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Ricky Bagolie
Ricky Bagolie
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The Proposed Federal Asbestos Trust Fund Is Inadequate

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The Congressional Budget Office has again indicted that the proposed asbestos reform trust fund would be inadequate. There is a strong likelihood that the fund would fall short of the amount needed to pay claims and that many victims of asbestos exposure would not be adequately compensated under the system.

As reported in the full text: http://www.cbo.gov/ftpdoc.cfm?index=6989&type=1

“CBO projects that the proposed fund would be presented with valid claims worth between $120 billion and $150 billion, excluding certain potential costs or savings that CBO could not estimate; total costs would be higher because the fund must also cover administrative expenses and any financing costs. The revenues collected under the bill would be, at most, about $140 billion, but could be significantly less. If the value of valid claims was significantly more than $130 billion, the fund’s revenues would probably be inadequate to pay all claims.

There are many viraible that have not been taken into consideration by the CBO which could greatly impact the cost of the legislation.