Rick Scott proposes adding interest costs to CBO estimates

What Scott’s bill would change

Florida Sen. Rick Scott has proposed legislation that would add interest costs to estimates prepared by the Congressional Budget Office. The proposal concerns how the budget office calculates and presents the projected cost of federal legislation.

Including interest would give lawmakers an estimate that accounts for the cost of financing covered legislation, not only its other projected budget effects. That could change the total cost shown in a CBO estimate when interest applies. The proposal does not concern a Florida state budget estimate; it would affect work performed by the federal budget office for Congress.

The bill centers on the information lawmakers receive while considering legislation. Its effect on an individual estimate would depend on the interest costs calculated for the measure being reviewed.

What comes next

The proposal must move through the congressional legislative process before any new estimating requirement takes effect. Key steps include referral to a committee, possible committee action and consideration by the full House and Senate.

The bill’s text and any later amendments will determine which estimates are covered and how the interest calculation must be presented. Other important details include the period used to calculate interest and the assumptions applied to that calculation.

Lawmakers can also consider changes to the proposal as it advances. Any version approved by Congress would have to contain the same language in both chambers before it could be sent to the president.