[Budget of the United States Government]
[VI. Investing in the Common Good: Program Performance in Federal Functions]
[11. Overview]
[From the U.S. Government Publishing Office, www.gpo.gov]


 
             VI.  INVESTING IN THE COMMON GOOD: PROGRAM PERFORMANCE
             IN FEDERAL FUNCTIONS

[[Page 143]]

                              11.  OVERVIEW

  The commitment of the President and Congress to balance the budget--
and keep it in balance--means that, if all Federal programs want to 
continue receiving funds, they will have to distinguish themselves by 
demonstrating good, measurable performance. Policy makers will have to 
allocate resources to programs that can prove they are well-run and can 
successfully produce results.
  The Administration's focus on results is not new. As the 
Administration said in last year's budget:
      Led by Vice President Gore's National Performance Review, the 
      Administration has made real progress in creating a Government 
      that, in the words of the NPR, ``works better and costs less.'' We 
      have eliminated layers of bureaucracy, cut paperwork burdens, 
      scrapped thousands of pages of regulations and, most important, 
      improved service to Government's customers--the American people.
  The President's commitment to better performance was a key reason that 
he actively supported, and eagerly signed, the 1993 Government 
Performance and Results Act (GPRA). In this budget, the Administration 
highlights three aspects of performance:
  Fiscal performance (see Section III, ``Creating a Bright 
          Economic Future'');
  Management performance (see Section IV, ``Improving 
          Performance Through Better Management''); and
  Program performance, which is contained in this section.
  Together, these sections constitute what GPRA contemplated--the 
Nation's first comprehensive, Government-wide Performance Plan.
  The performance of Government programs is inextricably linked to the 
fiscal and economic environment and the management framework in which 
they operate. The President's commitment to not only balance the budget 
but to invest in the future while improving public management--to do 
more with less--has prompted the Administration to maintain or expand 
programs that demonstrate good performance.
  Often, experts look at performance only across single organizational 
units, such as departments or agencies. In this section, the budget 
categorizes activities according to budget ``functions'' in order to 
group similar programs together and begin to present the relationship 
between their goals. This year, for the first time, the Administration 
relied heavily on key performance measures and annual performance goals 
that were drawn from agency Annual Performance Plans. They were first 
articulated in the context of the long-term goals and objectives in the 
Strategic Plans that agencies submitted to OMB and to Congress in 
September 1997.
  In preparing this budget, the Administration studied the measures and 
goals of the Annual Performance Plans and took a hard look at what the 
public is getting for what it is financing. Thus, the Administration has 
made a good start on the process that GPRA envisioned. Nevertheless, 
more work remains. Agencies will modify Annual Performance Plans to 
reflect changing circumstances and resource levels, the plans will 
provide a backdrop for further discussion about allocating resources, 
and the President's future budgets will contain new and better 
information.
  The Administration looks forward to working with Congress and other 
stakeholders to use these tools to create better performance.

[[Page 144]]



                                   Table 11-1.  FEDERAL RESOURCES BY FUNCTION                                   
                                            (In billions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                                                               Estimate                         
                 Function                     1997   -----------------------------------------------------------
                                             Actual     1998      1999      2000      2001      2002      2003  
----------------------------------------------------------------------------------------------------------------
NATIONAL DEFENSE:                                                                                               
  Spending:                                                                                                     
    Discretionary Budget Authority........     266.2     268.6     271.6     277.0     284.8     288.1     298.0
    Mandatory Outlays:                                                                                          
      Existing law........................      -1.2      -1.0      -1.0      -1.0      -1.0      -1.0      -1.0
  Credit Activity:                                                                                              
    Direct loan disbursements.............  ........         *  ........       0.2       0.3       0.3       0.3
    Guaranteed loans......................  ........         *       0.2       0.2       1.2       1.2       1.2
  Tax Expenditures:                                                                                             
    Existing law..........................       2.1       2.1       2.1       2.1       2.2       2.2       2.2
                                           ---------------------------------------------------------------------
INTERNATIONAL AFFAIRS:                                                                                          
  Spending:                                                                                                     
    Discretionary Budget Authority........      18.2      19.0      20.2      19.2      18.9      18.8      18.8
    Mandatory Outlays:                                                                                          
      Existing law........................      -3.8      -4.5      -4.1      -3.8      -3.6      -3.4      -3.2
  Credit Activity:                                                                                              
    Direct loan disbursements.............       1.8       2.1       2.0       2.8       1.8       1.5       1.5
    Guaranteed loans......................      13.0      12.8      12.2      12.7      13.4      13.9      13.9
  Tax Expenditures:                                                                                             
    Existing law..........................       7.1       7.7       8.3       9.0       9.6      10.3      11.0
    Proposed legislation..................  ........  ........      -0.6      -1.4      -1.5      -1.5      -1.6
                                           ---------------------------------------------------------------------
GENERAL SCIENCE, SPACE, AND TECHNOLOGY:                                                                         
  Spending:                                                                                                     
    Discretionary Budget Authority........      16.6      17.9      18.5      18.5      18.7      19.0      19.1
    Mandatory Outlays:                                                                                          
      Existing law........................         *         *         *         *         *         *         *
  Tax Expenditures:                                                                                             
    Existing law..........................       1.1       2.6       1.4       1.1       0.9       0.8       0.8
    Proposed legislation..................  ........       0.4       0.8       0.6       0.3       0.1         *
                                           ---------------------------------------------------------------------
ENERGY:                                                                                                         
  Spending:                                                                                                     
    Discretionary Budget Authority........       4.2       2.8       3.5       3.2       3.1       3.0       3.0
    Mandatory Outlays:                                                                                          
      Existing law........................      -3.4      -2.8      -4.6      -3.3      -3.3      -3.3      -3.3
  Credit Activity:                                                                                              
    Direct loan disbursements.............       1.0       2.0       1.6       1.4       1.3       1.3       1.5
  Tax Expenditures:                                                                                             
    Existing law..........................       2.0       2.0       2.0       2.1       2.0       2.0       1.9
    Proposed legislation..................  ........        -*       0.4       0.6       0.6       0.8       1.2
                                           ---------------------------------------------------------------------
NATURAL RESOURCES AND ENVIRONMENT:                                                                              
  Spending:                                                                                                     
    Discretionary Budget Authority........      22.4      23.2      22.6      22.3      22.0      22.0      22.3
    Mandatory Outlays:                                                                                          
      Existing law........................       0.1       1.1       0.7       0.8       0.7       0.5       0.7
      Proposed legislation................  ........  ........       0.2       0.2       0.3       0.3       0.3
  Credit Activity:                                                                                              
    Direct loan disbursements.............         *         *         *         *         *         *       0.1
  Tax Expenditures:                                                                                             
    Existing law..........................       1.7       1.7       1.7       1.7       1.7       1.7       1.7
    Proposed legislation..................  ........  ........      -0.1      -0.1      -0.1      -0.1      -0.1
                                           ---------------------------------------------------------------------
AGRICULTURE:                                                                                                    
  Spending:                                                                                                     
    Discretionary Budget Authority........       4.2       4.3       4.1       3.9       3.9       3.9       3.8
    Mandatory Outlays:                                                                                          
      Existing law........................       5.0       6.4       7.0       6.8       5.4       5.4       5.6
      Proposed legislation................  ........  ........      -0.2      -0.3      -0.2      -0.2      -0.2
  Credit Activity:                                                                                              
    Direct loan disbursements.............       6.4       7.4       8.7       8.5       7.7       7.2       6.9

[[Page 145]]

                                                                                                                
    Guaranteed loans......................       4.0       7.3       6.9       6.9       6.9       6.9       6.9
  Tax Expenditures:                                                                                             
    Existing law..........................       0.7       0.7       0.7       0.8       0.8       0.8       0.8
                                           ---------------------------------------------------------------------
COMMERCE AND HOUSING CREDIT:                                                                                    
  Spending:                                                                                                     
    Discretionary Budget Authority........       2.8       3.2       3.3       5.1       2.9       2.9       2.9
    Mandatory Outlays:                                                                                          
      Existing law........................     -17.6       0.2       0.7       7.1       8.2       8.4       7.7
      Proposed legislation................  ........        -*      -0.3      -0.4      -0.4      -0.4      -0.4
  Credit Activity:                                                                                              
    Direct loan disbursements.............       8.7       2.7       1.5       1.4       1.3       1.3       1.3
    Guaranteed loans......................     180.1     190.5     200.7     203.8     205.9     206.4     210.4
  Tax Expenditures:                                                                                             
    Existing law..........................     186.9     183.6     182.7     188.7     196.1     203.5     210.3
    Proposed legislation..................  ........      -0.3      -0.4      -0.4      -0.3      -0.3      -0.4
                                           ---------------------------------------------------------------------
TRANSPORTATION:                                                                                                 
  Spending:                                                                                                     
    Discretionary Budget Authority........      38.7      41.4      41.8      42.3      42.6      43.1      43.7
    Mandatory Outlays:                                                                                          
      Existing law........................       2.3       2.4       2.2       2.2       1.9       1.2       1.8
      Proposed legislation................  ........         *       0.1       0.1       0.1         *        -*
  Credit Activity:                                                                                              
    Direct loan disbursements.............       0.2       0.2       0.2         *         *         *         *
    Guaranteed loans......................       0.3       0.5       0.5       0.5       0.5       0.5       0.5
  Tax Expenditures:                                                                                             
    Existing law..........................       1.4       1.4       1.4       1.5       1.5       1.6       1.6
    Proposed legislation..................  ........  ........         *         *         *         *         *
                                           ---------------------------------------------------------------------
COMMUNITY AND REGIONAL DEVELOPMENT:                                                                             
  Spending:                                                                                                     
    Discretionary Budget Authority........      13.0       8.7       9.2       8.0       7.8       7.7       7.8
    Mandatory Outlays:                                                                                          
      Existing law........................       0.3      -0.1      -0.4      -0.4      -0.1      -0.2      -0.5
      Proposed legislation................  ........  ........         *       0.1       0.1       0.2       0.2
  Credit Activity:                                                                                              
    Direct loan disbursements.............       2.2       2.2       2.0       2.3       2.4       2.3       2.3
    Guaranteed loans......................       0.9       1.8       2.0       2.0       2.2       2.3       2.3
  Tax Expenditures:                                                                                             
    Existing law..........................       1.4       1.7       1.9       2.0       2.0       1.9       1.7
    Proposed legislation..................  ........  ........         *         *       0.1       0.2       0.2
                                           ---------------------------------------------------------------------
EDUCATION, TRAINING, EMPLOYMENT, AND                                                                            
 SOCIAL SERVICES:                                                                                               
  Spending:                                                                                                     
    Discretionary Budget Authority........      42.5      46.4      48.6      49.1      49.4      49.3      48.9
    Mandatory Outlays:                                                                                          
      Existing law........................      13.7      13.1      12.1      11.2      10.9      10.1      12.1
      Proposed legislation................  ........      -0.2       1.8       2.9       3.5       4.0       4.4
  Credit Activity:                                                                                              
    Direct loan disbursements.............      10.3      13.3      13.7      14.5      15.3      16.1      17.0
    Guaranteed loans......................      19.5      25.1      25.7      27.3      28.8      30.4      32.0
  Tax Expenditures:                                                                                             
    Existing law..........................      27.4      33.8      57.3      59.5      61.1      62.9      64.6
    Proposed legislation..................  ........         *       1.0       2.9       3.2       2.8       2.7
                                           ---------------------------------------------------------------------
HEALTH:                                                                                                         
  Spending:                                                                                                     
    Discretionary Budget Authority........      25.1      26.4      27.5      28.3      29.2      30.5      33.0
    Mandatory Outlays:                                                                                          
      Existing law........................     100.9     106.3     115.0     122.4     131.6     141.3     152.4
      Proposed legislation................  ........  ........         *       0.1       0.2      -0.1      -0.1

[[Page 146]]

                                                                                                                
  Credit Activity:                                                                                              
    Direct loan disbursements.............         *  ........  ........  ........  ........  ........  ........
    Guaranteed loans......................       0.1       0.2       0.1         *         *  ........  ........
  Tax Expenditures:                                                                                             
    Existing law..........................      75.5      80.6      85.9      91.5      97.6     104.4     112.1
                                           ---------------------------------------------------------------------
MEDICARE:                                                                                                       
  Spending:                                                                                                     
    Discretionary Budget Authority........       2.6       2.7       2.6       2.6       2.6       2.6       2.7
    Mandatory Outlays:                                                                                          
      Existing law........................     187.4     195.4     204.7     214.2     230.1     232.5     253.4
      Proposed legislation................  ........  ........      -0.1        -*      -0.2      -0.3      -0.3
  Credit Activity:                                                                                              
                                           ---------------------------------------------------------------------
INCOME SECURITY:                                                                                                
  Spending:                                                                                                     
    Discretionary Budget Authority........      22.7      31.9      33.0      36.7      37.8      39.0      40.3
    Mandatory Outlays:                                                                                          
      Existing law........................     191.4     198.4     210.0     219.7     227.6     233.7     243.1
      Proposed legislation................  ........       0.1       1.5       1.8       2.3       2.6       2.7
  Credit Activity:                                                                                              
    Direct loan disbursements.............       0.1       0.1         *         *  ........  ........  ........
    Guaranteed loans......................         *         *       0.1       0.1       0.1       0.1         *
  Tax Expenditures:                                                                                             
    Existing law..........................     101.4     104.0     103.7     105.6     106.5     107.6     109.1
    Proposed legislation..................  ........         *       0.1       0.2       0.3       0.3       0.3
                                           ---------------------------------------------------------------------
SOCIAL SECURITY:                                                                                                
  Spending:                                                                                                     
    Discretionary Budget Authority........       3.5       3.2       3.2       3.2       3.2       3.2       3.2
    Mandatory Outlays:                                                                                          
      Existing law........................     362.3     378.1     392.8     409.2     427.0     446.9     467.4
      Proposed legislation................  ........  ........         *       0.1       0.1       0.2       0.2
  Tax Expenditures:                                                                                             
    Existing law..........................      23.6      24.8      26.0      27.2      28.4      29.8      31.3
                                           ---------------------------------------------------------------------
VETERANS BENEFITS AND SERVICES:                                                                                 
  Spending:                                                                                                     
    Discretionary Budget Authority........      18.9      19.0      18.9      18.9      18.9      18.9      19.6
    Mandatory Outlays:                                                                                          
      Existing law........................      20.7      24.0      24.4      25.4      26.7      30.8      31.9
      Proposed legislation................  ........  ........      -0.2      -0.4      -0.9      -4.3      -3.9
  Credit Activity:                                                                                              
    Direct loan disbursements.............       1.3       2.0       0.2       0.2       0.2       0.2       0.1
    Guaranteed loans......................      24.3      24.8      23.4      22.9      23.4      22.8      23.3
  Tax Expenditures:                                                                                             
    Existing law..........................       3.0       3.1       3.3       3.5       3.7       3.9       4.2
                                           ---------------------------------------------------------------------
ADMINISTRATION OF JUSTICE:                                                                                      
  Spending:                                                                                                     
    Discretionary Budget Authority........      22.9      24.2      25.7      24.6      24.4      24.6      25.1
    Mandatory Outlays:                                                                                          
      Existing law........................       0.1       1.4       0.6       0.3       0.1       0.2       0.2
      Proposed legislation................  ........         *       0.1       0.1         *         *         *
  Credit Activity:                                                                                              
                                           ---------------------------------------------------------------------
GENERAL GOVERNMENT:                                                                                             
  Spending:                                                                                                     
    Discretionary Budget Authority........      11.8      12.5      13.0      12.1      12.2      12.0      12.1
    Mandatory Outlays:                                                                                          
      Existing law........................       0.7       0.4       1.0       1.2       0.9       0.9       1.0
      Proposed legislation................  ........  ........       3.5       4.0       4.7       5.1       5.5
  Credit Activity:                                                                                              
    Direct loan disbursements.............       0.2  ........  ........  ........  ........  ........  ........

[[Page 147]]

                                                                                                                
  Tax Expenditures:                                                                                             
    Existing law..........................      47.2      49.2      51.0      52.9      54.8      56.7      58.5
    Proposed legislation..................  ........  ........         *       0.1       0.1       0.2       0.2
                                           ---------------------------------------------------------------------
NET INTEREST:                                                                                                   
  Spending:                                                                                                     
    Mandatory Outlays:                                                                                          
      Existing law........................     244.0     242.7     241.8     236.5     233.5     227.1     220.6
      Proposed legislation................  ........  ........         *         *         *         *         *
  Tax Expenditures:                                                                                             
    Existing law..........................       0.9       1.0       1.0       1.1       1.1       1.2       1.2
                                           ---------------------------------------------------------------------
ALLOWANCES:                                                                                                     
  Spending:                                                                                                     
    Discretionary Budget Authority........  ........  ........       3.2  ........  ........  ........  ........
    Mandatory Outlays:                                                                                          
  Credit Activity:                                                                                              
                                           ---------------------------------------------------------------------
UNDISTRIBUTED OFFSETTING RECEIPTS:                                                                              
  Spending:                                                                                                     
    Mandatory Outlays:                                                                                          
      Existing law........................     -50.0     -46.4     -42.5     -45.8     -47.2     -55.5     -48.3
  Credit Activity:                                                                                              
                                           =====================================================================
FEDERAL GOVERNMENT TOTAL:                                                                                       
  Spending:                                                                                                     
    Discretionary Budget Authority........     536.3     555.4     570.6     575.0     582.5     588.6     604.2
    Mandatory Outlays:                                                                                          
      Existing law........................   1,053.0   1,115.2   1,160.5   1,202.8   1,249.5   1,275.7   1,341.6
      Proposed legislation................  ........        -*       6.5       8.4       9.8       7.1       8.4
  Credit Activity:                                                                                              
    Direct loan disbursements.............      32.2      32.0      29.8      31.3      30.5      30.2      30.9
    Guaranteed loans......................     242.3     262.9     271.6     276.5     282.5     284.4     290.6
----------------------------------------------------------------------------------------------------------------
* $50 million or less.