[Analytical Perspectives]
[Federal Receipts and Collections]
[4. User Fees and Other Collections]
[From the U.S. Government Publishing Office, www.gpo.gov]
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4. USER FEES AND OTHER COLLECTIONS
The Federal Government sometimes charges user fees to those who
directly benefit from a particular activity. The term ``user fee'' is
defined as fees, charged, and assessments levied on a class directly
benefitting from, or subject to regulation by, a government program or
activity, to be utilized solely to support the program or activity. In
addition, the payers of the fee must be limited to those benefitting
from, or subject to regulation by, the program or activity, and may not
include the general public or a broad segment of the public. The user
fee must be authorized for use only to fund the specified programs or
activities for which they are charged, including directly associated
agency functions, not for unrelated programs or activities and not for
the broad purposes of the Government or an agency.
User fees include: collections from non-Federal sources for goods and
services provided (such as the sale of postage stamps and electricity);
voluntary payments to social insurance programs (such as Medicare Part B
premiums); miscellaneous customs fees (such as United States Customs
Service merchandise processing fees); and certain specific taxes and
duties (such as collections for agricultural quarantine inspection).
The term ``user fee'' is not a separate budget category for
collections. Depending primarily on whether the user charge is based on
the Government's sovereign power or business-type activity, it may be
classified as a governmental receipt, or as an offsetting collection.
User fees classified as governmental receipts are included along with
the taxes and other governmental receipts discussed in the previous
chapter. Those fees classified as offsetting collections are subtracted
from gross outlays. The purpose of this treatment is to produce budget
totals for receipts, outlays, and budget authority in terms of the
amount of resources allocated governmentally, through collective
political choice rather than through the market.
Offsetting collections are classified into two major categories:
offsetting receipts, which are deposited in receipt accounts; and
offsetting collections credited to appropriations (expenditure)
accounts, which are deposited directly in these accounts and usually can
be spent without further action by the Congress. Both categories include
collections from other accounts within the Government as well as the
public. While most offsetting receipts and collections result from
business-like activity or are collected from other Government accounts,
some result from the Government's sovereign or governmental powers and
would be classified as governmental receipts but are required by law to
be treated as offsetting. Chapter 23, ``Budget System and Concepts,''
explains the budgetary treatment of these collections more fully.
Not all offsetting collections are user fees. User fees do not include
collections from other Federal accounts; collections deposited in
general fund receipt accounts; collections associated with credit
programs; realizations upon loans and investments; interest, dividends,
and other earnings; involuntary payments to social insurance programs;
excise taxes; customs duties; fines, penalties, and forfeitures; cost
sharing contributions; proceeds from asset sales (property, plant, and
equipment); Outer Continental Shelf receipts; spectrum auction proceeds;
and Federal Reserve earnings.
As shown in Table 4-1, total user fee collections (including those
proposed in this budget) are estimated to be $146.9 billion in 2000,
rising to $170.1 billion in 2004. User fee collections by the United
States Postal Service, Medicare premiums, service charges on foreign
military sales, the Tennessee Valley Authority and other power marketing
agencies, and fees collected by the Department of Defense at
commissaries, for housing, and for other miscellaneous activities are
estimated to be nearly 80 percent of all existing user fee collections.
User fee collections are used to offset outlays in both the
discretionary and mandatory categories of the budget. User fee
collections are estimated to provide $17.4 billion to offset
discretionary spending. These offsets include both offsetting
collections credited directly to appropriations accounts and collections
credited to offsetting receipt accounts. The Administration is proposing
to augment offsetting collections available for discretionary spending
by making collections from Federal Aviation Administration (FAA) cost-
based user fees and the new harbor services fee, approximately $2.1
billion, available for discretionary spending.
Mandatory user fee collections are estimated to provide $127.4 billion
in 2000. Of this amount, approximately $126.5 billion offsets mandatory
outlays, while the remaining collections, from the Harbor Services fee,
would be made available to offset discretionary spending.
A small portion of governmental receipts are considered to be user fee
collections. In 2000, an estimated $2.1 billion in governmental receipts
are user fees. Of these fees, about 72 percent are part of the proposal
that would make FAA's cost-based user fees available to offset
discretionary spending. The remaining fees in this category are made
available to finance the regulatory program or activity for which they
are charged through the appropriations process.
Table 4-3 provides more detail for offsetting receipts collected from
the public and includes offsetting receipts collected from other
accounts within the Government.
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Table 4-1. TOTAL USER FEE COLLECTIONS
(In millions of dollars)
----------------------------------------------------------------------------------------------------------------
Estimates
1998 ------------------------------------------------------------ Total 1999-
actual 1999 2000 2001 2002 2003 2004 2004
----------------------------------------------------------------------------------------------------------------
Governmental receipts:
Proposed FAA user fees to
replace excise taxes \1\... ........ ........ 1,496 1,579 1,455 1,341 1,214 7,085
Harbor maintenance and
inland waterway fees \2\... 622 588 ........ ........ ........ ........ ........ 588
Agricultural quarantine
inspection fees............ 152 160 219 232 239 246 253 1,349
FEMA, flood map
modernization.............. ........ ........ 78 80 83 87 91 419
Other governmental receipt
user fees.................. 223 244 295 298 303 304 308 1,508
---------------------------------------------------------------------------------
Total, governmental
receipts................. 997 992 2,088 2,189 2,080 1,978 1,866 10,201
Offsetting collections by
function and category:
Discretionary
National Defense, Housing
and commissary fees paid by
military personnel and
other fees................. 7,594 7,313 7,253 7,255 7,239 7,239 7,239 43,538
Energy, Nuclear Regulatory
Commission, Federal Energy
Regulatory Commission and
other fees................. 814 858 870 870 870 870 870 5,208
Science, Reimbursement for
the use of NASA services... 682 863 838 838 838 838 838 5,053
Commerce and Housing
Credit, Patent and
Trademark Office, Federal
Communications Commission,
Securities and Exchange
Commission and other fees.. 1,754 1,703 1,931 1,914 1,906 1,893 1,829 11,176
Transportation, Panamal
Canal and other fees....... 884 896 434 558 558 558 558 3,562
Health, Food and Drug
Administration, Health Care
Financing Administration,
food safety and other fees. 404 400 1,202 1,202 1,202 1,202 1,202 6,410
Veterans, medical care and
other fees................. 700 641 765 929 1,146 1,153 1,179 5,813
Justice, Customs,
bankruptcy and other fees.. 259 283 771 771 771 771 771 4,138
General Government, Bureau
of Engraving and Printing,
U.S. Mint and IRS fees..... 1,573 1,821 1,848 1,848 1,848 1,848 1,848 11,061
All other functions,
discretionary.............. 753 944 1,444 1,448 1,449 1,451 1,453 8,189
---------------------------------------------------------------------------------
Total discretionary
offsetting collections... 15,417 15,722 17,356 17,633 17,827 17,823 17,787 104,148
Mandatory
International, Service
charges on foreign military
sales...................... 14,135 13,280 12,690 12,140 12,050 9,720 8,610 68,490
Energy, Tennessee Valley
Authority and other power
marketing fees............. 10,046 8,951 9,136 9,332 9,325 9,531 9,795 56,070
Natural resources and the
environment:
Harbor Services fees \2\. ........ 966 963 960 996 1,014 4,899
Recreation and admission
fees and other fees...... 649 629 651 661 697 706 724 4,068
---------------------------------------------------------------------------------
Subtotal, Natural
resources and
environmental fees..... 649 629 1,617 1,624 1,657 1,702 1,738 8,967
Agriculture, Crop insurance
premiums, inspection,
grading and other fees..... 801 1,080 1,125 1,166 1,200 1,240 1,285 7,096
Commerce and Housing
Credit:....................
United States Postal
Service.................. 59,757 62,639 65,036 67,900 71,000 74,000 77,000 417,575
Deposit Insurance and
other fees............... 900 698 834 944 1,075 1,353 1,690 6,594
---------------------------------------------------------------------------------
Subtotal, Commerce and
housing credit......... 60,657 63,337 65,870 68,844 72,075 75,353 78,713 424,192
Community development, Flood
insurance and other fees... 1,355 1,461 1,560 1,666 1,773 1,887 2,018 10,365
Health, Federal Employee
Health Benefits and other
fees....................... 4,492 4,845 5,489 6,011 6,519 7,066 7,585 37,515
Medicare premiums........... 20,747 21,299 22,834 25,279 27,615 30,647 32,939 160,613
Income Maintenance, Pension
Benefit Guaranty
Corporation, Federal
employees life insurance
premiums................... 1,930 1,965 2,163 2,331 2,461 2,601 2,733 14,254
Veterans, Insurance
premiums and other fees.... 1,739 1,706 1,683 1,643 1,603 1,566 1,525 9,726
Justice, Immigration,
Customs and other justice
fees....................... 2,430 2,542 2,794 2,837 2,895 2,976 3,039 17,083
All other functions,
mandatory.................. 406 455 1,424 1,428 1,414 1,452 1,496 7,669
---------------------------------------------------------------------------------
Total mandatory offsetting
collections.............. 119,387 121,550 127,419 133,338 139,627 144,745 150,439 817,118
=================================================================================
Total offsetting collections.. 134,804 137,272 144,775 150,971 157,454 162,568 168,226 921,266
Total, User fees.............. 135,801 138,264 146,863 153,160 159,534 164,546 170,092 932,459
----------------------------------------------------------------------------------------------------------------
\1\ Gross revenue increase from proposed fees. Current aviation excise taxes, which are not user fees, will
gradually be converted to cost-based user fees. While considered governmental receipts, the following proceeds
from the fees, net of income tax offsets, would be made available to offset discretionary spending:
1998 1999 2000 2001 2002 2003 2004 1999-04
FAA collections available for spending.. ....... ....... 1,122 1,184 1,091 1,007 910 5,314
\2\ The Budget proposes to convert proceeds to offsetting collections. While the fee collection will be
mandatory, proceeds from the fee will be made available to offset discretionary spending.
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Why User Fees?
... The term ``user fee'' refers to Government charges to those who use a Government good or service or are subject to Government regulation.
For example:
......... --Park entrance fees charged to visitors to national parks
......... --Meat, poultry, and egg inspection fees
......... --Tennessee Valley Authority proceeds from power sales
......... --Proceeds from the lease of Department of Energy buildings and facilities
......... --Flood insurance premiums
......... --Sales of commemorative coins
... User fees are dedicated to funding part or all of the cost of providing the service or regulation by crediting them to a program account
instead of to the general fund of the Treasury.
... User fees are designated as offsetting collections or receipts so that they offset the spending they are designated to fund.
... User fees are different from general revenue, because they are not collected from the general public or broad segments of the public (like
income taxes) and they are not used for the general purposes of government (like national defense).
... Users are more willing to support and pay fees when they are dedicated to maintaining or improving the quality of the programs that affect
them directly.
... Government program managers may be more diligent about collecting and spending fees when funding for their programs is dependent on fees,
instead of guaranteed appropriations of general taxpayer money.
... Administration policy is to shift to user fee funding wherever appropriate. However, essential government services will continue to be
supported by general fund appropriations from the Treasury as necessary.
... The Administration's user fee proposals generally require authorizing legislation to authorize the fees first and appropriations action
before the fees can actually be collected and spent. This is done to preserve the traditional roles of the authorizing and appropriations
committees in Congress and to conform to the ``scoring'' conventions of the Budget Enforcement Act.
------------------------------------------------------------------------
The Budget contains a variety of new and expanded user fee and other
collections proposals that would yield $4.2 billion in 2000 and $25.8
billion from 2000 through 2004. These proposals establish, increase, or
extend fees in order to recover more of the costs of providing
government services. The proposals, would make the program funding
levels at least partly dependent on the amount of fees actually
collected. Therefore, in many cases, resources available for the program
could be greater or less than estimated. Table 4-2 splits the proposals
between discretionary and mandatory categories for the appropriate
scoring under the Budget Enforcement Act of 1997 (BEA). It includes user
fees classified as offsetting collections and governmental receipts.
Table 4-2. PROPOSED USER FEE COLLECTIONS
(In millions of dollars)
----------------------------------------------------------------------------------------------------------------
Discretionary fee proposals 2000 2001 2002 2003 2004 2000-2004
----------------------------------------------------------------------------------------------------------------
User Fee Proposals To Offset Discretionary Spending
Offsetting collections deposited in appropriations
accounts:
Department of Agriculture:
Food Safety Inspection Service fees................ 504 504 504 504 504 2,520
Tobacco program support fees........................ 60 60 60 60 60 300
Animal and Plant Health Inspection Service fees.... 9 9 9 9 9 45
Grain Inspection, Packers, and Stockyards fees..... 19 19 19 19 19 95
Forest Service timber sales preparation fees....... 20 20 20 20 20 100
Department of Commerce:
National Oceanic and Atmospheric Administration
Navigational assistance fees....................... 14 14 14 14 14 70
Fisheries management fees.......................... 20 20 20 20 20 100
Patent and Trademark Office, indirect health and
life insurance cost fee............................ 20 20 20 20 20 100
International Trade Administration, trade promotion
service fees....................................... 3 3 3 3 3 15
Department of Health and Human Services:
Food and Drug Administration increased user fees... 17 17 17 17 17 85
Health Care Financing Administration fee proposals:
Physician, provider, and supplier enrollment
registration fees................................ 20 20 20 20 20 100
Managed care organization application and renewal
fees............................................. 37 37 37 37 37 185
Initial provider certification fees.............. 10 10 10 10 10 50
Provider recertification fees.................... 55 55 55 55 55 275
Paper claims submission fees..................... 55 110 110 110 110 495
Duplicate and unprocessable claims fees.......... 18 36 36 36 36 162
Increase Medicare+Choice fees.................... 50 50 50 50 50 250
Department of Justice:
Increase Bankruptcy filing fee..................... 28 28 28 28 28 140
Department of Labor:
Alien Labor Certification fees..................... 65 65 65 65 65 325
Employment Tax Credit fees......................... 20 20 20 20 20 100
Department of Transportation:
Coast Guard, navigational services fees............ 41 165 165 165 165 701
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Hazardous Material Transportation safety fee....... 18 18 18 18 18 90
Surface Transportation Board fees.................. 14 14 14 14 14 70
Department of the Treasury:
Customs, air and sea passenger fee................. 312 312 312 312 312 1,560
Customs, access fee................................. 163 163 163 163 163 815
Army Corps of Engineers:
Regulatory program fees............................ 7 7 7 7 7 35
National Transportation Safety Board:
Commercial accident investigation fees............. 10 10 10 10 10 50
-------------------------------------------------------
Subotal, Offsetting collections deposited in
appropriations accounts.......................... 1,608 1,806 1,806 1,806 1,806 8,833
Offsetting collections deposited in receipt accounts:
Department of Transportation:
Federal Railroad Administration, rail safety
inspection fees.................................... 88 88 88 88 88 440
Department of Housing and Urban Development:
Government Sponsored Enterprise (GSE) oversight
fees............................................... 10 10 10 10 10 50
Environmental Protection Agency:
Pre-Manufacture Notice (PMN) fee................... 4 8 8 8 8 36
Pesticide Registration Fees........................ 16 16 16 16 16 80
Federal Communications Commission:
Analog spectrum lease fee.......................... 200 200 200 200 200 1,000
Nuclear Regulatory Commission:
Extend NRC user fees............................... 300 300 300 300 300 1,500
Social Security Administration:
Social Security Administration, claimant
representative fees................................ 19 19 19 19 19 95
-------------------------------------------------------
Subotal, offsetting collections deposited in
receipt accounts................................. 637 641 641 641 641 3,201
Mandatory collections made available to offset
discretionary spending:
Department of Transportation:
Federal Aviation Administration, proposed user fees
\1\................................................ 1,496 1,579 1,455 1,341 1,214 7,085
Army Corps of Engineers:
Harbor Services Fees (Replacing Harbor Maintenance
Tax \2\............................................ 337 296 245 231 248 1,357
-------------------------------------------------------
Subtotal, mandatory collections available to
offset discretionary............................. 1,833 1,875 1,700 1,572 1,462 8,442
=======================================================
Total, user fees to offset discretionary spending....... 4,078 4,322 4,147 4,019 3,909 20,476
User Fee Proposals to Offset Mandatory Spending
Offsetting collections deposited in appropriations
accounts:
Federal Deposit Insurance Corporation:
FDIC State Bank exam fees.......................... 84 88 91 95 100 458
Offsetting collections deposited in receipt accounts:
Department of Health and Human Services:
Medicare Premiums................................... -135 275 482 560 686 1,868
Department of Agriculture:
Forest Service, increased recreation and entrance
fees............................................... ....... ....... 24 34 44 102
Department of the Interior:
Increased recreation and entrance fees............. ....... 68 70 72 210
Filming and special use permits..................... 3 3 4 4 5 19
Hardrock mining production fees.................... ....... 8 26 26 26 86
Department of Justice:
Increase Immigration user fee....................... 121 128 135 142 150 676
Department of the Treasury:
Extend Customs conveyance and passenger fees....... ....... ....... ....... ....... 497 497
Extend Customs merchandise processing fees......... ....... ....... ....... ....... 1,025 1,025
-------------------------------------------------------
Subotal, offsetting collections deposited in
receipt accounts................................. -11 414 739 836 2,505 4,483
=======================================================
Total, user fee proposals to offset mandatory spending.. 73 502 830 931 2,605 4,941
Collections deposited to governmental receipt accounts:
Federal Emergency Management Agency:
Mortgage transaction fees for flood plain
certification \3\.................................. 75 76 77 78 80 386
=======================================================
Total, user fee proposals 4,226 4,900 5,054 5,028 6,594 25,803
----------------------------------------------------------------------------------------------------------------
\1\ Gross revenue increase from proposed fees. Current aviation excise taxes, which are not user fees, will
gradually be converted to cost-based user fees. While considered governmental receipts, the following proceeds
from the fees, net of income tax offsets, would be made available to offset discretionary spending:
1998 1999 2000 2001 2002 2003 2004 1999-04
FAA collections available for spending.. ....... ....... 1,122 1,184 1,091 1,007 910 5,314
\2\ Collections shown for the Harbor Services user fee represent the increase in receipts over current law
collections remaining after collections from exporters were halted.
\3\ Represents the gross revenue. Approximately $58 million would be available to spend in FY 2000.
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Discretionary offsetting collections:
The following proposed fees are classified as discretionary because
they would result from provisions in appropriations acts. In most cases,
the Administration will propose authorizing legislation to establish,
increase, or extend fees. However, the legislation will make both the
fee collection and spending contingent on appropriations action, so that
both can be scored as discretionary. The budget includes the
appropriations language needed to trigger the fee collection. When the
user fees are enacted, they will finance part or all of the cost of the
affected programs in lieu of some amount of the general fund
appropriation for the program. While the appropriations language
proposed under current law includes the full amount of funding needed
for the program, the trigger language would reduce that amount upon
enactment of the fee authorization. (If general fund appropriations were
not reduced, the total resources provided would exceed the funding
requirements for the programs.)
Collections from the following proposals are to be deposited directly
in appropriations accounts:
Department of Agriculture
Food Safety and Inspection Service meat, poultry and egg inspection
fee.--The 2000 Budget proposes a new user fee for the Department of
Agriculture's Food Safety and Inspection Service (FSIS). Under the
proposed fee, the meat, poultry and egg industries would be required to
reimburse the Federal government for the cost of the salaries and
benefits and other direct costs for all in-plant inspection. The
proposal would transfer the cost of Federal inspection services to the
industries that directly benefit, and would ensure that sufficient
resources are available to provide the level of in-plant inspection
necessary to meet the demands of industry. The cost of the user fee
would amount to less than one cent per pound of meat inspected.
Tobacco program support fees.--The 2000 Budget proposes to extend and
increase the marketing assessment on price supported tobacco and on
similar imported tobacco. The current assessment equal to 1 percent of
the support price expires with the 1998 crop year. The assessment on
domestic tobacco is equally divided between producers and purchasers,
while importers pay the entire assessment on imported tobacco. The
proposal would extend the assessment to 2000 and thereafter at a rate of
about two percent of the support price. The current rate of 0.5 percent
of the support price paid by producers would be continued, while
purchasers and importers would be assessed at an increased rate. The
assessment would raise revenues equivalent to the estimated costs
incurred by the Agriculture Department's for activities that support the
production and marketing of tobacco.
Animal and Plant Health Inspection Service (APHIS).--The budget
proposes to establish fees to cover the cost of providing animal welfare
inspections to recipients of APHIS services such as animal research
centers, humane societies, and kennels. Fees would also be established
to cover the cost of issuing biotechnology certificates to firms that
manufacture products derived through biotechnological innovation.
Grain Inspection, Packers and Stockyards Administration (GIPSA)
licensing fees.--The budget proposes to charge the grain industry
GIPSA's costs to review and maintain standards (such as grain quality
and classification) used by the grain industry. In addition, an annual
licensing fee is proposed to fund GIPSA activities that ensure the
integrity of the livestock, meat and poultry market and marketplace,
such as fostering open competition, and protecting consumers and
businesses from unfair practices.
Forest Service, timber sales preparation fee pilot.--The
Administration proposes to require timber companies to reimburse the
Forest Service for the costs of timber sales preparation on National
Forests. Timber purchasers would bear the direct costs for timber sales
preparation (direct costs do not include legal and certain environmental
planning costs) for commodity-oriented timber sales.
Department of Commerce
National Oceanic and Atmospheric Administration (NOAA), navigational
assistance fees.--The Administration proposes to levy a fee on U.S. and
foreign commercial cargo carriers to recover the cost of navigational
assistance services, such as nautical charting, provided by NOAA.
Fisheries management fees.--The budget proposes to levy a fee to
recover a portion of the costs of providing fisheries management and
enforcement services.
Patent and Trademark Office indirect cost fees.--The Administration
proposes to increase Patent and Trademark Office fees to cover the costs
associated with current PTO employees' post-retirement health and life
insurance. Under current law, the FY 2000 program level is expected to
impose $20 million in future costs on the Federal Treasury. Collections
from the fee increase would be transferred to the Office of Personnel
Management.
Trade promotion services fees.--The Administration proposes to charge
U.S. businesses for counseling and other promotional services provided
by the International Trade Administration.
Department of Health and Human Services
Food and Drug Administration (FDA) fees.--The budget seeks $17 million
in new fees to finance FDA activities for the review of medical device
applications, food additive petitions, and pre-market notifications for
food contact substances. These fees will be used to augment current
funding for these activities.
Health Care Financing Administration (HCFA).--These proposals would
establish fees for a variety of activities associated with the Medicare
Program, including:
Physician, provider, and supplier enrollment registration fees.--The
Administration proposes to charge phy
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sicians, providers, and suppliers an initial enrollment fee and a
renewal fee in order to participate in the Medicare program. Physicians
would be required to re-enroll every 5 years. Durable medical equipment
suppliers, hospitals, skilled nursing facilities, home health agencies,
and all other providers would be required to re-enroll every 3 years.
Proceeds from the fee would be used to offset Contractor funding related
to enrollment costs.
Managed care organization application and renewal fees.--The
Administration proposes to charge managed care organizations a fee to
cover the cost of reviewing initial applications and renewing annual
contracts with Medicare. Proceeds from this fee would be used to offset
Federal Administration funding related to managed care organization
applications and renewals.
Initial provider certification fee.--The Administration proposes to
levy a fee on providers (e.g., home health agencies and skilled nursing
facilities) who wish to enter the Medicare program. The fee would vary
by type of provider. Proceeds from this fee would be used to offset
survey and certification funding.
Provider recertification fee.--The Administration proposes to levy a
fee on providers who are recertified for the Medicare program. By
statute, skilled nursing facilities must be surveyed every year, home
health agencies every three years, and other providers about once every
ten years. The fee would be charged every year to spread the costs of
the certification program over time. Proceeds from this fee would be
used to offset survey and certification funding.
Paper claims submission fee.--The Administration proposes to charge
providers $1.00 for every paper claim submitted for payment because of
the additional cost of processing paper rather than electronic claims.
Rural providers and very small providers who may not be able to purchase
the necessary hardware to comply with electronic claims transmission
would be exempt from the fee. Proceeds from the fee would be used to
offset Contractor funding related to claims processing.
Duplicate and unprocessable claims fees.--The Administration proposes
to charge Medicare providers $1.00 for each duplicate and unprocessable
claim submitted for payment to the Health Care Financing Administration.
Proceeds from the fee would be used to offset Contractor funding related
to claims processing.
Increase in the Medicare+Choice fee.--The Administration proposes to
increase the fee on Medicare+Choice plans by $50 million in FY 2000. The
fee was authorized at $100 million in the Balanced Budget Act of 1997.
This increase would be used to maintain the current level of effort in
providing information to Medicare beneficiaries regarding the
Medicare+Choice program.
Department of Justice
Bankruptcy filing fee.--The Administration proposes to increase the
filing fee for cases filed under chapters 7 (liquidation) and 13 (wage
earner repayment) of the Bankruptcy Code by $25, from $130 to $155, with
the increased collections to be used by the U.S. Trustee Program. This
would allow the program to continue to be funded entirely through
bankruptcy fees. The U.S. trustees supervise the administration of
bankruptcy cases and private trustees in the Federal Bankruptcy Courts.
The program currently receives $30 of the $130 filing fee.
Department of Labor
Alien labor certification fee.--The proposal would establish a new
fee, charged to businesses, for processing of alien labor certification
applications by the Department of Labor. The fee proceeds would offset
the costs of administering and enforcing the alien labor program, and
provide reemployment and training assistance to U.S. workers who have
been dislocated from their jobs.
Employment tax credit fees.--The proposal would establish a new fee,
charged to businesses, for processing requests for certifications under
the Work Opportunity Tax Credit and the Welfare-to-Work Tax Credit.
These fees would be used to cover the State administrative costs of
certifying the eligibility of new hires under these tax credits.
Department of Transportation
Coast Guard, navigational assistance fee.--The Administration proposes
to levy a fee on U.S. and foreign commercial cargo carriers for the use
of Coast Guard navigational assistance services. Navigational assistance
services include the placement and maintenance of buoys and other short-
range aids-to-navigation, radio navigation, and vessel traffic services.
Fishing and recreational vessels would be exempt.
Federal Railroad Administration, rail safety inspection fees.--This
proposed would offset the costs of the Federal Railroad Administration's
safety inspection program. An estimated $88 million in fees would be
collected from railroad carriers based upon a calculation of their rail
usage.
Hazardous Materials Transportation Safety fees.--Beginning late in
2000, hazardous materials transportation safety activities previously
financed by general fund appropriations to the Research and Special
Programs Administration are proposed to be financed instead by an
increase in hazardous materials registration fees. Authorizing
legislation will be proposed to increase the fees paid by shippers and
carriers of hazardous materials by an estimated $18 million in 2000 to
fund these safety activities.
Surface Transportation Board fees.--The Administration proposes to
create a fee mechanism to completely offset the expenses of the Surface
Transportation Board (STB), the successor to the Interstate Commerce
Commission (ICC). The fees would be collected from those who benefit
from the continuation of the ICC functions transferred to the STB, i.e.
railroads and shippers.
Department of the Treasury
Customs, air/sea passenger fee.--The Administration proposes to
increase an existing fee paid by travelers arriving by commercial
aircraft and commercial vessels
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from a place outside of the United States, and to remove certain
exemptions from this fee. Proceeds of the fee increase would partially
offset Customs costs associated with air and sea passenger processing.
Subsequent to the budget, authorization legislation will be transmitted
to allow the Secretary to increase the fee paid by air and sea
passengers and to remove existing exemptions from this fee.
Customs, automation enhancement fee.--The Administration proposes to
establish a fee for the use of Customs automated systems. The fee would
be charged to users of any Customs automated system based on the amount
of user data input. Proceeds of the fee would offset the costs of
modernizing Customs automated commercial operations and an international
trade data system, and would be available for obligation after FY 2000.
Subsequent to the budget, authorization legislation will be transmitted
to allow the Secretary to establish a fee for the use of Customs
automated systems.
Army Corps of Engineers
Regulatory program fees.--The Army Corps of Engineers has not changed
the fee structure of its regulatory program since 1977. The Budget
proposes to pursue reasonable changes that would reduce the fees paid
from many applicants and increase recovery from commercial applicants.
National Transportation Safety Board
Commercial accident investigation fees.--To offset a portion of the
NTSB's growing cost of commercial accident investigations, a new
aviation accident recovery and investigation fee is proposed. This fee,
which would be paid by commercial air, motor, ocean, and rail carriers
based on a proxy for risk, would collect an estimated $10 million in
2000.
Collections from the following discretionary proposals be deposited in
offsetting receipt accounts:
Department of Housing and Urban Development
GSE Oversight Assessment Fee.--This proposal would assess Fannie Mae
and Freddie Mac for the cost incurred by HUD offices (other than the
Office of Federal Housing Enterprise Oversight) from regulating the
activities of these government-sponsored enterprises. The fee would
offset the actual costs incurred by HUD.
Environmental Protection Agency
Pesticide registration fees.--The budget proposes to reinstate
pesticide registration fees that are statutorily suspended through 2001.
These fees would be used to offset the cost of reviewing applications
for pesticide registrations, amendments to registrations, and
experimental use permits.
Chemical pre-manufacturing notification (PMN) fees.--The
Administration proposes to eliminate the statutory cap on PMN fees and
to increase fees charged to chemical producers to recover the cost of
reviewing notifications of new chemicals prior to production.
Federal Communications Commission
Analog spectrum lease fee.--The Administration proposes to set a lease
fee on commercial television broadcasters' use of spectrum for analog
broadcasting. The lease fee would raise $200 million annually to fund
programs in the Department of Justice, the Department of the Treasury,
and the Department of the Interior to expand and upgrade public safety
wireless communications.
Nuclear Regulatory Commission
Nuclear Regulatory Commission.--Under current law, the NRC must
recover 100 percent of its costs from licensing, inspection, and annual
fees charged to its applicants and licensees through 1999. Unless the
law is extended, the fee covering requirement will revert to 33 percent
of NRC's cost of operations. The Administration proposes to extend fees
at approximately 100 percent of the NRC's cost of operations through
2004.
Social Security Administration
Claimant representation fee.--The Budget proposes to impose a fee on
persons who represent Supplemental Security Income claimants in
administrative or judicial proceedings. This fee is designed to recover
the cost of processing attorney fee agreements and determining the
allowable charge under the fee petition process. This assessment would
be imposed only if the claimant is awarded past due benefits and a fee
for representation is approved by the Social Security Administration.
Mandatory Receipts used to offset discretionary spending
In some cases, the Administration is proposing to authorize
collections that are not subject to action by the appropriators, while
making those collections available to offset discretionary spending. The
budget proposes authorizing legislation that will increase governmental
or mandatory offsetting receipts. The savings from these proposals would
be applied to discretionary spending.
Department of Transportation
Federal Aviation Administration (FAA), cost based user fees.--The
Budget proposes to reduce the existing aviation excise taxes over time
as more efficient, cost-based user fees for air traffic services are
phased in beginning in 2000. Under this proposal, the collections each
year from the new cost-based user fees and the existing excise taxes
combined would be equal to the total budget resources requested for the
FAA in each succeeding year. In FY 2000, this proposal would result in
the collection of $1.5 billion in additional aviation user charges.
These charges will be deposited into a governmental receipt account and
be made available for discretionary spending.
[[Page 100]]
Army Corps of Engineers
Harbor services fees.--The Administration proposes to replace
collection of the ad valorem Harbor Maintenance Tax with a cost-based
user fee, the Harbor Services User Fee. The user fee will finance
construction and operation and maintenance of harbor activities
performed by the Army Corps of Engineers, the costs of operating and
maintaining the Saint Lawrence Seaway, and the costs of administering
the fee. Through appropriations acts, the fee will raise an average of
$980 million annually through FY 2004, which is less than would have
been raised by the Harbor Maintenance Tax before the Supreme Court
decision that the ad valorem tax on exports was unconstitutional. While
the collections from the harbor services fee would be mandatory,
collections would be available to offset discretionary spending.
Mandatory Fee Proposals
The following new and increased fees are classified as mandatory
because they are proposed to be included in authorizing legislation and
neither the collection or spending of the fee would be contingent upon
appropriations action.
Collections from the following proposal are to be deposited directly
an appropriations accounts:
Federal Deposit Insurance Corporation (FDIC)
State bank examination fee.--The Administration proposes to require
the FDIC and the Federal Reserve to assess fees for examinations of bank
holding companies and state-chartered FDIC-insured banks. The costs of
such examinations are currently funded from deposit insurance premiums
and Federal Reserve earnings from monetary policy activities. The FDIC
fee proceeds would be used to finance the examination operation. The
Federal Reserve collections do not meet the technical definition of a
user fee, but will be reflected in higher governmental receipts, and are
discussed in the preceding chapter on governmental receipts.
Collections from the following proposals are to be deposited in
receipt accounts:
Department of Health and Human Services
Medicare premiums for retirees under the age of 65 and displaced
workers.--The Administration proposes to charge premiums based on an
actuarially fair rate to people between the ages of 62 and 65 and
displaced workers between 55 and 61 who elect to participate in the
Medicare buy-in premium based program. This increase in premium
collectons is partially offset by the reduction in premium collections
due to the Medicare savings proposals.
Department of the Interior and Agriculture
Increased recreation and entrance fee.--The Administration proposes to
permanently extend the current pilot program which expires in 2001. The
National Park Service, Fish and Wildlife Service, the Bureau of Land
Management, and the Forest Service would be allowed to collect increased
recreation and entrance fees and use the receipts without further
appropriation for facility improvements and new services. The Forest
Service would also be authorized to use collections from existing fees
for similar improvements and services.
Hardrock mining production fees.--The Administration proposes to
charge mining companies a 5% fee on net smelter production from hard
rock mining on Federal Lands.
Filming and special use permits fee.--The Administration proposes to
authorize the National Park Service and other land management agencies,
including the Department of Agriculture's Forest Service to increase
fees for permits to use land and facilities for the making of motion
pictures, television productions, still photos, sound tracks and other
similar purposes. Collections would be available without further
appropriations to cover related Government costs (as currently
authorized) and provide a fair return to the Government.
Department of Justice
Immigration user fee.--The Administration proposes to increase the fee
for inspection of passengers at air and seaports by the Immigration and
Naturalization Service (INS) by $2.00 to $8.00. The immigration user fee
recovers the costs of INS' air and seaport inspection of passengers
entering the United States and other activities authorized to be funded
by the fee. The current fee of $6.00 per passenger is insufficient to
maintain fee operations. In addition, the Administration is proposing to
charge $3.00 for the inspection of commercial vessel passengers whose
journey originated in Mexico, Canada, the United States or its
territories and possession or any adjacent island. This inspection fee
would be expanded to cover cruise ship passengers who, in the past, have
been exempt from any inspection fee.
Department of the Treasury
Extend Customs conveyance and passenger and merchandise processing
fees.--Under existing legislation, the Customs Conveyance/Passenger Fee
and the Merchandise Processing Fee will expire on September 30, 2003.
The Administration proposes to extend both of these fees starting on
October 1, 2003.
The following proposal is classified as mandatory because it will be
included in authorizing legislation, and their collection will not be
contingent on appropriations language. Collections are recorded as
governmental receipts, not as an offset to outlays.
Federal Emergency Management Agency (FEMA)
Mortgage transaction fees for flood hazard determination.--The
Administration proposes to establish a $15 on all fee mortgage
originations and refinancings to support a multi-year program to update
and modernize FEMA's inventory of flood plain maps (100,000 maps).
Accurate and easy to use flood hazard maps are essential in determining
if a property is located in a flood
[[Page 101]]
plain. The maps allow lenders to meet their statutory obligation of
requiring the risk-prone homes they insure to carry flood insurance, and
allow homeowners to assess their risk of flood damage. These maps are
the basis for developing appropriate risk-based flood insurance premium
charges, and improved maps will result in a more actuarially sound
insurance program.
OFFSETTING RECEIPTS
Table 4-3 itemizes all offsetting collections deposited in receipt
accounts. These include payments from one part of the Government to
another, called intra-governmental transactions, and collections from
the public. These receipts are offset (deducted) from outlays in the
Federal budget. In total, offsetting receipts are estimated at $371.3
billion in 2000.
[[Page 102]]
Table 4-3. OFFSETTING RECEIPTS BY TYPE
(In millions of dollars)
----------------------------------------------------------------------------------------------------------------
Estimate
Source 1998 -----------------------------------------------------------------------
Actual 1999 2000 2001 2002 2003 2004
----------------------------------------------------------------------------------------------------------------
INTRAGOVERNMENTAL
TRANSACTIONS
On-budget receipts:
Federal intrafund
transactions:
Distributed by agency:
Interest from the
Federal Financing
Bank................. 4,141 2,736 2,352 2,153 1,996 1,845 1,859
Interest on Government
capital in
enterprises.......... 1,758 1,443 1,371 1,217 1,093 995 916
Other................. 4,157 1,656 1,716 1,810 1,908 2,024 2,130
Proposed Legislation
(non-PAYGO).......... .......... .......... 50 50 50 50 50
-----------------------------------------------------------------------------------
Total Federal
intrafunds........... 10,056 5,835 5,489 5,230 5,047 4,914 4,955
-----------------------------------------------------------------------------------
Trust intrafund
transactions:
Distributed by agency:
Payments to railroad
retirement........... 3,819 3,712 3,630 3,528 3,638 3,640 3,636
Other................. .......... 1 1 1 1 1 1
-----------------------------------------------------------------------------------
Total trust intrafunds 3,819 3,713 3,631 3,529 3,639 3,641 3,637
-----------------------------------------------------------------------------------
Total intrafund
transactions........... 13,875 9,548 9,120 8,759 8,686 8,555 8,592
-----------------------------------------------------------------------------------
Interfund transactions:
Distributed by agency:
Federal fund payments
to trust funds:
Contributions to
insurance programs:
Military
retirement fund.. 15,119 15,250 15,900 16,500 17,200 17,800 18,600
Supplementary
medical insurance 59,919 61,879 68,690 75,479 82,157 89,322 95,276
Proposed
Legislation (non-
PAYGO)........... .......... .......... -469 -648 -713 -775 -728
Hospital insurance 5,259 7,056 7,091 7,232 7,638 8,088 8,551
Railroad social
security
equivalent fund.. 58 94 74 74 75 77 78
Rail industry
pension fund..... 196 195 201 204 207 211 216
Civilian
supplementary
retirement
contributions.... 21,654 21,952 22,117 22,317 22,559 22,977 23,357
Unemployment
insurance........ 508 473 496 571 574 570 584
Other
contributions.... 383 416 407 408 411 412 420
Proposed
Legislation
(PAYGO).......... .......... .......... 42 .......... .......... .......... ..........
Miscellaneous
payments......... 568 581 429 436 437 413 405
-----------------------------------------------------------------------------------
Subtotal............ 103,664 107,896 114,978 122,573 130,545 139,095 146,759
-----------------------------------------------------------------------------------
Trust fund payments to
Federal funds:
Quinquennial
adjustment for
military service
credits............ .......... .......... .......... 1,121 .......... .......... ..........
Other............... 1,123 1,062 1,052 1,076 1,103 1,131 1,160
Proposed Legislation
(non-PAYGO)........ .......... .......... 1,847 .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Subtotal............ 1,123 1,062 2,899 2,197 1,103 1,131 1,160
-----------------------------------------------------------------------------------
Total interfunds
distributed by agency 104,787 108,958 117,877 124,770 131,648 140,226 147,919
-----------------------------------------------------------------------------------
Undistributed by agency:
Employer share,
employee retirement
(on-budget):
Civil service
retirement and
disability
insurance.......... 8,682 8,817 9,163 9,657 10,073 10,152 10,704
CSRDI from Postal
Service............ 6,109 6,071 6,274 6,451 6,620 6,760 6,849
Hospital insurance
(contribution as
employer) \1\ ..... 1,892 1,957 2,046 2,112 2,223 2,327 2,440
Postal employer
contributions to
FHI................ 607 610 638 663 690 718 747
Military retirement
fund............... 10,421 10,534 10,740 10,981 11,268 11,585 11,969
Legislative
proposal,
discretionary
offset............. .......... .......... 849 1,058 1,159 1,231 1,270
Other Federal
employees
retirement......... 109 114 120 125 131 134 139
-----------------------------------------------------------------------------------
Total employer
share, employee
retirement (on-
budget)............ 27,820 28,103 29,830 31,047 32,164 32,907 34,118
-----------------------------------------------------------------------------------
Interest received by
on-budget trust
funds.............. 67,208 67,160 68,454 69,545 70,826 72,229 73,441
Proposed Legislation
(non-PAYGO)........ .......... 73 157 251 369 458 529
Legislative
proposal,
discretionary
offset............. .......... .......... .......... 93 195 296 396
-----------------------------------------------------------------------------------
Total interfund
transactions
undistributed by
agency............... 95,028 95,336 98,441 100,936 103,554 105,890 108,484
-----------------------------------------------------------------------------------
Total interfund
transactions........... 199,815 204,294 216,318 225,706 235,202 246,116 256,403
[[Page 103]]
-----------------------------------------------------------------------------------
Total on-budget receipts.. 213,690 213,842 225,438 234,465 243,888 254,671 264,995
-----------------------------------------------------------------------------------
Off-budget receipts:
Interfund transactions:
Distributed by agency:
Federal fund payments
to trust funds:
Old-age, survivors,
and disability
insurance.......... 9,140 11,278 10,340 10,818 11,383 12,033 12,785
Undistributed by agency:
Employer share,
employee retirement
(off-budget)....... 7,052 7,355 7,969 8,442 9,102 9,746 10,442
Proposed Legislation
(non-PAYGO)........ .......... .......... -264 -271 -261 -260 -261
Interest received by
off-budget trust
funds.............. 46,629 51,869 56,492 62,107 68,500 75,448 82,749
-----------------------------------------------------------------------------------
Total off-budget receipts: 62,821 70,502 74,537 81,096 88,724 96,967 105,715
-----------------------------------------------------------------------------------
Total intragovernmental
transactions............... 276,511 284,344 299,975 315,561 332,612 351,638 370,710
===================================================================================
PROPRIETARY RECEIPTS FROM
THE PUBLIC
Distributed by agency:
Interest:
Interest on foreign
loans and deferred
foreign collections.... 799 768 638 684 641 706 695
Interest on deposits in
tax and loan accounts.. 1,228 1,050 1,115 1,105 1,105 1,105 1,105
Other interest
(domestic--civil) \2\ . 6,036 7,142 8,149 9,193 10,231 11,264 12,234
-----------------------------------------------------------------------------------
Total interest.......... 8,063 8,960 9,902 10,982 11,977 13,075 14,034
-----------------------------------------------------------------------------------
Royalties and rents....... 1,248 1,324 1,368 1,378 1,399 1,420 1,433
Proposed Legislation
(PAYGO)................ .......... .......... .......... 8 26 26 26
-----------------------------------------------------------------------------------
Sale of products:
Sale of timber and other
natural land products.. 461 466 487 466 450 434 433
Sale of minerals and
mineral products....... 237 31 35 35 49 49 20
Sale of power and other
utilities.............. 754 733 680 771 766 762 752
Other................... 28 61 59 51 67 63 54
-----------------------------------------------------------------------------------
Total sale of products.. 1,480 1,291 1,261 1,323 1,332 1,308 1,259
-----------------------------------------------------------------------------------
Fees and other charges for
services and special
benefits:
Medicare premiums and
other charges (trust
funds)................. 20,747 21,299 22,969 25,004 27,127 30,085 32,252
Proposed Legislation
(PAYGO)................ .......... .......... -135 275 488 562 687
Nuclear waste disposal
revenues............... 600 642 632 632 631 632 632
Veterans life insurance
(trust funds).......... 217 207 196 184 171 159 147
Other \2\ .............. 2,279 1,909 1,890 1,894 1,825 1,831 1,840
Proposed Legislation
(non-PAYGO)............ .......... .......... 19 19 19 19 19
Proposed Legislation
(PAYGO)................ .......... .......... 3 3 95 107 120
Legislative proposal,
discretionary offset... .......... .......... 966 963 960 996 1,014
-----------------------------------------------------------------------------------
Total fees and other
charges................ 23,843 24,057 26,540 28,974 31,316 34,391 36,711
-----------------------------------------------------------------------------------
Sale of Government
property:
Sale of land and other
real property.......... 58 34 85 70 571 71 70
Proposed Legislation
(PAYGO)................ .......... .......... 2 4 11 11 11
Military assistance
program sales (trust
funds)................. 14,135 13,280 12,690 12,140 12,050 9,720 8,610
Other................... 146 541 346 177 177 143 83
-----------------------------------------------------------------------------------
Total sale of Government
property............... 14,339 13,855 13,123 12,391 12,809 9,945 8,774
-----------------------------------------------------------------------------------
Realization upon loans and
investments:
Dollar repayments of
loans, Agency for
International
Development............ 1 .......... .......... .......... .......... .......... ..........
Foreign military credit
sales.................. 534 371 .......... .......... .......... .......... ..........
Negative subsidies and
downward reestimates... 4,300 8,296 933 691 2,491 2,577 2,814
Repayment of loans to
foreign nations........ 134 285 251 252 134 72 80
Other................... 153 76 78 82 131 111 108
-----------------------------------------------------------------------------------
Total realization upon
loans and investments.. 5,122 9,028 1,262 1,025 2,756 2,760 3,002
-----------------------------------------------------------------------------------
Recoveries and refunds \2\
......................... 3,375 3,844 3,977 4,244 5,416 4,350 4,443
Proposed Legislation
(PAYGO).................. .......... 142 168 300 349 276 194
Legislative proposal,
discretionary offset..... .......... .......... 788 .......... .......... .......... ..........
[[Page 104]]
Miscellaneous receipt
accounts \2\ ............ 2,493 4,730 1,375 1,380 1,379 1,380 1,379
-----------------------------------------------------------------------------------
Total proprietary receipts
from the public
distributed by agency.... 59,963 67,231 59,764 62,005 68,759 68,931 71,255
-----------------------------------------------------------------------------------
Undistributed by agency:
Other interest: Interest
received from Outer
Continental Shelf escrow
account.................. 3 1,264 9 .......... .......... .......... ..........
Rents and royalties on the
Outer Continental Shelf:
Rents and bonuses....... 1,500 846 327 324 248 194 194
Royalties............... 3,022 2,277 2,452 2,474 2,558 2,479 2,414
Sale of major assets...... 5,158 .......... 323 .......... .......... .......... ..........
-----------------------------------------------------------------------------------
Total proprietary receipts
from the public
undistributed by agency.. 9,683 4,387 3,111 2,798 2,806 2,673 2,608
-----------------------------------------------------------------------------------
Total proprietary receipts
from the public \3\ ....... 69,646 71,618 62,875 64,803 71,565 71,604 73,863
===================================================================================
OFFSETTING GOVERNMENTAL
RECEIPTS
Distributed by agency:
Regulatory fees........... 2,861 3,164 3,360 3,395 3,360 3,437 1,975
Proposed Legislation (non-
PAYGO)................... .......... .......... 20 20 20 20 20
Proposed Legislation
(PAYGO).................. .......... .......... .......... .......... .......... .......... 1,522
Other..................... 73 75 77 79 81 6 6
Undistributed by agency:
Spectrum auction proceeds. 2,642 1,447 4,819 2,801 7,065 1,770 775
Proposed Legislation (non-
PAYGO)................... .......... .......... 200 200 200 200 200
-----------------------------------------------------------------------------------
Total offsetting
governmental receipts.... 5,576 4,686 8,476 6,495 10,726 5,433 4,498
===================================================================================
Total offsetting receipts... 351,733 360,648 371,326 386,859 414,903 428,675 449,071
----------------------------------------------------------------------------------------------------------------
\1\ Includes provision for covered Federal civilian employees and military personnel.
\2\ Includes both Federal funds and trust funds.
\3\ Consists of:
----------------------------------------------------------------------------------------------------------------
Estimate
1998 -----------------------------------------------------------------
Actual 1999 2000 2001 2002 2003 2004
----------------------------------------------------------------------------------------------------------------
On-budget:
Federal funds.................... 33,181 32,184 26,053 26,150 30,726 30,097 31,204
Trust funds...................... 36,445 39,414 36,783 38,614 40,800 41,468 42,620
Off-budget 20 20 39 39 39 39 39
----------------------------------------------------------------------------------------------------------------