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

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                             27.  GENERAL GOVERNMENT

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                             Table 27-1.  Federal Resources in Support of General Government
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 800                   1999   -----------------------------------------------------------
                                                 Actual     2000      2001      2002      2003      2004      2005
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........    13,702    12,586    14,669    14,505    14,596    14,840    15,019
      Mandatory Outlays:
        Existing law..........................     3,346     1,737     1,385     1,340     1,332     1,606     1,370
        Proposed legislation..................  ........        32        22       370       401       394       404
    Credit Activity:
      Direct loan disbursements...............  ........        28         5       N/A       N/A       N/A       N/A
      Guaranteed loans........................  ........  ........  ........       N/A       N/A       N/A       N/A
    Tax Expenditures:
      Existing law............................    63,005    65,805    68,265    70,775    73,830    77,035    80,275
      Proposed legislation....................  ........  ........        35       259       308       342       375
    ----------------------------------------------------------------------------------------------------------------
    N/A = Not available.

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      The General Government function encompasses the central management
    activities of the executive and legislative branches. Its major
    activities include Federal finances (tax collection, public debt,
    currency and coinage, Government-wide accounting), personnel management,
    and general administrative and property management.
      Four agencies are responsible for these activities: the Treasury
    Department (for which the budget proposes $14.0 billion), the General
    Services Administration ($942 million), the Office of Personnel
    Management ($214 million), and the Office of Management and Budget in
    the Executive Office of the President ($69 million).

    Department of the Treasury

      Treasury is the Federal Government's financial agent. It produces and
    protects the Nation's currency; helps set domestic and international
    financial, economic, and tax policy; enforces economic embargoes and
    sanctions; regulates financial institutions and the alcohol, tobacco,
    and firearms industries; manages the Federal Government's financial
    accounts; and, protects citizens and commerce against those who
    counterfeit money, engage in financial fraud, violate our border, and
    threaten our leaders. Treasury's law enforcement functions are discussed
    in Chapter 26, ``Administration of Justice''.
      In 2001 Treasury will seek to collect an estimated $1.96 trillion in
    tax and tariff revenues due under law; issue $2 trillion in marketable
    securities and savings bonds to finance the Government's operations and
    promote citizens' savings; and, produce nine billion Federal Reserve
    Notes, 15 billion postage stamps, and 17.9 billion coins.

       Internal Revenue Service (IRS): The IRS is the Federal Government's
    primary revenue collector. The IRS' mission is to provide America's
    taxpayers with top quality service by helping them understand and meet
    their tax responsibilities and by applying the tax law with integrity
    and fairness to all. To carry out its customer service-oriented mission,
    the IRS is engaged in a multi-year effort to modernize its technology
    infrastructure and organize into four operating divisions, each focused
    on serving groups of taxpayers with similar needs (i.e., wage and
    investment earners, small business and self-employed, middle and large
    cor

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    porate, and tax exempt and government entities).
      As it implements this technological and organizational modernization,
    the IRS is working to improve its work processes in order to enhance
    productivity and customer satisfaction. A critical component of this
    effort is the introduction of a new performance measurement system which
    balances business results (including quality and quantity measures),
    customer satisfaction, and employee satisfaction for each business unit.
    The IRS also is engaged in a long-term study to improve its
    understanding of taxpayer compliance burden so that this burden can be
    minimized. While this new measurement system is not yet fully in place,
    2001 targets for several critical measures include the following:
       improve customer satisfaction (based on random surveys with a
              seven-point scale) to 6.3 for toll-free assistance (6.2 in
              1998), 6.5 for walk-in customer service (6.4 in 1998), and 4.5
              for field examination (4.1 in 1998), and 4.1 for field
              collection (3.9 in 1998);
       continue to improve customer service through its toll-free
              assistance, answering 60 percent of calls, (53.3 percent in
              1999), with an accuracy rate of 84 percent for tax law
              questions (74.1 percent in 1999);
       receive 29.5 percent of individual returns filed
              electronically, up from 23.4 percent in 1999 (working toward a
              legislative goal of 80 percent of all returns and information
              documents by 2007), with over six million using Telefile,
              which allows taxpayers to file a simple tax return on the
              telephone in 10 minutes;
       receive 75.2 percent of tax revenues electronically (72.1
              percent in 1999); and,
       continue to process 99 percent of refunds for electronic
              returns within 21 days and for paper returns process 85
              percent within 40 days (99.6 percent for electronic and 83.2
              percent for paper in 1999).

      Financial Management Service (FMS): The FMS mission is to improve the
    quality of Federal Government financial management by providing
    financial services, information and advice to Federal program agencies
    and other clients. FMS has been working toward an all electronic
    Treasury by promoting its electronic payment and collection programs.
    FMS has also been providing debt collection and debt management services
    to all Federal agencies to aid in its implementation of the Debt
    Collection Improvement Act. In 2001, FMS will:
       increase the percentage of Federal payments and associated
              information transmitted electronically from 68 percent in 1999
              to 79 percent in 2001;
       increase electronic collections as a percentage of total
              collections from a level of 72 percent in 1999. FMS achieved
              its 2001 target of 72 percent two years ahead of schedule and
              is re-evaluating the program and will establish a new target;
              and,
       increase the percentage of eligible delinquent debt that is
              referred to Treasury for collection from 68 percent in 1999 to
              75 percent in 2001.

      Bureau of Public Debt (BPD): BPD conducts all public debt operations
    for the Federal government and promotes the sale of U.S. savings-type
    securities. Funding for 2001 will allow BPD to maintain its current
    level of service and will enable it to continue to meet the following
    baseline performance goals:
       issue at least 95 percent of over-the-counter bonds within
              three weeks of their purchase (99 percent in 1999);
       as in 1999, conduct all marketable securities auctions
              without error; and,
       announce auction results within one hour 95 percent of the
              time (100 percent in 1999).

       U.S. Mint: The U.S. Mint produces the Nation's coinage and
    manufactures numismatic products for the public. In 2001, the U.S. Mint
    will:
       introduce the 35 State series in the 50 States Commemorative
              Quarter Program; and,
       maintain high levels of customer service by shipping
              commemorative coins within four weeks and recurring coins
              within three weeks of order placement.

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      In 1999, the Mint received a high customer satisfaction rating from
    buyers of numismatic and commemorative coins. Exceeding the scores of
    many private sector firms in the American Customer Satisfaction Index
    (ACSI), the Mint scored among the highest of the 29 ``high impact''
    Federal agencies evaluated by ACSI.

       Bureau of Engraving and Printing (BEP): BEP produces all U.S.
    currency, about half of U.S. postage stamps, and other Government
    securities. In 2001, BEP is expected to have a stable production year,
    with currency and postage production remaining at 2000 levels, thus
    allowing BEP to continue to achieve the following goals:
       meet all Federal Reserve and United States Postal Service
              orders as requested; and,
       prevent more than 0.05 notes per million from being returned
              by the Federal Reserve because of counterfeit deterrence
              defects.

    General Services Administration (GSA)

      GSA provides policy leadership and expertly managed space, products,
    and services to support the administrative needs of Federal agencies. In
    2001, revenues from GSA's various business lines will exceed $14
    billion. GSA is responsible for more than $50 billion a year in Federal
    spending for property management and administrative services, and
    management of assets valued at $466 billion.
      In recent years, GSA has worked to develop a new Federal management
    model, focusing on performance measurement, accountability for agencies
    and employees, and the effective use of technology in changing work
    environments. GSA has established inter-agency groups to advise it on
    the policies, best practices, and performance benchmarks appropriate for
    each administrative service and information system. GSA's ultimate goal
    is a Federal Government in which agencies receive the administrative
    services they need, according to the best known practices and at the
    least cost.
      As a provider of many administrative services, GSA seeks to exceed all
    Government-wide performance goals and industry benchmarks for these
    services, as these benchmarks are developed or identified. Its overall
    goals as a service provider are to exceed its customer agencies'
    expectations for price, service, and quality. In 2001:
       the Public Buildings Service will deliver 81 percent of its
              construction, and 84 percent of its repair projects on
              schedule and within budget, up from 78 and 81 percent in 1999,
              respectively;
       the Federal Technology Service projects a 35-percent
              reduction from 1994 rates in monthly line charges for local
              telephone service;
       the Federal Supply Service will reduce its costs of
              operations in the Supply and Procurement Business Line by 45
              percent of 1999 costs; and,
       the volume of purchases made with Federal purchase cards will
              total $18.8 billion, a 27 percent increase over 1999.
      Because GSA provides services on a reimbursable basis, agency budgets
    fund most of GSA's activities. In 2001, for example, the budget proposes
    an appropriation of $871 million for GSA, primarily for the Office of
    Government-wide Policy, the Office of the Inspector General, and the
    construction and repair of Federal buildings. However, the budget
    projects obligations over $14 billion through GSA's revolving funds. GSA
    also affects Federal spending through its delegation of authority for
    property disposal, building operations, and the procurement of
    pharmaceuticals. In addition, GSA will administer contracts through
    which agencies will purchase more than $27 billion in goods and services
    outside of GSA's revolving funds.

    Office of Personnel Management (OPM)

      OPM provides human resource management leadership and services, based
    on merit principles, to Federal agencies and employees. It provides
    policy guidance, advice, and direct personnel services and systems to
    the agencies; operates USAJOBS, a worldwide job information and
    application system; and provides fast, friendly, accurate, and cost-
    effective retirement, health benefit, and life insurance services to
    Federal employees, annuitants, and agencies. Several OPM programs and

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    related performance measures are discussed elsewhere in the budget. For
    example, see Chapters 5 and 23 for a discussion of the health benefits
    program and Chapter 25 for a discussion of the retirement program.
      OPM provides oversight of the Federal civil service merit systems,
    covering nearly 1.8 million employees. In 1993, OPM was only conducting
    sporadic reviews at local level installations. In 2000 and 2001, OPM
    will conduct 15 to 16 Nation-wide agency oversight reviews each year,
    including reviews of agencies whose personnel in the Executive Branch
    are not covered by Title 5 of the U.S. Code, and a number of small
    agencies.
      OPM promotes programs and personnel flexibilities that enable
    employees to successfully balance work and family issues, such as
    quality child care and family friendly programs. In 2001, OPM will
    continue to conduct programs promoting lifelong learning (e.g.,
    Individual Learning Accounts), diversity in the workplace, employment of
    persons with disabilities, and alternative dispute resolution, to foster
    effective labor-management relationships.
       In 2001, OPM will:
       Continue to expand access to Federal employment information
              by all Americans by increasing usage of USAJOBS by five
              percent from the 1999 high of 14.8 million (usage which has
              tripled since 1993), and maintain a 90 percent or better (up
              from 60 percent in 1993) customer satisfaction level with
              USAJOBS users by implementing a student employment job search
              feature and email notification of job matches to job seekers.
       The Office of the Inspector General will initiate program
              performance audits of OPM mission-critical programs, beginning
              with the retirement and investigations programs.
       The Office of Executive and Management Development will
              establish a minimum of twelve strategic partnerships with high
              impact agencies, emphasizing custom-designed programs to meet
              their strategic needs in promoting organizational
              effectiveness of the agencies' partners.
       The Office of Investigations will continue to work with its
              contractor to further improve the quality of casework, reduce
              the cost of a standard background investigation to the
              agencies (reducing it from $2,795 to $2,695 in 2000), and to
              meet new business requirements from the Drug Enforcement
              Administration and the Department of Defense.

    Office of Management and Budget (OMB)

      OMB assists the President in policy development relating to the
    budget, regulations, information, and legislation; and in the management
    of the Executive Branch. OMB also provides the President with high
    quality analysis and advice on a broad range of topics.
      OMB prepares the Federal budget and oversees its execution in the
    departments and agencies by helping to formulate the President's
    spending plans, reviewing the performance of agency programs, and the
    effectiveness of policies and procedures; assessing competing funding
    demands among agencies; and, providing policy options. OMB works to
    ensure that proposed legislation, and agency testimony, reports, and
    policies are consistent with Administration policies, leveraging use of
    interagency programs and Councils. On behalf of the President, OMB often
    presents and justifies major policies and initiatives related to the
    budget and Government management before Congress.
      OMB has a central role in developing, overseeing, coordinating, and
    implementing Federal procurement, financial management, information, and
    regulatory policies. OMB helps to strengthen administrative management,
    develop better performance measures, and improve coordination among
    Executive Branch agencies.
       In 2000, OMB will use a state-of-the art off-site secure data center
    to produce the annual budget. In 2001, OMB will invest in additional
    information technology applications to improve efficiency and
    effectiveness of the OMB's staff. In addition, OMB staffing will be
    increased to permit completion of more thorough technical and analytical
    work in key functional areas such as financial management, procurement,
    regulatory anal

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    ysis, economic forecasting, and technology systems investment analyses.

    Tax Incentives

      The Federal Government provides significant tax incentives that
    benefit State and local governments. It permits tax-exempt borrowing for
    public purposes, costing $23.4 billion in Federal revenue losses in 2001
    and $118 billion over five years, from 2001 to 2005. (The budget
    describes tax-exempt borrowing for non-public purposes in the chapters
    on other Government functions.) In addition, taxpayers can deduct State
    and local income taxes against their Federal income tax, costing $44.7
    billion in 2001 and $239 billion over five years. Corporations with
    business in Puerto Rico and other U.S. possessions receive a special tax
    credit, costing an estimated $2.6 billion in 2001 and $13 billion over
    five years. This tax credit is phasing out and will expire at the end of
    2005. Finally, up to certain limits, taxpayers can credit State
    inheritance and estate taxes against Federal estate taxes, costing $35
    billion over five years.