[Analytical Perspectives]
[Other Technical Presentations]
[15. 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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15. 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 recent legislative changes to the Highway Trust Fund and the
reclassification of most Indian tribal trust funds as non-budgetary.
Information is also provided about the income and outgo of four Federal
funds that are financed by earmarked collections similar to trust funds.
This section does not reflect the President's proposed reform of the
Social Security system.
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 earmark collections for spending on specific purposes.
Where the law requires that Federal fund collections from a specified
source be earmarked to finance a particular program, such as a portion
of 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. Like special funds and revolving funds, they earmark
collections for spending on specific purposes. 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.
There are a few trust revolving funds that are credited with collections
earmarked by law to carry out a cycle of business-type operations. Trust
funds also include a few small funds established to carry out the terms
of a conditional gift, bequest, or court settlement.
There is no substantive difference between trust funds and special
funds or between revolving funds and trust revolving funds. 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
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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 invested, 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 15-1 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 15-1 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.
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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).
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In order to derive unified budget receipts and outlays, Table 15-1
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.
Income, Outgo, and Balances of Trust Funds
Table 15-2 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 15-1 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 15-1. 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 $25 billion in 1998. Table
15-2, 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 are
estimated to grow substantially, as they have over the past two decades.
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Table 15-1. RECEIPTS, OUTLAYS, AND SURPLUS OR DEFICIT BY FUND GROUP
(In billions of dollars)
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Estimate
1998 -----------------------------------------------------------------
actual 1999 2000 2001 2002 2003 2004
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Receipts:
Federal funds cash income:
From the public................ 1,151.1 1,182.4 1,232.3 1,256.5 1,311.6 1,346.8 1,409.0
From trust funds............... 1.1 1.1 2.9 2.2 1.1 1.1 1.2
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Total, Federal funds cash
income........................ 1,152.2 1,183.5 1,235.2 1,258.7 1,312.7 1,348.0 1,410.2
Trust funds cash income:
From the public................ 645.9 700.2 722.0 748.2 777.7 805.2 834.8
From Federal funds:
Interest..................... 115.5 120.8 126.8 132.0 139.9 148.4 157.1
Other........................ 146.0 152.9 161.2 172.6 182.9 193.5 203.8
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Total, trust funds cash
income.................... 907.4 973.9 1,010.0 1,052.8 1,100.5 1,147.2 1,195.8
Offsetting receipts.............. -337.9 -351.1 -362.2 -378.1 -406.2 -420.1 -440.5
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Total, unified budget receipts. 1,721.8 1,806.3 1,883.0 1,933.3 2,007.1 2,075.0 2,165.5
Outlays:
Federal funds cash outgo......... 1,244.2 1,294.0 1,302.7 1,311.3 1,330.0 1,371.9 1,414.2
Trust funds cash outgo........... 746.2 784.2 825.2 866.0 896.5 941.2 984.2
Offsetting receipts.............. -337.9 -351.1 -362.2 -378.1 -406.2 -420.1 -440.5
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Total, unified budget outlays.. 1,652.6 1,727.1 1,765.7 1,799.2 1,820.3 1,893.0 1,957.9
Surplus or deficit (-):
Federal funds.................... -92.0 -110.5 -67.5 -52.7 -17.3 -23.9 -4.0
Trust funds...................... 161.2 189.8 184.8 186.8 204.0 205.9 211.6
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Total, unified surplus/deficit
(-)........................... 69.2 79.3 117.3 134.1 186.7 182.0 207.6
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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.
The size of the anticipated balances is unprecedented, and it results mainly from relatively recent changes in
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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 eightfold from
1982 to 1998, from $205 billion to $1.6 trillion. Under the proposals in
the President's budget, the balances are estimated to increase by
approximately 70 percent by the year 2004, rising to $2.8 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. These
funds are not set up to be pension funds, like the funds 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, have any impact on the Government's ability 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
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Table 15-2. INCOME, OUTGO, AND BALANCES OF TRUST FUNDS GROUP
(In billions of dollars)
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Estimate
1998 -----------------------------------------------------------------------
actual 1999 2000 2001 2002 2003 2004
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Total Trust Funds \1\
Balance, start of year 1,515.9 1,669.0 1,856.9 2,041.6 2,228.4 2,432.5 2,638.5
Income:
Governmental receipts............................................. 609.5 660.8 685.2 709.5 736.9 763.7 792.2
Proprietary receipts.............................................. 43.9 47.2 45.4 47.8 50.6 51.9 53.7
Receipts from Federal funds:
Interest........................................................ 115.7 120.9 126.9 133.8 141.6 150.1 158.8
Other........................................................... 163.3 184.0 188.7 196.9 206.7 216.0 226.9
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Subtotal, income.............................................. 932.3 1,012.9 1,046.2 1,088.0 1,135.8 1,181.8 1,231.5
Outgo:
To the public..................................................... 769.9 822.1 858.4 899.0 930.5 974.6 1,018.6
Payments to Federal funds......................................... 1.1 1.1 2.9 2.2 1.1 1.2 1.2
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Subtotal, outgo............................................... 771.0 823.2 861.4 901.2 931.7 975.8 1,019.8
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. 45.6 68.8 57.9 53.0 62.5 55.9 53.0
Interest........................................................ 115.7 120.9 126.9 133.8 141.6 150.1 158.8
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Subtotal, surplus or deficit (-).............................. 161.2 189.8 184.8 186.8 204.1 206.0 211.7
Adjustments:
Transfers/lapses (net)............................................ -8.2 --* --* .......... .......... .......... ..........
Other adjustments................................................. * --* --* .......... .......... .......... ..........
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Total, change in fund balance................................... 153.1 189.7 184.8 186.8 204.1 206.0 211.7
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Balance, end of year 1,669.0 1,858.7 2,041.6 2,228.4 2,432.5 2,638.5 2,850.2
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* Less than $50 million.
\1\ The difference between 1999 end of year balance and 2000 start of year balance is due to the removal of most tribal trust funds from the budget
totals. See the discussion regarding changes in the budget classification of tribal trust funds in this chapter for additional information.
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, which would provide more real
economic resources to support the benefits.
Table 15-5, which appears at the end of the chapter, shows estimates
of income, outgo, and balances for 1998 through 2004 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 15-2 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 15-6, which also 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.
Modifications to the Highway Trust Fund
The Transportation Equity Act for the 21st Century (TEA-21), which
became law June 9, 1998, made some important changes to the operation of
the Highway Trust Fund. The Highway Trust Fund, which is composed of the
highway account and the mass transit account, will continue to be
financed by earmarked taxes on gasoline and other fuels. However, TEA-21
provided that the Highway Trust Fund no longer receive interest earnings
on its balances as of September 30, 1998. The Act also provided that
highway account cash balances in excess of $8 billion be transferred to
the General fund as of October 1, 1998. The cash balances of the mass
transit account are not affected by this change. As shown in Table 15-5,
the Highway Trust Fund balances are expected to remain at approximately
$30 billion from 1999 to 2004.
Other significant changes provided in TEA-21 that affect the Highway
Trust Fund include the creation of separate budget categories for
Federal highway and mass transit spending and the establishment of a
linkage between Highway Trust Fund tax receipts and highway spending.
TEA-21 also extends most highway-related taxes to 2005 and authorizes
expenditures from
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the Highway Trust Fund for programs under the Act and previous
authorization acts through 2003. Some of these changes are further
discussed in Chapter 13, ``Preview Report.''
Changes in the Budget Classification of Tribal Trust Funds
Beginning in fiscal year 2000, the Federal budget totals exclude
trust funds that are owned by Indian tribes and held and managed in a
fiduciary capacity by the Government on the tribes' behalf. \5\ These
tribal trust funds, together with other trust funds, have been included
in the budget totals since the adoption of the unified budget in 1969.
The legal obligations of the Secretary of the Interior, such as
distributing interest earnings on certain trust funds to the Indian
tribes, will remain unchanged, and the tribal trust funds will continue
to be managed by the Federal government according to present law.
Ownership of the trust fund assets, whether by the Government or the
tribe, will also remain unchanged. As shown in Table 15-3, the
Department of the Interior estimates that approximately $2 billion of
assets in approximately 1,500 tribal trust funds are being removed from
budgetary accounts as of fiscal year 2000. These figures are based on
preliminary estimates; the actual amount of tribal trust fund assets to
be removed from the budget will not be determined until the
classification process is complete.
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\5\ Tribal funds classified as special funds in the Federal budget are
also within the scope of this budgetary reclassification. For the
purposes of this discussion, the term ``trust fund'' refers to special
funds, as well as those accounts designated by law as trust funds.
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The transactions of all tribal trust funds are included in the
Federal budget through fiscal year 1999. The budget does not include the
transactions of the reclassified tribal trust funds after their removal
from the budget in fiscal year 2000. As explained in more detail below,
the transactions are instead included in the deposit fund totals
compiled by the Treasury Department. The one-time transfer of on-budget
tribal trust fund assets to non-budgetary deposit funds is not recorded
as a budget outlay. The historical data on the budget will not be
revised, due to the relatively small amount of transactions to be
excluded from the budget and the difficulty of retroactively revising
the numerous accounts affected by the reclassification.
The Government currently holds $2.5 billion in approximately 1,600
trust funds for roughly 315 Indian tribes. Over one-third of these
assets are held on behalf of six Indian tribes. These trust funds are
included in the Federal budget even though, in most cases, the assets of
the fund are owned by the Indian tribes. The Government also holds $430
million for individual Indians in about 300,000 accounts as of September
30, 1998. These individual Indian accounts are classified as deposit
funds, which are non-budgetary, and their categorization will not be
affected by the reclassification of the tribal trust funds.
The tribal trust funds are composed of funds belonging to Indian
tribes, and in some cases the Federal Government, that are required or
authorized by law to be deposited in the U.S. Treasury or managed ``in
trust'' by the United States. Tribal trust fund assets are derived from
various sources, including payments for land cessions by treaty;
proceeds from sales of land under confiscatory acts of Congress;
proceeds from sales and leases of tribal lands and other natural
resources; judgement awards made by the Indian Claims Commission and the
United States Court of Claims; monies appropriated to fund legislative
settlements; and interest on trust fund investments. For the purposes of
this discussion, tribal trust funds are divided into three general
categories, which are described later in this chapter and appear in
Table 15-3.
Consistency with the Unified Budget.--Reclassifying tribal trust funds
as non-budgetary is consistent with the unified budget concepts
developed by the President's Commission on Budget Concepts in 1967. \6\
The Commission recommended that the budget include all the Federal
Government's programs and all the fiscal transactions of these programs
with the public. The Commission used several criteria in determining
which entities or activities should be included in the Federal budget:
the ownership of the entity or activity, the sources of its capital, the
selection of its managers, and the degree of control the President and
Congress
\6\ Report of the President's Commission on Budget Concepts
(Washington, D.C.: U.S. Government Printing Office, October 1967), p.
25.
Table 15-3. TRIBAL TRUST FUND BALANCES AND PROPOSED BUDGETARY
TREATMENT: PRELIMINARY ESTIMATES
(dollars in millions as of September 30, 1998)
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Type of Tribal Trust Fund Number Amount
------------------------------------------------------------------------
To remain on-budget:
Funds derived from legislative acts and for
Government obligations........................... 30 401
Currently on-budget, to be reclassified as non-
budgetary (deposit funds):
Funds with assets derived from tribe-owned natural
resources........................................ 550 475
Funds funded by judgments against the United
States........................................... 900 1,025
Funds derived from legislative acts and for
Government obligations........................... 120 600
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Subtotal, funds to be reclassified as non-
budgetary...................................... 1,570 2,100
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Grand Total......................................... 1,600 2,501
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have over its program and budget. In discussing these criteria, the
Commission stated that ``no one of these . . . [criteria] is conclusive,
and at the margin, where boundary questions arise, decisions have been
made on the basis of a net weighing of as many relevant considerations
as possible.'' \7\ With this in mind, the Commission recommended a
comprehensive budget with almost no exception. The Commission reasoned
that entities or activities having characteristics consistent with other
Federal entities or activities, such as Federal ownership or Presidential
and Congressional control over its program or budget, should be included
in the unified budget. Other entities and activities should be excluded.
\7\ Ibid.
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The Commission's distinction between budgetary and non-budgetary
activities is exemplified by the treatment of two Federal employee
retirement funds: the Civil Service Retirement and Disability (CSRD)
trust fund and the Thrift Savings Fund. The Civil Service Retirement and
Disability trust fund, which pays annuities to retired Federal
employees, is included in the budget because the Government owns the
assets and can make decisions about the level and timing of future
pension benefit payments. Individuals do not have separate accounts in
the CSRD trust fund, and the fund assets do not represent the present
value of future pensions earned to date under current law. Conversely,
the Thrift Savings Fund, which holds assets for Federal employees who
participate in the Thrift Savings Plan, is non-budgetary. This fund is
managed by the Government in a fiduciary capacity on behalf of the
participants. The Plan is a defined contribution plan; the assets are
credited to individual employees' accounts; and the assets in an account
are owned by the employee, who has a legal claim on the specific assets
in that account and no more. Employee decisions determine most of the
amounts contributed to the Thrift Savings Fund, either directly from the
employee or from the Federal matching contribution, with only a
relatively small part being contributed to the fund automatically.
Employees make decisions about investments among the statutorily
prescribed funds. An employee may borrow from his or her account for
specified purposes, such as to purchase a house or finance educational
expenses. \8\
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\8\ A small number of trust funds (according to the private sector
usage of this term) have been established with the Government as the
beneficiary as well as the fiduciary. These funds have especially been
established from gifts by the public to the Government, such as gifts
and donations to the Architect of the Capitol, gifts and bequests to the
Department of Agriculture, and gifts and contributions to the
Corporation for National and Community Service. These funds are included
in the budget totals because the Government owns the fund assets.
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The reclassification of the tribal trust funds as non-budgetary fits
neatly with the ownership criterion of the Commission and the budgetary
treatment of the Thrift Savings Fund and other deposit funds. Based on
the Commission's recommendations, the budget generally does not include
activities or agencies which are not owned by the Federal government.
Deposit funds are non-budgetary accounts that record amounts held
temporarily until ownership is determined (for example, earnest money
paid by bidders for mineral leases) or held by the Government as agent
for others (for example, state and local income taxes withheld from
Federal employees' salaries and not yet paid to the states and
localities). As will be described in more detail below, most tribal
trust funds share the principal defining characteristics of deposit
funds--private ownership--and therefore ought to be classified in the
same way rather than included in the budget. \9\
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\9\ Non-budgetary activities, including deposit funds, are discussed
further in Chapter 19, ``Off-Budget Federal Entities and Non-Budgetary
Activities.'' Deposit funds are also discussed in a section of Chapter
23, ``Budget Systems and Concepts and Glossary.''
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The removal of most tribal trust funds from the budget is also
consistent with the Commission's criteria regarding the source of
capital and the extent of federal control. As will be discussed in more
detail below, the assets of most tribal trust funds--whether derived
from tribe-owned natural resources, judgement awards, or appropriated
legislative settlements--are monies that, based on legal requirements,
are owned by the tribes. The exceptions are those trust funds that are
funded by appropriations to achieve some public policy goal, as opposed
to resolve a legal claim, and that are established in a manner whereby
ownership of the fund assets is not conveyed to the tribes. As discussed
below, these funds are to remain on-budget. With regard to the extent of
Executive and Congressional control, it is clear that the Government's
control over most tribal trust funds is significantly limited. The
Government acts as the fiduciary of the fund assets and, at most, has
some influence over the tribally developed use plans for judgement
awards. These considerations outweigh the fact that the Government
selects who will manage the fund assets. Moreover, as will be described
below, in certain circumstances the tribes can withdraw and manage the
assets of the fund.
Analyzing the Tribal Trust Funds.--The Department of the Interior and
OMB are using the following criteria to guide their analysis of the
trust funds. Some criteria are applicable to all Federal government
trust funds, while others relate specifically to the budgetary treatment
of tribal trust funds.
Are monies deposited voluntarily into the trust fund?
Can the beneficiary of the trust fund withdraw the assets
of the fund at will?
Can the beneficiary of the trust fund pledge the assets of
the trust as collateral?
Does the amount to be paid to the beneficiary of the trust
fund depend on the amount in the fund, or does the Government
guarantee a certain benefit amount?
Can the Government unilaterally decide to withdraw money
from a tribal trust fund and use it to fund a non-tribal
purpose, or would this constitute a Federal taking?
Can the Government unilaterally change the terms of the
trust or use the money in a tribal trust fund account for a
purpose other than specified by the trust agreement, as long
as the funds
[[Page 341]]
are used for the benefit of the tribe? (As opposed to the
Government simply deciding whether a use is consistent with
the terms of the trust.)
Does tribal ``ownership'' of the money differ substantively
from the individual Indians' ownership of the funds held in
the individual Indian accounts, which are held in deposit
funds outside of the budget?
If the law establishes an endowment for a tribal trust fund
and stipulates that the tribes can only spend the interest
earnings on the endowment, do the tribes own the endowment?
Do any of the existing balances of the trust fund result
from appropriations for what are the equivalent of grants,
such as for development or schools?
Is the amount and timing of payments from the trust fund
linked to federal payments to the beneficiary of the trust
fund or vice-versa?
A preliminary review of the tribal trust funds by the Department of
the Interior and OMB indicates that two general types of tribal trust
funds should be reclassified as non-budgetary: those funded from
revenues generated by tribe-owned natural resources and those funded by
judgements against the United States government. The third general
category of tribal trust funds, those derived from legislative acts and
for fulfilling Government obligations to tribes, includes some funds to
be reclassified as non-budgetary, and others that should remain on-
budget. The Department of the Interior and OMB will continue to review
these trust funds to determine their proper budgetary treatment
beginning in fiscal year 2000. A description of the general categories
of tribal trust funds and their proposed treatment follows.
Trust funds with assets derived from tribe-owned natural resources--
Proposed treatment: Non-budgetary.
As shown in Table 15-3, an estimated $475 million in 550 trust funds
with assets derived from tribe-owned natural resources is being removed
from the budget totals. These privately owned trust funds are managed by
the Government in a fiduciary capacity. Tribes hold beneficial title to
the natural resources from which the income originates, and thus own the
resulting income. Some leases require the royalties to be paid directly
to one or more tribes or to individual Indians. These payments are from
one private party to another and thus outside the budget. In other
cases, royalties are deposited in tribal trust funds, which are
currently included in the budget. Sometimes the lessee makes a single
payment to a suspense account (a type of deposit fund) for all three
types of payments, and the Department of the Interior subsequently
determines what amount should be paid to individuals, tribes, or the
tribal trust funds. Distributions from the suspense account to tribes or
individuals are not recorded in the budget. Distributions to tribal
trust funds are recorded in the budget as offsetting receipts. At their
discretion, and subject to tribal law and the Secretary of Interior's
fiduciary responsibilities, tribes can withdraw their money from the
tribal trust fund (as an outlay) or leave it in the trust fund, where it
is invested by the Government.
There does not appear to be a substantive reason to treat payments to
the tribal trust funds differently from payments made directly to the
beneficiaries or that only pass through suspense accounts. The
Government's role as trustee is primarily to ensure that the funds are
distributed and managed correctly. The Government cannot take money from
these trust funds to use for other purposes.
Trust funds funded by judgements against the United States--Proposed
treatment: Non-budgetary.
As shown in Table 15-3, approximately $1 billion in 900 trust funds
funded by judgement awards is being removed from the budget totals.
These funds are derived from Indian Claims Commission awards or U.S.
Court of Claims awards, and are paid out of the Federal Claims,
Judgements, and Relief Act fund. Court decisions specify that these
funds are payments for property damages. As such, the Government could
not withdraw the funds and use them for other purposes without
resurrecting the claim against the Government. This also appears to be
true in cases where the settlement provides an endowment for a tribe and
stipulates that only the earnings can be spent. The tribe, not the
Government, owns the endowment, and the tribe receives the full benefit
of earnings on the endowment. Congress can revise the use plans that the
tribe develops, but it cannot change the judgement amount.
The funds are deposited in the trust fund until a use plan is
approved. The use plan could pay the money to individual Indian accounts
or to the tribes, or the funds could be held in a tribal trust fund
until paid out for tribal activities specified in the plan. Subject to
approval by the Department of the Interior, the tribes can withdraw and
manage the funds themselves.
Trust funds derived from legislative acts and for fulfilling
Government obligations to tribes--Proposed treatment: Mixed--On-budget
and Non-budgetary.
The funds in this category are diverse and the proposed budgetary
treatment is mixed. Some funds were created as a result of legislative
settlements, such as for water rights or land claims, and, like the
previous category, should be considered non-budgetary. Others are
composed of appropriated monies to make payments to tribes for public
policy goals, such as infrastructure development. If these funds did not
resolve a legal claim and were established in a manner that did not
convey ownership of the trust to the tribe, they should be included in
the budget. As shown in Table 15-3, the majority of funds in this
category are being removed from the budget totals.
For some of the trust funds in this category, Federal legislation
created a corpus and provided that only interest accruing on the corpus
shall be available for obligation. Since tribes do not have access to
the corpus, and the fund was not established to settle a valid legal
claim against the Government, the question of ownership of the corpus is
raised. The Department of the
[[Page 342]]
Interior and OMB will review the legislation that established each of
these trust funds to determine ownership of the corpus. If it is
determined that the tribe owns the corpus, then the funds will be
removed from the budget totals. Otherwise, the funds will remain on-
budget.
Budgetary Effect of Reclassifying Tribal Trust Funds as Non-
budgetary.--Excluding the transactions of most tribal trust funds from
the budget will have little effect on Federal outlays. As shown in Table
15-4, removing the tribal trust funds from the budget is estimated to
decrease net outlays, and increase the unified budget surplus, by
approximately $10 million each fiscal year from 2000 to 2003. These
preliminary estimates are based on the proposed budgetary treatment
presented in Table 15-3. The difference between these estimates and the
actual budget effect should be minimal in dollar terms. It should be
noted that, as mentioned previously, the budget does not record outlays
for the one time transfer of on-budget tribal trust fund assets to non-
budgetary deposit funds.
The removal of tribal trust funds from the budget affects Federal
outlays in a number of ways. First, interest payments on Treasury
securities held by these tribal trust funds, which are recorded as
intra-budgetary transactions through 1999, are recorded as disbursements
to the public in subsequent years. Second, as shown in Table 15-4,
removing tribal trust funds from the budget decreases offsetting
receipts from the public for royalties and other income from tribe-owned
natural resources. Third, the budget no longer records the disbursement
of these royalties and income from the Government to the tribes. This
reduces disbursements by the same amount as offsetting receipts, but not
necessarily in the same years.
Removing the tribal trust funds from the budget also shifts the
timing of disbursements to the public resulting from Federal payments to
Indian tribes for judgements and settlements. In fiscal year 1999, these
payments are not recorded as outlays until the funds are disbursed to
the tribes. In subsequent years, the payments are recorded as
disbursements to the public when the funds are transferred to the
tribes' deposit funds.
Table 15-4. OUTLAY IMPACT OF RECLASSIFYING TRIBAL TRUST FUNDS AS NON-BUDGETARY \1\
(In millions of dollars)
----------------------------------------------------------------------------------------------------------------
1999 2000 2001 2002 2003
----------------------------------------------------------------------------------------------------------------
Pre-reclassification treatment of tribal trust funds:
Offsetting receipts from the public.................... 338 338 339 342 342
Disbursements to the public............................ 431 429 431 434 434
------------------------------------------------------
Net impact on outlays.................................. 93 91 92 92 92
Effect of reclassifying tribal trust funds as deposit
funds (non-budgetary):
Offsetting receipts from the public.................... ......... -323 -322 -324 -323
Disbursements to the public............................ ......... -333 -333 -335 -333
------------------------------------------------------
Net impact on outlays.................................. ......... -10 -11 -11 -10
Post-reclassification treatment of tribal trust funds:
Offsetting receipts from the public.................... 338 15 17 18 19
Disbursements to the public............................ 431 96 98 99 101
------------------------------------------------------
Net impact on outlays.................................. 93 81 81 81 82
----------------------------------------------------------------------------------------------------------------
\1\ Does not include intrabudgetary transactions.
[[Page 343]]
Table 15-5. INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS
(In billions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimate
1998 -----------------------------------------------------------------------
actual 1999 2000 2001 2002 2003 2004
--------------------------------------------------------------------------------------------------------------------------------------------------------
Airport and Airway Trust Fund
Balance, start of year.............................................. 6.4 9.1 12.3 13.9 15.4 17.3 19.0
Income:.............................................................
Governmental receipts............................................. 8.1 10.4 10.7 11.3 11.9 12.4 13.0
Proprietary receipts.............................................. * * * * * * *
Receipts from Federal funds:
Interest........................................................ 0.5 0.6 0.8 0.9 0.9 1.0 1.2
Other........................................................... * 0.2 0.1 0.1 0.1 0.1 0.1
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 8.7 11.2 11.6 12.2 12.9 13.5 14.2
Outgo:
To the public..................................................... 5.9 8.0 10.1 10.6 11.1 11.8 12.3
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 5.9 8.0 10.1 10.6 11.1 11.8 12.3
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. 2.2 2.6 0.8 0.7 0.9 0.7 0.7
Interest........................................................ 0.5 0.6 0.8 0.9 0.9 1.0 1.2
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).................................. 2.8 3.2 1.6 1.6 1.8 1.7 1.9
Adjustments:
Transfers/lapses (net).......................................... --* --* .......... .......... .......... .......... ..........
Other adjustments............................................... * * .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 2.8 3.2 1.6 1.6 1.8 1.7 1.9
===================================================================================
Balance, end of year................................................ 9.1 12.3 13.9 15.4 17.3 19.0 20.9
Federal Employees Health Benefits Fund
Balance, start of year.............................................. 6.7 6.2 6.0 5.9 5.7 5.4 5.2
Income:.............................................................
Governmental receipts............................................. .......... .......... .......... .......... .......... .......... ..........
Proprietary receipts.............................................. 4.5 4.8 5.5 6.0 6.5 7.1 7.6
Receipts from Federal funds:
Interest........................................................ 0.5 0.4 0.4 0.3 0.3 0.3 0.4
Other........................................................... 11.8 12.7 14.1 15.1 16.4 17.7 19.1
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 16.7 17.9 20.0 21.5 23.2 25.1 27.0
Outgo:
To the public..................................................... 17.1 18.1 20.1 21.6 23.4 25.3 27.3
Payments to Other funds........................................... * * * * * * *
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 17.2 18.2 20.1 21.7 23.5 25.3 27.3
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. -0.9 -0.7 -0.5 -0.5 -0.6 -0.6 -0.7
Interest........................................................ 0.5 0.4 0.4 0.3 0.3 0.3 0.4
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. -0.5 -0.2 -0.1 -0.2 -0.3 -0.2 -0.3
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... -0.5 -0.2 -0.1 -0.2 -0.3 -0.2 -0.3
===================================================================================
Balance, end of year................................................ 6.2 6.0 5.9 5.7 5.4 5.2 4.9
Federal Civilian Employees Retirement Funds
Balance, start of year.............................................. 430.9 460.6 491.5 521.8 551.8 581.4 609.8
Income:.............................................................
Governmental receipts............................................. 4.3 4.3 4.4 4.5 4.5 3.9 3.7
Proprietary receipts.............................................. .......... .......... .......... .......... .......... .......... ..........
Receipts from Federal funds:
Interest........................................................ 32.5 34.9 35.4 36.1 36.9 37.7 38.3
[[Page 344]]
Other........................................................... 36.6 37.0 37.7 38.6 39.4 40.0 41.1
Receipts from Trust funds......................................... .......... * * * * * *
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 73.4 76.2 77.6 79.2 80.9 81.7 83.0
Outgo:
To the public..................................................... 43.6 45.3 47.3 49.3 51.2 53.2 55.4
Payments to Other funds........................................... .......... * * * * * *
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 43.6 45.3 47.3 49.3 51.2 53.2 55.4
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. -2.7 -4.1 -5.1 -6.2 -7.3 -9.2 -10.7
Interest........................................................ 32.5 34.9 35.4 36.1 36.9 37.7 38.3
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 29.8 30.9 30.3 30.0 29.7 28.4 27.6
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... * --* --*
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 29.8 30.9 30.3 30.0 29.7 28.4 27.6
===================================================================================
Balance, end of year................................................ 460.6 491.5 521.8 551.8 581.4 609.8 637.5
Federal Old-Age, Survivors and Disability Insurance Trust Funds
Balance, start of year.............................................. 630.9 730.3 852.2 983.5 1,119.3 1,262.5 1,413.3
Income:.............................................................
Governmental receipts............................................. 415.8 444.0 465.3 482.6 501.8 522.2 542.9
Proprietary receipts.............................................. * 0.1 0.1 0.1 0.1 0.1 0.1
Receipts from Federal funds:
Interest........................................................ 46.6 51.9 56.5 62.1 68.5 75.4 82.7
Other........................................................... 18.5 21.0 20.5 21.5 22.9 24.3 25.8
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 480.9 517.0 542.4 566.3 593.2 622.0 651.6
Outgo:
To the public..................................................... 377.3 391.0 407.2 425.6 446.1 467.2 489.6
Payments to Other funds........................................... 4.2 4.0 3.9 5.0 4.0 4.0 4.0
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 381.5 395.1 411.1 430.6 450.0 471.2 493.5
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. 52.8 70.1 74.8 73.6 74.7 75.4 75.3
Interest........................................................ 46.6 51.9 56.5 62.1 68.5 75.4 82.7
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 99.4 121.9 131.3 135.7 143.2 150.9 158.1
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... .......... .......... * .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 99.4 121.9 131.3 135.7 143.2 150.9 158.1
===================================================================================
Balance, end of year................................................ 730.3 852.2 983.5 1,119.3 1,262.5 1,413.3 1,571.4
Foreign Military Sales Trust Fund
Balance, start of year.............................................. 5.9 6.0 6.0 6.0 6.0 6.0 6.0
Income:.............................................................
Governmental receipts............................................. .......... .......... .......... .......... .......... .......... ..........
Proprietary receipts.............................................. 14.1 13.3 12.7 12.1 12.1 9.7 8.6
Receipts from Federal funds:
Interest........................................................ .......... .......... .......... .......... .......... .......... ..........
Other........................................................... .......... .......... .......... .......... .......... .......... ..........
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 14.1 13.3 12.7 12.1 12.1 9.7 8.6
Outgo:
To the public..................................................... 14.0 13.3 12.7 12.1 12.1 9.7 8.6
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 14.0 13.3 12.7 12.1 12.1 9.7 8.6
[[Page 345]]
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. 0.1 .......... .......... .......... .......... .......... ..........
Interest........................................................ .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 0.1 .......... .......... .......... .......... .......... ..........
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 0.1 .......... .......... .......... .......... .......... ..........
===================================================================================
Balance, end of year................................................ 6.0 6.0 6.0 6.0 6.0 6.0 6.0
Highway Trust Fund \1\
Balance, start of year.............................................. 22.4 18.4 27.8 28.7 29.0 29.6 30.4
Income:.............................................................
Governmental receipts............................................. 26.6 38.5 33.1 33.6 34.3 34.9 35.5
Proprietary receipts.............................................. 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Receipts from Federal funds:
Interest........................................................ 2.0 .......... .......... .......... .......... .......... ..........
Other........................................................... * * * * * * *
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 28.7 38.6 33.2 33.8 34.4 35.0 35.7
Outgo:
To the public..................................................... 24.5 29.2 32.3 33.4 33.8 34.2 34.7
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, Outgo............................................... 24.5 29.2 32.3 33.4 33.8 34.2 34.7
Change in fund balance:
Surplus or deficit:
Excluding interest.............................................. 2.1 9.4 1.0 0.3 0.6 0.8 1.0
Interest........................................................ 2.0 .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit.................................. 4.2 9.4 1.0 0.3 0.6 0.8 1.0
Adjustments:
Transfers/lapses (net).......................................... -8.2 --* --* .......... .......... .......... ..........
Other adjustments............................................... .......... .......... * .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... -4.0 9.3 0.9 0.3 0.6 0.8 1.0
===================================================================================
Balance, end of year................................................ 18.4 27.8 28.7 29.0 29.6 30.4 31.4
Medicare: Federal Hospital Insurance (HI) Trust Fund
Balance, start of year.............................................. 116.0 116.9 117.6 124.0 129.2 138.8 145.3
Income:.............................................................
Governmental receipts............................................. 120.0 127.5 132.1 137.1 142.6 148.6 154.8
Proprietary receipts.............................................. 1.3 1.4 1.4 1.7 1.9 2.0 2.2
Receipts from Federal funds:
Interest........................................................ 9.2 9.2 9.1 9.0 9.0 9.1 9.1
Other........................................................... 7.8 9.6 9.8 10.0 10.6 11.1 11.7
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 138.2 147.6 152.4 157.8 164.1 170.9 177.8
Outgo:
To the public..................................................... 137.3 146.9 146.0 152.5 154.5 164.3 172.4
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 137.3 146.9 146.0 152.5 154.5 164.3 172.4
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. -8.2 -8.4 -2.8 -3.8 0.5 -2.6 -3.7
Interest........................................................ 9.2 9.2 9.1 9.0 9.0 9.1 9.1
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 0.9 0.7 6.3 5.3 9.5 6.5 5.4
Adjustments:
Transfers/lapses (net).......................................... * .......... .......... .......... .......... .......... ..........
[[Page 346]]
Other adjustments............................................... --* --* --* .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 0.9 0.7 6.3 5.3 9.5 6.5 5.4
===================================================================================
Balance, end of year................................................ 116.9 117.6 124.0 129.2 138.8 145.3 150.7
Medicare: Federal Supplementary Medical Insurance (SMI) Trust Fund
Balance, start of year.............................................. 35.2 40.9 46.2 45.4 43.4 45.7 47.0
Income:.............................................................
Governmental receipts............................................. .......... .......... .......... .......... .......... .......... ..........
Proprietary receipts.............................................. 19.4 19.9 21.4 23.6 25.7 28.6 30.8
Receipts from Federal funds:
Interest........................................................ 2.6 2.9 2.9 2.9 2.9 2.9 2.9
Other........................................................... 60.9 75.3 76.5 80.6 85.2 89.6 94.5
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 82.9 98.1 100.9 107.1 113.8 121.1 128.2
Outgo:
To the public..................................................... 77.3 92.8 101.7 109.1 111.4 119.8 126.9
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 77.3 92.8 101.7 109.1 111.4 119.8 126.9
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. 3.1 2.4 -3.7 -4.9 -0.5 -1.6 -1.6
Interest........................................................ 2.6 2.9 2.9 2.9 2.9 2.9 2.9
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 5.7 5.3 -0.8 -2.0 2.4 1.2 1.3
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 5.7 5.3 -0.8 -2.0 2.4 1.2 1.3
===================================================================================
Balance, end of year................................................ 40.9 46.2 45.4 43.4 45.7 47.0 48.3
Military Retirement Fund
Balance, start of year.............................................. 139.2 146.0 152.1 159.2 166.7 174.6 182.8
Income:.............................................................
Governmental receipts............................................. .......... .......... .......... .......... .......... .......... ..........
Proprietary receipts.............................................. .......... .......... .......... .......... .......... .......... ..........
Receipts from Federal funds:
Interest........................................................ 12.4 12.5 12.7 12.9 13.1 13.3 13.6
Other........................................................... 25.5 25.8 27.5 28.5 29.6 30.6 31.8
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 37.9 38.3 40.2 41.5 42.7 44.0 45.4
Outgo:
To the public..................................................... 31.1 32.2 33.1 34.0 34.9 35.7 36.6
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 31.1 32.2 33.1 34.0 34.9 35.7 36.6
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. -5.6 -6.4 -5.6 -5.5 -5.2 -5.1 -4.8
Interest........................................................ 12.4 12.5 12.7 12.9 13.1 13.3 13.6
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 6.8 6.1 7.1 7.5 7.9 8.2 8.8
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... .......... --* * .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 6.8 6.1 7.1 7.5 7.9 8.2 8.8
===================================================================================
Balance, end of year................................................ 146.0 152.1 159.2 166.7 174.6 182.8 191.5
Railroad Retirement Trust Funds
Balance, start of year.............................................. 15.0 17.1 18.0 19.0 19.8 20.9 22.0
Income:.............................................................
[[Page 347]]
Governmental receipts............................................. 4.4 4.3 4.4 4.5 4.6 4.6 4.7
Proprietary receipts.............................................. .......... .......... .......... .......... .......... .......... ..........
Receipts from Federal funds:
Interest........................................................ 2.0 1.1 1.1 1.1 1.2 1.3 1.4
Other........................................................... 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Receipts from Trust funds......................................... 3.8 3.7 3.6 3.5 3.6 3.6 3.6
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 10.4 9.4 9.4 9.5 9.7 9.8 10.0
Outgo:
To the public..................................................... 8.2 8.2 8.3 8.4 8.4 8.5 8.6
Payments to Other funds........................................... 0.2 0.2 0.2 0.2 0.2 0.2 0.2
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 8.4 8.4 8.5 8.6 8.7 8.7 8.9
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. * -0.1 -0.2 -0.3 -0.2 -0.2 -0.3
Interest........................................................ 2.0 1.1 1.1 1.1 1.2 1.3 1.4
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 2.0 1.0 0.9 0.9 1.0 1.1 1.1
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 2.0 1.0 0.9 0.9 1.0 1.1 1.1
===================================================================================
Balance, end of year................................................ 17.1 18.0 19.0 19.8 20.9 22.0 23.1
Unemployment Trust Fund
Balance, start of year.............................................. 62.1 71.0 78.2 84.6 90.2 96.1 101.0
Income:.............................................................
Governmental receipts............................................. 27.5 28.8 30.4 31.7 33.0 32.8 33.3
Proprietary receipts.............................................. * * * * * * *
Receipts from Federal funds:
Interest........................................................ 4.3 4.4 4.9 5.2 5.6 5.9 6.2
Other........................................................... 0.5 0.5 0.5 0.6 0.6 0.6 0.6
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 32.3 33.7 35.8 37.5 39.1 39.2 40.0
Outgo:
To the public..................................................... 23.5 26.5 29.4 31.8 33.2 34.3 35.6
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 23.5 26.5 29.4 31.8 33.2 34.3 35.6
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. 4.5 2.7 1.5 0.4 0.3 -1.0 -1.7
Interest........................................................ 4.3 4.4 4.9 5.2 5.6 5.9 6.2
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 8.8 7.2 6.4 5.6 5.9 4.9 4.5
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... .......... .......... * .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 8.8 7.2 6.4 5.6 5.9 4.9 4.5
===================================================================================
Balance, end of year................................................ 71.0 78.2 84.6 90.2 96.1 101.0 105.5
Veterans Life Insurance Trust Funds
Balance, start of year.............................................. 13.7 13.7 13.6 13.4 13.0 12.7 12.3
Income:.............................................................
Governmental receipts............................................. .......... .......... .......... .......... .......... .......... ..........
Proprietary receipts.............................................. 0.8 0.8 0.8 0.8 0.7 0.7 0.7
Receipts from Federal funds:
Interest........................................................ 1.1 1.1 1.0 1.0 0.9 0.9 0.8
Other........................................................... * * * * * * *
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 2.0 1.9 1.8 1.7 1.6 1.6 1.5
[[Page 348]]
Outgo:
To the public..................................................... 2.0 2.0 2.0 2.1 2.0 2.0 2.0
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 2.0 2.0 2.0 2.1 2.0 2.0 2.0
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. -1.1 -1.2 -1.2 -1.3 -1.3 -1.3 -1.3
Interest........................................................ 1.1 1.1 1.0 1.0 0.9 0.9 0.8
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. --* -0.1 -0.2 -0.3 -0.3 -0.4 -0.5
Adjustments:
Transfers/lapses (net).......................................... .......... .......... .......... .......... .......... .......... ..........
Other adjustments............................................... --* * --* .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... --* -0.1 -0.2 -0.3 -0.3 -0.4 -0.5
===================================================================================
Balance, end of year................................................ 13.7 13.6 13.4 13.0 12.7 12.3 11.8
Other Trust Funds \2\
Balance, start of year.............................................. 31.3 32.6 35.3 36.4 38.8 41.6 44.4
Income:.............................................................
Governmental receipts............................................. 2.8 3.0 4.7 4.2 4.3 4.3 4.4
Proprietary receipts.............................................. 3.6 6.8 3.4 3.5 3.6 3.6 3.7
Receipts from Federal funds:
Interest........................................................ 2.0 2.0 2.1 2.1 2.2 2.2 2.3
Other........................................................... 1.5 1.6 1.6 1.6 1.7 1.7 1.7
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 9.8 13.4 11.8 11.4 11.7 11.9 12.2
Outgo:
To the public..................................................... 8.1 8.4 8.3 8.4 8.3 8.5 8.6
Payments to Other funds........................................... 0.5 0.5 2.4 0.6 0.6 0.6 0.6
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 8.6 8.9 10.7 8.9 8.9 9.1 9.2
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. -0.7 2.5 -1.0 0.4 0.6 0.6 0.7
Interest........................................................ 2.0 2.0 2.1 2.1 2.2 2.2 2.3
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 1.3 4.5 1.1 2.5 2.7 2.8 2.9
Adjustments:
Transfers/lapses (net).......................................... --* --* .......... .......... .......... .......... ..........
Other adjustments............................................... * --* --* .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 1.3 4.5 1.1 2.5 2.7 2.8 2.9
===================================================================================
Balance, end of year................................................ 32.6 37.1 36.4 38.8 41.6 44.4 47.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million.
Note: Balances shown include committed and uncommitted cash balances.
\1\ Figures reflect two legislative changes to the Highway Trust Fund as per the Transportation Equity Act for the 21st Century (TEA-21): no
accumulation of interest earnings on fund balances beginnng in 1999 and transfer of $8.1 billion in highway account cash balances to the General fund.
See the discussion of modifications to the Highway Trust Fund in this chapter for additional information.
\2\ The difference between 1999 end of year balance and 2000 start of year balance is due to the removal of most tribal trust funds from the budget
totals. See the discussion regarding changes in the budget classification of tribal trust funds in this chapter for additional information.
Table 15-6. INCOME, OUTGO, AND BALANCES OF SELECTED FEDERAL FUNDS
(In billions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimate
1998 -----------------------------------------------------------------------
actual 1999 2000 2001 2002 2003 2004
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 349]]
Abandoned Mine Reclamation Fund
Balance, start of year.............................................. 1.5 1.6 1.8 1.9 2.0 2.2 2.3
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 0.3 0.3 0.2 0.3 0.3
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 0.2 0.2 0.3 0.3 0.2 0.3 0.3
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. * 0.1 * 0.1 0.1 0.1 0.1
Interest........................................................ 0.1 0.1 0.1 0.1 0.1 0.1 0.1
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 0.1 0.1 0.1 0.1 0.2 0.1 0.1
Adjustments:
Transfers/lapses (net).......................................... * .......... .......... .......... .......... .......... ..........
Other adjustments............................................... * .......... .......... .......... .......... .......... ..........
Total, change in fund balance................................. 0.1 0.1 0.1 0.1 0.2 0.1 0.1
===================================================================================
Balance, end of year................................................ 1.6 1.8 1.9 2.0 2.2 2.3 2.5
Nuclear Waste Disposal Fund
Balance, start of year 6.2 7.3 8.3 9.3 10.0 11.1 12.4
Income:
Governmental receipts............................................. .......... .......... .......... .......... .......... .......... ..........
Proprietary receipts.............................................. 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Receipts from Federal funds:
Interest........................................................ 0.7 0.5 0.6 0.6 0.7 0.8 0.9
Other........................................................... .......... .......... .......... .......... .......... .......... ..........
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 1.3 1.1 1.2 1.3 1.3 1.4 1.5
Outgo:
To the public..................................................... 0.2 0.2 0.3 0.6 0.2 0.2 0.2
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 0.2 0.2 0.3 0.6 0.2 0.2 0.2
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. 0.4 0.5 0.4 0.0 0.4 0.4 0.4
Interest........................................................ 0.7 0.5 0.6 0.6 0.7 0.8 0.9
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 1.2 1.0 0.9 0.7 1.2 1.2 1.3
Adjustments:
Transfers/lapses (net).......................................... --* .......... * .......... .......... .......... ..........
Other adjustments............................................... --* * --* .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................. 1.2 1.0 1.0 0.7 1.2 1.2 1.3
===================================================================================
Balance, end of year................................................ 7.3 8.3 9.3 10.0 11.1 12.4 13.7
Overseas Private Investment Corporation
Balance, start of year 2.5 2.8 3.0 3.3 3.6 3.8 4.1
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 0.2 0.2
[[Page 350]]
Other........................................................... * * * * * * *
Receipts from Trust funds......................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, income.............................................. 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Outgo:
To the public..................................................... * 0.1 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 0.1
Change in fund balance:
Surplus or deficit (-):
Excluding interest.............................................. 0.1 0.1 0.1 0.0 0.0 0.0 0.0
Interest........................................................ 0.2 0.2 0.2 0.2 0.2 0.2 0.2
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 0.3 0.3 0.3 0.3 0.2 0.3 0.3
Adjustments:
Transfers/lapses (net).......................................... 0.1 -0.1 --* .......... .......... .......... ..........
Other adjustments............................................... --* .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................. 0.3 0.2 0.2 0.3 0.2 0.3 0.3
===================================================================================
Balance, end of year................................................ 2.8 3.0 3.3 3.6 3.8 4.1 4.4
Uranium Enrichment Decontamination and Decommissioning Fund
Balance, start of year.............................................. 0.9 1.3 1.7 2.2 2.6 3.2 3.8
Income:
Governmental receipts............................................. 0.1 0.2 0.2 0.2 0.2 0.3 0.3
Proprietary receipts.............................................. .......... .......... .......... .......... .......... .......... ..........
Receipts from Federal funds:
Interest........................................................ 0.1 0.1 0.1 0.1 0.1 0.2 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 0.8 0.9 0.9
Outgo:
To the public..................................................... 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Payments to Other funds........................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal, outgo............................................... 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Change in fund balance:.............................................
Surplus or deficit (-):
Excluding interest.............................................. 0.3 0.3 0.4 0.4 0.4 0.5 0.5
Interest........................................................ 0.1 0.1 0.1 0.1 0.1 0.2 0.2
-----------------------------------------------------------------------------------
Subtotal, surplus or deficit (-).............................. 0.4 0.4 0.5 0.5 0.6 0.6 0.7
Adjustments:
Transfers/lapses (net).......................................... * .......... .......... .......... .......... .......... ..........
Other adjustments............................................... .......... .......... .......... .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total, change in fund balance................................... 0.4 0.4 0.5 0.5 0.6 0.6 0.7
===================================================================================
Balance, end of year................................................ 1.3 1.7 2.2 2.6 3.2 3.8 4.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million.
Note: Balances shown include committed and uncommitted cash balances.