[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[April 29, 1992]
[Pages 666-667]
[From the U.S. Government Publishing Office www.gpo.gov]



Memorandum on Benefits and Costs of Legislative Proposals

April 29, 1992
Memorandum for the Heads of Departments and Agencies

Subject: Benefits and Costs of Legislative Proposals

    I am today directing the establishment of procedures by which the 
likely benefits and costs to the American public of legislative 
proposals are disclosed, to the public and to the Congress, before 
enactment. These procedures will permit the full and fair evaluation of 
these benefits and costs, both direct and indirect, as part of the 
legislative process.
    The rational and efficient balancing of the benefits and costs of 
proposed Federal legislation can be hindered by a lack of key 
information. Enactment of legislation without consideration of this 
information may result in costly and inefficient requirements that show 
the rate of growth of jobs and incomes for the American people. 
Identifying the benefits and costs of proposed regulatory and other 
Federal legislation and their indirect effects is a crucial first step 
in assuring strong economic performance.
    I therefore direct the Director of the Office of Management and 
Budget to ensure that quantified estimates of the likely benefits and 
costs of legislative proposals are provided on a timely basis to the 
Congress. This shall be undertaken as part of the legislative 
coordination and clearance process established by OMB, and shall be 
consistent with the policies stated in existing Executive orders.
    Where appropriate, these estimates should include assessments of the 
effect of the proposed legislation on:
    1. The expected benefits and costs for the

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        U.S. economy (including, for example, the impact on consumers, 
        firms, and State and local governments);
    2. U.S. employment, inflation, international competitiveness, and 
        economic growth (measured, for example, by gross domestic 
        product); and
    3. Outlays and revenues by the Federal government as compared to 
        outlays and revenues for the same activity in the current fiscal 
        year.
    Departments and agencies should prepare these estimates in a timely 
manner for significant elements of legislative proposals under active 
consideration by the Congress, or to be proposed by a department or 
agency, that have substantial impact upon the public, and should provide 
the Office of Management and Budget with such proposed estimates as may 
be requested by the Director. The Director of the Office of Management 
and Budget shall, in consultation with the Chairman of the Council of 
Economic Advisers, provide technical guidance to agencies on the 
methodology for preparing high quality and accurate estimates.

                                                             George Bush