    [Budget of the United States Government]
    [V. Investing in the Common Good: Program Performance in Federal Functions]
    [30. Undistributed Offsetting Receipts]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 291]]

                     30.  UNDISTRIBUTED OFFSETTING RECEIPTS

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                                     Table 30-1.  Undistributed Offsetting Receipts
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                     Function                     1999   -----------------------------------------------------------
                                                 Actual     2000      2001      2002      2003      2004      2005
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........  ........  ........      -200      -200      -200      -200      -200
      Mandatory Outlays:
        Existing law..........................   -40,445   -43,061   -45,721   -49,084   -47,303   -46,894   -48,608
        Proposed legislation..................  ........  ........       305       299       302       313       317
    ----------------------------------------------------------------------------------------------------------------

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       Offsetting receipts, totaling $45.6 billion in 2001, fall into two
    categories: (1) the Government's receipts from performing business-like
    activities, such as proceeds from the sale of Outer Continental Shelf
    leases or a Federal asset; and, (2) the amounts that the Government
    shifts from one account to another, such as agency payments to
    retirement funds.

     Rents and Royalties on the Outer Continental Shelf (OCS)

       The Interior Department's Outer Continental Shelf lands leasing
    program, which began in 1954, currently generates about 26 percent and
    21 percent of U.S. domestic oil and natural gas production,
    respectively. Since its inception, it has held 129 lease sales, covering
    areas three to 200 miles offshore and generating over $128 billion in
    rents, bonuses, and royalties--mainly for the Treasury Department.
       OCS revenues provide most funding for the Land and Water Conservation
    Fund. The OCS program will generate more than $3.5 billion in receipts
    in 2000. In 2001, the Administration will continue the leasing moratoria
    for environmentally sensitive areas--offshore California, Oregon, and
    Washington; the Eastern Seaboard; the southwestern coastline of Florida,
    including the Everglades; and, certain parts of Alaska.

     Employee Retirement

       In 2001, Federal agencies will pay an estimated $38.2 billion on
    behalf of their employees to the Federal retirement funds, \1\ the
    Medicare health insurance trust fund, and the Social Security trust
    funds. As civilian employee pay rises, agencies must make commensurate
    increases in their payments to recognize the rising cost of retirement.
    ---------------------------------------------------------------------------
      \1\ The major programs are the Military Retirement System, the Civil
    Service Retirement System, and the Federal Employee Retirement System.
    ---------------------------------------------------------------------------

     Other Undistributed Offsetting Receipts

       In 1993, the President and Congress gave the Federal Communications
    Commission authority to assign spectrum licenses through competitive
    bidding, which has proven to be an extremely efficient and effective way
    to allocate this finite public resource. The budget reflects the
    continued policy of assigning licenses by auction, as authorized by the
    1997 Balanced Budget Act. The Government will auction spectrum made
    available from the transition to digital broadcast technology as well as
    other additional reallocated spectrum--raising an estimated $14.4
    billion over the next eight years, and compensating the public for the
    use of this valuable resource.