[Congressional Record Volume 155, Number 46 (Tuesday, March 17, 2009)]
[Extensions of Remarks]
[Pages E692-E693]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONGRESSIONAL BUDGET OFFICE COST ESTIMATE, H.R. 1388, THE GENERATIONS 
              INVIGORATING VOLUNTEERISM AND EDUCATION ACT

                                 ______
                                 

                           HON. GEORGE MILLER

                             of california

                    in the house of representatives

                        Tuesday, March 17, 2009

  Mr. MILLER of California. Madam Speaker, I insert into the Record the 
Cost Estimate from the Congressional Budget Office on H.R. 1388, the 
Generations Invigorating Volunteerism and Education Act.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, March 17, 2009.
     Hon. George Miller,
     Chairman, Committee on Education and Labor, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 1388, the 
     Generations Invigorating Volunteerism and Education Act.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Christina 
     Hawley Anthony.
           Sincerely,
                                             Douglas W. Elmendorf.
       Enclosure.
     H.R. 1388--Generations Invigorating Volunteerism and 
         Education Act
       Summary: H.R. 1388 would amend and reauthorize programs 
     established under the National and Community Service Act of 
     1990 (NCSA) and the Domestic Volunteer Service Act of 1973 
     (DVSA).
       Assuming appropriation of the estimated amounts, CBO 
     estimates that implementing the bill would cost $481 million 
     in 2010 and about $6 billion over the 2010-2014 period. 
     Enacting the bill would not affect direct spending or 
     receipts.
       H.R. 1388 contains no intergovernmental mandates as defined 
     in the Unfunded Mandates Reform Act (UMRA) and would impose 
     no costs on state, local, or tribal governments. H.R. 1388 
     contains no private-sector mandates as defined in UMRA.
       Estimated cost to the Federal Government: The estimated 
     budgetary impact of H.R. 1388 is shown in the following 
     table. The costs of this legislation fall within budget 
     function 500 (education, employment, training, and social 
     services).

----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                              ------------------------------------------------------------------
                                                 2009     2010     2011     2012     2013     2014    2009-2014
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
 
NCSA and DVSA Spending Under Current Law:
    Budget Authority a.......................    1,084        0        0        0        0        0        1,084
    Estimated Outlays........................      927      688      359      177       89       58        2,299
Proposed Changes:
    Estimated Authorization Level............        0    1,312    1,580    1,860    2,151    2,454        9,356
    Estimated Outlays........................        0      481      951    1,249    1,515    1,785        5,980
Spending Under H.R. 1388:
    Estimated Authorization Level a..........    1,084    1,340    1,611    1,894    2,189    2,496       10,440
    Estimated Outlays........................      927    1,169    1,310    1,426    1,604    1,844        8,279
----------------------------------------------------------------------------------------------------------------
Note: NCSA = National and Community Service Act; DVSA = Domestic Volunteer Service Act.
a The 2009 level is the amount appropriated for that year for NCSA and DVSA programs.

       Basis of estimate: For some programs, the bill would 
     authorize the appropriation of specified amounts for fiscal 
     year 2010 and such sums as may be necessary for each 
     subsequent year through 2014. For those programs, CBO 
     estimated the authorization level for fiscal years 2011 
     through 2014 by adjusting the amount authorized for 2010 for 
     anticipated inflation. For the remaining programs authorized 
     by H.R. 1388, the bill would authorize such sums as may be 
     necessary for each fiscal year. CBO estimated those 
     authorization levels based on historical program costs for 
     similar activities, anticipated

[[Page E693]]

     inflation, and the bill's stated goal of achieving 250,000 
     participants by 2014.
       For this estimate, CBO assumes the bill will be enacted by 
     October 1, 2009, and that outlays will follow historical 
     patterns for those programs.
       Programs funded under NCSA and DVSA received appropriations 
     of $1.1 billion for fiscal year 2009, including $200 million 
     in funding from the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5).
       Specified Authorizations: Under H.R. 1388, specified 
     authorizations for 2010 would total $472 million. 
     Specifically, the bill would authorize the appropriation of 
     the following amounts for 2010:

       Foster Grandparent Program ($115 million),
       VISTA ($100 million),
       Learn and Serve America ($97 million),
       Retire and Senior Volunteer Program ($70 million),
       Senior Companion Program ($55 million), and
       National Civilian Community Corps ($35 million).

       CBO estimates that implementing those programs would cost 
     $1.9 billion over the 2010-2014 period, assuming 
     appropriation of the specified amounts for 2010 and adjusting 
     those amounts for anticipated inflation for 2011 through 
     2014.
       Indefinite Authorizations: The bill also would authorize 
     the appropriation of such sums as may be necessary for fiscal 
     years 2010 through 2014 for other programs, including 
     AmeriCorps and education awards funded through the National 
     Service Trust. CBO estimates those indefinite authorizations 
     would total $840 million in fiscal year 2010 and would rise 
     to nearly $2 billion by 2014.
       H.R. 1388 includes a stated goal that participation in all 
     AmeriCorps programs (including the National Civilian 
     Community Corps and VISTA) should increase to 250,000 people 
     by 2014 (participation in those programs was about 75,000 in 
     2008). For this estimate, CBO assumes that sufficient funds 
     would be provided to meet that goal--$3.6 billion over the 
     2010-2014 period, CBO estimates. Those funds would be used 
     primarily to provide grants to states, territories, tribes, 
     and nonprofit organizations to operate volunteer service 
     programs. CBO estimates that outlays for those programs would 
     total $2.7 billion over the 2010-2014 period.
       Most participants in AmeriCorps programs (and some VISTA 
     participants) earn education awards for completing specific 
     terms of service that can be used to repay certain student 
     loans or to pay for future education expenses. In 2009, the 
     maximum award is $4,725. Beginning in 2010, the maximum full-
     time education award would be pegged to the amount authorized 
     for Pell grants under the Higher Education Act of 1965. Those 
     amounts are $6,400 in 2010; $6,800 in 2011; $7,200 in 2012; 
     $7,600 in 2013; and $8,000 in 2014. CBO estimates that over 
     the 2010-2014 period another $2.4 billion would be needed to 
     fund education awards for AmeriCorps participants. Assuming 
     the appropriation of those sums, CBO estimates outlays would 
     increase by $0.5 billion over the five-year period (with 
     significant additional outlays in subsequent years).
       CBO also estimates that over the 2010-2014 period, the bill 
     would authorize the appropriation of funds for:

       Administrative expenses, including support to state service 
     commissions and evaluation of programs ($0.6 billion),
       Various demonstration programs ($0.2 billion),
       Training and technical assistance programs ($150 million), 
     and
       A new Congressional Commission on Civic Service ($1 
     million).

       In total, CBO estimates that outlays would rise by $0.8 
     billion over the next five years, assuming appropriation of 
     the estimated amounts.
       Intergovernmental and private-sector impact: H.R. 1388 
     contains no intergovernmental or private-sector mandates as 
     defined in UMRA. The bill would authorize grants to state, 
     local, and tribal governments to support national service 
     programs including AmeriCorps, VISTA, and the National Senior 
     Service Corps. CBO estimates state, local, and tribal 
     governments could receive grants totaling more than $4 
     billion over the next five years. Any costs to those 
     governments would be incurred voluntarily as a condition of 
     receiving federal assistance.
       Estimate prepared by: Federal Costs: Christina Hawley 
     Anthony; Impact on State, Local, and Tribal Governments: 
     Burke Doherty; Impact on the Private Sector: Patrick 
     Bernhardt.
       Estimate approved by: Peter H. Fontaine, Assistant Director 
     for Budget Analysis.

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