[Analytical Perspectives]
[Federal Receipts and Collections]
[4. User Fees and Other Collections]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 93]]

 
                   4. USER FEES AND OTHER COLLECTIONS

   In addition to collecting taxes and other receipts by the exercise of 
its sovereign powers, which is discussed in the previous chapter, the 
Federal Government collects income from the public from market-oriented 
activities. Examples of these collections include the sale of postage 
stamps and electricity, fees for admittance to national parks, premiums 
for deposit insurance, and rents and royalties for the right to extract 
oil from the Outer Continental shelf.
   Depending on the laws that authorize the collections, they can be 
credited directly to expenditure accounts as ``offsetting collections,'' 
where they are usually available for expenditure without further action 
by Congress, or they are credited to receipt accounts as ``offsetting 
receipts,'' which may be appropriated to expenditure accounts through 
action by the Congress. The budget refers to them as offsetting 
collections and offsetting receipts, because they are subtracted from 
gross outlays rather than added to taxes on the receipts side of the 
budget. The purpose of this treatment is to produce budget totals for 
receipts, outlays, and budget authority in terms of the amount of 
resources allocated governmentally, through collective political choice, 
rather than through the market. \1\
---------------------------------------------------------------------------
  \1\ Showing collections from business-type transactions as offsets on 
the spending side of the budget follows the concept recommended by the 
1967 Report of the President's Commission on Budget Concepts. The 
concept is discussed in Chapter 24: ``Budget System and Concepts and 
Glossary'' in this volume.
---------------------------------------------------------------------------
   Offsetting collections and receipts include most user fees, which are 
discussed below, as well as some amounts that are not user fees. Table 
4-1 summarizes these transactions. For 2001, total offsetting 
collections and receipts from the public are estimated to be $214.8 
billion, and total user fees are estimated to be $148.6 billion.
   The following section discusses user fees and the Administration's 
user fee proposals. The subsequent section displays more information on 
offsetting collections and receipts. The offsetting collections and 
receipts by agency are also displayed in Table 20-1, ``Outlays to the 
Public, Net and Gross,'' which appears in Chapter 20 of this volume.

  TABLE 4-1. GROSS OUTLAYS, USER FEES, OTHER OFFSETTING COLLECTIONS AND
                RECEIPTS FROM THE PUBLIC, AND NET OUTLAYS
                        (In billions of dollars)
------------------------------------------------------------------------
                                                           Estimate
                                             Actual  -------------------
                                              1999      2000      2001
------------------------------------------------------------------------
Gross outlays.............................   1,910.3   2,001.6   2,049.8
  Offsetting collections and receipts from
   the public:
    User fees \1\.........................     137.0     137.6     147.2
    Other.................................      70.3      74.4      67.6
                                           -----------------------------
      Subtotal, offsetting collections and     207.3     212.0     214.8
       receipts from the public...........
                                           -----------------------------
Net outlays...............................   1,703.0   1,789.6   1,835.0
------------------------------------------------------------------------
\1\ Total user fees are shown below. They include user fees that are
  classified on the receipts side of the budget in addition to the
  amounts shown on this line. For additional details of total user fees,
  see Table 4-2. ``Total User Fee Collections.''







Total user fees:
  Offsetting collections and            137.0        137.6        147.2
   receipts from the public......
  Receipts.......................         1.0          1.1          1.5
                                  --------------------------------------
Total user fees..................       138.0        138.7        148.6


                                USER FEES

                     I.   Introduction and Background

   The Federal Government may charge user fees to those who benefit 
directly from a particular activity or those subject to regulation. 
According to the definition of user fees used in this chapter, Table 4-2 
shows that user fees were $138.0 billion in 1999, and are estimated to 
increase to $138.7 billion in 2000 and to $148.6 billion in 2001, 
growing to an estimated $176.4 billion in 2005, including the user fee 
proposals proposed in this budget, which are shown in Table 4-3. This 
table shows that the Administration is proposing to increase user fees 
by an estimated $3.8 billion in 2001, growing to an estimated $7.7 
billion in 2005.
------------------------------------------------------------------------

                                                                     Why User Fees?



      The term ``user fee'' refers to Government charges to those who use a Government good or service or are subject to Government regulation.
              For example:
               --Park entrance fees charged to visitors to national parks
               --Meat, poultry, and egg inspection fees
               --Tennessee Valley Authority proceeds from power sales
               --Proceeds from the lease of federally-owned buildings and facilities
               --Flood insurance premiums
               --Sales of commemorative coins

      User fees are earmarked to fund part or all of the cost of providing the service or regulation by crediting them to a program account
              instead of to the general fund of the Treasury.

     User fees are different from general revenue, because they are not collected from the general public or broad segments of the public (e.g.,
              income taxes or customs duties) and they are not used for the general purposes of government (e.g., national defense).

     Users are more willing to support and pay fees when they are dedicated to maintaining or improving the quality of the programs that affect
              them directly.

     Government program managers may be more diligent about collecting and spending fees when funding for their programs depends on fees,
              instead of appropriations of general taxpayer money.

     Administration policy is to shift to user fee funding wherever appropriate. However, essential government services will continue to be
              supported by general fund appropriations from the Treasury as necessary.

     The Administration's user fee proposals generally require authorizing legislation to authorize the fees first and appropriations action
              before the fees can actually be collected and spent. This is done to preserve the traditional roles of the authorizing and appropriations
              committees in Congress and to conform to the ``scoring'' conventions of the Budget Enforcement Act.


------------------------------------------------------------------------

  Definition. The term ``user fee'' as defined here is fees, charges, 
and assessments levied on a class directly benefiting from, or subject 
to regulation by, a government program or activity, and to be utilized 
solely to support the program or activity. In addition, the payers of 
the fee must be limited to those benefiting from, or subject to 
regulation by, the program or activity, and may not include the general 
public or a broad segment of the public. The user fee must be authorized 
for use only to fund the specified programs or activities for which it 
is charged, including directly associated agency functions, not for 
unrelated programs or activities and not for the broad purposes of the 
Government or an agency.

[[Page 94]]

    Examples of business-type or market-oriented user fees 
          include fees for the sale of postal services (the sale of 
          stamps), electricity (e.g., sales by the Tennessee Valley 
          Authority), payments for Medicare voluntary supplemental 
          medical insurance, life insurance premiums for veterans, 
          recreation fees for parks, NASA fees for shuttle services, the 
          sale of weather maps and related information by the Department 
          of Commerce, the sale of commemorative coins, and fees for the 
          sale of books.
    Examples of regulatory and licensing user fees include fees 
          for regulating the nuclear energy industry, bankruptcy filing 
          fees, immigration fees, food inspection fees, passport fees, 
          and patent and trademark fees.
   User fees do not include all offsetting collections and receipts, 
such as the interest and repayments received from credit programs; 
proceeds from the sale of loans and other financial investments; 
interest, dividends, and other earnings; cost sharing contributions; the 
sale of timber, minerals, oil, commodities, and other natural resources; 
proceeds from asset sales (property, plant, and equipment); Outer 
Continental Shelf receipts; or spectrum auction proceeds. Neither do 
they include earmarked taxes (such as taxes paid to social insurance 
programs or excise taxes), or customs duties, fines, penalties, and 
forfeitures.

  Alternative definitions. The definition used in this chapter is useful 
because it identifies goods, services, and regulations financed by 
earmarked collections and receipts. \2\ Other definitions may be used 
for other purposes, such as establishing policy for charging prices to 
the public for goods and services regardless of whether the proceeds are 
earmarked.
---------------------------------------------------------------------------
  \2\ The definition used here is similar to one the House of 
Representatives uses as a guide for purposes of committee jurisdiction. 
The definition helps differentiate between taxes, which are under the 
jurisdiction of the Ways and Means Committee, and fees, which can be 
under the jurisdiction of other committees. See the Congressional 
Record, January 3, 1991, p. H31, item 8.
---------------------------------------------------------------------------
   Alternative definitions could, for example:
    be narrower than the one used here, by excluding regulatory 
          fees and analyzing them as a separate category.
    be broader than the one used here, by:
     --eliminating the requirement that fees be earmarked. The 
         definition would then include fees that go to the general fund 
         in addition to those that are earmarked to finance the related 
         activity.
     --including the sale of resources as well as goods and services, 
         such as natural resources (e.g., timber, oil, or minerals) and 
         property, plant, and equipment.
     --interpreting more broadly whether a program has private 
         beneficiaries, or whether the proceeds are earmarked to benefit 
         directly those paying the fee. A broader interpretation might 
         include beneficiary- or liability-based excise taxes. \3\
---------------------------------------------------------------------------
  \3\ Beneficiary- and liability-based taxes are terms taken from the 
Congressional Budget Office, The Growth of Federal User Charges, August 
1993, and updated in October 1995. Examples of beneficiary-based taxes 
include taxes on gasoline, which finance grants to States for highway 
construction, or taxes on airline tickets, which finance air traffic 
control activities and airports. An example of a liability-based tax is 
the excise tax that helps fund the hazardous substance superfund in the 
Environmental Protection Agency. This tax is paid by industry groups to 
finance environmental cleanup activities related to the industry 
activity but not necessarily caused by the payer of the fee.
---------------------------------------------------------------------------

  What is the purpose of user fees? The purpose of user fees is to 
improve the efficiency and equity of certain Government activities, and 
to reduce the bur

[[Page 95]]

den on the taxpayer to finance activities whose benefits accrue to a 
relatively limited number of people.
    User fees that are set to cover the costs of production of 
          goods and services can provide efficiency in the allocation of 
          resources within the economy. They allocate goods and services 
          to those who value them the most, and they signal to the 
          government how much of the goods or services it should 
          provide. Prices in private, competitive markets serve the same 
          purposes.
    User fees for goods and services that do not have special 
          social benefits improve equity, or fairness, by requiring that 
          those who benefit from an activity are the same people who pay 
          for it. The public often perceives user fees as fair because 
          those who benefit from the good or service pay for it in whole 
          or in part, and those who do not benefit do not pay.

  When should the Government charge a fee? Discussions of whether to 
finance spending with a tax or a fee often focus on whether the benefits 
of the activity are to the public in general or to a limited group of 
people. As a general rule, if the benefits accrue to the public in 
general, then the program should be financed by taxes paid by the 
public; in contrast, if the benefits accrue to a limited number of 
private individuals or groups, then the program should be financed by 
fees paid by the private beneficiaries. For Federal programs where the 
benefits are entirely public or entirely private, applying this rule is 
relatively easy. For example, according to this rule, the benefits from 
national defense accrue to the public in general and should be (and are) 
financed by taxes. In contrast, the benefits of electricity sold by the 
Tennessee Valley Authority accrue exclusively to those using the 
electricity, and should be (and are) financed by user fees.
   In many cases, however, an activity has benefits that accrue to both 
public and to private groups, and it may be difficult to identify how 
much of the benefits accrue to each. Because of this, it can be 
difficult to know how much of the program should be financed by taxes 
and how much by fees. For example, the benefits from recreation areas 
are mixed. Fees for visitors to these areas are appropriate because the 
visitors benefit directly from their visit, but the public in general 
also benefits because these areas protect the Nation's natural and 
historical heritage now and for posterity.
   As a further complication, where a fee may be appropriate to finance 
all or part of an activity, some consideration must be given to the ease 
of administering the fee.

  What should be the amount of the fee? For programs that have private 
beneficiaries, the amount of the fee should depend on the costs of 
producing the goods or services and the portion of the program that is 
for private benefits. If the benefit is primarily private, and any 
public benefits are incidental, the Administration supports fees that 
cover the full cost to the Government, including both direct and 
indirect costs. \4\
---------------------------------------------------------------------------
  \4\ Policies for setting user charges are promulgated in OMB Circular 
No. A-25: ``User Charges'' (July 8, 1993). These policies are required 
regardless of whether or not the proceeds are earmarked to finance the 
related activity.
---------------------------------------------------------------------------
  The Administration is working to put cost accounting systems in place 
across the Government that would make the calculation of full cost more 
feasible. The difficulties in measuring full cost are associated in part 
with allocating to an activity the full costs of capital, retirement 
benefits, and insurance, as well as other Federal costs that may appear 
in other parts of the budget. Guidance in the Statement of Federal 
Financial Accounting Standards No. 4, Managerial Cost Accounting 
Concepts and Standards for the Federal Government (July 31, 1995), 
should underlie cost accounting in the Federal Government.

  Classification of user fees in the budget. As shown in Table 4-1, most 
user fees are classified as offsets to outlays on the spending side of 
the budget, but a few are classified on the receipts side of the budget. 
An estimated $1.5 billion in 2001 are classified this way and are 
included in the totals described in Chapter 3. ``Federal Receipts.'' 
They are classified as receipts because they are regulatory fees 
collected by the Federal Government by the exercise of its sovereign 
powers.
   The remaining user fees, an estimated $147.2 billion in 2001, are 
classified as offsetting collections and receipts on the spending side 
of the budget. Some of these are collected by the Federal Government by 
the exercise of its sovereign powers and would normally appear on the 
receipts side of the budget, but are required by law to be classified as 
offsetting collections or receipts.
    An estimated $107.0 billion of user fees for 2001 are 
          credited directly to expenditure accounts, and are generally 
          available for expenditure when they are collected, without 
          further action by the Congress.
    An estimated $40.1 billion for 2001 are deposited in 
          offsetting receipt accounts, and generally are not available 
          to be spent unless appropriated by the Congress each year.
   As a further classification, the following Tables 4-2 and 4-3 
identify the fees as discretionary or mandatory. These classifications 
are terms from the Budget Enforcement Act of 1990 as amended and are 
used frequently in the analysis of the budget. ``Discretionary'' in this 
chapter refers to fees generally controlled through annual 
appropriations acts and under the jurisdiction of the appropriations 
committees in the Congress. These fees offset discretionary spending 
under the discretionary caps. ``Mandatory'' refers to fees controlled by 
permanent laws and under the jurisdiction of the authorizing committees. 
These fees are subject to rules of paygo, whereby changes in law 
affecting mandatory programs and receipts cannot result in a net cost. 
Mandatory spending is sometimes referred to as direct spending.

[[Page 96]]

   These and other classifications are discussed further in this volume 
in Chapter 24, ``Budget System and Concepts and Glossary.''

                          II.   Current User Fees

   As shown in Table 4-2, ``Total User Fee Collections,'' total user fee 
collections (including those proposed in this budget) are estimated to 
be $148.6 billion in 2001, increasing to $176.4 billion in 2005. User 
fee collections by the Postal Service, Medicare premiums, and foreign 
military sales are the largest and are estimated to be more than two-
thirds of all existing user fee collections in 2001.
   User fee collections are used to offset outlays in both the 
discretionary and mandatory parts of the budget. Discretionary user fee 
collections are estimated to be $16.6 billion in 2001. The 
Administration is proposing to make collections from Federal Aviation 
Administration (FAA) cost-based user fees, the new harbor services fee, 
and proposed fees for the Federal Deposit Insurance Corporation 
available to offset discretionary spending.

                          III. User Fee Proposals

   The Administration is proposing the new or increased user fees shown 
in Table 4-3: ``User Fee Proposals.'' These proposals would increase 
user fee collections by an estimated $3.8 billion in 2001, increasing to 
$7.7 billion in 2005.

A.   User Fee Proposals to Offset Discretionary Spending

1.   Proposals for Discretionary User Fees

a.   Offsetting collections deposited in appropriation accounts

Department of Agriculture

  Food Safety and Inspection Service meat, poultry, and egg inspection 
fees.--This budget proposes a new user fee for the Food Safety and 
Inspection Service. Under the proposed fee the meat, poultry and egg 
industries would be required to reimburse the Federal government for the 
cost of the salaries and benefits and other direct costs for all in-
plant inspection. The proposal would transfer the cost of Federal 
inspection services to the industries that directly benefit, and would 
ensure that sufficient resources are available to provide the level of 
in-plant inspection necessary to meet the demands of industry. The cost 
of the user fee would amount to less than one cent per pound of meat 
inspected.
  Animal and Plant Health Inspection Service (APHIS).--The budget 
proposes to establish fees to cover the cost of providing animal welfare 
inspections to recipients of APHIS services such as animal research 
centers, humane societies, and kennels. Fees would also be established 
to cover the cost of issuing biotechnology certificates to firms that 
manufacture products derived through biotechnological innovation.
  Grain Inspection, Packers and Stockyards Administration (GIPSA) 
licensing fees.--The budget proposes to charge the grain industry for 
GIPSA's costs to review and maintain standards (such as grain quality 
and classification) that are used by the industry. In addition, an 
annual licensing fee is proposed to fund GIPSA activities that ensure 
the integrity of the livestock, meat and poultry market and marketplace, 
such as fostering open competition, and protecting consumers and 
businesses from unfair practices.

Department of Commerce

  National Oceanic and Atmospheric Administration (NOAA), navigational 
assistance fees.--The Administration proposes to levy a fee on U.S. and 
foreign commercial cargo carriers to recover the cost of navigational 
assistance services, such as nautical charting, provided by NOAA.
  Fisheries management fees.--The budget proposes to levy a fee to 
recover a portion of the costs of providing fisheries management and 
enforcement services.
Department of Health and Human Services

  Food and Drug Administration (FDA) fees.--The budget seeks $19 million 
in new fees to finance FDA activities for the review of new medical 
devices and food additives, and for food export certifications. These 
fees will be used to augment current funding for these activities.
  Health Care Financing Administration (HCFA).--These proposals would 
establish fees for a variety of activities associated with the Medicare 
program, including:
      Managed care application and renewal fees.--The Administration 
proposes to charge managed care organizations a fee to cover the cost of 
reviewing initial applications and renewing annual contracts with 
Medicare. Proceeds from this fee would be used to offset funding for 
Federal administrative expenses related to managed care organization 
applications and renewals.
      Provider initial certification fees.--The Administration proposes 
to levy a fee on providers (e.g., home health agencies and skilled 
nursing facilities) who wish to enter the Medicare program. The fee 
would vary by type of provider. Proceeds from this fee would be used to 
offset survey and certification funding.

[[Page 97]]



                                     Table 4-2.  TOTAL USER FEE COLLECTIONS
                                            (In millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                               Estimates
                                              1999   -----------------------------------------------------------
                                             actual     2000      2001      2002      2003      2004      2005
----------------------------------------------------------------------------------------------------------------
                 Receipts

Proposed FAA user fees to replace excise    ........  ........       965     1,866     1,999     2,030     2,030
 taxes \1\................................
Harbor maintenance and inland waterway           553       675  ........  ........  ........  ........  ........
 fees \2\.................................
Agricultural quarantine inspection fees...       172       188       215       217       220       223       225
Other governmental receipt user fees......       248       255       281       286       287       293       298
                                           ---------------------------------------------------------------------
   Subtotal, governmental receipts........       973     1,118     1,461     2,369     2,506     2,546     2,553

Offsetting Collections and Receipts from
 the Public

               Discretionary

  Department of Agriculture: Food safety         167       186       735       735       737       741       746
   inspection and other fees..............
  Department of Commerce: Patent and           1,021     1,123     1,304     1,304     1,319     1,352     1,382
   trademark, fees for weather services,
   and other fees.........................
  Department of Defense: Commissary and        7,345     6,438     6,366     6,347     6,347     6,347     6,347
   other fees.............................
  Department of Energy: Federal Energy           508       631       655       645       643       641       619
   Regulation Commission and other fees...
  Department of Health and Human Services:       316       338       657       657       664       681       696
   Food and Drug Administration, Health
   Care Financing Administration, and
   other fees.............................
  Department of the Interior: Bureau of          235       260       250       250       252       260       264
   Land Management and other fees.........
  Department of Justice: Antitrust and           343       314       590       590       596       611       625
   other fees.............................
  Department of State: Visa, passport, and       365       411       451       451       456       468       478
   other fees.............................
  Department of Transportation: Coast             83       104       464       888       897       921       942
   Guard and other fees...................
  Department of the Treasury: Sale of          1,906     1,935     1,854     1,854     1,876     1,923     1,965
   commemorative coins and other fees.....
  Department of Veterans Affairs: Medical        577       603       496       496       501       515       525
   care and other fees....................
  National Aeronautics and Space                 848       956       875       875       875       875       875
   Administration: Reimbursement for the
   use of NASA services...................
  Federal Communications Commission:             173       191       200       200       202       207       212
   Regulatory and other fees..............
  Federal Trade Commission: Regulatory and        97       111       165       165       167       171       175
   other fees.............................
  Legislative Branch: Library of Congress         85       119       114       114       114       114       114
   and copyright fees.....................
  National Credit Union Administration:          102       111       121       121       122       125       128
   Stock subscription fees................
  Nuclear Regulatory Commission:                 442       447       454       454       459       471       481
   Regulatory fees........................
  Panama Canal Commission: Fees for use of       756       176  ........  ........  ........  ........  ........
   the canal..............................
  Securities and Exchange Commission:            591       634       650       650       658       674       689
   Regulatory fees........................
  All other agencies, discretionary user         144       150       199       187       188       191       195
   fees...................................
                                           ---------------------------------------------------------------------
     Subtotal, discretionary offsetting       16,104    15,238    16,600    16,983    17,073    17,288    17,458
     collections and receipts.............

                 Mandatory

  Department of Agriculture: Federal crop        883     1,111     1,586     1,557     1,633     1,697     1,727
   insurance and other fees...............
  Department of Defense: Commissary              257       276       275       275       275       275       275
   surcharge and other fees...............
  Department of Energy: Proceeds from the      2,889     2,489     2,697     3,162     3,234     3,195     3,140
   sale of energy and other fees:.........
  Department of Health and Human Services:    21,570    21,744    23,169    25,631    28,214    30,854    33,694
   Medicare Part B insurance premiums, and
   other fees.............................
  Department of the Interior: Recreation         610       575       586       604       621       629       637
   and other fees.........................
  Department of Justice: Immigration and       1,300     1,498     1,483     1,488     1,516     1,524     1,531
   other fees.............................
  Department of Labor: Insurance premiums        460       824     1,083     1,013     1,087     1,160     1,233
   to guarantee private pensions and other
   fees...................................
  Department of the Treasury: Customs,         1,813     1,871     1,922     2,001     2,074     2,150     2,229
   bank regulation, and other fees........
  Department of Veterans Affairs: Veterans     1,696     1,651     1,724     1,720     1,686     1,643     1,606
   life insurance and other fees..........
  Corps of Engineers: Harbor services and         40        41     1,007     1,004     1,002     1,038     1,056
   other fees.............................
  Federal Emergency Management Agency:         1,416     1,545     1,756     1,868     1,986     2,121     2,266
   Flood insurance fees...................
  International Assistance Programs:          11,624    10,560    10,760    10,890    10,920    11,020    11,150
   Foreign military sales.................
  Office of Personnel Management: Federal      6,093     6,620     7,140     7,677     8,286     8,909     9,539
   employee health and life insurance fees
  Federal Deposit Insurance Corporation:         860       374       590       664     1,014     1,548     2,336
   Deposit insurance fees.................
  National Credit Union Administration:          350       308       326       300       321       347       388
   Credit union share insurance and other
   fees...................................
  Postal Service: Fees for postal services    61,957    63,998    67,421    70,000    72,750    74,100    75,650
   (e. g., sale of stamps)................
  Tennessee Valley Authority: Proceeds         6,818     6,590     6,718     6,826     7,078     7,419     7,565
   from the sale of energy................
  All other agencies, mandatory user fees.       244       287       315       326       313       329       339
                                           ---------------------------------------------------------------------
     Subtotal, mandatory offsetting          120,880   122,362   130,558   137,006   144,010   149,958   156,361
     collections and receipts.............
                                           ---------------------------------------------------------------------
 Subtotal, offsetting collections and        136,984   137,600   147,158   153,989   161,083   167,246   173,819
 receipts.................................
                                           =====================================================================
TOTAL, User fees..........................   137,957   138,718   148,619   156,358   163,589   169,792   176,372
----------------------------------------------------------------------------------------------------------------
\1\ Gross revenue increase from proposed fees. Current aviation excise taxes, which are not user fees, will
  gradually be converted to cost-based user fees. While considered governmental receipts, the following proceeds
  from the fees, net of income tax offsets, would be made available to offset discretionary spending:





                                            1999     2000     2001     2002     2003     2004     2005   2000-05

FAA collections available for spending..  .......  .......      724    1,399    1,499    1,522    1,522    6,667


\2\ The Budget proposes to convert proceeds to offsetting collections for the Corps of Engineers. While the fee
  collection will be mandatory, proceeds from the fee will be made available to offset discretionary spending.


[[Page 98]]


                                         Table 4-3.  USER FEE PROPOSALS
                                 (estimated collections in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                            2001     2002     2003     2004     2005   2001-2005
----------------------------------------------------------------------------------------------------------------

A.   USER FEE PROPOSALS TO OFFSET DISCRETIONARY SPENDING

1.   Proposals for Discretionary User Fees

a.   Offsetting collections deposited in appropriation
 accounts

Department of Agriculture
   Food Safety Inspection Service fees..................      534      641      641      641      641     3,098
   Animal and Plant Health Inspection Service...........       11       11       11       11       11        55
   Grain Inspection, Packers and Stockyards                    23       23       23       23       23       115
   Administration.......................................

Department of Commerce
   National Oceanic and Atmospheric Administration,            14       14       14       14       14        70
   Navigational assistance fees.........................
   Fisheries management fees............................       20       20       20       20       20       100

Department of Health and Human Services
   Food and Drug Administration fees....................       19       19       19       19       19        95
   Health Care Financing Administration fee proposals:
     Managed care application and renewal fees..........       21       21       21       21       21       105
     Provider initial certification fees................       13       13       13       13       13        65
     Provider recertification fees......................       50       50       50       50       50       250
     Paper claims submission fees.......................       83       83       83       83       83       415
     Duplicate and unprocessable claims fees............       53       53       53       53       53       265
     Increase Medicare+Choice fees......................      131      130      129      128      128       646
     Nursing home criminal abuse registry fee...........        4        4        4        4        4        20

Department of the Interior
   User fees on Outer Continental Shelf lands...........       10       10       10       10       10        50

Department of Justice
   Hart-Scott Rodino pre-merger filing fees.............       38       38       38       38       38       190

Department of Transportation
   Coast Guard, navigational services fees..............      212      636      644      660      674     2,826
   Federal Railroad Administration, rail safety               103      103      103      103      103       515
   inspection fees......................................
   Hazardous materials transportation safety fees.......       19       19       19       19       19        95
   Surface Transportation Board fees....................       17       17       17       17       17        85

Department of the Treasury
   Customs, automation modernization fee................      210      210      210      210      210     1,050

Federal Trade Commission
   Hart-Scott Rodino pre-merger filing fees.............       38       38       38       38       38       190

National Transportation Safety Board
   Commercial accident investigation fees...............       10       10       10       10       10        50

b.   Offsetting collections deposited in receipt
 accounts

Department of Justice
   Immigration premium processing fee...................       17       17       17       17       17        85
   Increase inspection user fees........................      167      167      167      167      167       835

Department of Transportation
   Pipeline safety fees.................................       11       12       12       12       12        59

Environmental Protection Agency
   Pesticide registration fees..........................       16  .......  .......  .......  .......        16
   Pre-manufacture notice (PMN) fees....................        4        8        8        8        8        36

Nuclear Regulatory Commission
   Extend Nuclear Regulatory Commission user fees.......      295      295      295      295      295     1,475
                                                         -------------------------------------------------------
     Subtotal, proposals for discretionary user fees....    2,143    2,662    2,669    2,684    2,698    12,856

2.   Proposals for Mandatory User Fees to Offset
 Discretionary Spending

a.   Offsetting collections deposited in appropriation
 accounts

Federal Deposit Insurance Corporation
   State bank exam fees.................................       92       96      102      106      111       507

b.   Offsetting collections deposited in receipt
 accounts

Corps of Engineers
   Harbor services user fee, replaces harbor maintenance      417      361      313      315      296     1,702
   tax \1\..............................................

c.   Receipts

Department of Transportation
   Federal Aviation Administration cost-based user fees       965    1,866    1,999    2,030    2,030     8,890
   (governmental receipt) \2\...........................
                                                         -------------------------------------------------------
     Subtotal, proposals for mandatory user fees to         1,474    2,323    2,414    2,451    2,437    11,099
     offset discretionary spending......................
                                                         =======================================================
     Subtotal, user fee proposals to offset                 3,617    4,985    5,083    5,135    5,135    23,955
     discretionary spending.............................


[[Page 99]]


  B.   USER FEE PROPOSALS TO OFFSET MANDATORY SPENDING

a.   Offsetting collections deposited in appropriation
 accounts

Department of Agriculture
   Federal crop insurance...............................       69  .......  .......  .......  .......        69

Department of Labor
   Implement alien labor certification fees.............      138      122      122      122      122       626

Federal Emergency Management Agency
   Flood map license fee for flood map modernization....      104      107      109      112      114       546

b.   Offsetting collections deposited in receipt
 accounts

Department of Agriculture
  Recreation and entrance fees..........................  .......       28       36       48       50       162
  Concession, land use, right of way, and filming               6        7       13       13       13        52
   permits..............................................

Department of Health and Human Services
   Medicare premiums....................................     -180      226      392      418      590     1,446

Department of the Interior
   Recreation and entrance fees.........................  .......       73       74       76       74       297
   Filming and special use permits fees.................        3        3        4        4        5        19
   Hardrock mining production fees......................  .......        8       26       26       26        86
Department of the Treasury
   Customs, extend conveyance/passenger fee.............  .......  .......  .......      424      465       889
   Customs, extend merchandise processing fee...........  .......  .......  .......    1,036    1,059     2,095
                                                         -------------------------------------------------------
    Subtotal user fee proposals to offset mandatory           140      574      776    2,279    2,518     6,287
     spending...........................................
                                                         =======================================================
Total user fee proposals................................    3,757    5,559    5,859    7,414    7,653    30,242
----------------------------------------------------------------------------------------------------------------
\1\ The amounts shown here are the amounts available to offset discretionary spending. This is the total amount
  from the proposed harbor services user fee, less three-fourths (to account for the income tax offset) of the
  tax revenues that would be lost from repealing the existing harbor maintenance tax.

\2\ Gross revenue increase from proposed fees. Current aviation excise taxes, which are not user fees, will
  gradually be converted to cost-based user fees. While considered governmental receipts, the following proceeds
  from the fees, net of income tax offsets, would be made to offset discretionary spending:




                                                              2001     2002     2003     2004     2005   2001-05

 FAA collections available for                                  724    1,399    1,499    1,522    1,522    6,667
 spending.......................


      Provider recertification fees.--The Administration proposes to 
levy a fee on providers who are recertified for the Medicare program. By 
statute, skilled nursing facilities must be surveyed every year, home 
health agencies every three years, and other providers about once every 
ten years. The fee would be charged every year to spread the costs of 
the certification program over time. Proceeds from this fee would be 
used to offset survey and certification funding.
      Paper claims submission fees.--The Administration proposes to 
charge providers $1.00 for every paper claim submitted for payment 
because of the additional cost of processing paper rather than 
electronic claims. Rural providers and very small providers who may not 
be able to purchase the necessary hardware to comply with electronic 
claims transmission would be exempt from the fee. Proceeds from the fee 
would be used to offset Contractor funding related to claims processing.
      Duplicate and unprocessable claims fees.--The Administration 
proposes to charge Medicare providers $1.00 for each duplicate and 
unprocessable claim submitted for payment to the Health Care Financing 
Administration. Proceeds from the fee would be used to offset Contractor 
funding related to claims processing.
      Increase in the Medicare+Choice fees.--The Administration proposes 
to increase the fee on Medicare+Choice plans by approximately $131 
million in 2001. The fee was authorized at $100 million in the Balanced 
Budget Act of 1997 but reduced to approximately $19 million (for 2001) 
by the Balanced Budget Refinement Act of 1999. This increase would be 
used to maintain the current level of effort in providing information to 
Medicare beneficiaries regarding the Medicare+Choice program.
      Nursing home criminal abuse registry fee.--The Administration 
proposes to charge nursing facilities a fee to query a nursing home 
criminal abuse registry. Proceeds from the fee would be used to fund the 
operation and maintenance of the registry.

Department of the Interior

  User fees on Outer Continental Shelf lands.--The Administration 
proposes new and modifications to existing user fees on the Minerals 
Management Service program that supports energy and mineral exploration, 
development and production on the Outer Continental lands such as 
increasing rental rates, implementing a bidding fee, and charging for 
violation re-inspections. Collections would be available upon 
appropriation to fund royalty and offshore minerals management 
activities.

Department of Justice

  Hart-Scott-Rodino pre-merger filing fees.--The Administration proposes 
to restructure the Hart- Scott-

[[Page 100]]

Rodino fee, which is charged to acquiring firms in mergers. Fees are 
collected by the Federal Trade Commission (FTC) and divided evenly 
between the FTC and the Antitrust Division in the Department of Justice.

Department of Transportation

  Coast Guard, navigational services fees.--The Administration proposes 
to levy a fee on U.S. and foreign commercial cargo and cruise vessels 
for the use of Coast Guard navigational assistance services. 
Navigational assistance services include the placement and maintenance 
of buoys and other short-range aids-to-navigation, radio navigation, ice 
breaking, and vessel traffic services. Fishing and recreational vessels 
would be exempt.
  Federal Railroad Administration, rail safety inspection fees.--This 
proposed fee would offset the costs of the Federal Railroad 
Administration's safety inspection program. An estimated $103 million in 
fees would be collected from railroad carriers based upon a calculation 
of their rail usage.
  Hazardous materials transportation safety fees.--Beginning late in 
2001, hazardous materials transportation safety activities previously 
financed by general fund appropriations to the Research and Special 
Programs Administration are proposed to be financed instead by an 
increase in hazardous materials registration fees. Authorizing 
legislation will be proposed to increase the fees paid by shippers and 
carriers of hazardous materials by an estimated $19 million in 2001 to 
fund these safety activities.
  Surface Transportation Board fees.--The Administration proposes to 
create a fee mechanism to completely offset the expenses of the Surface 
Transportation Board (STB), the successor to the Interstate Commerce 
Commission (ICC). The fees would be collected from those who benefit 
from the continuation of the ICC functions transferred to the STB, i.e. 
railroads and shippers.

Department of the Treasury

  Customs, automation modernization fee.--The Administration proposes to 
establish a fee to offset the costs of modernizing automated commercial 
operations of the U. S. Customs Service. Fees would finance the 
development of the Automated Commercial Environment (ACE), which is 
critical to maintain the ability of the U. S. Customs Service to process 
the increasing volume of trade. Subsequent to the budget, authorization 
legislation will be transmitted to allow the Secretary to establish the 
fee.

Federal Trade Commission (FTC)

  Hart-Scott-Rodino pre-merger filing fees.--The Administration proposes 
to restructure the Hart- Scott-Rodino fee, which is charged to acquiring 
firms in mergers. Fees are collected by the Federal FTC and divided 
evenly between the FTC and the Antitrust Division in the Department of 
Justice.

National Transportation Safety Board (NTSB)

  Commercial accident investigation fees.--To offset a portion of the 
growing cost of commercial accident investigations by the NTSB, a new 
aviation accident recovery and investigation fee is proposed. This fee, 
which would be paid by commercial air, motor, ocean, rail, and pipeline 
carriers based on an approximation of risk, would collect an estimated 
$10 million in 2001.

b. Offsetting collections deposited in receipt accounts

Department of Justice

  Immigration premium processing fee.--This is a voluntary fee paid in 
addition to existing user fees charged for business visa processing that 
will guarantee expedited processing and direct liaison with the 
Immigration and Naturalization Service (INS). The INS estimates that $17 
million of the projected $80 million in annual receipts will be used for 
expedited processing. The remainder will be earmarked for fraud 
investigations ($8 million), reduction of backlog, and infrastructure 
improvements ($55 million).
  Increase inspection user fees.--Congress established the user fee 
account to cover the full cost of air and sea passenger inspections. The 
Administration is proposing to increase the per passenger inspection fee 
from $6 to $8 and eliminate an exemption from the inspection fee for 
cruise ship passengers. The increase will be used solely to defray 
inspection expenses.

Department of Transportation

  Pipeline safety fees.--The Administration proposes to increase 
offsetting collections from the pipeline safety fund by an estimated $11 
million in user fees in 2001. These fees would fund grants to States to 
inspect intrastate pipelines, damage prevention grants to implement best 
practices of damage prevention, and additional research, training and 
risk assessment.

Environmental Protection Agency

  Pesticide registration fees.--The budget proposes to reinstate 
pesticide registration fees that are statutorily suspended through 2001. 
These fees would be used to offset the cost of reviewing applications 
for pesticide registrations, amendments to registrations, and 
experimental use permits.
  Pre-manufacturing notification (PMN) fees.--The Administration 
proposes to eliminate the statutory cap on PMN fees and to increase fees 
charged to chemical producers to recover the cost of reviewing 
notifications of new chemicals prior to production.

Nuclear Regulatory Commission (NRC)

  Extend Nuclear Regulatory Commission user fees.--Under current law, 
the NRC must recover approximately 100 percent of its budget (less 
appropriations from the Nuclear Waste Fund) from licensing, inspection, 
and annual fees charged to its applicants and licensees through 2000. 
Unless the law is extended, this requirement will revert to 33 percent 
of NRC's budget. Because of fairness and equity concerns related to 
charging NRC licensees for expenses that do not

[[Page 101]]

provide a direct benefit to them, the Administration proposes to extend 
the requirement to collect fees at approximately 98 percent of the NRC's 
budget in 2001, 96 percent in 2002, 94 percent in 2003, 92 percent in 
2004, and 90 percent in 2005.

2.   Proposals for Mandatory User Fees to Offset Discretionary Spending

a.   Offsetting collections deposited in appropriation accounts

Federal Deposit Insurance Corporation (FDIC)

  Recovery of supervision and regulation expenses.--The Administration 
proposes to require the FDIC and the Federal Reserve to recover their 
respective costs for supervision and regulation of state-chartered banks 
and bank holding companies. Currently, supervision and regulation 
expenses are funded from deposit insurance premiums (FDIC) and interest 
earnings on Treasury securities (Federal Reserve). The FDIC's 
collections would finance its state bank supervision and regulation 
operations.

b. Offsetting collections deposited in receipt accounts

Corps of Engineers

  Harbor services fee.--The Administration proposes to replace 
collection of the ad valorem harbor maintenance tax with a cost-based 
user fee, the harbor services user fee. The user fee will finance 
construction, operation, and maintenance of harbor activities performed 
by the Corps of Engineers, the costs of operating and maintaining the 
Saint Lawrence Seaway, and the costs of administering the fee. Through 
appropriations acts, the fee will raise an average of $980 million 
annually through 2005, which is less than would have been raised by the 
harbor maintenance tax before the Supreme Court decision that the ad 
valorem tax on exports was unconstitutional. While the collections from 
the harbor services fee would be mandatory, collections would be 
available to offset discretionary spending.

c. Receipts

Department of Transportation

  Federal Aviation Administration (FAA), cost-based user fees.--The 
Budget proposes to reduce the existing aviation excise taxes over time 
as more efficient, cost-based user fees for air traffic services are 
phased in beginning in 2001. Under this proposal, the collections each 
year from the new cost-based user fees and the existing excise taxes 
combined would be equal to the total budget resources requested for the 
FAA in each succeeding year. In 2001, this proposal would result in the 
collection of $1.0 billion in additional aviation user charges. These 
charges will be deposited into a governmental receipt account and be 
made available for FAA discretionary spending.

B.   User Fee Proposals to Offset Mandatory Spending

a. Offsetting collections deposited in appropriation accounts

Department of Agriculture

  Federal crop insurance.--The President's Budget contains a proposal to 
strengthen the farm safety net that includes nearly $1 billion in crop 
insurance reforms. These reforms include a crop insurance premium 
discount which is expected to attract new participants to the crop 
insurance program and induce current participants to purchase higher 
coverage levels. Both of these expected outcomes will result in an 
increase in gross premiums, a portion of which are paid by producers. 
The estimated increase in producer-paid premiums as a result of the 
safety net proposal is $69 million, as shown in Table 4-3.

Department of Labor

  Implement alien labor certification fees.--The proposal would 
establish a new fee, charged to businesses, for processing of alien 
labor certification applications by the Department of Labor. The fee 
proceeds would offset the costs of administering and enforcing the alien 
labor program, and provide reemployment and training assistance to U.S. 
workers who have been dislocated from their jobs.

Federal Emergency Management Agency (FEMA)

  Flood map license fee.--The Administration proposes to establish a $12 
license fee on the use of FEMA's flood hazard maps to support a multi-
year program to update and modernize FEMA's inventory of flood-plain 
maps (100,000 maps). Accurate and easy to use flood hazard maps are 
essential in determining if a property is located in a flood plain. The 
maps allow lenders to meet their statutory obligation of requiring the 
risk-prone homes they insure to carry flood insurance, and allow 
homeowners to assess their risk of flood damage. The maps are the basis 
for developing appropriate risk-based flood insurance premium charges, 
and improved maps will result in a more actuarially sound insurance 
program.

b. Offsetting collections deposited in receipt accounts

Department of Agriculture

  Recreation and entrance fees.--The Administration proposes to 
permanently extend the current pilot program which expires in 2001. The 
United States Forest Service would be allowed to collect increased 
recreation and entrance fees and use the receipts without further 
appropriation for facility improvements and new services. The Forest 
Service would also be authorized to use collections from existing fees 
for similar improvements and services.
  Concession, land use, right of way, and filming permits. This budget 
proposes to collect fair market value from a variety of forest uses, 
including special use permits for rights-of-way on Forest Service lands 
(e.g., for oil and gas pipelines, phone lines, and optic cables), 
recreational concessions, marinas, and film, motion pic

[[Page 102]]

ture, and other similar uses. Funds would be available for spending one 
year after these collections.

Department of Health and Human Services

  Medicare premiums for retirees under the age of 65 and displaced 
workers.--The Administration proposes, in the context of the President's 
Medicare Reform Plan, to charge premiums based on an actuarially fair 
rate to people between the ages of 62 and 65 and displaced workers 
between 55 and 61 who elect to participate in the Medicare buy-in 
premium based program. This increase in premium collections is offset by 
the reduction in premium collections due to the Medicare savings 
proposals.
  Medicare premiums for prescription drug benefit.--The President's 
Medicare reform plan includes a prescription drug benefit which is 
financed through a 50 percent premium. After paying the premium, 
Medicare beneficiaries receive first-dollar coverage of prescription 
drugs up to a $5,000 limit once the benefit is fully implemented.

Department of the Interior

  Recreation and entrance fees.--The Administration proposes to 
permanently extend the current pilot program which expires in 2001. The 
National Park Service, Fish and Wildlife Service, and the Bureau of Land 
Management would be allowed to collect increased recreation and entrance 
fees and use the receipts without further appropriation for facility 
improvements and new services.
  Filming and special use permits fees.--The Administration proposes to 
authorize the National Park Service and other land management agencies, 
including the Department of Agriculture's Forest Service, to increase 
fees for permits to use land and facilities for the making of motion 
pictures, television productions, still photos, sound tracks and other 
similar purposes. Collections would be available without further 
appropriations to cover related Government costs (as currently 
authorized) and provide a fair return to the Government.
  Hardrock mining production fees.--The Administration proposes to 
charge mining companies a 5% fee on net smelter production from hard 
rock mining on public domain or reserved public domain Federal lands.

Department of the Treasury

  Extend Customs conveyance and passenger and merchandise processing 
fees.--Under existing legislation, the Customs Conveyance/Passenger Fee 
and the Merchandise Processing Fee will expire on September 30, 2003. 
The Administration proposes to extend both of these fees starting on 
October 1, 2003.

                OTHER OFFSETTING COLLECTIONS AND RECEIPTS

   Table 4-4 shows that total offsetting collections and receipts from 
the public are estimated to be $214.8 billion in 2001. Of these, an 
estimated $141.4 billion are offsetting collections credited to 
appropriation accounts and an estimated $73.4 billion are deposited in 
offsetting receipt accounts.
   The user fees in Table 4-4 were discussed in the previous section. 
Major offsetting collections deposited in expenditure accounts that are 
not user fees are pre-credit reform loan repayments, collections from 
States to supplement payments in the supplemental security income 
program, and collections for the Federal Savings and Loan resolution 
fund. Major offsetting receipts that are not user fees include spectrum 
auction receipts, rents and royalties for oil and gas on the Outer 
Continental Shelf, and interest income.
   Table 4-5 includes all offsetting receipts deposited in receipt 
accounts. These include payments from one part of the Government to 
another, called intragovernmental transactions, and collections from the 
public. These receipts are offset (deducted) from outlays in the Federal 
budget. In total, offsetting receipts are estimated to be $413.2 billion 
in 2001--$339.9 billion are intragovernmental transactions, and $73.4 
billion are from the public, shown in the table as proprietary receipts 
and offsetting governmental receipts.
   As noted above, offsetting collections and receipts by agency are 
also displayed in Table 20-1, ``Outlays to the Public, Net and Gross,'' 
which appears in Chapter 20 of this volume.

[[Page 103]]



    Table 4-4.   OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
                        (In millions of dollars)
------------------------------------------------------------------------
                                                         Estimate
                                         1999    -----------------------
                                        Actual       2000        2001
------------------------------------------------------------------------
Offsetting collections credited to
 expenditure accounts:

   User fees:
     Postal service stamps and other      61,957      63,998      67,421
     postal fees....................
     Defense Commissary Agency......       4,967       4,999       4,999
     Employee contributions for            4,853       5,249       5,622
     employees and retired employees
     health benefits funds..........
     Sale of energy:
       Tennessee Valley Authority...       6,818       6,590       6,718
       Bonneville Power                    2,539       2,309       2,345
       Administration...............
     All other user fees............      17,904      17,290      19,929
                                     -----------------------------------
       Subtotal, user fees..........      99,038     100,435     107,034

   Other collections credited to
   expenditure accounts:
     Pre-credit reform loan               14,919      14,977      14,787
     repayments.....................
     Supplemental security income          3,219       3,310       3,410
     (collections from the States)..
     Federal Savings and Loan              3,784       2,188         624
     Insurance Corporation
     resolution fund................
     All other collections..........      15,417      16,524      15,564
                                     -----------------------------------
   Subtotal, other collections......      37,339      36,999      34,385
                                     -----------------------------------
 Subtotal, collections credited to       136,377     137,434     141,419
 expenditure accounts...............

Offsetting receipts:

   User fees:
     Medicare premiums..............      21,561      21,735      23,160
     Foreign military sales program.      11,624      10,560      10,760
     Immigration fees...............       1,053       1,219       1,389
     Customs fees...................       1,210       1,255       1,294
     All other user fees............       2,498       2,396       3,521
                                     -----------------------------------
       Subtotal, user fees deposited      37,946      37,165      40,124
       in receipt accounts..........

   Other collections deposited in
   receipt accounts:
     Spectrum auction receipts......       1,505       2,076       3,559
     OCS rents, bonuses, and               3,098       3,550       3,691
     royalties......................
     Interest income................       9,441      10,971      13,564
     All other collections deposited      18,941      20,794      12,426
     in receipt accounts............
                                     -----------------------------------
       Subtotal, other collections        32,985      37,391      33,240
       deposited in receipt accounts
                                     -----------------------------------
   Subtotal, collections deposited        70,931      74,556      73,364
   in receipt accounts..............
                                     ===================================
Total, offsetting collections and        207,308     211,990     214,783
 receipts from the public...........

Total, offsetting collections and        145,331     147,976     147,346
 receipts excluding off-budget......

ADDENDUM:
   User fees that are offsetting         136,984     137,600     147,158
   collections and receipts \1\.....
   Other offsetting collections and       70,324      74,390      67,625
   receipts from the public.........
                                     -----------------------------------
  Total, offsetting collections and      207,308     211,990     214,783
   receipts from the public.........
------------------------------------------------------------------------
\1\ Excludes user fees that are classified on the receipts side of the
  budget. For total user fees, see Table 4.1 or Table 4.2.


[[Page 104]]


                                    Table 4-5.   OFFSETTING RECEIPTS BY TYPE
                                            (In millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                         Estimate
           Source                1999    -----------------------------------------------------------------------
                                Actual       2000        2001        2002        2003        2004        2005
----------------------------------------------------------------------------------------------------------------
      INTRAGOVERNMENTAL
        TRANSACTIONS
On-budget receipts:
  Federal intrafund
   transactions:
    Distributed by agency:
      Interest from the            2,503       2,412       2,159       1,988       1,853       2,205       2,472
       Federal Financing
       Bank.................
      Interest on Government       1,473       1,634       1,633       1,400       1,269       1,138       1,059
       capital in
       enterprises..........
      Other.................       1,119       1,721       2,084       2,190       2,298       2,361       2,354
      Proposed Legislation    ..........  ..........          65          79          82          85          96
       (non-PAYGO)..........
                             -----------------------------------------------------------------------------------
      Total Federal                5,095       5,767       5,941       5,657       5,502       5,789       5,981
       intrafunds...........
                             -----------------------------------------------------------------------------------
    Trust intrafund
     transactions:
      Distributed by agency:
      Payments to railroad         3,816       3,760       3,637       3,749       3,763       3,786       3,810
       retirement...........
      Other.................  ..........           1           1           1           1           1           1
                             -----------------------------------------------------------------------------------
      Total trust intrafunds       3,816       3,761       3,638       3,750       3,764       3,787       3,811
                             -----------------------------------------------------------------------------------
    Total intrafund                8,911       9,528       9,579       9,407       9,266       9,576       9,792
     transactions...........
                             -----------------------------------------------------------------------------------
  Interfund transactions:
    Distributed by agency:
      Federal fund payments
       to trust funds:
        Contributions to
         insurance programs:
          Military                15,250      15,302      15,914      16,551      17,213      17,901      18,618
           retirement fund..
          Supplementary           62,185      65,063      69,777      75,983      83,259      89,121      96,212
           medical insurance
          Proposed            ..........  ..........        -280        -780       3,636       9,668      11,404
           Legislation (non-
           PAYGO)...........
          Hospital insurance       7,367       7,865       7,571       7,855       8,409       8,952       9,476
          Proposed            ..........  ..........      15,400      12,600  ..........  ..........  ..........
           Legislation (non-
           PAYGO)...........
          Railroad social             98         105          88          88          89          91          94
           security
           equivalent fund..
          Rail industry              394         265         238         243         248         255         262
           pension fund.....
          Civilian                21,706      21,496      21,760      22,074      22,491      22,860      23,250
           supplementary
           retirement
           contributions....
          Proposed            ..........  ..........           1           1           1           2           3
           Legislation (non-
           PAYGO)...........
          Unemployment               403         399         454         474         500         543         574
           insurance........
          Other                      438         541         441         492         488         485         482
           contributions....
          Proposed            ..........  ..........          38          37          36          36          34
           Legislation (non-
           PAYGO)...........
          Miscellaneous              597         960         569         577         566         570         580
           payments.........
          Proposed            ..........  ..........       1,467          -1          -1          -1          -1
           Legislation (non-
           PAYGO)...........
                             -----------------------------------------------------------------------------------
        Subtotal............     108,438     111,996     133,438     136,194     136,935     150,483     160,988
                             -----------------------------------------------------------------------------------
      Trust fund payments to
       Federal funds:
        Quinquennial          ..........  ..........       1,152  ..........  ..........  ..........  ..........
         adjustment for
         military service
         credits............
        Other...............       1,082       1,051       1,076       1,103       1,130       1,160       1,188
        Proposed Legislation  ..........  ..........       3,226  ..........  ..........  ..........  ..........
         (non-PAYGO)........
                             -----------------------------------------------------------------------------------
        Subtotal............       1,082       1,051       5,454       1,103       1,130       1,160       1,188
                             -----------------------------------------------------------------------------------
      Total interfunds           109,520     113,047     138,892     137,297     138,065     151,643     162,176
       distributed by agency
                             -----------------------------------------------------------------------------------
    Undistributed by agency:
      Employer share,
       employee retirement
       (on-budget):
        Civil service              9,094       8,879       9,335       9,729       9,839      10,344      10,895
         retirement and
         disability
         insurance (CSRDI)..
        Proposed Legislation  ..........  ..........         -34          22         -17         -24         -26
         (non-PAYGO)........
        CSRDI from Postal          6,001       6,437       6,624       6,799       6,919       7,041       7,166
         Service............
        Hospital insurance         1,965       2,043       2,093       2,211       2,292       2,384       2,499
         (contribution as
         employer) \1\ .....
        Postal employer              611         633         659         687         717         749         781
         contributions to
         FHI................
        Military retirement       10,417      11,454      11,413      11,781      12,114      12,459      12,825
         fund...............
        Other Federal                121         129         135         141         144         150         157
         employees
         retirement.........
                             -----------------------------------------------------------------------------------
        Total employer            28,209      29,575      30,225      31,370      32,008      33,103      34,297
         share, employee
         retirement (on-
         budget)............
                             -----------------------------------------------------------------------------------
        Interest received by      66,561      71,291      73,735      76,779      79,629      82,210      84,782
         on-budget trust
         funds..............
        Proposed Legislation  ..........          65         377       1,413       2,297       2,556       2,804
         (non-PAYGO)........
                             -----------------------------------------------------------------------------------
      Total interfund             94,770     100,931     104,337     109,562     113,934     117,869     121,883
       transactions
       undistributed by
       agency...............
                             -----------------------------------------------------------------------------------

[[Page 105]]


    Total interfund              204,290     213,978     243,229     246,859     251,999     269,512     284,059
     transactions...........
                             -----------------------------------------------------------------------------------
  Total on-budget receipts..     213,201     223,506     252,808     256,266     261,265     279,088     293,851
                             -----------------------------------------------------------------------------------
Off-budget receipts:
  Interfund transactions:
    Distributed by agency:
      Federal fund payments
       to trust funds:
        Old-age, survivors,       10,824      11,663      10,985      11,494      12,048      12,813      13,725
         and disability
         insurance..........
    Undistributed by agency:
        Employer share,            7,385       7,860       8,212       8,919       9,493      10,144      10,905
         employee retirement
         (off-budget).......
        Proposed Legislation  ..........  ..........        -271        -321        -285        -289        -291
         (non-PAYGO)........
        Interest received by      52,070      59,656      68,138      77,622      87,895      98,812     110,493
         off-budget trust
         funds..............
                             -----------------------------------------------------------------------------------
  Total off-budget receipts:      70,279      79,179      87,064      97,714     109,151     121,480     134,832
                             -----------------------------------------------------------------------------------
Total intragovernmental          283,480     302,685     339,872     353,980     370,416     400,568     428,683
 transactions...............
                             ===================================================================================
  PROPRIETARY RECEIPTS FROM
         THE PUBLIC
Distributed by agency:
  Interest:
    Interest on foreign              888         753         749         758         823         812         806
     loans and deferred
     foreign collections....
    Interest on deposits in          935       1,152       1,104       1,052       1,052       1,052       1,052
     tax and loan accounts..
    Other interest                 7,617       9,066      10,369      11,372      12,368      13,324      14,216
     (domestic--civil) \2\ .
                             -----------------------------------------------------------------------------------
    Total interest..........       9,440      10,971      12,222      13,182      14,243      15,188      16,074
                             -----------------------------------------------------------------------------------
  Royalties and rents.......       1,097       1,510       1,318       1,355       1,339       1,354       1,401
    Proposed Legislation      ..........  ..........  ..........           9          33          33          33
     (PAYGO)................
                             -----------------------------------------------------------------------------------
  Sale of products:
    Sale of timber and other         366         618         453         438         423         446         425
     natural land products..
    Proposed Legislation      ..........  ..........          -1          -1          -1          -1          -1
     (non-PAYGO)............
    Proposed Legislation      ..........  ..........         219         262         288         286         293
     (PAYGO)................
    Sale of minerals and              38          27          21          21          14          20          17
     mineral products.......
    Sale of power and other          731         737         776         758         753         750         690
     utilities..............
    Other...................          65          61          59          64          64          65          66
                             -----------------------------------------------------------------------------------
    Total sale of products..       1,200       1,443       1,527       1,542       1,541       1,566       1,490
                             -----------------------------------------------------------------------------------
  Fees and other charges for
   services and special
   benefits:
    Medicare premiums and         21,561      21,735      23,340      25,396      27,813      30,427      33,095
     other charges (trust
     funds).................
    Proposed Legislation      ..........  ..........        -180         226       8,052      10,921      13,703
     (PAYGO)................
    Nuclear waste disposal           662         663         550         550         550         545         535
     revenues...............
    Veterans life insurance          204         189         179         168         157         145         133
     (trust funds)..........
    Other \2\ ..............       1,860       1,892       2,565       2,520       2,543       2,578       2,619
    Proposed Legislation      ..........  ..........          -3          -3          -3          -3          -3
     (non-PAYGO)............
    Proposed Legislation      ..........  ..........        -157         -66         -56         -42         -41
     (PAYGO)................
    Legislative proposal,     ..........  ..........         966         963         960         996       1,015
     discretionary offset...
                             -----------------------------------------------------------------------------------
    Total fees and other          24,287      24,479      27,260      29,754      40,016      45,567      51,056
     charges................
                             -----------------------------------------------------------------------------------
  Sale of Government
   property:
    Sale of land and other            58          59         114         419          79          77          77
     real property..........
    Proposed Legislation      ..........  ..........           3           5          13          14          14
     (PAYGO)................
    Military assistance           11,624      10,560      10,760      10,890      10,920      11,020      11,150
     program sales (trust
     funds).................
    Other...................         172         170         220         224         188          73          88
                             -----------------------------------------------------------------------------------
    Total sale of Government      11,854      10,789      11,097      11,538      11,200      11,184      11,329
     property...............
                             -----------------------------------------------------------------------------------
  Realization upon loans and
   investments:
    Foreign military credit          367  ..........  ..........  ..........  ..........  ..........  ..........
     sales..................
    Negative subsidies and         5,914      10,606         894       5,176       5,424       5,690       6,323
     downward reestimates...
    Repayment of loans to            175         253         254          67          80          81          87
     foreign nations........
    Other...................          96          84          88         136         116         113         111
                             -----------------------------------------------------------------------------------
    Total realization upon         6,552      10,943       1,236       5,379       5,620       5,884       6,521
     loans and investments..
                             -----------------------------------------------------------------------------------

[[Page 106]]


  Recoveries and refunds \2\       3,831       4,028       3,406       4,440       3,436       3,514       3,688
   .........................
  Proposed Legislation        ..........  ..........          22        -180         -16         -24         -21
   (PAYGO)..................
  Legislative proposal,       ..........  ..........       1,309  ..........  ..........  ..........  ..........
   discretionary offset.....
  Miscellaneous receipt            4,724       1,426       1,436       1,437       1,442       1,449       1,452
   accounts \2\ ............
                             -----------------------------------------------------------------------------------
  Total proprietary receipts      62,985      65,589      60,833      68,456      78,854      85,715      93,023
   from the public
   distributed by agency....
                             -----------------------------------------------------------------------------------
Undistributed by agency:
  Other interest: Interest             1  ..........       1,342  ..........  ..........  ..........  ..........
   received from Outer
   Continental Shelf escrow
   account..................
  Rents and royalties on the
   Outer Continental Shelf:
    Rents and bonuses.......         791         365         809         401         277         249         236
    Royalties...............       2,307       3,185       2,882       2,881       2,705       2,604       2,469
  Sale of major assets......  ..........  ..........  ..........  ..........         323  ..........  ..........
                             -----------------------------------------------------------------------------------
  Total proprietary receipts       3,099       3,550       5,033       3,282       3,305       2,853       2,705
   from the public
   undistributed by agency..
                             -----------------------------------------------------------------------------------
Total proprietary receipts        66,084      69,139      65,866      71,738      82,159      88,568      95,728
 from the public \3\ .......
                             ===================================================================================
   OFFSETTING GOVERNMENTAL
          RECEIPTS
Distributed by agency:
  Regulatory fees...........       3,020       3,264       3,640       3,603       3,692       2,318       2,342
  Proposed Legislation (non-  ..........  ..........          20           8           8           8           8
   PAYGO)...................
  Proposed Legislation        ..........  ..........  ..........  ..........  ..........       1,460       1,524
   (PAYGO)..................
  Other.....................          74          77          79          81           6           6           6
Undistributed by agency:
  Spectrum auction proceeds.       1,753       2,076       3,559       5,535       2,480         770         675
  Proposed Legislation (non-  ..........  ..........         200         200         200         200         200
   PAYGO)...................
                             -----------------------------------------------------------------------------------
  Total offsetting                 4,847       5,417       7,498       9,427       6,386       4,762       4,755
   governmental receipts....
                             ===================================================================================
Total offsetting receipts...     354,411     377,241     413,236     435,145     458,961     493,898     529,166
----------------------------------------------------------------------------------------------------------------
\1\ Includes provision for covered Federal civilian employees and military personnel.
\2\ Includes both Federal funds and trust funds.
\3\ Consists of:


----------------------------------------------------------------------------------------------------------------
                                                                            Estimate
                                        1999   -----------------------------------------------------------------
                                       Actual      2000       2001       2002       2003       2004       2005
----------------------------------------------------------------------------------------------------------------
Federal funds......................     27,796     35,402     30,725     34,052     34,218     35,065     36,661
Trust funds........................     38,267     33,708     35,099     37,644     47,899     53,461     59,025
Off-budget.........................         21         29         42         42         42         42         42
----------------------------------------------------------------------------------------------------------------