    [Budget of the United States Government]
    [III. Creating a Better Government]
    [18. General Government]
    [From the U.S. Government Publishing Office, www.gpo.gov]

                             18.  GENERAL GOVERNMENT

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                             Table 18-1.  Federal Resources in Support of General Government
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 800                   2000   -----------------------------------------------------------
                                                 Actual     2001      2002      2003      2004      2005      2006
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........    12,438    13,965    14,773    15,047    15,374    15,685    16,044
      Mandatory Outlays:
        Existing law..........................     1,041     2,334     1,798     1,809     2,018     1,822     1,795
        Proposed legislation..................  ........  ........         7  ........     1,201         1         1
    Credit Activity:
      Direct loan disbursements...............        14        16         3  ........  ........  ........  ........
    Tax Expenditures:
      Existing law............................    67,720    71,300    74,800    78,340    82,100    85,970    88,670
    ----------------------------------------------------------------------------------------------------------------

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      The General Government function encompasses the central management
    activities of the executive and legislative branches. Its major
    activities include Federal financial management (e.g., tax collection,
    public debt, currency and coinage, Government-wide accounting),
    personnel management, and general administrative and property
    management.
      Four executive branch agencies are responsible for these activities:
    the Department of the Treasury (for which the budget proposes $14.7
    billion); the General Services Administration ($513 million); the Office
    of Personnel Management ($226 million); and the Office of Management and
    Budget in the Executive Office of the President ($71 million).

    Department of the Treasury

      Treasury is the Federal Government's financial agent--collecting
    revenue, making payments and managing the Government's finances. It
    produces and protects the Nation's currency; helps set domestic and
    international financial, economic, and tax policy; enforces economic
    embargoes and sanctions; regulates financial institutions and the
    alcohol, tobacco, and firearms industries; and protects citizens and
    commerce against those who counterfeit money, engage in financial fraud,
    violate our border, and threaten our leaders. Treasury's law enforcement
    functions are discussed in Chapter 17, ``Administration of Justice.''
      In 2002, Treasury will seek to collect an estimated $2.2 trillion in
    tax and tariff revenues due under law; issue more than $2 trillion in
    marketable securities and savings bonds to finance the Government's
    operations and promote citizens' savings; and produce 7.5 billion
    Federal Reserve Notes, 12 billion postage stamps, and 27 billion coins.

      Internal Revenue Service (IRS): IRS is the Federal Government's
    primary revenue collector. IRS's mission is to provide America's
    taxpayers with top quality service by helping them understand and meet
    their tax responsibilities and by applying the tax law with integrity
    and fairness to all.
       The President's Budget funds two major initiatives to improve IRS
    performance. First, the Administration requests $397 million in
    investments to modernize IRS's outdated computer systems. This multi-
    year project will provide IRS with the modern tools needed both to
    deliver first-class customer service to America's taxpayers and to
    ensure that compliance programs are administered fairly and efficiently.
    Failure to replace IRS's outdated computer systems compounds the risks

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    that taxpayers will be treated unfairly; that the IRS work force will
    not have the skills required to maintain the outdated systems; and that
    the cost of maintaining these archaic systems will grow. Second, the
    Administration proposes follow-on funding for IRS's Staffing Tax
    Administration for Balance and Equity initiative, begun in 2001. These
    funds are intended to complete the hiring of almost 4,000 staff and will
    enable IRS to address the decline in audits and the drop in customer
    service that have occurred over the past several years.
       IRS is working to improve its work processes to enhance productivity
    and customer satisfaction. It has reorganized around customer-based
    operating divisions and implemented a performance measurement system
    that balances business results (including quality and quantity
    measures), customer satisfaction, and employee satisfaction for each
    business unit. In 2002, targets for several critical IRS performance
    measures include the following:
       improve customer satisfaction (based on random surveys) to
              3.69 on a four-point scale for toll-free assistance (3.46 in
              2000); 6.55 on a seven-point scale for walk-in customer
              service (6.5 in 2000); 4.9 out of seven for field examination
              (4.4 in 2000); and 5.0 out of seven for field collection (4.6
              in 2000);
       continue to improve customer service through its toll-free
              assistance, answering 71 percent of calls, (59 percent in
              2000), with an accuracy rate of 76 percent for tax law
              questions (73 percent in 2000);
       receive 38 percent of individual returns filed
              electronically, up from 28 percent in 2000 (working toward a
              legislative goal of 80 percent of all returns and information
              documents by 2007); and
       reverse the recent drop in enforcement activity, by closing
              341,137 field (``face-to-face'') tax examinations, up 36
              percent from 251,108 in 2000.

      Financial Management Service (FMS): FMS provides central payment
    services to Federal agencies, operates the Federal Government's
    collections and deposit systems, provides Government-wide accounting and
    reporting services, and manages the collection of delinquent debt. In
    2002, FMS plans to:
       increase the percentage of Treasury payments and associated
              information transmitted electronically from 68 percent in 1999
              to 73 percent in 2002;
       increase the total dollar amount of Federal Government
              receipts collected electronically from 72 percent in 1999 to
              80 percent in 2002; and
       increase the amount of delinquent debt referred from Federal
              agencies to FMS for collection (as a percentage of delinquent
              debt eligible for referral) from 71 percent in 1999 to 75
              percent in 2002.

      Bureau of Public Debt (BPD): BPD conducts all public debt operations
    for the Federal Government and promotes the sale of U.S. savings-type
    securities. In 2002, BPD expects to continue to meet the following
    performance goals:
       issue at least 95 percent of over-the-counter bonds within
              three weeks of their purchase (99 percent in 2000);
       as in 2000, conduct all marketable securities auctions
              without error; and
       announce auction results within one hour 95 percent of the
              time (100 percent in 2000).

      U.S. Mint: The U.S. Mint produces the Nation's coinage and
    manufactures numismatic products for the public. In 2002, the U.S. Mint
    seeks to achieve the following goals:
       introduce the fourth five-State series in the 50 States
              Commemorative Quarter Program; and
       maintain high levels of customer service by shipping
              commemorative coins within four weeks and recurring coins
              within three weeks of order placement.
       In 2000, the Mint received a high customer satisfaction rating from
    buyers of numismatic and commemorative coins. Exceeding the scores of
    many private sector firms in the American Customer Satisfaction Index
    (ACSI), the Mint scored among the highest of the Federal agencies
    evaluated by ACSI.

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      Bureau of Engraving and Printing (BEP): BEP produces all U.S.
    currency, about half of U.S. postage stamps, and other Government
    securities. In 2002, BEP is expected to continue to achieve the
    following goals:
       meet all Federal Reserve and United States Postal Service
              orders as requested; and
       prevent more than 0.05 notes per million from being returned
              by the Federal Reserve because of counterfeit deterrence
              defects.

    General Services Administration (GSA)

       GSA provides policy leadership and expertly managed space, products,
    and services to support the administrative needs of Federal agencies. In
    2002, revenues from GSA's various business lines are expected to exceed
    $16 billion. GSA is responsible for more than $50 billion a year in
    Federal spending for property management and administrative services,
    and management of assets valued at $450 billion.
       In recent years, GSA has worked to develop a new Federal management
    model, focusing on performance measurement, accountability for agencies
    and employees, and the effective use of technology in changing work
    environments. GSA has established inter-agency groups to advise it on
    the policies, best practices, and performance benchmarks appropriate for
    each administrative service and information system. GSA's ultimate goal
    is a Federal Government in which agencies receive the administrative
    services they need, using the best known practices and at the least
    cost.
       As a provider of many administrative services, GSA seeks to exceed
    all Government-wide performance goals and industry benchmarks for these
    services, as these benchmarks are developed or identified. Its overall
    goals as a service provider are to exceed its customer agencies'
    expectations for price, service, and quality. In 2002:
       the Public Buildings Service plans to deliver 65 percent of
              its construction, and 82 percent of its repair projects on
              schedule and within budget, up from 60 and 78 percent in 2001,
              respectively;
       the Federal Technology Service projects a 15 percent
              reduction from 1999 rates in monthly line charges for local
              telephone service;
       the Federal Supply Service seeks to reduce its costs of
              operations in the Supply and Procurement Business Line by 17
              percent from 2000 costs; and
       the volume of purchases made with Federal charge cards is
              expected to total $20.4 billion, a 17-percent increase over
              2000.
       Because GSA provides services on a reimbursable basis, agency budgets
    fund most of GSA's activities. In 2002, for example, the Administration
    proposes $513 million (net discretionary budget authority) for GSA,
    primarily for the Office of Government-wide Policy, the Office of the
    Inspector General, and the construction of Federal buildings. However,
    the budget projects obligations of $18 billion through GSA's revolving
    funds. GSA also affects Federal spending through its delegation of
    authority for real property disposal, building operations, and the
    procurement of pharmaceuticals. In addition, GSA expects to administer
    contracts through which agencies will purchase more than $27 billion in
    goods and services outside of GSA's revolving funds.

    Office of Personnel Management (OPM)

       OPM provides human resource management leadership and services to
    Federal agencies and employees. The budget proposes a Federal civilian
    pay increase of 3.6 percent in 2002.
       OPM provides policy guidance, advice, and direct personnel services
    and systems to the agencies; operates USAJOBS, a worldwide job
    information and application system; oversees the Federal civil service
    merit system, covering nearly 1.8 million employees; and provides
    retirement, health benefit, and other insurance services to Federal
    employees, annuitants, and agencies. Several OPM programs and related
    performance measures are discussed elsewhere in the budget. For example,
    see Chapter 12 for a discussion of the health benefits program and
    Chapter 14 for a discussion of the retirement program.

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       In 2002, OPM plans to support a broad range of existing strategic
    human resources management tools and produce proposals for new and
    expanded tools to attract, develop, manage, and retain a productive work
    force. Such tools include compensation flexibilities, continual learning
    and skill development, work/life balance programs, and a supportive work
    environment. In this endeavor, OPM will explore best and innovative
    practices from both the private and other public sectors.
      In 2002, OPM expects to:
       implement a fully-functional, on-line work force planning
              system to meet the President's goal to flatten the Federal
              hierarchy and help Federal agencies align human resources with
              accomplishment of agency mission and objectives;
       expand access to Federal employment information by
              partnering, for the first time, with private sector companies
              to create links to the USAJOBS web site and maintain a 90
              percent or better customer satisfaction level among USAJOBS
              users;
       increase by 10 percent the number of agencies with human
              resources management accountability systems that are aligned
              with strategic mission and goals;
       complete implementation of the Federal Employees Health Care
              Protection Act of 1998, which includes mandatory and
              permissive debarments and civil monetary penalties for
              untrustworthy health care providers to sustain the integrity
              of the Federal Employees Health Benefits Fund; and
       conduct 15 nationwide agency oversight reviews, including
              reviews of Executive Branch agencies whose personnel are not
              covered by title 5 of the U.S. Code, and a number of small
              agencies to ensure Federal agencies use merit principles in
              hiring and other personnel actions.

    Office of Management and Budget (OMB)

       OMB assists the President by preparing the Federal budget and
    overseeing its execution in the departments and agencies. In helping
    formulate the President's spending plans, OMB coordinates the review and
    examines the effectiveness of agency programs, policies, and procedures;
    assesses competing funding demands among agencies; and provides policy
    options. OMB works to ensure that proposed legislation and agency
    testimony, reports, and policies are consistent with Administration
    policies, leveraging use of interagency programs and Councils. On behalf
    of the President, OMB often presents and justifies major policies and
    initiatives related to the budget and Government management before
    Congress. As such, it performs an important function in representing the
    President's position during negotiations with Congress over budget
    issues and spending levels.
       OMB and the Federal Government as a whole face enormous challenges to
    better manage a nearly $2 trillion budget, a Federal work force of 1.8
    million, a procurement budget of approximately $200 billion, and a
    growing regulatory burden. OMB is often called upon to provide policy
    options for the President on key issues of importance at home or abroad,
    such as the Nation's policy on education, social security, military
    readiness, or taxes.
       OMB has a central role in developing, overseeing, coordinating, and
    implementing Federal procurement, financial management, information, and
    regulatory policies. OMB helps to strengthen agency management, develop
    better performance measures, and improve coordination among Executive
    Branch agencies.
      OMB manages a number of significant Government-wide efforts. Examples
    include: (1) the Chief Financial Officers Act; (2) the Government
    Performance and Results Act, integrating budget and performance data and
    compiling a Government-wide performance plan; (3) the Government
    Management Reform Act, which has led to agencies issuing accountability
    reports for the first time; (4) the Clinger-Cohen Act, which requires
    information technology resources capital planning and investment
    control, with performance-based acquisition strategies, all linked to
    budget requests; and (5) the Federal Acquisition Streamlining Act, to
    improve the efficiency and results of the Federal Government's
    procurement efforts.

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       OMB produced the annual budget for 2002 using a state-of-the-art off-
    site secure data facility to improve efficiency and timeliness, and
    improve services to agency customers. OMB is investing in additional
    information technology applications to improve efficiency and
    effectiveness of the OMB's staff in completing an increasing workload
    under pressing deadlines.

    Tax Incentives

       The Federal Government provides significant tax incentives that
    benefit State and local governments. It permits tax-exempt borrowing for
    public purposes, costing $23.5 billion in Federal revenue losses in 2002
    and $122 billion over five years, from 2002 to 2006. (The budget
    describes tax-exempt borrowing for non-public purposes in chapters on
    other Government functions.) In addition, taxpayers can deduct State and
    local income taxes against their Federal income tax, costing $48.7
    billion in 2002 and $276 billion over five years. Corporations with
    business in Puerto Rico and other U.S. possessions receive a special tax
    credit, costing an estimated $2.6 billion in 2002 and $11.4 billion over
    four years. This tax credit is phasing out and will expire at the end of
    2005. Finally, up to certain limits, taxpayers can credit State
    inheritance and estate taxes against Federal estate taxes, costing $38
    billion over five years.