[Analytical Perspectives]
[Other Technical Presentations]
[15. Trust Funds and Federal Funds]
[From the U.S. Government Publishing Office, www.gpo.gov]


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                      OTHER TECHNICAL PRESENTATIONS

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                    15. TRUST FUNDS AND FEDERAL FUNDS

  The budget consists of two major groups of funds: Federal funds and 
trust funds. This section presents summary information about the 
transactions of each of these two fund groups and of the major trust 
funds. It also discusses the recent reclassification of most Indian 
tribal trust funds as non-budgetary. Information is also provided about 
the income and outgo of four Federal funds that are financed by 
earmarked collections in a manner similar to trust funds.

                           Federal Funds Group

  The Federal funds group comprises the larger part of the budget. It 
includes all transactions not classified by law as being in trust funds.
  The main financing component of the Federal funds group is the general 
fund, which is used to carry out the general purposes of Government 
rather than being restricted by law to a specific program. It consists 
of all collections not earmarked by law to finance other funds, 
including virtually all income taxes and many excise taxes, and all 
expenditures financed by these collections and by general Treasury 
borrowing.
  The Federal funds group also includes special funds and revolving 
funds, which earmark collections for spending on specific purposes. 
Where the law requires that Federal fund collections from a specified 
source be earmarked to finance a particular program, such as a portion 
of the Outer Continental Shelf mineral leasing receipts deposited into 
the Land and Water Conservation Fund, the collections and associated 
disbursements are recorded in special fund receipt and expenditure 
accounts. The majority of special fund collections are derived from the 
Government's power to impose taxes, fines, and other compulsory 
payments. These collections must be appropriated before they can be 
obligated and spent. Significant amounts of collections credited to 
special funds are derived from business-like activity, such as the 
receipts from Outer Continental Shelf mineral leasing.
  Revolving funds conduct continuing cycles of business-like activity. 
They receive receipts from the sale of products or services and use the 
proceeds to finance their spending. Instead of being deposited in 
receipt accounts, their proceeds are recorded in the revolving funds, 
which are expenditure accounts. These collections generally are 
available automatically for obligation and making payments. Outlays for 
revolving funds are reported net of offsetting collections. There are 
two classes of revolving funds. Public enterprise funds, such as the 
Postal Service Fund, conduct business-like operations mainly with the 
public. Intragovernmental funds, such as the Federal Buildings Fund, 
conduct business-like operations mainly within and between Government 
agencies.

                            Trust Funds Group

  The trust funds group consists of funds that are designated by law as 
trust funds. Like special funds and revolving funds, they earmark 
collections for spending on specific purposes. Many of the larger trust 
funds finance social insurance payments for individuals, such as Social 
Security, Medicare, and unemployment compensation. Other major trust 
funds finance military and Federal civilian employees' retirement, 
highway and transit construction, and airport and airway development. 
There are a few trust revolving funds that are credited with collections 
earmarked by law to carry out a cycle of business-type operations. Trust 
funds also include a few small funds established to carry out the terms 
of a conditional gift or bequest.
  There is no substantive difference between trust funds and special 
funds or between revolving funds and trust revolving funds. Whether a 
particular fund is designated in law as a trust fund is, in many cases, 
arbitrary. For example, the National Service Life Insurance Fund is a 
trust fund, but the Servicemen's Group Life Insurance Fund is a Federal 
fund, even though both are financed by earmarked fees paid by veterans 
and both provide life insurance payments to veterans' beneficiaries. \1\
---------------------------------------------------------------------------
  \1\ Another example is the Violent Crime Reduction Trust Fund, 
established pursuant to the Violent Crime Control and Law Enforcement 
Act of 1994. Because the Fund is substantively a means of accounting for 
general fund appropriations, and does not consist of dedicated receipts, 
it is classified as a Federal fund rather than a trust fund, 
notwithstanding the presence of the words ``Trust Fund'' in its official 
name.
---------------------------------------------------------------------------
  The Federal budget meaning of the term ``trust'' differs significantly 
from the private sector usage. The beneficiary of a private trust owns 
the trust's income and often its assets. A custodian manages the assets 
on behalf of the beneficiary according to the stipulations of the trust, 
which he or she cannot change unilaterally. In contrast, the Federal 
Government owns the assets and earnings of most Federal trust funds, and 
it can unilaterally raise or lower future trust fund collections and 
payments, or change the purpose for which the collections are used, by 
changing existing law. Only a few small Federal trust funds are managed 
pursuant to a trust agreement where the Government is the trustee, and 
the Government generally has some ability to determine the amount 
deposited into or paid out of these funds. Other amounts are held in 
deposit funds by the Government as a custodian on behalf of some entity 
outside the Government. The Government makes no decisions about the 
amount of these deposits or how they are spent. Therefore, they are 
considered to be non-budgetary instead of Federal trust funds and are 
excluded from the Federal budget.
  A trust fund's income must be used for the purposes designated by law. 
Some, such as the Federal Employ

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ees Health Benefits fund, spend their income almost as quickly as it is 
collected. Others, such as the Social Security and the Federal civilian 
employees retirement trust funds, currently spend considerably less than 
they collect each year. A surplus of income over outgo adds to the trust 
fund's balance, which is available to finance future expenditures. The 
balances are generally invested, by law, in Treasury debt securities. 
Any net cash inflow from the public to the trust funds decreases the 
Treasury's need to borrow from the public in order to finance a Federal 
funds deficit. 

                      Table 15-1.  RECEIPTS, OUTLAYS, AND SURPLUS OR DEFICIT BY FUND GROUP
                                            (In billions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                            Estimate
                                        1999   -----------------------------------------------------------------
                                      actual       2000       2001       2002       2003       2004       2005
----------------------------------------------------------------------------------------------------------------
Receipts:
  Federal funds cash income:
    From the public................   1,195.9    1,300.4    1,325.3    1,360.4    1,393.4    1,450.2    1,511.0
    From trust funds...............       1.1        1.1        5.5        1.1        1.1        1.2        1.2
                                    ----------------------------------------------------------------------------
    Total, Federal funds cash         1,197.0    1,301.4    1,330.8    1,361.5    1,394.5    1,451.3    1,512.2
     income........................
  Trust funds cash income:
    From the public................     702.4      730.5      767.1      801.9      842.6      879.3      930.4
    From Federal funds:
      Interest.....................     120.3      132.7      143.9      155.8      169.8      183.6      198.1
      Other........................     153.2      159.4      181.0      187.7      190.2      206.3      219.6
                                    ----------------------------------------------------------------------------
        Total, trust funds cash         975.9    1,022.5    1,091.9    1,145.4    1,202.7    1,269.1    1,348.1
         income....................
  Offsetting receipts..............    -345.5     -367.7     -403.7     -425.7     -449.7     -484.3     -519.4
                                    ----------------------------------------------------------------------------
    Total, unified budget receipts.   1,827.5    1,956.3    2,019.0    2,081.2    2,147.5    2,236.1    2,340.9

Outlays:
  Federal funds cash outgo.........   1,285.3    1,359.0    1,388.1    1,433.3    1,472.2    1,525.7    1,584.7
  Trust funds cash outgo...........     763.2      798.3      850.6      887.7      940.4      999.8    1,060.1
  Offsetting receipts..............    -345.5     -367.7     -403.7     -425.7     -449.7     -484.3     -519.4
                                    ----------------------------------------------------------------------------
    Total, unified budget outlays..   1,703.0    1,789.6    1,835.0    1,895.3    1,962.9    2,041.1    2,125.5

Surplus or deficit (-):
  Federal funds....................     -88.3      -57.6      -57.3      -71.8      -77.6      -74.3      -72.5
  Trust funds......................     212.7      224.3      241.3      257.7      262.3      269.3      287.9
                                    ----------------------------------------------------------------------------
    Total, unified surplus/deficit      124.4      166.7      184.0      185.9      184.6      195.0      215.4
     (-)...........................
----------------------------------------------------------------------------------------------------------------
Note: Receipts include governmental, interfund, and proprietary receipts. They exclude intrafund receipts, which
  are offset against intrafund payments so that cash income and cash outgo are not overstated.

The surplus allocation for debt reduction is part of the President's overall budgetary framework to extend the
  solvency of Social Security and Medicare, and is shown in Table S-1 in Part 6 of the 2001 Budget.

  A trust fund normally consists of one or more receipt accounts (to 
record income) and an expenditure account (to record outgo). However, a 
few trust funds, such as the Veterans Special Life Insurance fund, are 
established by law as revolving funds. These funds are similar to 
revolving funds in the Federal funds group. They conduct a cycle of 
business-type operations, offsetting collections are credited to the 
funds (which are expenditure accounts), and their outlays are displayed 
net of the offsetting collections.

                     Income and Outgo by Fund Group

  Table 15-1 shows income, outgo, and surplus or deficit by fund group 
and adds them together (and removes double-counting) to derive the total 
unified budget receipts, outlays, and surplus or deficit. The estimates 
assume enactment of the President's budget proposals. Income consists 
mostly of receipts (derived from governmental activity--primarily 
income, payroll, and excise taxes--and gifts). It also includes 
proprietary receipts (derived from business-like transactions with the 
public) and interfund collections (receipts by one fund of payments from 
a fund in the other fund group) that are deposited in receipt accounts. 
Outgo consists of payments made to the public and/or to a fund in the 
other fund group.
  Two types of transactions are treated specially. First, income and 
outgo for a fund group exclude transactions between funds within the 
same fund group.\2\ These intrafund transactions constitute outgo and 
income for the individual funds that make and collect the payments. 
However, because the totals for each fund group measure its transactions 
with the public and the other fund group, intrafund transactions must be 
subtracted from the sum of the income and outgo of all individual funds 
within the fund group to calculate the consolidated income and outgo for 
that fund group as a whole.

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Second, income excludes the offsetting collections, which are offset 
against outgo in revolving fund expenditure accounts instead of being 
deposited in receipt accounts.\3\ It would be conceptually appropriate 
to classify these collections as income, but at present the data are not 
tabulated centrally for both fund groups. Consequently, they are offset 
against outgo in Table 15-1 and are not shown separately.
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  \2\ For example, the railroad retirement trust funds pay the 
equivalent of social security benefits to railroad retirees, in addition 
to the regular railroad pension. These benefits are financed by a 
payment from the Federal Old-Age and Survivors Insurance trust fund to 
the railroad retirement trust funds. The payment and collection are both 
deducted so that total trust fund income and outgo measure disbursements 
to the public and to Federal funds.
  \3\ For example, postage stamp fees are deposited as offsetting 
collections in the Postal Service fund. As a result, the Fund's outgo is 
disbursements net of collections.
---------------------------------------------------------------------------
  Some funds in the Federal funds group and some trust funds are 
authorized to borrow from the general fund of the Treasury.\4\ Borrowed 
funds are not recorded as receipts and are excluded from the income of 
the fund. The borrowed funds finance outlays by the fund in excess of 
available receipts. Subsequently, fund receipts are transferred from the 
fund to the general fund in repayment of the borrowing. The repayment is 
not recorded as an outlay of the fund or included in fund outgo.
---------------------------------------------------------------------------
  \4\ For example, the Bonneville Power Administration Fund, a revolving 
fund in the Department of Energy, is authorized to borrow from the 
general fund, and the Black Lung Disability Trust Fund in the Department 
of Labor is authorized to receive appropriations of repayable advances 
from the general fund (a form of borrowing).
---------------------------------------------------------------------------
  Some income in both Federal funds and trust funds consists of 
offsetting receipts. For most budget purposes, offsetting receipts are 
excluded from receipts figures and subtracted from gross outlays.
  There are two reasons for this treatment:
    Business-like or market-oriented activities with the public 
          The collections from such activities are deducted from gross 
          outlays, rather than added to receipts, in order to produce 
          budget totals for receipts and outlays that represent 
          governmental rather than market activity.
     Intragovernmental transactions Collections by one 
          Government account from another are deducted from gross 
          outlays, rather than added to receipts, so that the budget 
          totals measure the transactions of the Government with the 
          public.
  Because the income for Federal funds and for trust funds recorded in 
Table 15-1 includes offsetting receipts, those offsetting receipts must 
be deducted from the two fund groups' combined gross income in order to 
reconcile to total (net) unified budget receipts. Similarly, because the 
outgo for Federal funds and for trust funds in Table 15-1 consists of 
gross outlays, the amount of the offsetting receipts must be deducted 
from the sum of the Federal funds' and the trust funds' gross outgo in 
order to reconcile to total (net) unified budget outlays.

               Income, Outgo, and Balances of Trust Funds

  Table 15-2 shows the trust funds balance at the start of each year, 
income and outgo during the year, and the end of year balance. Income 
and outgo are divided between transactions with the public and 
transactions with Federal funds. Receipts from Federal funds are divided 
between interest and other interfund receipts.
  The definition of income and outgo in this table differs from those in 
Table 15-1 in one important way. Trust fund collections that are offset 
against outgo (as offsetting collections) within expenditure accounts 
instead of being deposited in separate receipt accounts are classified 
as income in this table but not in Table 15-1. This classification is 
consistent with the definitions of income and outgo for trust funds used 
elsewhere in the budget. It has the effect of increasing both income and 
outgo by the amount of the offsetting collections. The difference is 
approximately $26 billion in 1999. Table 15-2, therefore, provides a 
more complete summary of trust fund income and outgo.
  The trust funds group is expected to have large and growing surpluses 
over the projection period. As a consequence, trust fund balances are 
estimated to grow substantially, as they have over the past two decades. 
The size of the anticipated balances is unprecedented, and it results 
mainly from relatively recent changes in the way some trust funds are 
financed.
  Until the 1980s, most trust funds operated on a pay-as-you-go basis. 
Taxes and user fees were set at levels high enough to finance benefits 
and administrative expenses, and to maintain prudent reserves, generally 
defined as being equal to one year's expenditures. As a result, trust 
fund balances tended to grow at about the same rate as their annual 
expenditures.
  Pay-as-you-go financing was replaced in the 1980s by full or partial 
accrual funding for some of the larger trust funds. In order to 
partially prefund the ``baby-boomers'' social security benefits, the 
Social Security Amendments of 1983 raised payroll taxes above the levels 
necessary to finance current expenditures. In 1984 a new system was set 
up to finance military retirement benefits on a full accrual basis. In 
1986 full accrual funding of retirement benefits was mandated for 
Federal civilian employees hired after December 31, 1983. The latter two 
changes require Federal agencies and their employees to make annual 
payments to the Federal employees' retirement trust funds in an amount 
equal to the value of the retirement benefits earned by employees in 
that year. Since many years will pass before current employees are paid 
retirement benefits, the trust funds will accumulate substantial 
balances over time.
  Primarily because of these changes, but also because of the impact of 
real growth and inflation, trust fund balances increased ninefold from 
1982 to 1999, from $205 billion to $1.9 trillion. Under the proposals in 
the President's budget, the balances are estimated to increase by 
approximately 82 percent by the year 2005, rising to $3.4 trillion. 
Almost all of these balances are invested in Treasury securities and 
earn interest. Therefore, they represent the value, in current dollars, 
of taxes and user fees that have been paid in advance for future 
benefits and services. 

                                              Table 15-2.  INCOME, OUTGO, AND BALANCES OF TRUST FUNDS GROUP
                                                                (In billions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Estimate
                                                                          1999   -----------------------------------------------------------------------
                                                                        actual       2000        2001        2002        2003        2004        2005
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Total Trust Funds

Balance, start of year..............................................   1,663.2     1,875.7     2,099.8     2,340.8     2,598.5     2,860.8     3,130.1

Income:
  Governmental receipts.............................................     664.2       696.7       731.9       764.3       794.7       825.8       871.3
  Proprietary receipts..............................................      46.1        42.1        44.0        46.5        57.2        63.2        69.2
  Receipts from Federal funds:
    Interest........................................................     120.4       132.8       144.0       157.2       171.1       184.8       199.2
    Other...........................................................     171.0       181.1       204.4       210.7       213.2       230.1       245.3
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................   1,001.6     1,052.8     1,124.3     1,178.6     1,236.2     1,303.8     1,385.0

Outgo:
  To the public.....................................................     787.8       827.4       877.6       919.8       972.8     1,033.4     1,095.8
  Payments to Federal funds.........................................       1.1         1.1         5.5         1.1         1.1         1.2         1.2
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     788.9       828.5       883.0       920.9       973.9     1,034.5     1,097.0

Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................      92.3        91.5        97.3       100.5        91.2        84.5        88.8
    Interest........................................................     120.4       132.8       144.0       157.2       171.1       184.8       199.2
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................     212.7       224.3       241.3       257.7       262.3       269.3       287.9

Adjustments:
  Transfers/lapses (net)............................................       *          -0.1        -0.3    ..........  ..........  ..........  ..........
  Other adjustments.................................................      -*          -*          -*      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................     212.7       224.2       241.0       257.7       262.3       269.3       287.9
                                                                     ===================================================================================
Balance, end of year................................................   1,876.0     2,099.8     2,340.8     2,598.5     2,860.8     3,130.1     3,418.0
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* Less than $50 million.
\1\ The difference between 1999 end of year balance and 2000 start of year balance is due to the removal of most tribal trust funds from the budget
  totals. See the discussion regarding changes in the budget classification of tribal trust funds in this chapter for additional information.

  The President's policy framework in this budget is designed to 
increase the Government's ability to pay future Social Security and 
Medicare benefits. However, this enhanced ability to pay does not arise 
from the building up of large trust fund balances in and of itself. When 
spending exceeds the trust fund's current income, the trust fund can 
exercise its financial claim on eco

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nomic resources by converting its holdings to cash -- whether the 
holdings are Treasury bonds or corporate equities. This conversion 
ultimately represents an exchange of Government (or corporate) financial 
securities for private sector resources.Thus, in either case, the 
Government's ability to pay benefits is related to the health of its 
overall fiscal position and of the economy as a whole, rather than a 
simple function of trust fund balances.
  Increases in trust fund balances do strengthen the ability to pay 
future benefits if the surplus in the trust fund is matched by an 
improvement in the Government's net financial position. It is in this 
sense that future benefits can be prefunded. If a trust fund surplus is 
matched by a corresponding reduction in publicly held debt, then the 
Government's financial position will be improved. This makes it easier 
to finance future benefits in two respects. The first, direct effect, is 
that this debt reduction reduces future interest payments and frees up 
general receipts to finance the future benefits. The second is that debt 
reduction increases the resources available for investment in the 
economy as a whole. Greater investment now increases future incomes and 
wealth, which will provide more real economic resources to support the 
benefits, and may prolong the solvency of the trust funds.
  Table 15-5, which appears at the end of the chapter, shows estimates 
of income, outgo, and balances for 1999 through 2005 for the major trust 
funds. With the exception of transactions between trust funds, the data 
for the individual trust funds are conceptually the same as the data in 
Table 15-2 for the trust funds group. As explained previously, 
transactions between trust funds are shown as outgo of the fund that 
makes the payment and as income of the fund that collects it in the data 
for an individual trust fund, but the collections are offset against 
outgo in the data for the trust fund group. Additional information for 
these and other trust funds can be found in the Status of Funds tables 
in the Budget Appendix.
  Table 15-6, which also appears at the end of this chapter, shows 
income, outgo, and balances of four Federal funds--a revolving fund and 
three special funds. These funds are similar to trust funds in that they 
are financed by earmarked receipts, excesses of income over outgo are 
invested, the interest earnings add to balances, and the balances remain 
available to finance future expenditures. The table is illustrative of 
the Fed

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eral funds group, which includes many other revolving funds and special 
funds in addition to the ones shown.

     Changes in the Budget Classification of the Indian Tribal Funds

  Beginning in fiscal year 2000, the Federal budget totals no longer 
include funds that are owned by Indian tribes and held and managed in a 
fiduciary capacity by the Government on the tribes' behalf. These Indian 
tribal funds were included in the budget totals from the adoption of the 
unified budget in 1969 through fiscal year 1999, under the generic title 
``tribal trust funds.'' As explained below, appropriate application of 
current Federal budget concepts dictates that most of the Indian tribal 
funds should not be included in the budget or subject to budgetary 
constraints. These are trusts, in the private sector meaning of the 
term. Of the ones that remain in the budget, about half are special 
funds, meaning that their receipts are earmarked to be used to benefit 
the tribes. The rest are designated as trust funds. These trust funds 
are like other Federal trust funds, in that they consist of receipts 
that are earmarked for a specific purpose, but as described earlier in 
this chapter, they do not meet the private sector meaning of the term 
``trust'' and would more appropriately be classified as special funds. 
To avoid confusion over terms, this discussion will refer to the Indian 
tribal funds that are no longer included in the budget as ``tribal 
fiduciary funds'' and to the ones still included in the budget as 
``tribal special funds.''
  This reclassification affects only budget coverage and does not change 
the operation of the funds or ownership of the fund assets, whether by 
the Government or the tribes. The legal obligations of the Secretary of 
the Interior, such as distributing interest earnings to tribes, and of 
the Secretary of the Treasury, such as paying interest on tribal fund 
holdings of Treasury securities, are also not be affected. The funds 
will continue to be managed by the Federal Government according to 
present law, with the same rights and responsibilities that existed 
prior to the reclassification.
  The Government currently holds $2.6 billion in approximately 1,400 
funds for roughly 315 Indian tribes. Prior to fiscal year 2000, all of 
these Indian tribal funds were included in the Federal budget. As shown 
in Table 15-3, the Department of the Interior estimates that 
approximately $2 billion of assets in approximately 1,400 Indian tribal 
funds were removed from budgetary accounts as of October 1, 1999. 
Additional amounts may be removed as the Administration finishes 
reviewing the Indian tribal funds. The Government also held $480 million 
for individual Indians in about 285,000 accounts as of September 30, 
1999. These individual Indian accounts have always been classified as 
non-budgetary deposit funds, and their categorization will not be 
affected by the reclassification of the Indian tribal funds.
  The Indian tribal funds are composed mostly of funds belonging to 
Indian tribes, and in some cases the Federal Government, that are 
required or authorized by law to be deposited in the U.S. Treasury or 
managed ``in trust'' by the United States. While all transactions for 
Indian tribal funds flow through the Treasury, most are currently 
invested outside the Treasury in other legal investments. The assets are 
derived from various sources, including payments for land cessions by 
treaty; proceeds from sales of land under confiscatory acts of Congress; 
proceeds from sales and leases of tribal lands and other natural 
resources; judgment awards made by the Indian Claims Commission and the 
United States Court of Claims; monies appropriated to fund legislative 
settlements; and interest on fund investments. Table 15-3 groups these 
sources of income into three categories. 

 Table 15-3.  TRIBAL TRUST FUND BALANCES AND REVISED BUDGETARY TREATMENT
          (dollar amounts in millions as of September 30, 1999)
------------------------------------------------------------------------
              Type of Tribal Trust Fund                Number    Amount
------------------------------------------------------------------------
Remaining on-budget (derived from legislative acts
 and for Government obligations):
  Special funds.....................................        13       520
  Trust funds.......................................        16       162
                                                     -------------------
    Subtotal, funds remaining on-budget.............        29       682

Reclassified as non-budgetary:
  Funds with assets derived from tribal-owed natural       631       240
   resources........................................
  Funds funded by judgments against the United             700     1,260
   States...........................................
  Funds derived from legislative acts and for               50       400
   Government obligations...........................
                                                     -------------------
    Subtotal, funds reclassified as non-budgetary...     1,381     1,900
                                                     ===================
Grand Total.........................................     1,410     2,582
------------------------------------------------------------------------

  As a result of this reclassification, the Federal budget includes the 
transactions of all Indian tribal funds through fiscal year 1999, but it 
excludes the transactions of the tribal fiduciary funds after their 
removal from the budget in fiscal year 2000. The transactions of the 
tribal fiduciary funds are instead included in the deposit fund totals 
compiled by the Treasury Department. The one-time transfer of Indian 
tribal fund assets to non-budgetary deposit funds is not recorded as a 
budget outlay because it does not represent an

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allocation of resources by the Government in the current period. In many 
cases (e.g., royalties), the resources never belonged to the Government 
and therefore should never have been included in the Federal budget. In 
other cases (e.g., settlement payments from the Government to the 
tribes), the transfers should have increased total budget outlays in 
past years, when payments were made to the tribal funds. The historical 
data on the budget will not be revised, due to the relatively small 
amount of transactions to be excluded from the budget and the difficulty 
of retroactively revising the numerous accounts affected by the 
reclassification.

  Consistency with the Unified Budget.--Reclassifying tribal fiduciary 
funds as non-budgetary is consistent with the unified budget concepts 
developed by the President's Commission on Budget Concepts in 1967.\5\ 
The Commission recommended that the budget include all the Federal 
Government's programs and all the fiscal transactions of these programs 
with the public. The Commission used several criteria in determining 
which entities or activities should be included in the Federal budget: 
the ownership of the entity or activity, the sources of its capital, the 
selection of its managers, and the degree of control the President and 
Congress have over its program and budget. In discussing these criteria, 
the Commission stated that ``no one of these . . . [criteria] is 
conclusive, and at the margin, where boundary questions arise, decisions 
have been made on the basis of a net weighing of as many relevant 
considerations as possible.'' \6\ With this in mind, the Commission 
recommended a comprehensive budget with almost no exception. The 
Commission reasoned that entities or activities having characteristics 
consistent with other Federal entities or activities, such as Federal 
ownership or Presidential and Congressional control over its program or 
budget, should be included in the unified budget. Other entities and 
activities should be excluded.
---------------------------------------------------------------------------
  \5\ Report of the President's Commission on Budget Concepts 
(Washington, D.C.: U.S. Government Printing Office, October 1967), p. 
25.
  \6\ Ibid.
---------------------------------------------------------------------------
  The Commission's distinction between budgetary and non-budgetary 
activities is exemplified by the treatment of two Federal employee 
retirement funds: the Civil Service Retirement and Disability (CSRD) 
trust fund and the Thrift Savings Fund. The CSRD trust fund, which pays 
annuities to retired Federal employees, is included in the budget 
because the Government owns the assets and can make decisions about the 
level and timing of future pension benefit payments. Individuals do not 
have separate accounts in the CSRD trust fund, and the fund assets, 
which are much smaller than the present value of future pensions earned 
to date under current law, do not constitute the employees' promised 
benefits and cannot reasonably be looked upon as employees' equity in 
the system. Conversely, the Thrift Savings Fund, which holds assets for 
Federal employees who participate in the Thrift Savings Plan, is non-
budgetary. The thrift fund is managed by the Government in a fiduciary 
capacity on behalf of the participants. The savings plan is a defined 
contribution plan--the assets are credited to individual employees' 
accounts, and the assets in an account are owned by the employee, who 
has a legal claim on the specific assets in that account and no more. 
Employee decisions determine most of the amounts contributed to the 
Thrift Savings Fund, either directly from the employee or from the 
Federal matching contribution, with only a relatively small part being 
contributed to the fund automatically. Employees make decisions about 
investments among the statutorily prescribed funds. An employee may 
borrow from his or her account for specified purposes, such as to 
purchase a house or finance educational expenses.\7\
---------------------------------------------------------------------------
  \7\ A small number of trust funds (according to the private sector 
usage of this term) have been established with the Government as the 
beneficiary as well as the fiduciary. These funds have especially been 
established from gifts by the public to the Government, such as gifts 
and donations to the Architect of the Capitol, gifts and bequests to the 
Department of Agriculture, and gifts and contributions to the 
Corporation for National and Community Service. These funds are included 
in the budget totals because the Government owns the fund assets.
---------------------------------------------------------------------------
  The reclassification of the tribal fiduciary funds as non-budgetary 
fits neatly with the ownership criterion of the Commission and the 
budgetary treatment of the Thrift Savings Fund and other deposit funds. 
Based on the Commission's recommendations, the budget generally does not 
include activities or agencies which are not owned by the Federal 
Government. Deposit funds are non-budgetary accounts that record amounts 
held temporarily until ownership is determined (for example, earnest 
money paid by bidders for mineral leases) or held by the Government as 
agent for others (for example, state and local income taxes withheld 
from Federal employees' salaries and not yet paid to the states and 
localities). Tribal fiduciary funds share the principal defining 
characteristics of deposit funds private ownership and therefore ought 
to be classified in the same way rather than included in the budget.\8\
---------------------------------------------------------------------------
  \8\ Non-budgetary activities, including deposit funds, are discussed 
further in Chapter 19, ``Off-Budget Federal Entities and Non-Budgetary 
Activities.'' Deposit funds are also discussed in a section of Chapter 
24, ``Budget Systems and Concepts and Glossary.''
---------------------------------------------------------------------------
  The removal of the tribal fiduciary funds from the budget is also 
consistent with the Commission's criteria regarding the source of 
capital and the extent of federal control. The assets of the tribal 
fiduciary funds whether derived from tribe-owned natural resources, 
judgment awards, or appropriated legislative settlements are monies 
that, based on legal requirements, are owned by the tribes. The tribal 
special funds, in contrast, are funded by appropriations to achieve a 
public policy goal, as opposed to resolving a legal claim, and are 
established in a manner whereby ownership of the fund's assets is not 
conveyed to the tribes. With regard to the extent of Executive and 
Congressional control, it is clear that the Government's control over 
the tribal fiduciary funds is significantly limited and not sufficient 
to override the ownership test. The Government acts as the fiduciary of 
the fund assets while they are deposited in the Treasury or held as 
other legal investments and, at most, has some influence over the 
tribally developed use plans for judgment awards. In effect, the 
Government simply serves as a banker, and deposits, and

[[Page 349]]

withdrawals from the fund (i.e., the ``bank account'') do not represent 
resource allocation by the Government. Except where prohibited by law, 
the tribes can withdraw and manage these assets.

  Analyzing the Indian Tribal Funds.--The criteria used to determine the 
budgetary treatment of the Indian tribal funds are listed below. Some 
are applicable to all Federal funds, while others relate specifically to 
the budgetary treatment of the Indian tribal funds. No single criterion 
is conclusive. In addition, the relevant considerations are mixed for 
many Indian tribal funds, so the classification must be based on the 
preponderant weight of the considerations. The guiding rule is that 
unless the preponderance of the relevant considerations indicates that a 
tribe owns a fund's assets, it will continue to be included in the 
Federal budget. In making these decisions, it is imperative to 
distinguish between valid legal obligations and moral commitments. A 
trust fund could be established as payment for settlement of a valid 
legal claim for damages, in which case the funds would belong to the 
tribe and the trust fund should be classified as a non-budgetary deposit 
fund. Alternatively, a trust fund could be created as a result of a 
commitment by the Government to improve the social well-being of a 
tribe, but the tribe would have no claim against the Government if the 
Government did not fund the trust fund. In that case, the trust fund 
should be included in the Federal budget.

Characteristics indicating tribal ownership (non-budgetary):
    The assets consist of funds that the tribe has voluntarily 
          deposited in the Treasury and requested that the Government 
          manage.
    The income comes from royalties earned on natural resources 
          or businesses that are owned by the tribe.
    Legislation specifies that a tribe owns the assets.
    The assets derive from payment for settlement of a legally 
          enforceable claim i.e. ``a final judgement, award, or 
          compromise settlement under the provisions of title 31, United 
          States Code, Section 1304.''
    Legislation allows a tribe to sue for damages if the 
          Government reneges on the terms of an agreement between the 
          tribe and the Government.
    The tribe makes the fundamental decisions about how the 
          assets are spent or invested, with the stipulation that if the 
          tribe decides to invest in non-Treasury securities, it must 
          waive the Government's liability.
    The tribe can pledge the assets or income as collateral for 
          loans.
    Private creditors can place liens on the assets or income.
    The terms of the agreement cannot be changed without the 
          prior consent of the tribe.
    The assets are distributed automatically to the tribe or to 
          individual Indians.
    The amount to be paid to the tribe depends on the amount of 
          assets in the fund (i.e., the Government does not guarantee a 
          certain benefit amount).
    The settlement requires that the Government make a specific 
          dollar payment to the tribe (non-budgetary) as opposed to 
          requiring that the Government provide specific services for 
          the tribe's benefit (budgetary).

Characteristics indicating governmental ownership (budgetary):
    Use of the assets is subject to future appropriation.
    The Secretary of the Interior, or some other Government 
          official, makes the fundamental decisions about the use of the 
          assets.
    The Government can unilaterally change the terms of the 
          agreement.
    The Government can unilaterally withdraw or reallocate the 
          assets to another purpose.
    The statute of limitations for filing a claim against the 
          Government has expired, eliminating the tribe's ability to 
          bring a takings suit against the Government.
    The assets revert to the Government if they are not all 
          spent.
    The settlement agreement requires the Government to provide 
          specific services for the tribe's benefit (budgetary), as 
          opposed to requiring the Government to make a specific dollar 
          payment to the tribe (non-budgetary).
  The review conducted by OMB and Interior of the Indian tribal funds 
indicated that two general types of funds should be reclassified as non-
budgetary: those funded from revenues generated by tribe-owned natural 
resources and those funded by judgments against the United States 
Government. The third general category, those derived from legislative 
acts and for fulfilling Government obligations to tribes, included some 
funds that should be reclassified as non-budgetary, and others that 
should remain in the budget. These reclassifications became effective 
October 1, 1999. OMB and Interior were not able to complete their review 
of the Indian tribal funds before this date and will review the 
remainder later this year. A description of the general categories of 
Indian tribal funds and their proposed treatment follows.

  Funds with assets derived from tribe-owned natural resources New 
treatment: Non-budgetary fiduciary funds.
  As shown in Table 15-3, an estimated $240 million in 631 Indian tribal 
funds with assets derived from tribe-owned natural resources were 
removed from the budget totals. These funds are owned by the tribes and 
are managed by the Government in a fiduciary capacity. Tribes hold 
beneficial title to the natural resources from which the income 
originates, and thus own the resulting income. Some leases require the 
royalties to be paid directly to one or more tribes or to individual

[[Page 350]]

Indians. In other cases, royalties are deposited in an Indian tribal 
fund. Sometimes the lessee makes a single payment to a suspense account 
(a type of deposit fund) for all three types of payments, and the 
Department of the Interior subsequently determines what amount should be 
paid to individuals, tribes, or an Indian tribal fund. At its 
discretion, and subject to tribal law and the Secretary of the 
Interior's fiduciary responsibilities, a tribe can withdraw its money 
from the Indian tribal fund or leave it in the fund, where it is 
invested by the Government.
  Prior to the reclassification, these transactions were treated 
differently for Federal budget purposes. Payments directly to individual 
Indians or tribes were not included in the budget, while payments to the 
Indian tribal funds were recorded in the budget as offsetting receipts. 
Payments to suspense accounts were excluded from the budget, but the 
eventual distributions of suspense account balances were recorded 
consistent with the above treatment of payments to individual Indians, 
tribes, and Indian tribal funds.
  There is no apparent substantive reason to treat payments to the 
Indian tribal funds differently from payments that are made directly to 
individual Indians or tribes, or that first pass through suspense 
accounts before going to individual Indians or tribes. The Government's 
role as trustee is primarily to ensure that the funds are distributed 
and managed correctly. The Government cannot take money from these funds 
to use for other purposes.

  Funds derived from judgments against the United States New treatment: 
Non-budgetary fiduciary funds.
  As shown in Table 15-3, approximately $1.3 billion in 700 Indian 
tribal funds derived from judgment awards were removed from the budget 
totals. These funds resulted from Indian Claims Commission awards or 
U.S. Court of Claims awards, and were paid out of the Federal Claims, 
Judgments, and Relief Act fund. Court decisions specify that these funds 
are payments for property damages. As such, the Government could not 
withdraw the funds and use them for other purposes without resurrecting 
the claim against the Government. This also appears to be true in cases 
where the settlement provides an endowment for a tribe and stipulates 
that only the earnings can be spent. The tribe, not the Government, owns 
the endowment, and the tribe receives the full benefit of earnings on 
the endowment. Congress can revise the use plans that the tribe 
develops, but it cannot change the judgment amount.
  These funds are deposited in an Indian tribal fund until a use plan is 
approved. The plan could require the money to be paid to individual 
Indian accounts or to the tribes, or the funds could be held in the 
Indian tribal fund until paid out for tribal activities specified in the 
plan. Subject to approval by the Department of the Interior, the tribes 
can withdraw and manage the funds themselves.

  Funds derived from legislative acts and for fulfilling Government 
obligations to tribes New treatment: Mixed Some non-budgetary fiduciary 
funds but others on-budget special funds.
  The funds in this category are diverse and the proposed budgetary 
treatment is mixed. Some funds were created as a result of legislative 
settlements, such as for water rights or land claims, and, like the 
previous category, should be considered non-budgetary. Others are 
composed of appropriated monies to make payments to tribes for public 
policy goals, such as infrastructure development. If these funds did not 
resolve a legal claim and were established in a manner that did not 
convey ownership of the assets to the tribe, they continue to be 
included in the budget. As shown in Table 15-3, $400 million of funds in 
this category were removed from the budget totals; $682 million remain 
in the budget.
  The funds that remain in the budget fall into a few broad categories. 
About $386 million were derived from Federal legislation that created a 
corpus (principal amount) and provided that only interest accruing on 
the corpus is available for obligation. Since tribes do not have access 
to the corpus, and the fund was not established to settle a valid legal 
claim against the Government, the question of ownership of the corpus is 
raised. The classification of these funds has not been determined, and 
OMB and Interior will review the legislation that established each of 
these funds to determine ownership of the corpus. If it is determined 
that the tribe owns the corpus, then the funds will be removed from the 
budget totals. Otherwise, the funds will remain in the budget.
  Another $178 million of the funds in this category are for legislative 
settlements for which certain conditions must be met before ownership 
transfers to the tribes. For example, tribes are sometimes required to 
execute a waiver of claims and appropriate releases that must be 
approved by the relevant Courts. Until these conditions are met, the 
funds are the property of the Federal Government and are included in the 
budget. After these conditions are met, the funds will be disbursed to 
the appropriate tribal fiduciary fund, which will be recorded as budget 
outlays.
  The balance of the funds included in the budget consist of the 
following: $58 million that has not been reviewed by OMB and Interior, 
$52 million to carry out Secretarial obligations under legislative 
settlements (e.g., to construct dams, deliver water, and pay penalties); 
$6 million earmarked for education grants; and $2 million for gifts and 
bequests.

  Change in Future Budgetary Transactions as a Result of Reclassifying 
Tribal Fiduciary Funds as Non-budgetary.--Excluding the transactions of 
the tribal fiduciary funds from the budget will have little effect on 
net Federal outlays in future years. As shown in Table 15-4, their 
removal is estimated to increase net outlays, and decrease the unified 
budget surplus, by approximately $40 million a year from 2000 to 2003.

[[Page 351]]

  Removing the tribal fiduciary funds from the budget changes net 
Federal outlays for future years in a number of ways. First, interest 
payments on Treasury securities held by these funds, which are recorded 
as intrabudgetary transactions through FY 1999, are recorded as 
disbursements to the public beginning in FY 2000. Second, offsetting 
receipts from the public are lowered by the royalties and other income 
derived from tribe-owned natural resources. Third, the budget no longer 
records the disbursement of these royalties and income from the 
Government to the tribes. This reduces disbursements by the same amount 
as offsetting receipts, but not necessarily in the same years.
  Removing the Indian tribal funds from the budget also shifts the 
timing of disbursements to the public resulting from Federal payments to 
Indian tribes for judgments and settlements. In fiscal year 1999 and 
prior years, these payments were not recorded as outlays to the public 
until the funds were disbursed to the tribes. Beginning in FY 2000, the 
payments are recorded as outlays to the public when the funds are paid 
to the tribal fiduciary funds.

  Improvements to Federal Budgeting.--The reclassification of the Indian 
tribal funds is expected to improve Federal budgeting in three ways. 
First, as previously mentioned, it will treat them in a manner 
consistent with the budget concepts that are applied to other funds held 
by the Government. Second, the budget will record costs in the 
appropriate period the year that financial resources are transferred 
from the Government to a tribe so that decision makers will take the 
cost into account at the time that decisions are made. Flows into and 
out of the tribal fiduciary funds will not be included in the budget and 
therefore will not affect new resource allocation decisions by the 
Government. Third, the tribal fiduciary funds will not be subject to 
budgetary controls and constraints that are applied to funds that belong 
to the Government.

                                     

              Table 15-4.  OUTLAY IMPACT OF RECLASSIFYING INDIAN TRIBAL FUNDS AS NON-BUDGETARY \1\
                                            (In millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                       1999     2000     2001     2002     2003
----------------------------------------------------------------------------------------------------------------
Pre-2000 treatment of tribal trust funds:
  Offsetting receipts from the public..............................      324      334      338      342      346
  Disbursement to the public.......................................      331      405      409      413      417
                                                                    --------------------------------------------
  Outlays, prior treatment.........................................        7       71       71       71       71

Effect of reclassifying tribal fiduciary funds as (non-budgetary):
  Offsetting receipts from the public..............................  .......     -278     -278     -279     -279
  Disbursement to the public.......................................  .......     -237     -238     -238     -238
                                                                    --------------------------------------------
  Net impact of reclassification on outlays........................  .......       41       40       41       41

Revised treatment of Indian tribal funds:
  Offsetting receipts from the public..............................      324       56       60       63       67
  Disbursement to the public.......................................      331      168      171      175      179
                                                                    --------------------------------------------
  Outlays, revised treatment.......................................        7      112      111      112      112
----------------------------------------------------------------------------------------------------------------
\1\ Does not include intrabudgetary transactions.


[[Page 352]]


                                              Table 15-5.  INCOME, OUTGO, AND BALANCES OF MAJOR TRUST FUNDS
                                                                (In billions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Estimate
                                                                          1999   -----------------------------------------------------------------------
                                                                        actual       2000        2001        2002        2003        2004        2005
--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Airport and Airway Trust Fund
Balance, start of year..............................................       9.4        12.4        13.3        14.1        15.7        17.5        19.4
Income:
  Governmental receipts.............................................      10.4         9.2        10.6        12.0        12.6        13.4        14.1
  Proprietary receipts..............................................       *           *           *           *           *           *           *
  Receipts from Federal funds:
    Interest........................................................       0.7         0.8         0.8         0.8         0.9         1.0         1.1
    Other...........................................................       *           0.1         0.1         0.1         0.1         0.1         0.1
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      11.1        10.1        11.6        13.0        13.7        14.5        15.4
Outgo:
  To the public.....................................................       8.1         9.3        10.8        11.4        11.9        12.6        13.3
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       8.1         9.3        10.8        11.4        11.9        12.6        13.3
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       2.3         0.1         0.0         0.8         0.9         0.9         1.0
    Interest........................................................       0.7         0.8         0.8         0.8         0.9         1.0         1.1
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       3.0         0.9         0.8         1.6         1.8         1.9         2.1
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................       *          -*      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       3.0         0.9         0.8         1.6         1.8         1.9         2.1
                                                                     ===================================================================================
Balance, end of year................................................      12.4        13.3        14.1        15.7        17.5        19.4        21.5

               Federal Employees Health Benefits Fund
Balance, start of year..............................................       6.2         5.8         5.6         5.4         5.2         4.9         4.6
Income:
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       4.9         5.3         5.7         6.1         6.4         6.8         7.2
  Receipts from Federal funds:
    Interest........................................................       0.4         0.3         0.3         0.3         0.3         0.3         0.2
    Other...........................................................      12.8        14.2        15.0        16.2        17.7        19.3        20.9
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      18.0        19.8        21.0        22.6        24.4        26.3        28.3
Outgo:
  To the public.....................................................      18.5        20.0        21.1        22.8        24.7        26.7        28.7
  Payments to Other funds...........................................      -*      ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      18.5        20.0        21.1        22.8        24.7        26.7        28.7
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................      -0.8        -0.5        -0.4        -0.5        -0.5        -0.6        -0.6
    Interest........................................................       0.4         0.3         0.3         0.3         0.3         0.3         0.2
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      -0.4        -0.2        -0.1        -0.3        -0.2        -0.4        -0.4
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -0.4        -0.2        -0.1        -0.3        -0.2        -0.4        -0.4
                                                                     ===================================================================================
Balance, end of year................................................       5.8         5.6         5.4         5.2         4.9         4.6         4.2

             Federal Civilian Employees Retirement Funds
Balance, start of year..............................................     460.6       491.9       523.0       553.1       582.7       611.5       639.1
Income:
  Governmental receipts.............................................       4.5         4.3         3.9         3.6         3.4         3.2         3.1
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:
    Interest........................................................      34.3        35.9        36.6        37.7        38.9        39.9        40.8
    Other...........................................................      36.9        37.0        37.8        38.8        39.4        40.4        41.5

[[Page 353]]


  Receipts from Trust funds.........................................  ..........       *           *           *           *           *           *
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      75.7        77.2        78.3        80.1        81.7        83.5        85.3
Outgo:
  To the public.....................................................      44.5        46.0        48.2        50.5        52.9        55.9        59.1
  Payments to Other funds...........................................  ..........       *           *           *           *           *           *
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      44.5        46.0        48.2        50.5        52.9        56.0        59.1
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................      -3.1        -4.8        -6.4        -8.1       -10.1       -12.3       -14.5
    Interest........................................................      34.3        35.9        36.6        37.7        38.9        39.9        40.8
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      31.2        31.1        30.1        29.6        28.8        27.6        26.3
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      31.2        31.1        30.1        29.6        28.8        27.6        26.3
                                                                     ===================================================================================
Balance, end of year................................................     491.9       523.0       553.1       582.7       611.5       639.1       665.3

   Federal Old-Age, Survivors and Disability Insurance Trust Funds
Balance, start of year..............................................     730.3       855.0      1004.3      1164.4      1337.8      1522.3      1717.0
Income:
  Governmental receipts.............................................     444.5       476.8       499.9       522.2       544.2       566.7       598.6
  Proprietary receipts..............................................       *           0.1         0.1         0.1         0.1         0.1         0.1
  Receipts from Federal funds:
    Interest........................................................      52.1        59.7        68.1        77.6        87.9        98.8       110.5
    Other...........................................................      20.7        21.9        21.5        22.6        23.8        25.3        27.1
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................     517.3       558.4       589.6       622.5       656.1       690.9       736.2
Outgo:
  To the public.....................................................     388.4       405.0       424.5       445.2       467.5       492.1       518.8
  Payments to Other funds...........................................       4.1         4.0         5.1         4.0         4.0         4.1         4.1
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     392.6       409.0       429.5       449.2       471.5       496.1       522.8
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................      72.6        89.7        91.9        95.7        96.6        95.9       102.9
    Interest........................................................      52.1        59.7        68.1        77.6        87.9        98.8       110.5
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................     124.7       149.3       160.1       173.3       184.5       194.8       213.4
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*      ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................     124.7       149.3       160.1       173.3       184.5       194.8       213.4
                                                                     ===================================================================================
Balance, end of year................................................     855.0      1004.3      1164.4      1337.8      1522.3      1717.0      1930.4

                  Foreign Military Sales Trust Fund
Balance, start of year..............................................       6.0         5.5         5.5         5.5         5.5         5.5         5.5
Income:
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................      11.6        10.6        10.8        10.9        10.9        11.0        11.2
  Receipts from Federal funds:
    Interest........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other...........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      11.6        10.6        10.8        10.9        10.9        11.0        11.2
Outgo:
  To the public.....................................................      12.2        10.6        10.8        10.9        10.9        11.0        11.2
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      12.2        10.6        10.8        10.9        10.9        11.0        11.2

[[Page 354]]


Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................      -0.5    ..........  ..........  ..........  ..........  ..........  ..........
    Interest........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      -0.5    ..........  ..........  ..........  ..........  ..........  ..........
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -0.5    ..........  ..........  ..........  ..........  ..........  ..........
                                                                     ===================================================================================
Balance, end of year................................................       5.5         5.5         5.5         5.5         5.5         5.5         5.5

                       Highway Trust Fund \1\
Balance, start of year..............................................      18.6        29.0        31.4        32.3        33.0        34.1        36.1
Income:
  Governmental receipts.............................................      39.3        34.3        35.1        36.0        36.3        36.9        37.7
  Proprietary receipts..............................................       0.1         0.1         0.1         0.1         0.1         0.1         0.1
  Receipts from Federal funds:
    Interest........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other...........................................................       *           *           *           *           *           *           *
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, Income..............................................      39.4        34.4        35.3        36.1        36.4        37.0        37.8
Outgo:
  To the public.....................................................      29.0        32.0        34.5        35.4        35.2        35.1        35.2
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, Outgo...............................................      29.0        32.0        34.5        35.4        35.2        35.1        35.2
Change in fund balance:
  Surplus or deficit:...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Excluding interest..............................................      10.4         2.5         0.8         0.7         1.2         2.0         2.6
    Interest........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit..................................      10.4         2.5         0.8         0.7         1.2         2.0         2.6
  Adjustments:
    Transfers/lapses (net)..........................................       *      ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*          -*           *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, Change in fund balance...................................      10.4         2.5         0.8         0.7         1.2         2.0         2.6
                                                                     ===================================================================================
Balance, End of Year................................................      29.0        31.4        32.3        33.0        34.1        36.1        38.7

        Medicare: Federal Hospital Insurance (HI) Trust Fund
Balance, start of year..............................................     116.9       138.4       163.4       201.3       240.1       271.3       302.1
Income:
  Governmental receipts.............................................     132.3       136.6       143.8       150.4       156.8       163.4       172.7
  Proprietary receipts..............................................       1.4         1.4         1.4         1.8         2.0         2.2         2.5
  Receipts from Federal funds:
    Interest........................................................       9.3        11.0        12.5        14.9        16.9        18.2        19.5
    Solvency transfer...............................................  ..........  ..........      15.4        12.6    ..........  ..........  ..........
    Other...........................................................      10.0        10.6        10.4        10.8        11.5        12.1        12.8
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................     153.0       159.6       183.5       190.5       187.2       195.9       207.5
Outgo:
  To the public.....................................................     131.5       134.6       145.7       151.7       155.9       165.1       176.7
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................     131.5       134.6       145.7       151.7       155.9       165.1       176.7
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................      12.2        14.0        25.3        23.9        14.4        12.6        11.3
    Interest........................................................       9.3        11.0        12.5        14.9        16.9        18.2        19.5
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      21.5        25.0        37.8        38.8        31.2        30.8        30.7
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........

[[Page 355]]


    Other adjustments...............................................      -*          -*      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      21.5        25.0        37.8        38.8        31.2        30.8        30.7
                                                                     ===================================================================================
Balance, end of year................................................     138.4       163.4       201.3       240.1       271.3       302.1       332.8

 Medicare: Federal Supplementary Medical Insurance (SMI) Trust Fund
Balance, start of year..............................................      40.9        45.6        44.5        40.7        39.4        40.8        40.2
Income:
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................      20.2        20.4        21.7        23.8        33.8        39.1        44.3
  Receipts from Federal funds:
    Interest........................................................       2.9         3.1         2.9         2.8         2.8         2.7         2.7
    Other...........................................................      62.4        67.8        72.9        77.7        87.7        98.8       107.6
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      85.5        91.2        97.5       104.4       124.3       140.7       154.7
Outgo:
  To the public.....................................................      80.7        92.4       101.3       105.7       122.9       141.3       156.8
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      80.7        92.4       101.3       105.7       122.9       141.3       156.8
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       1.8        -4.2        -6.7        -4.1        -1.3        -3.3        -4.8
    Interest........................................................       2.9         3.1         2.9         2.8         2.8         2.7         2.7
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       4.8        -1.2        -3.8        -1.3         1.4        -0.6        -2.1
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........       *      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       4.8        -1.2        -3.8        -1.3         1.4        -0.6        -2.1
                                                                     ===================================================================================
Balance, end of year................................................      45.6        44.5        40.7        39.4        40.8        40.2        38.1

                      Military Retirement Fund
Balance, start of year..............................................     145.5       151.9       158.5       164.9       171.6       178.6       185.9
Income:
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:
    Interest........................................................      12.6        12.8        13.0        13.3        13.5        13.8        14.0
    Other...........................................................      25.7        26.8        27.3        28.3        29.3        30.4        31.4
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      38.2        39.5        40.4        41.6        42.8        44.1        45.5
Outgo:
  To the public.....................................................      31.9        32.9        33.9        34.9        35.8        36.8        37.8
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      31.9        32.9        33.9        34.9        35.8        36.8        37.8
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................      -6.2        -6.2        -6.6        -6.5        -6.5        -6.5        -6.4
    Interest........................................................      12.6        12.8        13.0        13.3        13.5        13.8        14.0
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       6.3         6.6         6.4         6.7         7.0         7.3         7.7
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........       *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       6.3         6.6         6.4         6.7         7.0         7.3         7.7
                                                                     ===================================================================================
Balance, end of year................................................     151.9       158.5       164.9       171.6       178.6       185.9       193.6

                   Railroad Retirement Trust Funds
Balance, start of year..............................................      13.9        14.3        15.3        16.1        17.1        18.2        19.2

[[Page 356]]


Income:
  Governmental receipts.............................................       4.1         4.3         4.3         4.4         4.5         4.5         4.6
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:
    Interest........................................................       0.3         1.1         1.1         1.2         1.3         1.3         1.4
    Other...........................................................       0.5         0.4         0.3         0.3         0.3         0.4         0.4
  Receipts from Trust funds.........................................       3.8         3.8         3.6         3.7         3.8         3.8         3.8
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       8.8         9.5         9.4         9.7         9.8        10.0        10.1
Outgo:
  To the public.....................................................       8.2         8.2         8.3         8.4         8.5         8.7         8.8
  Payments to Other funds...........................................       0.2         0.2         0.2         0.2         0.2         0.2         0.2
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       8.4         8.5         8.6         8.7         8.8         8.9         9.1
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       0.1        -0.1        -0.3        -0.2        -0.2        -0.3        -0.3
    Interest........................................................       0.3         1.1         1.1         1.2         1.3         1.3         1.4
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.4         1.0         0.8         1.0         1.0         1.1         1.1
  Adjustments:
    Transfers/lapses (net)..........................................       *           *           *      ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........       *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.4         1.0         0.9         1.0         1.0         1.1         1.1
                                                                     ===================================================================================
Balance, end of year................................................      14.3        15.3        16.1        17.1        18.2        19.2        20.3

                       Unemployment Trust Fund
Balance, start of year..............................................      71.0        77.7        85.9        93.6        98.9       102.4       105.4
Income:
  Governmental receipts.............................................      26.5        28.2        30.3        31.6        32.8        33.7        36.5
  Proprietary receipts..............................................       *           *           *           *           *           *           *
  Receipts from Federal funds:
    Interest........................................................       4.8         4.9         5.3         5.6         5.8         5.9         6.1
    Other...........................................................       0.4         0.4         0.5         0.5         0.5         0.5         0.6
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      31.7        33.5        36.0        37.8        39.2        40.1        43.1
Outgo:
  To the public.....................................................      24.9        25.4        28.2        32.4        35.7        37.1        38.4
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................      24.9        25.4        28.2        32.4        35.7        37.1        38.4
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       1.9         3.2         2.5        -0.3        -2.4        -2.9        -1.3
    Interest........................................................       4.8         4.9         5.3         5.6         5.8         5.9         6.1
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       6.7         8.2         7.8         5.3         3.4         3.0         4.7
  Adjustments:
    Transfers/lapses (net)..........................................      -*          -*          -*      ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       6.7         8.2         7.8         5.3         3.4         3.0         4.7
                                                                     ===================================================================================
Balance, end of year................................................      77.7        85.9        93.6        98.9       102.4       105.4       110.1

                 Veterans Life Insurance Trust Funds
Balance, start of year..............................................      13.7        13.7        13.6        13.4        13.1        12.7        12.3
Income:
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       0.8         0.8         0.8         0.7         0.7         0.7         0.6
  Receipts from Federal funds:
    Interest........................................................       1.1         1.1         1.0         1.0         0.9         0.9         0.9
    Other...........................................................       *           *           *           *           *           *           *
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------

[[Page 357]]


      Subtotal, income..............................................       1.9         1.8         1.8         1.7         1.6         1.6         1.5
Outgo:
  To the public.....................................................       1.9         2.0         2.0         2.0         2.0         2.0         1.9
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       1.9         2.0         2.0         2.0         2.0         2.0         1.9
Change in fund balance:
  Surplus or deficit (-):...........................................
    Excluding interest..............................................      -1.1        -1.2        -1.2        -1.3        -1.3        -1.3        -1.3
    Interest........................................................       1.1         1.1         1.0         1.0         0.9         0.9         0.9
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................      -*          -0.1        -0.2        -0.3        -0.4        -0.4        -0.5
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*          -*           *      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................      -*          -0.1        -0.2        -0.3        -0.4        -0.4        -0.5
                                                                     ===================================================================================
Balance, end of year................................................      13.7        13.6        13.4        13.1        12.7        12.3        11.9

                        Other Trust Funds \2\
Balance, start of year..............................................      30.1        34.5        35.5        35.9        38.4        40.9        43.3
Income:
  Governmental receipts.............................................       2.6         3.1         4.0         4.0         4.0         4.1         4.1
  Proprietary receipts..............................................       7.0         3.5         3.4         3.0         3.0         3.1         3.2
  Receipts from Federal funds:
    Interest........................................................       2.0         2.2         2.2         1.9         2.0         2.0         2.1
    Other...........................................................       1.6         2.0         3.1         2.7         2.7         2.8         2.9
  Receipts from Trust funds.........................................
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................      13.2        10.8        12.8        11.5        11.8        12.0        12.2
Outgo:
  To the public.....................................................       8.0         9.1         8.3         8.4         8.7         9.0         9.2
  Payments to Other funds...........................................       0.5         0.6         3.8         0.6         0.6         0.6         0.7
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       8.5         9.6        12.1         9.0         9.3         9.6         9.9
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       2.6        -1.0        -1.5         0.6         0.5         0.4         0.3
    Interest........................................................       2.0         2.2         2.2         1.9         2.0         2.0         2.1
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       4.6         1.2         0.7         2.5         2.5         2.4         2.4
  Adjustments:
    Transfers/lapses (net)..........................................      -*          -0.1        -0.3    ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........      -*          -*      ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       4.6         1.1         0.4         2.5         2.5         2.4         2.4
                                                                     ===================================================================================
Balance, end of year................................................      34.8        35.5        35.9        38.4        40.9        43.3        45.7
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million.

Note: Balances shown include committed and uncommitted cash balances.

\1\ Figures reflect two legislative changes to the Highway Trust Fund as per the Transportation Equity Act for the 21st Century (TEA-21): no
  accumulation of interest earnings on fund balances beginning in 1999 and transfer of $8.2 billion in highway account cash balances to the General
  fund.

\2\ The difference between 1999 end of year balance and 2000 start of year balance is due to the removal of most tribal trust funds from the budget
  totals. See the discussion regarding changes in the budget classification of tribal trust funds in this chapter for additional information.


[[Page 358]]

                                     

                                           Table 15-6.  INCOME, OUTGO, AND BALANCES OF SELECTED FEDERAL FUNDS
                                                                (In billions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Estimate
                                                                          1999   -----------------------------------------------------------------------
                                                                        actual       2000        2001        2002        2003        2004        2005
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   Abandoned Mine Reclamation Fund
Balance, start of year..............................................       1.6         1.7         1.8         1.9         2.0         2.1         2.3
Income:
  Governmental receipts.............................................       0.3         0.3         0.3         0.3         0.3         0.3         0.3
  Proprietary receipts..............................................       *           *           *           *           *           *           *
  Receipts from Federal funds:
    Interest........................................................       0.1         0.1         0.1         0.1         0.1         0.1         0.1
    Other...........................................................       *      ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       0.4         0.4         0.4         0.4         0.4         0.4         0.4
Outgo:
  To the public.....................................................       0.3         0.3         0.3         0.2         0.2         0.3         0.3
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       0.3         0.3         0.3         0.2         0.2         0.3         0.3
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       *          -*          -*           *           0.1         *           *
    Interest........................................................       0.1         0.1         0.1         0.1         0.1         0.1         0.1
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.1         0.1         0.1         0.1         0.2         0.1         0.1
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................      -*      ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.1         0.1         0.1         0.1         0.2         0.1         0.1
                                                                     ===================================================================================
Balance, end of year................................................       1.7         1.8         1.9         2.0         2.1         2.3         2.4

                     Nuclear Waste Disposal Fund
Balance, start of year..............................................       7.3         7.9         9.1        10.1        10.9        11.7        12.5
Income:
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       0.7         0.7         0.6         0.6         0.6         0.5         0.5
  Receipts from Federal funds:
    Interest........................................................       0.1         0.7         0.8         0.9         0.9         1.0         0.9
    Other...........................................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       0.8         1.4         1.3         1.4         1.5         1.5         1.5
Outgo:
  To the public.....................................................       0.2         0.2         0.3         0.7         0.7         0.7         0.7
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       0.2         0.2         0.3         0.7         0.7         0.7         0.7
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       0.5         0.5         0.2        -0.1        -0.1        -0.2        -0.2
    Interest........................................................       0.1         0.7         0.8         0.9         0.9         1.0         0.9
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.6         1.2         1.0         0.7         0.8         0.8         0.7
  Adjustments:
    Transfers/lapses (net)..........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................       *      ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.6         1.2         1.0         0.7         0.8         0.8         0.7
                                                                     ===================================================================================
Balance, end of year................................................       7.9         9.1        10.1        10.9        11.7        12.5        13.2

               Overseas Private Investment Corporation
Balance, start of year..............................................       2.8         3.0         3.2         3.4         3.7         4.0         4.3
Income:
  Governmental receipts.............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Proprietary receipts..............................................       0.1         0.1         0.1         0.1         0.1         0.1         0.1

[[Page 359]]


  Receipts from Federal funds:
    Interest........................................................       0.2         0.2         0.2         0.2         0.2         0.3         0.3
    Other...........................................................       *           *           *           *           *           *           *
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       0.3         0.3         0.3         0.3         0.4         0.4         0.4
Outgo:
  To the public.....................................................       0.1         0.2         0.1         0.1         0.1         0.1         0.1
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       0.1         0.2         0.1         0.1         0.1         0.1         0.1
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       0.1        -*           *          -0.1        -*          -*          -*
    Interest........................................................       0.2         0.2         0.2         0.3         0.3         0.3         0.3
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.3         0.2         0.3         0.3         0.3         0.3         0.3
  Adjustments:
    Transfers/lapses (net)..........................................      -*          -*          -*      ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.2         0.2         0.2         0.3         0.3         0.3         0.3
                                                                     ===================================================================================
Balance, end of year................................................       3.0         3.2         3.4         3.7         4.0         4.3         4.6

     Uranium Enrichment Decontamination and Decommissioning Fund
Balance, start of year..............................................       1.3         1.7         2.1         2.4         2.8         3.2         3.6
Income:
  Governmental receipts.............................................       0.2         0.2         0.2         0.2         0.2         0.2         0.2
  Proprietary receipts..............................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
  Receipts from Federal funds:
    Interest........................................................       *           *           0.1         0.1         0.1         0.1         0.1
    Other...........................................................       0.4         0.4         0.4         0.4         0.4         0.4         0.4
  Receipts from Trust funds.........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, income..............................................       0.6         0.6         0.7         0.7         0.7         0.7         0.7
Outgo:
  To the public.....................................................       0.2         0.2         0.3         0.3         0.3         0.3         0.3
  Payments to Other funds...........................................  ..........  ..........  ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
      Subtotal, outgo...............................................       0.2         0.2         0.3         0.3         0.3         0.3         0.3
Change in fund balance:
  Surplus or deficit (-):
    Excluding interest..............................................       0.3         0.4         0.3         0.3         0.3         0.3         0.3
    Interest........................................................       *           *           0.1         0.1         0.1         0.1         0.1
                                                                     -----------------------------------------------------------------------------------
      Subtotal, surplus or deficit (-)..............................       0.4         0.4         0.4         0.4         0.4         0.4         0.4
  Adjustments:
    Transfers/lapses (net)..........................................  ..........      -*      ..........  ..........  ..........  ..........  ..........
    Other adjustments...............................................  ..........       *      ..........  ..........  ..........  ..........  ..........
                                                                     -----------------------------------------------------------------------------------
    Total, change in fund balance...................................       0.4         0.4         0.4         0.4         0.4         0.4         0.4
                                                                     ===================================================================================
Balance, end of year................................................       1.7         2.1         2.4         2.8         3.2         3.6         4.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million.

Note: Balances shown include committed and uncommitted cash balances.

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