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


 
                         28.  GENERAL GOVERNMENT

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                         Table 28-1.  FEDERAL RESOURCES IN SUPPORT OF GENERAL GOVERNMENT                        
                                            (In millions of dollars)                                            
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                                                                               Estimate                         
               Function 800                   1997   -----------------------------------------------------------
                                             Actual     1998      1999      2000      2001      2002      2003  
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Spending:                                                                                                       
  Discretionary Budget Authority..........    11,814    12,489    12,968    12,125    12,174    12,029    12,122
  Mandatory Outlays:                                                                                            
    Existing law..........................       692       351     1,033     1,165       907       921       965
    Proposed legislation..................  ........  ........     3,502     4,033     4,681     5,083     5,480
Credit Activity:                                                                                                
  Direct loan disbursements...............       223  ........  ........  ........  ........  ........  ........
Tax Expenditures:                                                                                               
  Existing law............................    47,220    49,230    51,050    52,920    54,770    56,655    58,520
  Proposed legislation....................  ........  ........        42        79       124       165       197
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  The General Government function encompasses the central management 
activities of the executive and legislative branches. Its major 
activities include Federal finances (tax collection, public debt, 
currency and coinage, Government-wide accounting), personnel management, 
and general administrative and property management.
  Four agencies are responsible for these activities: the Treasury 
Department (for which the budget proposes $12.3 billion), the General 
Services Administration ($142 million), the Office of Personnel 
Management ($187 million), and the Office of Management and Budget in 
the Executive Office of the President ($59 million).

Department of the Treasury

  Treasury is the Federal Government's financial agent. It produces and 
protects the Nation's currency; helps set domestic and international 
financial, economic, and tax policy; enforces economic embargoes and 
sanctions; regulates financial institutions and the alcohol, tobacco, 
and firearms industries; manages the Federal Government's financial 
accounts; and protects citizens and commerce against those who 
counterfeit money, engage in financial fraud, violate our borders, and 
threaten our leaders. In 1999, Treasury will seek to collect an 
estimated $1.7 trillion in tax and tariff revenues due under the law; 
make over 70 percent of the 900 million payments that it issues 
electronically; issue $2 trillion in marketable securities and savings 
bonds to finance the Government's operations and increase citizens' 
savings; and produce 10 billion Federal Reserve Notes, 15 billion 
postage stamps, and 13 billion coins.
  The Internal Revenue Service (IRS), for which the budget proposes $8.3 
billion, is the Federal Government's main revenue collector. Its mission 
is to collect the proper revenue at the least cost. The budget proposal 
for the IRS seeks to improve customer service in order to provide 
taxpayers who need to contact the IRS with various communication options 
and ensure that the IRS treats each taxpayer as a customer. To help 
reach this goal, the IRS will revamp its past performance measures, 
eliminating those that undermine the fair treatment of taxpayers.
  In 1999, the IRS will:
   continue its efforts to improve customer service mainly 
          through telephone assist

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          ance, answering at least 86 percent of taxpayer calls, up from 
          65 percent in 1997, with an accuracy rate of 96 percent for 
          tax law inquires;
   expand its problem resolution program by decreasing the 
          number of days it takes to resolve a taxpayer's account 
          problem in district offices to 35, from 36 in 1997;
   collect over $1.64 trillion in net revenue--78 percent of it 
          electronically, a substantial increase from 41 percent in 
          1997;
   electronically process 19.5 percent of the expected 212 
          million total returns, both individual and business; (Of 
          those, 5.9 million will use Telefile, which allows taxpayers 
          to file a simple tax return over the telephone in under 10 
          minutes.)
   process electronic returns with a 99 percent accuracy rate 
          while processing paper returns with a 95 percent accuracy 
          rate;
   process refunds on paper returns in 40 days and electronic 
          returns in 21 days; and
   ensure that its computers can process the year 2000 change by 
          converting, testing, and certifying its computer code by 
          October 1999.
  In 1999, Treasury's Financial Management Service will:
   continue working to improve the management of the Nation's 
          finances, saving $33 million by reducing the number of paper 
          checks issued, and process 65 percent of all collections 
          electronically and increase the Government-wide collection of 
          delinquent debt by $95 million compared to 1995.
  In 1999, Treasury's Bureau of Public Debt will:
   introduce a new series of inflation-indexed savings bonds of 
          various denominations;
   automate the securities auction process and announce auction 
          results within one hour 90 percent of the time; and
   maintain a 10-year average holding period for savings bonds.
  In 1999, Treasury's Bureau of Engraving and Printing and U.S. Mint 
will:
   introduce a redesigned dollar coin and a new series of 
          quarters featuring emblematic images of the States;
   incorporate new security features into the twenty dollar 
          bill;
   ship all numismatic coins within four weeks of order date; 
          and
   maintain a stamp spoilage rate of no more than 11 percent.

General Services Administration (GSA)

  GSA has traditionally focused on its role as the central provider of 
supplies, general administrative services, telecommunication services, 
and office space to Federal agencies. In 1999, revenues from its various 
business lines will approach an estimated $13 billion. Under the Federal 
Property and Administrative Services Act of 1949 and subsequent laws, 
GSA also plays a policy leadership role with respect to property 
management and general administrative services.
  Over the past two years, GSA has given greater attention to that 
leadership role. It has developed a new Federal management model, 
focusing on performance measurement, accountability for agencies and 
employees, and the effective use of technology in changing work 
environments. GSA has established inter-agency groups to advise it on 
the policies, best practices, and performance benchmarks appropriate for 
each administrative service and on the information systems to report 
performance. GSA's ultimate goal is a Federal Government in which 
agencies receive the administrative services they need according to the 
best practices known and at the least cost, internal regulation, and 
burden. When fully developed, GSA's policy role can potentially 
influence over $50 billion a year for property management and 
administrative services and the management of assets valued at nearly 
$500 billion.
  GSA also provides expertly managed space, products, and services to 
support the administrative needs of Federal agencies. It has 
aggressively responded to the changing needs of its customer agencies by 
working to trans

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form itself into a market-driven, customer-oriented agency. GSA will 
seek to exceed all Government-wide performance goals and industry 
benchmarks for administrative services as they are developed or 
identified. In the meantime, its overall goals as a service provider are 
to exceed its customer agencies' expectations for price, service and 
quality.
  In 1999,
   the Public Buildings Service will deliver 88 percent of its 
          construction and repair projects on schedule and within 
          budget, up from 80 percent in 1997;
   the percentage of GSA-sponsored child care centers that meet 
          national accreditation standards will increase to 75 percent, 
          compared to an average national accreditation percentage of 
          less than 10 percent;
   the Federal Technology Service projects a monthly line charge 
          for local telephone service of $20.77, a 28-percent cut from 
          1994 rates; and
   the Federal Supply Service will lease automobiles and other 
          motor vehicles to Federal agencies at rates that average 20 
          percent below comparable commercial lease rates.
  Because GSA provides services on a reimbursable basis, the budgets of 
the agencies fund most of GSA's activities. In 1999, for example, the 
budget proposes an appropriation of $142 million for GSA, principally 
for its Office of Government-wide Policy and the Office of the Inspector 
General, but it projects obligations of nearly $14 billion through GSA's 
revolving funds. In addition, GSA will administer contracts through 
which agencies will buy over $14 billion in goods and services outside 
of GSA's revolving funds.

Office of Personnel Management (OPM)

  OPM provides human resource management leadership and services, based 
on merit principles, to Federal agencies and employees. It provides 
policy guidance, advice, and direct personnel services and systems to 
the agencies. OPM also operates a Nation-wide job information and 
application system every hour of every day, publicly available through 
the Internet and other electronic and traditional sources at convenient 
and accessible locations. OPM develops and administers compensation 
systems for both blue-collar and white-collar employees. In addition, 
OPM provides fast, friendly, accurate, and cost effective retirement, 
health benefit, and life insurance services to Federal employees, 
annuitants, and agencies.
   OPM reduced the average time to process an annuity 
          application from 83 days in 1994 to 39 days in 1997, and has 
          targeted a goal of 35 days by 1999.
   OPM reduced customer call wait time for annuity inquiries 
          from 5.1 minutes in 1996 to 3.3 minutes in 1997 and will 
          strive to make further reductions in 1999.
  But perhaps OPM's most important function is administering the Federal 
civil service merit systems, covering nearly 1.5 million employees, 
which includes recruiting, examining, and promoting people on the basis 
of their knowledge and skills--regardless of race, religion, sex, 
political influence, or other non-merit factors. OPM runs an aggressive 
oversight program, identifying opportunities for improving Federal 
personnel policies and programs and helping agencies meet mission goals 
by effectively recruiting, developing, and utilizing employees. In 1997, 
OPM conducted Nation-wide reviews of eight major agencies, finding few 
serious problems and discovering many ``best practices'' that were 
shared with other agencies. OPM encourages maximum employment and 
advancement opportunities in the Federal service for disabled veterans 
and those qualified for veteran's preference (26 percent of today's 
employees). OPM's policies and programs seek to encourage diversity in 
the Federal workforce.
   In 1999, OPM will help agencies raise the levels of under-
          represented groups by two percent over the 1997-1998 levels.
  Likewise, OPM helps dislocated and surplus employees by assisting 
agencies with career transition planning and, when vacancies arise, 
ensuring that dislocated and surplus employees receive hiring 
preference. In 1996, over 11,000 employees found employment through this 
process. With its Director chairing the National Partnership Council, 
OPM supports

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and promotes labor-management partnerships throughout the Executive 
branch--partnerships that help agencies deliver the highest-quality 
services to the American people. In 1996, such partnership councils 
represented 70 percent of Federal employees in bargaining units, and 
1997 survey data indicate continued growth and positive perceptions of 
such partnerships.
   In 1999, OPM will continue to foster more such partnerships 
          and help those that are having problems.
  Finally, OPM helps Federal program managers carry out their personnel 
management responsibilities through a range of programs, training, and 
performance management designed to develop the most effective Federal 
employee. Other Federal agencies with personnel management 
responsibilities are the Merit Systems Protection Board, the Office of 
Special Counsel, the Office of Government Ethics, and the Federal Labor 
Relations Authority.

Office of Management and Budget (OMB)

  OMB helps the President carry out his constitutional and statutory 
duties. It helps the President create policy relating to receipts and 
expenditures, regulations, information, and legislation; and manage the 
Executive Branch in the faithful execution of laws, policies, and 
programs. OMB also provides the President with the highest-quality 
analysis and advice on a broad range of topics.
  OMB advocates the appropriate allocation and effective use of 
Government resources. OMB helps the President prepare the Federal budget 
and oversee its execution in the departments and agencies. In helping 
formulate the President's spending plans, OMB examines the effectiveness 
of agency programs, policies, and procedures; assesses competing funding 
demands among agencies; and provides policy options. OMB works to ensure 
that proposed legislation, and agency testimony, reports, and policies 
are consistent with Administration policies. OMB focuses particular 
attention on managing the processes for coordinating and integrating 
policies for interagency programs. On behalf of the President, OMB often 
presents and justifies major policies and initiatives related to the 
budget and Government management before Congress.
  OMB has a central role in developing, overseeing, coordinating, and 
implementing Federal procurement, financial management, information, and 
regulatory policies. OMB helps to strengthen administrative management, 
develop better performance measures, and improve coordination among 
Executive Branch agencies.
  In 1999, OMB will
   produce the President's annual budget documents in a timely, 
          accurate manner; and
   ensure that agencies meet a number of key objectives, 
          including: achieving compliance with year 2000 computer 
          changes; receiving clean audit opinions on annual financial 
          statements; improving the analysis of regulatory alternatives; 
          ensuring that annual performance plans are fully integrated 
          with budget submissions; and effectively using inter-agency 
          working groups on a wide range of Government functions.

Tax Incentives

  The Federal Government provides significant tax benefits for State and 
local governments. It permits tax-exempt borrowing for public purposes, 
costing $77 billion in Federal revenue losses over five years, from 1999 
to 2003 (the budget describes tax-exempt borrowing for non-public 
purposes in the write-ups on other Government functions). In addition, 
taxpayers can deduct State and local income taxes against their Federal 
income tax, costing $182 billion over five years. Corporations with 
business in Puerto Rico receive a special tax credit, costing an 
estimated $15 billion over five years. Finally, up to certain limits, 
taxpayers can credit State death taxes against Federal estate taxes, 
costing $24 billion over five years.