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


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                      OTHER TECHNICAL PRESENTATIONS

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                    17. TRUST FUNDS AND FEDERAL FUNDS

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

                           Federal Funds Group

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

                            Trust Funds Group

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

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

                     Income and Outgo by Fund Group

  Table 17-1 shows income, outgo, and surplus or deficit by fund group 
and adds them to derive the total unified budget receipts, outlays, and 
surplus or deficit. The estimates assume enactment of the President's 
budget proposals. Income consists mostly of governmental receipts 
(primarily income, payroll, and excise taxes). It also includes 
proprietary receipts (derived from business-like transactions with the 
public) and interfund collections (receipts by one fund of payments from 
a fund in the other fund group) that are deposited in receipt accounts. 
Outgo consists of payments made to the public and/or to a fund in the 
other fund group.
  Two types of transactions are treated specially. First, income and 
outgo for a fund group exclude transactions between funds within the 
same fund group. \2\ These intrafund transactions constitute outgo and 
income for the individual funds that make and collect the payments. 
However, because the totals for each fund group measure its transactions 
with the public and the other fund group, intrafund transactions must be 
subtracted from the sum of the income and outgo of all individual funds 
within the fund group to calculate the consolidated income and outgo for 
the fund group as a whole. Second, income excludes collections that, by 
law, are offset against outgo in expenditure accounts instead of being 
deposited in receipt accounts. \3\ It would be conceptually appropriate 
to classify these collections as income, but at present the data are not 
tabulated centrally for both fund groups. Consequently, they are offset 
against outgo in Table 17-1 and are not shown separately.
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  \2\ For example, the railroad retirement trust funds pay the 
equivalent of social security benefits to railroad retirees, in addition 
to the regular railroad pension. These benefits are financed by a 
payment from the Federal Old-Age and Survivors Insurance trust fund to 
the railroad retirement trust funds. The payment and collection are 
deducted so that total trust fund income and outgo measure disbursements 
to the public and to Federal funds.
  \3\ For example, postage stamp fees are deposited as offsetting 
collections in the Postal Service fund. As a result, the Fund's outgo is 
disbursements net of collections.
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  Some funds in the Federal funds group and some trust funds are 
authorized to borrow from the general fund of the Treasury. \4\ Borrowed 
funds are not recorded as receipts and are excluded from the income of 
the fund. The borrowed funds finance outlays by the fund in excess of 
available receipts. Subsequently, fund receipts are transferred from the 
fund to the general fund in repayment of the borrowing. The repayment is 
not recorded as an outlay of the fund or included in fund outgo. \5\
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  \4\ For example, the Bonneville Power Administration Fund, a revolving 
fund in the Department of Energy, is authorized to borrow from the 
general fund, and the Black Lung Disability Trust Fund in the Department 
of Labor is authorized to receive appropriations of repayable advances 
from the general fund (a form of borrowing).
  \5\ Prior to the 1998 budget, trust fund borrowing was included in 
Federal fund outgo (as a payment from the general fund) and trust fund 
income, and the repayments were included in trust fund outgo and Federal 
fund income (as a general fund receipt). The treatment of trust fund 
borrowing and repayment was revised to make it parallel to the treatment 
of borrowing by Federal fund accounts from the general fund, borrowing 
by the general fund from Government accounts (including trust funds), 
and borrowing by the Government from the public.
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  In order to derive unified budget receipts and outlays, Table 17-1 
adds Federal funds and trust funds income and outgo, respectively, and 
subtracts offsetting receipts from each. Offsetting receipts are income 
for the fund group that receives them, but instead of being part of 
receipts in the unified budget, they are deposited in receipt accounts 
and are offset against outgo to calculate unified budget outlays. The 
reason for subtracting offsetting receipts is twofold.
     Offsetting receipts from the public.--Unified budget 
          receipts measure the amount of collections raised by the 
          Government in its sovereign capacity, and unified budget 
          outlays measure the amount of resources allocated by the 
          Government in a non-market capacity. Voluntary business-like 
          collections from the public need to be subtracted from the 
          income and outgo of the fund groups, respectively, to derive 
          these amounts.
     Offsetting receipts from other fund groups.--Unified budget 
          receipts and outlays measure the Government's net transactions 
          with the public. Interfund receipts need to be subtracted from 
          the income and outgo of the fund groups, respectively, to 
          derive these amounts.

    Which Fund Group is Responsible for Past Unified Budget Deficits?

  Trust fund income exceeded outgo by $126 billion in 1997. As mandated 
by law, this surplus was invested in Federal securities, and thereby 
partially offset Government borrowing from the public to finance the 
$148 billion Federal funds deficit. The sum of the trust fund surplus 
and the Federal fund deficit equals the unified deficit, which was $22 
billion. This pattern of trust fund surpluses and Federal fund deficits 
has persisted for the past 3\1/2\ decades, and as shown in Table 17-1, 
it is expected to continue. However, enactment of the Balanced Budget 
Act, along with strong economic growth, and the proposals in this Budget 
are projected to produce unified budget surpluses beginning in 1999, and 
reduce the Federal funds deficit to less than $120 billion by 2003.
  Historically, the combination of large and growing trust fund 
surpluses and Federal fund deficits led to claims and counterclaims 
about the causes of unified deficits, and by implication, which part of 
the budget should be the focus of deficit-reduction efforts. The two 
main views were illustrated by the contrary positions expressed in 
reports published several years ago by two Congressional branch 
agencies--the Congressional

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                      Table 17-1.  RECEIPTS, OUTLAYS, AND SURPLUS OR DEFICIT BY FUND GROUP                      
                                            (In billions of dollars)                                            
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                                                                            Estimate                            
                                        1997   -----------------------------------------------------------------
                                      actual       1998       1999       2000       2001       2002       2003  
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Receipts:                                                                                                       
  Federal funds cash income:                                                                                    
    From the public................   1,047.9    1,085.8    1,128.2    1,155.5    1,198.3    1,263.9    1,304.8 
    From trust funds...............       1.0        1.1        1.1        1.1        2.3        1.1        1.2 
                                    ----------------------------------------------------------------------------
        Total, Federal funds cash                                                                               
         income....................   1,049.0    1,086.8    1,129.2    1,156.6    1,200.6    1,265.0    1,306.0 
  Trust funds cash income:                                                                                      
    From the public................     607.0      644.6      685.9      710.4      739.3      771.6      802.7 
    From Federal funds:                                                                                         
      Interest.....................     106.6      114.2      120.6      126.2      133.7      141.9      150.8 
      Other........................     141.7      146.7      150.4      159.9      169.4      180.4      192.1 
                                    ----------------------------------------------------------------------------
        Total, trust funds cash                                                                                 
         income....................     855.4      905.5      956.9      996.5    1,042.4    1,093.9    1,145.6 
  Offsetting receipts..............    -325.1     -334.5     -343.4     -359.6     -380.4     -409.7     -423.4 
                                    ----------------------------------------------------------------------------
    Total, unified budget receipts.   1,579.3    1,657.9    1,742.7    1,793.6    1,862.6    1,949.3    2,028.2 
                                                                                                                
Outlays:                                                                                                        
  Federal funds cash outgo.........   1,196.9    1,245.5    1,290.7    1,321.3    1,349.0    1,376.3    1,425.7 
  Trust funds cash outgo...........     729.4      756.8      785.9      823.4      865.9      892.9      943.1 
  Offsetting receipts..............    -325.1     -334.5     -343.4     -359.6     -380.4     -409.7     -423.4 
                                    ----------------------------------------------------------------------------
    Total, unified budget outlays..   1,601.2    1,667.8    1,733.2    1,785.0    1,834.4    1,859.6    1,945.4 
                                                                                                                
Surplus or deficit (-):                                                                                         
  Federal funds....................    -147.9     -158.7     -161.5     -164.6     -148.4     -111.3     -119.7 
  Trust funds......................     126.0      148.7      171.0      173.2      176.6      201.0      202.5 
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    Total, unified surplus/deficit                                                                              
     (-)...........................     -21.9      -10.0        9.5        8.5       28.2       89.7       82.8 
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Note: Receipts include governmental, interfund, and proprietary receipts. They exclude intrafund receipts, which
  are offset against intrafund payments so that cash income and cash outgo are not overstated.                  

Research Service (CRS) and the General Accounting Office (GAO).

      CRS: ``The treatment of trust fund programs in the Federal budget 
       is complicated and confusing. As a result, the impact of these 
       programs on the financial condition of the Government is often 
    misunderstood. Perhaps the biggest misconception today is that these 
      programs are offsetting the Federal deficit by $124 billion and 
    thereby masking the true size of the deficit. Although attention has 
       been drawn to the large social security surpluses, trust fund 
     programs overall actually have been running cash deficits . . . On 
         the whole, trust fund programs ran deficits in their cash 
       transactions with the public in 19 of the last 21 years.'' \6\
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  \6\ Congressional Research Service, Trust Funds and the Federal 
Deficit, February 26, 1990, summary.

           GAO: ``As the unified budget is presently structured, the 
    surpluses in the trust funds are merged with the rest of the budget, 
    effectively masking the magnitude of those surpluses and the size of 
     the deficit in the rest of the government . . . Because the trust 
    fund surpluses--especially those in Social Security--are growing so 
        rapidly, the merger of trust and nontrust funds creates the 
         erroneous impression that the deficit is under control and 
    declining. In reality, the nontrust fund deficit has grown from $222 
     billion in 1987 to $255 billion in 1988 and is projected to reach 
      $283 billion or more in 1989. The fact is that increased payroll 
      taxes, levied to meet the long-term needs of the Social Security 
    system, are being used to finance the current operating costs of the 
                              government.'' \7\
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  \7\ General Accounting Office, Managing The Cost Of The Government, 
October 1989, p. 9.

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

  The Record Based on Transactions With the Public.--The unified surplus 
or deficit measures the Federal Government's net transactions with the 
public. The deficit can be reduced or the surplus increased only by 
increasing receipts from the public or by decreasing payments to the 
public. This is true whether the transactions with the public are by 
trust funds or by Federal funds. It can be said, therefore, that a fund 
group contributes to lower deficits or higher surpluses if it collects 
more from the public than it pays to the public, and that it contributes 
to higher

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deficits or lower surpluses if it pays more to the public than it 
collects from the public.
  Measured on this basis, both fund groups have been responsible for 
past unified deficits. As shown in Chart 17-1, payments to the public by 
both fund groups exceeded their income from the public in most years 
from 1960 to 1997. Trust funds were in deficit in 34 of the 38 years, 
and Federal funds were in deficit 33 years. Trust funds were responsible 
for $1.2 trillion of the cumulative unified deficits over the period, 
and Federal funds were responsible for the other $2.3 trillion. Under 
the President's budget proposal, the trust funds deficit in its 
transactions with the public would decrease through 1999 and then 
increase each year thereafter. In contrast, Federal fund transactions 
with the public were in surplus in 1997. This Federal funds surplus is 
estimated to grow to $222 billion by 2003.
  It may be surprising that trust funds are adding to the unified 
deficit or reducing the unified surplus when they are simultaneously 
reporting large surpluses and balances in their total transactions. The 
experience varies among the individual trust funds. Consider the 
transactions of the public with the following eight major trust funds. 
Together, these funds ran a $126 billion surplus in 1997--100 percent of 
the total trust fund surplus--and held $1.4 trillion of balances--95 
percent of the balance for all trust funds combined. Nevertheless, from 
1960 to 1997, the combined payments to the public by these trust funds 
exceeded their combined income from the public by $1.1 trillion. (The 
status of fund tables in the Budget Appendix and in Table 3 of this 
chapter, unlike this discussion, which only considers transactions with 
the public, reflect all of the trust funds' transactions, including 
interest received from Federal funds and other interfund collections.)
     The Highway Trust Fund is financed entirely by earmarked 
          taxes on gasoline and other fuels and by interest earnings. 
          Tax receipts exceeded the Fund's spending in more than half 
          the years between 1960 and 1997. These surpluses were invested 
          in Treasury securities, and together with the interest 
          earnings, were used to finance spending in other years when 
          spending exceeded tax collections. Although Highway Trust Fund 
          receipts exceed spending, the trust fund is authorized to 
          obligate, and currently has obligated almost one and one-half 
          years' worth of estimated future receipts. The current $22 
          billion balance is enough to fund almost one year's spending.
     The two Social Security Trust Funds, Federal Old-Age and 
          Survivors Insurance and Federal Disability Insurance, are 
          financed primarily by payroll taxes. However they also receive 
          additional income from the general fund in the form of 
          interest earnings, Federal agencies' payments as employers for 
          the social security benefits earned by military and Federal 
          civilian employees, and Treasury payments for part of the 
          estimated amount of income 

          
          

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taxes paid on social security benefits. In 19 of the 26 years from 1960 through 1985, social security payments to the public exceeded payroll taxes. The Funds' cumulative payments to the public exceeded their cumulative collections from the public by $2 billion through 1978, and rose to $60 billion in 1985.ï¿½1A\8\N Largely due to the Greenspan Commission reforms, in 1986 social security began to run a surplus in its transactions with the public. In 1990 social security taxes exceeded payments to the public by $36 billion. Since then, social security taxes have continued to exceed payments to the public, but only by about half that amount each year.


  \8\ If balances of net transactions with the public are credited with 
a prorated share of the Funds' interest earnings, the adjusted 
cumulative balance would still have turned negative, but not until 1984, 
and it would have remained negative until 1988.
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     The Hospital Insurance (HI) Trust Fund (Medicare Part A) 
          had a balance of $116 billion as of the end of 1997. This 
          reflects interest and other interfund collections as well as 
          collections from the public. However, when considering only 
          payroll tax income, benefit payments, and other outlays to the 
          public, it has run a deficit in these transactions with the 
          public in 20 of 32 years since 1966.
     The Supplementary Medical Insurance (SMI) Trust Fund 
          (Medicare Part B) is funded by premiums charged to enrollees, 
          general fund subsidies, and interest payments. Premiums 
          currently cover about one-quarter of SMI's expenditures with 
          the remainder financed by Federal fund payments. These shares 
          have changed significantly since SMI's early years of 
          operation, beginning in 1967. In its first seven years, 
          premiums covered half of the expenses. This share fell 
          throughout the next decade, and by the early 1980s premiums 
          covered only 22 percent of expenses. SMI's total balance, 
          including interfund collections, stood at $35 billion at the 
          end of 1997. However, its cumulative payments to the public 
          exceeded its income from the public by $540 billion.
     The Unemployment (UI) Trust Fund is funded primarily by 
          taxes on employers. It also has interfund interest earnings 
          paid by Federal funds, and it has been supplemented by large 
          transfers from the general fund during periods of high and 
          extended unemployment. Since 1960 UI has run deficits in its 
          transactions with the public in 17 years. At the end of 1997 
          its total balance, including those due to interfund 
          collections, was $62 billion. However, this balance was 
          essentially due to interfund collections. Since 1960, UI's 
          cumulative payments to the public have exceeded its income 
          from the public by $32 billion.
     The Civil Service Retirement and Disability (CSRD) Trust 
          Fund, which comprises almost all of the Federal Civilian 
          Employees Retirement Funds shown in Table 17-3, is financed by 
          Federal civilian employees' contributions, agencies' 
          contributions on behalf of the employees, general fund 
          payments that limit the growth in the unfunded liability, and 
          interest earnings. In 1997, employee contributions were 
          approximately 6 percent of total income to the Fund. Interfund 
          collections made up the rest. CSRD has run a surplus in each 
          year since 1960, and its balance has increased from $10 
          billion in 1960 to $422 billion in 1997. Because the Fund is 
          intended to be funded mostly by payments from the Government 
          as an employer, the buildup in balances is due to interfund 
          payments. From 1960 through 1997, CSRD payments to the public 
          exceeded its income from the public by $480 billion.
     The Military Retirement Fund is financed entirely by 
          payments by the Department of Defense on behalf of military 
          employees, general fund payments for the unfunded liability 
          existent when the Fund was created, and interest earnings. 
          Since its inception in 1985, the Fund has run a surplus each 
          year, and it had a $139 billion balance at the end of 1997. 
          Because the fund receives no income from the public, the 
          annual surpluses and the current balance are due totally to 
          interfund payments. Over the same period, the Fund paid $283 
          billion of benefits to the public.

  The Record if Interfund Transactions are Included.--Transactions with 
the public are not the only basis--and for some purposes may not be the 
best--for identifying the source of the unified budget surplus or 
deficit. Most interfund payments allocate the cost of Federal activities 
to the fund group that is responsible for the cost, and most interfund 
collections are valid reimbursements for the assumption of a cost by the 
fund that receives the collection. Including these interfund 
transactions, therefore, may provide a more reasonable measure of the 
contribution of each fund group to the overall surplus or deficit.
  The bulk of interfund transactions are Federal fund payments to trust 
funds. In 1997, Federal funds paid $247 billion to trust funds, net of 
collections from trust funds. Almost 93 percent of these were payments 
by the Government as an employer to various retirement trust funds, 
interest on general fund borrowing of trust fund balances, and the 
general fund payment to SMI.
  Payments by the Government as an employer to Federal employees 
retirement trust funds allow the total cost of employee compensation to 
be charged to the Federal fund programs that employ Federal workers, or 
to the general fund. These benefits do not show up as payments to the 
public for many years, and the eventual payments are recorded as trust 
fund outlays. But since the eventual payments result from commitments 
made in the course of carrying out past Federal fund activities, their 
impact on the unified surplus or deficit could be attributed to the 
Federal funds group. The interfund payments made for these purposes are 
a partial measure of the amount that could reasonably be attributed to 
Federal funds. In 1997, interfund pay

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ments for military and Federal civilian employee retirement were $62 
billion.
  Interest payments by the general fund on trust fund investments in 
Treasury debt appropriately recognize the time value of money to both 
the borrower and the lender. By law, trust fund balances are invested in 
Treasury securities, and the interest payments and collections are 
recorded as interfund transactions--increasing the trust funds surplus 
and the Federal funds deficit. This is efficient from the standpoint of 
cash management, and it is an effective method of recognizing the time 
value of money without forcing trust funds to invest in private 
securities, which are riskier and would raise the specter of direct 
Federal control over vast amounts of private resources. However, if 
permitted by law, trust fund balances could have been invested outside 
the Government and earned interest from the public. The general fund 
would have offset the loss of this source of financing by borrowing more 
from the public, which would have increased Federal fund interest 
outlays to the public. In terms of transactions with the public, the 
result would be substantially lower trust fund deficits and higher 
Federal fund deficits. But this would not mean that trust funds were 
less responsible--or Federal funds more responsible--for the unified 
surplus or deficit than under current practice. All taxes and 
programmatic spending would have been the same. Trust fund interest 
income was $107 billion in 1997, and it is expected to grow to $151 
billion by the year 2003.
  The SMI trust fund is different from other trust funds in that it is 
mostly funded by a general fund payment, and the payment is not 
compensation for services provided by the trust fund to the general 
fund. The payment is simply a general fund subsidy of trust fund 
spending. Interfund accounting therefore assigns the general fund its 
share of SMI payments to the public. The general fund payment was almost 
$60 billion in 1997.
  Because fund accounting allocates costs between the two fund groups, 
it is inappropriate to exclude interfund transactions from the analysis 
of responsibility for the unified budget surplus or deficit. However, it 
does not follow automatically that trust fund surpluses and Federal fund 
deficits mean that Federal funds bear the sole responsibility for the 
unified budget surplus or deficit. That is a separable issue, and as the 
next section shows, more questionable.

  Both Fund Groups Bear the Responsibility.--The Federal budget has been 
presented on a unified basis since 1968. Its purpose is to present in 
one place the totality of the Federal Government's fiscal operations.
  The most important information provided by the unified budget is (1) 
how much of the Nation's resources are used by the Government, and (2) 
how these resources are allocated among the many purposes of Government. 
By combining all receipts and spending in one budget, the implicit 
tradeoffs between public and private spending, and between Government 
programs, become more visible. The intention is that by surfacing these 
basic tradeoffs, conflicts over competing demands for the Nation's 
resources will be resolved, and the pieces of the budget will add to the 
desired total. However, there is no automatic mechanism that forces 
resolution of these conflicts. Congress and the President can choose to 
use the budget to force the components of the budget to stay within 
targets for total receipts and spending, as it has for discretionary 
programs in the Budget Enforcement Act. Or they can allow tax and 
spending programs to occur autonomously without regard to what those 
actions have on other programs or on the budget totals.
  As shown in Chart 17-2, trust fund outlays to the public as a percent 
of GDP increased steadily between 1960 and the early 1990s, rising from 
4.1 percent in the first half of the 1960s to 7.3 percent in the latter 
half of the 1970s, and rising even further to 8.7 percent in the early 
1990s. \9\ Over the same period, Federal fund payments to the public 
moved up and down slightly but stayed between 14 and 15 percent of GDP. 
The combination of growing trust fund spending and constant Federal fund 
spending meant that total spending as a percent of GDP increased from 18 
percent in 1960 to 23 percent in 1992. However, total spending as a 
percent of GDP has decreased since 1992, falling to 20.1 percent in 
1997, the lowest level in 23 years.
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  \9\ This section focuses on receipts and outlays as they are defined 
in the unified budget, instead of income and outgo. The difference is 
that proprietary receipts and interfund collections are offset against 
outlays in the unified budget, but they are considered income for a fund 
group. Since the comparisons over time are based on changes in shares of 
GDP, it is better to use receipts and outlays.
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  Because the norm has been for trust funds to be in balance, or to 
accumulate balances to fund future benefits, trust fund taxes were 
increased commensurately with the increase in trust fund outlays. As 
shown in Chart 17-3, trust fund receipts as a percent of GDP increased 
in every five-year period since 1960, rising from 3.7 percent in the 
first half of the 1960s to 6.0 percent in the latter half of the 1970s, 
and rising even further to 7.3 percent in the first half of the 1990s. 
However, unlike Federal fund outlays, Federal fund receipts did not stay 
the same when trust fund receipts rose. During this period, increases in 
trust fund receipts were offset by decreases in Federal fund receipts, 
and total budget receipts remained constant at 18 to 19 percent of GDP. 
In recent years, total budget receipts as a percent of GDP have risen 
consistently, growing from 18 percent in 1993 to 20 percent in 1997.
  What explains the growth in the unified budget deficit until 1992, 
therefore, is the basic conflict between the goal of expanding and fully 
funding one part of Government, and an unwillingness either to allow the 
total tax burden to increase or to reduce the rest of Government. \10\ 
The Nation wanted to expand trust fund spending, and it said it was 
willing to finance that expansion. The latter could only have been 
accomplished by increasing the total tax burden or by reducing Federal 
fund spending. In fact, neither occurred. Taxes were shifted from 
Federal funds to trust funds,

[[Page 327]]






[[Page 328]]

and the total tax burden remained the same. Federal fund spending 
remained constant, and total spending increased. If Federal fund taxes 
had stayed at the levels experienced in the first half of the 1960s, 
Federal fund tax receipts would have been much higher over the period, 
and the higher receipts plus the associated interest savings would have 
been sufficient to avoid most or all of the unified deficits. The same 
outcome could have been achieved by reducing Federal fund spending 
commensurately with the reduction in Federal fund taxes.
---------------------------------------------------------------------------
  \10\ For similar analyses, see The Budget Deficit--Outlook, 
Implications, and Choices, General Accounting Office, September 1990, 
pp.29-32; and John F. Cogan, ``the Dispersion of Spending Authority and 
Federal Budget Deficits,'' in The Budget Puzzle by John F. Cogan, 
Timothy J. Muris, and Allen Schick, Stanford University Press, 1994, pp. 
39-40.
---------------------------------------------------------------------------
  In short, the imbalances seen in the fund group and unified budget 
totals were symptomatic of the unresolved conflict over the size of 
Government and how it is to be financed. Instead of resolving this 
conflict, increases in trust fund spending were ``financed'' at the 
expense of financing for Federal funds. In that sense, both fund groups 
were responsible for the unified budget deficit.
  This pattern of behavior is changing. The enactment of the Balanced 
Budget Act along with the proposals in this Budget will eliminate the 
unified budget deficit in 1999, and (as shown in Table 17-1) reduce the 
Federal funds deficit to $120 billion by 2003, less than one-third of 
its peak level of $386 billion in 1992. Federal fund transactions with 
the public have gone from a deficit of over $200 billion in the early 
1990s to a surplus of almost $100 billion in 1997, and this surplus is 
projected to more than double by 2003.

               Income, Outgo, and Balances of Trust Funds

  Table 17-2 shows the trust funds balance at the start of each year, 
income and outgo during the year, and the end of year balance. Income 
and outgo are divided between transactions with the public and 
transactions with Federal funds. Receipts from Federal funds are divided 
between interest and other interfund receipts.
  The definition of income and outgo in this table differs from those in 
Table 17-1 in one important way. Trust fund collections that are offset 
against outgo (as offsetting collections) within expenditure accounts 
instead of being deposited in separate receipt accounts are classified 
as income in this table but not in Table 17-1. This classification is 
consistent with the definitions of income and outgo for trust funds used 
elsewhere in the budget. It has the effect of increasing both income and 
outgo by the amount of the offsetting collections. The difference is 
approximately $23 billion in 1997. This table, therefore, provides a 
more complete summary of trust fund income and outgo.
  The trust funds group is expected to have large and growing surpluses 
over the projection period. As a consequence, trust fund balances will 
grow substantially, as they have over the past decade. The size of the 
anticipated balances is unprecedented, and it results mainly from 
relatively recent changes in the way some trust funds are financed.
  Until the 1980s, most trust funds operated on a pay-as-you-go basis. 
Taxes and user fees were set at levels high enough to finance benefits 
and administrative expenses, and to maintain prudent reserves, generally 
defined as being equal to one year's expenditures. As a result, trust 
fund balances tended to grow at about the same rate as their annual 
expenditures.
  Pay-as-you-go financing was replaced in the 1980s by full or partial 
accrual funding for some of the larger trust funds. In order to 
partially prefund the ``baby-boomers'' social security benefits, the 
Social Security Amendments of 1983 raised payroll taxes above the levels 
necessary to finance current expenditures. In 1984 a new system was set 
up to finance military retirement benefits on a full accrual basis. In 
1986 full accrual funding of retirement benefits was mandated for 
Federal civilian employees hired after December 31, 1983. The latter two 
changes require Federal agencies and their employees to make annual 
payments to the Federal employees' retirement trust funds in an amount 
equal to the value of the retirement benefits earned by employees in 
that year. Since many years will pass before current employees are paid 
retirement benefits, the trust funds will accumulate substantial 
balances over time.
  Primarily because of these changes, but also because of the impact of 
real growth and inflation, trust fund balances increased sevenfold from 
1982 to 1997, from $205 billion to $1.5 trillion. Under the proposals in 
the President's budget, the balances are estimated to increase by 
another 71 percent by the year 2003, rising to $2.6 trillion. Almost all 
of these balances are invested in Treasury securities and earn interest. 
Therefore, they effectively represent the value, in current dollars, of 
taxes and user fees that have been paid in advance for future benefits 
and services.
  These balances are available to finance future benefit payments and 
other trust fund expenditures--but only in a bookkeeping sense. Unlike 
the assets of private pension plans, they do not consist of real 
economic assets that can be drawn down in the future to fund benefits. 
Instead, they are claims on the Treasury that, when redeemed, will have 
to be financed by raising taxes, borrowing from the public, or reducing 
benefits or other expenditures. The existence of large trust fund 
balances, therefore, does not, by itself, make it easier for the 
Government to pay benefits.
  From an economic standpoint, the Government is able to prefund 
benefits only by increasing saving and investment in the economy as a 
whole. This can be fully accomplished only by simultaneously running 
trust fund surpluses equal to the actuarial present value of the 
accumulating benefits and not allowing the Federal fund deficit to 
increase, so that the trust fund surplus reduces a unified budget 
deficit or increases a unified budget surplus. This would reduce Federal 
borrowing by the amount of the trust funds surplus and increase the 
amount of national saving available to finance investment. Greater 
investment would increase future incomes and wealth, particularly if it 
increased the rate of productivity growth. In turn, this would make it 
possible for the trust funds to draw down on their investments in 
Treasury debt to pay future benefits with-

[[Page 329]]

                                              Table 17-2.  INCOME, OUTGO, AND BALANCES OF TRUST FUNDS GROUP                                             
                                                                (In billions of dollars)                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Estimate                               
                                                                          1997   -----------------------------------------------------------------------
                                                                        actual       1998        1999        2000        2001        2002        2003   
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Total Trust Funds                                                                                                             
                                                                                                                                                        
Balance, start of year..............................................   1,390.2     1,515.4     1,664.1     1,835.1     2,008.3     2,184.8     2,385.9  
                                                                                                                                                        
Income:                                                                                                                                                 
  Governmental receipts.............................................     570.0       608.5       650.2       673.0       700.2       730.5       759.4  
  Proprietary receipts..............................................      44.7        44.5        44.6        46.3        48.2        50.3        53.2  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................     106.8       114.3       120.7       127.8       135.2       143.5       152.3  
    Other...........................................................     156.8       170.3       177.7       184.6       193.4       203.7       213.5  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................     878.3       937.5       993.3     1,031.8     1,077.0     1,128.1     1,178.5  
Outgo:                                                                                                                                                  
  To the public.....................................................     751.3       787.7       821.2       857.6       898.3       925.8       974.8  
  Payments to Federal funds.........................................       1.0         1.1         1.1         1.1         2.3         1.1         1.2  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     752.4       788.8       822.3       858.6       900.6       926.9       976.0  
                                                                                                                                                        
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      19.2        34.4        50.3        45.3        41.3        57.5        50.2  
    Interest........................................................     106.8       114.3       120.7       127.8       135.2       143.5       152.3  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................     126.0       148.7       171.0       173.2       176.6       201.0       202.5  
                                                                                                                                                        
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................      -0.8        -*          -*      ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*           *          -*      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................     125.2       148.7       171.0       173.2       176.6       201.0       202.5  
                                                                     ===================================================================================
Balance, end of year................................................   1,515.4     1,664.1     1,835.1     2,008.3     2,184.8     2,385.9     2,588.4  
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
 * Less than $50 million.                                                                                                                               

out having to increase the burden on future workers by raising tax 
rates, reducing spending, or increasing Government borrowing.
  Table 17-3 shows estimates of income, outgo, and balances for 1997 
through 2003 for the major trust funds. With the exception of 
transactions between trust funds, the data for the individual trust 
funds are conceptually the same as the data in Table 17-2 for the trust 
funds group. As explained previously, transactions between trust funds 
are shown as outgo of the fund that makes the payment and as income of 
the fund that collects it in the data for an individual trust fund, but 
the collections are offset against outgo in the data for the trust fund 
group. Additional information for these and other trust funds can be 
found in the Status of Funds tables in the Budget Appendix.
  Table 17-4, which appears at the end of this chapter, shows income, 
outgo, and balances of four Federal funds--a revolving fund and three 
special funds. These funds are similar to trust funds in that they are 
financed by earmarked receipts, excesses of income over outgo are 
invested, the interest earnings add to balances, and the balances remain 
available to finance future expenditures. The table is illustrative of 
the Federal funds group, which includes many other revolving funds and 
special funds in addition to the ones shown.

[[Page 330]]

                                     

                                              Table 17-3.  INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS                                             
                                                                (In billions of dollars)                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Estimate                               
                                                                          1997   -----------------------------------------------------------------------
                                                                        actual       1998        1999        2000        2001        2002        2003   
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                    Airport and Airway Trust Fund                                                                                                       
Balance, start of year..............................................       7.7         6.4         9.3        14.2        16.9        19.8        23.1  
Income:                                                                                                                                                 
  Governmental receipts.............................................       4.0         8.0        10.0        11.5        12.1        12.8        12.2  
  Proprietary receipts..............................................       *           *           *           *           *           *           *    
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       0.5         0.4         0.6         1.0         1.1         1.3         1.4  
    Other...........................................................       *           0.1         0.1         0.1         0.1         0.1         0.1  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       4.5         8.5        10.7        12.6        13.3        14.1        13.7  
Outgo:                                                                                                                                                  
  To the public.....................................................       5.8         5.6         5.8         9.9        10.4        10.9        11.6  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       5.8         5.6         5.8         9.9        10.4        10.9        11.6  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -1.7         2.5         4.3         1.8         1.8         2.0         0.7  
    Interest........................................................       0.5         0.4         0.6         1.0         1.1         1.3         1.4  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      -1.2         2.9         4.9         2.7         2.9         3.3         2.2  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................      -*      ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................       *      ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -1.2         2.9         4.9         2.7         2.9         3.3         2.2  
                                                                     ===================================================================================
Balance, end of year................................................       6.4         9.3        14.2        16.9        19.8        23.1        25.3  
                                                                                                                                                        
               Federal Employees Health Benefits Fund                                                                                                   
Balance, start of year..............................................       7.4         6.7         6.6         6.5         6.7         6.8         6.9  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       4.8         5.3         5.5         5.8         6.0         6.0         6.7  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       0.5         0.4         0.4         0.4         0.4         0.5         0.5  
    Other...........................................................      10.6        11.3        12.1        13.3        14.2        15.7        16.5  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      15.9        17.0        18.0        19.6        20.7        22.1        23.6  
Outgo:                                                                                                                                                  
  To the public.....................................................      16.6        17.1        18.1        19.4        20.6        22.1        23.6  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      16.6        17.1        18.1        19.4        20.6        22.1        23.6  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -1.1        -0.5        -0.5        -0.2        -0.3        -0.5        -0.4  
    Interest........................................................       0.5         0.4         0.4         0.4         0.4         0.5         0.5  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      -0.7        -0.1        -0.1         0.2         0.1         *           0.1  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -0.7        -0.1        -0.1         0.2         0.1         *           0.1  
                                                                     ===================================================================================
Balance, end of year................................................       6.7         6.6         6.5         6.7         6.8         6.9         6.9  
                                                                                                                                                        
             Federal Civilian Employees Retirement Funds                                                                                                
Balance, start of year..............................................     401.7       430.9       461.0       490.8       520.2       549.2       578.3  
Income:                                                                                                                                                 
  Governmental receipts.............................................       4.4         4.3         4.5         4.6         4.9         4.6         4.1  
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........

[[Page 331]]

                                                                                                                                                        
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................      31.2        33.2        34.3        35.0        35.8        36.7        37.5  
    Other...........................................................      35.8        36.4        36.7        37.5        37.9        38.5        38.5  
  Receipts from Trust funds.........................................       *           *           *           *           *           *           *    
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      71.4        73.9        75.6        77.1        78.6        79.8        80.2  
Outgo:                                                                                                                                                  
  To the public.....................................................      42.2        43.8        45.7        47.7        49.6        50.8        53.6  
  Payments to Other funds...........................................       *           *           *           *           *           *           *    
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      42.2        43.8        45.7        47.7        49.6        50.8        53.6  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -2.0        -3.1        -4.5        -5.6        -6.8        -7.7       -11.0  
    Interest........................................................      31.2        33.2        34.3        35.0        35.8        36.7        37.5  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      29.1        30.1        29.9        29.4        29.0        29.1        26.6  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*           *          -*      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      29.1        30.1        29.9        29.4        29.0        29.1        26.6  
                                                                     ===================================================================================
Balance, end of year................................................     430.9       461.0       490.8       520.2       549.2       578.3       604.8  
                                                                                                                                                        
   Federal Old-Age, Survivors and Disability Insurance Trust Funds                                                                                      
Balance, start of year..............................................     549.6       630.9       728.9       835.0       950.9     1,073.8     1,207.4  
Income:                                                                                                                                                 
  Governmental receipts.............................................     392.0       416.0       434.1       453.9       472.7       494.3       516.6  
  Proprietary receipts..............................................       *           0.1         0.1         0.1         0.1         0.1         0.1  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................      41.2        46.7        51.6        57.0        62.9        69.3        76.3  
    Other...........................................................      15.4        19.1        19.0        20.0        21.1        22.5        23.9  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................     448.7       481.9       504.8       531.0       556.8       586.2       617.0  
Outgo:                                                                                                                                                  
  To the public.....................................................     363.3       379.7       394.6       410.9       428.8       448.5       469.0  
  Payments to Other funds...........................................       4.1         4.1         4.1         4.1         5.2         4.1         4.1  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     367.3       383.9       398.7       415.1       434.0       452.6       473.1  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      40.1        51.3        54.5        59.0        59.9        64.3        67.5  
    Interest........................................................      41.2        46.7        51.6        57.0        62.9        69.3        76.3  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      81.3        98.0       106.1       115.9       122.8       133.6       143.9  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      81.3        98.0       106.1       115.9       122.8       133.6       143.9  
                                                                     ===================================================================================
Balance, end of year................................................     630.9       728.9       835.0       950.9     1,073.8     1,207.4     1,351.2  
                                                                                                                                                        
                  Foreign Military Sales Trust Fund                                                                                                     
Balance, start of year..............................................       5.9         5.9         5.9         5.9         5.9         5.9         5.9  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................      15.1        13.8        12.6        11.8        11.1        10.6         9.8  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other...........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      15.1        13.8        12.6        11.8        11.1        10.6         9.8  
Outgo:                                                                                                                                                  
  To the public.....................................................      15.1        13.8        12.6        11.8        11.1        10.6         9.8  

[[Page 332]]

                                                                                                                                                        
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      15.1        13.8        12.6        11.8        11.1        10.6         9.8  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................       *          -*      ..........  ..........  ..........  ..........  ..........
    Interest........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       *          -*      ..........  ..........  ..........  ..........  ..........
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       *          -*      ..........  ..........  ..........  ..........  ..........
                                                                     ===================================================================================
Balance, end of year................................................       5.9         5.9         5.9         5.9         5.9         5.9         5.9  
                                                                                                                                                        
                       Highway Trust Fund \1\                                                                                                           
Balance, start of year..............................................      21.2        22.0        23.5        38.3        47.5        56.7        66.5  
Income:                                                                                                                                                 
  Governmental receipts.............................................      23.9        26.1        38.6        33.2        33.8        34.4        35.1  
  Proprietary receipts..............................................       0.1         0.1         0.1         0.1         0.1         0.1         0.1  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       1.4         1.4         1.4         2.2         2.7         3.1         3.6  
    Other...........................................................       *      ..........       0.1         0.1         0.1         0.1         0.1  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, Income..............................................      25.4        27.6        40.2        35.6        36.6        37.7        38.9  
Outgo:                                                                                                                                                  
  To the public.....................................................      24.6        26.0        25.4        26.4        27.4        27.9        28.4  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, Outgo...............................................      24.6        26.0        25.4        26.4        27.4        27.9        28.4  
Change in fund balance:                                                                                                                                 
  Surplus or deficit:                                                                                                                                   
    Excluding interest..............................................      -0.6         0.1        13.4         7.0         6.5         6.7         6.8  
    Interest........................................................       1.4         1.4         1.4         2.2         2.7         3.1         3.6  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit..................................       0.8         1.6        14.8         9.2         9.2         9.8        10.4  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........      -*          -*      ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........       *      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, Change in fund balance...................................       0.8         1.5        14.8         9.2         9.2         9.8        10.4  
                                                                     ===================================================================================
Balance, End of Year................................................      22.0        23.5        38.3        47.5        56.7        66.5        77.0  
                                                                                                                                                        
        Medicare: Federal Hospital Insurance (HI) Trust Fund                                                                                            
Balance, start of year..............................................     125.3       116.0       111.0       107.9       106.7       104.5       109.2  
Income:                                                                                                                                                 
  Governmental receipts.............................................     110.8       118.1       122.7       128.5       134.1       140.5       147.0  
  Proprietary receipts..............................................       1.3         1.3         1.8         1.7         1.9         2.1         2.3  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       9.8         9.2         8.8         8.3         8.0         7.7         7.7  
    Other...........................................................       6.7         7.9         8.6         9.0         9.4         9.9        10.5  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................     128.5       136.5       141.9       147.6       153.4       160.2       167.4  
Outgo:                                                                                                                                                  
  To the public.....................................................     137.9       141.5       145.0       148.8       155.7       155.5       166.2  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     137.9       141.5       145.0       148.8       155.7       155.5       166.2  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................     -19.1       -14.2       -11.9        -9.5       -10.2        -3.0        -6.5  
    Interest........................................................       9.8         9.2         8.8         8.3         8.0         7.7         7.7  
                                                                     -----------------------------------------------------------------------------------

[[Page 333]]

                                                                                                                                                        
      Subtotal, surplus or deficit (-)..............................      -9.3        -5.0        -3.1        -1.2        -2.2         4.7         1.2  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................      -*      ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................       *      ..........       *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -9.3        -5.0        -3.1        -1.2        -2.2         4.7         1.2  
                                                                     ===================================================================================
Balance, end of year................................................     116.0       111.0       107.9       106.7       104.5       109.2       110.4  
                                                                                                                                                        
 Medicare: Federal Supplementary Medical Insurance (SMI) Trust Fund                                                                                     
Balance, start of year..............................................      27.0        35.2        39.5        40.0        39.9        37.7        40.5  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................      19.1        19.4        20.1        22.2        24.4        26.8        29.5  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       2.2         2.5         2.6         2.5         2.5         2.5         2.5  
    Other...........................................................      59.5        67.5        72.5        75.4        80.4        85.9        91.9  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      80.8        89.3        95.1       100.1       107.3       115.2       123.8  
Outgo:                                                                                                                                                  
  To the public.....................................................      72.6        85.0        94.6       100.2       109.5       112.4       122.8  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      72.6        85.0        94.6       100.2       109.5       112.4       122.8  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................       6.1         1.8        -2.0        -2.6        -4.7         0.3        -1.4  
    Interest........................................................       2.2         2.5         2.6         2.5         2.5         2.5         2.5  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       8.3         4.3         0.5        -0.1        -2.2         2.8         1.1  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........      -*      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       8.3         4.3         0.5        -0.1        -2.2         2.8         1.1  
                                                                     ===================================================================================
Balance, end of year................................................      35.2        39.5        40.0        39.9        37.7        40.5        41.6  
                                                                                                                                                        
                      Military Retirement Fund                                                                                                          
Balance, start of year..............................................     131.2       139.2       145.6       151.9       158.1       164.3       170.7  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................      11.9        12.1        12.3        12.5        12.7        13.0        13.2  
    Other...........................................................      26.3        25.7        26.3        26.9        27.6        28.4        29.4  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      38.2        37.8        38.6        39.4        40.3        41.4        42.6  
Outgo:                                                                                                                                                  
  To the public.....................................................      30.2        31.4        32.3        33.3        34.1        35.0        35.9  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      30.2        31.4        32.3        33.3        34.1        35.0        35.9  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -3.9        -5.7        -6.0        -6.4        -6.5        -6.6        -6.5  
    Interest........................................................      11.9        12.1        12.3        12.5        12.7        13.0        13.2  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       8.0         6.4         6.3         6.2         6.2         6.4         6.7  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*      ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       8.0         6.4         6.3         6.2         6.2         6.4         6.7  
                                                                     ===================================================================================
Balance, end of year................................................     139.2       145.6       151.9       158.1       164.3       170.7       177.3  

[[Page 334]]

                                                                                                                                                        
                                                                                                                                                        
                   Railroad Retirement Trust Funds                                                                                                      
Balance, start of year..............................................      14.1        15.0        15.9        16.6        17.3        18.0        18.7  
Income:                                                                                                                                                 
  Governmental receipts.............................................       4.1         4.1         4.1         4.1         4.2         4.2         4.2  
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       1.2         1.1         1.0         1.1         1.1         1.2         1.2  
    Other...........................................................       0.2         0.3         0.3         0.3         0.3         0.3         0.3  
  Receipts from Trust funds.........................................       3.7         3.8         3.8         3.8         3.7         3.8         3.8  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       9.3         9.3         9.2         9.3         9.2         9.4         9.5  
Outgo:                                                                                                                                                  
  To the public.....................................................       8.1         8.2         8.3         8.3         8.4         8.4         8.5  
  Payments to Other funds...........................................       0.2         0.2         0.2         0.2         0.2         0.2         0.2  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       8.3         8.4         8.5         8.6         8.6         8.7         8.8  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -0.3        -0.3        -0.3        -0.4        -0.5        -0.4        -0.5  
    Interest........................................................       1.2         1.1         1.0         1.1         1.1         1.2         1.2  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.9         0.9         0.7         0.7         0.6         0.7         0.7  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.9         0.9         0.7         0.7         0.6         0.7         0.7  
                                                                     ===================================================================================
Balance, end of year................................................      15.0        15.9        16.6        17.3        18.0        18.7        19.4  
                                                                                                                                                        
                       Unemployment Trust Fund                                                                                                          
Balance, start of year..............................................      54.0        62.1        71.0        78.7        86.3        93.6       101.0  
Income:                                                                                                                                                 
  Governmental receipts.............................................      28.2        28.9        30.5        31.9        33.2        34.2        34.7  
  Proprietary receipts..............................................       *           *           *           *           *           *           *    
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       3.7         4.2         4.5         4.7         4.9         5.1         5.2  
    Other...........................................................       0.6         0.5         0.5         0.6         0.6         0.6         0.6  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      32.5        33.7        35.6        37.1        38.7        39.9        40.4  
Outgo:                                                                                                                                                  
  To the public.....................................................      24.4        24.8        27.8        29.6        31.4        32.5        34.0  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      24.4        24.8        27.8        29.6        31.4        32.5        34.0  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................       4.4         4.6         3.3         2.9         2.4         2.3         1.2  
    Interest........................................................       3.7         4.2         4.5         4.7         4.9         5.1         5.2  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       8.1         8.8         7.8         7.6         7.3         7.4         6.4  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........       *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       8.1         8.8         7.8         7.6         7.3         7.4         6.4  
                                                                     ===================================================================================
Balance, end of year................................................      62.1        71.0        78.7        86.3        93.6       101.0       107.4  
                                                                                                                                                        
                 Veterans Life Insurance Trust Funds                                                                                                    
Balance, start of year..............................................      13.7        13.7        13.6        13.5        13.2        12.9        12.6  
Income:                                                                                                                                                 
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       0.9         0.9         0.9         0.8         0.8         0.7         0.7  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       1.2         1.1         1.1         1.0         1.0         0.9         0.9  

[[Page 335]]

                                                                                                                                                        
    Other...........................................................       *           *           *           *           *           *           *    
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       2.1         2.0         1.9         1.8         1.7         1.6         1.6  
Outgo:                                                                                                                                                  
  To the public.....................................................       2.0         2.1         2.1         2.1         2.0         2.0         1.9  
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       2.0         2.1         2.1         2.1         2.0         2.0         1.9  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -1.1        -1.2        -1.2        -1.3        -1.3        -1.3        -1.3  
    Interest........................................................       1.2         1.1         1.1         1.0         1.0         0.9         0.9  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       *          -0.1        -0.2        -0.3        -0.3        -0.3        -0.4  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........       *      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       *          -0.1        -0.2        -0.3        -0.3        -0.3        -0.4  
                                                                     ===================================================================================
Balance, end of year................................................      13.7        13.6        13.5        13.2        12.9        12.6        12.2  
                                                                                                                                                        
                          Other Trust Funds                                                                                                             
Balance, start of year..............................................      31.4        31.3        32.2        35.6        38.4        41.6        45.2  
Income:                                                                                                                                                 
  Governmental receipts.............................................       2.7         3.0         5.6         5.2         5.2         5.4         5.5  
  Proprietary receipts..............................................       3.3         3.7         3.6         3.8         3.9         4.0         4.2  
  Receipts from Federal funds:                                                                                                                          
    Interest........................................................       2.0         1.9         2.0         2.1         2.2         2.2         2.3  
    Other...........................................................       1.7         1.5         1.6         1.6         1.7         1.7         1.8  
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       9.8        10.1        12.9        12.7        13.0        13.4        13.8  
Outgo:                                                                                                                                                  
  To the public.....................................................       8.7         8.7         9.0         9.3         9.2         9.2         9.4  
  Payments to Other funds...........................................       0.5         0.5         0.5         0.5         0.6         0.6         0.6  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       9.2         9.2         9.5         9.8         9.8         9.8        10.0  
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..............................................      -1.4        -1.0         1.4         0.7         1.1         1.3         1.5  
    Interest........................................................       2.0         1.9         2.0         2.1         2.2         2.2         2.3  
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.6         0.9         3.4         2.8         3.2         3.6         3.8  
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..........................................      -0.7        -*      ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*      ..........      -*      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -0.1         0.9         3.4         2.8         3.2         3.6         3.8  
                                                                     ===================================================================================
Balance, end of year................................................      31.3        32.2        35.6        38.4        41.6        45.2        49.0  
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million                                                                                                                                 
                                                                                                                                                        
Note: Balances shown include committed and uncommitted cash balances.                                                                                   
                                                                                                                                                        
\1\ The increase in 1999 governmental receipts reflects the transfer of 4.3 cents per gallon motor fuels tax revenue from the general fund to the       
  Highway Trust Fund. The increase also results from a provision of the Taxpayer       Relief Act of 1997 to delay two months of 1998 excise tax        
  deposits to the trust fund, thereby shifting those deposits to 1999.                                                                                  


[[Page 336]]


                                           Table 17-4.  INCOME, OUTGO, AND BALANCES OF SELECTED FEDERAL FUNDS                                           
                                                                (In billions of dollars)                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          Estimate                      
                                                                                            1997   -----------------------------------------------------
                                                                                           actual     1998     1999     2000     2001     2002     2003 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                             Abandoned Mine Reclamation Fund                                                                                            
Balance, start of year..................................................................      1.4      1.5      1.7      1.8      1.9      2.1      2.2 
Income:                                                                                                                                                 
  Governmental receipts.................................................................      0.3      0.3      0.3      0.3      0.3      0.3      0.3 
  Proprietary receipts..................................................................      *        *        *        *        *        *        *   
  Receipts from Federal funds:                                                                                                                          
    Interest............................................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
    Other...............................................................................  ........  .......  .......  .......  .......  .......  .......
  Receipts from Trust funds.............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
      Subtotal, income..................................................................      0.3      0.4      0.4      0.4      0.4      0.4      0.4 
Outgo:                                                                                                                                                  
  To the public.........................................................................      0.2      0.2      0.2      0.2      0.3      0.3      0.3 
  Payments to Other funds...............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
      Subtotal, outgo...................................................................      0.2      0.2      0.2      0.2      0.3      0.3      0.3 
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..................................................................      *        0.1      *        *        *        *        *   
    Interest............................................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
                                                                                         ---------------------------------------------------------------
      Subtotal, surplus or deficit (-)..................................................      0.1      0.2      0.1      0.1      0.1      0.1      0.2 
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..............................................................  ........  .......  .......  .......  .......  .......  .......
    Other adjustments...................................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
    Total, change in fund balance.......................................................      0.1      0.2      0.1      0.1      0.1      0.1      0.2 
                                                                                         ===============================================================
Balance, end of year....................................................................      1.5      1.7      1.8      1.9      2.1      2.2      2.4 
                                                                                                                                                        
                               Nuclear Waste Disposal Fund                                                                                              
Balance, start of year..................................................................      5.3      6.2      7.1      8.0      8.9      9.9     11.1 
Income:                                                                                                                                                 
  Governmental receipts.................................................................  ........  .......  .......  .......  .......  .......  .......
  Proprietary receipts..................................................................      0.6      0.6      0.6      0.6      0.6      0.6      0.7 
  Receipts from Federal funds:                                                                                                                          
    Interest............................................................................      0.5      0.5      0.5      0.6      0.6      0.7      0.8 
    Other...............................................................................  ........  .......  .......  .......  .......  .......  .......
  Receipts from Trust funds.............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
      Subtotal, income..................................................................      1.1      1.1      1.1      1.2      1.3      1.3      1.4 
Outgo:                                                                                                                                                  
  To the public.........................................................................      0.2      0.2      0.2      0.3      0.2      0.2      0.2 
  Payments to Other funds...............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
      Subtotal, outgo...................................................................      0.2      0.2      0.2      0.3      0.2      0.2      0.2 
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..................................................................      0.4      0.4      0.4      0.3      0.4      0.4      0.5 
    Interest............................................................................      0.5      0.5      0.5      0.6      0.6      0.7      0.8 
                                                                                         ---------------------------------------------------------------
      Subtotal, surplus or deficit (-)..................................................      0.9      0.9      0.9      0.9      1.1      1.2      1.2 
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..............................................................  ........  .......  .......  .......  .......  .......  .......
    Other adjustments...................................................................     -*        *       -*     .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
    Total, change in fund balance.......................................................      0.9      0.9      0.9      0.9      1.1      1.2      1.2 
                                                                                         ===============================================================
Balance, end of year....................................................................      6.2      7.1      8.0      8.9      9.9     11.1     12.3 
                                                                                                                                                        
                         Overseas Private Investment Corporation                                                                                        
Balance, start of year..................................................................      2.2      2.5      2.7      2.8      3.1      3.4      3.8 
Income:                                                                                                                                                 
  Governmental receipts.................................................................  ........  .......  .......  .......  .......  .......  .......
  Proprietary receipts..................................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
  Receipts from Federal funds:                                                                                                                          
    Interest............................................................................      0.2      0.2      0.2      0.2      0.2      0.3      0.3 
    Other...............................................................................      *        *        *        *        *        *        *   

[[Page 337]]

                                                                                                                                                        
  Receipts from Trust funds.............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
      Subtotal, income..................................................................      0.3      0.3      0.3      0.3      0.4      0.4      0.4 
Outgo:                                                                                                                                                  
  To the public.........................................................................      *        *        0.1      0.1      0.1      0.1      0.1 
  Payments to Other funds...............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
      Subtotal, outgo...................................................................      *        *        0.1      0.1      0.1      0.1      0.1 
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..................................................................      0.1      0.1      0.1      0.1      0.1      0.1      0.1 
    Interest............................................................................      0.2      0.2      0.2      0.2      0.2      0.3      0.3 
                                                                                         ---------------------------------------------------------------
      Subtotal, surplus or deficit (-)..................................................      0.2      0.3      0.3      0.3      0.3      0.3      0.3 
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..............................................................     -*       -0.1     -0.1   .......  .......  .......  .......
    Other adjustments...................................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
    Total, change in fund balance.......................................................      0.2      0.2      0.2      0.3      0.3      0.3      0.3 
                                                                                         ===============================================================
Balance, end of year....................................................................      2.5      2.7      2.8      3.1      3.4      3.8      4.1 
                                                                                                                                                        
               Uranium Enrichment Decontamination and Decommissioning Fund                                                                              
Balance, start of year..................................................................      0.5      0.9      1.3      1.7      2.1      2.6      3.1 
Income:                                                                                                                                                 
  Governmental receipts.................................................................      0.2      0.1      0.2      0.2      0.2      0.2      0.2 
  Proprietary receipts..................................................................  ........  .......  .......  .......  .......  .......  .......
  Receipts from Federal funds:                                                                                                                          
    Interest............................................................................      *        0.1      0.1      0.1      0.1      0.1      0.2 
    Other...............................................................................      0.4      0.4      0.4      0.4      0.4      0.4      0.4 
  Receipts from Trust funds.............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
      Subtotal, income..................................................................      0.6      0.6      0.7      0.7      0.7      0.8      0.8 
Outgo:                                                                                                                                                  
  To the public.........................................................................      0.2      0.2      0.3      0.2      0.2      0.2      0.2 
  Payments to Other funds...............................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
      Subtotal, outgo...................................................................      0.2      0.2      0.3      0.2      0.2      0.2      0.2 
Change in fund balance:                                                                                                                                 
  Surplus or deficit (-):                                                                                                                               
    Excluding interest..................................................................      0.4      0.3      0.3      0.3      0.4      0.4      0.4 
    Interest............................................................................      *        0.1      0.1      0.1      0.1      0.1      0.2 
                                                                                         ---------------------------------------------------------------
      Subtotal, surplus or deficit (-)..................................................      0.4      0.4      0.4      0.4      0.5      0.5      0.6 
  Adjustments:                                                                                                                                          
    Transfers/lapses (net)..............................................................      *     .......  .......  .......  .......  .......  .......
    Other adjustments...................................................................  ........  .......  .......  .......  .......  .......  .......
                                                                                         ---------------------------------------------------------------
    Total, change in fund balance.......................................................      0.4      0.4      0.4      0.4      0.5      0.5      0.6 
                                                                                         ===============================================================
Balance, end of year....................................................................      0.9      1.3      1.7      2.1      2.6      3.1      3.7 
                                                                                                                                                        
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 *Less than $50 million                                                                                                                                 
                                                                                                                                                        
Note: Balances shown include committed and uncommitted cash balances.