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




 
                   4. USER FEES AND OTHER COLLECTIONS

  In addition to collecting taxes and other governmental receipts by the 
exercise of its sovereign powers, the Federal Government earns income 
from its various business-type activities. The term ``user fee'' is 
defined as fees, charges, and assessments levied on a class directly 
benefiting from, or subject to regulation by, a government program or 
activity, to be utilized solely to support the program or activity. In 
addition, the payers of the fee must be limited in the authorizing 
legislation to those benefiting from, or subject to regulation by, the 
program or activity, and may not include the general public or a broad 
segment of the public. The user fee must be authorized for use only to 
fund the specified programs or activities for which they are charged, 
including directly associated agency functions, not for unrelated 
programs or activities and not for the broad purposes of the Government 
or an agency.
  User fees include: collections from non-Federal sources for goods and 
services provided (such as the sale of postage stamps and electricity); 
voluntary payments to social insurance programs (such as Medicare Part B 
premiums); miscellaneous customs fees (such as United States Customs 
Service merchandise processing fees); and certain specific taxes and 
duties (such as Harbor Maintenance and Inland Waterways taxes).
  The term ``user fee'' is not a separate budget category for 
collections. Depending primarily on whether the user charge is based on 
the Government's sovereign power or business-type activity, it may be 
classified as a governmental receipt, or as an offsetting collection. 
User fees classified as governmental receipts are included along with 
the taxes and other governmental receipts discussed in the previous 
chapter. Those fees classified as offsetting collections are subtracted 
from gross outlays. The purpose of this treatment is to produce budget 
totals for receipts, outlays, and budget authority in terms of the 
amount of resources allocated governmentally, through collective 
political choice rather than through the market.
  Offsetting collections are classified into two major categories: 
offsetting receipts, which are deposited in receipt accounts; and 
offsetting collections credited to appropriations (expenditure) 
accounts, which are deposited directly in these accounts and usually can 
be spent without further action by the Congress. While most offsetting 
receipts and collections result from business-like activity or are 
collected from other Government accounts, some result from the 
Government's sovereign or governmental powers and would be classified as 
governmental receipts but are required by law to be treated as 
offsetting. Chapter 24, ``Budget System and Concepts,'' explains the 
budgetary treatment of these collections more fully.

  Not all offsetting collections are user fees. User fees do not include 
collections from other Federal accounts;

------------------------------------------------------------------------

                           Why User Fees?                                                                     
                                                                                                                                                        
                                                                                                                                                        
...  The term ``user fee'' refers to Government charges to those who use a Government good or service or are subject to Government regulation.  
              For example:                                                                                                                              
  .........    --Park entrance fees charged to visitors to national parks                                                                               
  .........    --Meat, poultry, and egg inspection fees                                                                                                 
  .........    --Tennessee Valley Authority proceeds from power sales                                                                                   
  .........    --Proceeds from the lease of Department of Energy buildings and facilities                                                               
  .........    --Flood insurance premiums                                                                                                               
  .........    --Sales of commemorative coins                                                                                                           
                                                                                                                                                        
...  User fees are dedicated to funding part or all of the cost of providing the service or regulation by crediting them to a program account   
              instead of to the general fund of the Treasury.                                                                                           
                                                                                                                                                        
...  User fees are generally designated as offsetting collections or receipts so that they offset the spending they are designated to fund.     
                                                                                                                                                        
...  User fees are different from general revenue, because they are not collected from the general public or broad segments of the public (like 
              income taxes) and they are not used for the general purposes of government (like national defense).                                       
                                                                                                                                                        
...  Users are more willing to support and pay fees when they are dedicated to maintaining or improving the quality of the programs that affect 
              them directly.                                                                                                                            
                                                                                                                                                        
...  Government program managers may be more diligent about collecting and spending fees when funding for their programs is dependent on fees,  
              instead of guaranteed appropriations of general taxpayer money.                                                                           
                                                                                                                                                        
...  Administration policy is to shift to user fee funding wherever appropriate. However, essential government services will continue to be     
              supported by general fund appropriations from the Treasury as necessary.                                                                  
                                                                                                                                                        
...  The Administration's user fee proposals generally require authorizing legislation to authorize the fees first and appropriations action    
              before the fees can actually be collected and spent. This is done to preserve the traditional roles of the authorizing and appropriations 
              committees in Congress and to conform to the ``scoring'' conventions of the Budget Enforcement Act.                                       
                                                                                                                                                        

------------------------------------------------------------------------
[[Page 80]]

                                        Table 4-1.  USER FEE COLLECTIONS                                        
                                            (In millions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                                                               Estimates                        
                                              1997   -----------------------------------------------------------
                                             actual     1998      1999      2000      2001      2002      2003  
----------------------------------------------------------------------------------------------------------------
Governmental receipts:                                                                                          
  Harbor maintenance and inland waterway                                                                        
   fees...................................       832       900       959     1,021     1,087     1,159     1,235
  Agricultural quarantine inspection fees.       115       141       144       148       153       159       163
  Existing FAA user fees \1\..............  ........  ........  ........     5,815     7,066     7,649    11,056
  Proposed FAA user fees..................  ........  ........  ........     1,700     1,700     1,700       850
  Other governmental receipt user fees....       134       215       224       224       225       229       230
                                           ---------------------------------------------------------------------
Total, governmental receipts..............     1,081     1,256     1,327     8,908    10,231    10,896    13,534
                                                                                                                
Offsetting collections:                                                                                         
  Offsetting collections deposited in                                                                           
   receipt accounts:                                                                                            
    Medicare premiums.....................    20,421    20,672    21,511    23,934    26,278    28,816    31,731
    Services charges on foreign military                                                                        
     sales................................    15,128    13,750    12,550    11,790    11,090    10,570     9,770
    Immigration fees......................       992       994     1,400     1,400     1,412     1,430     1,404
    U.S. customs user fees................     1,288     1,184     1,272     1,316     1,363     1,412     1,464
    Medical care and National Serviceman's                                                                      
     Life Insurance Premiums and other                                                                          
     Veterans fees........................       234       915       889       975     1,044     1,117     1,135
    Nuclear Regulatory Commission fees....       459       455       467       469       480       496       510
    Interior park entrance, concessionaire                                                                      
     and other fees.......................       349       392       420       467       454       475       469
    Inspection, grading and other                                                                               
     Agriculture fees.....................       148       170       176       176       176       176       176
    Other collections deposited in receipt                                                                      
     accounts.............................       396       413       428       448       441       441       465
                                           ---------------------------------------------------------------------
  Subtotal, offsetting collections                                                                              
   deposited in receipt accounts..........    39,415    38,945    39,113    40,975    42,738    44,933    47,124
                                                                                                                
  Offsetting collections deposited in                                                                           
   appropriations accounts:                                                                                     
    Postal Service........................    57,407    59,986    63,349    64,850    67,300    69,750    72,200
    Tennessee Valley Authority and other                                                                        
     power marketing......................     8,135     8,829     9,121     9,389     9,557     9,623     9,750
    Housing and commissary fees paid by                                                                         
     military personnel and other defense                                                                       
     related fees.........................     7,909     7,378     7,428     7,402     7,402     7,402     7,402
    Federal Employee and Retiree health                                                                         
     and life insurance benefits..........     4,104     5,895     6,188     6,558     6,952     7,398     7,880
    Pension Benefit Guaranty Corporation                                                                        
     premiums and and other Department of                                                                       
     Labor fees...........................     1,576     1,708     1,740     1,615     1,610     1,652     1,681
    Veterans insurance premiums and other                                                                       
     fees.................................     1,595     1,594     1,563     1,571     1,538     1,502     1,468
    National flood insurance fund premiums     1,108     1,230     1,353     1,448     1,549     1,652     1,761
    Bureau of Engraving and Printing and                                                                        
     U.S. Mint fees.......................     1,086     1,088     1,141     1,165     1,188     1,209     1,236
    Patent and Trademark and fees.........       641       730       836       929     1,098     1,161     1,238
    Other offsetting collections deposited                                                                      
     in appropriations accounts...........     6,580     6,603     7,880     7,520     7,440     7,551     7,666
                                           ---------------------------------------------------------------------
  Subtotal, offsetting collections                                                                              
   deposited in appropriations accounts...    90,141    95,041   100,599   102,447   105,634   108,900   112,282
                                           =====================================================================
Total, offsetting collections.............   129,556   133,986   139,712   143,422   148,372   153,833   159,406
                                                                                                                
Total, user fee collections...............   130,637   135,242   141,039   152,330   158,603   164,729   172,940
                                                                                                                
Memorandum:                                                                                                     
Existing fees:                                                                                                  
  Postal Service..........................    57,407    59,986    63,349    64,850    67,300    69,750    72,200
  Existing Medicare premiums..............    20,421    20,672    21,384    23,255    25,464    27,791    30,497
  Service charges on foreign military                                                                           
   sales..................................    15,128    13,750    12,550    11,790    11,090    10,570     9,770
  Other existing user fees................    37,681    40,808    41,417    47,419    49,551    51,146    55,597
                                           ---------------------------------------------------------------------
    Subtotal, existing user fee                                                                                 
     collections..........................   130,637   135,216   138,700   147,314   153,405   159,257   168,064
User fee proposals........................  ........        26     2,339     5,016     5,198     5,472     4,876
                                                                                                                
----------------------------------------------------------------------------------------------------------------
\1\ Represents proceeds from current law aviation excise taxes which the FAA will convert to cost-based user    
  fees.                                                                                                         

collections deposited in general fund receipt accounts; collections 
associated with credit programs; realizations upon loans and 
investments; interest, dividends, and other earnings; involuntary 
payments to social insurance programs; excise taxes; customs duties; 
fines, penalties, and forfeitures; cost sharing contributions; proceeds 
from asset sales (property, plant, and equipment); Outer Continental 
Shelf receipts; spectrum auction proceeds; and Federal Reserve earnings.
  As shown in Table 4-1, total user fee collections (including those 
proposed in this budget) are estimated to be $141.0 billion in 1999, 
rising to $172.9 billion in 2003. User fee collections by the United 
States Postal Service, Medicare premiums, and service charges on foreign 
military sales are estimated to be 69 percent of all user fee 
collections in 1999. Table 4-3 provides more detail for offsetting 
receipts collected from the public and includes offsetting receipts 
collected from other accounts within the Government.
  The Budget contains a variety of user fee proposals that would yield 
$2.3 billion in 1999 and $22.9 billion from 1999 through 2003. User fee 
proposals establish, increase, or extend fees in order to recover more 
of the costs of providing government services. The proposals would make 
the affected program funding levels dependent on enactment of the user 
fee proposals and subsequently, the actual collections of the fees. 
Regular appropriations have only been requested to fund the

[[Page 81]]

start-up costs associated with these fee proposals. Table 4-2 splits the 
proposals between discretionary and mandatory categories for the 
appropriate scoring under the Budget Enforcement Act of 1997 (BEA). It 
includes user fees classified as offsetting collections and governmental 
receipts.

                         Discretionary Proposals

  The following proposed fees are classified as discretionary because 
the Appropriations Committees are being requested to authorize 
collection of the fees and make them available for expenditure. In some 
cases, authorizing legislation will be proposed either to establish new 
fees or increase existing ones. The proposed authorizing legislation 
will make both the fee collection and spending contingent upon 
appropriations action.

  Collections from the following proposals are to be deposited directly 
in appropriations accounts as offsetting collections:

                         Department of Agriculture

  Animal and Plant Health Inspection Service (APHIS): The budget 
proposes to establish five APHIS fees to cover the cost of:
    Providing animal welfare inspections to recipients of APHIS 
          services such as animal research centers, humane societies, 
          and kennels.
    Issuing biotechnology certificates to firms that manufacture 
          biotechnologically-derived products.
    Licensing, inspecting, and testing veterinary biologics by 
          veterinary biologic companies.
    Inspecting to ensure the garbage fed to swine is properly 
          cooked to avoid contamination to establishments regulated 
          under the Swine Health Protection Act.
    Eradicating the pink bollworm.
  Grain Inspection, Packers and Stockyards Administration (GIPSA) 
licensing fees.--The budget proposes to allow GIPSA to charge the grain 
shippers and handlers using the official inspection system its costs to 
develop, review and maintain standards and methods of testing (such as 
for grain quality and classification) used by the grain industry. In 
addition, an annual licensing fee is proposed to fund GIPSA activities 
that ensure the integrity of the livestock, meat and poultry market and 
marketplace, such as fostering open competition, and protecting 
consumers and businesses from unfair practices.
  Food Safety and Inspection Service meat, poultry and egg products 
inspection fee.--The 1999 Budget proposes a new user fee for USDA's Food 
Safety and Inspection Service (FSIS). Under the proposed fee, the meat, 
poultry and egg products industries would be required to reimburse the 
Federal government for the cost of the salaries and benefits and other 
direct costs for all in-plant inspection. The proposal would transfer 
the cost of Federal inspection services to the industries that directly 
benefit, and would ensure that sufficient resources are available to 
provide the level of in-plant inspection necessary to meet the demands 
of industry. The cost of the user fee would amount to less than one cent 
per pound of meat inspected.
  Natural Resources Conservation Service (NRCS) cost-share fee.--The 
1999 Budget proposes to impose fees for a number of NRCS activities, 
including the sale of soil survey data, maps, and snow survey data to 
private users, engineering designs, soil map interpretations for 
commercial purposes, and irrigation management activities where water 
supplies are not very limited. Fees would also be charged to meet 
requests for the NRCS to expedite soil surveys, watershed planning, and 
other services.
  Farm services fee.--The Administration proposes to allow the Farm 
Services Administration (FSA) to charge fees to cover the full cost of 
collecting, processing, and disseminating information of interest to 
private individuals and companies (crop insurance companies, appraisers, 
and agricultural consultants, etc.), where the provision of information 
is not required to fulfill FSA's mission.

                          Department of Commerce

  National Oceanic and Atmospheric Administration (NOAA), navigational 
assistance fees.--The Administration proposes a fee on U.S. and foreign 
commercial cargo carriers to recover the cost of navigational assistance 
services, such as nautical charting, provided by NOAA. The fee would be 
administered for NOAA by the United States Cost Guard as part of the 
Coast Guard's proposed navigational assistance fee program described 
below.
  NOAA, fisheries management fees.--The Budget proposes a fee of not 
more than one percent of the ex-vessel value of fish harvested by 
commercial fisherman to provide for fisheries management and enforcement 
services.
  Patent and Trademark fees.--The surcharge on patent fees, established 
in the Omnibus Budget Reconciliation Act of 1990 and extended in the 
Omnibus Budget Reconciliation Act of 1993, will expire at the end of 
1998. The expiration of this authority will reduce Patent and Trademark 
Office (PTO) revenue by $182 million in 1999. The Budget proposes 
legislation to extend and increase statutory fees charged for patent 
products and services to ensure that fee revenues continue to cover the 
cost of patent processing and related services.
  Trade promotion services fees.--The Administration proposes to charge 
U.S. businesses for counseling and other promotional services provided 
by the International Trade Administration.

                  Department of Health and Human Services

  Food and Drug Administration (FDA) fees.--The proposal seeks $128 
million in new fees to finance FDA activities such as medical device 
reviews, animal drug approvals, import inspections, food additive 
petition reviews, generic drug application reviews, and fees for 
postmarket surveillance of products.

[[Page 82]]

                                    Table 4-2.  PROPOSED USER FEE COLLECTIONS                                   
                                            (In millions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                          1999- 
           Discretionary fee proposals               1998     1999     2000     2001     2002     2003     2003 
----------------------------------------------------------------------------------------------------------------
Offsetting collections deposited in                                                                             
 appropriations accounts:                                                                                       
  Department of Agriculture:                                                                                    
    Animal and Plant Health Inspection Service                                                                  
     fees........................................  .......       10       10       10       10       10       50
    Grain Inspection, Packers and Stockyards                                                                    
     Administration licensing fees...............  .......       17       21       21       21       21      101
    Food Saftey and Inspection Service, meat,                                                                   
     poultry, and egg products inspection fee....  .......      473      573      573      573      573    2,765
    Natural Resources Conservation Service (NRCS)                                                               
     cost-share fee..............................  .......       10       15       15       25       25       90
    Farm Services Administration, farm service                                                                  
     fee.........................................  .......       10       15       15       25       25       90
  Department of Commerce:                                                                                       
    National Oceanic and Atmospheric                                                                            
     Administration proposals:                                                                                  
      Navigational assistance fee................  .......        3       11       11       11       11       47
      Fisheries management fee...................  .......       20       20       20       20       20      100
    Patent and Trademark Office, patent fees.....  .......      182      189      207      219      228    1,025
    International Trade Administration, trade                                                                   
     promotion fees..............................  .......        6       12       12       12       12       54
  Department of Health and Human Services:                                                                      
    Food and Drug Administration fees............       26      128      128      128      128      128      640
    Health Care Financing Administration Fee                                                                    
     Proposals:                                                                                                 
      Physician, provider, and supplier                                                                         
       enrollment registration fees..............  .......       20       21       21       22       23      107
      Managed care organization application and                                                                 
       renewal fees..............................  .......       37       38       39       41       42      196
      Initial provider certification fees........  .......       10       10       11       11       12       54
      Provider recertification fees..............  .......       52       54       56       58       61      282
      Paper claims submission fees...............  .......      110      114      118      122      126      589
      Duplicate and unprocessable claims fees....  .......       36       37       38       39       41      190
  Department of the Interior: Bureau of Land                                                                    
   Management, hardrock location and maintenance                                                                
   fees..........................................  .......       39       40       41       42       43      205
  Department of Labor: Alien labor certification                                                                
   fee...........................................  .......  .......       40       40       40       40      160
  Department of Transportation:                                                                                 
    Coast Guard--navigational assistance fee.....  .......       35      165      165      165      165      695
    Surface Transportation Board fees............  .......       16       16       16       16       16       80
  Army Corps of Engineers, wetlands permit Fee...  .......        7       14       14       14       14       63
  Federal Emergency Management Administration,                                                                  
   radiological emergency preparedness fees......  .......       13       13       13       13       13       65
  National Transportation Safety Board, Aviation                                                                
   accident investigation fee....................  .......        6        6        6        6        6       30
  Social Security Administration, claimant                                                                      
   representative fees...........................  .......        7        9        9        9        9       43
                                                  --------------------------------------------------------------
    Subtotal, offsetting collections deposited in                                                               
     appropriations accounts.....................       26    1,246    1,571    1,599    1,642    1,663    7,721
                                                                                                                
Offsetting collections deposited in receipt                                                                     
 accounts:                                                                                                      
  Department of Transportation: Federal Railroad                                                                
   Administration--railroad safety inspection                                                                   
   fees..........................................  .......       82       82       82       82       82      410
  Department of the Treasury: Customs merchandise                                                               
   processing fee................................  .......       48       48       48       48       48      240
  Environmental Protection Agency:                                                                              
    Pesticide registration fees..................  .......       16       16       16       16       16       80
    Chemical pre-manufacturing notification fees.  .......        8        8        8        8        8       40
  Nuclear Regulatory Commission, extend NRC fees.  .......      313      314      322      332      342    1,623
  Social Security Administration, claimant                                                                      
   representative fees...........................  .......       12       17       17       17       17       80
                                                  --------------------------------------------------------------
    Subtotal, offsetting collections deposited in                                                               
     receipt accounts............................  .......      479      485      493      503      513    2,473
Total, discretionary user fee proposals..........       26    1,725    2,056    2,092    2,145    2,176   10,194
                                                                                                                
             Mandatory Fee Proposals                                                                            
                                                                                                                
Offsetting collections deposited in                                                                             
 appropriations accounts:                                                                                       
  Department of Health and Human Services:                                                                      
    Medicare cost-based provider audit fees......  .......      395      395      395      395      395    1,975
  Federal Deposit Insurance Corporation state                                                                   
   bank examination fees.........................  .......       89       94       97      101      106      487
                                                  --------------------------------------------------------------
    Subtotal, offsetting collections deposited in                                                               
     appropriations accounts.....................  .......      484      489      492      496      501    2,462
                                                                                                                
Offsetting collections deposited in receipt                                                                     
 accounts:                                                                                                      
  Department of Health and Human Services:                                                                      
    Medicare premiums............................  .......      127      679      814    1,025    1,234    3,879
  Department of the Interior:                                                                                   
    Interior/USDA, entrance and recreation fees..  .......  .......       86       88       88       90      352
    National Park Service, park concession fees..  .......        3        6       12       18       25       64
                                                  --------------------------------------------------------------
    Subtotal, offsetting collections deposited in                                                               
     receipt accounts............................  .......      130      771      914    1,131    1,349    4,295
                                                                                                                
Collections deposited in governmental receipt                                                                   
 accounts:                                                                                                      
  Federal Aviation Administration, proposed user                                                                
   fees..........................................  .......  .......    1,700    1,700    1,700      850    5,950
                                                  ==============================================================
Total, mandatory user fee proposals..............  .......      614    2,960    3,106    3,327    2,700   12,707
                                                  ==============================================================
Total, User Fee Proposals........................       26    2,339    5,016    5,198    5,472    4,876   22,901
----------------------------------------------------------------------------------------------------------------

  Health Care Financing Administration (HCFA).--This proposal would 
establish fees for a variety of activities associated with the Medicare 
Program, including:
  Physician, provider, and supplier enrollment registration fees.--The 
Administration proposes to charge physicians, providers, and suppliers 
an initial enrollment fee and a renewal fee in order to participate in 
the Medicare program. Physicians would be required to re-enroll every 5 
years. Durable medical equipment suppliers, hospitals, skilled nursing 
facilities, home health

[[Page 83]]

agencies, and all other providers would be required to re-enroll every 3 
years. Proceeds from the fee would be used for enrollment costs and 
other contracting activities.
  Managed care organization application and renewal fees.--The Budget 
proposes to charge managed care organizations a fee to cover 100% of the 
cost of reviewing initial applications and renewing annual contracts 
with Medicare. Proceeds from this fee would be used to offset 
administrative costs related to managed care organization application 
and renewals as well as other administrative activities.
  Initial provider certification fee.--The Administration proposes to 
levy a fee on providers (e.g., home health agencies (HHA) and skilled 
nursing facilities (SNF)) who wish to enter the Medicare program. The 
fee would vary by type of provider. Proceeds from this fee would be used 
to offset survey and certification costs.
  Provider recertification fee.--This fee would be levied on providers 
who are recertified for the Medicare program. By statute, SNFs must be 
surveyed every year, HHAs every three years, and other providers about 
once every ten years. The fee would be charged every year to spread the 
costs of the certification program over time. Proceeds from this fee 
would be used to offset survey and certification costs.
  Paper claims submission fee.--Providers would be charged $1.00 for 
every paper claim submitted for payment because of the additional cost 
of processing paper rather than electronic claims. Rural providers and 
very small providers who may not be able to purchase the necessary 
hardware to comply with electronic claims transmission would be exempt 
from the fee. Proceeds from the fee would be used for claims processing 
and other contracting activities.
  Duplicate and unprocessable claims fees.--The budget proposes to 
charge Medicare providers $1.00 for each duplicate and unprocessable 
claim submitted for payment to the Health Care Financing Administration. 
Proceeds from the fee would be used for claims processing and other 
contracting activities.

                        Department of the Interior

  Bureau of Land Management, hardrock mining location and maintenance 
fees.--This proposal would raise and extend the hardrock mining location 
and maintenance fees established in the 1993 Omnibus Budget 
Reconciliation Act beyond 1998.

                            Department of Labor

  Alien labor certification fee.--The proposal would establish a new 
fee, charged to businesses, for processing of alien labor certification 
and attestation applications by the Labor Department. Collection of the 
fee would begin in 2000 with the proceeds offsetting the costs of 
administering the alien labor program. In 2000, regular appropriations 
are required in addition to regular user fees to process the backlog of 
applications that already have been filed.

                       Department of Transportation

  Coast Guard, navigational assistance fees.--The Administration 
proposes to levy a fee on U.S. and foreign commercial cargo carriers for 
the use of Coast Guard navigational assistance services. Navigational 
assistance services include the placement and maintenance of buoys and 
other short-range aids-to-navigation, radio navigation, and vessel 
traffic services. Fishing and recreational vessels would be exempt.
  Surface Transportation Board fees.--The Administration proposes to 
create a fee mechanism to completely offset the expenses of the Surface 
Transportation Board (STB), the successor to the Interstate Commerce 
Commission (ICC). The fees would be collected from those who benefit 
from the continuation of the ICC functions transferred to the STB, e.g., 
railroads and shippers.

                        Department of the Treasury

  Customs merchandise processing fee.--The Budget proposes to allow the 
U.S. Customs Service to collect and spend an increase in the Customs 
Merchandise Processing Fee that will be proposed in authorizing 
legislation subsequent to release of the Budget. The Administration will 
propose to increase the ad valorem rate of the Merchandise Processing 
Fee paid by importers from 0.21 percent to up to 0.25 percent of the 
value of formal cargo entries into the United States. Collection and use 
of the proceeds from the fee increase would be provided for in 
appropriations action, and would be statutorily restricted to the 
modernization of Customs' automated commercial operations.

                          Army Corps of Engineers

  Wetlands permit fees.--The Budget proposes to increase fees charged to 
permit commercial use of wetlands. The proceeds of the fee would be used 
to fund wetland regulatory activities.

                Federal Emergency Management Agency (FEMA)

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

                National Transportation Safety Board (NTSB)

  Aviation accident investigation fees.--To offset a portion of the 
NTSB's growing cost of commercial aviation accident investigations, a 
new aviation accident recovery and investigation fee is proposed. This 
fee, which would be paid by commercial air carriers based on revenue 
flight hours of operation, would collect an estimated $6 million in 
1999.

                      Social Security Administration

  Administration of claimant representative approval and direct payment 
process fees.--The Budget proposes

[[Page 84]]

to impose a fee on persons who represent Supplemental Security Income 
claimants in administrative or judicial proceedings. This fee is 
designed to recover the cost of processing attorney fee agreements and 
determining the allowable charge under the fee petition process. This 
assessment would be imposed only if the claimant is awarded past due 
benefits and a fee for representation is approved by the Social Security 
Administration.

  Collections from the following proposals would be deposited in receipt 
accounts as offsetting receipts:

                       Department of Transportation

  Federal Railroad Administration, railroad safety inspection fee.--The 
rail safety fee would offset costs incurred by the Federal Railroad 
Administration for inspection, research and development and related 
activities to ensure the safe operation of passenger and freight 
railroads. A similar fee was enacted in the Omnibus Budget 
Reconciliation Act of 1990, but expired at the end of 1995.

                      Environmental Protection Agency

  Pesticide registration fees.--The budget proposes to reinstate 
pesticide registration fees that are statutorily suspended through 2001. 
These fees would be used to offset the cost of reviewing applications 
for pesticide registrations, amendments to registrations, and 
experimental use permits.
  Chemical pre-manufacturing notification (PMN) fees.--The 
Administration proposes to eliminate the statutory cap on PMN fees and 
to increase fees charged to chemical producers to recover the cost of 
reviewing notifications of new chemicals prior to production.

                    Nuclear Regulatory Commission (NRC)

  Extend Nuclear Regulatory Commission fees.--Under current law, the NRC 
must recover approximately 100 percent of its costs from licensing, 
inspection, and annual fees charged to its applicants and licensees 
through 1998. Unless the law is extended, the fee coverage requirement 
will revert to 33 percent of NRC's cost of operations. The 
Administration proposes to extend fees at approximately 100 percent of 
NRC's cost of operations through 2003.

                      Social Security Administration

  Administration of claimant representative approval and direct payment 
process fees.--The Budget proposes to impose a fee on persons who 
represent Social Security claimants in administrative or judicial 
proceedings. This fee is designed tor ecover the cost of processing 
attorney fee agreements, determining the allowable charge under the fee 
petition process, and processing the direct payment of attorney fees. 
This assessment would be imposed only if the claimant is awarded past 
due benefits, and a fee for representation is approved by the Social 
Security Administration.

                           Mandatory Proposals

  The following new and increased fees are classified as mandatory 
because they are proposed to be included in authorizing legislation and 
neither the collection or spending of the fee would be contingent upon 
appropriations action.

  Collections from the following proposals are to be deposited directly 
in appropriations accounts as offsetting collections:

                  Department of Health and Human Services

  Medicare cost-based provider audit fees.--The Budget proposes $395 
million in 1999 in fees to charge cost-based health care providers the 
full cost associated with performing annual audits of these providers 
cost reports. The fee would allow more annual audits to be conducted and 
act as a deterrent to inflating reported costs.
  Medicare premiums for retirees under the age of 65 and displaced 
workers.--The Administration proposes to charge premiums based on an 
actuarially fair rate to people between the ages of 62 and 65 and 
displaced workers between 55 and 61 who elect to participate in the 
Medicare buy-in premium based program. This increase in premium 
collections is partially offset by the reduction in premium collections 
due to the Medicare program integrity proposal.

               Federal Deposit Insurance Corporation (FDIC)

  State bank examination fee.--The Administration proposes to require 
the FDIC and the Federal Reserve to assess fees for examinations of bank 
holding companies and state-chartered FDIC-insured banks. The costs of 
such examinations are currently funded from deposit insurance premiums 
and Federal Reserve earnings from monetary policy activities. The FDIC 
fee proceeds would be used to finance the examination operation. The 
Federal Reserve collections do not meet the technical definition of user 
fees, but are considered governmental receipts and are discussed in the 
preceding chapter on governmental receipts.

[[Page 85]]

  Collections from the following proposals are to be deposited in 
receipt accounts as offsetting receipts:

                        Department of the Interior

  Interior and USDA, entrance and recreation fees.--The Administration 
proposes to increase entrance, recreation, and other fees charged by the 
National Park Service and other land management agencies, and to grant 
those agencies permanent authority to use all receipts for facility 
improvements and new repairs.
  National Park Service, park concession fees.--The Administration 
proposes to allow parks to retain all existing and new franchise fees to 
use for park improvements and concessions related activities. This 
proposal would encourage parks to increase returns from concessions 
contracts, and is part of a set of legislative proposal and 
administrative reforms to improve management of the park concessions 
program and increase competition for concessions contracts.

  Collections from the following proposal are to be deposited in receipt 
accounts, as governmental receipts.

                       Department of Transportation

  Federal Aviation Administration (FAA), cost based user fees.--
Beginning in 2000, the Budget assumes that the existing aviation excise 
taxes will be gradually reduced over a five year period and replaced 
with a more efficient system of cost-based user fees charged for FAA 
services. As part of a continuing effort to create a more business-like 
FAA, the Administration will propose legislation to fund the FAA 
entirely with cost-based user fees by 2003.

                           OFFSETTING RECEIPTS

  Table 4-3 itemizes all offsetting collections deposited in receipt 
accounts. These include payments from one part of the Government to 
another, called intra-governmental transactions, and collections from 
the public. These receipts are offset (deducted) from outlays in the 
Federal budget. In total, offsetting receipts are estimated at $352.9 
billion in 1999.

[[Page 86]]



                                     Table 4-3.  OFFSETTING RECEIPTS BY TYPE                                    
                                            (In millions of dollars)                                            
----------------------------------------------------------------------------------------------------------------
                                 1997        1998        1999        2000        2001        2002        2003   
           Source               actual     estimate    estimate    estimate    estimate    estimate    estimate 
----------------------------------------------------------------------------------------------------------------
      INTRAGOVERNMENTAL                                                                                         
        TRANSACTIONS                                                                                            
On-budget receipts:                                                                                             
  Federal intrafund                                                                                             
   transactions:                                                                                                
    Distributed by agency:                                                                                      
      Interest from the                                                                                         
       Federal Financing                                                                                        
       Bank.................       4,171       3,142       2,758       2,518       2,344       2,113       1,853
      Interest on Government                                                                                    
       capital in                                                                                               
       enterprises..........       1,570       1,543       1,321       1,257       1,153       1,033         926
      Other.................       1,969       1,610       1,632       1,741       1,842       1,960       2,078
                             -----------------------------------------------------------------------------------
      Total Federal                                                                                             
       intrafunds...........       7,710       6,295       5,711       5,516       5,339       5,106       4,857
                             -----------------------------------------------------------------------------------
    Trust intrafund                                                                                             
     transactions:                                                                                              
      Distributed by agency:                                                                                    
      Payments to railroad                                                                                      
       retirement...........       3,747       3,784       3,785       3,806       3,692       3,797       3,796
      Other.................           1           1           1           1           1           1           1
                             -----------------------------------------------------------------------------------
      Total trust intrafunds       3,748       3,785       3,786       3,807       3,693       3,798       3,797
                             -----------------------------------------------------------------------------------
    Total intrafund                                                                                             
     transactions...........      11,458      10,080       9,497       9,323       9,032       8,904       8,654
                             -----------------------------------------------------------------------------------
  Interfund transactions:                                                                                       
    Distributed by agency:                                                                                      
      Federal fund payments                                                                                     
       to trust funds:                                                                                          
        Contributions to                                                                                        
         insurance programs:                                                                                    
          Military                                                                                              
           retirement fund..      15,151      15,119      15,724      16,353      17,007      17,688      18,395
          Supplementary                                                                                         
           medical insurance      59,471      59,773      62,171      67,824      74,738      82,489      91,201
            Proposed                                                                                            
             Legislation                                                                                        
             (PAYGO)........  ..........  ..........        -135        -250        -295        -325        -365
          Hospital insurance       4,202       5,414       6,021       5,894       6,192       6,556       6,975
          Railroad social                                                                                       
           security                                                                                             
           equivalent fund..          56          62          57          58          59          60          62
          Rail industry                                                                                         
           pension fund.....         182         192         197         199         202         205         209
          Civilian                                                                                              
           supplementary                                                                                        
           retirement                                                                                           
           contributions....      21,558      21,502      21,813      22,041      21,918      21,770      21,718
          Unemployment                                                                                          
           insurance........         565         517         526         551         619         608         598
          Other                                                                                                 
           contributions....         425         372         435         401         415         406         404
            Proposed                                                                                            
             Legislation                                                                                        
             (PAYGO)........  ..........  ..........           5  ..........  ..........  ..........  ..........
          Miscellaneous                                                                                         
           payments.........         585         515         476         476         478         480         482
                             -----------------------------------------------------------------------------------
        Subtotal............     102,195     103,466     107,290     113,547     121,333     129,937     139,679
                             -----------------------------------------------------------------------------------
      Trust fund payments to                                                                                    
       Federal funds:                                                                                           
        Quinquennial                                                                                            
         adjustment for                                                                                         
         military service                                                                                       
         credits............  ..........  ..........  ..........  ..........       1,182  ..........  ..........
        Other...............       1,049       1,065       1,062       1,085       1,108       1,129       1,153
                             -----------------------------------------------------------------------------------
        Subtotal............       1,049       1,065       1,062       1,085       2,290       1,129       1,153
                             -----------------------------------------------------------------------------------
      Total interfunds                                                                                          
       distributed by agency     103,244     104,531     108,352     114,632     123,623     131,066     140,832
                             -----------------------------------------------------------------------------------
    Undistributed by agency:                                                                                    
      Employer share,                                                                                           
       employee retirement                                                                                      
       (on-budget):                                                                                             
        Civil service                                                                                           
         retirement and                                                                                         
         disability                                                                                             
         insurance..........       8,168       8,676       8,776       9,032       9,400       9,819       9,774
        CSRDI from Postal                                                                                       
         Service............       5,927       6,068       6,014       6,237       6,452       6,715       6,863
        Hospital insurance                                                                                      
         (contribution as                                                                                       
         employer) \1\ .....       1,860       1,902       1,976       2,063       2,117       2,220       2,317
        Postal employer                                                                                         
         contributions to                                                                                       
         FHI................         605         597         620         645         671         698         727
        Military retirement                                                                                     
         fund...............      11,102      10,543      10,563      10,535      10,584      10,750      11,000
        Other Federal                                                                                           
         employees                                                                                              
         retirement.........         111         122         128         132         137         143         145
                             -----------------------------------------------------------------------------------
        Total employer                                                                                          
         share, employee                                                                                        
         retirement (on-                                                                                        
         budget)............      27,773      27,908      28,077      28,644      29,361      30,345      30,826
                             -----------------------------------------------------------------------------------
        Interest received by                                                                                    
         on-budget trust                                                                                        
         funds..............      63,776      65,852      67,206      68,804      70,083      71,648      73,309
          Proposed                                                                                              
           Legislation (non-                                                                                    
           PAYGO)...........  ..........          99         214         457         728         967       1,187
                             -----------------------------------------------------------------------------------
      Total interfund                                                                                           
       transactions                                                                                             
       undistributed by                                                                                         
       agency...............      91,549      93,859      95,497      97,905     100,172     102,960     105,322
                             -----------------------------------------------------------------------------------
    Total interfund                                                                                             
     transactions...........     194,793     198,390     203,849     212,537     223,795     234,026     246,154
                             -----------------------------------------------------------------------------------
  Total on-budget receipts..     206,251     208,470     213,346     221,860     232,827     242,930     254,808
                             -----------------------------------------------------------------------------------

[[Page 87]]

                                                                                                                
Off-budget receipts:                                                                                            
  Interfund transactions:                                                                                       
    Distributed by agency:                                                                                      
      Federal fund payments                                                                                     
       to trust funds:                                                                                          
        Old-age, survivors,                                                                                     
         and disability                                                                                         
         insurance..........       6,880       9,650       8,899       9,363       9,913      10,562      11,267
    Undistributed by agency:                                                                                    
        Employer share,                                                                                         
         employee retirement                                                                                    
         (off-budget).......       6,483       7,155       7,667       8,317       8,831       9,571      10,304
        Interest received by                                                                                    
         off-budget trust                                                                                       
         funds..............      41,214      46,730      51,623      56,966      62,889      69,318      76,337
                             -----------------------------------------------------------------------------------
  Total off-budget receipts:      54,577      63,535      68,189      74,646      81,633      89,451      97,908
                             -----------------------------------------------------------------------------------
Total intragovernmental                                                                                         
 transactions...............     260,828     272,005     281,535     296,506     314,460     332,381     352,716
                             ===================================================================================
  PROPRIETARY RECEIPTS FROM                                                                                     
         THE PUBLIC                                                                                             
Distributed by agency:                                                                                          
  Interest:                                                                                                     
    Interest on foreign                                                                                         
     loans and deferred                                                                                         
     foreign collections....         672         633         596         561         545         602         583
    Interest on deposits in                                                                                     
     tax and loan accounts..         948         920         920         908         908         908         908
    Other interest                                                                                              
     (domestic--civil) \2\ .       5,365       6,098       6,928       7,679       8,428       9,210       9,957
                             -----------------------------------------------------------------------------------
    Total interest..........       6,985       7,651       8,444       9,148       9,881      10,720      11,448
                             -----------------------------------------------------------------------------------
  Royalties and rents.......       1,298       1,321       1,367       1,375       1,396       1,417       1,446
    Proposed Legislation                                                                                        
     (PAYGO)................  ..........  ..........  ..........          -1          -1          -1          -1
  Sale of products:                                                                                             
    Sale of timber and other                                                                                    
     natural land products..         485         499         519         500         487         473         471
    Sale of minerals and                                                                                        
     mineral products.......         792         440          57          56          87         146         181
    Sale of power and other                                                                                     
     utilities..............         812         739         761         761         786         791         781
    Other...................          38          34          51          54          54          53          53
                             -----------------------------------------------------------------------------------
    Total sale of products..       2,127       1,712       1,388       1,371       1,414       1,463       1,486
                             -----------------------------------------------------------------------------------
  Fees and other charges for                                                                                    
   services and special                                                                                         
   benefits:                                                                                                    
    Medicare premiums and                                                                                       
     other charges (trust                                                                                       
     funds).................      20,421      20,672      21,384      23,255      25,464      27,791      30,497
      Proposed Legislation                                                                                      
       (PAYGO)..............  ..........  ..........         127         679         814       1,025       1,234
    Nuclear waste disposal                                                                                      
     revenues...............         596         602         625         632         637         641         652
    Veterans life insurance                                                                                     
     (trust funds)..........         231         224         210         192         174         158         142
    Other \2\ ..............       2,095       1,806       1,621       1,598       1,581       1,596       1,602
      Proposed Legislation                                                                                      
       (non-PAYGO)..........  ..........  ..........          12          17          17          17          17
      Proposed Legislation                                                                                      
       (PAYGO)..............  ..........  ..........          24         119         128         135         144
                             -----------------------------------------------------------------------------------
    Total fees and other                                                                                        
     charges................      23,343      23,304      24,003      26,492      28,815      31,363      34,288
                             -----------------------------------------------------------------------------------
  Sale of Government                                                                                            
   property:                                                                                                    
    Sale of land and other                                                                                      
     real property..........          96         102          63          67          70         613          74
    Military assistance                                                                                         
     program sales (trust                                                                                       
     funds).................      15,128      13,750      12,550      11,790      11,090      10,570       9,770
    Other...................         111          95          82          82          82          82          63
                             -----------------------------------------------------------------------------------
    Total sale of Government                                                                                    
     property...............      15,335      13,947      12,695      11,939      11,242      11,265       9,907
                             -----------------------------------------------------------------------------------
  Realization upon loans and                                                                                    
   investments:                                                                                                 
    Foreign military credit                                                                                     
     sales..................         653         553         391         261         186         134          85
    Negative subsidies and                                                                                      
     downward estimates.....       2,395       2,565       6,576       2,530       2,319       2,270       2,436
      Proposed Legislation                                                                                      
       (non-PAYGO)..........  ..........  ..........          50  ..........  ..........  ..........  ..........
      Proposed Legislation                                                                                      
       (PAYGO)..............  ..........  ..........  ..........         241         234         233         237
    Repayment of loans to                                                                                       
     United Kingdom.........         108         110         112         115         117          50          57
    Other...................         131          73          38          40          44          29          30
                             -----------------------------------------------------------------------------------
    Total realization upon                                                                                      
     loans and investments..       3,287       3,301       7,167       3,187       2,900       2,716       2,845
                             -----------------------------------------------------------------------------------
  Recoveries and refunds \2\                                                                                    
   .........................       2,831       3,361       3,863       3,996       4,204       5,325       4,078
    Proposed Legislation                                                                                        
     (non-PAYGO)............  ..........  ..........  ..........  ..........  ..........  ..........         285
    Proposed Legislation                                                                                        
     (PAYGO)................  ..........  ..........          40         323         332         333         331
  Miscellaneous receipt                                                                                         
   accounts \2\ ............       1,621       2,518       2,070       2,117       2,148       2,186       2,231
    Proposed Legislation                                                                                        
     (PAYGO)................  ..........  ..........         -21         -22         -23         -24         -24
                             -----------------------------------------------------------------------------------
  Total proprietary receipts                                                                                    
   from the public                                                                                              
   distributed by agency....      56,827      57,115      61,016      59,925      62,308      66,763      68,320
                             -----------------------------------------------------------------------------------

[[Page 88]]

                                                                                                                
Undistributed by agency:                                                                                        
  Other interest: Interest                                                                                      
   received from Outer                                                                                          
   Continental Shelf escrow                                                                                     
   account..................           6       1,120          30  ..........  ..........  ..........  ..........
  Rents and royalties on the                                                                                    
   Outer Continental Shelf:                                                                                     
    Rents and bonuses.......       1,259       1,652         983         908         877         789         725
    Royalties...............       3,452       3,011       3,204       3,044       3,257       3,488       3,161
  Sale of major assets......  ..........       4,424         728  ..........  ..........  ..........  ..........
                             -----------------------------------------------------------------------------------
  Total proprietary receipts                                                                                    
   from the public                                                                                              
   undistributed by agency..       4,717      10,207       4,945       3,952       4,134       4,277       3,886
                             -----------------------------------------------------------------------------------
Total proprietary receipts                                                                                      
 from the public \3\ .......      61,544      67,322      65,961      63,877      66,442      71,040      72,206
                             ===================================================================================
   OFFSETTING GOVERNMENTAL                                                                                      
          RECEIPTS                                                                                              
Distributed by agency:                                                                                          
  Regulatory fees...........       3,057       2,927       3,127       3,184       3,237       3,311       3,365
    Proposed Legislation                                                                                        
     (non-PAYGO)............  ..........  ..........         385         386         394         404         414
  Other.....................          76          70          70          70          70          70           8
Undistributed by agency:                                                                                        
  Spectrum auction proceeds.      11,006       2,216       1,833       4,889       4,841      11,354       3,300
                             -----------------------------------------------------------------------------------
  Total offsetting                                                                                              
   governmental receipts....      14,139       5,213       5,415       8,529       8,542      15,139       7,087
                             ===================================================================================
Total offsetting receipts...     336,511     344,540     352,911     368,912     389,444     418,560     432,009
----------------------------------------------------------------------------------------------------------------
\1\ Includes provision for covered Federal civilian employees and military personnel.                           
\2\ Includes both Federal funds and trust funds.                                                                
\3\ Consists of:                                                                                                


                                                                                                                
                                 1997        1998        1999        2000        2001        2002        2003   
                                actual     estimate    estimate    estimate    estimate    estimate    estimate 
                                                                                                                
    On budget:                                                                                                  
      Federal funds.........      24,524      31,163      30,238      26,430      27,370      29,932      28,978
      Trust funds...........      37,002      36,139      35,691      37,410      39,035      41,071      43,191
    Off-budget..............          18          20          32          37          37          37          37