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


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

[[Page 161]]

                              12.  OVERVIEW

  The commitment of the President and the Congress to balance the 
budget--and keep it in balance--is promoting an increased focus on 
allocating ever scarcer resources to programs that demonstrate good 
performance. Departments are increasingly justifying funds for programs 
in terms of actual and expected performance. The Executive Branch and 
the Congress are asking the key questions: ``What are we getting for 
what we are spending?'' and ``How will we know if we are successful?''.
  The Administration's focus on results is not new. Led by Vice 
President Gore's National Partnership for Reinventing Government (NPR), 
the Administration has made real progress in creating a Government that 
in the words of the NPR, ``works better, costs less, and gets results 
Americans care about.''
  In this budget, the Administration highlights three aspects of 
performance:
   Fiscal performance (see Chapter 1, ``Sustaining Growth'');
   Management performance (see Section IV, ``Improving 
          Performance Through Better Management''); and
   Program performance, which is contained in this section.
  Together, these sections constitute what the Government Performance 
and Results Act (GPRA) contemplated--a comprehensive, Government-wide 
Performance Plan. The Plan reflects the budget and management decisions 
made throughout the process of formulating the President's budget, 
presenting a results-oriented picture of more than 450 of year 2000 
Federal Government performance goals.
  The performance of Government programs is inextricably linked to the 
fiscal and economic environment and the management framework in which 
they operate. The President's commitment to not only balance the budget 
but to invest in the future while improving public management--to do 
more with less--has prompted the Administration to maintain or expand 
programs that demonstrate good performance. Performance by managers is 
increasingly being judged on program results.
  In this section, the budget categorizes activities according to budget 
functions in order to group similar programs together and begin to 
present the relationship between their goals. As contemplated in GPRA, 
the Administration relied heavily on key performance measures and annual 
performance goals that were drawn from agency Annual Performance Plans. 
These were first articulated in the context of the long-term goals and 
objectives in the Strategic Plans that agencies submitted to OMB and to 
the Congress in September 1997.
  Again this year, in preparing the budget, the Administration performed 
crosscutting analyses to augment analysis by agency and by budget 
functions to provide a more complete and useful picture of related 
missions and goals across programs. The Administration is continuing to 
discuss with the Congress and stakeholders how to apply crosscutting 
analyses to budget and management decision-making.
  In preparing the budget, the Administration studied the measures and 
goals of the Annual Performance Plans and took a hard look at what the 
public is getting for what it is financing. Going into this second year 
of Government-wide implementation, the agencies continue to improve and 
make good progress in managing for results. Nevertheless, more work 
remains. Agencies will modify Annual Performance Plans as they implement 
them to reflect changing circumstances and resource levels, the plans 
will provide a backdrop for further discussion about allocating and 
managing resources, and the President's future budgets will contain new 
and better information. Going forward, the challenge remains to use 
these tools to create better performance to improve citizen confidence, 
service delivery, and program performance and management.

[[Page 162]]

                                     

                                    Table 12-1. FEDERAL RESOURCES BY FUNCTION
                                            (In billions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                         Estimate
          Function               1998    -----------------------------------------------------------------------
                                Actual       1999        2000        2001        2002        2003        2004
----------------------------------------------------------------------------------------------------------------
NATIONAL DEFENSE:
  Spending:
    Discretionary Budget
     Authority..............      272.4       277.0       281.6       301.3       303.2       313.6       322.3
    Mandatory Outlays:
      Existing law..........       -1.8        -0.8        -0.8        -0.6        -0.7        -0.7        -0.7
  Credit Activity:
    Direct loan
     disbursements..........  ..........        0.2         0.2         N/A         N/A         N/A         N/A
    Guaranteed loans........          *           *           *         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        2.1         2.1         2.1         2.2         2.2         2.2         2.2
                             -----------------------------------------------------------------------------------
INTERNATIONAL AFFAIRS:
  Spending:
    Discretionary Budget
     Authority..............       19.0        40.8        21.3        21.2        20.8        21.0        21.1
    Mandatory Outlays:
      Existing law..........       -5.0        -4.4        -3.9        -3.7        -3.4        -3.2        -3.1
  Credit Activity:
    Direct loan
     disbursements..........        2.3         4.0         1.8         N/A         N/A         N/A         N/A
    Guaranteed loans........       12.4        13.4        13.0         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............       11.0        12.4        12.3        13.1        14.1        15.2        16.3
    Proposed legislation....  ..........  ..........       -0.3        -0.5        -0.6        -0.6        -0.6
                             -----------------------------------------------------------------------------------
GENERAL SCIENCE, SPACE, AND
 TECHNOLOGY:
  Spending:
    Discretionary Budget
     Authority..............       18.0        18.8        19.2        19.4        19.4        19.3        19.3
    Mandatory Outlays:
      Existing law..........          *         0.1         0.1         0.1           *           *           *
  Tax Expenditures:
    Existing law............        2.4         2.0         1.5         1.0         0.9         0.8         0.8
    Proposed legislation....  ..........        0.3         0.9         0.7         0.3         0.1         0.1
                             -----------------------------------------------------------------------------------
ENERGY:
  Spending:
    Discretionary Budget
     Authority..............        3.1         2.9         2.8         3.2         3.0         3.0         3.0
    Mandatory Outlays:
      Existing law..........       -2.4        -3.2        -5.1        -4.4        -4.3        -4.2        -4.3
  Credit Activity:
    Direct loan
     disbursements..........        1.0         1.6         1.3         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        1.5         1.6         1.6         1.6         1.6         1.4         1.2
    Proposed legislation....  ..........          *         0.4         0.7         0.7         0.8         1.0
                             -----------------------------------------------------------------------------------
NATURAL RESOURCES AND
 ENVIRONMENT:
  Spending:
    Discretionary Budget
     Authority..............       23.5        23.4        23.8        24.0        23.9        23.9        24.0
    Mandatory Outlays:
      Existing law..........        0.4         1.0         0.7         0.8         0.7         0.9         0.8
      Proposed legislation..  ..........  ..........       -0.8        -0.7        -0.8        -0.7        -0.7
  Credit Activity:
    Direct loan
     disbursements..........          *           *           *         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        1.5         1.5         1.6         1.6         1.7         1.7         1.8
    Proposed legislation....  ..........  ..........       -0.1          -*           *         0.1         0.2
                             -----------------------------------------------------------------------------------
AGRICULTURE:
  Spending:
    Discretionary Budget
     Authority..............        4.3         4.3         4.1         4.1         4.2         4.1         4.1
    Mandatory Outlays:
      Existing law..........        7.9        16.4        10.9         8.8         7.3         6.0         6.2

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      Proposed legislation..  ..........  ..........         -*          -*          -*          -*          -*
  Credit Activity:
    Direct loan
     disbursements..........        8.2        10.8        11.6         N/A         N/A         N/A         N/A
    Guaranteed loans........        4.2         6.6         6.7         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        0.8         0.9         0.9         1.0         1.0         1.0         1.1
                             -----------------------------------------------------------------------------------
COMMERCE AND HOUSING CREDIT:
  Spending:
    Discretionary Budget
     Authority..............        3.1         3.7         5.4         3.3         2.9         2.9         2.9
    Mandatory Outlays:
      Existing law..........       -2.2        -3.1         1.2         4.1         6.2         6.6         7.0
      Proposed legislation..  ..........  ..........       -0.1        -0.1        -0.1        -0.1        -0.1
  Credit Activity:
    Direct loan
     disbursements..........        1.9         1.7         1.6         N/A         N/A         N/A         N/A
    Guaranteed loans........      256.1       233.2       250.9         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............      219.3       227.6       236.2       245.1       254.4       261.8       268.3
    Proposed legislation....  ..........       -0.1        -1.3        -2.2        -2.0        -1.8        -1.8
                             -----------------------------------------------------------------------------------
TRANSPORTATION:
  Spending:
    Discretionary Budget
     Authority..............       16.0        13.3        13.5        14.2        14.7        15.3        15.8
    Mandatory Outlays:
      Existing law..........        2.1         2.1         2.4         2.0         1.4         1.9         1.8
      Proposed legislation..  ..........  ..........          *           *           *           *           *
  Credit Activity:
    Direct loan
     disbursements..........        0.2         0.8         0.9         N/A         N/A         N/A         N/A
    Guaranteed loans........        0.7         0.1         0.1         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        1.6         1.7         1.7         1.8         1.9         2.0         2.1
                             -----------------------------------------------------------------------------------
COMMUNITY AND REGIONAL
 DEVELOPMENT:
  Spending:
    Discretionary Budget
     Authority..............       10.3         8.9         8.9         8.9         8.9         8.9         8.9
    Mandatory Outlays:
      Existing law..........       -0.4        -0.5        -0.6        -0.7        -0.7        -0.8        -0.8
      Proposed legislation..  ..........  ..........          *         0.1         0.2         0.2         0.2
  Credit Activity:
    Direct loan
     disbursements..........        1.5         2.4         2.1         N/A         N/A         N/A         N/A
    Guaranteed loans........        1.4         2.2         3.1         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        1.2         1.3         1.4         1.3         1.2         1.1         1.1
    Proposed legislation....  ..........  ..........          *         0.2         0.4         0.5         0.5
                             -----------------------------------------------------------------------------------
EDUCATION, TRAINING,
 EMPLOYMENT, AND SOCIAL
 SERVICES:
  Spending:
    Discretionary Budget
     Authority..............       46.7        46.6        52.1        54.2        54.2        54.1        54.0
    Mandatory Outlays:
      Existing law..........       12.4        14.0        14.9        13.9        13.1        15.1        16.1
      Proposed legislation..  ..........         -*        -1.7        -0.1        -0.3        -0.6        -0.4
  Credit Activity:
    Direct loan
     disbursements..........       12.1        16.1        16.0         N/A         N/A         N/A         N/A
    Guaranteed loans........       22.0        23.2        24.6         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............       29.9        37.6        40.0        42.0        44.0        45.9        49.0
    Proposed legislation....  ..........        0.2         1.6         3.7         2.7         2.5         2.6
                             -----------------------------------------------------------------------------------
HEALTH:
  Spending:
    Discretionary Budget
     Authority..............       26.4        30.1        30.6        31.0        30.8        30.8        30.8

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    Mandatory Outlays:
      Existing law..........      106.6       115.5       122.8       131.6       141.7       153.0       165.0
      Proposed legislation..  ..........          *        -0.1         0.7         0.8         0.9         0.7
  Credit Activity:
    Guaranteed loans........        0.1         0.1           *         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............       80.5        85.8        91.8        97.9       104.4       111.6       119.7
    Proposed legislation....  ..........  ..........        0.1         1.2         1.3         1.5         1.6
                             -----------------------------------------------------------------------------------
MEDICARE:
  Spending:
    Discretionary Budget
     Authority..............        2.7         3.0         2.9         2.9         2.9         2.9         2.9
    Mandatory Outlays:
      Existing law..........      190.2       202.0       214.9       229.2       233.2       251.2       265.2
      Proposed legislation..  ..........  ..........       -1.2        -1.5        -1.5        -1.7        -1.8
                             -----------------------------------------------------------------------------------
INCOME SECURITY:
  Spending:
    Discretionary Budget
     Authority..............       29.7        32.8        30.2        36.4        36.2        36.2        36.2
    Mandatory Outlays:
      Existing law..........      192.3       202.4       214.8       223.4       232.4       240.9       250.1
      Proposed legislation..  ..........  ..........        0.8         1.9         2.2         2.2         2.8
  Credit Activity:
    Direct loan
     disbursements..........          *           *           *         N/A         N/A         N/A         N/A
    Guaranteed loans........          *         0.1         0.1         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............      117.9       132.4       135.3       138.6       141.8       144.9       147.8
    Proposed legislation....  ..........          *         0.3         0.8         0.8         0.8         0.7
                             -----------------------------------------------------------------------------------
SOCIAL SECURITY:
  Spending:
    Discretionary Budget
     Authority..............        3.2         3.2         3.2         3.2         3.2         3.2         3.2
    Mandatory Outlays:
      Existing law..........      376.1       389.2       405.2       423.5       443.9       464.9       487.2
      Proposed legislation..  ..........  ..........          *         0.1         0.1         0.2         0.2
  Tax Expenditures:
    Existing law............       22.8        23.4        24.6        25.9        27.4        29.0        30.7
                             -----------------------------------------------------------------------------------
VETERANS BENEFITS AND
 SERVICES:
  Spending:
    Discretionary Budget
     Authority..............       18.9        19.3        19.3        19.3        19.3        19.3        19.3
    Mandatory Outlays:
      Existing law..........       23.3        24.3        24.7        25.3        25.9        27.0        27.6
      Proposed legislation..  ..........  ..........        0.3         0.6         1.0         0.6         0.9
  Credit Activity:
    Direct loan
     disbursements..........        1.3         2.0         0.7         N/A         N/A         N/A         N/A
    Guaranteed loans........       39.9        32.6        31.2         N/A         N/A         N/A         N/A
  Tax Expenditures:
    Existing law............        3.0         3.1         3.3         3.4         3.6         3.7         3.9
                             -----------------------------------------------------------------------------------
ADMINISTRATION OF JUSTICE:
  Spending:
    Discretionary Budget
     Authority..............       24.8        26.2        26.4        26.8        26.9        26.7        26.8
    Mandatory Outlays:
      Existing law..........        0.7         1.0         0.8         0.6         0.6         0.5         2.1
      Proposed legislation..  ..........  ..........  ..........  ..........  ..........  ..........       -1.5
                             -----------------------------------------------------------------------------------
GENERAL GOVERNMENT:
  Spending:
    Discretionary Budget
     Authority..............       12.1        13.2        12.7        13.5        13.2        13.3        13.2
    Mandatory Outlays:
      Existing law..........        1.4         2.4         1.4         1.2         1.1         1.1         1.3
      Proposed legislation..  ..........  ..........        0.1         0.1         0.1         0.1         0.1

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  Tax Expenditures:
    Existing law............       56.8        59.2        61.6        64.1        66.9        69.7        72.9
    Proposed legislation....  ..........  ..........          *           *         0.1         0.1         0.1
                             -----------------------------------------------------------------------------------
NET INTEREST:
    Mandatory Outlays:
      Existing law..........      243.4       227.2       215.2       205.9       194.7       183.2       173.0
  Tax Expenditures:
    Existing law............        1.0         1.0         1.1         1.1         1.2         1.2         1.3
                             -----------------------------------------------------------------------------------
ALLOWANCES:
  Spending:
    Discretionary Budget
     Authority..............  ..........        7.6        -0.3       -47.7       -41.6       -20.5       -22.5
    Mandatory Outlays:
      Proposed legislation..  ..........  ..........  ..........       -2.8        -3.9        -4.6        -4.7
                             -----------------------------------------------------------------------------------
UNDISTRIBUTED OFFSETTING
 RECEIPTS:
  Spending:
    Discretionary Budget
     Authority..............  ..........  ..........       -2.8         1.1         1.1        -0.2        -0.2
    Mandatory Outlays:
      Existing law..........      -47.2       -40.0       -42.3       -45.3       -51.3       -45.9       -46.7
      Proposed legislation..  ..........  ..........       -0.6        -0.8        -0.9        -1.0        -1.0
                             -----------------------------------------------------------------------------------
FEDERAL GOVERNMENT TOTAL:
  Spending:
    Discretionary Budget
     Authority..............      534.2       575.0       555.0       540.3       547.2       578.0       585.5
    Mandatory Outlays:
      Existing law..........    1,097.9     1,145.9     1,177.4     1,215.6     1,241.8     1,297.7     1,348.0
      Proposed legislation..  ..........         -*        -3.2        -2.6        -3.2        -4.6        -5.3
  Credit Activity:
    Direct loan
     disbursements..........       28.7        39.6        36.2         N/A         N/A         N/A         N/A
    Guaranteed loans........      336.8       311.4       329.8         N/A         N/A         N/A         N/A
----------------------------------------------------------------------------------------------------------------
* $50 million or less.
N/A = Not available.