[Congressional Record Volume 145, Number 87 (Friday, June 18, 1999)]
[Senate]
[Pages S7260-S7262]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2000 AND 2001

  Mr. HELMS. Mr. President, I submit for the Record a Congressional 
Budget Office cost estimate for S. 886, the pending legislation. The 
estimate was not available at the time the committee report was filed.
  I ask unanimous consent that this CBO cost estimate be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


               congressional budget office cost estimate

     S. 886.--Foreign Relations Authorization Act, Fiscal Years 
         2000 and 2001--As reported by the Senate Committee on 
         Foreign Relations on April 27, 1999
       Summary: The bill would authorize appropriations for the 
     Department of State and related agencies for 2000 and 2001. 
     CBO estimates that appropriation of the authorized amounts 
     would result in additional discretionary spending of $13.6 
     billion over the 2000-2004 period. Because the legislation 
     would affect direct spending and revenues, pay-as-you-go 
     procedures would apply; the net impact would generally be 
     less than $500,000 a year.
       Section 4 of the Unfunded Mandates Reform Act (UMRA) 
     excludes from the application of that act any provisions that 
     are necessary for the national security or the ratification 
     or implementation of international treaty obligations. CBO 
     has determined that the provisions in title VI of S. 886 
     either fall within that exclusion or contain no 
     intergovernmental or private-sector mandates. All other 
     titles of the bill contain no private-sector or 
     intergovernmental mandates and would have no significant 
     effects on the budgets of state, local, or tribal 
     governments.
       Estimated Cost to the Federal Government: The estimated 
     budgetary impact of S. 886 is shown in the following table. 
     The costs of this legislation fall within budget functions 
     150 (international affairs) and 300 (natural resources and 
     environment).

----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars--
                                                                   ---------------------------------------------
                                                                     1999    2000    2001    2002    2003   2004
----------------------------------------------------------------------------------------------------------------
                 SPENDING SUBJECT TO APPROPRIATION
 
Spending Under Current Law \1\:
  Budget Authority \2\............................................   7,488       0       0       0      0      0
  Estimated Outlays...............................................   5,747   1,296   1,177     468    145     74
Proposed Changes:
    Administration of Foreign Affairs:
      Authorization Level.........................................       0   4,041   4,041     600    600    600
      Estimated Outlays...........................................       0   2,701   3,224     844    662    617
    International Organizations and Conferences:
      Authorization Level.........................................       0   1,506   1,155       0      0      0
      Estimated Outlays...........................................       0   1,230   1,052     375      2      0
    Refugee Assistance and Other Programs:
      Authorization Level.........................................       0     665     665       0      0      0
      Estimated Outlays...........................................       0     459     648     193      7      3
    International Broadcasting and Exchange:
      Authorization Level.........................................       0     723     723       0      0      0
  Estimated Outlays...............................................       0     512     680     197     39     12
    International Commissions:
      Authorization Level.........................................       0      50      50       0      0      0
      Estimated Outlays...........................................       0      39      46       9      5      2
        Subtotal of Proposed Changes:
          Authorization Level.....................................       0   6,986   6,635     600    600    600

[[Page S7261]]

 
          Estimated Outlays.......................................       0   4,941   5,650   1,618    715    634
Spending Under S. 886 \1\:
  Authorization Level \2\.........................................   7,488   6,986   6,635     600    600    600
  Estimated Outlays...............................................   5,747   6,237   6,827   2,086    860    708
 
                   DIRECT SPENDING AND REVENUES
 
Proposed Changes to Direct Spending:
  Estimated Budget Authority......................................       0   (\3\)   (\3\)   (\3\)  (\3\)  (\3\)
  Estimated Outlays...............................................       0   (\3\)   (\3\)   (\3\)  (\3\)  (\3\)
Proposed Changes to Revenues......................................       0   (\3\)   (\3\)   (\3\)  (\3\)  (\3\)
----------------------------------------------------------------------------------------------------------------
\1\ The program covered here include the conduct of foreign affairs, information and exchange activities, and
  arrears to the United Nations.
\2\ The 1999 level is the amount appropriated for that year.
\3\ Less than $500,000.

       Spending Subject to Appropriation. The bill specifies 
     authorizations of appropriations that total $15.4 billion 
     over the 2000-2004 period. In addition, it contains a number 
     of other provisions with potential budgetary impacts. CBO 
     estimates that the bill would result in outlays totaling 
     $13.6 billion over the five-year period, assuming 
     appropriation of the authorized amounts. CBO assumes that 
     outlays would follow historical spending patterns except for 
     payments of arrears to the United Nations (U.N.).
       Arrears to the United Nations. Title IX would authorize the 
     appropriation of funds to pay amounts owed by the United 
     States under various treaties to the U.N. and related 
     agencies. Specifically, the bill would authorize new 
     appropriations totaling $244 million for fiscal year 2000 and 
     obligation of previously appropriated amounts for 1998 and 
     1999--$100 million and $475 million, respectively. In 
     addition, subject to appropriation action, the bill would 
     authorize the President to forgo $107 million that the United 
     Nations owes the Department of Defense (DOD), in return for a 
     corresponding reduction in U.S. payments owed to the United 
     Nations.
       Appropriations for the 1998 and 1999 installments have not 
     been obligated pending an authorization. CBO estimates that 
     enactment of S. 886 would permit the $100 million provided 
     for 1998 to be obligated and disbursed in 2000. S. 886 would 
     retain the conditions that were enacted in the 1999 
     appropriations act that are likely to delay obligation of the 
     $475 million until 2001. Based on information from the 
     Department of State, CBO estimates that the conditions 
     attached to the funding for 2000 are likely to delay their 
     obligation and expenditure until at least 2002.
       Fees for Affidavits of Support. Subject to approval in 
     advance in an appropriation act, section 212 would authorize 
     the State Department to charge a fee for helping to prepare 
     certain affidavits as part of an immigrant visa application. 
     Proceeds from the fees would be deposited as offsetting 
     collections and would be available for spending, subject to 
     appropraiton. Based on information from the department, CBO 
     estimates that it would charge a $50 fee and collect roughly 
     $17 million a year. Because spending would initially lag 
     behind collections, this provision would lower net outlays by 
     $3 million in 2000 and $1 million each year in 2001 and 2002 
     before spending would completely offset collections.
       Currency Fluctuations. In addition to the bill's specific 
     authorizations for contributions to international 
     organizations and programs, section 801(f) would authorize 
     such sums as may be necessary in 2000 and 2001 to compensate 
     for adverse fluctuations in exchange rates that might affect 
     those contributions. Any funds appropriated for this purpose 
     would be obligated and expended subject to certification by 
     the Office of Management and Budget. Currency fluctuations 
     are extremely difficult to estimate in advance, and they 
     could result in spending either higher or lower than the 
     amounts specifically authorized in the bill for contributions 
     to international organizations and programs. Therefore, CBO 
     estimates no change in spending from this provision.
       Miscellaneous Provisions. The bill includes several 
     provisions that would combine to cost about $1 million 
     annually, but each provision would probably cost less than 
     $500,000 a year. The individual budgetary impacts are 
     insignificant because they would involve small payments to a 
     few people.
       Section 312 would allow U.S. citizens hired abroad to 
     receive a different (usually higher) amount of compensation 
     than a foreign national employed in the same position.
       Section 331 would grant employees living in the United 
     States and working in Canada or Mexico adjustments for 
     locality pay equal to what they would receive if they worked 
     nearby in the United States.
       Section 332 would allow federal employees who transfer to 
     an international organization to make retroactive 
     contributions to the Thrift Savings Plan (TSP) upon their 
     return to the federal government and to receive matching 
     government contributions and lost earnings on their 
     retroactive contributions. (See the following section for the 
     revenue effects of this provision.)
       Section 333 would authorize allowances to compensate 
     dependents of a deceased employee who are returning to the 
     United States.
       Section 334 would allow employees working abroad who send a 
     dependent to school away from their post to use an education 
     allowance to pay for room, board, and periodic travel between 
     the post and the school.
       Section 335 would authorize advances of pay for employees 
     with medical emergencies.
       Direct Spending and Revenues. The bill contains other 
     provisions that would affect direct spending or revenues by 
     less than $500,000 in most years.
       Machine Readable Visa. S. 886 would extend, through 2001, 
     the Secretary of State's authority to charge a fee for 
     machine readable visas and border crossing cards and to spend 
     the collections on consular activities. CBO estimates the 
     State Department would collect and spend over $300 million in 
     2001 under this authority.
       Deaths and Estates of U.S. Citizens Overseas. Section 214 
     would expand the authority of the State Department to oversee 
     and liquidate the estates of U.S. citizens who lived overseas 
     but died intestate. Under current law, the department is 
     authorized to take possession of and dispose of estates. 
     After a certain period, if no claims have been made against 
     the estate, the proceeds from the sale are transferred to the 
     U.S. state in which the deceased citizen last lived. If the 
     state is unknown, the proceeds are deposited into the 
     Treasury as miscellaneous receipts (revenues).
       The bill would make three substantive changes that would 
     increase miscellaneous receipts. First, if the country in 
     which the citizen died is unable to issue a death 
     certificate, the State Department would issue a report of 
     death (or presumptive death), which would allow for the 
     disposition of the estate. The $10 fee charged for the report 
     would be deposited in the Treasury. (The fee and other 
     expenses associated with disposition of the estate are paid 
     by the estate.) Second, instead of transferring the proceeds 
     of the sale to the U.S. state, these proceeds would be 
     deposited directly into the Treasury. Finally, the bill would 
     allow the State Department to take title to any real 
     property. The department would have the option to retain the 
     property for its own use or sell it and deposit the proceeds 
     in the Treasury. CBO estimates that these changes would raise 
     miscellaneous receipts by less than $500,000 in most years; 
     however, sales of real property could net over $500,000 in 
     rare instances
       Thrift Savings Plan. CBO estimates that section 332, 
     discussed above, would reduce income tax receipts by less 
     than $100,000 annually. Under current law, federal employees 
     can count service with an international organization towards 
     their retirement annuity, but they cannot participate in TSP 
     during this period. Under S. 886, employees who are covered 
     by the Foreign Service Pension System or the Federal 
     Employees' Retirement System would be eligible to make 
     retroactive contributions to TSP. Like all TSP contributions, 
     these retroactive contributions would not be subject to 
     income tax until distributed. According to information from 
     the State Department, approximately 90 federal employees are 
     serving with international organizations at any one time.
       Reimbursement from the United Nations. Section 813 would 
     require the President to seek reimbursement for goods and 
     services provided to the United Nations for peacekeeping 
     operations and other emergencies. The President has authority 
     to provide goods and services on a reimbursable basis and to 
     credit reimbursements to current appropriations if the funds 
     are received within 180 days after the close of the fiscal 
     year in which the services were provided. This section would 
     credit the funds to current appropriations regardless of when 
     the reimbursement is received or allow them to be used to 
     offset peacekeeping assessments if the funds cannot be 
     applied to any appropriation. The section could reduce 
     offsetting receipts, though CBO estimates that the loss of 
     receipts would not be significant.
       During the mid-1990s, DoD provided $175 million in goods 
     and services on a reimbursable basis to support U.N. 
     peacekeeping activities. Most of the reimbursements were 
     deposited into the Treasury. In recent years, however, the 
     DoD has provided less than $1 million a year in goods and 
     services to the United Nations. CBO expects this more recent 
     pattern to continue for the next five years.
       Lockerbie Trial. Section 727 would authorize the President 
     to seize and liquidate blocked Libyan assets to pay the 
     reasonable costs of travel for certain individuals to attend 
     the trial of those suspected of bombing Pan American flight 
     103. The bill would authorize payment of travel expenses to 
     the Netherlands for the immediate family members of U.S. 
     victims, and the authorized amount would be whatever is 
     necessary to cover those expenses. According to information 
     from the Office of Foreign Assets Control, there are 
     currently $400 million in blocked Libyan assets and roughly 
     $600 million in claims against them.
       Although CBO does not expect that this provision would have 
     a significant net budgetary impact over the next five years, 
     liquidating Libyan assets could create a claim against the 
     U.S. government. Should the United States and Libyan 
     governments return to normal relations, the United States 
     might be required to repay the funds or reduce the amount of 
     compensation to other claimants. CBO estimates that 
     transportation and per diem for two weeks would cost $3,000 
     per person. Depending on the number of family members that 
     choose to attend the trial and on the length of their stay, 
     costs could approach $500,000.
       Reimbursements From a State. Section 824 would authorize 
     the commissioner of the International Boundary and Water 
     Commission to accept and spend funds from state and local 
     governments. Upon request, those contributions would be used 
     to provide technical tests, surveys, or similar services. CBO 
     estimates that collections and spending would not be 
     significant in any year.

[[Page S7262]]

       Pay-as-you-go Considerations: The bill contains several 
     provisions that affect direct spending and revenues; however, 
     the net impact is estimated to be less than $500,000 a year.
       Intergovernmental and Private-Sector Impact: Section 4 of 
     the Unfunded Mandates Reform Act (UMRA) excludes from the 
     application of that act any provisions that are necessary for 
     the national security or the ratification or implementation 
     of international treaty obligations. CBO has determined that 
     the provisions in title VI of S. 886 either fall within that 
     exclusion or contain no intergovernmental or private-sector 
     mandates. All other titles of the bill contain no private-
     sector or intergovernmental mandates and would have no 
     significant effects on the budgets of state, local, or tribal 
     governments.
       Estimate Prepared by: Federal Costs: Sunita D'Monte and 
     Joseph C. Whitehill (226-2840) for the Department of State; 
     Gary Brown (226-2860) for the International Boundary and 
     Water Commission; Eric Rollins (226-2820) for retirement 
     benefits; and Jennifer Winkler (226-2880) for employee 
     compensation.
       Impact on State, Local, and Tribal Governments: Leo Lex 
     (225-3220).
       Impact on the Private Sector: Keith Mattrick (226-2940).
       Estimate Approved by: Robert A. Sunshine, Deputy Assistant 
     Director for Budget Analysis.

  Mr. HELMS. Mr. President, I have ascertained that none of the 
Senators on the other side will be available this afternoon to offer 
their amendments or to discuss them. Since there is no Member here, or 
no amendment pending by anybody on this side, I think it would be an 
exercise in futility to continue to suggest quorum calls.

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