[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)
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Estimate
Function 800 2000 -----------------------------------------------------------
Actual 2001 2002 2003 2004 2005 2006
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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.