[Analytical Perspectives]
[Federal Receipts and Collections]
[4. User Fees and Other Collections]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 61]]

 
                   4. USER FEES AND OTHER COLLECTIONS

  In addition to collecting taxes and other governmental receipts by the 
exercise of its sovereign powers, the Federal Government earns income 
from its various business-type activities. Examples of this income 
include the sale of postage stamps and electricity, the collection of 
fees for admittance to national parks, premiums for deposit insurance, 
and rents and royalties for the right to extract oil from the Outer 
Continental shelf. Because these collections stem from business-type 
activities, as opposed to exercise of sovereign powers, they are 
subtracted from gross outlays rather than added to the taxes and other 
governmental receipts discussed in the previous chapter. Because these 
collections reduce outlays, they are called ``offsetting collections.'' 
The purpose of this treatment is to produce budget totals for receipts, 
outlays, and budget authority in terms of the amount of resources 
allocated governmentally, through collective political choice rather 
than through the market.
  Offsetting collections are classified into two major categories: 
offsetting receipts, which are deposited in receipt accounts; and 
offsetting collections credited to appropriations (expenditure) 
accounts, which are deposited directly in these accounts and usually can 
be spent without further action by the Congress. Both categories include 
collections from other accounts within the Government as well as the 
public. Chapter 24, ``Budget System and Concepts,'' explains the 
budgetary treatment of these collections more fully.
  The term ``user fee'' is not a separate budget category for 
collections. It is a general term referring to fees charged to users 
directly availing themselves of, or subject to, a government service, 
program, or activity, in order to cover the government's costs. 
Depending primarily on whether the user charge is based on the 
Government's sovereign power or business-type activity, it may be 
classified as a governmental receipt or an offsetting collection.
  As shown in Table 4-1, total offsetting collections from the public 
(including those proposed in this budget) are estimated to be $209.1 
billion 1998. This is only 13 percent as large as the governmental 
receipts discussed in the previous chapter. Table 4-1 divides this total 
between offsetting receipts and offsetting collections credited to 
appropriations accounts and shows major subcategories of each. Table 4-3 
provides more detail for offsetting receipts collected from the public 
and offsetting receipts collected from other accounts within the 
Government. 

                                     

                               Table 4-1.  OFFSETTING COLLECTIONS FROM THE PUBLIC                               
                                            (In millions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                  Estimate      
                                      Type                                          1996   ---------------------
                                                                                   actual      1997       1998  
----------------------------------------------------------------------------------------------------------------
Collections deposited in receipt accounts:                                                                      
  Medicare premiums............................................................    20,038     20,293     21,772 
  Military assistance trust fund property sales................................    14,747     13,760     13,400 
  Outer Continental Shelf payments, naval petroleum reserve lease and other                                     
   undistributed offsetting receipts...........................................     3,742      4,152      9,817 
  Spectrum auction proceeds, undistributed.....................................       342      7,961     11,459 
  Sale of property and services, interest income and all other collections                                      
   deposited in receipt accounts...............................................    20,139     23,401     26,194 
                                                                                --------------------------------
    Subtotal, collections from the public deposited in receipt accounts........    59,008     69,567     82,642 
Collections credited to appropriations accounts:                                                                
  Postal Service Stamp sales and other collections.............................    55,477     56,801     58,533 
  Deposit insurance funds......................................................    10,320     12,363      4,524 
  Tennessee Valley Authority and Power Administration collections..............     9,440      8,096      9,284 
  Commodity Credit Corporation loan repayments and other collections...........     7,360      7,056      8,154 
  Other loan repayments........................................................     7,867      7,195      6,296 
  Loan guaranty and other insurance premiums, interest income and all other                                     
   collections credited to appropriations accounts.............................    46,927     43,529     39,661 
                                                                                --------------------------------
    Subtotal, collections from the public credited to appropriation accounts...   137,391    135,040    126,452 
Offsetting collections from the public.........................................   196,399    204,607    209,094 
Offsetting collections from the public excluding off-budget Postal Service                                      
 collections...................................................................   140,922    147,806    150,561 
----------------------------------------------------------------------------------------------------------------

  The budget contains a variety of user fee and other collections 
proposals that would yield $1.6 billion in 1998 and $47.3 billion from 
1998 through 2002. In addition, the Administration proposes dedicating 
$1.1 billion of existing collections in 1998, and $5.0 billion from 1998 
through 2002 to discretionary spending. These proposals establish, 
increase, or extend fees in order to recover more of the costs of 
providing government services. Table 4-2 splits the proposals between 
discretionary and mandatory categories for the appropriate 

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scoring under the Budget Enforcement Act of 1990 (BEA). It includes user fees 
classified as offsetting collections and governmental receipts. The 
budget includes several specific proposals to fund discretionary 
spending with existing or new user fees that are governmental or 
offsetting receipts. Legislation will be proposed to authorize the fees 
and, upon enactment of the authorization, a budget amendment to the 
current appropriations language will be proposed to make the fees 
available for expenditure. Because the current requirements of the 
Budget Enforcement Act of 1990 make it difficult to fund discretionary 
programs with receipts not authorized in appropriations acts, the 
Administration is proposing a change in the requirements to facilitate 
enactment of such proposals.

                                     

                              Table 4-2.  PROPOSED USER FEES AND OTHER COLLECTIONS                              
                                            (In millions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                                            1998     1999     2000     2001     2002   1998-2002
----------------------------------------------------------------------------------------------------------------
                       User fees:                                                                               
Discretionary fee proposals:                                                                                    
  New and increased fees:                                                                                       
    Department of Agriculture:                                                                                  
      Food Safety and Inspection Service--New meat,                                                             
       poultry, and eggs inspection fees................      390      390      390      390      390     1,950 
      Animal and Plant Health Inspection Service--                                                              
       Establish new fees...............................       10       10       10       10       10        50 
      Grain Inspection, Packers and Stockyards                                                                  
       Administration-- New standardization and                                                                 
       licensing fees...................................       16       19       19       19       19        92 
    Department of Transportation:                                                                               
      Federal Railroad Administration--Extend railroad                                                          
       safety inspection fees...........................       60       60       60       60       60       300 
      Surface Transportation Board--New fees to offset                                                          
       expenses.........................................       13       14       14       14       14        69 
    Department of Veterans Affairs--Veterans Health                                                             
     Administration:                                                                                            
       Medical care collections--extend expiring                                                                
       provisions.......................................      123      362      394      421      451     1,751 
    Social Security Administration:                                                                             
      Increase user fees for SSA to administer State                                                            
       supplementation of SSI benefits to $7.25.........       40       70       80       80       90       360 
    Army Corps of Engineers:                                                                                    
      Increase wetlands dredging permit application fees        7       14       14       14       14        63 
    Federal Emergency Management Agency:                                                                        
      Extend fee to cover 100% of radiological emergency                                                        
       preparedness program.............................       12       12       12       12       12        60 
    National Capital Planning Commission:                                                                       
      Establish Geographic Information System fees......        *        *        *        *        *         * 
    Nuclear Regulatory Commission:                                                                              
      Extend nuclear facility fees......................       --      310      310      310      310     1,240 
                                                         -------------------------------------------------------
      Subtotal, new and increased discretionary user                                                            
       fees.............................................      671    1,261    1,303    1,330    1,370     5,935 
                                                                                                                
  Existing mandatory fees reclassified as discretionary:                                                        
    Department of Veterans Affairs--Veterans Health                                                             
     Administration:....................................                                                        
      Medical care current law collections..............      468      308      355      404      452     1,987 
                                                                                                                
Governmental receipts dedicated to discretionary                                                                
 spending:                                                                                                      
  New and increased fees:                                                                                       
    Department of Health and Human Services--Food and                                                           
     Drug Administration:                                                                                       
      Extend prescription drug user fees; establish new                                                         
       fees for medical device reviews, import                                                                  
       inspections, and other FDA activities............      237      252      267      282      297     1,335 
    Department of Labor--Employment and Training                                                                
     Administration:                                                                                            
      New alien labor certification user fee charged to                                                         
       employers........................................       25       50       50       50       50       225 
    Department of Transportation:                                                                               
      Federal Aviation Administration--establish cost-                                                          
       based fee system.................................      300    8,734    8,862    9,099    9,342    36,337 
    National Transportation Safety Board:                                                                       
      New accident investigation user fees..............        6        6        6        6        6        30 
                                                         -------------------------------------------------------
      Subtotal, new and increased governmental receipts                                                         
       dedicated to discretionary spending..............      568    9,042    9,185    9,437    9,695    37,927 
                                                                                                                
  Existing governmental receipts dedicated to                                                                   
   discretionary spending:                                                                                      
    Department of State:                                                                                        
      Immigration, passport and other fees..............      455      455      455      455      455     2,275 
      Machine readable visa fee.........................      140      140      140      140      140       700 
                                                         -------------------------------------------------------
       Subtotal, current law amounts dedicated to                                                               
       discretionary....................................      595      595      595      595      595     2,975 
                                                                                                                
Mandatory fee proposals:                                                                                        
  New and increased fees:                                                                                       
    Department of Agriculture--Agricultural Marketing                                                           
     Service:                                                                                                   
      Recover costs for oversight of marketing                                                                  
       agreements and orders............................       10       11       11       11       11        54 
    Department of Commerce:                                                                                     
      Patent and Trademark Office--Extend patent                                                                
       surcharge........................................       --      119      119      119      119       476 
    Department of Health and Human Services:                                                                    
      Health Care Financing Administration--New Medicare                                                        
       initial survey and certification fees                                                                    
       (governmental receipt)...........................       10       10       10       10       10        50 

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    Department of the Interior:                                                                                 
      Bureau of Land Management:                                                                                
         Extend and index hardrock mining holding fees                                                          
         on public lands................................        1       32       33       34       35       135 
         Establish hardrock mining royalties on public                                                          
         lands (5% on net-smelter return)...............       --       42       63       35       35       175 
      National Park Service:                                                                                    
         Increase Hetch Hetchy Dam rental payments......        1        1        1        1        1         5 
         Extend demonstration authority to collect                                                              
         recreation and related fees--(also affects Fish                                                        
         and Wildlife Service, Bureau of Land Management                                                        
         and Forest Service)............................       --       --       77       79       87       243 
         Establish Everglades sugar assessment..........       35       35       35       35       35       175 
    Department of Justice/Federal Trade Commission:                                                             
      Increase Hart-Scott-Rodino merger filing fees.....       70       70       70       70       70       350 
    Department of Transportation--Coast Guard:                                                                  
      Extend vessel tonnage fees........................       --       62       62       62       62       248 
    Department of the Treasury--Financial Management                                                            
     Service:                                                                                                   
      Establish fee on vendors for cost of payments by                                                          
       paper check......................................       15       10        5        5        5        40 
    Department of Veterans Affairs--Veterans Benefits                                                           
     Administration:                                                                                            
      Conform fees for non-veterans in the home loan                                                            
       program to match Federal Housing Administration                                                          
       fees.............................................       26       26       26       26       27       131 
      Extend provisions that maintain higher loan fees                                                          
       and reduce resale losses on foreclosed properties       --      204      198      197      192       791 
    Federal Deposit Insurance Corporation/Federal                                                               
     Reserve:                                                                                                   
      New examination fees for FDIC-insured banks and                                                           
       bank holding companies:                                                                                  
         Bank Insurance Fund--Collections net of premium                                                        
         reduction......................................       79       82     -161       --       --        -- 
         Federal Reserve--Collections (governmental                                                             
         receipt).......................................       96      100      104      109      114       523 
                                                         -------------------------------------------------------
        Subtotal, new and increased mandatory user fees.      343      804      653      793      803     3,396 
                                                         -------------------------------------------------------
Total, existing user fees reclassified as, or dedicated                                                         
 to, discretionary spending.............................    1,063      903      950      999    1,047     4,962 
                                                         =======================================================
New and increased user fees:                                                                                    
  Federal Aviation Administration fees..................      300    8,734    8,862    9,099    9,342    36,337 
  All other new and increased user fees.................    1,282    2,373    2,279    2,461    2,526    10,921 
                                                         -------------------------------------------------------
    Total, new and increased user fees..................    1,582   11,107   11,141   11,560   11,868    47,258 
----------------------------------------------------------------------------------------------------------------
* $500,000 or less                                                                                              

  Discretionary: The following proposed fees are classified as 
discretionary because the Appropriations Committees are being requested 
to authorize the fees and make them available for expenditure. In two 
cases--VA medical care third party collections and SSA State 
Administrative fees--the fees would be included in authorizing 
legislation but classified as discretionary under the Administration's 
proposed new rule.

                        Department of Agriculture

  Food Safety and Inspection Service.--The 1998 Budget proposes a new 
user fee for USDA's Food Safety and Inspection Service (FSIS). Under the 
proposed fee, the meat, poultry and egg industries would be required to 
reimburse the Federal government for the cost of the salaries and 
benefits and other direct costs for all in-plant inspection. This new 
fee is estimated to generate approximately $390 million in new, annual 
revenues or approximately 70 percent of the current cost of the 
inspection system. Although presented in the budget as discretionary 
offsetting collections requiring Appropriations Committee action, the 
Administration will propose authorizing legislation to authorize the 
fees and, upon enactment, a budget amendment to the current 
appropriations language to make the fees available for expenditure. The 
treatment will be consistent with that proposed for FDA user fees.
  Animal and Plant Health Inspection Service (APHIS).--The budget 
proposes to establish five APHIS fees for certain activities:
     Fees to cover cost of providing animal welfare inspections 
          would be charged to recipients of APHIS services such as 
          animal research centers, humane societies, and kennels.
     Fees to cover cost of issuance of biotechnology 
          certificates would be charged to firms that manufacture 
          biotechnologically-derived products.
     Fees to cover cost of veterinary biologics licensing, 
          inspection, and testing activities of medications would be 
          paid by veterinary biologic companies.
     Fees to cover inspections to ensure that garbage fed to 
          swine is properly cooked to avoid contamination would be 
          charged to establishments regulated under the Swine Health 
          Protection Act.
     Fees would be charged to users to cover the costs of the 
          pink bollworm eradication program.
  Grain Inspection, Packers and Stockyards Administration (GIPSA) 
licensing fees.--GIPSA will pass on to the grain industry the costs to 
develop, review and maintain standards used by the grain industry. In 
addition, an annual licensing fee would be proposed to cover costs 
associated with administration of the Packers and Stockyards Act. In 
1998 only, annual collections would be offset by $3 million in start-up 
costs.

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                      Department of Transportation

  Federal Railroad Administration railroad safety inspection fee.--
Legislation will be proposed to permanently extend the railroad safety 
inspection fees that were enacted in the Omnibus Budget Reconciliation 
Act of 1990. The fee would be expanded to cover hours of service and 
hazardous materials inspections. This fee offsets the costs incurred by 
the Federal Railroad Administration for inspection, enforcement, and 
related activities to ensure the safe operation of passenger and freight 
railroads. The fee expired at the end of 1995.
  Surface Transportation Board fees.--The Administration proposes to 
create a fee mechanism to completely offset the expenses of the Surface 
Transportation Board (STB), the successor to the Interstate Commerce 
Commission (ICC). The fees would be collected from those who benefit 
from the continuation of the ICC functions transferred to the STB, i.e. 
railroads and shippers.

   Department of Veterans Affairs (VA)--Veterans Health Administration

  Extend medical care collections.--The Administration proposes to 
extend three provisions in current law that expire on September 30, 
1998. VA will have the authority to: 1) charge third party insurers for 
service-connected veterans who are treated for their non-service 
connected conditions, 2) charge copayments and per diems for lower-
priority veterans, and 3) extend income verification for first and third 
party payments. These fees are in conjunction with the Administration's 
proposal to allow all medical care collections to be used for medical 
care to improve the health care of veterans. Currently, the mandatory 
collections are deposited in the Treasury's general fund. Under the 
Administration's proposal, these offsetting collections would be 
classified as discretionary and would be available to the extent 
appropriated.

                  Social Security Administration (SSA)

  State administrative fees.--As part of the Supplemental Security 
Income Program (SSI), SSA administers State supplemental payments at the 
State's option. For those states that choose to have SSA administer 
these payments, the Omnibus Budget Reconciliation Act of 1993 put in 
place a per payment fee for SSA's services. These offsetting receipts 
are deposited in the general fund of the Treasury. The current fee is 
$5.00 per month per payment. The Administration proposes to increase the 
$5.00 charge to $6.12 in 1998 and to $7.25 in 1999. The fee would be 
indexed to the CPI thereafter. The additional revenue would be subject 
to appropriation and will be used to help cover SSA's administrative 
costs. Under the Administration's proposed new rule, these offsetting 
collections would be classified as discretionary.

                         Army Corps of Engineers

  Wetlands permit fees.--Legislation will be proposed to increase fees 
for the issuance of wetlands regulatory permits for commercial 
activities. The fees would be deposited in a special Treasury account 
and would be available to be used for the regulatory program to the 
extent provided in appropriations acts.

               Federal Emergency Management Agency (FEMA)

  Radiological emergency preparedness fee.--The budget includes a 
proposal to reauthorize FEMA's assessments on Nuclear Regulatory 
Commission (NRC) licensees to cover 100 percent of the cost of providing 
site-specific services that directly contribute to the fulfillment of 
emergency preparedness requirements needed for NRC licensing. The 
proposal would extend the authority for 1998.

               National Capital Planning Commission (NCPC)

  Washington Geographic Information System fees.--Legislation will be 
proposed to allow the National Capital Planning Commission to charge 
fees to cover the full costs of providing Washington Geographic 
Information System (WGIS) products and services to all interested public 
and private parties beginning in 1998. The WGIS project is a cooperative 
effort in the National Capital Region to capture, display and analyze 
geographically-based data. The fees will be credited as offsetting 
collections to the NCPC discretionary Salaries and Expenses account, and 
remain available until expended.

                   Nuclear Regulatory Commission (NRC)

  Nuclear Regulatory Commission fees.--Under current law, the NRC must 
recover 100 percent of its costs from licensing, inspection and annual 
fees charged to its applicants and licensees through 1998. Unless the 
law is extended, the fee coverage requirement will revert to 33 percent 
of NRC costs. The Administration proposes to extend the fees at 100 
percent of NRC's cost of operations through 2002. The fees are credited 
to the NRC expenditure accounts, and spending of the collections is 
subject to appropriations.

  Governmental receipts dedicated to discretionary spending: The 
following are new or increased fees.

                 Department of Health and Human Services

  Food and Drug Administration (FDA) activities.--The proposal seeks 
$237 million in reauthorized/new fees including continued collection of 
Prescription Drug User Fee Act fees and Mammography Quality Standards 
Act fees, as well as new fees for medical device reviews, animal drug 
approvals, import inspections, food additive petition reviews, generic/
over-the-counter drug applications, and fees for postmarket surveillance 
of products. These fees will be governmental receipts made available in 
appropriations acts to fund discretionary spending under the 
Administration's proposed new rule.

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       Department of Labor--Employment and Training Administration

  Alien labor certification fees.--The proposal would establish a new 
fee, charged to businesses, for processing of alien labor certification 
and attestation applications by the Labor Department. The fee proceeds 
would be used to offset the costs of administering the alien labor 
program. However, in both 1998 and 1999, regular appropriations of $41 
million are required in addition to user fees to work off a large 
backlog of applications already in the pipeline and created primarily by 
appropriations cuts in 1996. These fees will be governmental receipts 
made available in appropriations acts to fund discretionary spending 
under the Administration's proposed new rule.

                      Department of Transportation

  Coast Guard icebreaking fee.--Legislation will be proposed to 
establish a user fee, effective in fiscal year 1999, to recover the 
Coast Guard's costs of providing icebreaking services to commercial 
maritime carriers in the Great Lakes and the Northeast. Fishing and 
recreational vessels would be exempt. The fees are estimated to result 
in collections of approximately $25 million annually. These fees will be 
governmental receipts made available in appropriations acts to fund 
discretionary spending under the Administration's proposed new rule.
  Federal Aviation Administration (FAA) fees.--In 1998, the budget 
proposes to collect $300 million in new aviation user fees that will 
recover from users of FAA's services costs that they do not currently 
pay under the existing system of aviation excise taxes. This proposal is 
an interim measure until comprehensive financial reform, based on the 
work of the White House Commission on Aviation Safety and Security and 
the National Civil Aviation Review Commission, can be achieved over the 
next 18 months. Beginning in 1999, the Budget assumes that the existing 
system of aviation excise taxes will be replaced by cost-based user fees 
which will be available to meet the FAA's needs. Such user fees are an 
important element of the Administration's effort to create a more 
business-like FAA. These fees will be governmental receipts made 
available in appropriations acts to fund discretionary spending under 
the Administration's proposed new rule.

               National Transportation Safety Board (NTSB)

  Accident investigation fees.--To offset a portion of the NTSB's 
growing cost of commercial aviation accident investigations, a new 
aviation accident recovery and investigation fee is proposed. This fee, 
which would be paid by commercial air carriers based on revenue flight 
hours of operation, would collect an estimated $6 million in 1998. These 
fees will be governmental receipts made available in appropriations acts 
to fund discretionary spending under the Administration's proposed new 
rule.

  Existing governmental receipts proposed to fund discretionary 
spending:

                           Department of State

  Immigration, passport, and other fees.--The Budget proposes to 
dedicate existing governmental receipts generated by consular activities 
toward support and improvement of State Department operations.
  Machine readable visa fees.--The Budget proposes to correct the 
classification of existing receipts used to support the State 
Department's border security program. These fees were previously 
classified as offsetting collections; they will now be classified as 
governmental receipts.
  Both of these fees will be governmental receipts made available in 
appropriations acts to fund discretionary spending under the 
Administration's proposed new rule.

  Mandatory: The following new and increased fees are classified as 
mandatory because they will be included in authorizing legislation.

     Department of Agriculture--Agricultural Marketing Service (AMS)

  Marketing order fees.--The Administration proposes to authorize local 
marketing administrators to collect fees to recover AMS' cost of 
administering commodity marketing orders and agreements. Marketing 
orders help stabilize market prices for milk, fruit, and other specialty 
crops by prescribing certain sale, quality, and quantity guidelines. 
Currently, costs at the local level are financed by assessments on 
commodity producers and handlers, while costs of these orders at the 
national level are funded through appropriations. The proposal would 
increase the existing assessments.

           Department of Commerce--Patent and Trademark Office

  Extend surcharge on patent fees.--The budget proposes to extend the 
Patent and Trademark Office's authority to collect the patent surcharge 
fee through 2002. The current authority expires in 1998. The surcharge 
fee is paid entirely by patent applicants and holders.

     Department of Health and Human Services--Health Care Financing 
                             Administration

  Medicare survey and certification fee.--Legislation will be proposed 
to require state survey agencies to impose fees on health care providers 
for initial surveys required as a condition of participation in the 
Medicare program. The proposal will authorize states to collect and 
retain fees from health care providers to cover the cost of the initial 
surveys. The proceeds are automatically available.

[[Page 66]]

                       Department of the Interior

Bureau of Land Management

  Hardrock mining holding fees.-- The proposal would extend beyond 1998, 
the $100 claim maintenance fee and the $25 location fee established in 
the 1993 Omnibus Budget Reconciliation Act. As under current law, the 
fees would also be adjusted annually based on the Consumer Price Index.
  Hardrock mining royalty and Abandoned Hardrock Mine Reclamation 
Fund.-- Legislation will be proposed to charge a 5 percent royalty on 
the net-smelter return from the production of hardrock minerals produced 
on Federal lands. The royalties collected will be deposited into a new 
reclamation fund for the environmental restoration of abandoned mine 
sites on Federal lands.

National Park Service

  Hetch Hetchy Dam rental payments.--Legislation will be proposed to 
raise the annual rental payment for the use of land within Yosemite 
National Park by the City of San Francisco for a dam and reservoir that 
supplies drinking water to the City. Receipts (estimated at $600 
thousand for 1998) would be available, subject to appropriation, for the 
annual operations of Yosemite and other national parks in California.
  Parks and recreation fees.--Legislation will be proposed to authorize 
the National Park Service, Fish and Wildlife Service, Bureau of Land 
Management, and Forest Service to collect additional admission, 
recreation, and commercial user fees. New receipts will remain available 
for improvements to facilities and services. This authority would take 
effect when the existing demonstration fee authority expires at the end 
of 1999.
   Everglades sugar assessment.--Legislation will be proposed to 
establish a marketing assessment of one cent per pound on processed cane 
sugar produced in Florida's Everglades Agricultural Area. Receipts will 
remain available for land acquisition and other activities contributing 
to Everglades restoration.

          Department of Justice/Federal Trade Commission (FTC)

  Merger filing fees.--The Administration proposes authorizing 
legislation to restructure the Hart-Scott-Rodino fee, which is charged 
to acquiring firms in mergers. The fee partially funds both the Federal 
Trade Commission and the Justice Department's Antitrust Division, 
subject to appropriation.

                Department of Transportation--Coast Guard

  Vessel tonnage fees.--The budget proposes to extend fees collected by 
the Customs Service based on the cargo-carrying capacity of a vessel 
entering a U.S. port. These fees were set to expire at the end of 1998. 
The collections are credited to the Department of Transportation to 
offset costs incurred by the Coast Guard for services provided to the 
Merchant Marine industry.

        Department of the Treasury--Financial Management Service

  Charge to vendors for payment by paper check.--The Administration 
proposes to authorize the Department of the Treasury to charge for the 
cost of payments to vendors by paper check. Paper checks are costly to 
print, mail and replace when lost or stolen. The Federal Government 
makes over 25 million check payments to vendors annually, or over 80 
percent of all payments made for goods and services. The Debt Collection 
Improvement Act of 1996 mandates phase-in of electronic payments for all 
Federal payments by 1999, with the exception of tax refunds. This 
proposal institutes a fee of $1.00 for the cost of providing the service 
to vendors as determined in regulation by the Secretary of the Treasury. 
Electronic payment through commercial electronic funds transfer/direct 
deposit or through the use of payment cards is cheaper, faster, and more 
secure than payments by paper checks and will involve no charge to the 
vendor.

    Department of Veterans Affairs--Veterans Benefits Administration

  Fees for non-veterans in the home loan program.--When VA takes 
possession of properties resulting from defaulted loans, the homes are 
ultimately sold to the general public. VA finances these properties 
through its vendee loan program. The Administration proposes to raise 
the up-front fees charged on these loans to 2.25 percent--the same level 
that is charged on Federal Housing Administration loans.
  Extend expiring home loan provisions.--The Administration proposes to 
permanently extend three provisions in current law that expire September 
30, 1998. VA charges borrowers using VA's home loan guaranty program a 
two percent fee instead of 1.25 percent, 2) charges veterans who use the 
loan guaranty benefit more than once a funding fee of 3 percent to 
reduce losses, and 3) include expected resale losses when determining 
whether to acquire a foreclosed property or pay the guaranty.

 Federal Deposit Insurance Corporation (FDIC) and Federal Reserve (Fed)

  State bank examination fee.--The Administration proposes to require 
the FDIC and the Federal Reserve to assess fees for examinations of 
FDIC-insured banks and bank holding companies. The costs of such 
examinations are currently funded from deposit insurance premiums and 
Fed earnings from monetary policy activities. The FDIC fee proceeds 
would be used to finance the examination operation. The Fed proceeds 
would be transferred to Treasury annually in the form of surplus 
earnings.

                           OFFSETTING RECEIPTS

  Table 4-3 itemizes all offsetting collections deposited in receipt 
accounts. These include payments from one part of the Government to 
another, called intra governmental transactions, and collections from 
the public. 

[[Page 67]]

These receipts are offset (deducted) from outlays in the 
Federal budget. In total, offsetting receipts are estimated at $368.6 
billion in 1998.

                                     

                                     Table 4-3. OFFSETTING RECEIPTS BY TYPE                                     
                                            (In millions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                                                                 1996        1997        1998   
                                   Source                                       actual     estimate    estimate 
----------------------------------------------------------------------------------------------------------------
                       INTRAGOVERNMENTAL TRANSACTIONS                                                           
On-budget receipts:                                                                                             
  Federal intrafund transactions:                                                                               
    Distributed by agency:                                                                                      
      Interest from the Federal Financing Bank..............................       6,458       4,351       3,958
      Interest on Government capital in enterprises.........................       1,815       1,442       1,581
        Proposed Legislation (non-PAYGO)....................................  ..........         157  ..........
      Other.................................................................       1,257       1,351       1,430
                                                                             -----------------------------------
      Total Federal intrafunds..............................................       9,530       7,301       6,969
                                                                             -----------------------------------
  Trust intrafund transactions:                                                                                 
    Distributed by agency:                                                                                      
      Payments to railroad retirement.......................................       3,556       3,817       3,887
      Other.................................................................           1           1           1
                                                                             -----------------------------------
      Total trust intrafunds................................................       3,557       3,818       3,888
                                                                             -----------------------------------
    Total intrafund transactions............................................      13,087      11,119      10,857
                                                                             -----------------------------------
  Interfund transactions:                                                                                       
    Distributed by agency:                                                                                      
      Federal fund payments to trust funds:                                                                     
        Contributions to insurance programs:                                                                    
          Military retirement fund..........................................      10,699      15,151      15,833
          Supplementary medical insurance...................................      61,702      59,354      63,416
            Proposed Legislation (non-PAYGO)................................  ..........  ..........      14,668
          Hospital insurance................................................       4,623       4,833       4,572
          Railroad social security equivalent fund..........................          46          60          61
          Rail industry pension fund........................................         181         186         195
          Civilian supplementary retirement contributions...................      20,382      21,215      21,587
            Proposed Legislation (non-PAYGO)................................  ..........  ..........         -23
          Unemployment insurance............................................         438         612         604
          Other contributions...............................................         528         440         377
          Miscellaneous payments............................................         464         725         712
                                                                             -----------------------------------
        Subtotal............................................................      99,063     102,576     122,002
                                                                             -----------------------------------
      Trust fund payments to Federal funds:                                                                     
        Quinquennial adjustment for military service credits................         332  ..........  ..........
        Other...............................................................       3,380       1,013       1,035
          Proposed Legislation (non-PAYGO)..................................  ..........  ..........          53
                                                                             -----------------------------------
        Subtotal............................................................       3,712       1,013       1,088
                                                                             -----------------------------------
      Total interfunds distributed by agency................................     102,775     103,589     123,090
                                                                             -----------------------------------
    Undistributed by agency:                                                                                    
      Employer share, employee retirement (on-budget) \1\:                                                      
        Civil service retirement and disability insurance...................       7,880       8,187       8,413
          Proposed Legislation (non-PAYGO)..................................  ..........  ..........         621
        CSRDI from Postal Service...........................................       5,712       5,916       6,103
        Hospital insurance (contribution as employer) \2\ ..................       1,860       1,875       2,007
        Postal employer contributions to FHI................................         522         595         618
        Military retirement fund............................................      11,174      11,180      10,544
        Other Federal employees retirement..................................         111         116         122
                                                                             -----------------------------------
        Total employer share, employee retirement (on-budget)...............      27,259      27,869      28,428
                                                                             -----------------------------------
        Interest received by on-budget trust funds..........................      60,869      62,812      63,002
          Proposed Legislation (non-PAYGO)..................................  ..........  ..........         744
                                                                             -----------------------------------

[[Page 68]]

      Total interfund transactions undistributed by agency..................      88,128      90,681      92,174
                                                                             -----------------------------------
    Total interfund transactions............................................     190,903     194,270     215,264
                                                                             -----------------------------------
  Total on-budget intragovernmental receipts................................     203,990     205,389     226,121
                                                                             -----------------------------------
Off-budget receipts:                                                                                            
  Interfund transactions:                                                                                       
    Distributed by agency:                                                                                      
      Federal fund payments to trust funds:                                                                     
        Old-age, survivors, and disability insurance........................       6,133       6,927       7,616
    Undistributed by agency:                                                                                    
        Employer share, employee retirement (off-budget)....................       6,278       6,505       7,028
        Interest received by off-budget trust funds.........................      36,507      41,238      45,199
                                                                             -----------------------------------
  Total off-budget intragovernmental receipts:..............................      48,918      54,670      59,843
                                                                             -----------------------------------
Total intragovernmental transactions........................................     252,908     260,059     285,964
                                                                             ===================================
                    PROPRIETARY RECEIPTS FROM THE PUBLIC                                                        
Distributed by agency:                                                                                          
  Interest:                                                                                                     
    Interest on foreign loans and deferred foreign collections..............         747         711         647
    Interest on deposits in tax and loan accounts...........................         757         736         750
    Other interest (domestic--civil) \3\ ...................................       3,430       4,795       6,153
                                                                             -----------------------------------
    Total interest..........................................................       4,934       6,242       7,550
                                                                             -----------------------------------
  Royalties and rents.......................................................       1,062       1,231       1,299
    Proposed Legislation (PAYGO)............................................  ..........  ..........           1
                                                                             -----------------------------------
  Sale of products:                                                                                             
    Sale of timber and other natural land products..........................         567         573         517
      Proposed Legislation (PAYGO)..........................................  ..........  ..........         -67
    Sale of minerals and mineral products...................................         530         706         289
    Sale of power and other utilities.......................................         832         840         840
    Other...................................................................          48          39          40
                                                                             -----------------------------------
    Total sale of products..................................................       1,977       2,158       1,619
                                                                             -----------------------------------
  Fees and other charges for services and special benefits:                                                     
    Medicare premiums and other charges (trust funds).......................      20,038      20,293      21,983
      Proposed Legislation (PAYGO)..........................................  ..........  ..........        -211
    Nuclear waste disposal revenues.........................................         634         649         655
    Veterans life insurance (trust funds)...................................         236         256         216
    Other \3\ ..............................................................       2,004       2,162       2,072
      Proposed Legislation (non-PAYGO)......................................  ..........  ..........         455
      Proposed Legislation (PAYGO)..........................................  ..........  ..........        -365
                                                                             -----------------------------------
    Total fees and other charges............................................      22,912      23,360      24,805
                                                                             -----------------------------------
  Sale of Government property:                                                                                  
    Sale of land and other real property....................................         106          92         104
    Military assistance program sales (trust funds).........................      14,747      13,760      13,400
    Other...................................................................           6          26          16
                                                                             -----------------------------------
    Total sale of Government property.......................................      14,859      13,878      13,520
                                                                             -----------------------------------
  Realization upon loans and investments:                                                                       
    Foreign military credit sales...........................................         661         637         535
    Negative subsidies and downward reestimates.............................       1,756       2,166       1,881
      Proposed Legislation (non-PAYGO)......................................  ..........  ..........          52
      Proposed Legislation (PAYGO)..........................................  ..........  ..........       1,035
    Repayment of loans to United Kingdom....................................         106         108         110
    Other...................................................................         158         137         142
                                                                             -----------------------------------
    Total realization upon loans and investments............................       2,681       3,048       3,755
                                                                             -----------------------------------
  Recoveries and refunds \3\ ...............................................       2,059       2,958       3,261
    Proposed Legislation (non-PAYGO)........................................  ..........  ..........         176

[[Page 69]]

    Proposed Legislation (PAYGO)............................................  ..........  ..........         555
  Miscellaneous receipt accounts \3\ .......................................       1,633       1,688       1,682
    Proposed Legislation (PAYGO)............................................  ..........  ..........          67
                                                                             -----------------------------------
  Total proprietary receipts from the public distributed by agency..........      52,117      54,563      58,290
                                                                             -----------------------------------
Undistributed by agency:                                                                                        
  Other interest: Interest received from Outer Continental Shelf escrow                                         
   account..................................................................           1  ..........       1,142
  Rents and royalties on the Outer Continental Shelf:                                                           
    Rents and bonuses.......................................................         691         778       1,095
    Royalties...............................................................       3,050       3,374       3,280
  Sale of major assets......................................................  ..........  ..........       4,300
                                                                             -----------------------------------
  Total proprietary receipts from the public undistributed by agency........       3,742       4,152       9,817
                                                                             -----------------------------------
Total proprietary receipts from the public \4\ .............................      55,859      58,715      68,107
                                                                             ===================================
                      OFFSETTING GOVERNMENTAL RECEIPTS                                                          
Distributed by agency:                                                                                          
  Regulatory fees...........................................................       2,730       2,821       2,872
    Proposed Legislation (non-PAYGO)........................................  ..........  ..........          67
    Proposed Legislation (PAYGO)............................................  ..........  ..........          70
  Other.....................................................................          77          70          67
Undistributed by agency:                                                                                        
  Spectrum auction proceeds.................................................         342       7,961       9,359
    Proposed Legislation (PAYGO)............................................  ..........  ..........       2,100
                                                                             -----------------------------------
  Total offsetting governmental receipts....................................       3,149      10,852      14,535
                                                                             ===================================
Total offsetting receipts...................................................     311,916     329,626     368,606
----------------------------------------------------------------------------------------------------------------
\1\ Includes provision for covered Federal civilian employees and military personnel.                           
\2\ Interchange receipts between the social security and railroad retirement funds place the social security    
  funds in the same position they would have been if there were no separate railroad retirement system.         
\3\ Includes both Federal funds and trust funds.                                                                
\4\ Consists of:                                                                                                


                                                                                                                
                                                                    1996       1997       1998                  
                                                                   actual    estimate   estimate                
                                                                                                                
  On-budget:                                                                                                    
    Federal funds..............................................     19,678     23,325     31,698                
    Trust funds................................................     36,164     35,371     36,390                
  Off-budget:                                                                                                   
    Trust funds................................................         17         19         19