EO 13037
Effective Date: March 03, 1997

Responsible Office: Office of the Chief Financial Officer/Comptroller


By the authority vested in me as President by the Constitution
and the laws of the United States of America, including the
Federal Advisory Committee Act, as amended (5 U.S.C. App.), it is
hereby ordered as follows:

Section 1. Establishment.  There is established the Commission to
Study Capital Budgeting ("Commission").  The Commission shall be
bipartisan and shall be composed of 11 members appointed by the
President.  The members of the Commission shall be chosen from
among individuals with expertise in public and private finance,
government officials, and leaders in the labor and business
communities.  The President shall designate two co-chairs from
among the members of the Commission.

Sec. 2. Functions.  The Commission shall report on the following:
     (a) Capital budgeting practices in other countries, in State
and local governments in this country, and in the private sector;
the differences and similarities in their capital budgeting con-
cepts and process; and the pertinence of their capital budgeting
practices for budget decisionmaking and accounting for actual
budget outcomes by the Federal Government;

     (b) The appropriate definition of capital of Federal
budgeting, including; use of capital for the Federal itself or
the economy at large; ownership by the Federal Government or some
other entity; defense and nondefense capital; physical capital
and intangible or human capital; distinctions among investments
in and for current, future, and retired workers; distinctions
between capital to increase productivity and capital to enhance
the quality of life; and existing definitions of capital for

     (c) The role of depreciation in capital budgeting, and the
concept and measurement of depreciation for purposes of a Federal
capital budget; and 

     (d) The effect of Federal capital budget on budgetary
choices between capital and noncapital means of achieving public
objectives; implications for macroeconomic stability; and
potential mechanisms for budgetary discipline.

Sec. 3. Report. The Commission shall adopt its report through
majority vote of its full membership.  The Commission shall
report to the National Economic Council by March 15, 1998, or
within 1 year from its first meeting.

Sec. 4. Administration. (a) Members of the Commission shall serve
without compensation for their work on the Commission.  While
engaged in the work of the Commission, members appointed from
among private citizens of the United States may be allowed travel
expenses, including per diem in lieu of subsistence, as
authorized by law for persons serving intermittently in the
Government service (5 U.S.C. 5701-5707).

     (b) The Department of the Treasury shall provide the
Commission with funding and administrative support.  The
Commission may have a paid staff, including detailees from
Federal agencies.  The Secretary of the Treasury shall perform
the functions of the President under the Federal Advisory
Committee Act, as amended (5 U.S.C. App.), except that of
reporting to the Congress, in accordance with the guidelines and
procedures established by the Administrator of General Services.

Sec. 5. General Provisions.  The Commission shall terminate 30
days after submitting its report.

                         /s/William J. Clinton

March 3, 1997.


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