[Congressional Record (Bound Edition), Volume 156 (2010), Part 13]
[Extensions of Remarks]
[Pages 18585-18586]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 OPIC CONTRIBUTES TO DEFICIT REDUCTION

                                 ______
                                 

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                      Wednesday, December 1, 2010

  Mr. MANZULLO. Madam Speaker, two weeks ago, the Treasury Department 
released

[[Page 18586]]

the details of the Federal budget deficit for Fiscal Year 2010. While 
many of the numbers were grim, at least one federal agency--the 
Overseas Private Investment Corporation, OPIC--reported a net income of 
nearly $260 million and contributed a net positive balance to the 
Federal budget deficit of $352 million in FY 10. In fact, this 
represents the 33rd consecutive year that OPIC has made a positive 
contribution to the Federal budget. These numbers were also confirmed 
by an independent external auditor, KPMG.
  OPIC's earnings are generated through fees charged to users of their 
financing and insurance programs, as well as interest earned on its 
growing reserves, which now total about $5 billion. Because OPIC 
charges market-based fees for its products, it operates on a self-
sustaining basis at no net cost to the taxpayers. This is not counting 
the tax revenue generated by the more than 274,000 U.S. jobs that OPIC 
projects have supported over the past 39 years. In FY 10, OPIC-
supported projects are estimated to generate $624 million in U.S. 
exports and to support nearly 1,000 American jobs. Eighty of the 97 
projects supported by OPIC in FY 10 involved U.S. small businesses.
  Thus, it would be counterproductive to close down OPIC because that 
action would actually reduce an incoming revenue stream to the Federal 
government and exasperate our budget deficit problem. In addition, if 
OPIC were terminated, many current users of OPIC would simply switch to 
investment insurance and financing programs of foreign governments, 
which would result in the shifting of U.S. jobs and tax revenue 
overseas, because there is no private company that provides long-term 
political risk insurance. That is why I encourage Congress to pass a 
multi-year reauthorization bill for OPIC, S. 705/H.R. 5975.

                          ____________________