[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.