will not be resold or transshipped to other countries or used for other than domestic purposes of the recipient country. Subsection (d) provides that the Secretary shall carry out the provisions of this section through the Commodity Credit Corporation. Subsection (e) provides that the authority established in this section is in addition to any authority of the Secretary or the Commodity Credit Corporation under any other provision of law. COST ESTIMATE In accordance with paragraph 11(a) of rule XXVI of the Standing Rules of the Senate, the Committee has estimated the cost of carrying out the provisions of this legislation for fiscal years 1983 through 1985. The Congressional Budget Office provided cost estimates which were the basis for the Committee's cost projections. The savings achieved by this legislation are required under the provisions of Senate Concurrent Resolution 92. Those savings are in relation to the provisions of the First Concurrent Resolution for fiscal year 1983, as determined by the Congressional Budget Office. Consequently, the Committee chose to adopt the cost estimates provided by the Congressional Budget Office. In accordance with the Congressional Budget Act of 1974, the Congressional Budget Office prepared the following cost estimate: Pursuant to Section 202 of the Congressional Budget Act, the Congressional Budget Office has prepared the attached cost estimate for the provisions reducing spending in programs under the jurisdiction of the Senate Committee on Agriculture, Nutrition and Forestry. Should the Committee so desire, we would be pleased to provide further details on the attached cost estimate. CONGRESSIONAL BUDGET OFFICE 1. BILL NUMBER: Unknown. 2. BILL TITLE: 3. 4. Provisions reducing spending in programs under the jurisdiction of the BILL STATUS: As ordered transmitted to the Senate Committee on the Budget, BILL PURPOSE: To reduce expenditures in response to the First Resolution on the 96-611 O (by fiscal years, in millions of dollars) 1983 1984 1985 AUTHORIZATION INCREASES Subtitle A: Food Stamp Program Reductions (Function 600) Subtitle D: Agricultural Export Promotion (Function 350) 6. BASIS OF ESTIMATE: SUBTITLE A: FOOD STAMP PROGRAM REDUCTIONS This section describes the relationship of the new authorization to the bipartisan baseline used for the First Resolution on the Budget for Fiscal Year 1983. The total savings are summarized first and the savings from each provision are then described separately. Food Stamp Reductions Relative to the Bipartisan Baseline This bill authorizes the food stamp program for fiscal years 1983 through 1985 at funding levels not to exceed the authorization ceilings shown in the table above. Estimated authorization levels and estimated outlays were derived by subtracting from bipartisan baseline projections the cost effects of major changes to the 1977 Food Stamp Act as amended that would be introduced by this bill. The bipartisan baseline projections for food stamps shown in the following table assume a fully funded program utilizing current eligibility and benefit rules. Economic assumptions adopted by the Conference on the First Concurrent Resolution on the Budget were used in the development of these projections. Neither the baseline estimates nor the estimates of the cost of this bill include effects on Food Stamp program costs of certain provisions of H.R. 4961, as reported by the Senate Finance Committee on July 12, 1982. Enactment of changes to the Aid to Families with Dependent Children and Supplemental Security Income programs in H.R. 4961 would result in increases in estimated authorization levels and estimated outlays of $190 million in fiscal year 1983, $208 million in fiscal year 1984, and $213 million in fiscal year 1985. Following are estimates of the effects on program cost, relative to baseline levels, of changes to the Food Stamp program introduced by this bill. The totals of the effects on program costs of all changes are shown in the table below. Section 102 would require all related persons living together to be treated as a single household for purposes of determining program eligibility and benefits unless one of the related persons is age 60 or older or receives SSI or Social Security disability benefits. Currently, persons living together are treated as separate households if they purchase food and prepare meals separately except that parents and children living together are treated as a single household unless one of the parents is age 60 or older or receives SSI or Social Security disability benefits. Total benefits would be reduced in cases where two or more individual Food Stamp households are consolidated into one primarily because only one rather than two or more standard deductions would be allowed in determining net food stamp income. In addition, some participants may become ineligible to continue participation because of income or resources of related persons with whom they are living. The effects on program costs, which are shown below, are based upon Administration estimates. Section 103 specifies changes to the bases for periodic indexing of the maximum allotment levels. Under current law, the maximum allotment levels would be adjusted on October 1, 1982 based on the change in the cost of the Department of Agriculture's thrifty food plan during the 21 month period ending the preceding June. On each subsequent October 1, adjustments would be made based upon changes occurring during the twelve months ending the preceding June. The change would cause the October 1, 1982 adjustment to be based on thrifty food plan cost changes occurring during the 18 month period ending in March, 1982. The October 1983 adjustment would be based on cost changes Occurring during the 13 month period ending the preceding April. The October 1984 adjustment would be based on cost changes occurring during the 13 month period ending the preceding May. This change would reduce allotment levels below current law levels and would result in decreased benefits for all participating households except those receiving the minimum benefit. Cost changes associated with this provision, shown in the table below, were calculated by using |