[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)
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                                                                               Estimate
               Function 800                   1999   -----------------------------------------------------------
                                             Actual     2000      2001      2002      2003      2004      2005
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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
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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.
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