences exist over exemptions for those who become disabled after they
enter the U.S., the elderly over 75, those with significant U.S. employment history and others.
Deem until citizenship but exempt disabled and low income sponsors (Administration.) -$5.4 billion (likely CBO)
Deem until citizenship but exempt disabled and elderly over 75 (Coalition).
-$5.5 billion (CBO)
Favor banning legal immigrants (Republican):
Savings included in ban, see #2
2. Bans on eligibility of legal immigrants to SSL AFDC and Food Stamps. Unlike efforts to strengthen the responsibility of sponsors, categorical bans on immigrant's
eligibility for programs represents a fundamental change in the status of legal immigrants Large savings in this area cannot be achieved without using categorical bans on
benefits, especially for SSI benefits. Among options that ban benefits, differences exist over exemptions for the disabled, the elderly over 75 and those with work history.
Ban legal immigrants from SSI and Food Stamps, including those currently on the
rolls, with no exemptions for disabled and elderly (Republican):
No categorical bans for legal immigrants (Admin/Coalition):
- $20.2 billion (CBO)
-0-
3 Access of low income, legal immigrants to Medicaid. Potential restrictions parallel those described above for cash and food programs. Because of the importance of
preserving access to health care, restrictions oh Medicaid represent a more fundamental limitation on the rights of legal immigrants.
State option (under a block grant) to ban legal immigrants from Medicaid and
require sponsor deeming for Medicaid (Republican):
No restrictions on legal immigrants access to health care (Admin/Coalition):
-$4 .2 billion (approx.--part of block grant)
-0-
4 Restrictions on legal immigrant's access to federal and state programs and services bevond the major federal entitlement programs, including programs like school
lunch, public health clinics and Head Start. Would impose substantial new paperwork burdens on citizens and non-citizens and significant administrative costs. No savings
from discretionary programs.
Restrict legal immigrants from all programs based on need (Republican):
Current law which provides legal immigrants access to most programs (Admin/Coalition):
18
-$0.5 billions (CBO)
-0-
�December 27, 1995 (1.20pm)
AFDC, JOBS, CHILD CARE, CHILD
SUPPORT, AND CHILD
PROTECTION - DRAFT
Administration OfTer of 12/7/95
(7-Year Plan)
AFDC/JOBS/Child Care
No net reductions are assumed in the
Administration's proposal!
Coalition
Daschle
Republicans
Revised Program
Replaces AFDC with open-ended, statematched Temporary Employment
Assistance program providing dramatic
state flexibility under broad guidelines.
Eliminates Emergency Assistance (EA).
JOBS is replaced by Work First, a Statematched, capped entitlement.
Revised Program
Block-grants AFDC, Emergency
Assistance, and JOBS at roughly 1995
levels. Maintenance of effort is set at 75
percent of 1994 levels with possible
"performance bonus" reductions to 67
percent. Allowable 30 percent block grant
transfers make effective maintenance of
effort 0 percent in some States, 45 percent
or less in others. Includes $1 billion
contingency grant fund, $1.7 billion loan
fund, and $800 million population
adjustment fund.
Eligibility Restrictions
5-year time limit on cash benefits with
exemptions for: living in high
unemployment area; working 20+ hours
weekly (State option); caretakers of
children under age 1 or of incapacitated
family members; ill, disabled, or aged;
pregnancy; teen parents in school; childonly cases; additional 15 percent for
hardships. Minor parents must live at
home, with state option to deny eligibility.
Family cap option. No rental assistance for
minor parents.
Eligibility Restrictions
5-year time limit on cash benefits (shorter
at state option) with state-option 15
percent hardship exemptions. Minor
parents must live at home and stay in
school to qualify for benefits. Family cap
with state legislature opt-out provision.
19
�December 27, 1995 (1:20pm)
AFDC, JOBS, CHILD CARE, CHILD
SUPPORT, AND CHILD
PROTECTION - DRAFT
Administration OfTer of 12/7/95
(7-Year Plan)
Coalition
Republicans
Child Care
Child care for participants in work and
training and transition remains an openended entitlement. At-Risk child care
funds merged with discretionary child care
funds.
Child Care
Child care block granted at about $1.9
billion above revised CBO current law
estimates over 7 years. Health and safety
provisions are removed from current law.
Work Requirements
Work First training and job search
program replace JOBS, with work rates
rising to 52 percent. Work-fare or job
subsidy vouchers required after two years.
Work Requirements
Work requirements rise to 50 percent in
2002, but with no additional funding. All
recipients must participate after two years.
Education can not count toward
participation until 1999, and only if
combined with work. Teens in school
would not count toward participation
unless combined with work. Elimination
of Senate provisions allowing part-time
work for recipients with young kids and
counting those who leave for work vastly
increase the costs of the work program.
Distribution of Child Support
Does not eliminate $50 pass-through.
Total child support change is $0.5 billion.
Distribution of Child Support
$50 pass-through of child support to
welfare families eliminated. Total child
support change is $0.2 billion, excluding
Medicaid (-$.2 billion with Medicaid).
Related Medicaid Issues
Transitional Medicaid extended (expires
beginning of 1999); States given option
to provide two years of assistance.
Related Medicaid Issues
Stand-alone welfare bill repeals
categorical Medicaid eligibility for AFDC
recipients.
Daschle
20
�AFDC, JOBS, CHILD CARE, CHILD
SUPPORT, AND CHILD
PROTECTION - DRAFT
Administration Offer of 12/7/95
(7-Year Plan)
December 27, 1995 (1 20pm)
Coalition
Daschle
Republicans
Program Reductions
Savings from EA (about $7 billion) are
more than offset by other changes,
including increases of $6 billion in work,
child care, and transitional Medicaid.
Child Protection Services (CPS)
Maintains current law.
Child Protection Services (CPS)
Program Reductions
Over 7 years, reduces AFDC, EA, & work
by about half a billion, with a cut in 2002
of about $1.6 billion (net savings are less
due to effects on Food Stamps). Increases
child care by $1.9 billion over 7 years,
bringing the total change in AFDC, work,
and child care to about $1.5 billion.
Child Protection Services (CPS)
Maintains current law.
Child Protection Services (CPS)
Block grants the following: four openended child protection programs funding
abuse/neglect investigations, child
placements, etc. (foster care/adoption
assistance administration and training); the
Independent Living Program for foster
teens; the Family Preservation and
Support program. Cuts these programs by
about $.6 billion from CBO baseline
(12/15 offer block grants the programs at
the CBO baseline).
21
�December 27, 1995 (1:20pm)
AFDC, JOBS, CHILD CARE, CHILD
SUPPORT, AND CHILD
PROTECTION - DRAFT
Administration Offer of 12/7/95
(7-Year Plan)
Coalition
Daschle
Republicans
CPS Maintenance of Effort
States need pay only 75 percent of their
1994 contribution on the block granted
programs, after 1998. States failing to
contribute get a 5 percent funding cut
CPS Oversight Authority Overturned
The bill overturns a child protection
oversight system designed to improve
state accountability and the quality of
services children get. In addition, an
initiative to collect automated State data
on children in the system is revised
significantly.
AFDC, JOBS, Child Care,
and Child Protection Total
$0
$3 .7 billion
$2.6 billion
22
$2.8 billion
�AFDC, WORK, CHILD CARE, & CHILD PROTECTION
DECISIONS
(1)
Child Care & Work Conference bill increases child care by $2 billion, not enough to meet strict work requirements. The Administration would increase child care funding
to a level sufficient to meet work requirements^
Increase child care funds and modify work requirements (Administration):
Small child care addback (Republican):
(2)
$5 billion
$2 billion
Counter-cyclical Funding. Republicans include a $1 billion contingency fund for States with unemployment rates over threshold levels, but the amount is insufficient to
respond to State need during a recession or rise in child poverty. If there were a block grant, the Administration would increase the contingency fund to $1.8 billion, make
funds available based on numbers of children in poverty, and let more funds flow to States if national unemployment rose above 6.5 percent. Changes would not increase
costs under current economic projections. (The Coalition bill requires no contingency fund as added Federal funding flows automatically to States when need increases.)
If a block grant, responsive Counter-cyclical funding (Administration): $960 million (preliminary estimate)
Limited contingency fund (Republican):
$960 million
(3)
Maintenance of Effort.. The bipartisan Senate bill included an 80 percent maintenance of effort requirement. The conference report reduced this level to 75 percent. This
change would allow States to spend $5 billion less over seven years.
Senate 80 percent maintenance of effort requirement (Administration)
Conference 75 percent maintenance of effort requirement (Republicans)
(4)
Work Performance Bonus. The Daschle bill provided $1 billion over five years to reward States for success in moving people from welfare to work. The Conference
"performance bonus" would allow States to reduce their maintenance of effort by up to 8 percent for successful work programs.
Provide $1 billion for performance bonuses (Administration)
Reduce maintenance of effort by up to 8 percent (Republicans)
(5)
1 billion
$0
Child Protection Block Grant Republicans block grant four open-ended child protection programs (foster care and adoption assistance administration, placement services
and training) and repeal Family Preservation and Independent Living programs. Open-ended funding ensures the resources to serve low-income foster and adopted children if
caseloads exceed projected levels, while a block grant lacks flexibility. Repeal of Family Preservation ends a program enacted at this Administration's request in 1993.
Maintain current law (Administration, Coalition):
Block grant open-ended programs/repeal Family Preservation & Indep. Living (Republican):
23
$0
$0
�SOCIAL SERVICES BLOCK GRANT
(SSBG) - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
SSBG reduced by 10 percent beginning in
1996.
-$1.9 billion
Coalition
Same as Administration.
-$1.9 billion
-$1.9 billion
24
Republicans
SSBG reduced by 10 percent beginning in
1997 (original proposal was a 20 percent
cut) to save $1.7 billion. (The Labor/HHS
appropriation bills may reduce it in 1996).
States could transfer up to 30 percent of
AFDC block grants to the SSBG.
-$1.7 billion
�EITC AND OTHER LOW INCOME REVENUE CHANGES - DRAFT
(also included in REVENUES section)
Administration Offer of 12/15/95
(7-Year Plan)
EITC: Aliens and compliance issues
Strengthens compliance procedures for
certain types of questionable claims and
denies the EITC to families where the
child or a custodial parent is an
undocumented or temporary resident
alien.
December 27, 1995 (1:20pm)
Coalition
Daschle
EITC: Aliens and compliance issues
Administration proposal.
EITC: Definition of income.
EITC: Definition of income.
Current law
Republicans
EITC: Aliens and compliance issues
Administration proposal.
EITC: Definition of income.
The bill reduces the EITC by counting
untaxed social security and other
retirement income and some child support
toward the phase-out. Business and
capital losses would be added back into
adjusted gross income when calculating
the phase-out so that they do not increase
the EITC
Counts capital gains toward the $2,350
eligibility limit on asset-based income.
EITC: Childless families
Current law
EITC: Childless families
Current law
25
Counts passive losses toward the $2,350
eligibility limit on asset-based income.
EITC: Childless families
Repeals the credit for childless workers
enacted in 1993, increasing taxes on 4 3
million families.
�EITC AND OTHER LOW INCOME REVENUE CHANGES - DRAFT
(also included in REVENUES section)
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
December 27, ] 995 (1:20pm)
Coalition
Republicans
EITC: Families with children
Current law.
EITC: Families with children
Small change (see below)
EITC: Families with children
About 8 million families with children
would receive a smaller EITC. Even with
the $500 child credit and standard
deduction changes elsewhere in the bill,
about 3 million families with children
would face a net tax increase at full
implementation (2005).
EITC: Credit and phase-out (tax) rates
Current law
EITC: Credit and phase-out (tax) rates
Current law
EITC: Credit and phase-out (tax) rates
Under the conference bill, EITC would be
cut for:
one-child families above $14,850
single-parent-two-child families above
$14,000
two-parent-two-child families above
$17,750.
A separate credit rate would be
established for 3-child families between
$17,000 and $24,000.
Dependent Care Tax Credit
Current law
Dependent Care Tax Credit
Dependent Care Tax Credit
Makes the Dependent Care Tax Credit
Current law
refundable for low income workers and
reduces it for upper income workers.
Pricing appears to include only the savings
from upper income reductions, and not
include the cost of making the credit
refundable.
Tax treatment of low-income benefits
Includes AFDC, SSI, and Food Stamp
benefits in taxable income (-$5 billion).
Tax treatment of low-income benefits
Current law
26
Tax treatment of low-income benefits
Current law
�December 27, 1995 (1:20pin)
EITC AND OTHER LOW INCOME REVENUE CHANGES - DRAFT
(also included in REVENUES section)
Administration OfTer of 12/15/95
(7-Year Plan)
Coalition
Low Income Tax Total
EITC: -$1.6 billion deficit reduction
-$] .4 billion outlays and
$0.2 billion revenues
DCTC: $0
Tax Treatment of Benefits: $0
EITC: -$2.4 billion reduction
-$4.6 billion deficit reduction
Republicans
Low Income Tax Total
Daschle
Low Income Tax Total
EITC: -$2.4 billion deficit reduction
-$2.1 billion outlays and
$0.3 billion revenues
EITC: -$26 billion deficit reduction
DCTC: $4.7 billion (appears not to
include cost of making the credit
refundable);
Tax Treatment of Benefits: $5 .2 billion
DCTC: $0
Tax Treatment of Benefits: $0
27
�Eire
DECISIONS
Administration and Republicans agree on $1.6 billion in savings. The Republican proposal would cut an additional $25 billion. Even when the $500 child tax credit and modified
standard deduction are factored in, at least 7 million EITC recipients (including about 3 million families with children) would pay higher taxes at full implementation.
1
Change definition of income The Republican proposal would change the definition of (1) adjusted gross income used when calculating the EITC phase-out, and (2) the
income counted toward the new $2,350 eligibility limit on asset-based income.
Administration: Current law
Coalition:
Count net capital gains toward the $2,350 eligibility limit on asset-based income
Republicans: Count certain non-taxable income (tax-exempt interest. Social Security, child support
toward the EITC phase-out. Add back business and other losses to gross income for EITC
purposes. Count passive income toward $2,350 eligibility limit on asset-based income.
2
Increase EITC phase-out rates for families with children The Republican proposal would lower the EITC for families with children, in part to offset the tax cuts resulting
from the proposed $500 child credit.
A*
Modify scheduled 1996 increase in credit for families with two or more children The Republican proposal repeals the scheduled 1996 increase in the credit for
families with 2+ children. Adds back "enhancement factor" that effectively restores the scheduled 1996 increase for single taxpayers below $14,000 and couples below
$18,000.
Administration: Current law
Republicans (estimate includes interactions among all provisions)
B
-7.7
Increase phase-out (tax) rates. The Republican proposal increases the phase-out (tax) rate by 4 percentage points for one-child families above $14,850 and two-child
families above $17,750.
Administration: Current law
Republicans
C
-7.5
Separate credit level for families with 3+ children. The Republican proposal adds back $2 billion to "assure there would be no loss of 1996 EITC benefits relative to
current law for families with three or more children and with incomes between $17,000 and $24,000." No details are available.
Administration: Current law
Republicans
3
-0.8
-11.4
2
Repeal credit for childless workers. The Republican bill would repeal the credit for childless workers with incomes less than about $9,000 per year. This credit was enacted
in 1993 Taxes would be increased an average of $173 for 4.3 million childless families.
Administration. Current law
Republicans
-4.2
General note: JCT has not provided revised estimates for individual provisions. Individual provision estimates are 11/12/95 estimates.
28
�EDUCATION - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Student Loans
Student Loans
The Administration proposes that schools
be given "free choice" to participate in the
federal student loan program that best
meets the needs of their students. Any
school would be able to elect direct
lending or guaranteed lending.
Republicans
Student Loans
No change to current law, thereby
Virtually eliminates direct lending, by
continuing current expansion in direct loan capping the program at 10 percent of total
program.
student loan volume. This would force
out of the program 1,300 schools that
Elimination of direct scoring assumed.
entered July 1, 1995, allowing only about
100 to continue. (Under Congressional
Budget Resolution scoring rules, capping
direct lending saves $.3 billion.) Makes it
harder for students to convert guaranteed
student loans into direct loans, thereby
limiting their access to income-contingent
repayment. Reduces some subsidies to
lenders, but also reduces Secretary's
authority and resources to manage the
guaranteed program. In addition, the tax
title permits non-profit secondary markets
to move the benefits of non-profit status
into for-profit entities resulting in
substantial windfall.
To advantage banks and other
intermediaries, the Budget Resolution
directs CBO to change scoring for this
loan program only, raising the baseline by
$6.5 billion. The Administration proposes
deleting the Reconciliation bill's directed
scoring, thus reducing the baseline by $6.5
billion
Also, the Administration proposes
program savings of $3 billion, through
reductions in payments and subsidies to
lenders, guaranty agencies, secondary
markets and post-secondary institutions,
as well as cuts in federal administrative
funds. This proposal establishes a
competitive framework that requires all
program participants to operate with
greater efficiency.
29
�EDUCATION - DRAFT
December 27, 1995 (1:20pm)
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Eliminate Directed Scoring -$6.5 billion
Program savings:
-$3.1 billion
Net change to deficit
-$9.6 billion
Eliminate Directed Scoring
Republicans
-$6.5 billion
Retain Directed Scoring:
Program Savings:
Net change to deficit:
$6.5 billion
- $ 4.5 billion
$ 2.0 billion
Note: No official CBO estimate at this
time.
DECISIONS
1.
Scoring administrative costs. Directed scoring treatment for Direct Loans only, or use current law as is done for all Federal credit programs. Directed scoring raises the
estimated cost of direct lending relative to guaranteed lending without actually changing any real costs, adding $6.5 billion to baseline spending and forcing real program cuts in
health, welfare and elsewhere.
Current law (Administration):
Directed scoring (Republican):
2.
Direct loan volume. Permit school choice of guaranteed or direct lending, or impose a 10% cap on direct lending (July 1, 1996). The cap protects the bank-based guaranteed
loan program by forcing 1,300 schools out of direct lending and preventing any more from choosing direct lending. The cap also bars easy access for students to incomecontingent repayment options. Free choice lets each school make its own decision.
Choice (Administration)
10% cap (Republican)
3.
- $6.5 billion from CBO baseline
+$6.5 billion in CBO baseline
Without directed scoring:
+$0.7 billion
+$7.1 billion
With directed scoring:
not available from CBO
-$.3 billion
Reduce various cost elements in guaranteed and direct lending (estimates will vary with decisions on direct loan volume and scoring). Cuts in subsidies to banks and other
intermediaries in the guaranteed loan program, and administrative costs of direct lending. [About $1.1 billion of Republican cuts are proposed changes for guaranty agency use
of reserve funds that actually cost, not save. ]
Administration, net of choice and no directed scoring.
Republican, net of 10% cap and directed scoring:
-$3 .8 billion
-$4.2 billion
30
�December 27, 1995 (1:20pm)
EDUCATION - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Coalition
Republicans
Smith-Hughes Act
Smith-Hughes Act
Daschle
Smith-Hughes Act
Eliminate the mandatory appropriation
under the Smith-Hughes Act of 1918, in
favor of increased discretionary spending
on job training and vocational education in
the Administration's GI Bill for America's
Workers. The proposals in the GI Bill are
under consideration in Congress as
HR1617, Consolidated and Reformed
Education, Employment, and
Rehabilitation Systems (CAREERS) Act.
(-$42 million)
No provision.
DECISIONS
31
No provision.
�EDUCATION - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Connie Lee
Connie Lee
The Administration proposes to privatize
the College Construction Loan Insurance
Association ("Connie Lee") by repealing
its statutory authorization and removing
statutory limits on the corporation's
activities. The Secretary of the Treasury
has one year after enactment of the
legislation to sell stock owned by the
Secretary of Education that was originally
purchased with $19 million in
appropriated funds after Connie Lee was
authorized in 1986. If the Secretary of the
Treasury is unable to sell the stock at an
acceptable price, Connie Lee is required to
purchase it at a price determined by the
Secretary of the Treasury, in consultation
with the Secretary of Education, based on
an independent appraisal of one or more
nationally recognizedfinancialfirms.The
Secretary of the Treasury will be
reimbursed, from proceeds of the stock
sale, for costs related to the sale.
No provision.
No dollar cap is placed on the price at
which Connie Lee would purchase the
stock. For scoring purposes only, the
Administration assumes savings of $7
million, the same as the CBO estimate.
32
Republicans
Connie Lee
The conference bill includes similar
provisions to privatize Connie Lee, with
these important differences. (1) It
requires the Secretary of Treasury to sell
the stock within 6 months of enactment,
which Treasury believes is an unrealistic
time frame. (2) It places a $7 million dollar
cap on the price which Connie Lee would
pay for the stock, should the Secretary fail
to sell the stock to the public within the
time required, which would mean that the
Secretary could not negotiate a price in
the best interests of the federal
government. Administration assumes
savings of $7 million, the same as the
CBO estimate.
�DECISIONS
33
�December 27, 1995 (1:20pm)
MINIMUM WAGE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Raises the minimum wage from its current
level of $4.25/hour to $5.15/hour in two
steps of $.45/hour. Effective July 1, 1996,
the minimum wage would be increased to
$4.70/hour. One year later, it would rise
to $5 15/hour. The minimum wage was
last increased in April 1991. No deficit
effect.
No provision.
DECISIONS
34
Republicans
No provision.
�UNEMPLOYMENT INSURANCE DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:50pm)
Coalition
Daschle
Republicans
No provision.
Denies unemployment benefits to
individuals with incomes above $120,000.
No savings
No provision.
No provision.
Denies unemployment compensation to
individuals who leave the military
voluntarily, returning the law to provisions
in effect for one year in the early 1980s.
(-$1.9 billion)
No provision.
DECISIONS
Should unemployment compensation benefits be denied to individuals who leave the military voluntarily?
35
-$1.9 billion
�PENSION ASSET REVERSIONS DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
No provision.
No provision.
Republicans
Companies that are not in bankruptcy and
that have pension plans funded above an
"asset cushion" (generally 125 percent of
termination liability) may withdraw the
excess above that cushion so long as it
does not exceed the year's payments for
ERISA employee benefit plans.
Withdrawals may be used only for other
ERISA plan costs, e.g., other company
pension plans, health plans, and disability
or vacation pay. Plan participants must be
notified before the withdrawal.
By withdrawing assets from pension
funds, reversions increase risk to retirees
and to the Pension Benefit Guaranty
Corporation, which insures such pensions,
(revenues increase $4.7 billion)
DECISIONS
*
Should reversions be permitted, with consequent revenue increases of $4.7 billion?
36
�FEDERAL CIVILIAN EMPLOYEE
RETIREMENT AND HEALTH DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Extends 3-month COLA delay for civil
service (CSRS and FERS) retirees
through 2002 (-$2.0 billion); conforms
Congressional pensions to those of regular
employees, for service beginning January
1996 (-$9 million); requires Postal Service
to assume liability for workers'
compensation payments from employee
injuries that occurred before creation of
USPS (-$.2 billion). Beginning in 1999,
phases in higher agency contributions to
cover full accruing costs of CSRS
employee retirement by 2002. (-$9.3
billion, OMB estimate of anticipated CBO
pricing)
Requires the Postal Service to pay in
advance its share of future retiree FEHB
premiums. No long-run savings. Savings
of $9.6 billion over 7 years result from
shifting cash flow from out-years to nearyears.
Extends 3-month COLA delay for civil
service (CSRS and FERS) retirees
through 2002 (-$2.0 billion); increases
employee contributions by 0.5 percentage
points (-$3.5 billion); increases non-Postal
agency contributions for CSRS employees
by 1.51 percentage points (effective
January 1996) (-$3 .9 billion); conforms
Congressional pensions to those of regular
employees, for service beginning January
1996 (-$9 million); requires Postal Service
to assume liability for workers'
compensation payments from employee
injuries that occurred before creation of
USPS (-$.2 billion).
-$11.5 billion
-$9.6 billion
-$9.6 billion
37
�DECISIONS
Programmatic
Source and split of savings
What is the appropriate level of contribution to deficit reduction from civil service benefits? What is the appropriate split between individuals and agencies?
Savings Options
-.
Continue 3-month delay of retiree COLA ($2.0 billion, Administration and Conference)
Postal Service assumes liability for Post Office Department Workers Compensation benefits ($0.2 billion. Admin and Conf)
Increase agency contributions for Civil Service Retirement System (CSRS) workers ($9.3 billion Admin $ 3.9 billion Conf)
Increase employee contributions to CSRS, FERS by 0.5 percent ($ 3.5 billion Conf)
Prospectively conform Congressional pensions to those of regular employees ($ 9 million Admin and Conf)
Require Postal Service to pay in advance its share of future retiree Federal Employees Health Benefits (FEHB) premiums ($9.6 billion Coalition)
Budgetary Consequences
First five options, above, achieve deficit reduction by either increasing revenues or reducing outlays.
Final option does not achieve true savings. Postal Service already responsible for paying its full share of cost of FEHB premiums for its retirees. Option would shift cash flow
forward by requiring Postal Service in addition to finance in advance future retiree FEHB benefits for its current employees. Option would force 2 cent increase in price of first
class letter.
38
�December 27, 1995 (1:20pm)
VETERANS - DRAFT
Administrntion OfTer of 12/15/95
(7-Year Plan)
Coalition
Daschle
Includes $2.3 billion in savings from
extending 6 OBRA 93 provisions; the
repeal of the Gardner decision; and debt
collection changes to the home loan
program.
Includes five OBRA extenders ($1.8
billion), repeal of the Gardner decision
that allows veterans to collect lifetime
monthly payments for adverse effects from
VA medical treatment, even if VA is not
at fault ($2.5 billion); and debt collection
changes to the home loan program
($0.1 billion).
-$4.9 billion
-$4.4 billion
DECISIONS
Issue 1:
What is the appropriate level of contribution veterans should make to balancing the budget?
Administration 7-Year Budget $4.4 billion ( 2.7 percent of total veteran entitlement spending)
Conference Bill $6.5 billion ( 3.9 percent of total veteran entitlement spending)
Coalition Alternative Bill $4.9 billion ( 3.0 percent of total veteran entitlement spending)
39
Republicans
Includes seven OBRA extenders ($3 .0
billion); repeal of the Gardner decision;
and the debt collection changes to the
home loan program. In addition, increases
the prescription drug co-payment to $4
per 30-day supply; restricts the abihty of
the Secretary to waive prescription drug
co-payments from veterans who claim an
inability to pay; and makes the COLA
received by certain survivors receiving
compensation benefits a flat dollar
amount.
-$6.5 billion
�Issue 2:
If a contribution larger than the Administration's proposal is required ($4.4 billion) then is it better to include in the package of issues:
•
Double out-of-pocket costs ($2 to $4) for a month's supply of prescription drugs charged to nonservice-connected, higher-income veterans
or
Limit future cost-of-living adjustments to veterans receiving educational benefits (Montgomery GI Bill)
40
�December 27, 1995 (1:20pm)
MILITARY RETIREMENT - DRAFT
Coalition
Republicans
OBRA 93 delayed COLAs for military
retirees from January 1 to October 1
during 1996-1998. The President's 1996
budget proposed spending $338 million
during 1996 to move the military COLA
date to April 1, the same date as civilian
retirees. No funds were requested for
1997 or 1998. (The cost for accelerating
the military retiree COLA is $620 million
in 1997 and $646 million in 1998.)
Increases spending by $1.6 billion to
accelerate the military retiree COLA to
April in 1996, and January in 1997 and
1998. This would equalize the civilian and
military retiree COLA dates in those years
absent any other change in law. However,
both the House and Senate reconciliation
bills would delay the civilian retiree COLA
dates to April 1 through 2002, thus
creating a potential disparity between
civilian and military retiree COLA dates
after 1996.
This provision was dropped in Conference
as a Byrd Rule violation. The 1996
Defense authorization conference report
moves the COLA to April 1st in 1996,
January 1st in 1997, and October 1st in
1998. The authorization bill also,
however, contains contingent language
which will automatically move the military
COLA date in 1998 to be consistent with
the civilian COLA date, if the civilian date
is different than October 1st. Under
current law, the civilian COLA date is
January 1st, 1998, and thus the military
COLA date would also be January 1 st.
However, in budget reconciliation
proposals, both the Administration and the
Republicans have proposed delaying the
civilian COLA to April during 19962002. The President has indicated he will
veto the Defense authorization bill.
$0.3 billion
$1.6 billion
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
DECISIONS
41
�NATIONAL DEFENSE STOCKPILE DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Requires sale of excess Stockpile materials
as necessary to achieve receipts totaling
$649 million during fiscal years 19962002. Sales to be in addition to those
proposed in the President's 1996 Budget.
Receipts from sales under this authority
shall be deposited into the general fund of
the Treasury for deficit reduction instead
of credited to the National Defense
Stockpile Transaction Fund as required by
current law.
(-17 billion)
Same as Administration.
DECISIONS
No disagreement.
42
Republicans
Same as Administration.
�December 27, 1995 (1:20pm)
SPECTRUM AUCTIONS - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Coalition
Republicans
Similar to Republicans. Extends the
Federal Communications Commission's
spectrum auctions, and directs the FCC
and the Commerce Department to identify
120 MHZ of privately and public licensed
spectrum for reallocation using auctions.
(-$15.3)
Extends the Federal Communications
Commission's spectrum auctions, and
directs the FCC and the Commerce
Department to identify 120 MHZ of
privately and public licensed spectrum for
reallocation using auctions. Provides
relocation costs to federal agencies forced
to give up their current spectrum
assignments for auction. Specifically
forbids the FCC from auctioning the radio
licenses of public safety organizations.
Daschle
Non-broadcast spectrum provisions same
as Republicans.
Decisions
Programmatic/Budgetary Consequences
•
The Administration, Conference, and Coalition proposals are very similar, and CBO has scored them at the same level $15.3 billion from 1996-2002. The Administration
has adopted the Conference language because it reimburses Federal agencies for the cost relocating to a different area of the spectrum.
43
�SPECTRUM AUCTIONS - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Authorizes the Federal Communications
Commission (FCC) to auction spectrum
by 2000 that is currently used by TV
broadcasters for carriage of their analog
TV signals. This proposal codifies current
FCC plans to reclaim unneeded "analog"
broadcast spectrum after broadcasters
have migrated to a new digital channel
that the FCC is giving them for free. The
FCC has already set aside this spectrum
for the broadcasters to use in providing
advanced digital TV services. CBO
estimates the receipts from an auction of
this "analog" spectrum at $6.0 billion in
1996-2002. Note: the bill transmitted on
December 7, 1995, has been modified
slightly to accommodate CBO concerns.
"Analog" spectrum proposal similar to the
Administration's proposal. (-$5.4 billion)
However, due to difference in auction
dates, CBO scored $0.6 billion in receipts
in 2003 (for a total of $6.0 billion).
Spectrum total
Spectrum total
Spectrum total
-$21.3 billion
-$20.7 billion
-$15.3 billion
44
No "analog" spectrum provision.
�DECISIONS
Programmatic/ Budgetary Consequences
•
Include "analog" spectrum auction.
CBO estimates of this auction are $6 billion all in 2002.
•
Do not include "analog" spectrum auction. '
Alternative offsets will need to be found to make up for the $6 billion in 2002 assumed in the Administration's plan.
45
�COMMERCE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Patent and Trademark Office
Patent and Trademark Office
Same as Republicans
Republicans
Patent and Trademark Office
Same as Republicans.
DECISIONS
No disagreement.
46
Extends the Patent and Trademark
Office's authority to extend the patent
surcharge fee from 1999 through 2002.
(-$.5 billion)
�COMMERCE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
FCC Fees
FCC Fees
No provision
Republicans
FCC Fees
Requires FCC to set license processing
fees to recover the full costs of FCC
services. (-$.5 billion)
No provision.
DECISIONS
Programmatic/Budgetary Consequences
•
•
•
Recover full costs of FCC services through fees.
Raises an additional $168 million from 1996-2002 ($24 million per year.)
Continue current fee level which fiinds all but $24 million a year of FCC operating costs.
Provides no new savings.
Add a $40 million surcharge over full cost recovery as proposed by the Coalition.
Raises an additional $312 million from 1996-2002 ($44 million per year.)
Note: The Coalition proposal does not appear to recognize that the FCC is permanently authorized to collect $40 million in fees that are deposited in the General Fund. The
telecommunications industry would view this surcharge as a tax and would strongly oppose it.
47
�COMMERCE -DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Coalition
Daschle
Republicans
Transitional Expenses of the Post Office
Transitional Expenses of the Post Office Transitional Expenses of the Post Office
No provision.
Same as Republicans.
DECISIONS
48
Repeals authorization for "transitional"
funds at time of 1971 reorganization.
(-$241 million)
�December 27, 1995 (1:20pm)
TRADE-DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Same as Republicans.
Coalition
Daschle
No provision.
DECISIONS
49
Republicans
Reauthorizes Generalized System of
Preferences through December 31,1996,
which allows preferential tariff treatment
to products from developing countries
which meet certain criteria. Authority
expired on July 31, 1995. (revenues -$.7
billion)
j
�AGRICULTURE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Program Crops
Increases the market orientation and
income targeting of farm programs, while
retaining their primary purposes of (1)
income support in times of low farm
prices, and (2) environmental protection.
Increases farm acres ineligible for incomesupport payments ("triple base") from 15
percent to 21 percent of farm acreage.
Payments are targeted to producers
making less than $100,000 in off-farm
income. Provides increased planting
flexibility. Maintains unchanged the
current Farmer Owned Reserve (farmers
compensated for keeping commodities in
storage during times of low prices), pricesupport loans, and rice and cotton
marketing loan repayments at world
prices.
No savings or provisions on agriculture in
this bill: extend current authorities for one
year and address farm programs next year.
Program Crops
Increases triple-base non-payment acres
from 15 percent to 23 percent. Planting
flexibility is increased from the present
program structure, with plantings for all
program crops combined in one total
acreage base, similar to the
Administration. Income-support payment
limitations reduced to $47,000 per person
(vs. the current $50,000). Maintains
unchanged the current Farmer Owned
Reserve, price-support loans, and rice and
cotton marketing loan repayments at
world prices.
Program Crops
Republicans
"Decouples" most farm program payments
from production and market prices,
representing a major change from current
law. Farmers would enter into seven-year
contracts, with guaranteed annual
payments based on percentage share of
payments through 2002 in CBO baseline.
Permits significant planting flexibility,
similar to Administration's plan. Rice and
cotton loans can continue to be repaid at
less than face value, based on world
prices. Reduces income support payment
limit from $50,000 to $40,000. Eliminates
the Farmer Owned Reserve program. Sets
price-support loan rates at 85 percent of
five year average, with 1995 loan rate cap.
DECISIONS
Fixed farm income support payments. Income support ("deficiency") payments would befixedin legislation rather than vary with crop price changes.
Fix payments (Republican)
-1.0 billion
Maintain current structure at lower level (Coalition, Administration)
-1.6 to -3.4 billion
Cap crop price-support loan rates. Cap the per-bushel value on which price-support loans are provided.
50
�Cap loan rate (Republican)
-1.4 billion
Maintain loan rate at 85 percent of 5-year avg. (Coalition, Administration) -0Increase income targeting. Current limit on Federal "deficiency" payments is $50,000 per farm entity, with maximum of $100,000 through
participation in two other entities. Under Republican plan, changes would not result in savings because payments arefixed(reductions to
a producer would be re-allocated).
Reduce payment limit to $40,000 (Republican)
-0Reduce payment limit to $47,000 (Coalition)
-.1 billion
Limit payments to producers making less than $100,000 in
off-farm income (Administration)
(CBO estimate unknown)
Eliminate "3-entity" rule by disallowing additional payments
from participating in two other entities; reduce overall
person payment limit graduallyfrom$ 100,000 to $40,000.
(Estimate of CBO savings: $600-800 million)
Create a "Fund for Rural America":
Provide mandatory funds for rural development, conservation
and agricultural research that could be financed by diverting
fixed farm payment into it when crop prices are high, by finding
additional savings within the agricultural title, or by reducing
(Dependihg onfinancingoption, may not score.
required savings from farm programs.
CBO estimate unknown.)
Create a farmer "IRA""
To help ensure an adequate "safety net," allow farmers to set aside
"excess"fixedpayments when prices are high, that could be withdrawn
in years when prices are low.
(CBO estimate unknown)
51
�AGRICULTURE - DRAFT
December 27, 1995 (1:20pm)
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Export Programs
Export Programs
The Administration's post-GATT
commitments are maintained; no cuts are
proposed to export assistance or
promotion programs.
No provision. (See above.)
Republicans
Export Programs
Same as Administration; no change in
current law.
DECISIONS
Reduce export assistance programs. Including the Export Enhancement
Program (EEP) and Market Promotion Program (MPP)
Cut export programs (Republican)
Do not cut export programs (Coalition, Administration)
-.7 billion
-0-
52
Reduces Export Enhancement Program
(EEP) funds by 32 percent over 7 years,
and eliminates SOAP/COAP oilseed
export subsidies. Reduces Market
Promotion Program (MPP) by $10 million
annually.
�AGRICULTURE - DRAFT
December 27, 1995 (1:20pm)
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Crop Insurance
Crop Insurance
No change to crop insurance program.
Eliminates payments in the Emergency
Livestock Feeding program in locations
where crop insurance assistance is
available.
No provision. (See above.)
Republicans
Crop Insurance
No provision.
DECISIONS
Require crop insurance for participating producers.
Do not require (Republican)
Continue to require (Coalition, Administration)
Do not require for producers with estimated liability
of less than $500-$ 1,000.
-.2 billion
-0-$0.1 to -$0.2 billion (estimate of CBO estimate)
53
Undoes recent reform in crop insurance
program by de-linking insurance program
benefits from participation in commodity
programs. Eliminates Emergency
Livestock Assistance.
�AGRICULTURE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Conservation
Conservation
Preserves the Conservation Reserve
Program (CRP) by both maintaining the
current acreage (36.4 million acres,
increasing to 38 million in 1997) and
permitting new acreage enrollments to
increase environmental benefits.
Environmentalflexprovision allows
environmental structures (terraces, filter
strips) on farm acreage without loss of
payments on those acres. Provides for
shifting crop acreage base to other
locations if production is constrained by
environmental hardships (highly erodible,
wetlands,frequentflooding,etc.).
No provision (see above).
Republicans
Conservation
No provision.
DECISIONS
Reduce Conservation and Wetlands Reserve Program fCRP/WRPl spending.
Permit new enrollments in CRP. Continue permanent easements for WRP.
No new CRP enrollments, no WRP permanent easements (Republican)
Permit new CRP enrollments, maintain WRP permanent easements (Coalition, Administration)
54
-1.0 billion
1.0 billion
Reduces spending on the Conservation
Reserve Program (CRP) by fixing
maximum program acreage at the current
36.4 million acres. Permits producers to
opt out of the CRP at any time with a 60day notice. No new sign-ups allowed.
Wetlands Reserve Program (WRP) would
no longer offer permanent easements; 15year contracts only permitted. New
mandatory conservation cost-share
program (LEAP) for livestock producers
created and funded at $100 million per
year.
�December 27, 1995 (1:20pm)
AGRICULTURE - DRAFT
Administrntion Offer of 12/15/95
(7-Year Plan)
Coalition
Republicans
Other crops
Other crops
Reforms peanut and tobacco programs to
make them operate at no net-cost, similar
to the Administration's proposal. Adds
assessments for sugar imports and
eliminates marketing allotments. For
import levels at the GATT minimum,
(1.25 million tons), there would be no
sugar crop forfeitures on price-support
loans, regardless of the market price.
Modest reforms in peanut program to
make it no-net-cost to taxpayers. Sugar
program domestic marketing allotments
eliminated and deficit-reduction
assessments increased. Slight increase in
sugar imports possible (to 1.5 million
tons) without threat of crop forfeitures on
sugar price-support loans (plus a new 1
cent/pound fee for any forfeitured crop).
Eliminates Honey program. Fails to
include any dairy program reforms
Daschle
Other crops
Reforms peanut and tobacco programs to
run at no net cost. Terminates the Honey
program. Reforms dairy program support
price and marketing orders.
No provision (see above).
DECISIONS
55
�AGRICULTURE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Marketing Agreements
and Order User Fees
Marketing Agreements
and Order User Fees
Recover federal costs for oversight of
marketing agreements and orders through
increased assessments to those producers
and handlers who benefit. (-$69 million)
Republicans
Marketing Agreements
and Order User Fees
No provision:
DECISIONS
56
No provision.
�AGRICULTURE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Farm Credit System Insurance Corp.
Farm Credit System Insurance Corp.
Reduce (mandatory) administrative
expenses by reformulating Corp.'s board
of directors. Current law requires an
independent, 3-person board to be
appointed in 1996 to oversee the
Insurance Corp. This would roughly
double the Corp.'s administrative
expenses. The Administration proposes to
have one full-time Corp. board member as
Chairman; and two part-time board
members: one of the members of the Farm
Credit Administration's board, and the
Secretary of the Treasury or the
Secretary's designee. This proposed
structure will reduce costs as well as
preserve the independence of the Corp.
(-$7 million)
Republicans
Farm Credit System Insurance Corp.
No provision.
DECISIONS
57
No provision.
�ENERGY - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Nuclear Regulatory Commission
Annual Charges (NRC Fees)
Nuclear Regulatory Commission
Annual Charges (NRC Fees)
Extends through 2002 NRC authority to
charge fees to offset approximately 100
percent of its appropriation. Current law
only authorizes NRC to set fees equal to
33 percent of its budget after 1998.
Republicans
Nuclear Regulatory Commission
Annual Charges (NRC Fees)
Same as Administration.
(-$1.3 billion over four years or -$330
million per year)
DECISIONS
Programmatic
•
Extend the NRC fee or not?
Administration and Republicans agree on extension and scoring.
Budgetary Consequences
•
Estimated savings of $1.3 billion over four years or $330 million per year.
58
Same as Administration.
�December 27, 1995 (1:20pm)
ENERGY - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Coalition
Sale of Strategic
Petroleum Reserve (SPR) Oil
Republicans
Sale of Strategic
Petroleum Reserve Oil
Daschle
Sale of Strategic
Petroleum Reserve Oil
No provision.
Proposes sale of 32MB of oil formerly in
the Weeks Island SPR site. This sale is in
addition to the 7 MB included for sale in
the 1996 Interior Appropriations bill.
Total SPR is 590 MB. (-$583 million.)
59
Proposes sale of 32 MB of oil at Weeks
Island (-$470 million, according to CBO)
�DECISIONS
Programmatic
o No difTerence between Administration and Republicans.
Budgetary Consequences
o Under OMB scoring, sale of 32 MB of Weeks Island oil would result in $583 million in savings (assuming sale in 1996 - 1997.) CBO scores sale of 32 MB over three years
(FY 1996 - 1998) resulting in savings of $470 M.
60
�December 27, 1995 (1:20pm)
ENERGY - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Coalition
Privatize the U.S. Enrichment
Corporation (USEC)
Republicans
Privatize the U.S. Enrichment
Corporation (USEC)
Daschle
Privatize the U.S. Enrichment
Corporation (USEC)
Proposal included. No details available.
(-$1.3 billion)
Provides for the transfer of USEC from
federal to private ownership and resolves
liability and regulatory issues relating to
the transfer. Also addresses the balance
between nonproliferation concerns and
protection of U.S. markets in relation to
the sale of enriched uranium from Russian
nuclear weapons. Provides limited
authorization for the President to waive
import duties on Russian enriched uranium
in certain circumstances. (-$2.2 billion.)
61
Provides for the transfer of USEC from
federal to private ownership in 1996 with
language that (except for the timing)
largely represents a compromise worked
out between the Administration and
Congress. Some differences remain on
technical issues In particular, the
Conference bill does not authorize the
President to waive import duties on
Russian enriched uranium and has a more
restrictive import quota on Russian
uranium.
�DECISIONS
Programmatic
•
Assurance of Russian HEU purchase
Presidential Waiver of Duties (yes/no)
Initial Import Quota (2 or 3 million lbs)
Budgetary Consequences
•
None
62
�December 27, 1995 (1:20pm)
ENERGY - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Coalition
Sale of DOE assets
Sale of DOE assets
No provision.
Requires DOE to sell excess assets,
including 1.1 million pounds of fuel, 136
tons of chemicals, 557,000 tons of scrap
metal, 14,000 radiation sources, 17,000
pieces of major equipment, 11,000 pounds
of precious metals, and 91 million pounds
of base metals. (-$110 million)
DECISIONS
Programmatic
•
Republicans
Sale of DOE assets
Daschle
Administration's proposal occurs in 1 year; Republicans stretch sales over 7 years.
63
Same as Administration, except sales
occur over a 6-year period ($20 million in
1996 and then $15 million per year
through 2002).
�ENERGY - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Coalition
Republicans
Privatize Alaska Power Administration
Privatize Alaska Power Administration
Privatize Alaska Power Administration
The bill to sell the Alaska Power
Administration (S-395) has been signed by
the President As a result, the Secretary
now has authority to conduct final
negotiations for the sale of this PMA.
No provision.
Congress passed and the President signed
S-395 to sell the Alaska Power
Administration. This provision, which is
in the Conference bill, should be dropped
Daschle
However, the Conference bill contains a
financing provision not in S-395 that
authorizes the State of Alaska to issue taxexempt bonds tofinancethe purchase of
the Snettisham part of the power
administration. The Administration
supports thisfinancingprovision.
(Savings: $0)
(Financing provision costs $6 million
through 2002; Dropping sale provision
yields -$66 through 2002)
DECISIONS
Programmatic
o Adoptfinancingprovision, which allows State of Alaska to issue tax-exempt bonds tofinancesome of this sale. Administration supports this provision in Republican bill.
Budgetary Consequences
o Costs total of $6 million through 2002.
64
�ENERGY - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Refinancing Bonneville Power
Administration (BPA)
Refinancing Bonneville Power
Administration (BPA)
Proposal would refinance $6.7 billion in
low interest loans that BPA owes the
Treasury for investments in both power
generation and transmission facilities in
the Pacific Northwest. BPA would reset
its current debt repayment obligation to
the net present value of the current
principal and interest payments owed the
Treasury, plus $ 100 million. This new
debt amount would then be repaid at
today's long term Treasury interest rates.
Bonneville will use permanent
appropriations to reimburse the Coleville
Indian tribes for benefits the tribe should
have received from Grand Coulee dam
operations that began in the 1940s.
(-$120 million)
Republicans
Refinancing Bonneville Power
Administration (BPA)
No comparable provision.
65
Same provision to refinance BPA existing
low interest loans. Allows BPA to take
credits against its annual debt payments to
the Treasury for implementation of the
Coleville agreement rather than using
permanent appropriation authority, as in
Administration bill. (-$94 million )
�DECISIONS
Programmatic
0
Refinance or not to refinance BPA debt?
0
Use either permanent appropriations QT use credits against debt payments to Treasury to pay for Coleville Indians Benefits.
Budgetary Consequences
o $120'million over 7 years (OMB scoring) or $94 million (CBO scoring).
66
�ENERGY-DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Sale of Naval Petroleum Reserve
Sale of Naval Petroleum Reserve
Provides for the transfer of the Naval
Petroleum and Oil Shale Reserves from
federal to private ownership. Supports
downward discretionary cap adjustment to
reflect the fact that annual appropriations
to fund operations will no longer be
needed if asset is sold. CBO staff indicate
that they will not score sale because under
Administration's bill the President is not
required to sell, and Congress can
disapprove plan. CBO will score the
potential government corporation
proposed in the Administration's bill
should the sale not occur as PAYGO
spending.
(-$1.4 billion -- this nets out $127 million
for contributions to California Teachers'
Fund).
Republicans
Sale of Naval Petroleum Reserve
No provision.
67
Similar provision was considered earlier,
but was dropped under Byrd rule point of
order.
�DECISIONS
Programmatic
o Sell Elk Hills in 1997 or retain status quo?
Budgetary Consequences
° OMB savings ($1.4 billion) includes about $1 billion in forgone discretionary spending, which would be reflected in a downward adjustment of the discretionary caps.
0
CBO does not score the discretionary savings.
68
�December 27, 1995 (1:20pm)
ENERGY - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Coalition
Lease Excess Strategic Petroleum
Reserve (SPR) Storage Capacity
Lease Excess Strategic Petroleum
Reserve (SPR) Storage Capacity
Supports leasing of excess storage
capacity to foreign governments. Does
not support Conference requirement to
use one-half of leasing receipts for
repurchasing oil beginning in 2001.
(-$360 million)
Republicans
Lease Excess Strategic Petroleum
Reserve (SPR) Storage Capacity
Daschle
No provision.
Provides for the lease of excess SPR
storage capacity to foreign governments.
Use up to one-half of receipts to
repurchase oil beginning in 2001.
(-$255 million)
DECISIONS
Programmatic
To lease or not lease SPR storage capacity.
To use or not use one-half of leasing receipts beginning in 2001 for buying more SPR oil.
Budgetary
Not using leasing receipts to buy more SPR oil saves $105 million ~ the difference between $360 million (Administration's proposal) and $255 million (Republican proposal).
0
0
0
69
�ENERGY-DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Export of Alaskan North Slope
Crude Oil
Export of Alaskan North Slope
Crude Oil
Supports provision. Signed into law
(S-395) by the President on Nov 28, so
should be deleted from Reconciliation bill.
Republicans
Export of Alaskan North Slope
Crude Oil
No provision.
DECISIONS
Programmatic
o No decisions necessary; provision can be dropped because law has been passed separately from Reconciliation.
70
Provides for the export of Alaskan north
slope crude oil. Should be dropped, since
signed into law. (-$21 million)
�HOUSING/BANKING - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Includes the same major deposit insurance
provisions as the Republicans. Although
Treasury and FDIC assisted in drafting the
language the Conference adopted, the
Administration objects to provisions which,
give special treatment to a few institutions
and to broader exemptions for thrift
deposits acquired after certain dates.
OMB: (-$7.7 billion)
CBO: (-$0.4 billion)
No BIF/SAIF provisions.
(OMB savings estimates are larger than
CBO due to use of different baselines)
Republicans
Imposes a special assessment to bring the
SAIF up to the required 1.25 percent
reserve ratio on January 1, 1996.
Requires pro rata sharing of Financing
Corporation (FICO) interest payments by
all FDIC-insured depository institutions.
Merges BIF and SAIF on January 1, 1998,
provided that action has been taken to
abolish the federal thrift charter. Requires
that SAIF premiums be no lower than BIF
premiums until January 1, 1998. Restricts
FDIC ability to maintain BIF reserves at a
level higher than the designated reserve
ratio. OMB: (-$7.7 billion)
CBO: (-$0.4 billion)
DECISIONS
Programmatic:
•
Adopt the basic Administration and Conference proposal (strengthen SAIF and more closely align bank and thrift deposit insurance premiums)?
•
Eliminate the Conference agreement's special interest provisions and exemptions benefitting narrowly defined groups of banks or thrifts?
•
Eliminate provisions in both the Conference and Administration proposals that restrict FDIC's ability to keep the Bank Insurance Fund reserve ratio above the designated
reserve ratio?
Budgetary consequences:
71
�Strengthen SAIF: Net savings of $.4 billion over 7 years.
96
-4.1b
97
.5b
98
5b
99
.9b
00
.8b
01
.8b
02
.2b
Eliminate special interest provisions: No budget impact because this only affects the distribution of the special assessment among financial institutions.
Eliminate provisions that would restrict FDIC's ability to keep the Bank Insurance Fund reserve ratio above the designated reserve ratio: Expected net additional savings of $ 5
billion over 7 years.
72
�HOUSING/BANKING - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Requires the FDIC and the Federal
Reserve to assess fees for examinations of
FDIC-insured state banks and bankholding companies.
OMB: (-$1.3 billion)
CBO: (-$0.5 billion)
No state bank exam fees.
Republicans
No state bank exam fees.
DECISIONS
State Bank Exam Fees
Programmatic:
o Require the FDIC and the Fed to charge exam fees in order to maintain a level playing field and to reduce the incentive for federally-chartered banks to convert to state charters
based solely on the cost of exam fees.
or
° Require only the Fed to charge exam fees.
Budgetary consequences:
° Require the FDIC and the Fed to charge exam fees: Net savings of $0.5 billion.
96
97
98
99
00
01
02
-47m
-74m -64m -67m -69m -73m -76m
o Require the Fed to charge exam fees: Net savings of $0.5 billion. (CBO does not score net savings for FDIC exam fees.)
73
�HOUSING/BANKING - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Increase and extend transaction fees in
securities market. Registration and
merger and tender offer rates are increased
from 1/50 to 1/43 of one percent. (The
proposal puts these fees in the general
fund.) Extend transaction fees to offexchange trades of exchange-registered
securities at a rate of 1/300 of one percent
of the total value of securities traded.
(The proposal makes these fees available
to be spent by the SEC.) Establish
transaction fees on corporate bonds
(except Treasury and municipal bonds) at
a rate of 1/700 of one percent of the total
transaction value, (note: NYSE and
AMEX transaction fees are 1/300 of one
percent) (The proposal makes these fees
available to be spent by the SEC.)
OMB: (net -$0.5 billion; outlays $1.8
billion, revenues $2.2 billion).
CBO: (net -$0.1 billion; outlays $1.6
billion; revenues $1.7 billion)
No SEC bond or transaction fee
provisions.
74
Republicans
No SEC bond or transaction fee
provisions.
�DECISIONS
Programmatic Options:
Increase registration and merger and tender fees
~ Send fees to General Fund?
and/or
Extend securities transaction fees to markets not now covered
- Send fees to the General Fund?
- Make fees available to be spent by SEC?
and/or
•
Create new bond transaction fee
~ Send fees to General Fund?
~ Make fees available to SEC?
Budgetary Consequences:
Increase registration and merger and tender fees
- Send fees to General Fund: net savings -$0.3 billion
- Make fees available to SEC: net savings $0 billion
Extend securities transaction fees:
- Send fees to General Fund: net savings -$0.3 billion
-- Make fees available to SEC: net savings $0 billion
Create new bond transaction fee:
- Send fees to General Fund: net savings -$1.1 billion
~ Make fees available to SEC: net savings $0 billion
75
�December 27, 1995 (1:20pm)
HOUSING/BANKING - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Coalition
Daschle
President's Balanced Budget Plan reduces
the annual adjustment factor (AAF) for
Section 8 housing by one percentage point
for units where tenants renew leases.
Separate limitation on rent inflation in
high-cost project-based housing where
rent exceeds HUD's approved rent level.
This initiative was proposed for one year
in the 1996 Budget, but is extended to
seven years in the Balanced Budget Plan.
(-$2.3 billion)
Includes an AAF provision, but it applies
to the high-cost rents only, not to rents for
units where tenants stay. (-$1.2 billion)
DECISIONS
Programmatic
* Accept reduced Annual Adjustment Factor by 1 percent for stayers,
or
* Accept reduced AAF for high-cost areas,
or
* Accept both.
Budgetary Consequences (7 years)
96
97
* -1,189 million
-42
* -1,075 million
-18
98
-170
-66
99
-216
-126
00
-211
-177
01
-198
-210
02
-182
-229
-170
-249
76
Republicans
Republicans include President's proposal
on AAF. (-$2.3 billion)
�HOUSING/BANKING - DRAFT
December 27, 1995 (1:20pm)
Administration Offer of 12/15/95
(7-Year Plan)
Coalition
Daschle
Adopts FHA single-family assignment
alternative which improves targeting of
HUD's current program and allows FHA
homeowners experiencing temporary
economic distress to stay in their homes.
CBO estimates $1.8 billion in savings
based on reduced costs for future business
(1996 and beyond). Under credit reform,
OMB scores this language at $100 million.
(Both OMB and CBO score $1 billion in
assignment alternative savings, based on
existing FHA-insured mortgages, included
in the VA/HUD appropriations bill.)
Includes FHA single-family assignment
alternative.
DECISIONS
Programmatic
*
Accept assignment alternative
Budgetary Consequences (7 year)
-1,735m
96
-75
97
-216
98
-234
99
-268
00
-308
01
-317
02
-317
77
Republicans
Includes FHA single-family assignment
alternative.
�HOUSING/BANKING - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
No provision.
Raises current FHA single-family
mortgage loan floor to 50 percent of the
Fannie Mae/Freddie Mac conforming loan
limit (about $101,000). Current floor is
38 percent. Under this change FHA will
insure mortgages under $101,000
anywhere in the U.S. (-$.3 billion)
DECISIONS
Programmatic
*
or
Maintain current FHA mortgage floor,
*
Accept increased FHA mortgage floor.
Budgetary Consequences (7 year)
*
Increase in floor: -$286 million, all in 1996
78
Republicans
No provision.
�December 27, 1995 (1:20pm)
McKINNEY ACT - DRAFT
Administration OfTer pf 12/15/95
(7-Year Plan)
Coalition
Daschle
No provision.
No provision.
DECISIONS
Programmatic
*
*
Reject or accept repeal of Title V?
If Title V repeal accepted, exclude projects already underway.
Budgetary Consequences (7 year)
*
*
-$21 million if accepted, -3 million each year
If projects in process are exempted, $21 million only slightly reduced.
79
Republicans
Repeals Title V that requires organizations
helping the homeless be given priority in
acquiring surplus federal property for use
in providing shelter and other support
services.
(outlays -$21 million);
�December 27, 1995 (1:20pm)
NATURAL RESOURCES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Coalition
Daschle
Republicans
Arctic National Wildlife Refuge
No provision.
No provision.
The Conference reconciliation bill opens
the 1.5 million acre coastal plain of the
Refuge to oil and gas development. The
bill is a compromise between the House
and Senate reconciliation bills regarding
the timing of the sales and the
environmental requirements involved in
exploration. The bill continues to assume
$1.3 billion net receipts for the federal
government from these sales. However,
this is based on a 50/50 split with the State
of Alaska; it is likely that the state will
appeal this division of revenues and sue
for a 90/10 split.
(Based on (a) new Interior geological
analysis showing lower recoverable oil
estimates, and (b) more realistic estimates
for future oil prices ($20 per barrel
compared to $39 per barrel assumed by
CBO), OMB scores $850 million in net
receipts (assuming a 50/50 split).
CBO -$1.2 billion)
80
�DECISIONS
Programmatic
•
Open ANWR's coastal plain for oil and gas leasing development (CBO scores $13 billion net savings). (Republicans)
•
Retain ANWR's coastal plains' current status (no leasing) and work toward its permanent designation as wilderness through legislative action. (Administration)
•
Keep status quo (no legislative action).
Budgetary Consequences
(Outlays in Millions of Dollars)
1996
Estimates for
leasing:
0
1997
- 800
1998
0
1999
2000
0
- 500
81
2001
0
2002
0
�December 27, 1995 (1:20pm)
NATURAL RESOURCES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Hardrock Mining
Hardrock Mining
No provision; however, the President's
1996 Budget did assume the extension of
the $100 per claim holding fee through
2002 in its current services baseline.
Republicans
Hardrock Mining
No provision.
The provisions in the Conference bill
would continue to allow patenting of
mining claims, and establishes a nominal
net royalty. The Conference bill is similar
to the Senate language, and there are a
few technical changes in the bill, including
a small increase in the royalty rate from
the House rate of 2.5 to 5.0 percent of
"net" proceeds, including grandfather
provisions, with categories of deductible
expenses. About 90 percent of the
revenue scored to the bill ($141 of $157
million) comes from extending the existing
$100 per claim holding fee due to expire
at the end of 1998.
(-$157 million)
DECISIONS
Programmatic
•
Pursue certain changes in the 1872 hardrock mining law (amended patenting, a modest "net" royalty, and extension of the current claim fee) through reconciliation
(Republicans).
•
Take up broader changes (patent elimination and a higher "gross" royalty not through reconciliation, but in stand-alone legislation. (Administration). No objection to current
claim fee extension; already in OMB baseline.
Budgetary Consequences
82
�Outlays in Millions of Dollars)
^si
Estimates for
Royalties, and
related receipts:
2
Jm
jm
jm
2m
2002
j
"
4 0
83
-
4 0
-40
.41
�December 27, 1995 (1:30pm)
NATURAL RESOURCES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Ward Valley Land Transfer
No provision.
No provision.
The bill would unconditionally transfer the
proposed low-level radioactive waste
storage site to the State of California,
upon California's tendering $500,100 and
releasing the United states from any
liability for claims relating to the property.
The transfer contains no further conditions
to address safety and environmental
concerns related to the siting and
operation of the facility. OMB assumes
scoring to be incidental to provision and,
therefore, subject to Byrd Rule.
(-$1 million)
DECISIONS
Programmatic
• Transfer the Ward Valley land to the State of California without providing for specific environmental standards. (Republicans)
• Include the Ward Valley land transfer if environmental protections are incorporated.
- Provision that would bar the federal government from administrative and judicial enforcement of the agreement under the Endangered Species Act and NEPA must be
dropped.
• Drop the Ward Valley provision and allow the current transfer negotiations to continue between the State of California and the Department of the Interior (Administration)
84
�Budgetary Consequences
• One-time sale of land
(Outlays in Millions of Dollars)
1996
1997
1998
Estimates for
Land sale:
1999
2000
2001 2002
-1
0
0
0 0
0
0
85
�NATURAL RESOURCES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Fisheries Management
Fisheries Management
Requires the Secretary of Commerce to
collect fees from holders of fishing quotas.
The fees are set at percentages of the
authorized harvest. (-$70 million)
Republicans
Fisheries Management
No provision.
DECISIONS
86
No provision.
�NATURAL RESOURCES - DRAFT
December 27, 1995 (1:20pm)
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Wetlands Regulatory Permit Fees
Wetlands Regulatory Permit Fees
Wetlands Regulatory Permit Fees
No provision. However, the President's
1996 Budget assumed enactment of
legislation to increase recovery of
expenses associated with processing
commercial regulatory wetlands (sec. 404)
permit applications. The amount to be
collected was to be established by the
appropriation committees. OMB estimate
is $66 million, however, Updated estimates
agree with CBO's figures for the Coalition
proposal.
Increase fees for the issuance of wetlands
regulatory permits for commercial
activities sufficient to cover cost of
services. (-$77 million). Includes
requirement that fees be established in 60
days, which is too short to be
accomplished. Formal rulemaking would
require at least 6 months.
DECISIONS
Programmatic
Accept Coalition proposal - Charge commercial applicants for wetlands regulatory (Section 404) permits. (Administration)
No proposal at this time - consider in Clean Water Act amendments next session.
Budgetary Consequences
1996
Estimates for:
Regulatory fees
1997
-7
(Outlays in Millions of Dollars)
1998
1999
2000
-14
-14
-14
87
2001
^002
-14
-14
No provision.
�NATURAL RESOURCES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
National Park Service
Concessions Reforms
Administration provision would delete the
Conference provision and substitute S.309
(concessions reform legislation that passed
both Houses last year) amended:
1) Competitive Selection Process: Require
the National Park Service (NPS) when
soliciting proposals to announce the
relative importance of each factor that
would be considered during the selection
process.
2) Franchise fees Adjustment: Specify that
the amount of concession franchise fees
set in the contract would be adjusted only
to reflect substantial changes from the
conditions specified in the contract.
3) Special, Off-Budget Accounts. Delete
authority for these accounts and establish
a single Treasury account in which the
NPS would deposit all fees, including
funds now going into special accounts.
(This approach is similar to the
congressional reconciliation bill provisions
for NPS entrance fees.) Lower the level
of receipts identified in the provision to be
remitted to the Treasury, thereby allowing
more funds to be retained in the central
Treasury account for park uses without
further appropriation.
No provision.
88
The bill would establish new procedures
for the NPS to solicit, award, and evaluate
contracts to concessioner that provide
various services to park visitors. (It
would also affect BLM, FWS, and Forest
Service concessions for river runners,
guides, and outfitters.) The bill would
require the NPS to (1) provide certain
preferences to incumbent concessioner
when evaluating contract proposals; (2)
award possessory interests to concessioner
that make improvements to park facilities;
and (3) require concessioner to pay
franchise fees (deposited in the Treasury)
and/or establish special accounts to use, at
the Park Superintendent's direction, for
facility maintenance and improvement. A
specified amount of fees (increasing from
$15 million in 1997 to $44 million in
2002) must be deposited in the Treasury
as miscellaneous receipts. (-$82 million)
�NATURAL RESOURCES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
National Park Service
Concessions Reforms
Compared to the conference provision,
this would (1) only address NPS
concessioner; (2) provide no preferential
right of renewal, except for small
concessioner (less than $500,000 in gross
receipts) and outfitters, guides, and river
runners; (3) require new contracts to
depreciate possessory interests over 30
years; (4) replace special, off-budget
accounts with a single Treasury account;
and (5) reduce the amount remitted to the
Treasury, allowing parks to retain more
receipts for park needs. (OMB scoring: $40 million. CBO scores provision as
zero until it sees specific language.)
DECISIONS
Programmatic
•
Structure
Accept Conference (Republican)
(Incumbent preferences; appreciating investment interests; off-budget accounts; most receipts to Treasury)
Modify Conference
(Limited incumbent preferences; appreciating investment interests; Treasury account; most receipts to parks)
Substitute based on S. 309 (Administration)
(No incumbent preferences; depreciating investment interests; Treasury account; most receipts to parks)
89
Republicans
�Savings Options
Most/all receipts to Treasury
Most/all receipts to parks
Budgetary Consequences
1996
Accept Conference:
Modify Conference:
Substitute:
1997
(Outlays in Millions of Dollars)
1998
1999
2000
2001
2002
—
—
—
-—
-5
-4
-4
-22
-10
-10
-28
-12
-12
-11
-6
-6
-16
-8
-8
90
�NATURAL RESOURCES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Coalition
Daschle
Republicans
Reclamation Reform Act
No provision.
No provision.
The bill would fundamentally change
Western water policies by allowing large
landowners to receive unlimited amounts
of low-priced water from federal projects
if they prepay the amount they now owe
the U.S. with discounted dollars. It would
give large farming operations benefits
enacted in 1902 to assist small
homesteaders. OMB and Interior believe
the provision will have a net cost of $ 18
million over seven years, and an increased
federal deficit over the longer term.
(-$63 million)
DECISIONS
Programmatic
- Accept Conference
Allow prepayment of water contracts by discounting annual payments.
- Do not accept Conference
Prepayment of water contracts would produce OMB-estimated loss to Treasury (beyond 7 years) by giving large farming operations benefits enacted in 1902 to assist
small homesteaders. (Administration)
- Modify Conference
Allow prepayment of water contracts at face value.
91
�Budgetary Consequences
1996
Estimates for:
Conference proposal:
Modify proposal,
repayment at face
value
1997
-166
-17
(Outlays in Millions of Dollars)
1998
1999
To be estimated
92
2001
2002
29
29
2000
29
29
�December 27, 1995 (1:20pm)
NATURAL RESOURCES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Coalition
Daschle
Republicans
Sly Park, CA, Water Project Transfer
No provision.
No provision.
93
The bill would transfer the Sly Park
facilities of the Department of the
Interior's Central Valley Project (CVP)
and cancel the water district's future
financial obligations to the U.S. for about
half the present value of the district's
projected payments to the Treasury over
the next 35 years ($4.0 million vs. $7.5
million). The U.S. would be left with no
collateral against another $17 million
district obligation to the U.S. for a
conveyance system also transferred It
would also exempt the transfer from any
required NEPA and ESA reviews and
include, at no additional cost to the water
district, all water rights associated with the
project that are currently held in trust by
the U.S. The provision would increase the
federal deficit over the longer term. These
terms set an adverse precedent for
transferring other units in the CVP, both
in terms of value received and
environmental impact.
(-$3 million)
�DECISIONS
Programmatic
- Accept Conference
Transfers Sly Park project facilities and water rights to non-Federal interests, exempts transfer from environmental laws, and specifiesfinancialterms that would produce
OMB-estimated loss to Treasury (beyond 7 years).
- Do not accept Conference.
Direct DOI to address this and other proposed Central Valley Project transfers through the Bay/Delta advisory process headed by DOI Deputy Secretary Garamendi
(Administration)
Budgetary Consequences
(Outlays in Millions of Dollars)
J996
Estimates for:
Conference:
-
_1997
-4
j m
0
_L999
_2Q00
0
0
94
^001
0
2002
0
�NATURAL RESOURCES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Federal Oil and Gas
Royalty Simplification
No provision.
No provision.
The Administration support aspects of the
conference proposal that would: (1) allow
for the payment of interest on overpayments; (2) allow industry to recoup
excess payments on offshore leases
beyond the current two-year limit; (3)
accelerate the audit and appeals process
through a six-year statute of limitation on
Government audits, and a limit on the time
for decisions on appeals, (although the
Administration does not support the 30
month limit in the proposal); (4) set
criteria defining marginal properties and
subsequent approval of the pre-payment of
royalties; and (5) set time frames for the
processing of refunds.
The Administration would amend the
conference proposal to: (1) delete the new
definition of lessee and lessee liability,
(maintain current Federal Oil and Gas
Management Act (FOGRMA) definition;
(2) delete provisions regarding delegated
states;
95
The provision is intended to simplify
federal oil and gas royalty collections and
procedures and increase royalty
collections through faster appeals and
settlements of royalty disputes. The bill
would: (1) authorize MMS and other
federal agencies to delegate to states most
functions related to onshore and "8(g)"
(i.e., 3 to 6 miles offshore) leases;
(2) require MMS not to perform an audit
or accounting activity unless it expects to
collect more than the cost of that activity;
(3) modify the definition and duties of
lessees; (4) create a new process for
federal agencies and lessees to review
royalty obligations, including a six-year
statute of limitations on Government
audits; and (5) limit the time for
considering administrative appeals to 30
months. Interior and OMB estimate that
the bill would cost about $70 million over
seven years due primarily to lower
revenue estimates from accelerated
appeals and lost audit revenue.
(-$45 million)
�NATURAL RESOURCES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Federal Oil and Gas
Royalty Simplification
(3) include provisions that would require
interruption of the six-year statute of
limitations if, under an audit procedure, an
order to perform a restructured
accounting is issued (so that the new sixyear statute of limitations would not allow
a payor to delay corrections necessary for
the audit to continue, to escape potential
audit payments); (4) delete provision that
would prohibit MMS from performing an
audit or accounting activity unless it
expects to collect more than the cost of
that activity; and (5) change the time limit
for decisions on appeals to 36 months
from the 30 month limit in the
reconciliation bill. (CBO scoring would
be close to scoring of reconciliation
proposal, -$51 million.)
DECISIONS
Programmatic
•
Accept Conference (Republican)
-
modify definition and duties of lessee
authorize delegation of functions related to Federal oil and gas leases to States
prohibit audit or accounting activity unless collections exceed costs
pay interest on royalty over-payments
96
Republicans
�- allow industry to recoup excess payments on offshore leases beyond two-year limit
- set six-year statute of limitation on Government audits
- limit time for considering administrative appeals to 30 months
•
Modify Conference (Administration)
-
delete new definition of lessee and lessee liability provisions
delete provisions regarding delegation of duties to States
delete provisions regarding cost effective audit and accounting activities
provide for interruption of six-year statute of limitation in limited cases
- change time limit for considering administrative appeals to 36 months
•
Delete Conference
Budgetary Consequences
(Outlays in Millions Of Dollars)
19%
Accept Conference
Modify Conference
6
5
1997
-12
-11
1998
8
7
1999
2000
97
2002
7
6
-7
-6
2001
6
5
-5
4
�December 27, 1995 (1:20pm)
NATURAL RESOURCES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Collbran Project, CO
Collbran Project, CO
No provision.
Republicans
Collbran Project, CO
No provision.
The bill would transfer the Department of
the Interior's Collbran Project (located
near Grand Junction, in western Colorado)
in the year 2000 for a set price and cancel
the water district's future financial
obligations to the U.S., resulting in a net
present-value loss to the Treasury ($12.3
million vs. $18.3 million). The section
also would exempt the transfer from
NEPA and does not provide sufficient
assurance to de-authorize the federal
governmentfromfunding additional costs
and liabilities following the transfer. The
provision would increase the federal
deficit over the longer term. (-$7 million)
DECISIONS
Programmatic
- Accept Conference
Transfer Collbran project to non-federal interests at less than present value of annual repayment, not subject to NEPA, and without definite termination of federal
responsibilities.
- Modify Conference
Transfer project based on the project's present value, subject transfer to NEPA, and require the water district clearly to assume responsibility for operations and
remaining liabilities. (Administration)
98
�Budgetary Consequences
(Outlays in Millions of Dollars)
Am
1991
im
.1222
2m
Estimates for:
Conference proposal:
-12
Modify Transfer for present
value:
-18
99
_2Q01
2002
�NATURAL RESOURCES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (T.20pm)
Daschle
Coalition
Republicans
Deepwater (OCS) Royalty Relief
No provision. Title III of S. 395,
supported by the Administration and
signed by the President on November 28,
1995, is identical to this provision, except
that the period under which deep water
royalty relief is applied is extended from 5
to 7 years in the conference provisions.
No provision.
100
Provision extends deep water royalty
relief, enacted as Title III of S.395, from 5
to 7 years.
(-$40 million)
�NATURAL RESOURCES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Central Utah Project (CUP)
Prepayment
No provision.
Similar to the conference version The
Coalition proposal would give the
Secretary of the Interior some discretion
in setting prepayment terms, but these
terms must be "similar to" the Jordan
Aqueduct prepayment referenced in the
conference bill. Treasury is still likely to
lose about $49 million over seven years.
(-$219 million)
101
Thebill would authorize a prepayment of
a portion of the capital costs of the
Department of the Interior's CUP, which
provides water in the Salt Lake City area,
under terms authorized in 1992 for
prepayment of another part of the CUP,
the Jordan Aqueduct. The terms of the
Jordan Aqueduct prepayment, which the
proposed legislation would apply more
broadly, failed to account for Treasury
losses that resultedfromthe use of taxfree bonds to finance the prepayment, and
did not adequately protect federal financial
interests. The provision would increase
federal revenues temporarily, but result in
a net increase in the federal deficit over
the longer term OMB and Interior
estimate that if taxfreefinancing is used,
the Treasury would lose about $49 million
over seven years. The current language
does not allow the U.S. to add an amount
to the prepayment necessary to offset the
Treasury losses.
(-$219 million)
�DECISIONS
Programmatic
- Accept Conference and Coalition
Prepay a portion of the Central Utah Project without recovering federal revenue losses associated with taxfreefinancing.
- Modify Conference and Coalition #1
Prepay under terms that recover revenue losses associated with tax free financing. (Administration)
- Modify Conference and Coalition #2
Amend provision to ensure that the language does not expand local water conservancy district's authority to use tax-free financing.
Budgetary Consequences
(Outlays in Millions of Dollars)
1926
1997
-
-67
-
-81
i m
1999
2000
2001
2QQ2
-127
2
2
-31
2
-155
2
2
-38
2
Estimates for:
Conference/
Coalition proposal:
Modify Recover revenue
losses
102
�December 27, 1995 (1:20pm)
NATURAL RESOURCES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Ski Rental Fees
(Forest Service)
No provision.
No provision.
103
The bill contains a provision similar to ski
industry supported bills introduced in the
House and Senate. The provision would
replace the existing Forest Service ski area
permit rental formula with a new formula.
The Forest Service and USDA have
proposed a policy to change the formula
administratively to ensurefairmarket
value return to the government. Fees are
required to reflect fair market value under
the National Forest Ski Permit Act of
1986. OMB scored this at -$3 million
under the assumption that all ski areas
would choose the lowest available fee in
every year. CBO assumed that more ski
areas would convert to the new fee
system, even if the fee were higher in
earlier years (CBO scores thi? provision as
a loss in the years 1999 and beyond). (-$2
million)
�DECISIONS
Programmatic
•
Structure
New formula to charge ski resorts for use of National Forest System lands (Republican)
Existing formula (Administration)
•
Savings Options
Fair market value return to the Government
Budgetary Consequences
(Outlays in Millions of Dollars)
1996
Fee receipts:
—
1997
—
1998
-i
1999
104
2001
—
-1
2000
~
2002
�December 27, 1995 (1:20pm)
NATURAL RESOURCES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Sale of Department of the Interior
(DOI) Aircraft
No provision.
No provision.
Provision would require the Secretary of
the Interior to contract with private
entities for provision of all aircraft services
by October 1, 1996 (other than those
available from existing DOI aircraft whose
primary purpose is wildland firefighting),
and to sell all of the aviation assets used
by the Department (except firefighting
aircraft). (-$7 million)
DECISIONS
Programmatic
•
Accept provision (Republicans)
-
•
•
Delete provision (Administration)
Provision would be acceptable if amended to permit DOI to retain Department-owned aircraft if it is more cost-effective to do so.
Budgetary Consequences
•
Sell aircraft
(small, short term mandatory savings; increased discretionary Costs)
(Outlays in Millions of Dollars)
.1996
_1997
j m .
.1999
2000
Estimates for
aircraft sale:
-1
-3
-3
0
0
105
2001
0
_2Q02
0
�NATURAL RESOURCES - DRAFT
December 27, 1995 (1:20pm)
Coalition
Republicans
Hetch Hetchy Dam
(Yosemite, CA)
Administration Offer of 12/15/95
(7-Year Plan)
Hetch Hetchy Dam
(Yosemite, CA)
Daschle
Hetch Hetchy Dam
(Yosemite, CA)
No provision.
No provision.
This provision would raise the annual
rental for the use of land within Yosemite
National Park by the City of San Francisco
for a dam and reservoir that supplies
drinking water to the city. Following
enactment, the rate will be determined
annually by the Federal Energy Regulatory
Commission, but the rate may not be less
than $2 million. The funds shall be placed
in a separate fund, to be used subject to
appropriations for the annual operation of
Yosemite or other national parks in
California. (-$14 million)
DECISIONS
Programmatic
•
Accept Conference (Republicans)
Budgetary Consequences
•
Increase fees for land rental for dam and reservoir
(Outlays in Millions of Dollars)
i926
Estimates for
Land rental (net):
i927
J998
-2
-2
-2
J999
2000
106
2002
-2
-2
2001
-2
-2
�December 27, 1995 (1:20pm)
NATURAL RESOURCES - DRAFT
Daschle
Coalition
Republicans
Similar to Republicans. Includes sale or
leasing of refined helium facilities instead
of terminating the refinery operations.
(-$62 million)
Administration OfTer of 12/15/95
(7-Year Plan)
The reconciliation bill would terminate
helium refining activities within 18 months
of enactment, allowing for an orderly
transition to private suppliers for current
federal customers. An additional 24
months would be allowed for disposal of
the facility and equipment. The existing
federal stockpile of crude helium would be
sold on the open market over a 20 year
period in consultation with the helium
industry in order to avoid market
disruption. Price would be set according
to a formula based on the remaining
volume in the stockpile and the remaining
debt owed the Treasury. (-$47 million)
Helium Program Termination
Administration included similar provision
as part of the 1996 Budget. (OMB scores
-$30 million. CBO scores -$23 million.)
However, the conference provision would
sufficiently achieve the overall objectives
sought by the Administration and is
acceptable.
DECISIONS
Programmatic
Accept Reconciliation proposal to terminate refinery operations within 18 months.
(Administration and Republican)
Budgetary Consequences
i996
Estimates for
Termination
-4
_1997
(Outlays in Millions of Dollars)
1998
1999
2000
.2001 2002
-7
-7
-7
-7
-7
107
-8
�NATURAL RESOURCES - DRAFT
December 27, 1995 (1:20pm)
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Pesticide Maintenance Fees
This provision extends the EPA
No provision
Administrator's existing authority to
impose annual pesticide maintenance fees
from September 30, 1997 until September
30, 1999. It also requires the
Administrator to collect additional fees for
fiscal years 1996 through 1999 to support
pesticide re-registration activities.
(OMB scoring: less than $1 million
savings; CBO scoring: -$1 million)
No provision.
No provision.
DECISIONS
Programmatic
Structure
Adopt fee extension, fee increase, and corresponding mandatory spending.
Budgetary Consequences
(Outlays in Millions of Dollars)
_1926
Estimates for
increases net of
spending
-1
J997
-0
J99S
-1
J999
2000
-0
2
108
JQOi
1
2002
0
�NATURAL RESOURCES - DRAFT
December 27, 1995 (1:20pm)
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
National Park Service
Leasing Authority
Proposal would expand National Park
Service (NPS) authority to lease out park
facilities to public or private entities,
provided the uses are consistent with park
purposes and programs. Half of the
revenues generated by such leases would
remain available without further
appropriation for the NPS to use for park
improvements; the other half would be
deposited in the Treasury. (OMB scoring$102 million. CBO scores provision as
zero.)
No provision.
No provision.
DECISIONS
Programmatic
Structure
Authorize leasing of certain park facilities (Administration)
No leasing
Savings Options
Most/all receipts to Treasury
Most/all receipts to parks
Budgetary Consequences
i996
Leasing receipts (CBO):
1997
0
(Outlays in Millions of Dollars)
_1998
1999
2000
0
0
0
109
^001
2002
0
�NATURAL RESOURCES - DRAFT
December 27, 1995 (1:20pm)
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
National Park Service Fees
No provision; however, the President's
1996 Budget proposed to increase
admission, recreation, and commercial
user fees, with all new receipts returned to
the parks through mandatory spending.
(-$32 million in one-time discretionary
savings due to one-year lag between
collections and expenditures)
No provision.
The bill would authorize the National Park
Service, Bureau of Land Management,
and Forest Service to increase admission,
recreation, and commercial user fees.
Receipt amounts above specified levels in
the bill would be available to the agencies,
without further appropriation, for visitor
services and operating expenses.
(-$83 million)
DECISIONS
National Park Service Fees
Programmatic
Structure
Increase fees (Republican)
Increase fees/new receipts to parks (Administration)
No increase in fees
Savings Options
Most/all receipts to Treasury
Most/all receipts to parks
Budgetary Consequences
J99£
Increase fees (most
receipts to Treasury):
-7
1997
-13
(Outlays in Millions of Dollars)
1998
1999
2000
.2001 2QQ2
-14
-10
-11
-14
110
-14
�NORTHERN MARIANAS - DRAFT
December 27, 1995 (1:20pm)
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Repeals direct assistance to the
Commonwealth of the Northern Mariana
Islands. (-$126 million)
No provision, but the President's 1996
Budget contained a provision that would
repeal the mandatory grants but redirect
mandatory funding to other long-standing,
high-priority needs, mostly infrastructure,
in the small, US territories (Northern
Marianas, Guam, American Samoa, and
the Virgin Islands). This provision would
result in $10 million in discretionary
savings.
DECISIONS
Programmatic
*
Repeal grants (Coalition)
*
Redirect grants (Administration)
Budgetary Consequences
Repeal grants
Redirect grants
96
-0
0
97
-7m
0
98
•14m
0
99
-21m
0
00
-28m
0
01
-28m
0
111
02
-28m
0
Republicans
No provision
�TRANSPORTATION - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Highways Minimum
Allocation Program
Highways Minimum
Allocation Program
This provision lowers the contract
authority available for the Highway
"Minimum Allocation" program by $536
million in 1996. Minimum allocation
program fiinds are provided to states that
contribute more in revenue into the
Highway Trust Fund than they receive
from the federal-aid highway program.
This provision takes advantage of an
overestimate in the program's baseline; it
does not actually withdraw any funds from
the states. CBO recently adjusted its
baseline to correct for this overestimate.
Therefor, there are no savings.
Republicans
Highways Minimum
Allocation Program
No provision.
DECISIONS
None required.
112
Same provision.
�December 27, 1995 (1:20pm)
TRANSPORTATION - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Vessel Tonnage Duties
Vessel Tonnage Duties
Extend vessel tonnage fees established in
OBRA 90 scheduled to expire on October
1,1998
This provision extends an existing fee set
to expire at the end of 1998. The fees are
collected by Customs based on the cargocarrying capacity of a vessel entering a US
port. It is credited to the Department of
Transportation to offset costs incurred by
the Coast Guard for services provided to
the merchant Marine industry.
Vessel Tonnage Duties
There is no policy disagreement on
extending these fees. OMB assumed
extension of these fees in its baseline.
Therefore, there were no savings under
OMB scoring. As a result, it was not
included in the Administration's bill.
DECISIONS
No disagreement.
113
�TRANSPORTATION - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Sale of Governor's Island
Sale of Governor's Island
This provision requires GSA to sell at fair
market value Governors Island, a 172-acre
US Coast Guard facility located in NY
harbor. The State and City of New York
are given first right of refusal to purchase
all or part of the island. This right can be
exercised jointly or by either party alone.
To facilitate the sale, the laws and
regulations that normally apply to disposal
of federal property are waived. Sale
proceeds are to be deposited into the
General Fund of the Treasury. Coast
Guard plans to vacate Governors Island by
January 1, 1998.
(-$.5 billion in 1999)
Republicans
Sale of Governor's Island
Same provision.
DECISIONS
No disagreement.
114
Same provision.
�TRANSPORTATION - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Sale of Air Rights
at D C s Unition Station
Sale of Air Rights
at D C s Unition Station
This provision requires GSA to sell the air
rights above the train tracks at DCs
Union Station. Amtrak must transfer its
Union Station air rights to the federal
government at no cost for inclusion in this
sale or it will lose access to federal funds.
(-$.04 billion in 1997)
Republicans
Sale of Air Rights
at D C s Unition Station
Same provision.
DECISIONS
No disagreement.
115
Same provision.
�December 27, 1995 (1:20pm)
TRANSPORTATION - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Coalition
Republicans
Reduction in Taxes on Jet Fuel
Reduction in Taxes on Jet Fuel
Daschle
Reduction in Taxes on Jet Fuel
No provision.
No provision.
DECISIONS
Programmatic:
Reduce aviation excise taxes for two years?
Maintain current law?
Budgetary Consequences:
Revenues:
96
-417m
97
-439m
98
-8m
116
This provision would reduce jet fuel taxes
paid by commercial airlines by 4.3 cents
per gallon for 1996 and 1997. This tax
was included in the 1993 reconciliation act
and took effect October 1, 1995. For alt
other modes of transportation, the tax
went into effect October 1993. However,
airlines were granted a two-year delay to
provide time to recover from their poor
financial condition.
(-$863 million revenues for 1996-98)
�TRANSPORTATION - DRAFT
December 27, 1995 (1:20pm)
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Extension of
Aviation Trust Fund Taxes
Extension of
Aviation Trust Fund Taxes
Taxes expire on December 31, 1995.
Assumes extension in baseline. Therefore
language was included in our bill.
Republicans
Extension of
Aviation Trust Fund Taxes
No provision.
Extended until October 31, 1996.
DECISIONS
No disagreement.
Revenue loss from nol extending:
96
-4.3b
97
-6.2b
98
-6.6b
99
-7.0
00
-7.5
117
01
-7.9
02
-8.4
�December 27, 1995 (1:20pm)
TRANSPORTATION - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Highway Demonstration Projects
Highway Demonstration Projects
No provision.
Republicans
Highway Demonstration Projects
No provision.
Senate included a provision to rescind 15
percent of authorized highway demo funds
(savings of $316 million over seven years).
The House contained no similar provision.
The Senate provision was dropped in
conference. However, the rescission of
new fiinds for both appropriated and
authorized demos was assumed in the
Conference Budget Resolution.
DECISIONS
The Administration has never supported highway demonstration projects and would be amenable to a provision which reduces spending for these projects in whole or in part.
118
�TRANSPORTATION - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Rail Safety User Fees
Rail Safety User Fees
This provision would permanently extend
the current rail safety user fee. This fee
offsets the costs incurred by the Federal
Railroad Administration for inspection,
enforcement, and related activities
intended to ensure the safe operation of
passenger andfreightrailroads. This fee
expired at the end of 1995. This
provision was included in the February
Budget. (-$.315 billion)
Programmatic
Extend fee (Administration proposal)
*
Do not extend fee (Republican proposal)
Budgetary Consequences
*
Rail Safety User Fees
Same provision.
DECISIONS
*
Republicans
$45 million annual savings beginning in 1996
19
No provision.
�TRANSPORTATION - DRAFT
December 27, 1995 (1:20pm)
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Federal Employee Parking
Federal Employee Parking
February Budget proposed to allow
federal agencies to charge "commercial
rate" parking for federal employees.
Savings, however, would be earmarked to
subsidize mass transit fares for federal
employees who commute to work. No net
savings.
Republicans
Federal Employee Parking
No provision.
No provision^ House Transportation and
Infrastructure Committee proposed to
increase parking rates for Executive
Branch employees to "commercial rates"
(excludes Judicial and Legislative
Branches). Proceeds would be used for
deficit reduction ($0.8 billion over seven
years.) Provision dropped prior to House
Floor action. No Senate provision.
DECISIONS
Programmatic:
• Structural Options:
Savings Options:
1. Allow, but do not require, Federal agencies to impose commercial rate parking for their employees (Administration proposal).
2. Require Federal agencies to impose commercial rate parking for their employees and visitors (House Transportation and Infrastructure
Committee proposal, not enacted).
1. No savings. Use parking receipts to subsidize mass transit fares (Administration proposal).
2. Use parking receipts td reduce the deficit (Congressional proposal, not enacted).
Budgetary Consequences:
The Administration's proposal (Option 1 under Structural and Savings options) has no budgetary consequences.
The proposal considered, and rejected, by Congress (Option 2 under Structural and Savings options) was scored by CBO as $0.8 billion over seven years ($0,065 billion in
1996, growing to $0,136 billion in 2002).
120
�December 27, 1995 (1:20pm)
TRANSPORTATION - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Radiological Emergency
Preparedness Fees
Radiological Emergency
Preparedness Fees
President's February and June Budgets
proposed reauthorization through
appropriations language for 1996 of the
assessment and collection of fees
applicable to persons subject to
radiological emergency preparedness
regulations (offsetting receipts of -$12
million). The Administration's proposal
for reconciliation would reauthorize the
fees through 2002. The proposal is
identical to the Conference bill. (OMB
and CBO: -$84 million.)
Republicans
Radiological Emergency
Preparedness Fees
Same provision. (OMB and CBO: -$84
million)
DECISIONS
No decision necessary. Same proposal in all plans.
121
Same provision. (OMB and CBO: -$84
million.)
�DEBT COLLECTION - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Included in the Administration's proposal
are provisions that will offset delinquent
Federal debts against certain Federal
payments, barring delinquent debtors from
obtaining Federal credit, create a
government-wide cross-servicing authority
for debt collection at Treasury, allow the
Department of Justice authority to
contract with private attorneys to collect
delinquent Federal debt, allow Federal
agencies to use nonjudicial foreclosure in
all 50 states, allow the IRS to levy certain
Federal payments to collect overdue
Federal taxes, and adjust civil monetary
penalties for inflation. The
Administration's proposal has bipartisan
sponsorship in the House Committee on
Government Reform and Oversight,
Subcommittee on Government
Management Chairman Horn and the
ranking member, Representative Maloney.
(OMB and CBO: -$2 billion).
December 27, 1995 (1:20pm)
Daschle
Coalition
Establishes statutory requirement that
federal agencies implement OMB Circular
A-129 strengthening procedures for debt
collection. No savings.
DECISIONS
122
Republicans
No provision.
�PUERTO RICO - DRAFT
(also included in REVENUES section)
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Funds from reforming the possessions tax
credit within Puerto Rico would be
available for use for programs under the
Social Security Act and to promote job
creation. ($3 .8 billion)
Republicans
No provision.
DECISIONS
123
�CPI AND COLAS - DRAFT
(also included in REVENUES section)
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
CPI Method
CPI Method
Assumes Bureau of Labor Statistics
formula bias change in 1997 (.2
percentage points) and rebenchmarking in
1998 (.1 percentage points).
CPI Method
Same as Republicans.
COLA/Indexation Policy
No provision.
Republicans
COLA Indexation Policy
Reduces COLAs and income tax
indexation by .5 percentage points for
1997, .3 percentage points in 1998, and .1
percentage points for 1999-2002.
Individual beneficiary's cost-of-living
adjustment would be based on the COLA
for the average benefit in the program. So
beneficiaries with benefits below the
average would receive higher percentage
COLAs. Programs affected include Social
Security, federal civilian retirement,
military retirement, railroad retirement,
and veterans compensation
(oudays -$29.4 billion; revenues $21.4 billion;
net deficit effect -$50.8 billion)
DECISIONS
124
Assumes formula bias change in 1997 (.2
percentage points) and rebenchmarking in
1998 (.2 percentage points).
COLA Indexation Policy
No provision^
�MEDICARE- DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Overview
Overview
Overview
Cuts $98 billion, net of new benefits, from
projected spending over 1996-2002.
Cuts $153 billion, net of new benefits and
revenues, in projected spending over
1996-2002.
Cuts $226 billion from projected spending
over 1996-2002.
Includes $11 billion from beneficiaries (25
percent Part B premium only), $43 billion
from hospitals; $20 billion from
physicians, $12 billion from managed care,
$16 billion from home health and nursing
homes, and $9 billion from other providers
(incl. fraud and abuse) and $13 billion in
costs for new benefits.
2
Includes $23 billion from beneficiaries (25
percent Part B premium and incomerelated premium), $55 billion from
hospitals, $20 billion from physicians, $25
billion from managed care, $16 billion
from home health and nursing homes, $7
billion from other providers (incl. fraud
and abuse), and $8 billion new revenue
from extending the HI payroll tax to all
state and local government employees.
1
Note: We expect that, vyith modifications
in pricing and policy, the Administration's
Medicare proposals could score $124
billion under CBO's December baseline.
Annual spending goals are set. Medicare
Commission established to monitor
compliance and recommend changes. I f
goals not met, President must submit
legislation with changes within 90 days.
2
Numbers may not add to total due to rounding.
125
Includes $54 billion from beneficiaries
(31.5 percent Part B premium and
income-related premium), $83 billion from
hospitals, $12 billion from physicians, $19
billion from managed care, $28 billion
from home health and nursing homes, $20
billion from other providers (incl. fraud
and abuse) and $12 billion from the "failsafe" savings mechanism. Note: These
figures reflect CBO scoring of December
13, 1995. December 15 offer by
Republicans would reduce total savings to
$202 billion. According to offer,
beneficiary savings would be reduced by
$10 billion and savings from "other
providers" by $14 billion.
1
Annual spending limits set and enforced
with "lookback" cuts distributed across
provider sectors. After 2002, annual
spending growth limited to 5 percent per
capita.
�DECISIONS
Issue: Level of Cuts
What is the proper level of Medicare expenditure reductions that still assure beneficiary access to high quality care and assure that providers are fairly compensated?
What is the proper mix of Medicare expenditure reductions across various provider groups (e.g., hospitals, physicians) and beneficiaries?
Should savings only comefromspecified reductions .or should a fail safe be used? If a fail safe is used, how should it be structured?
126
�MEDICARE- DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Preventive care
Preventive care
Preventive care
$5 billion in new preventive care benefits.
$2 billion in new preventive care benefits.
DECISIONS
Issue: New Preventive Care Benefits
Should some new benefits be granted to Medicare beneficiaries to improve preventive care?
If so, which benefits (e.g., waive mammography copayments) , and when should they be phased-in (e.g., 1996 versus 2001)?
127
No new benefits.
�MEDICARE- DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Medicare subvention
Medicare subvention
No provision.
Republicans
Medicare subvention
Requires Medicare payment to
Department of Defense managed care
plans.
No provision.
DECISIONS
Issue: Medicare Subvention
Given the concern regarding the status of the Medicare Part A trust fund, should a policy of Medicare "subvention" for DoD be adopted? [Medicare subvention refers to a
requirement that Medicare pay for beneficiaries who are dually eligible for DoD and Medicare benefits, but choose to use DoD facilities].
128
�MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Managed Care Overview
Managed Care Overview
Managed Care Overview
Expands managed care choices but does
not include medical savings accounts
(MSAs). Retains link between fee-forservice costs and managed care payments.
Does not directly Hmit growth in payments
to plans (two savings proposals reduce
payments slightly).
Expiands managed care choices including
MSA demonstrations. Severs link
between fee-for-service costs and
managed care payments. Limits growth in
payments to plans at 6.0 percent per year
for 1996-1998 and 5.5 percent thereafter.
Expands managed care choices including
MSAs. Severs link between fee-forservice costs and managed care payments.
Limits growth in payments to plans at
about 5 percent per year.
Increasing beneficiary choice of plans
Increasing beneficiary choice of plans
Increasing beneficiary choice of plans
Annual open enrollment period, but allows
monthly enrollment and disenrollment.
18-months of monthly enrollment in
Medicare Choice plans, then annual
enrollments with 90-days to retreat to
traditional Medicare.
129
Two-year transition allowing monthly
enrollment in Medicare Plus plans, then
annual open enrollment with a one-year
lock-in, except for a one-time 90-day
grace period for retreat to traditional
Medicare.
�December 27, 1995 (1:20pm)
MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-YearPlan)
Coalition
Medical sayings account
No medical savings account provision.
Republicans
Medical savings account
Daschle
Medical savings account
Demonstration of Medisave Accounts
with high-deductibles.
Optional Medical Savings Accounts
accrue difference between average
Medicare payment and payments of risk
adjusted premiums to high-deductible
plans. MSA funds may be used for any
qualified medical expense (IRS definition),
with only interest taxable. Use of MSA
for non-medical purposes taxable.
Minimum balance is 60 percent of
deductible. High-deductible limited to
$6,000, indexed. No "gap" insurance
permitted for high-deductibles. Expenses
that would be included under Part A or B
must count toward deductible. Plans must
provide standard Medicare benefits
(including cost-sharing) after highdeductible is reached.
130
�MEDICARE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Allows preferred provider organizations
and provider-sponsored organizations to
participate. No cash rebate allowed.
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Expands eligibility to PPO, POS,
provider-sponsored organizations.
Medicare Choice must offer traditional
Medicare service package, may offer
more. Plans may give cash rebates up to
Part B premium. Plans must cover: a)
emergencies outside network without
prior authorization; b) some other
necessary outside network services.
Expands eligibility to PPO, POS,
provider-sponsored organizations.
Medicare Plus must cover traditional
Medicare services, may offer more for
additional premium. Medicare Plus plans
with costs lower than average govt,
contribution must enrich services. If
govt, payment greater than premium,
excess may pay for supplemental benefits
or a 75 percent refund to beneficiary.
131
�December 27, 1995 (1:20pm)
MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Coalition
Payment Methods
Creates partial risk payment methodology
option, but retains current risk payment
formula based on FFS costs.
Republicans
Payment Methods
Daschle
Payment Methods
Delinks paymentfromFFS costs to reduce Delinks paymentfromFFS costs to reduce
growth. Compresses geographic variation growth. Input price adjustment/local rate
in payment rates.
ratio for payments reaches 30/70 by 2002.
132
�MEDICARE- DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
In consultation with National Association
of Insurance Commissioners, Secretary
will develop federal solvency standards.
PSNs must have enrollment of 5,000.
Secretary to issue quality standards.
Interim standards by Secretary with
permanent regulations within four years
after consultation with NAIC, other
contracting entities and beneficiaries.
Must recognize multiple means to
demonstrate solvency.
NAIC to develop standards for Secretary
on solvency, market conduct, consumer
protection, quality. PRO or approved
other review Of plan's QA.
Provider-sponsored delivery systems
certified by state (using federal solvency
guidelines).
Provider-sponsored networks must
achieve minimum 1,500 enrollment within
3 years.
Provider-sponsored delivery systems
certified by states (with federal solvency
guidelines) with minimum enrollment of
1,500 (5,000 for other plans). Secretary
creates negotiated rule-making committee.
133
�MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Beneficiary Protections
Beneficiary Protections
Republicans
Beneficiary Protections
Includes premium cap.
Includes premium cap:
Premium cap - premiums plus cost-sharing
may not exceed actuarial value of
Medicare deductibles and co-insurance.
Extra-billing (charging the beneficiary
more than the Medicare-approved
payment) not allowed for authorized plan
services. For unauthorized services,
current law limits apply (i.e., charge may
be no more than 15 percent above
Medicare-approved amount).
Maintains current law protections for nonnetwork services, if authorized. For
unauthorized services, no extra-billing
protections.
No extra-billing protection for
beneficiaries enrolled in FFS Medicare
Plus plans and when receiving care out-ofnetwork when enrolled in Medicare Plus
HMOs.
134
�DECISIONS
Issues: Medicare Choices and Managed Care
How should the Medicare Choice/Managed Care benefit be structured to assure that adverse beneficiaryriskselection does not occur (resulting in healthy beneficiaries choosing to
leave traditional fee-for-service Medicare) or that providers do not desert traditional fee-for-service (FFS) Medicare .
What should be the payment mechanism for managed care/choice plans, should payment increases to these plans grow at the same pace as traditional FFS growth rates?
How should payment rates vary by geographic area (urban and rural)?
How should Provider Service Networks be regulated regarding (e.g., solvency standards, anti-trust)?
Should there be a Medical Savings Account option? If so should the MSA benefit be offered initially as a demonstration?
How should beneficiary enrollment be structured (e.g., through the plans or through HHS?; what should the enrollment lock-in period be?)?
How should beneficiaries be protected under these new, often untested delivery mechanisms (e.g., premium caps; protections from extra billing by providers; quality)?
135
�MEDICARE- DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Savings - Part A (Hospital, Home
Health, Nursing Homes, Revenues)
Savings - Part A (Hospital, Home
Health, Nursing Homes, Revenues)
All hospital updates at market-basket
minus 1.0 percentage points through
2000, 1.5 for 2001-2. Permanently
captures savings from OBRA90 capital
payments reduction for prospective
payment system (PPS) hospitals. NonPPS at 85 percent capital costs through
2005. Disproportionate share hospital
adjustment reduced by 10 percent.
Freezes almost all payment updates
(physicians, outpatient hospitals, labs, and
durable medical equipment) for 1996;
subsequent updates from lower base.
Urban hospital updates for 1997-2002 at
1.5 percentage points below market
basket. Rural hospital updates for 19972002 at .5 percentage points below
market-basket. Non-PPS hospital update
at one percentage point below market
basket for 1997-2002. Capital payments
for all hospitals down 10 percent.
136
Republicans
Savings - Part A (Hospital, Home
Health, Nursing Homes, Revenues)
PPS hospital payment update at marketbasket minus 2 5 percentage points in
1996, then 2.0. Non-PPS hospitals at
market-basket minus 2 5. Capital .
payments - PPS down 15 percent, nonPPS down 10 percent. Disproportionate
share hospitals payments declines reaching
3 0 percent in 2001-2. Phase-down bad
debt reimbursements to 75 percent in
1996, 60 percent in 1997, and 50 percent
in 1998.
�December 27, 1995 (1:20pm)
MEDICARE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Reduces Indirect Medical Education
payments to 7.2 percent in 1996, 6.8
percent 1997-99, 6.3 percent in 2000, and
6.0 percent thereafter.
Daschle
Coalition
Republicans
Reduces IME to 6.0 percent from 1996Reduces IME payments to 6.7 percent in
99. Increases it to 6.8 percent in 2000 and 1996, 6.0 percent 1997-98, 5.6 percent in
thereafter.
1999, 5.3 percent in 2000, and 5.0 percent
thereafter. Set up a "Teaching Hospital
and Graduate Medical Education Trust
Establishes Teaching Hospital and
Fund" funded from three sources:
Graduate Education Trust Fund.
Medicare IME; Medicare GME; general
revenue ($13.5 billion 1997-2002).
137
�MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-YearPlan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Freezes the total number and the number
of non-primary care residency positions
reimbursed under Medicare at a hospitalspecific level, effective October 1, 1995
for IME and GME. Extends OBRA93
freeze on GME updates for non-primary
care residents for an additional five years
(through 2000). Reduces payments for
residents past their initial residency
periods to .5 FTE for IME. Counts work
in non-hospital settings for IME (as long
as there is no increase in the hospital's
intern and resident-to-bed ratio). Allows
GME payments to non-hospitals for
primary care residents in non-hospital
settings, when a hospital is not paying for
the resident's salary in thai setting.
Republicans
Sets limits on Graduate Medical
Education payments by limiting number of
FTE residents to that on August 1, 1995.
Allows consortia to receive payments.
Reduces payments for residents past their
initial residency periods to .25 FTE.
138
�MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Extends OBRA93 Skilled Nursing Facility
(SNF) freeze savings. Beginning in 1997,
routine costs would be paid at a facility specific prospective rate, subject to
regional limits. Ancillary costs would be
paid on the basis of reasonable costs
subject to limits. Eliminates exemptions
and exceptions to the cost limits,
beginning in 1997. Effective 1997,
establishes consolidated billing which
would require SNFs to bill Medicare for
almost all services its residents receive.
Effective January 1, 1996, establishes
salary guidelines for therapies (e.g.,
occupational therapy, speech therapy).
Beginning in 1999, establishes a full SNF
PPS with a 7 percent reduction in
payments.
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Extends OBRA93 SNF freeze for one year
and then captures the savings. Otherwise
similar to Republicans except: non-routine
limit would be a blended limit of facility
and national costs and would begin in
1997; does not reduce capital payments;
does not implement SNF PPS; contains a
savings sharing provision. Also requires
SNF billing and payment to be based on
site where service is furnished.
Extends OBRA93 SNF freeze savings.
Beginning in 1996, includes "routine
ancillaries" under cost limits. Beginning in
1996, non-routine services would be
reimbursed on a reasonable costs basis,
subject to a facility-specific per-stay limit.
Beginning in 1997, limits would be
updated by the SNF market-basket minus
2 percentage points. Capital payments
reduced by 10 percent for 1996-2002.
SNFs would be required to bill for all Part
B services that its Medicare patients
received, except for portable x-ray or
portable electrocardiogram services
treated as a physician service and
physician services that are not covered
routine/non-routine services. PPS would
be implemented beginning 1998 with a 10
percent reduction in payments. No
savings sharing provision.
139
�MEDICARE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
New long-term care hospitals subject to
prospective payment system.
December 27, 1995 (1:20pm)
Daschle
Coalition
New long-term care hospitals providing
sub-acute care get standard hospital PPS
with permanent regulations within 12
months.
140
Republicans
Long-term care hospital payments
rebased. LTCs inside other hospitals
included,
�MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Beginning October 1, 1996, reduces home
health care cost limits to 105 percent of
the median and establishes an interim
system of additional limits. Each home
health agency (HHA) would be subject to
a total dollar cap for each beneficiary peryear equal to the lower of total Medicare
allowable costs, the per-visit cost limits, or
an agency-specific per beneficiary annual
limit updated annually by the home health
market-basket. As of January 1, 1997, or
as soon as feasible, the per-beneficiary
limit would be a blend of the agencyspecific experience and the national or
regional experience. For 1996-1999,
certain HHAs that come in under the limit
would retain 50 percent of savings, though
not more than 5 percent of the aggregate
Medicare costs. Begin in 2000 to
implement an episodic PPS with a 15
percent reduction in payments and
eliminate periodic interim payments (PIP).
Beginning in 1997, base payments on the
location where the services are rendered,
not where service is billed. Extend
OBRA93 freeze from June 30 - Sept 30
December 27, 1995 (1:20pm)
Daschle
Coalition
Same as Administration except for the
following: does not reduce the current
cost limits; does not eliminate PIP; and
extends the OBRA93freezeby one year
and then maintains the savings.
Republicans
Establishes home health care prospective
per-visit payments with a per-episode cap,
subject to a dollar cap based on a 120-day
episode of care; no payment for care
between 120-165 days. Payments made
for services extending beyond 165 days
must be approved and certified as
medically necessary. These visits would
be paid on a per-visit basis, not subject to
any cap.
Beginning in 1998, rates would be
updated by the market-basket minus 2
percentage points. If total annual
payments are below the cap, the agency
would retain up to 50 percent of the
difference, though not more than 5 percent
of the total annual aggregate Medicare
payments. Maintains OBRA93 freeze
savings.
141
�DECISIONS
Issue: Provider Payment Reductions Part A
What is the proper level of Medicare expenditure reductions to assure beneficiary access to high quality of care and that providers are fairly compensated?
What is the proper mix of Medicare expenditure reductions across various provider groups (e.g., hospitals, physicians) and beneficiaries?
Should there be a graduate medical education trust fimd?
142
�MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
The first 100 home health care visits after
a hospital stay would be reimbursed under
Part A. All other visits, including those
not following hospitalization, would be
reimbursed under Part B. Moves $60.6
billion in home health outlays to Part B.
Designed to be budget neutral overall.
Has the effect of extending the Part A
trust fimd insolvency date.
December 27, 1995 (1:20pm)
Daschle
Coalition
Shifts visits to Part B after 150 days of
home health care.
Republicans
No provision for shiftingfinancingto Part
B.
DECISIONS
Issue: Should budget mechanisms be used to shore-up the solvency of the Part A Trust Fund?
Should home health benefits that exceed a threshold (e.g., 100 visits) be defined as non-acute care services and shifted from Part A to Part B (thereby having the effect of
lengthening the life of the Part A trust fimd)?
If this shift in home health benefits is undertaken, should these visits be subject to the Part B premium, copayments or deductibles?
Should selected Part B savings (e.g., premiums savings) be explicitly directed (i.e., put in a "lock-box") to Part A to lengthen the life of the trust fund?
143
�December 27, 1995 (1:20pm)
MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
No provision.
Daschle
Republicans
Coalition
Extends Hospital Insurance tax to state
and local government employees not
otherwise covered under current law,
effective January 1, 1997.
No provision.
DECISIONS
Issue: Hospital Insurance (Part A) Tax
Should state and local government retirees who qualify for Medicare (i.e., primarily as a result of being married to a beneficiary) without having paid into the Part A trust fund be
required to pay their share of Medicare payroll taxes?
144
�MEDICARE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Savings - Part B (Physician Payments,
Premiums, Hospital Outpatient,
Other Providers)
Savings - Part B (Physician Payments,
Premiums, Hospital Outpatient,
Other Providers)
Physician Payment
Physician Payment
Republicans
Savings - Part B (Physician Payments,
Premiums, Hospital Outpatient,
Other Providers)
Physician Payment
Same as Republicans, except that
"sustainable growth rate" based on real
GDP per-capita plus one percentage point.
Single fee for surgery regardless of
whether an assistant was used. Limits on
physician groups with excessive volume
per inpatient admission. Extends
OBRA93 reduction in overhead payments
for one year.
Same as Republicans except conversion
factor set at $36.40 in 1996 and
"sustainable growth rate" based on real
GDP per capita with no add-on. Limits
performance awards to 3 percent above
MEI and penalties to 8.25 percent below
MEI.
Replaces three conversion factors with
one, set at $35.42, effective January 1,
1996. Replaces Medicare Volume
Performance Standards with a "sustainable
growth rate" based on real GDP percapita, plus 2 percentage points, instead of
average historical growth in volume and
intensity of services, starting 1996. Limits
performance awards to 3 percent above
inflation index (MEI) and penalties to 7
percent below MEI
No provision.
Increases from 10 percent to 20 percent
bonus payment for primary care services
in Health Professional Shortage Areas.
Nurse practitioners and physician's
assistants payable directly for outpatient
services at 85 percent of physician fee.
145
�DECISIONS
Issue: Provider Payment Reductions Part B
What is the proper level of Medicare expenditure reductions to assure beneficiary access to high quality of care arid that providers are fairly compensated?
What is the proper mix of Medicare expenditure reductions across various provider groups (e.g., hospitals, physicians) and beneficiaries?
146
�MEDICARE - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Part B Premiums
Part B Premiums
Part B premiums permanently set at 25
percent of program costs (extends current
law provision that would otherwise expire
after 1998).
Republicans
Part B Premiums
Sets Part B premiums at $46.10 in 1996
(same as 1995), then at 25 percent of
program costs with phase-out of subsidy
for singles with incomes above $50,000
and couples with incomes above $75,000.
Sets Part B premiums from January 1,
1996 and after at 31.5 percent of costs,
with phase-out of subsidies (i.e. increased
premiums) for singles with incomes above
$60,000 and couples with incomes above
$90,000.
GOP December 15 offer would set
premiums at 25 percent in 1996 (same as
current law), raise to 29.5 percent in 1997,
then phase up to 31.5 percent in 2001.
No change in income-related provision.
DECISIONS
Issue: What level of Part B premiums is fair to beneficiaries?
What level should the Part B premium be set at, 25%, 31.5%?
If a level greater than 25% is set, should there be a phase-in?
Should there be an income-related premium?
147
�MEDICARE- DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Hospital Outpatient Departments
Hospital Outpatient Departments
No provision.
Republicans
Hospital Outpatient Departments
Eliminates formula-driven overpayment
Eliminates formula-driven overpayment to
to OPDs. Prospective payment system for OPDs, effective 1996. Extends current
outpatient services.
cut of 10 percent of OPD's capital
payments, 1999-2002. Extends current
cut of 5.8 percent for hospital OPD
services paid on a reasonable cost basis,
effective 1999-2002.
148
�December 27, 1995 (1:20pm)
MEDICARE- DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Other Providers
Other Providers
Establishes competitive bidding and
assures at least 15 percent savings on
clinical lab services and selected durable
medical equipment. Oxygen
\
reimbursement gradually reduced by 30
percent.
Republicans
Other Providers
Clinical lab services and durable medical
equipment get no update through 2002.
Oxygen reimbursement reduced 10
percent.
Clinical lab services get no update through
2002 and cap reduced to 65 percent of
national median. Durable medical
equipment inflation factors reduced or
eliminated through 2002. Oxygen
reimbursement gradually reduced by 30
percent.
GOP December 15 offer appears to
change some or all of the 7-year update
freezes. Specific proposals are not
identified.
149
�December 27, 1995 (1:20pm)
MEDICARE - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Coalition
Republicans
Fraud and Abuse Prevention
Fraud and Abuse Prevention
Fraud and Abuse Prevention
Authorizes $3 .7 billion in mandatory
spending over five years for HCFA and
the HHS IG. Applies Medicare anti-kickback penalties to all private health plans.
Reforms Medicare's contracting authority.
$2.4 billion in savings.
Permanently authorizes mandatory
spending, totaling $5.5 billion over seven
years, for HCFA, and the HHS IG.
Authorizes three 18-month demonstration
projects to reducefraudin Medicare. $2.4
billion in savings.
Permanently authorizes mandatory
spending, totaling $5.9 billion over seven
years for HCFA, FBI/and the HHS IG.
Extends Medicarefraudpenalties to all
federal health care plans, but makes it
more difficult to apply penalties by making
the standard of proof higher. $3.5 billion
in savings.
No provision.
Anti-trust relief to hospitals in towns of
Anti-trust provisions similar to House, but
less than 100,000 people that are
dropped due to Byrd rule.
attempting to merge, consolidate, or share
services. Exempts Medicare Choice PSOs
from "per se" antitrust violations.
Authorizes other antitrust protections for
"collaborative health care activities."
No provision.
Repeals physician self-referral prohibitions Repeals physician self-referral prohibitions
based on compensation arrangements.
based on compensation arrangements,
reduces ownership referral prohibitions,
adds new exceptions.
No provision.
Malpractice reforms, including $500,000
cap on non-economic damages.
Daschle
150
No provision. Dropped due to Byrd rule.
�DECISIONS
Issue: What is the proper level and funding mechanism for Medicare fraud prevention?
Should discretionary funding currently devoted to Medicare fraud control be redefined as mandatory spending to assure a stable source of funding, and to score mandatory savings
under new CBO scoring rules? Should the level of funding be increased over time? Should these changes be made permanently, or should they be made temporarily until their
impacts are fiilly documented and understood?
Should current law prohibitions on physician referrals to facilities (e.g., labs) in which they either have afinancialinterest in, orfromwhich they otherwise benefit due to
compensation arrangements, be repealed?
Should the Administration support malpractice reforms that preempt state medical liability law?
151
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (.1:20pm)
Daschle
Coalition
Republicans
Overview
Overview
Limits federal Medicaid growth by $46
billion over seven years through a
combination of a per-capita cap,
disproportionate share hospital payment
reductions, and stateflexibilityproposals.
The Coalition plan, scored off of the CBO
baseline, has a tighter per-capita cap than
the Administration's plan, and different
approaches to reducing disproportionate
share hospital payments, and increasing
state flexibility.
Limits federal Medicaid growth by $133
billion over seven years. Funding growth
rate declines to the lower of GDP or 4 .2
percent by 2000. Replaces the Medicaid
program with a block grant
("Medigrant"), eliminating the individual
entitlement to health care coverage.
States must set aside a percentage of state
expenditures for certain categories of
expenditures, i.e., beneficiary groups,
Medicare premiums, and FQHCs. States
determine eligibility, benefits, and payment
rates with very minimal federal oversight.
Overview
Limits federal Medicaid growth by $38
billion over seven years through a
combination of a per-capita cap,
disproportionate share hospital (DSH)
payment reductions, and state flexibility
proposals, i.e., repeal of the Boren
Amendment. The per-capita cap limits
federal matching payments per Medicaid
beneficiary.
CBO did not give the Administration
credit for per-capita cap scoring. We
expect CBO to score the Administration's
Medicaid proposal at $54 billion with
changes to thte per-capita cap legislative
language.
CBO did not give the Coalition credit for
per capita cap scoring. We expect CBO
to score the Coalition's Medicaid proposal
at approximately $85 billion with changes
to the per capita cap legislative language.
152
The latest Republican offer (December 15)
was $ 119 billion in savings over seven
years.
�DECISIONS
Total Medicaid Cuts
What is the appropriate level of total Medicaid cuts? What rate of growth is adequate to provide protections for states for growth in beneficiaries, inflation, and economic
downturns?
Should these savings be achieved by converting the Medicaid program into a block grant - limiting aggregate federal funds « or by a combination of reductions in DSH spending
and a per capita cap — limiting federal funds per beneficiary?
Under a per capita cap, how should these cuts be distributed between reductions in spending per beneficiary and,cuts in disproportionate share hospital payments?
Entitlement
Should the individual entitlement to a minimum package of Medicaid benefits be maintained?
153
�MEDICAID - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
General Spending Limits
General Spending Limits
General Spending Limits
Limits federal spending by setting for each
state a federal spending "cap" per
beneficiary. The cap would be the
estimate of what the spending for a group
of beneficiaries would have been had
spending growth per beneficiary been
limited to a specified index. The cap
would be enforced at the aggregate state
level.
Similar to the Administration plan. Limits
federal spending by setting state-specific
overall caps comprised of per-capita and
growth limits for four eligibility groups.
The cap would be enforced at the
aggregate state level.
Limits aggregate federal spending by
converting Medicaid into a block grant.
Maintains federal/state matching
requirements, but allows states to choose
the most beneficial matching percentage
and raises the matching percentage floor,
effectively decreasing the contribution
necessary for states to draw maximum
federal funds.
DECISIONS
Formula and Funding Issues
Should federal Medicaid funds be allocated among states based on the current distribution, or should the distribution be modified?
At what rate should federal Medicaid payments to states be allowed to increase over time?
Should all states receive the same growth rates or should certain states receive differential growth rates to minimize differences in Medicaid spending among states over time?
154
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
General Spending Limits
General Spending Limits
The index would be based on the growth
of nominal GDP per capita, adjusted so
that the total savings from the cap and
DSH payments would equal $54 billion
over the seven-year period.
Republicans
General Spending Limits
The cap would increase by an index tied to A state's growth amount is determined by
the growth in the CPI-U.
formula, with floors and ceilings imposed
to meet the savings targets.
DECISIONS
155
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
The cap would be coupled with enhanced
state flexibility so that states can be
creative in strategies to control Medicaid
costs.
December 27, 1995 (1:20pm)
Daschle
Coalition
The cap is also coupled with enhanced
state flexibility.
Republicans
There are special exceptions in the
formula for many states, including: Fixed
outlay allotments for NH ($369 million)
and LA ($2.6 billion) through 2000. Predetermined allotment increases for LA
($37 million) and NE ($90 million) for
1997. NV's allotment would increase by
$90 million through 1998.
DECISIONS
Should states that have received §1115 demonstration waivers be granted special treatment under either a block grant or a per capita cap?
156
�December 27, 1995 (1:20pm)
MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Most state administrative costs, except
survey and certification andfraudcontrol,
are included in the per-capita cap.
(Spending for QMBs, IHS, and VFC
programs are not included in the cap.)
Daschle
Coalition
A separate cap for administrative costs is
included in the overall state caps.
Republicans
Limits states' administrative costs.
DECISIONS
Treatment of Special Populations
Should federal Medicaid payments for services to other special populations (i.e, Indian Health Service, Vaccines for Children, undocumented aliens) be capped under either a block
grant or a per capita cap, or should these payments be treated separately?
157
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Reforming Disproportionate Share
Hospital (DSH) Payments
Reforming Disproportionate Share
Hospital (DSH) Payments
Gradually reduces the amount of federal
Medicaid DSH payments by 35 percent
and gives states greater flexibility to
determine which providers are eligible for
these payments, including FQHCs and
rural health clinics.
Reduces the amount of federal Medicaid
DSH spending is included in the states'
DSH payments by narrowing the definition 1996 base amounts, which are based
of DSH to apply to those hospitals with a
loosely on historical expenditures.
low-income utilization rate of 25 percent
Or greater (20 percent of Medicaid
utilization for children's hospitals). DSH
cap to each state would be reduced
commensurate with the narrower
definition.
In addition, the ten states that serve the
highest numbers of uncompensated care
patients and the fifteen states with the
highest proportion of undocumented aliens
will receive additional federal funds.
No supplemental funding pools other than
DSH.
158
Reforming Disproportionate Share
Hospital (DSH) Payments
The DSH program does not continue, but
states can make supplemental payments to
hospitals within their block grant
allotments. Provides additional federal
funds to the 15 states with the highest
proportion of undocumented aliens.
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
State Flexibility and Other Changes
State Flexibility and Other Changes
Retains the individual entitlement and
preserves coverage for all current
mandatory and optional eligibility groups.
Allows states to expand or simplify
eligibility by making modest eligibility
changes within certain parameters under a
simplified and expedited procedure with
limited federal involvement.
Republicans
State Flexibility and Other Changes
Like the Administration plan, retains the
individual entitlement and preserves
coverage for all current mandatory and
optional eligibility categories and benefits.
1902(r)(2) eligibility expansions not
allowed after Oct 15, 1995.
DECISIONS
Eligibility
Should current federal eligibility requirements be maintained?
Should federal eligibility requirements be repealed to allow states to determine who is eligible for Medicaid benefits?
To what extent should the federal government prescribe eligibility rules?
159
Although states are required to cover
pregnant women, children younger than
13, and the disabled (as defined by the
state), the individual entitlement to health
care coverage is eliminated. States may
cover people whose incomes are below
the ceiling of 275 percent of poverty.
�MEDICAID - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Retains the requirement that states offer
all mandatory Medicaid services.
Republicans
States must provide only immunization for
children and "pre-pregnancy planning"
serviees and supplies. Otherwise, states
set benefit package.
DECISIONS
Benefits
Should the current federal mandatory and optional benefit package be maintained?
Should federal requirements be repealed to allow states to determine the minimum benefit package they will cover for Medicaid beneficiaries?
To what extent should the federal government prescribe the benefit package?
Should the current requirement that states cover all medically-necessary treatment for conditions uncovered in an EPSDT screen be retained?
160
�December 27, 1995 (1:20pm)
MEDICAID - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Home and community-based services may
be offered without a waiver. Permits
states to mandate enrollment in some
types of managed care delivery systems
without a waiver. Repeals federal
managed care requirements, including the
upper payment limit, the 75/25 enrollment
rule, and replaces them with a more
outcome-oriented quality assurance
system.
Daschle
Coalition
States may require beneficiaries to enroll
in managed care or primary care case
management plans, as jong as more than
one choice is available.
Waiver requests not disapproved after 90
days deemed approved.
Establishes minimum payment
requirements to hospitals participating in
managed care contracts.
Republicans
States would no longer have to apply for
waivers to mandate enrollment in managed
care.
Requires states to spend 85 percent of the
average percentage of expenditures during
1992-94 on mandatory services to
mandatory eligibles among low-income
families, the elderly, and the disabled.
Requires states to spend 85 percent of the
average percentage of state expenditures
during 1992-94 on services in RHCs and
FQHCs.
DECISIONS
State Flexibility
To what extent can current federal standards for provider payment, service delivery, and beneficiary cost sharing be relaxed while continuing to assure beneficiary access to quality
health care?
Should federal provider payment standards be maintained, repealed, or modified? (i.e., the Boren Amendment, payment requirements for FQHCs and RHCs, obstetric and pediatric
payment reporting requirements)
To what extent should states be allowed to establish managed care for Medicaid beneficiaries without a federal waiver? What federal standards for managed care should be retained
or modified to assure beneficiary access to quality health care services?
Should states be allowed to impose premiums or cost sharing amounts that are more than nominal on any Medicaid recipient, or should current federal protections be maintained?
161
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Retains current limits on premiums and
cost sharing.
Additional flexibility for states to impose
copayments, coinsurance, and deductibles,
pursuant to a public schedule.
Premiums and cost-sharing by recipients
permitted except for pregnant women and
families with children below poverty.
Uncapped federal spending for Medicare
premiums and cost-sharing would
continue.
Similar to the Administration's plan. Most
federal spending for Medicare premiums
and cost-sharing would continue
uncapped.
Requires states to spend a minimum
percentage for QMB Medicare premiums which is 90 percent of the proportion of
state spending on mandatory eligibles
during 1993-95.
DECISIONS
Qualified Medicare Beneficiaries
Should federal payments for Medicare premiums and cost-sharing for low-income Medicare beneficiaries be capped under either a block grant or a per capita cap, or should these
payments be treated separately?
162
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
The Vaccines for Children program is
retained.
December 27, 1995 (1:20pm)
Daschle
Coalition
Retains the Vaccines for Children
program.
163
Republicans
Repeals the Vaccines for Children
program.
�MEDICAID - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Preserves current spousal impoverishment
policies.
Coalition
Republicans
Preserves current spousal impoverishment Weakens spousal impoverishment policies.
policies.
Prohibition against counting applicant's
home toward asset limit repealed.
Protection of spousal income and assets
retained. Adult children with income
above state median could be required to
contribute to parent's nursing home cost
DECISIONS
Spousal Impoverishment
Should all current protections against spousal impoverishment be maintained?
164
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Eliminates certain provider standards and
payment requirements, including: the
Boren amendment; requirements related to
obstetrical and pediatric service payments;
cost-based reimbursements for most
FQHCs and RHCs (from 1999); physician
qualification requirements; federally
mandated administrative requirements;
duplicative annual resident review
requirements in nursing homes; personnelrelated requirements; re-engineers MMIS
requirements.
Preserves most current provider standards Repeals federal provider standards and
and payment requirements.
payment requirements. States establish
provider payment rates and reimbursement
requirements.
Preserves all current federal nursing home
standards and enforcement.
Preserves federal nursing home standards
and enforcement.
DECISIONS
Nursing Home Standards
Should all current federal nursing home standards and enforcement responsibilities be maintained?
165
Basic federal nursing home standards
retained, but states responsible for
enforcement with little federal oversight.
�MEDICAID - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Abortion
No provision
No provision on abortion.
DECISIONS
Should restrictions on Medicaid payment for abortions be included as permanent law?
166
The Conference Report would make Hyde
restrictions (no funding for abortions
except if the life of the mother is
threatened, or if pregnancy is a result of
rape, incest) permanent law. Current law
has no such restriction.
�HEALTH INSURANCE REFORMS DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Insurance Market Reforms
Insurance Market Reforms
Establishes a number of reforms in the
group and individual health insurance
markets. Also includes comparable
reforms for self-insured health plans.
Specific provisions include: Limiting preexisting condition exclusions to 12
months; guaranteed availability and
renewability; and limiting premium
variations in the small group market.
Republicans
Insurance Market Reforms
No provision.
167
No provisions are included in the
Conference Agreement, but various bipartisan, insurance market reforms have
been introduced in both Houses.
�HEALTH INSURANCE REFORMS DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Purchasing Cooperatives
Authorizes a new grant program to
facilitate the development and creation of
health insurance purchasing cooperatives.
($.1 billion)
Purchasing Cooperatives
No provision.
Allows small businesses access to health
plans participating in the FEHBP.
168
Republicans .
Purchasing Cooperatives
No provision.
�HEALTH INSURANCE REFORMS DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Self-employed Tax Deduction
(also included in REVENUES section)
Self-employed Tax Deduction
(also included in REVENUES section)
Gradually increases the tax deduction for
self-employed individuals from 30 percent
to 50 percent by the year 2000.
(revenues -$2 billion)
Republicans
Self-employed Tax Deduction
(also included in REVENUES section)
No provision.
169
Gradually increases the tax deduction for
self-employed individuals from 30 percent
to 50 percent by the year 2002.
(revenues-$1 billion)
�HEALTH INSURANCE REFORMS DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Medical savings accounts
(also included in REVENUES section)
Medical savings accounts
(also included in REVENUES section)
No provision.
Republicans
Medical savings accounts
(also included in REVENUES section)
No provision.
170
Allows tax-favored medical savings
accounts for individuals under 65 years of
age. (revenues -$2 billion)
�HEALTH INSURANCE REFORMS DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Health Insurance for
Temporarily Unemployed
Health Insurance for
Temporarily Unemployed
Establishes a new capped entitlement to
the states to provide health insurance for
the temporarily unemployed. States
would be allowed tofinanceup to six
months of coverage for certain
unemployed workers and their families.
Coverage would be available for workers
who had employer-based coverage in their
prior job but do not have access at time of
unemployment, are now receiving
unemployment benefits, and have incomes
below 240 percent of the poverty.
($14 billion)
Republicans
Health Insurance for
Temporarily Unemployed
No provision.
171
No provision.
�HEALTH INSURANCE REFORMS DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Home and Community-based Services
Home and Community-based Services
Establishes a program of grants to states
to expand home & community-based care
for the disabled and elderly. Grants would
be used for expanding services; developing
and implementing new service delivery
approaches; and other purposes.
($12 billion)
Republicans
Home and Community-based Services
No provision.
172
No provision.
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Republicans
Child Tax Credit
Child Tax Credit
Proposals Primarily Affecting
Individuals
Child Tax Credit
$500 non-refundable credit ($300 in 19961998) for each child under 13, phased-out
for AGI over $60K. Indexed beginning
in 2000. (-$55.3 billion)
No provision.
173
$500 per child non-refundable credit for
each child under 18, phased-out for AGI
over $110K for joint/$75K for single.
Effective 10/1/95 with $125 partial-year
credit to be refunded in 1996.
(-$149.2 billion)
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Education and Training Deduction
Education and Training Deduction
Deduction of up to $10,000 ($5,000 in
1996-98) for education and training of
taxpayer, spouse or dependents. Phasedout for AGI over $ 100K joint/$70K
single. Phase-out range indexed beginning
in 2000. (-$39.1 billion)
Republicans
Education and Training Deduction
No provision.
174
Deduction of up to $2,500 for interest
paid on student loan to cover qualified
education expenses of taxpayer or spouse.
Phased-out for modified AGI over $65K
joint/$45K single. (-$2.3 billion)
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Expanded IRAs
Expanded IRAs
Increases AGI phase-out threshold to
$80Kjoint/$50 single. Penalty-free
withdrawals for education, first-homes,
long-term utiemployment, and
Catastrophic medical Subject to same
income phase-outs, establishes backloaded IRAs with tax-free withdrawals
after 5 years; penalty-free for education,
homes etc. immediately. Allows taxpayers
below income phase-outs to convert
existing IRAs into back-loaded IRAs
without penalty; income tax spread over 4
years for conversions in 1996. $2,000
contribution limit and income phase-outs
indexed beginning in 1997.
(-$11.0 billion)
Republicans
Expanded IRAs
No provision.
Increases AGI phase-out threshold $5,000
per year (to $100K joint/$85K single in
2007). Doubles the phase-out range for
joint returns by 2007 and indexes income
limits after 2007. Replaces current
nondeductible IRA with new back-loaded
IRA without income limits from which
contributions can be withdrawn tax-free if
individual has account for 5 years, but
only if amounts are withdrawn after age
59/2, death or disabihty, or for long-term
unemployment,first-timehome, higher
education, medical expense above 7.5
percent of AGI or retirement. Allows
taxpayers to convert existing IRAs into
back loaded IRAs, without penalty;
income tax spread over 4 years for
conversions before 1998. Contributions
up to $4,000 (indexed after 2007) can be
made for taxpayer and spouse (up to
$2,000 per individual) into either type of
IRA. (-$12.3 billion)
,
175
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Capital Gains
Capital Gains
No provision.
No provision.
176
Republicans
Capital Gains
For assets other than collectibles and small
business stock, exempts 50 percent of net
capital gain, but repeals 28 percent cap on
rate (top tax rate 19.8 percent). Two
dollars of capital losses required to offset
one dollar of ordinary income (up to
$3,000). Basis of certain assets acquired
after 2000 and held for 3 years indexed for
inflation. Retains maximum 14 percent
rate for small business stock held more
than 5 years. Alternative 28 percent rate
for corporations (21 percent for small
business stock). Loss from sale of
principal residence treated as deductible
capital loss Effective date 1/1/95.
(-$47.4 billion)
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Marriage Penalty
Marriage Penalty
No provision.
Republicans
Marriage Penalty
No provision.
177
Standard deduction for joint return
increased over 10 years to approximately
double standard deduction for single
filers at the end of that period.
(-$8.0 billion)
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Alternative Minimum Tax
Alternative Minimum Tax
No provision.
Republicans
Alternative Minimum Tax
No provision.
178
Repeals AMT depreciation adjustments
for property placed in service after 1995
for both individual and corporate AMT.
Allows corporations to offset portion of
AMT with AMT credits generated at least
seven years prior to current year.
(-$17.6 billion)
�December 27, 1995 (1:20pm)
REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Republicans
Health Care
Health Care
Health Care
Increases deduction for self-employed
health insurance expenses to 35 percent in
1996, 40 percent in 1998, 45 percent in
1999, and 50 percent in 2000 and later
years. (-$2.1 billion)
Extends Medicare Part A coverage to
state and local government employees not
already covered.
Treats long term health care as accident
and health insurance contract, with cap of
$175 per day on tax-exempt per diem
benefits (no cap on reimbursement
benefits). Increases deduction for selfemployed health insurance payments from
30 percent to 35 percent in 1998, to 40
percent in 2000, and to 50 percent in 2000
and later years. Provides up to $2,000
deduction ($4,000 for families) for
contributions to medical savings accounts
by individuals covered only under
catastrophic health plans. Income in MSA
accumulates tax-free. Distributions taxfree if used for medical expenses and
subject to tax, plus 10 percent penalty if
withdrawn before age 59/2, if used for
other purposes. Payments to terminally or
chronically ill insured (under life insurance
contract or received from viatical
settlement provider) excluded from
income. (-$5.4 billion)
,
179
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
EITC Compliance
EITC Compliance
Limits EITC to individuals authorized to
work in U.S. Allows IRS to use simpler
("math error") procedures if no valid
social security number. ($2 .9 billion)
Republicans
EITC Compliance
Same as Administration.
180
Same as Administration.
�December 27, 1995 (1:20pm)
REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Coalition
EITC Changes
Republicans
EITC Changes
Daschle
EITC Changes
Net capital gains are added to the
definition of "disqualified income.'
181
Repeals EITC for workers who do not
reside with children. Reduces credit rate
from 40 percent to 36 percent for
married couples with 2 or more
qualifying children if their income
exceeds $2IK (creditratevaries between
40 percent and 36 percent if income
between $17K and $2IK). Reduces credit
rate from 40 percent to 36 percent for
unmarried couples with 2 or more
qualifying children if their income
exceeds $18K (credit rate varies between
40 percent and 36 percent if income
between $14K and $18K) . For
individuals with 1 qualifying child,
phase-out rate increases from 15.98
percent to 20 percent on income in
excess of $14,850, and from 21.06
percent to 25 percent on incomes in
excess of $17,750 for individuals with 2
or more children. For purposes of
applying the phase-out rules, tax-exempt
interest, child-support payments in
excess of $6K, non-taxable distributions
from pensions, annuities, and IRAs and
untaxed Social Security benefits are
included in AGI, and certain losses are
excluded. Positive net passive income
added to definition of "disqualified
income". Preparers subject to penalties
for certain actions. ($27.9 billion)
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Dependent Care Tax Credit
Dependent Care Tax Credit
No provision.
Republicans
Dependent Care Tax Credit
The dependent tax credit would be made No provision.
refundable and phased-out for couples
with AGI between $70K-$90K.
182
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Coalition
Taxation of Benefits
No provision.
Republicans
Taxation of Benefits
Daschle
Taxation of Benefits
Benefits from Supplementary Security
Income, Temporary Employment
Assistance (which replaces AFDC), and
Food Stamps would be taxable.
183
No provision.
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Empowerment Zones
Empowerment Zones
Designates two new zones. (-$1.0 billion)
Republicans
Empowerment Zones
No provision.
184
No provision.
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Estate and Gift Tax
Estate and Gift Tax
No provision.
Republicans
Estate and Gift Tax
No provision.
185
Estate tax exclusion increased to $750,000
over 6 years, then indexed. First $1
million and 50 percent of next $1.5 million
in value of "qualified family owned
business interests" exemptfromtax.
Allows exclusion of 40 percent of value of
certain land subject to conservation
easement. (-$12.7 billion)
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Coalition
Republicans
Deterring Expatriation Tax Avoidance
Deterring Expatriation Tax Avoidance
Deterring Expatriation Tax Avoidance
Imposes tax on accrued gains of
Americans who renounce citizenship.
($2.8 billion)
Imposes tax on accrued gains of
Americans who renounce citizenship.
Americans who renounce citizenship or
residence status taxed for 10 years without
regard to tax motivation. ($0.7 billion)
Daschle
186
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Revised Taxation of Foreign Trust
Revised Taxation of Foreign Trust
Tighten rules to prevent tax avoidance.
($2.4 billion)
Republicans
Revised Taxation of Foreign Trust
Tighten rules to prevent tax avoidance.
187
Tighten rules to prevent tax avoidance.
($2.1 billion)
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (1:20pm)
Daschle
Coalition
Adjust Indexation
Adjust Indexation
No provision.
Republicans
Adjust Indexation
Lowers the inflation adjustment used to
index the tax system (and calculation of
entitlements) to CPI-0.5 through 1998,
and CPI-0.3from1999 through 2002.
188
No provision.
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:49pm)
Daschle
Coalition
Republicans
Work Opportunity Tax Credit
Work Opportunity Tax Credit
Work Opportunity Tax Credit
Work Opportunity Tax Credit
No provision.
Reported to be included. Language not
available. (CBO estimate not available.)
No provision.
Contained in vetoed reconciliation bill.
(-$0.3 billion)
Tentative description:
Provides 35% credit on first $6,000 of
wages for new hires from 6 target groups.
Target groups:
(1) AFDC recipients for 9-month
period ending during the 9-month period
ending on the hiring date;
(2) Qualified ex-felons;
(3) High-risk youth ages 18-24 in
families receiving Food Stamps for 6month period ending during the 6-month
period ending on the hiring date;
(4) Vocational rehabilitation referrals;
(5) Qualified summer youth employees
(credit on first $3,000 of wages);
(6) Veterans discharged for serviceconnected disability and receiving AFDC
for 9-month period ending during the 12month period ending on hiring date, or
Food Stamp recipient for 3-month period,
ending during the 12-month period ending
on hiring date.
Retention period: 500 hours or 180 days
(120 hours or 20 days for summer youth).
Effective date: 90 days after enactment; to
be in effect for 1 year.
189
Provides 35% credit on first $6,000 of
wages for new hires from 6 target groups.
Target groups:
(1) AFDC recipients for 9-month
period ending during the 9-month period
ending on the hiring date;
(2) Qualified ex-felons;
(3) High-risk youth ages 18-24 living
within an empowerment zone or enterprise
community;
(4) Vocational rehabilitation referrals;
(5) Qualified summer youth employees
(credit on first $3,000 of wages);
(6) Veterans discharged for serviceconnected disability and receiving AFDC
for 9-month period ending during the 12month period ending on hiring date, or
Food Stamp recipient for 3-month period,
ending during the 12-month period ending
on hiring date.
Retention period: 500 hours or 180 days
(120 hours or 20 days for summer youth).
Effective date. January 1, 1996, through
December 31, 1996.
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:49pm)
Daschle
Coalition
Republicans
Superfund Tax
Superfund Tax
Superfund Tax
Extends environmental tax on corporate
taxable income through December 31,
1997, and extends the excise taxes on
petroleum chemicals and imported
substances through September 30, 2002.
($1.1 billion, OMB scoring against OMB
baseline. $6.1 billion, CBO scoring against
CBO December baseline)
Extends the excise taxes on petroleum,
chemicals and certain imported substances
through September 30, 2002. ($0, OMB
scoring against OMB baseline. $4.9
billion, CBO scoring against CBO
December baseline)
Extends environmental tax on corporate
taxable income through December 31,
1996, and extends the excise taxes on
petroleum, chemicals and imported
substances through September 30, 1996.
($.5 billion, OMB scoring against OMB
baseline. $1.1 billion, CBO scoring against
CBO December baseline)
DECISIONS
Programmatic:
Length of Extensions:
- Excise taxes: Administration and Coalition: 7 year; Republicans: 9-month.
- Corporate environmental income tax: Administration. 2-year; Coalition: No extension; Republicans: 1 year.
Republican plan to re-direct excise tax revenue collected after July 31st to General Fund rather than Superfund trust fund.
190
�Budgetary Consequences:
•
Length of Extension
(CBO Scoring: Net Revenue in Millions of Dollars)
1226
Excise Taxes:
Admin, and Coalition
Republicans 1/
m i
1228
1222
2QQ0
2QQ1 2002
508
509
695
26
707
721
736
752
612
224
252
Corporate Environmental Income Tax:
Administration
352
Republicans
337
1/
742
CBO would continue to score the excise taxes as dedicated to the Superfund trust fimd and, consequently, these taxes would be assumed to be extended in the next budget
baseline.
191
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Republicans
Corporate Subsidies, Loophole Closers,
and Other Measures
No provision.
Minimum Tax. Imposes 5 percent
minimum tax on net business receipts
(gross receipts less value of exports less
expenses for U.S.-produced components
and U.S.-performed services, and local
taxes) of any corporation that imports
more than $10 M in components or
productsfromaffiliated entity.
192
No provision.
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Reform Depreciation Under Income
Forecast Method. The "income forecast"
method of depreciating the cost of motion
picture films, video tapes, sound
recordings, and other similar property
would be modified to more clearly reflect
income. ($0.3 billion)
December 27, 1995 (2:52pm)
Daschle
Coalition
No provision.
193
Republicans
Same as Administration.
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Phase-Out Preferential Tax Deferral for
Certain Large Farm Corporations
Required to Use Accrual Accounting.
Certain closely held farming corporations
that were allowed to defer taxation on
income on changing from cash-method to
accrual accounting would be required to
recognize such income over a 20-year
period. Corporations required to make
this change in the future will recognize the
income over a 10-year period.
($0.4 billion)
December 27, 1995 (2:52pm)
Daschle
Coalition
No provision.
194
Republicans
Same as Administration.
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Disallow Interest Deduction for
Corporate-Owned Life Insurance
Policy Loans. Phases out deductions for
interest attributable to the purchase of socalled corporate-owned life insurance
(COLI). ($5.2 billion)
December 27, 1995 (2:52pm)
Daschle
Coalition
No provision.
195
Republicans
Disallow Interest Deduction for
Corporate-Owned Life Insurance
Policy Loans. Same as Administration
proposal, except for slower phase-out,
grand fathering of pre-1986 policies, and
exemption for 10 key persons. ($4.7
billion)
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Require Gain Recognition for Certain
Extraordinary Dividends. Corporate
shareholders would be required to
recognize gain with respect to certain
redemptions that would otherwise be
treated as a dividend, or if the basis of
stock with respect to which any
extraordinary dividend is received is
reduced below zero. ($0.1 billion)
December 27, 1995 (2:52pm)
Daschle
Coalition
Same as Administration.
196
Republicans
Same as Administration.
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Coalition
Daschle
Modify Basis of Certain Corporate
Assets. Where a taxpayer acquires stock
in a corporation in order to replace
property that has been involuntary
converted, the corporation would be
required to adjust the basis in its assets to
reflect the taxpayer's basis reduction for
the acquired stock. ($0.1 billion)
Republicans
Same as Administration.
197
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Require registration of Certain
Confidential Corporate Tax Shelters.
Certain confidential transactions with a
significant purpose of tax avoidance or
evasion offered to corporate participants
would have to be registered with the IRS,
but the registration materials would be
treated as protected taxpayer information.
December 27, 1995 (2.52pm)
Daschle
Coalition
No provision.
(*)
198
Republicans
Same as Administration.
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Require Thrifts to Account for Bad
Debts As banks. Thrift institutions
would be required to account for bad
debts in the same manner as banks. (1.6)
December 27, 1995 (2.52pm)
Daschle
Coalition
No provision.
Republicans
Same as Administration.
r
199
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Extend Oil Spill Liability Trust Fund
Excise Tax. The Oil Spill Liability Trust
Fund excise tax of 5 cents per barrel
would be reinstated for the period from
January 1, 1996 through September 30,
2002. ($0.6 billion)
No provision.
200
Republicans
Same as Administration.
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Repeal Percentage Depletion for NonFuel Minerals Mined on Federal Lands.
Percentage depletion would not be
allowed for non-fuel minerals mined on
Federal lands where the mining rights
were originally acquired through
procedures of the 1872 mining laws.
($0.6 billion)
'
201
Republicans
�REVENUES-DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Deny Interest Deduction on Certain
Debt Instruments. No deduction would
be allowed for interest for any debt
instrument that has a maximum term of
more than 40 years; or that is payable in
stock; or has a maximum term of more
than 20 years and is not reflected as
indebtedness on the balance sheet of the
issuer. ($1.8 billion)
Republicans
~
202
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Defer Original Issue Discount
Deduction on Convertible Debt. The
deduction for original issue discount on
convertible debt would be deferred until
payment. ($0.4 billion)
203
Republicans
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (2.52pm)
Daschle
Coalition
Limit Dividends-Received Deduction
a.
Reduce Dividends-Received
Deduction to 50 Percent. The
corporate deduction for dividends
received where the taxpayer owns less
than 20 percent of the stock of the
payor would be reduced from 70
percent to 50 percent. ($2.8 billion)
b.
Modify Holding Period for
Dividends-Received Deduction. No
dividends-received deduction would
be allowed unless a taxpayer's holding
period requirement is satisfied with
respect to each dividend. ($0.2
billion)
204
Republicans
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Treat Certain Preferred Stock as
"Boot". Receipt of preferred stock
generally would trigger recognition of gain
in otherwise tax-free reorganizations if the
stock is subject to certain put, call, or
redemption features, or the dividend rate
on the stock varies with interest rates,
commodity prices, or other similar indices.
($0.9 billion)
205
Republicans
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Extend Pro Rata Disallowance of TaxExempt Interest Expense to All
Corporations. Corporations investing in
tax-exempt investments would be
disallowed deductions for a portion of
their interest expense equal to the portion
of their total assets that is comprised of
tax-exempt investments. ($0.5 billion)
206
Republicans
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Repeal Section 1374 for Large
Corporations. A regular corporation
with a value of more than $5 million that
converts to an S corporation would be
required to recognize the built-in gain in
its assets at the time of conversion. ($0.3
billion)
207
Republicans
�December 27, 1995 (2:52pm)
REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Inventory reforms
a. Repeal Lower of Cost or Market
Inventory Accounting Method.
The lower of cost or market ("LCM")
method of valuing inventories would
no longer be permitted for taxpayers
with gross receipts of more than $5
million, nor would write-downs for
goods that are unsalable at normal
prices or unusable in the normal way
because of damage, imperfection,
shop wear, changes of style, odd or
broken lots, or other similar causes.
($1.2 billion)
b. Repeal Components of Cost
Inventory Accounting Method.
The "components of cost method" of
dollar-value LIFO would not be
permitted. ($1.2 billion)
208
Republicans
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Require Reporting of Payments to
Corporations Rendering Services to
Federal Agencies. Federal executive
agencies would be required to report
payments of $600 or more to corporations
for services rendered. ($0.4 billion)
Republicans
-
209
�REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Increase Penalties for Failure to File
Correct Information Returns. Persons
who fail to file information returns, or
whofileerroneous returns, would be
subject to penalties up to the greater of
$50 per return or 5 percent of the total
amount required to be reported, unless at
least 97 percent of the amount was
reported. ($0.2 billion)
210
Republicans
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Restrict Like-Kind Exchanges
Involving Personal Property. U.S. and
foreign personal property could no longer
be exchanged tax-free. ($0.1 billion)
21
Republicans
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Modify Loss Carry-Back and CarryForward Rules The period for which
corporations can "carry back" net
operating losses to offset earlier taxable
income would be reduced from three years
to one year, and the period for which net
operating losses can be "carried forward"
to offset taxable incomefromlater years
would be extended from 15 years to 20
years. ($4.7 billion)
Republicans
-
212
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Impose Excise taxes on Kerosene as
Diesel Fuel. Kerosene that does not
qualify as aviation fuel would be subject to
the diesel fuel excise tax when it is
removedfroma registered terminal, unless
it is indelibly dyed and destined for a
nontaxable use. In addition, a new refund
procedure would be established under
which registered ultimate vendors would
be eligible for refunds of tax paid on clear
kerosene sofd for use in space heaters.
($0.3 billion)
'
213
Republicans
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
December 27, 1995 (2:52pm)
Daschle
Coalition
Expand Subpart F Provisions
Regarding Income from Notional
Principal Contracts and Stock Lending
Transactions. The net income from
equity swaps and certain notional principal
contracts, as well as incomefromstocklending transactions, would be treated as
Subpart F income, with an "ordinarycourse-of-business" exception for regular
dealers in forwards, options, notional
principal contracts and similar financial
instruments. ($0.2 billion)
214
Republicans
�December 27, 1995 (2:52pm)
REVENUES - DRAFT
Administration Offer of 12/15/95
(7-Year Plan)
Daschle
Coalition
Captive "Insurance" Arrangements.
An "insurance" arrangement between a
captive insurer and any other person
generally would be respected as a valid
insurance arrangement only if less than 50
percent of the captive's net written
premiums are attributable to the insurance
or reinsurance of risks of related persons.
Amounts paid to captives that do not
satisfy the 50-percent threshold by
unrelated persons for the insurance or
reinsurance of risks would also be treated
as valid insurance premiums. ($0.1 billion)
Republicans
Captive "Insurance" Arrangements.
Applies unrelated business income tax
(UBIT) on a look-through basis to certain
subpart F insurance income of a domestic
tax-exempt organization earned through a
foreign captive insurance subsidiary. ($0)
215
�REVENUES - DRAFT
Administration OfTer of 12/15/95
(7-Year Plan)
Modify Possessions Tax Credit (Section
936). The profits-based active-business
portion of the credit would be phased-out
over five years, but excess amounts of
economic-activity limitations would be
allowed to be carried forward for up to
five years. The economic-activity portion
will be retained, along with the passive
income portion of the credit for taxes
otherwise payable on qualified possession
source investment income. ($4.0 billion)
December 27, 1995 (2:52pm)
Daschle
Coalition
Republicans
Modify Possessions Tax Credit (Section
936). The profits-based active-business
portion of the credit would be phased-out
by 1988, a 60 percent wage credit
substituted for the economic-activity
credit, and qualified possession source
investment income credits would be
reduced.
Modify Possessions Tax Credit (Section
936). The credit is repealed, but existing
active-business benefits "grand fathered"
for 10 years: 6 years for economic-activity
credit, then 4 years of additional limitation
based on base-period activity; 2 years for
profits-based credit, then 8 years of
additional limitation based on base-period
activity. ($2.6 billion)
216
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
A name given to the resource
Michael Waldman
Description
An account of the resource
<p>Michael Waldman was Assistant to the President and Director of Speechwriting from 1995-1999. His responsibilities were writing and editing nearly 2,000 speeches, which included four State of the Union speeches and two Inaugural Addresses. From 1993 -1995 he served as Special Assistant to the President for Policy Coordination.</p>
<p>The collection generally consists of copies of speeches and speech drafts, talking points, memoranda, background material, correspondence, reports, handwritten notes, articles, clippings, and presidential schedules. A large volume of this collection was for the State of the Union speeches. Many of the speech drafts are heavily annotated with additions or deletions. There are a lot of articles and clippings in this collection.</p>
<p>Due to the size of this collection it has been divided into two segments. Use links below for access to the individual segments:<br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+1">Segment One</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+2">Segment Two</a></p>
Creator
An entity primarily responsible for making the resource
Michael Waldman
Office of Speechwriting
Date
A point or period of time associated with an event in the lifecycle of the resource
1993-1999
Identifier
An unambiguous reference to the resource within a given context
2006-0469-F
Extent
The size or duration of the resource.
Segment One contains 1071 folders in 72 boxes.
Segment Two contains 868 folders in 66 boxes.
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Format
The file format, physical medium, or dimensions of the resource
Adobe Acrobat Document
Text
A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.
Original Format
The type of object, such as painting, sculpture, paper, photo, and additional data
paper
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
A name given to the resource
MS - 1995 Budget: December 15, 1995 Offer
Creator
An entity primarily responsible for making the resource
Office of Speechwriting
Michael Waldman
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 28
<a href="http://clinton.presidentiallibraries.us/items/show/36404"> Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7763296">National Archives Catalog Description</a>
Identifier
An unambiguous reference to the resource within a given context
2006-0469-F Segment 2
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
White House Staff and Office Files
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Format
The file format, physical medium, or dimensions of the resource
Adobe Acrobat Document
Medium
The material or physical carrier of the resource.
Preservation-Reproduction-Reference
Date Created
Date of creation of the resource.
6/3/2015
Source
A related resource from which the described resource is derived
7763296
42-t-7763296-20060469F-Seg2-028-007-2015