[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.