OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 504
Date: 4/14/00

1. LAW NUMBER: P.L.106-181 (H.R. 1000)
2. BILL TITLE: Wendell H. Ford Aviation Investment and Reform Act
3. BILL PURPOSE: Authorizes budget resources for Federal Aviation Administration programs through FY2003 and makes other amendments to aviation law.
4. OMB ESTIMATE: P.L. 106-181 makes numerous changes to direct spending and receipts. These includes extension of the aviation insurance program, changes in potential compensation under the Death on the High Seas Act, restrictions on fees charged for certification services, and imposition of criminal penalties for violations of the Act. OMB estimates that none of these provisions will have a significant effect.

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Net costs.................	*	*	*	*	*	*

5. CBO ESTIMATE: In addition to the provisions scored by OMB, CBO scores a loss in revenue related to provisions that would authorize airports to charge higher passenger facility fees and expand a pilot program that provides for the use of federal airport improvement grants to facilitate tax-exempt financing of airport projects. CBO expects that these provisions will result in an increase in tax-exempt financing and a subsequent revenue loss.

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Net costs.................	0	2	5	7	9	11

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

CBO scores revenue losses related to potential increases in the use of tax-exempt financing by airports. OMB believes any such revenue loss is an indirect effect of the Act and not scoreable for pay-as-you-go purposes.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Outlay effect..............	2	4	2	1	1	1
Receipt effect............	*	*	*	*	*	*
Net costs....................	2	4	2	1	1	1