GENERAL COUNSEL

The Office of General Counsel performs standard legal work for the Congressional Budget Office with respect to statutory interpretations, drafting contracts and reviewing contract procedures, preparing and administering conflict-ofinterest regulations governing the CBO staff, and providing legal advice to the Director and staff as required.

BUDGET ANALYSIS DIVISION

The Budget Analysis Division is the focal point for providing CBO's routine support to the budget cycle as it is defined in the Congressional Budget and Impoundment Control Act of 1974. The Division's primary responsibility is ensuring that accurate and comprehensive budget information is available to the Congress on a timely basis. It is concerned with preparation analysis, and tracking budget estimates; the development and maintenance of an integrated budget information system; and for studies on budget concepts and procedures. The major functions and their budget requirements are described below.

Budget Scorekeeping with the former staff of the Joint Committee on the Reduction of Federal Expenditures serving as the nucleus of this effort, the Budget Analysis Division will provide periodic reports comparing congressional actions affecting the budget with the limits set in the concurrent resolution, the President's budget, and other indicies of government activitiy as required by Sections 308(a) and (b). The scorekeeping system is in the process of being automated to better respond to the increased demands for scorekeeping reports generated by the new congressional budget system. Detailed reports are being provided to the Congress on a bi-monthly basis, updated reports will be provided to the Senate on a weekly basis, and special reports will be provided as required once the system is automated.

Five-year Projections - As soon as practicable after the beginning of each fiscal year, the Budget Analysis Division will have the lead responsibility within CBO to prepare a report containing five-year projections of total new budget authority and outlays, revenues and the budget surplus or deficit, and tax expenditures as required by Section 308 (c). The Division will also analyze the President's current services budget estimate which will be submitted to Congress in accordance with Section 605 in order to reconcile these estimates with CBO's five-year projections. During FY 1976, special attention will be given to improving the methodology for estimating future costs for the 58 largest budget accounts which make up 84% of the Federal budget.

Cost Estimates of Pending Legislation - Section 403 requires CBO, to the extent practicable, to prepare for each bill or resolution of a public character reported by any committee of the House or the Senate (except the Appropriations Committees) an estimate of the costs which would be incurred in carrying out the legislation in the fiscal year in which it is to become effective and in each of the following four years, together with the basis for each such estimate. A comparison shall also be made of the CBO cost estimate with any available cost estimate by the committee or by any Federal agency. The request for FY 1976 includes approximately $300 thousand to reimburse executive agencies for computer analyses to be specified by CBO of major uncontrollable

programs such as unemployment insurance, social security benefits, food stamps, medicaid and medicare and public assistance programs. The Budget Analysis Division will also work to improve existing capability to estimate costs of these programs through in-house and contractural research efforts.

Integrated Information System A major effort is under way to develop an automated and integrated budget information system as required by Title VIII of the Congressional Budget Act. A preliminary system analysis has been completed by the American Management Systems, Inc. describing budget information needs and available resources. Based on the AMS report and other sources of information, the CBO estimates that approximately $500 thousand will be required for one-time developmental costs of a comprehensive budget information system for the Congress. The request for FY 1976 includes these one-time development costs. Future years' costs should be lower with requirements limited to operation of the system and minor revisions in systems design.

Budget Concepts and Procedures The Budget Analysis Division also assumes CBO's statutory responsibilities in the areas of budget terminology (Title VIII), studying the feasibility of advanced appropriations (Section 502 (c)), and support to the budget committees in their continuing studies of additional budget reform proposals (Section 703). During FY 1976 the Division, in conjunction with GAO, is developing a legislative classification system to relate the budget to legislative statutes for the authorizing committees. This project should give valuable assistance to the authorizing committees in preparing their March 15 reports to the budget committees.