On the recordMarch 7, 2007
I explained the situation with H.R. 720, the State Revolving Loan Fund, Mr. Chairman, so that the gentleman from Georgia would have understanding and confidence that the committee has done its homework, has acted responsibly on the matter of offsets where there is direct spending or where there is a reduction in Federal revenues. We submitted H.R. 720 to review by CBO and the Office of Management and Budget. Both were of the opinion that there would be a reduction in revenues if municipalities issue municipal bonds and that those municipal bonds will be tax exempt and therefore a reduction in revenues. The distinction between that legislation and this is that there is no direct spending involved. There is no resulting responsibility on governments to take action that would result in a reduction in revenues, nor is this an appropriation. It is not a direct spending. And, therefore, it is not subject to the PAYGO rules.
Source
govinfo.gov
