[Analytical Perspectives]
[Other Technical Presentations]
[17. Trust Funds and Federal Funds]
[From the U.S. Government Publishing Office, www.gpo.gov]


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                      OTHER TECHNICAL PRESENTATIONS

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                   17.  TRUST FUNDS AND FEDERAL FUNDS

   The budget consists of two major groups of funds: Federal funds and 
trust funds. This section presents summary information about the 
transactions of each fund group and of the major trust funds. It also 
discusses the relationship between the trust funds surplus and the 
Federal deficit, and the meaning of the large and growing trust funds 
balance. Information about the income and outgo of four Federal funds 
that are financed by earmarked collections similar to trust funds is 
also provided.

                           Federal Funds Group

   The Federal funds group comprises the larger part of the budget. It 
includes all transactions not classified by law as being in trust funds.
   The main financing component of the Federal funds group is the 
general fund, which is used to carry out the general purposes of 
Government rather than being restricted by law to a specific program. It 
consists of all collections not earmarked by law to finance other funds, 
including virtually all income taxes and many excise taxes, and all 
expenditures financed by these collections and by general Treasury 
borrowing.
   The Federal funds group also includes special funds and revolving 
funds, which are similar to trust funds in that their spending is 
financed by earmarked collections. Where the law requires that Federal 
fund collections from a specified source be earmarked to finance a 
particular program, such as the license fees deposited into the land and 
water conservation fund, the collections and associated disbursements 
are recorded in special fund receipt and expenditure accounts. The 
majority of special fund collections are derived from the Government's 
power to impose taxes, fines, and other compulsory payments, and they 
must be appropriated before they can be obligated and spent.
   Revolving funds conduct continuing cycles of business-like activity. 
They charge for the sale of products or services and use the proceeds to 
finance their spending. Instead of being deposited in receipt accounts, 
their proceeds are recorded as offsets to outlays within the funds' 
expenditure accounts, so that outlays are reported net of collections. 
These collections generally are available automatically for obligation 
and making payments. There are two classes of revolving funds. Public 
enterprise funds, such as the Postal Service Fund, conduct business-like 
operations mainly with the public. Intragovernmental funds, such as the 
Federal Buildings Fund, conduct business-like operations mainly within 
and between Government agencies.

                            Trust Funds Group

   The trust funds group consists of funds that are designated by law as 
trust funds. They are usually financed by earmarked collections. Many of 
the larger trust funds finance social insurance payments for 
individuals, such as Social Security, Medicare, and unemployment 
compensation. Other major trust funds finance military and Federal 
civilian employees' retirement, highway construction, and airport and 
airway development. Trust funds also include a few small funds 
established to carry out the terms of a conditional gift, bequest, or 
court settlement.
   Whether a particular fund is designated as a trust fund is, in many 
cases, arbitrary. Congress has not followed a systematic rule. For 
example, the National Service Life Insurance Fund is a trust fund, but 
the Servicemen's Group Life Insurance Fund is a Federal fund, even 
though both are financed by earmarked fees paid by veterans and both 
provide life insurance benefits to veterans. \1\
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  \1\ Another example is the Violent Crime Reduction Trust Fund, 
established pursuant to the Violent Crime Control and Law Enforcement 
Act of 1994. Because the Fund is substantively a means of accounting for 
general fund appropriations, and does not consist of dedicated receipts, 
it is classified as a Federal fund rather than a trust fund.
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   The Federal budget meaning of the term ``trust'' differs 
significantly from its private sector usage. The beneficiary of a 
private trust owns the trust's income and often its assets. A custodian 
manages the assets on behalf of the beneficiary according to the 
stipulations of the trust, which he cannot change unilaterally. In 
contrast, the Federal Government owns the assets and earnings of most 
Federal trust funds, and it can raise or lower future trust fund 
collections and payments, or change the purpose for which the 
collections are used, by changing existing law. Only a few small Federal 
trust funds are managed pursuant to a trust agreement where the 
Government is the trustee, and the Government generally has some ability 
to determine the amount deposited into or paid out of these funds. Other 
amounts are held in deposit funds by the Government as a custodian on 
behalf of some entity outside the Government. The Government makes no 
decisions about the amount of these deposits or how they are spent. 
Therefore, they are not considered to be Federal trust funds and are 
excluded from the budget.
   A trust fund must use its income for the purposes designated by law. 
Some, such as the Federal Employees Health Benefits fund, spend their 
income almost as quickly as it is collected. Others, such as the Social 
Security and the Federal civilian employees retirement trust funds, 
currently spend considerably less than they collect each year. A surplus 
of income over outgo adds to the trust fund's balance, which is 
available to finance future expenditures. The balances are generally 
invested, by law, in Treasury debt securities. Any net cash inflow from 
the public to the trust funds decreases 


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the Treasury's need to borrow from the public in order to finance the Federal funds deficit.
   A trust fund normally consists of one or more receipt accounts (to 
record income) and an expenditure account (to record outgo). However, a 
few trust funds are established by law as revolving funds. These funds 
are similar to revolving funds in the Federal funds group. They conduct 
a cycle of business-type operations, and their outlays are displayed net 
of collections in a single expenditure account.

                     Income and Outgo by Fund Group

   Table 17-1 shows income, outgo, and surplus or deficit by fund group 
and adds them to derive the total unified budget receipts, outlays, and 
surplus or deficit. The estimates assume enactment of the President's 
budget proposals. Income consists mostly of governmental receipts 
(primarily income, payroll, and excise taxes). It also includes 
proprietary receipts (derived from business-like transactions with the 
public) and interfund collections (receipts by one fund of payments from 
a fund in the other fund group) that are deposited in receipt accounts. 
Outgo consists of payments made to the public and/or to a fund in the 
other fund group.
   Two types of transactions are treated specially. First, income and 
outgo for a fund group exclude transactions between funds within the 
same fund group. \2\ These intrafund transactions constitute outgo and 
income for the individual funds that make and collect the payments. 
However, because the totals for each fund group measure its transactions 
with the public and the other fund group, intrafund transactions must be 
subtracted from the sum of the income and outgo of all individual funds 
within the fund group to calculate income and outgo for the fund group 
as a whole. Second, income excludes collections that, by law, are offset 
against outgo in expenditure accounts instead of being deposited in 
receipt accounts. \3\ It would be conceptually appropriate to classify 
these collections as income, but at present the data are not tabulated 
centrally for both fund groups. Consequently, they are offset against 
outgo in Table 17-1 and are not shown separately.
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  \2\ For example, the railroad retirement trust funds pay the 
equivalent of social security benefits to railroad retirees, in addition 
to the regular railroad pension. These benefits are financed by a 
payment from the Federal Old-Age and Survivors Insurance Trust fund to 
the railroad retirement trust funds. The payment and collection are 
deducted so that total trust fund income and outgo measure disbursements 
to the public and to Federal funds.
  \3\ For example, postage stamp fees are deposited as offsetting 
collections in the Postal Service fund. As a result, the Fund's outgo is 
disbursements net of collections.
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   Some funds in the Federal funds group and some trust funds are 
authorized to borrow from the general fund of the Treasury. \4\ Borrowed 
funds are not recorded as receipts and are excluded from the income of 
the fund. The borrowed funds finance outlays by the fund in excess of 
available receipts. Subsequently, fund receipts are transferred from the 
fund to the general fund in repayment of the borrowing. The repayment is 
not recorded as an outlay of the fund or included in fund outgo. Prior 
to this budget, trust fund borrowing was included in Federal fund outgo 
(as a payment from the general fund) and trust fund income, and the 
repayments were included in trust fund outgo and Federal fund income (as 
a general fund receipt). The treatment of trust fund borrowing and 
repayment has been revised to make it parallel to the treatment of 
borrowing by Federal fund accounts from the general fund, borrowing by 
the general fund from Government accounts (including trust funds), and 
borrowing by the Government from the public.
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  \4\ For example, the Bonneville Power Administration Fund, a revolving 
fund in the Department of Energy, is authorized to borrow from the 
general fund, and the Black Lung Disability Trust Fund in the Department 
of Labor is authorized to receive appropriations of repayable advances 
from the general fund (a form of borrowing).
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   In order to derive unified budget receipts and outlays, Table 17-1 
adds Federal funds and trust funds income and outgo, respectively, and 
subtracts offsetting receipts from each. Offsetting receipts are income 
for the fund group that receives them, but instead of being part of 
receipts in the unified budget, they are deposited in receipt accounts 
and are offset against outgo to calculate unified budget outlays. The 
reason for this is twofold.
     Offsetting receipts from the public.--Unified budget 
          receipts measure the amount of collections raised by the 
          Government in its sovereign capacity, and unified budget 
          outlays measure the amount of resources allocated by the 
          Government in a non-market capacity. These are calculated by 
          subtracting voluntary business-like collections from the 
          public from the income and outgo of the fund groups, 
          respectively.
     Offsetting receipts from other fund groups.--Unified budget 
          receipts and outlays measure the Government's net transactions 
          with the public. These are calculated by subtracting interfund 
          receipts from income and outgo.

                                     

                      Table 17-1.  RECEIPTS, OUTLAYS, AND SURPLUS OR DEFICIT BY FUND GROUP                      
                                            (In billions of dollars)                                            
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                                                                            Estimate                            
                                        1996   -----------------------------------------------------------------
                                      actual       1997       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
Receipts:                                                                                                       
  Federal funds cash income:                                                                                    
    From the public................     936.2      971.3    1,018.8    1,060.3    1,116.9    1,173.2    1,251.4 
    From trust funds...............       3.7        1.0        1.1        1.1        1.1        1.7        1.2 
                                    ----------------------------------------------------------------------------
        Total, Federal funds cash                                                                               
         income....................     940.0      972.3    1,019.9    1,061.4    1,118.0    1,174.9    1,252.5 
  Trust funds cash income:                                                                                      
    From the public................     575.8      603.7      630.7      653.3      684.3      714.9      749.0 
    From Federal funds:                                                                                         
      Interest.....................      99.2      105.9      110.8      113.8      118.6      123.7      129.0 
      Other........................     136.9      142.0      163.2      174.3      183.8      195.7      209.7 
                                    ----------------------------------------------------------------------------
        Total, trust funds cash                                                                                 
         income....................     811.9      851.6      904.7      941.4      986.7    1,034.3    1,087.7 
  Offsetting receipts..............    -298.8     -318.5     -357.7     -359.5     -377.4     -400.9     -443.5 
                                    ----------------------------------------------------------------------------
    Total, unified budget receipts.   1,453.1    1,505.4    1,566.8    1,643.3    1,727.3    1,808.3    1,896.7 
Outlays:                                                                                                        
  Federal funds cash outgo.........   1,161.9    1,214.5    1,274.5    1,317.2    1,355.0    1,365.3    1,397.7 
  Trust funds cash outgo...........     697.3      735.0      770.8      803.0      836.9      880.1      925.5 
  Offsetting receipts..............    -298.8     -318.5     -357.7     -359.5     -377.4     -400.9     -443.5 
                                    ----------------------------------------------------------------------------
     Total, unified budget outlays.   1,560.3    1,631.0    1,687.5    1,760.7    1,814.4    1,844.5    1,879.7 
Surplus or deficit (-):                                                                                         
  Federal funds....................    -221.9     -242.2     -254.5     -255.8     -237.0     -190.3     -145.2 
  Trust funds......................     114.7      116.7      133.9      138.4      149.9      154.2      162.2 
                                    ----------------------------------------------------------------------------
    Total, unified surplus/deficit                                                                              
     (-)...........................    -107.3     -125.6     -120.6     -117.4      -87.1      -36.1       17.0 
----------------------------------------------------------------------------------------------------------------
Note: Receipts includes governmental, interfund, and proprietary receipts. Excludes intrafund receipts, which   
  are offset against intrafund payments so that cash income and cash outgo are not overstated.                  

     Which Fund Group is Responsible for the Unified Budget Deficit?

   In 1996, trust fund income exceeded outgo by $115 billion. This 
surplus partially offset the need for the Government to borrow from the 
public to finance the $222 billion Federal funds deficit. The sum of the 
trust fund surplus and the Federal fund deficit equals the unified 
deficit, which was $107 billion. This pattern has persisted for the past 
3\1/2\ decades. As shown in Table 17-1, it is expected to continue, 
although the President's proposal to balance the unified budget by 2002 
would sharply cut the Federal funds deficit.

   The combination of large and growing trust fund surpluses and even 
larger Federal fund deficits, has led to claims and counterclaims about 
the causes of the unified deficit, and by implication, which part of the 
budget should be the focus of deficit-reduction efforts. The two main 
views are illustrated by the contrary positions expressed in reports 
issued by two Congressional branch agencies--the Congressional Research 
Service (CRS) and the General Accounting Office (GAO).

      CRS: ``The treatment of trust fund programs in the Federal budget 
       is complicated and confusing. As a result, the impact of these 
       programs on the financial condition of the Government is often 
    misunderstood. Perhaps the biggest misconcep-


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tion today is that these 
      programs are offsetting the Federal deficit by $124 billion and 
    thereby masking the true size of the deficit. Although attention has 
       been drawn to the large social security surpluses, trust fund 
    programs overall actually have been running cash deficits . . . . On 
         the whole, trust fund programs ran deficits in their cash 
       transactions with the public in 19 of the last 21 years.'' \5\
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  \5\ Congressional Research Service, Trust Funds and the Federal 
Deficit, February 26, 1990, summary.

           GAO: ``As the unified budget is presently structured, the 
    surpluses in the trust funds are merged with the rest of the budget, 
    effectively masking the magnitude of those surpluses and the size of 
    the deficit in the rest of the government . . . . Because the trust 
    fund surpluses--especially those in Social Security--are growing so 
        rapidly, the merger of trust and nontrust funds creates the 
         erroneous impression that the deficit is under control and 
    declining. In reality, the nontrust fund deficit has grown from $222 
     billion in 1987 to $255 billion in 1988 and is projected to reach 
      $283 billion or more in 1989. The fact is that increased payroll 
      taxes, levied to meet the long-term needs of the Social Security 
    system, are being used to finance the current operating costs of the 
                              government.'' \6\
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  \6\ General Accounting Office, Managing The Cost Of The Government, 
October 1989, p. 9.

   The critical difference between these views concerns the relevance of 
transactions between the two fund groups. These interfund transactions 
consist mostly of Federal fund payments to trust funds. They affect the 
bottom line of each fund group. For example, Treasury interest payments 
to the Social Security trust funds add to the Federal fund deficit, and 
the interest earnings add to the trust fund surplus. The CRS analysis 
excludes such payments because they are offset in the unified budget by 
an equal amount of collections, and together they have no net impact on 
the unified deficit. In contrast, GAO's analysis includes interfund 
transactions because they allocate the cost of Federal activities to the 
fund group that gives rise to the cost.
   Because these views are representative of much of the debate over the 
responsibility for the unified deficit, they are discussed in greater 
detail below. However, neither is satisfactory for every purpose, and an 
alternative explanation is offered.

   The Record Based on Transactions With the Public.--The unified 
deficit measures the Federal Government's net transactions with the 
public. It can be reduced only by increasing receipts from the public or 
by decreasing payments to the public. This is true whether the 
transactions with the public are by trust funds or by Federal funds. It 
can be said, therefore, that a fund group contributes to lower deficits 
if it collects more from the public than it pays to the public, and that 
it contributes to higher deficits if it pays more to the public than it 
collects from the public.
   Measured on this basis, both fund groups are responsible for the 
unified deficit. As shown in Chart 17-1, payments to the public by both 
fund groups exceeded their income from the public in most years from 
1960 to 1996. Trust funds were in deficit in 33 of the 37 years, and 
Federal funds were in deficit 33 years. Trust funds were responsible for 
$1.3 trillion of the cumu-


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lative unified deficits over the period, and Federal funds were responsible for the other $2.2 trillion. Under the President's proposal to balance the budget by 2002, the trust funds deficit in its transactions with the public would increase each year. In contrast, Federal fund transactions with the public achieved a surplus in 1996, the first time in 22 years. This Federal funds surplus is estimated to grow to $64 billion by 2000.



   It may be surprising that trust funds are adding to the unified 
deficit when they are simultaneously reporting large surpluses and 
balances in their total transactions. The experience varies among the 
individual trust funds. Consider the transactions of the public with the 
following eight major trust funds. Together, they ran a $115 billion 
surplus in 1996--100 percent of the total trust fund surplus--and held 
$1.3 trillion of balances--94 percent of the balance for all trust funds 
combined. Nevertheless, from 1960 to 1996, the combined payments to the 
public by these trust funds exceeded their combined income from the 
public by $1 trillion. (The status of fund tables in the Budget Appendix 
and in Table 3 of this chapter, unlike this discussion, which only 
considers transactions with the public, reflect all of the trust funds' 
transactions, including interest and other interfund collections.)
     The Highway Trust Fund is financed entirely by earmarked 
          taxes on gasoline and other fuels and by interest earnings. 
          Tax receipts exceeded the Fund's spending in more than half 
          the years between 1960 and 1996. These surpluses were invested 
          in Treasury securities, and together with the interest 
          earnings, were used to finance spending in other years when 
          spending exceeded tax collections. The current $22 billion 
          balance is enough to fund about one year's spending.
     The two Social Security Trust Funds, Federal Old-Age and 
          Survivors Insurance and Federal Disability Insurance, are 
          financed primarily by payroll taxes. However they also receive 
          additional income from the general fund in the form of 
          interest earnings, Federal agencies' payments as employers for 
          the social security benefits earned by military and Federal 
          civilian employees, and Treasury payments for part of the 
          estimated amount of income taxes paid on social security 
          benefits. In 19 of the 26 years from 1960 through 1985, social 
          security payments to the public exceeded payroll taxes. The 
          Funds' cumulative payments to the public exceeded their 
          cumulative collections from the public by $2 billion through 
          1978, and rose to $60 billion in 1985. \7\ Largely due to the 
          Greenspan Commission reforms, in 1986 social security began to 
          run a surplus in its transactions with the public. In 1990 
          social secur-

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          ity taxes exceeded payments to the public by $36 
          billion. Since then, social security taxes have continued to 
          exceed payments to the public, but only by about half that 
          amount each year.
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  \7\ If balances of net transactions with the public are credited with 
a prorated share of the Funds' interest earnings, the adjusted 
cumulative balance would still have turned negative, but not until 1984, 
and it would have remained negative until 1988.
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     The Hospital Insurance (HI) Trust Fund (Medicare Part A) 
          had a balance of $125 billion as of the end of 1996. This 
          reflects interest and other interfund collections as well as 
          collections from the public. However, when considering only 
          payroll tax income, benefit payments, and other outlays to the 
          public, it has run a deficit in these transactions with the 
          public in 19 of 31 years since 1966.
     The Supplementary Medical Insurance (SMI) Trust Fund 
          (Medicare Part B) is funded by premiums charged to enrollees, 
          general fund subsidies, and interest payments. Premiums 
          currently cover about one-quarter of SMI's expenditures with 
          the remainder financed by interfund collections. These shares 
          have changed significantly since SMI's early years of 
          operation, beginning in 1967. In its first seven years, 
          premiums covered half of the expenses. This share fell 
          throughout the next decade, and by the early 1980s premiums 
          covered only 22 percent of expenses. SMI's total balance, 
          including interfund collections, stood at $27 billion at the 
          end of 1996. However, its cumulative payments to the public 
          exceeded its income from the public by $487 billion.

            The 1998 Budget proposes reforming Medicare by slowing the 
          growth in provider payments and making Medicare more efficient 
          and responsive to beneficiaries' needs. Additional information 
          on Supplementary Medical Insurance and Hospital Insurance 
          reforms can be found in Section V of the Budget Volume, 
          ``Creating Opportunity, Demanding Responsibility, and 
          Strengthening Community.''
     The Unemployment (UI) Trust Fund is funded primarily by 
          taxes on employers. It also has interfund interest earnings, 
          and it has been supplemented by large transfers from the 
          general fund during periods of high and extended unemployment. 
          Since 1960 UI has run deficits in its transactions with the 
          public in 17 years. At the end of 1996 its total balance, 
          including those due to interfund collections, was $54 billion. 
          However, this balance was essentially due to interfund 
          collections. Since 1960, UI's cumulative payments to the 
          public have exceeded its income from the public by $32 
          billion.
     The Civil Service Retirement and Disability (CSRD) Trust 
          Fund, which comprises almost all of the Federal Civilian 
          Employees Retirement Funds shown in Table 17-3, is financed by 
          Federal civilian employees' contributions, agencies' 
          contributions on behalf of the employees, general fund 
          payments that limit the growth in the unfunded liability, and 
          interest earnings. In 1996, employee contributions were 
          approximately 7 percent of total income to the Fund. Interfund 
          collections made up the rest. CSRD has run a surplus in each 
          year since 1960, and its balance has increased from $10 
          billion in 1960 to $393 billion in 1996. Because the Fund is 
          intended to be funded mostly by payments from the Government 
          as an employer, the buildup in balances is due to interfund 
          payments. From 1960 through 1996, CSRD payments to the public 
          exceeded its income from the public by $443 billion. The 
          budget proposes to increase interfund payments to the CSRD 
          Trust Fund by requiring agencies to contribute 1.51 percent 
          more of base pay for Civil Service Retirement System employees 
          for 1988-2002. The Budget also proposes to delay for three 
          months the cost-of-living adjustment for civilian retirees and 
          their survivors beginning in 1998 and continuing through 2002. 
          In addition, the Budget proposes to increase employee 
          contributions to the Civil Service and Federal Employees 
          Retirement Systems beginning on January 1, 1999 and continuing 
          through December 31, 2002. See Chapter 24 of Section VI of the 
          Budget for more information on the President's proposals that 
          affect civilian retirement.
     The Military Retirement Fund is financed entirely by 
          payments by the Department of Defense on behalf of military 
          employees, general fund payments for the unfunded liability 
          existent when the Fund was created, and interest earnings. 
          Since its inception in 1985, the Fund has run a surplus each 
          year, and it had a $131 billion balance at the end of 1996. 
          Because the fund receives no income from the public, the 
          annual surpluses and the current balance are due totally to 
          interfund payments. Over the same period, the Fund paid $253 
          billion of benefits to the public.

   The Record if Interfund Transactions are Included.--Transactions with 
the public are not the only basis--and for some purposes may not be the 
best--for identifying the source of the unified budget deficit. Most 
interfund payments allocate the cost of Federal activities to the fund 
group that is responsible for the cost, and most interfund collections 
are valid reimbursements for the assumption of a cost by the fund that 
receives the collection. Including these interfund transactions, 
therefore, may provide a more reasonable measure of the contribution of 
each fund group to the overall deficit.
   The bulk of interfund transactions are Federal fund payments to trust 
funds. In 1996, Federal funds paid $232 billion to trust funds, net of 
collections from trust funds. Almost 85 percent of these were payments 
by the Government as an employer to various retirement trust funds, 
interest on general fund borrowing of trust fund balances, and the 
general fund payment to SMI.
   Payments by the Government as an employer to Federal employees 
retirement trust funds allow the total cost of employee compensation to 
be charged to the Federal fund programs that employ Federal workers, or 
to the general fund. These benefits do not show 


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up as payments to the public for many years, and the eventual payments are recorded as trust fund outlays. But since the eventual payments result from commitments made in the course of carrying out past Federal fund activities, their impact on the unified deficit could be attributed to the Federal funds 
group. The interfund payments made for these purposes are a partial measure of the amount that could reasonably be attributed to Federal funds. In 1996, interfund payments for military and Federal civilian employee retirement were $56 billion.
   Interest payments by the general fund on trust fund investments in 
Treasury debt appropriately recognize the time value of money to both 
the borrower and the lender. By law, trust fund balances are invested in 
Treasury securities, and the interest payments and collections are 
recorded as interfund transactions--increasing the trust funds surplus 
and the Federal funds deficit. This is efficient from the standpoint of 
cash management, and it is an effective method of recognizing the time 
value of money without forcing trust funds to invest in private 
securities, which are riskier and would raise the specter of direct 
Federal control over vast amounts of private resources. However, if 
permitted by law, trust fund balances could have been invested outside 
the Government and earned interest from the public. The general fund 
would have offset the loss of this source of financing by borrowing more 
from the public, which would have increased Federal fund interest 
outlays to the public. In terms of transactions with the public, the 
result would be substantially lower trust fund deficits and higher 
Federal fund deficits. But this would not mean that trust funds were 
less responsible--or Federal funds more responsible--for the unified 
deficit than under current practice. All taxes and programmatic spending 
would have been the same. Trust fund interest income was $99 billion in 
1996, and it is expected to grow to $131 billion by the year 2002.
   The SMI trust fund is different from other trust funds in that it is 
mostly funded by a general fund payment, and the payment is not 
compensation for services provided by the trust fund to the general 
fund. The payment is simply a general fund subsidy of trust fund 
spending. Interfund accounting therefore assigns the general fund its 
share of SMI payments to the public. The general fund payment was $62 
billion in 1996.
   Because fund accounting allocates costs between the two fund groups, 
it is inappropriate to exclude interfund transactions from the analysis 
of responsibility for the unified budget deficit. However, it does not 
follow automatically that trust fund surpluses and Federal fund deficits 
mean that Federal funds bear the sole responsibility for the unified 
budget deficit. That is a separable issue, and as the next section 
shows, more questionable.

   Both Fund Groups Bear the Responsibility.--The Federal budget has 
been presented on a unified basis since 1968. Its purpose is to present 
in one place the totality of the Federal Government's fiscal operations.
   The most important information provided by the unified budget is (1) 
how much of the Nation's resources are used by the Government, and (2) 
how these resources are allocated among the many purposes of Government. 
By combining all receipts and spending in one budget, the implicit 
tradeoffs between public and private spending, and between Government 
programs, become more visible. The intention is that by surfacing these 
basic tradeoffs, conflicts over competing demands for the Nation's 
resources will be resolved, and the pieces of the budget will add to the 
desired total. However, there is no automatic mechanism that forces 
resolution of these conflicts. Congress can choose to use the budget to 
force the components of the budget to stay within targets for total 
receipts and spending, as it has for discretionary programs in the 
Budget Enforcement Act of 1990. Or it can allow tax and spending 
programs to occur autonomously without regard to what those actions have 
on other programs or on the budget totals.
   The persistence of unified budget deficits over the past 3\1/2\ 
decades can be thought of as a financial indicator of the Nation's 
failure to resolve conflicting goals. The Nation has simultaneously 
desired to (1) increase spending by trust funds without decreasing 
spending by Federal funds, (2) hold the total tax burden constant while 
increasing taxes earmarked for trust funds, and (3) balance the total 
budget. One of these goals had to give. The trends in the totals for the 
fund groups and the unified budget tell how the conflict played out.
   As shown in Chart 17-2, trust fund outlays to the public as a percent 
of GDP have increased in every five-year period since 1960, rising from 
4.1 percent in the first half of the 1960s to 7.3 percent in the latter 
half of the 1970s, and rising even further to 8.7 percent in the first 
half of the 1990s. \8\ Over the same period, Federal fund payments to 
the public moved up and down slightly but stayed between 14 and 15 
percent of GDP. The combination of growing trust fund spending and 
constant Federal fund spending meant that total spending increased from 
19 percent to 23 percent of GDP.
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  \8\ This section focuses on receipts and outlays as they are defined 
in the unified budget, instead of income and outgo. The difference is 
that proprietary receipts and interfund collections are offset against 
outlays in the unified budget, but they are considered income for a fund 
group. Since the comparisons over time are based on changes in shares of 
GDP, it is better to use receipts and outlays. 



   Because the norm has been for trust funds to be in balance, or to 
accumulate balances to fund future benefits, trust fund taxes were 
increased commensurately with the increase in trust fund outlays. As 
shown in Chart 17-3, trust fund receipts as a percent of GDP increased 
in every five-year period since 1960, rising from 3.7 percent in the 
first half of the 1960s to 6.0 percent in the latter half of the 1970s, 
and rising even further to 7.3 percent in the first half of the 1990s. 
However, unlike Federal fund outlays, Federal fund receipts did not stay 
the same when trust fund receipts rose. The increases in trust fund 
receipts were offset 


[[Page 299]]

by decreases in Federal fund receipts, and total budget receipts remained constant at 18 to 19 percent of GDP.
   What explains the growth in the unified budget deficit, therefore, is 
the basic conflict between the goal of expanding and fully funding one 
part of Government, and an unwillingness either to allow the total tax 
burden to increase or to reduce the rest of Government. \9\ The Nation 
wanted to expand trust fund spending, and it said it was willing to 
finance that expansion. The latter could only have been accomplished by 
increasing the total tax burden or by reducing Federal fund spending. In 
fact, neither occurred. Taxes were shifted from Federal funds to trust 
funds, and the total tax burden remained the same. Federal fund spending 
remained constant, and total spending increased. If Federal fund taxes 
had stayed at the levels experienced in the first half of the 1960s, 
Federal fund tax receipts would have been much higher over the period, 
and the higher receipts plus the associated interest savings would have 
been sufficient to avoid most or all of the unified deficits. The same 
outcome could have been achieved by reducing Federal fund spending 
commensurately with the reduction in Federal fund taxes.
---------------------------------------------------------------------------
  \9\ For similar analyses, see The Budget Deficit--Outlook, 
Implications, and Choices, General Accounting Office, September 1990, 
pp.29-32; and John F. Cogan, ``the Dispersion of Spending Authority and 
Federal Budget Deficits,'' in The Budget Puzzle by John F. Cogan, 
Timothy J. Muris, and Allen Schick, Stanford University Press, 1994, pp. 
39-40.
---------------------------------------------------------------------------
   In short, the imbalances seen in the fund group and unified budget 
totals are symptomatic of the unresolved conflict over the size of 
Government and how it is to be financed. Instead of resolving this 
conflict, increases in trust fund spending have been ``financed'' at the 
expense of financing for Federal funds. In that sense, both fund groups 
are responsible for the unified budget deficit.




[[Page 301]]

               Income, Outgo, and Balances of Trust Funds

   Table 17-2 shows the trust funds balance at the start of each year, 
income and outgo during the year, and the end of year balance. Income 
and outgo are divided between transactions with the public and 
transactions with Federal funds. Receipts from Federal funds are divided 
between interest and other interfund receipts.
   The definition of income and outgo in this table differs from those 
in Table 17-1 in one important way. Trust fund collections that are 
offset against outgo (as offsetting collections) within expenditure 
accounts instead of being deposited in separate receipt accounts are 
classified as income in this table but not in Table 17-1. This 
classification is consistent with the definitions of income and outgo 
for trust funds used elsewhere in the budget. It has the effect of 
increasing both income and outgo by the amount of the offsetting 
collections. The difference is approximately $23 billion in 1996. This 
table, therefore, provides a more complete summary of trust fund income 
and outgo.
   The trust funds group is expected to have large and growing surpluses 
over the projection period. As a con-

[[Page 300]]

sequence, trust fund balances will grow substantially, as they have over the past decade. The size of the anticipated balances is unprecedented, and it results mainly from relatively recent changes in the way some trust funds are financed.
   Until the 1980s, most trust funds operated on a pay-as-you-go basis. 
Taxes and user fees were set at levels high enough to finance benefits 
and administrative expenses, and to maintain prudent reserves, generally 
defined as being equal to one year's expenditures. As a result, trust 
fund balances tended to grow at about the same rate as their annual 
expenditures.
   Pay-as-you-go financing was replaced in the 1980s by full or partial 
accrual funding for some of the larger trust funds. In order to 
partially prefund the ``baby-boomers'' social security benefits, the 
Social Security Amendments of 1983 raised payroll taxes above the levels 
necessary to finance current expenditures. In 1985 a new system was set 
up to finance military retirement benefits on a full accrual basis. In 
1986 full accrual funding of retirement benefits was mandated for 
Federal civilian employees hired after December 31, 1983. The latter two 
changes require Federal agencies and their employees to make annual 
payments to the Federal employees' retirement trust funds in an amount 
equal to the value of the retirement benefits earned by employees in 
that year. Since many years will pass before current employees are paid 
retirement benefits, the trust funds will accumulate substantial 
balances over time.
   Primarily because of these changes, but also because of the impact of 
real growth and inflation, trust fund balances increased sevenfold from 
1982 to 1996, from $205 billion to $1.4 trillion. Under the proposals in 
the President's budget, the balances are estimated to increase by 
another 57 percent by the year 2002, rising to $2.2 trillion. Almost all 
of these balances are invested in Treasury securities and earn interest. 
Therefore, they effectively represent the value, in current dollars, of 
taxes and user fees that have been paid in advance for future benefits 
and services.

                                     

                                              Table 17-2.  INCOME, OUTGO, AND BALANCES OF TRUST FUNDS GROUP                                             
                                                                (In billions of dollars)                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Estimate                               
                                                                          1996   -----------------------------------------------------------------------
                                                                        actual       1997        1998        1999        2000        2001        2002   
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Total Trust Funds                                                                                                             
                                                                                                                                                        
Balance, start of year..............................................   1,275.8     1,390.5     1,506.4     1,640.1     1,778.5     1,928.3     2,082.6  
                                                                                                                                                        
Income:                                                                                                                                                 
  Governmental receipts.............................................     539.6       568.3       594.3       615.6       645.4       674.1       705.6  
  Proprietary receipts..............................................      43.0        42.4        43.5        45.5        47.5        49.8        52.9  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................      99.2       105.9       110.8       116.1       120.8       125.9       131.1  
    Other...........................................................     152.7       158.4       180.5       189.7       200.1       212.8       227.7  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................     834.5       875.1       929.1       966.9     1,013.8     1,062.6     1,117.3  
                                                                                                                                                        
Outgo:                                                                                                                                                  
  To the public.....................................................     716.1       757.4       794.1       827.4       862.8       906.7       954.1  
  Payments to Federal funds.........................................       3.7         1.0         1.1         1.1         1.1         1.7         1.2  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     719.8       758.4       795.2       828.6       863.9       908.4       955.2  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      15.5        10.7        23.1        22.3        29.1        28.4        31.0  
    Interest........................................................      99.2       105.9       110.8       116.1       120.8       125.9       131.1  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................     114.7       116.7       133.9       138.4       149.9       154.2       162.1  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................      -*          -0.8        -0.4    ..........  ..........  ..........  ..........
    Other adjustments...............................................       0.1         0.1         0.1    ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................     114.7       115.9       133.6       138.4       149.9       154.2       162.1  
                                                                     ===================================================================================
Balance, end of year................................................   1,390.5     1,506.4     1,640.1     1,778.5     1,928.3     2,082.6     2,244.7  
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million.                                                                                                                                

   These balances are available to finance future benefit payments and 
other trust fund expenditures--but only in a bookkeeping sense. Unlike 
the assets of private pension plans, they do not consist of real 
economic assets that can be drawn down in the future to fund benefits. 
Instead, they are claims on the Treasury that, when redeemed, will have 
to be financed by raising taxes, borrowing from the public, or reducing 
benefits or other expenditures. The existence of large trust fund 
balances, therefore, does not, by itself, make it easier for the 
Government to pay benefits.
   From an economic standpoint, the Government is able to prefund 
benefits only by increasing saving and investment in the economy as a 
whole. This can be fully accomplished only by simultaneously running 
trust fund surpluses equal to the actuarial present value of 

[[Page 301]]

the accumulating benefits and not allowing the Federal fund deficit to 
increase, so that the trust fund surplus reduces the unified budget 
deficit. This would reduce Federal borrowing by the amount of the trust 
funds surplus and increase the amount of national saving available to 
finance investment. Greater investment would increase future incomes and 
wealth, particularly if it increased the rate of productivity growth. In 
turn, this would make it possible for the trust funds to draw down on 
their investments in Treasury debt to pay future benefits without having 
to increase the burden on future workers by raising tax rates, reducing 
spending, or increasing Government borrowing.
   Table 17-3 shows estimates of income, outgo, and balances for 1996 
through 2002 for the major trust funds. With the exception of 
transactions between trust funds, the data for the individual trust 
funds are conceptually the same as the data in Table 17-2 for the trust 
funds group. As explained previously, transactions between trust funds 
are shown as outgo of the fund that makes the payment and as income of 
the fund that collects it in the data for an individual trust fund, but 
the collections are offset against outgo in the data for the trust fund 
group. Additional information for these and other trust funds can be 
found in the Status of Funds tables in the Budget Appendix.
   Table 17-4, which appears at the end of this chapter, shows income, 
outgo, and balances of four Federal funds--a revolving fund and three 
special funds. These funds are similar to trust funds in that they are 
financed by earmarked receipts, excesses of income over outgo are 
invested, the interest earnings add to balances, and the balances remain 
available to finance future expenditures. The table is illustrative of 
the Federal funds group, which includes many other revolving funds and 
special funds in addition to the ones shown.

                                     


[[Page 302]]

                                              Table 17-3.  INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS                                             
                                                                (In billions of dollars)                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Estimate                               
                                                                          1996   -----------------------------------------------------------------------
                                                                        actual       1997        1998        1999        2000        2001        2002   
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                  Airport and Airway Trust Fund \1\                                                                                                     
                                                                                                                                                        
Balance, start of year..............................................      11.4         7.9         7.8         7.7         5.2         3.9         3.3  
Income:                                                                                                                                                 
  Governmental receipts.............................................       2.4         4.8         6.4    ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       *           *           *      ..........  ..........  ..........  ..........
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       0.8         0.5         0.4    ..........  ..........  ..........  ..........
    Other...........................................................       0.1         0.1         0.1         0.1         0.1         0.1         0.1  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       3.2         5.5         6.9         0.1         0.1         0.1         0.1  
Outgo:                                                                                                                                                  
  To the public.....................................................       6.7         5.5         7.0         2.6         1.4         0.8         0.5  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       6.7         5.5         7.0         2.6         1.4         0.8         0.5  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -4.2        -0.6        -0.5        -2.5        -1.3        -0.6        -0.4  
    Interest........................................................       0.8         0.5         0.4    ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      -3.5        -0.1        -0.1        -2.5        -1.3        -0.6        -0.4  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -3.5        -0.1        -0.1        -2.5        -1.3        -0.6        -0.4  
                                                                     ===================================================================================
Balance, end of year................................................       7.9         7.8         7.7         5.2         3.9         3.3         2.9  
                                                                                                                                                        
               Federal Employees Health Benefits Fund                                                                                                   
                                                                                                                                                        
Balance, start of year..............................................       7.8         7.4         7.1         6.9         6.8         7.0         7.1  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       4.1         4.3         4.6         5.7         6.4         6.7         7.1  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       0.5         0.5         0.5         0.5         0.5         0.5         0.5  
    Other...........................................................      11.2        11.6        12.3        12.2        13.0        13.8        14.7  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      15.7        16.3        17.4        18.4        19.9        21.0        22.4  
Outgo:                                                                                                                                                  
  To the public.....................................................      16.1        16.6        17.5        18.5        19.8        20.8        22.3  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      16.1        16.6        17.5        18.5        19.8        20.8        22.3  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -0.9        -0.8        -0.6        -0.6        -0.4        -0.3        -0.4  
    Interest........................................................       0.5         0.5         0.5         0.5         0.5         0.5         0.5  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      -0.4        -0.3        -0.1        -0.1         0.1         0.2         0.1  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -0.4        -0.3        -0.1        -0.1         0.1         0.2         0.1  
                                                                     ===================================================================================
Balance, end of year................................................       7.4         7.1         6.9         6.8         7.0         7.1         7.2  
                                                                                                                                                        
             Federal Civilian Employees Retirement Funds                                                                                                
                                                                                                                                                        
Balance, start of year..............................................     374.3       401.7       430.9       461.1       491.0       520.7       550.6  
Income:                                                                                                                                                 
  Governmental receipts.............................................       4.5         4.3         4.3         4.4         4.5         4.6         4.6  
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........

[[Page 303]]

  Receipts from Federal funds:                                                                                                                          
    Interest........................................................      29.2        31.4        32.8        33.7        34.1        34.7        35.3  
    Other...........................................................      34.1        35.5        36.8        37.7        39.0        40.4        42.0  
  Receipts from Trust funds.........................................       *           *           *           *           *           *           *    
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      67.8        71.2        73.9        75.7        77.6        79.7        82.0  
Outgo:                                                                                                                                                  
  To the public.....................................................      40.3        42.0        43.8        45.8        47.8        49.9        52.1  
  Payments to Other funds...........................................       *           *           *           *           *           *           *    
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      40.3        42.0        43.8        45.8        47.8        49.9        52.1  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -1.7        -2.2        -2.7        -3.7        -4.3        -4.8        -5.4  
    Interest........................................................      29.2        31.4        32.8        33.7        34.1        34.7        35.3  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      27.5        29.2        30.1        29.9        29.8        29.9        29.9  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................       *      ..........       *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      27.5        29.2        30.1        29.9        29.8        29.9        29.9  
                                                                     ===================================================================================
Balance, end of year................................................     401.7       430.9       461.1       491.0       520.7       550.6       580.5  
                                                                                                                                                        
   Federal Old-Age, Survivors and Disability Insurance Trust Funds                                                                                      
                                                                                                                                                        
Balance, start of year..............................................     483.2       549.6       625.4       705.9       794.1       890.1       991.5  
Income:                                                                                                                                                 
  Governmental receipts.............................................     367.5       388.9       404.9       425.2       446.9       467.6       489.9  
  Proprietary receipts..............................................       *           *           *           *           *           *           *    
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................      36.5        41.2        45.2        49.2        53.2        57.3        61.6  
    Other...........................................................      14.4        15.6        16.9        18.0        19.3        20.5        22.0  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................     418.4       445.7       467.1       492.5       519.4       545.4       573.4  
Outgo:                                                                                                                                                  
  To the public.....................................................     347.8       365.7       382.4       400.0       419.0       439.3       460.9  
  Payments to Other funds...........................................       4.2         4.1         4.2         4.3         4.3         4.8         4.4  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     352.0       369.9       386.6       404.3       423.4       444.1       465.2  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      29.9        34.6        35.3        39.0        42.9        44.1        46.6  
    Interest........................................................      36.5        41.2        45.2        49.2        53.2        57.3        61.6  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      66.4        75.9        80.5        88.2        96.0       101.3       108.2  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*      ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      66.4        75.9        80.5        88.2        96.0       101.3       108.2  
                                                                     ===================================================================================
Balance, end of year................................................     549.6       625.4       705.9       794.1       890.1       991.5     1,099.6  
                                                                                                                                                        
                  Foreign Military Sales Trust Fund                                                                                                     
                                                                                                                                                        
Balance, start of year..............................................       5.5         5.9         6.0         6.1         6.1         6.0         5.9  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................      14.7        13.8        13.4        12.7        12.1        11.8        11.8  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other...........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      14.7        13.8        13.4        12.7        12.1        11.8        11.8  
Outgo:                                                                                                                                                  
  To the public.....................................................      14.3        13.7        13.3        12.8        12.1        12.0        11.9  

[[Page 304]]

  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      14.3        13.7        13.3        12.8        12.1        12.0        11.9  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................       0.4         0.1         0.1        -*          -0.1        -0.1        -0.1  
    Interest........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.4         0.1         0.1        -*          -0.1        -0.1        -0.1  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................       *      ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.4         0.1         0.1        -*          -0.1        -0.1        -0.1  
                                                                     ===================================================================================
Balance, end of year................................................       5.9         6.0         6.1         6.1         6.0         5.9         5.7  
                                                                                                                                                        
                         Highway Trust Fund                                                                                                             
                                                                                                                                                        
Balance, start of year..............................................      19.0        21.6        24.4        27.7        31.4        34.9        39.0  
Income:                                                                                                                                                 
  Governmental receipts.............................................      24.7        24.9        24.7        25.3        25.8        26.6        27.1  
  Proprietary receipts..............................................       *           *           *           *           *           *           *    
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       1.3         1.3         1.4         1.6         1.7         1.8         2.0  
    Other...........................................................       *           0.1         0.1         0.1         0.1         0.1         0.1  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, Income..............................................      26.0        26.3        26.3        27.0        27.7        28.5        29.2  
Outgo:                                                                                                                                                  
  To the public.....................................................      23.4        23.5        22.9        23.4        24.2        24.4        24.8  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, Outgo...............................................      23.4        23.5        22.9        23.4        24.2        24.4        24.8  
Change in fund balance:                                                                                                                                 
  Surplus or deficit:                                                                                                                                   
    Excluding interest..............................................       1.3         1.4         2.0         2.1         1.8         2.3         2.4  
    Interest........................................................       1.3         1.3         1.4         1.6         1.7         1.8         2.0  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit..................................       2.6         2.8         3.4         3.7         3.5         4.1         4.4  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................      -*          -*          -*      ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, Change in fund balance...................................       2.6         2.7         3.4         3.7         3.5         4.1         4.4  
                                                                     ===================================================================================
Balance, End of Year................................................      21.6        24.4        27.7        31.4        34.9        39.0        43.4  
                                                                                                                                                        
        Medicare: Federal Hospital Insurance (HI) Trust Fund                                                                                            
                                                                                                                                                        
Balance, start of year..............................................     129.5       125.3       115.3       117.4       119.7       124.6       127.0  
Income:                                                                                                                                                 
  Governmental receipts.............................................     105.0       109.2       114.2       120.0       126.3       132.4       139.0  
  Proprietary receipts..............................................       1.1         1.3         1.2         1.3         1.3         1.4         1.5  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................      10.4         9.9         9.2         9.1         8.9         8.8         8.7  
    Other...........................................................       7.0         7.5         7.4         8.0         8.5         9.0         9.7  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................     123.5       128.0       132.1       138.4       145.1       151.7       158.8  
Outgo:                                                                                                                                                  
  To the public.....................................................     125.3       138.1       130.0       136.0       140.3       149.3       157.5  
  Payments to Other funds...........................................       2.4    ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     127.7       138.1       130.0       136.0       140.3       149.3       157.5  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................     -14.6       -20.0        -7.1        -6.7        -4.1        -6.4        -7.4  
    Interest........................................................      10.4         9.9         9.2         9.1         8.9         8.8         8.7  
                                                                     -----------------------------------------------------------------------------------

[[Page 305]]

      Subtotal, surplus or deficit (-)..............................      -4.2       -10.1         2.1         2.4         4.8         2.5         1.3  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........      -*      ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*           *      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -4.2       -10.1         2.1         2.4         4.8         2.5         1.3  
                                                                     ===================================================================================
Balance, end of year................................................     125.3       115.3       117.4       119.7       124.6       127.0       128.3  
                                                                                                                                                        
 Medicare: Federal Supplementary Medical Insurance (SMI) Trust Fund                                                                                     
                                                                                                                                                        
Balance, start of year..............................................      13.9        27.0        30.3        31.5        32.2        32.9        33.6  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................      18.9        19.0        20.6        22.4        24.3        26.4        29.0  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       1.4         1.4         1.4         1.5         1.5         1.5         1.5  
    Other...........................................................      61.7        59.4        78.1        84.1        89.6        97.3       106.5  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      82.0        79.8       100.1       108.0       115.3       125.2       137.0  
Outgo:                                                                                                                                                  
  To the public.....................................................      68.9        76.5        98.9       107.3       114.6       124.5       136.2  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      68.9        76.5        98.9       107.3       114.6       124.5       136.2  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      11.7         1.9        -0.3        -0.8        -0.8        -0.8        -0.7  
    Interest........................................................       1.4         1.4         1.4         1.5         1.5         1.5         1.5  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      13.1         3.3         1.2         0.7         0.7         0.7         0.8  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........      -*      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      13.1         3.3         1.2         0.7         0.7         0.7         0.8  
                                                                     ===================================================================================
Balance, end of year................................................      27.0        30.3        31.5        32.2        32.9        33.6        34.4  
                                                                                                                                                        
                      Military Retirement Fund                                                                                                          
                                                                                                                                                        
Balance, start of year..............................................     126.7       131.2       139.1       146.0       152.7       159.6       166.5  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................      11.5        11.6        11.8        12.0        12.3        12.5        12.7  
    Other...........................................................      21.9        26.3        26.4        27.1        28.0        28.9        30.0  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      33.4        37.9        38.2        39.1        40.3        41.4        42.7  
Outgo:                                                                                                                                                  
  To the public.....................................................      28.8        30.1        31.3        32.4        33.5        34.5        35.5  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      28.8        30.1        31.3        32.4        33.5        34.5        35.5  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -7.0        -3.8        -4.9        -5.3        -5.5        -5.6        -5.6  
    Interest........................................................      11.5        11.6        11.8        12.0        12.3        12.5        12.7  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       4.5         7.8         6.9         6.7         6.8         6.9         7.1  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       4.5         7.8         6.9         6.7         6.8         6.9         7.1  
                                                                     ===================================================================================
Balance, end of year................................................     131.2       139.1       146.0       152.7       159.6       166.5       173.6  
                                                                                                                                                        

[[Page 306]]

                 Railroad Retirement Trust Funds \2\                                                                                                    
                                                                                                                                                        
Balance, start of year..............................................      13.4        14.0        14.7        15.3        15.9        16.2        16.4  
Income:                                                                                                                                                 
  Governmental receipts.............................................       3.9         3.9         3.9         3.9         3.8         3.8         3.8  
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       1.1         1.1         1.0         1.0         1.0         1.0         1.0  
    Other...........................................................       0.2         0.2         0.3         0.3         0.3         0.3         0.3  
  Receipts from Trust funds.........................................       3.6         3.8         3.9         4.0         4.0         3.9         4.0  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       8.8         9.1         9.0         9.1         9.1         9.0         9.1  
Outgo:                                                                                                                                                  
  To the public.....................................................       8.0         8.1         8.2         8.3         8.5         8.6         8.7  
  Payments to Other funds...........................................       0.2         0.2         0.2         0.2         0.2         0.2         0.2  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       8.3         8.4         8.5         8.6         8.7         8.8         8.9  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -0.6        -0.4        -0.5        -0.5        -0.6        -0.8        -0.7  
    Interest........................................................       1.1         1.1         1.0         1.0         1.0         1.0         1.0  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.5         0.7         0.5         0.5         0.4         0.2         0.3  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................       0.1         0.1         0.1    ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.6         0.8         0.6         0.5         0.4         0.2         0.3  
                                                                     ===================================================================================
Balance, end of year................................................      14.0        14.7        15.3        15.9        16.2        16.4        16.7  
                                                                                                                                                        
                       Unemployment Trust Fund                                                                                                          
                                                                                                                                                        
Balance, start of year..............................................      47.9        54.0        61.1        67.5        74.1        80.7        87.3  
Income:                                                                                                                                                 
  Governmental receipts.............................................      28.6        29.5        30.5        31.8        32.8        33.7        35.8  
  Proprietary receipts..............................................       *      ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       3.4         3.6         3.9         4.1         4.1         4.3         4.4  
    Other...........................................................       0.4         0.6         0.6         0.6         0.6         0.7         0.7  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      32.4        33.7        35.0        36.5        37.6        38.7        40.9  
Outgo:                                                                                                                                                  
  To the public.....................................................      26.2        26.6        28.6        29.9        30.9        32.1        33.2  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      26.2        26.6        28.6        29.9        30.9        32.1        33.2  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................       2.8         3.5         2.6         2.5         2.5         2.3         3.4  
    Interest........................................................       3.4         3.6         3.9         4.1         4.1         4.3         4.4  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       6.2         7.1         6.5         6.5         6.7         6.6         7.7  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........       *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       6.2         7.1         6.5         6.5         6.7         6.6         7.7  
                                                                     ===================================================================================
Balance, end of year................................................      54.0        61.1        67.5        74.1        80.7        87.3        95.1  
                                                                                                                                                        
                 Veterans Life Insurance Trust Funds                                                                                                    
                                                                                                                                                        
Balance, start of year..............................................      13.6        13.7        13.6        13.5        13.3        13.1        12.7  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       0.9         0.9         0.9         0.5         0.5         0.4         0.4  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       1.2         1.2         1.1         1.4         1.3         1.3         1.2  
    Other...........................................................       *           *           *           *           *           *           *    

[[Page 307]]

  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       2.1         2.1         2.0         1.9         1.8         1.7         1.6  
Outgo:                                                                                                                                                  
  To the public.....................................................       2.1         2.1         2.1         2.1         2.1         2.0         2.0  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       2.1         2.1         2.1         2.1         2.1         2.0         2.0  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -1.1        -1.2        -1.2        -1.6        -1.6        -1.6        -1.6  
    Interest........................................................       1.2         1.2         1.1         1.4         1.3         1.3         1.2  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.1        -0.1        -0.1        -0.2        -0.3        -0.3        -0.4  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*          -*           *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.1        -0.1        -0.1        -0.2        -0.3        -0.3        -0.4  
                                                                     ===================================================================================
Balance, end of year................................................      13.7        13.6        13.5        13.3        13.1        12.7        12.4  
                                                                                                                                                        
                        Other Trust Funds \2\                                                                                                           
                                                                                                                                                        
Balance, start of year..............................................      29.7        31.1        30.7        33.4        35.9        38.6        41.6  
Income:                                                                                                                                                 
  Governmental receipts.............................................       3.2         2.8         5.3         5.0         5.2         5.3         5.4  
  Proprietary receipts..............................................       3.1         3.1         2.8         2.9         2.9         3.0         3.1  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       2.0         2.0         2.1         2.1         2.2         2.2         2.3  
    Other...........................................................       1.7         1.6         1.5         1.5         1.6         1.6         1.6  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      10.0         9.5        11.7        11.6        11.9        12.1        12.4  
Outgo:                                                                                                                                                  
  To the public.....................................................       8.1         8.7         8.1         8.4         8.6         8.5         8.5  
  Payments to Other funds...........................................       0.5         0.5         0.5         0.6         0.6         0.6         0.6  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       8.6         9.2         8.7         9.0         9.2         9.1         9.2  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -0.5        -1.7         0.9         0.4         0.5         0.8         1.0  
    Interest........................................................       2.0         2.0         2.1         2.1         2.2         2.2         2.3  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       1.4         0.3         3.0         2.6         2.7         3.0         3.3  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................      -*          -0.7        -0.4    ..........  ..........  ..........  ..........
    Other adjustments...............................................       *          -*           *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       1.4        -0.4         2.7         2.6         2.7         3.0         3.3  
                                                                     ===================================================================================
Balance, end of year................................................      31.1        30.7        33.4        35.9        38.6        41.6        44.9  
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million                                                                                                                                 
                                                                                                                                                        
Note: Balances shown include committed and uncommitted cash balances.                                                                                   
                                                                                                                                                        
\1\ The aviation excise taxes are proposed to be reinstated effective April 1, 1997, resulting in an estimated uncommitted cash balance of $0.5 billion 
  at the end of 1998. In addition, the Administration proposes that aviation excise taxes be repealed effective October 1, 1998, and replaced with cost-
  based user fees. Additional information on these proposed changes to the Airport and Airway Trust Fund can be found in Chapter 4 ``User Fees and Other
  Collections'' and Chapter 3 ``Federal Receipts'' of the Analytical Perspectives.                                                                      
                                                                                                                                                        
\2\ Trust fund borrowing and repayment from the general fund of the Treasury has been revised to reflect the changes explained in the ``Income and Outgo
  by Fund Group'' section of this chapter. This change affects the Railroad Social Security Equivalent Benefit Account (Railroad Retirement Trust Funds)
  and the Black Lung Disability Trust Fund (Other Trust Funds).                                                                                         



[[Page 308]]

                                           Table 17-4.  INCOME, OUTGO, AND BALANCES OF SELECTED FEDERAL FUNDS                                           
                                                                (In billions of dollars)                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          Estimate                      
                                                                                            1996   -----------------------------------------------------
                                                                                           actual     1997     1998     1999     2000     2001     2002 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                             Abandoned Mine Reclamation Fund                                                                                            
Balance, start of year..................................................................      1.3      1.4      1.5      1.7      1.8      1.9      2.0 
Income:                                                                                                                                                 
  Governmental receipts.................................................................      0.3      0.3      0.3      0.3      0.3      0.3      0.3 
  Proprietary receipts..................................................................      *        *        *        *        *        *        *   
  Receipts from Federal funds:                                                                                                                          
    Interest............................................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
    Other...............................................................................  ........  .......  .......  .......  .......  .......  .......
  Receipts from Trust funds.............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
       Subtotal, income.................................................................      0.3      0.4      0.4      0.4      0.4      0.4      0.4 
Outgo:                                                                                                                                                  
  To the public.........................................................................      0.2      0.2      0.2      0.2      0.2      0.2      0.2 
  Payments to Other funds...............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
       Subtotal, outgo..................................................................      0.2      0.2      0.2      0.2      0.2      0.2      0.2 
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..................................................................      *        0.1      *        *        *        *        0.1 
    Interest............................................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
                                                                                         ---------------------------------------------------------------
       Subtotal, surplus or deficit (-).................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..............................................................  ........  .......  .......  .......  .......  .......  .......
    Other adjustments...................................................................      *        *     .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
    Total, change in fund balance.......................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
                                                                                         ===============================================================
Balance, end of year....................................................................      1.4      1.5      1.7      1.8      1.9      2.0      2.2 
                                                                                                                                                        
                               Nuclear Waste Disposal Fund                                                                                              
                                                                                                                                                        
Balance, start of year..................................................................      4.7      5.3      6.1      6.9      7.8      8.8      9.8 
Income:                                                                                                                                                 
  Governmental receipts.................................................................  ........  .......  .......  .......  .......  .......  .......
  Proprietary receipts..................................................................      0.6      0.6      0.7      0.7      0.7      0.7      0.7 
  Receipts from Federal funds:                                                                                                                          
    Interest............................................................................      0.2      0.3      0.4      0.4      0.5      0.6      0.6 
    Other...............................................................................  ........  .......  .......  .......  .......  .......  .......
  Receipts from Trust funds.............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
       Subtotal, income.................................................................      0.8      1.0      1.0      1.1      1.2      1.2      1.3 
Outgo:                                                                                                                                                  
  To the public.........................................................................      0.2      0.2      0.2      0.2      0.2      0.2      0.2 
  Payments to Other funds...............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
       Subtotal, outgo..................................................................      0.2      0.2      0.2      0.2      0.2      0.2      0.2 
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..................................................................      0.4      0.5      0.5      0.5      0.5      0.5      0.5 
    Interest............................................................................      0.2      0.3      0.4      0.4      0.5      0.6      0.6 
                                                                                         ---------------------------------------------------------------
       Subtotal, surplus or deficit (-).................................................      0.6      0.8      0.8      0.9      1.0      1.0      1.1 
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..............................................................  ........  .......  .......  .......  .......  .......  .......
    Other adjustments...................................................................     -*       -*       -*     .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
    Total, change in fund balance.......................................................      0.6      0.8      0.8      0.9      1.0      1.0      1.1 
                                                                                         ===============================================================
Balance, end of year....................................................................      5.3      6.1      6.9      7.8      8.8      9.8     10.9 
                                                                                                                                                        
                         Overseas Private Investment Corporation                                                                                        
                                                                                                                                                        
Balance, start of year..................................................................      2.1      2.3      2.5      2.6      2.9      3.2      3.5 
Income:                                                                                                                                                 
  Governmental receipts.................................................................  ........  .......  .......  .......  .......  .......  .......
  Proprietary receipts..................................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
  Receipts from Federal funds:                                                                                                                          
    Interest............................................................................      0.2      0.2      0.2      0.2      0.2      0.2      0.2 
    Other...............................................................................  ........     *        *        *        *        *        *   

[[Page 309]]

  Receipts from Trust funds.............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
       Subtotal, income.................................................................      0.2      0.3      0.3      0.3      0.3      0.4      0.4 
Outgo:                                                                                                                                                  
  To the public.........................................................................      *        *        0.1      0.1      0.1      0.1      0.1 
  Payments to Other funds...............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
       Subtotal, outgo..................................................................      *        *        0.1      0.1      0.1      0.1      0.1 
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..................................................................      *        0.1      0.1      0.1      0.1      0.1      0.1 
    Interest............................................................................      0.2      0.2      0.2      0.2      0.2      0.2      0.2 
                                                                                         ---------------------------------------------------------------
       Subtotal, surplus or deficit (-).................................................      0.2      0.2      0.2      0.3      0.3      0.3      0.3 
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..............................................................     -*       -*       -0.1   .......  .......  .......  .......
    Other adjustments...................................................................  ........  .......     *     .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
    Total, change in fund balance.......................................................      0.2      0.2      0.2      0.3      0.3      0.3      0.3 
                                                                                         ===============================================================
Balance, end of year....................................................................      2.3      2.5      2.6      2.9      3.2      3.5      3.8 
                                                                                                                                                        
               Uranium Enrichment Decontamination and Decommissioning Fund                                                                              
                                                                                                                                                        
Balance, start of year..................................................................      0.3      0.5      0.8      1.2      1.6      2.1      2.7 
Income:                                                                                                                                                 
  Governmental receipts.................................................................      0.2      0.2      0.2      0.2      0.2      0.2      0.2 
  Proprietary receipts..................................................................  ........  .......  .......  .......  .......  .......  .......
  Receipts from Federal funds:                                                                                                                          
    Interest............................................................................      *        *        0.1      0.1      0.1      0.1      0.2 
    Other...............................................................................      0.4      0.4      0.4      0.4      0.4      0.4      0.4 
  Receipts from Trust funds.............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
       Subtotal, income.................................................................      0.5      0.6      0.6      0.6      0.7      0.7      0.8 
Outgo:                                                                                                                                                  
  To the public.........................................................................      0.3      0.2      0.2      0.2      0.2      0.2      0.2 
  Payments to Other funds...............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
       Subtotal, outgo..................................................................      0.3      0.2      0.2      0.2      0.2      0.2      0.2 
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..................................................................      0.2      0.3      0.4      0.4      0.5      0.5      0.6 
    Interest............................................................................      *        *        0.1      0.1      0.1      0.1      0.2 
                                                                                         ---------------------------------------------------------------
       Subtotal, surplus or deficit (-).................................................      0.2      0.4      0.4      0.4      0.5      0.5      0.6 
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..............................................................  ........  .......  .......  .......  .......  .......  .......
    Other adjustments...................................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
    Total, change in fund balance.......................................................      0.2      0.4      0.4      0.4      0.5      0.5      0.6 
                                                                                         ===============================================================
Balance, end of year....................................................................      0.5      0.8      1.2      1.6      2.1      2.7      3.3 
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million                                                                                                                                 
                                                                                                                                                        
Note: Balances shown include committed and uncommitted cash balances.