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CRS84524Epage14
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CRS84524Epage14
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CRS87307EPWpage02
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CRS87307EPWpage02
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CRS87307EPWpage06
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CRS87307EPWpage06
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CRS87307EPWpage20
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CRS87307EPWpage20
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CRS87307EPWpage11
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CRS87307EPWpage11
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to be the following: 10 Section 3(b) payments would be terminated in FY 1988 to approx- imately 2,550 local school districts that currently receive sec- tion 3(b) payments on behalf of over 1.7 million section 3(b) children in FY 1987; for some of these school districts, espe- cially those located near military bases, these payments may
CRS87307EPWpage07
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CRS87307EPWpage07
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ESTIMATED IMPACT AID PAYMENTS UNDER SECTION 3 OF P.L. 81-874-- COMPARISON OF THE ESTIMATED FY 1988 PAYMENTS UNDER THE ADMINISTEATIoN'S FY 1988 BUDGET PROPOSAL WITH THEM ESTIMATED FY 1987 PAYMENTS UNDER CURRENT LAw (P.L. 99-500) INTRODUCTION This paper analyzes the Administration's proposed fiscal year (FY) 1988‘ distribution formula for allocating Impact Aid payments under section 3
CRS87307EPWpage14
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CRS87307EPWpage14
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CRS-8 The following discussion, based upon the preceding table, compares, at the local school district level, the distribution of section 3 funds in FY 1987 un- .der current law with that proposed for FY 1988 under the Administration's FY 1988 budget request. Local School District Comparisons Under current law, local school districts are eligible to receive section 3 assistance
CRS87307EPWpage12
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CRS87307EPWpage12
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CRS-6 represent 50 percent or more of the school district's budget for current educational expenditures; 2. Section 3(a) funds would shift slightly from school districts whose section 3(a) students represent at least 20 percent but less than 35 percent of the district's total students in aver- age daily attendance to school districts whose section 3(a) students represent at least 10
CRS87307EPWpage03
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CRS87307EPWpage03
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; an influx of persons into the community, resulting in an increased number of children to be educated. This report compares the estimated FY 1988 section 3: payments under the Administration's FY 1988 budget proposal with the estimated FY 1987 section 3 payments under current law (P.L.v99-500).
CRS87307EPWpage05
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CRS87307EPWpage05
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CRS861012ENRpage02
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CRS861012ENRpage02
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-ABSTRACT Net outlays for the U.S. Department of Agriculture's commodity price support programs will reach a record $26 billion or more in fiscal 1986. This report briefly discusses how these programs are funded, who benefits from them, and their cost to taxpayers.
CRS861012ENRpage25
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CRS861012ENRpage25
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CRS861012ENRpage05
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of supporting farmers. PRICE suppoar COSTS Background Farm price support activities are carried out chiefly within the purview of the CCC, a wholly owned Government corporation operating within USDA under the authority of the Comodity Credit Corporation Charter Act (15 U.S.C. 714). The Corporation has an authorized capital stock of $100 million and authority to borrow up to $25 billion at any one time from
CRS861012ENRpage29
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. 25.85 22.76 27.82 _ 24.21 I 31.28 29.47 18.65 27.81 1000-1499 75406 ' ‘23779 10288 8305 I 110382 36262 I 14 264436 pct. . 15.35 8.15 I 16.79 12.42 17 . 13.43 5.56 14.52 1500-1999 » . « 48701 11210 ’ — 5718 - 4279 52065 17710 11 . 134694 get. 8.90 1.84 9.33 6.40 8.13 6.56 ‘ 4.37 7.39 2000-2499 26852 5401 3443 2386 22903 8903 7 69895 per. 5.47 - 1.85 5.62 3.57 3.58 . 3.30 2.78 3.84 2500+ I 60546
CRS861012ENRpage08
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CRS861012ENRpage08
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_years. In fact, nearly all CCC activities, including those commodity price support programs that do take in some receipts, incur losses in most years. How do "net realized losses“ differ from outlays? As noted, outlays are an annual measure, a portion of which can theoretically be recovered at a later 5The 1985 farm legislation added a new price support tool known as a "marketing loan
CRS861012ENRpage10
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CRS861012ENRpage10
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and marketing year are the samer-meaning that dairy price support operations of the 1985-86 marketing year will be recorded entirely within the 1986 fiscal year. ‘As table 1 indicates, CCC outlays increased nearly tenfold from fiscal 1980 to 1986, from about $2.7 billion to roughly $26 billion. What caused this increase? During the late 1970s, farm exports boomed. Agricultural experts predicted that world
CRS861012ENRpage07
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CRS861012ENRpage07
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CRS-5 the developments that can, sometimes overnight, render even the most recent CCC cost estimate out°of*date. CCC Cost Concepts The $26 billion in FY86 costs, noted above, are "net outlays," which measure Federal aid to farmers in any single year. However, a closer look at them as well as several other farm budget measurements can be helpful to understanding the true taxpayer cost of farm assistance. Net outlays, also sometimes called "net expenditures,' portray the difference between what the CCC spends in a given year to support farm prices and income, and what it earns during the same year from surplus commodity sales, loan repayments, and so forth. Net outlays do not necessarily translate into losses, however. Some outlays may be recoverable at a later time, while others may not be. Recoverable outlays are mainly in the form of nonrecourse loans. If farmers enrolled in price support programs are able to sell their crops for prices (per bushel or other unit) that are higher than the value of the Federal loans they obtained by using these crops as collateral, they repay the loans with interest to the CCC. Therefore, the CCC will recoup its outlays for these particular loans. If, however, prices are at or below loan l levels, a large number of loans will not be repaid. The CCC instead takes
CRS861012ENRpage23
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CRS861012ENRpage23
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CR8-21 in order to keep large producers participating--even if outlays are high for the next several years. That way, the large farm surpluses might be reduced without further harming an already ailing farm economy, it hasbeen argued. Still others assert that no farm policy can provide solutions to all of agriculture's problems, mainly because macroeconomic and other forces outside of the sector today play a far more important role in determining farmers‘ well“being- Perhaps, they believe, Federal farm programs today can only treat some of the symptoms of-—but not cure-“an ailing agricultural economy.
CRS861012ENRpage01
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CRS861012ENRpage01
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LC /L/f /in/‘ji s RP+»7%<%“-/0/‘2 E/1//gs-1012 ENR s °P Congressional Research Service The Library of Congress Washington, D.C. 20540 FARM SUPPORT PROGRAMS: COST CONSIDERATIONS Geoffrey S. Becker Specialist Food and Agriculture Section Environment and Natural Resources Policy Division ' September 1986 Revised a November‘ 1986 Government Publication; s L Uni? ' AUG 0 i 1994 Washington
CRS85585Apage15
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CRS85585Apage15
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the right to meet with representatives of groups interested in their civil rights. Similarly, in 1978, the district court in ‘ Johnsofl Vs Solomon, F0 Supp. Mdo géf Rennie v. Klein, 462 F. Supp. 1131 (D.N.J. 1978). _g§/ Wyatt v. Aderholt, 368 F. Supp. 1383 (M.D. Ala. 1974). .31] Davis v. Watkins, 384 F. Supp. 1196 (N.D. Ohio 1974); Johnson by Johnson v. Brelje, 701 F. 2d 1201 (7th Cir. 1983) (striking down

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