[Analytical Perspectives]
[Federal Receipts and Collections]
[4. User Fees and Other Collections]
[From the U.S. Government Publishing Office, www.gpo.gov]
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 and the financing of regulatory expenses. Some of these
collections are classified as user fees, which include the sale of
postage stamps and electricity, fees for admittance to national parks,
and premiums for deposit insurance; and some are other offsetting
collections or receipts, such as rents and royalties for the right to
extract oil from the Outer Continental Shelf.
Depending on the laws that authorize the collections, the collections
can be credited directly to expenditure accounts as ``offsetting
collections,'' or to receipt accounts as ``offsetting receipts.''
Usually offsetting collections are authorized to be spent for the
purposes of the account without further action by the Congress.
Offsetting receipts may or may not be earmarked for a specific purpose,
depending on the legislation that authorizes them, and the authorizing
legislation may either authorize them to be spent without further action
by the Congress, or require them to be appropriated in annual
appropriations acts before they can be spent.
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\
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\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 25: ``Budget System and Concepts and
Glossary'' in this volume.
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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 2002, total offsetting
collections and receipts from the public are estimated to be $222.1
billion, and total user fees are estimated to be $143.8 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)
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Estimate
2000 -----------------------
Actual 2001 2002
----------------------------------------------------------------------------------------------------------------
Gross outlays............................................................... 2,002.9 2,079.2 2,182.7
Offsetting collections and receipts from the public:
User fees \1\........................................................... 129.5 134.0 142.3
Other................................................................... 84.6 88.9 79.8
-----------------------------------
Subtotal, offsetting collections and receipts from the public............. 214.1 223.0 222.1
-----------------------------------
Net outlays................................................................. 1,788.8 1,856.2 1,960.6
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\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 receipts from the public.................... 129.5 134.0 142.3
Receipts............................................................... 1.3 1.4 1.5
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Total user fees.......................................................... 130.8 135.5 143.8
.......................................................................
[[Page 50]]
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 $130.8 billion in 2000, and are estimated to
increase to $135.5 billion in 2001 and to $143.8 billion in 2002,
growing to an estimated $171.3 billion in 2006, including the user fee
proposals that are shown in Table 4-3. This table shows that the
Administration is proposing to increase user fees by an estimated $0.6
billion in 2002, growing to an estimated $1.5 billion in 2006.
Definition. The term ``user fee'' as defined here is fees, charges,
and assessments levied on a class directly benefitting 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 benefitting 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.
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.
There has been a growth in user fees, and some have been classified by
law as offsetting collections when they more appropriately should have
been classified as governmental receipts. The classification of some
user fees as an offset to budget authority and outlays do not meet the
guidelines established by the 1967 President's Commission on Budget
Concepts that only business-type transactions should be classified as
offsetting collections. To the extent these collections are
inappropriately classified as an offset to Federal spending, they reduce
the size of Federal spending and governmental receipts. The
Administration plans to monitor and review the classification of user
fees and other types of collections.
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.
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\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.
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One alternative definition could be the broader concept of user
charges, as defined in OMB Circular A-25, ``User Charges,'' (July 8,
1993). User charges are fees assessed for the provision of Government
services and for the sale or use of Government goods or resources. The
payers of the user charge must be limited in the authorizing legislation
to those receiving special benefits from, or subject to regulation by,
the program or activity beyond the benefits received by the general
public or broad segments of the public (such as those who pay income
taxes or customs duties). The term is broader than user fees as defined
in this chapter because user charges encompass proceeds, whether or not
earmarked, from the sale or use of government goods and services,
including the sale of natural resources (such as timber, oil, and
minerals) and proceeds from asset sales (such as property, plant, and
equipment).
Other alternative definitions of user fees 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 selecting one or more
of the following:
--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.
[[Page 51]]
--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\
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\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.
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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 burden 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. In general, if the benefits accrue broadly to the public, 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 principle is relatively easy.
For example, according to this principle, 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, current policies support fees that cover
the full cost to the Government, including both direct and indirect
costs.\4\
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\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.
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The Executive Branch 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 2002 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 $142.3 billion in 2002, 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 $108.7 billion of user fees for 2002 are credited
directly to expenditure accounts, and are generally available for
expenditure when they are collected, without further action by the
Congress.
An estimated $33.7 billion of user fees for 2002 are deposited in
offsetting receipt accounts, and are available to be spent only
according to the legislation that established the fees.
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''
[[Page 52]]
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.
These and other classifications are discussed further in this volume
in Chapter 25, ``Budget System and Concepts and Glossary.''
II. Current User Fees
As shown in Table 4-2, total user fee collections (including those
proposed in this budget) are estimated to be $143.8 billion in 2002,
increasing to $171.3 billion in 2006. User fee collections by the Postal
Service and Medicare premiums are the largest and are estimated to be
almost two-thirds of total user fee collections in 2002.
User fee collections are used to offset outlays in both the
discretionary and mandatory parts of the budget. User fee collections
classified in the discretionary part of the budget are estimated to be
$17.2 billion in 2002, and those in the mandatory part are estimated to
be $125.1 billion in 2002.
III. User Fee Proposals
As shown in Table 4-3, the Administration is proposing new or
increased user fees that would increase collections by an estimated $0.6
billion in 2002, increasing to $1.5 billion in 2006.
A. User Fee Proposals to Offset Discretionary Spending
1. Offsetting collections
Department of Agriculture
Animal and Plant Health Inspection Service (APHIS).--The
Administration 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.
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.
Department of Health and Human Services
User fees for Medicare providers for processing paper claims and
duplicate or unprocessable claims.--The Administration is proposing new
user fees for providers for submitting paper claims and duplicate or
unprocessable claims. Under this proposal, providers would be charged
$1.50 for every paper claim submitted for payment. The fee is necessary
because processing paper claims is more costly than processing
electronic claims. Paper claim fees could be waived for rural and poor
providers.
The Health Care Financing Administration and its contractors go to
great lengths to ensure that providers are aware of billing requirements
and the need to submit accurate claims. Charging a $1.50 fee for
duplicate or unprocessable claims would heighten provider awareness of
these issues and increase efficiency by deterring this action.
Fees for export certification of foods and for import program
operations.--The Administration is proposing new user fees for export
certification of foods and for import program operations. Spending
financed by these fees would be in addition to regular appropriations.
The Food and Drug Administration currently assesses user fees for non-
food regulated products when export certifications are requested by
industry.
2. Offsetting receipts
Department of Housing and Urban Development
User fees to finance inspection of manufactured housing.--The
Administration is proposing inspection fees that would finance Federal
formulation and enforcement of standards in manufactured housing. These
fees are authorized by the Manufactured Housing Improvement Act of 2000
and replace fees previously authorized by the National Manufactured
Housing Construction and Safety Standards Act of 1974.
Department of Justice
Increase immigration inspection user fees.--Congress established this
user fee to cover the full cost of air and sea passenger inspections.
The Administration proposes to increase the per passenger inspection fee
from $6 to $7 and phase out the exemption from the inspection fee for
cruise ship passengers--establishing a $3 fee in 2002. The increase will
be used to defray inspection expenses of the Immigration and
Naturalization Service.
Department of Transportation
Hazardous materials transportation safety fees.--Beginning in 2002,
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. Appropriation legislation is
proposed to increase the fees paid by shippers and carriers of hazardous
materials in 2002 to fund these safety activities.
[[Page 53]]
Table 4-2. TOTAL USER FEE COLLECTIONS
(In millions of dollars)
----------------------------------------------------------------------------------------------------------------
Estimates
2000 -----------------------------------------------------------
Actual 2001 2002 2003 2004 2005 2006
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Receipts
Agricultural quarantine inspection fees... 234 240 246 252 259 266 272
Corps of Engineers, Harbor maintenance 678 741 781 825 865 900 946
trust fund...............................
Other governmental receipts user fees..... 413 469 455 457 464 474 477
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Subtotal, governmental receipts......... 1,325 1,450 1,482 1,534 1,588 1,640 1,695
Offsetting Collections and Receipts from
the Public
Discretionary
Department of Agriculture: Food safety 177 189 200 197 197 197 198
inspection and other fees..............
Department of Commerce: Patent and 1,156 1,315 1,500 1,616 1,765 1,926 2,137
trademark, fees for weather services,
and other fees.........................
Department of Defense: Commissary and 7,376 7,353 7,248 7,155 7,155 7,155 7,155
other fees.............................
Department of Energy: Federal Energy 594 787 1,223 632 621 590 597
Regulation Commission, power marketing,
and other fees.........................
Department of Health and Human Services: 337 276 413 418 428 438 448
Food and Drug Administration, Health
Care Financing Administration, and
other fees.............................
Department of the Interior: Bureau of 215 231 219 219 219 219 219
Land Management and other fees.........
Department of Justice: Antitrust and 328 361 548 585 585 585 585
other fees.............................
Department of State: Passport and other 478 485 490 490 490 490 490
fees...................................
Department of Transportation: Railroad 131 139 216 282 286 292 297
safety and other fees..................
Department of the Treasury: Sale of 1,833 1,513 1,619 1,697 1,721 1,746 1,772
commemorative coins and other fees.....
Department of Veterans Affairs: Medical 576 611 623 633 643 653 663
care and other fees....................
National Aeronautics and Space 846 839 881 881 881 881 881
Administration: Reimbursement for the
use of NASA services...................
Federal Communications Commission: 192 200 219 219 219 219 219
Regulatory fees........................
Federal Trade Commission: Regulatory 106 159 207 207 207 207 207
fees...................................
Nuclear Regulatory Commission: 447 453 469 475 482 488 506
Regulatory fees........................
Panama Canal Commission: Fees for use of 220 ........ ........ ........ ........ ........ ........
the canal..............................
Securities and Exchange Commission: 862 974 983 1,054 1,079 1,200 1,337
Regulatory fees........................
All other agencies, discretionary user 133 134 175 179 180 185 187
fees...................................
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Subtotal, discretionary user fees..... 16,007 16,019 17,233 16,939 17,158 17,471 17,898
Mandatory
Department of Agriculture: Federal crop 895 1,339 1,338 1,402 1,440 1,502 1,563
insurance and other fees...............
Department of Defense: Commissary 279 277 283 293 277 277 277
surcharge and other fees...............
Department of Energy: Proceeds from the 4,078 3,703 3,831 3,960 3,907 3,921 3,984
sale of energy, nuclear regulatory
fees, and other fees...................
Department of Health and Human Services: 21,916 23,442 27,044 29,905 31,503 35,029 37,951
Medicare Part B insurance premiums, and
other fees.............................
Department of the Interior: Recreation 583 630 619 648 652 657 658
and other fees.........................
Department of Justice: Immigration and 1,480 2,036 1,972 1,906 1,814 1,818 1,823
other fees.............................
Department of Labor: Insurance premiums 922 951 845 835 845 843 839
to guarantee private pensions..........
Department of the Treasury: Customs, 1,881 1,929 1,985 2,046 666 681 693
bank regulation, and other fees........
Department of Veterans Affairs: Veterans 1,629 1,674 1,823 1,932 1,883 1,842 1,802
life insurance, medical collections,
and other fees.........................
Corps of Engineers: Recreation and other 37 36 51 57 62 67 67
fees...................................
Federal Emergency Management Agency: 1,475 1,553 1,640 1,808 1,936 2,118 2,343
Flood insurance fees...................
Office of Personnel Management: Federal 6,694 7,278 7,974 8,612 9,308 9,987 10,684
employee health and life insurance fees
Federal Communications Commission: ........ ........ 200 200 200 200 200
Analog spectrum lease fee..............
Federal Deposit Insurance Corporation: 759 559 963 1,748 2,552 3,543 5,573
Deposit insurance fees.................
Postal Service: Fees for postal services 63,529 65,498 67,095 69,350 71,500 73,350 75,100
Tennessee Valley Authority: Proceeds 6,928 6,795 7,127 7,341 7,424 7,675 7,811
from the sale of energy................
All other agencies, mandatory user fees. 363 324 312 328 336 347 354
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Subtotal, mandatory user fees......... 113,448 118,024 125,102 132,371 136,305 143,857 151,722
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Subtotal, offsetting collections and 129,455 134,043 142,335 149,310 153,463 161,328 169,620
receipts from the public...............
=====================================================================
Total, User fees.......................... 130,780 135,493 143,817 150,844 155,051 162,968 171,315
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[[Page 54]]
Pipeline safety fees.--This proposal would increase the existing
pipeline safety user fees to support increased activities in the
Pipeline Integrity Management and the Oil Spill Prevention and Response
programs.
Railroad safety user fees.--This proposal would fund Federal Railroad
Administration safety inspections and the safety component of the
railroad research and development program. The fees would be collected
from the primary beneficiaries of these services, the railroad carriers,
and be based upon a calculation of their usage as established through
regulations. The estimated 2002 collections are 50 percent of the
anticipated cost of safety services. In subsequent years these services
would be fully funded with user fees.
Environmental Protection Agency
Abolish cap on pre-manufacturing notification fees.--EPA collects fees
from chemical manufacturers seeking to bring new chemicals into
commerce. These fees are authorized by the Toxic Substances Control Act
and are now subject to an outdated statutory cap. The Administration is
proposing authorizing and appropriations language to modify the cap so
that EPA can increase fees to fully cover the cost of the program.
Nuclear Regulatory Commission
Extend NRC fees at their 2005 level for 2006 and later.--The Omnibus
Budget Reconciliation Act (OBRA) of 1990, as amended, required that the
NRC assess license and annual fees that recover approximately 98 percent
of its budget authority in 2001, less the appropriation from the nuclear
waste fund. Licensees are required to reimburse NRC for its services
because licensees benefit from such services.
Under recent amendments to OBRA, the budget authority recovery
requirement decreases by 2 percentage points per year until it reaches
90 percent in 2005. After 2005, the requirement reverts to 33 percent
per
Table 4-3. USER FEE PROPOSALS
(Estimated collections in millions of dollars)
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2002 2003 2004 2005 2006 2002-2006
----------------------------------------------------------------------------------------------------------------
A. USER FEE PROPOSALS TO OFFSET DISCRETIONARY SPENDING
1. Offsetting collections
Department of Agriculture
Animal and Plant Health Inspection Service............ 5 5 5 5 6 26
Grain Inspection, Packers and Stockyards 4 4 4 4 4 20
Administration.......................................
Department of Health and Human Services
User fees for Medicare providers for processing paper 95 90 90 90 90 455
claims and duplicate or unprocessable claims.........
Fees for export certification of foods and for import 20 21 22 23 24 110
program operations...................................
2. Offsetting receipts
Department of Housing and Urban Development
User fees to finance inspection of manufactured 17 17 17 18 18 87
housing..............................................
Department of Justice
Increase immigration inspection user fees............. 109 109 109 109 109 545
Department of Transportation
Hazardous materials transportation safety fees........ 12 22 22 23 24 103
Pipeline safety fees.................................. 9 9 9 9 7 43
Railroad safety user fees............................. 55 110 113 116 119 513
Environmental Protection Agency
Abolish cap on pre-manufacturing notification fees.... 4 8 8 8 8 36
Nuclear Regulatory Commission
Extend NRC fees at their 2005 level for 2006 and later ....... ....... ....... ....... 321 321
-------------------------------------------------------
Subtotal, user fee proposals to offset discretionary 330 395 399 405 730 2,259
spending...............................................
B. USER FEE PROPOSALS TO OFFSET MANDATORY SPENDING
1. Offsetting collections
Federal Emergency Management Agency
Phase out subsidized premiums for certain flood 7 26 71 167 302 573
insurance coverage and remove repetitive loss
properties from the flood insurance program........
Federal Deposit Insurance Corporation
State bank examination fees......................... 92 97 101 106 112 508
2. Offsetting receipts
Department of Agriculture
Forest Service recreation and entrance fees......... ....... 38 40 42 44 164
Department of the Interior
Recreation entrance fees............................ ....... 75 76 74 75 300
Corps of Engineers
Recreation user fee increases....................... 10 15 20 25 25 95
Federal Communications Commission
Analog spectrum lease fee........................... 200 200 200 200 200 1,000
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Subtotal, user fee proposals to offset mandatory 309 451 508 614 758 2,640
spending...........................................
-------------------------------------------------------
Total, user fee proposals......................... 639 846 907 1,019 1,488 4,899
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[[Page 55]]
year. If the 90 percent requirement is not extended beyond 2005, fees
would drop from an estimated $488 million in 2005 to $185 million in
2006; with the proposed extension at 90 percent, fees would be an
estimated $506 million in 2006, a proposed increase of $321 million.
B. User Fee Proposals to Offset Mandatory Spending
1. Offsetting collections
Federal Emergency Management Agency
Phase out subsidized premiums for certain flood insurance coverage.--
The Administration proposes phasing out subsidized premium rates for
vacation homes, rental properties, and other non-primary residences and
businesses starting in 2002. FEMA charges many of these policy holders
less than actuarial rates, which undermines the financial stability of
the insurance program. Rates for primary residences, which represent a
majority of policies in the program, would not change under this
proposal.
Remove repetitive loss properties from the flood insurance program.--
The Administration proposes to remove several thousand properties from
the program. These properties have been flooded repeatedly but
nevertheless still benefit from subsidized premiums. Starting in 2002,
owners of targeted properties may make one more claim for a flood loss.
Subsequently, those properties will be ineligible to receive coverage.
While net savings from avoided claims are estimated to be significant,
the proposal will also generate a PAYGO cost from lost premium revenue
as properties are removed from the program.
Federal Deposit Insurance Corporation
State bank examination fees.--The Administration proposes to require
the Federal Deposit Insurance Corporation and the Federal Reserve to
recover their respective costs for supervision and regulation of State-
chartered banks and bank holding companies. The proposal would eliminate
the subsidization of State banks by national banks and taxpayers, treat
State and federally chartered financial institutions the same, and
reduce the incentive for federally-chartered banks to convert to State
charters solely to avoid assessments.
Currently, the FDIC pays for its supervision and regulatory expenses
with the deposit insurance premiums that all banks pay, including
national banks. Additional income from the proposal would be realized as
offsetting collections. The Federal Reserve uses its interest earnings
to pay its supervision and regulatory costs, consequently transferring
less money to the Treasury. Therefore, deposits of earnings by the
Federal Reserve, which are classified as governmental receipts, would
increase under this proposal. This estimated increase in recoveries is
in addition to the amounts shown on Table 4-3.
2. Offsetting receipts
Department of Agriculture
Forest Service recreation and entrance fees.--The Administration
proposes to extend for four years, for 2003 through 2006, the current
pilot program that allows the Forest Service to collect increased
recreation and entrance fees. These receipts would be available for use
without further appropriation and are necessary to maintain and improve
recreation facilities and services. A similar proposal affects
recreation fees for the National Park Service, the Bureau of Land
Management, and the Fish and Wildlife Service in the Department of the
Interior.
Department of the Interior
Recreation entrance fees.--The Administration proposes to extend for
four years, for 2003 through 2006, the current pilot program that allows
the National Park Service, the Bureau of Land Management, and the Fish
and Wildlife Service to collect increased recreation and entrance fees.
These receipts would be available for use without further appropriation,
and approximately 60 percent of National Park Service receipts would be
used to reduce its deferred maintenance backlog. A related proposal
affects recreation fees for the Forest Service in the Department of
Agriculture.
Corps of Engineers
Recreation user fee increases.--The Administration proposes to phase
in recreation user fee increases with the entire increase available
without further legislative action for spending on operation,
maintenance, and improvement of the recreation facilities of the Corps
of Engineers. Some increases in fee receipts can be accomplished without
changes to existing legislation. Other increases will require
legislation to increase limits on existing recreation user fees,
authorize new fees, or reclassify existing fees. In addition, the
Administration recommends extending the recreation demonstration
program, which allows recreation fee revenues above a baseline of $34
million per year to be used by the Corps for operation and maintenance
of recreation facilities. The Corps spends about $250 million per year
on these activities.
Recreation fee increases to boost agency expenditures on recreation
and maintenance of facilities have been enacted in recent years for
other agencies such as the National Park Service in the Department of
the Interior and the Forest Service in the Department of Agriculture. A
similar proposal affects recreation fees for these programs.
Federal Communications Commission
Analog spectrum lease fee.--The Administration supports establishing a
lease fee on commercial television broadcasters' use of the analog
spectrum until broadcasters complete the transition to digital
broadcasting and return their analog spectrum licenses to the FCC. The
proposal would encourage a timely transition to
[[Page 56]]
digital broadcasting and have television broadcasters reimburse the
public for use of this scarce resource.
OTHER OFFSETTING COLLECTIONS AND RECEIPTS
Table 4-4 shows that total offsetting collections and receipts from
the public are estimated to be $222.1 billion in 2002. Of these, an
estimated $143.7 billion are offsetting collections credited to
appropriation accounts and an estimated $78.4 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, military assistance program sales, 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 $428.3 billion
in 2002--$349.9 billion are intragovernmental transactions, and $78.4
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 57]]
Table 4-4. OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
(In millions of dollars)
------------------------------------------------------------------------
Estimate
2000 Actual ---------------------------
2001 2002
------------------------------------------------------------------------
Offsetting collections:
User fees:
Postal service stamps and 63,529 65,498 67,095
other postal fees........
Defense Commissary Agency. 5,087 5,282 5,209
Federal employee 5,263 5,817 6,436
contributions for
employees and retired
employees health benefits
funds....................
Sale of energy:
Tennessee Valley 6,928 6,795 7,127
Authority..............
Bonneville Power 2,995 2,732 2,929
Administration.........
All other user fees.......
17,989 18,229 19,864
-----------------------------------------
Subtotal, user fees..... 101,791 104,353 108,660
Other offsetting
collections:
Pre-credit reform loan 15,864 15,563 14,847
repayments...............
Supplemental security 3,399 3,570 3,665
income (collections from
the States)..............
Federal Savings and Loan 2,638 1,670 1,102
Insurance Corporation
resolution fund..........
Other collections......... 17,672 15,935 15,423
-----------------------------------------
Subtotal, other 39,573 36,738 35,037
offsetting collections.
-----------------------------------------
Subtotal, offsetting 141,364 141,091 143,697
collections..............
Offsetting receipts:
User fees:
Medicare premiums and 21,907 23,433 27,014
other charges............
All other user fees.......
5,757 6,257 6,661
-----------------------------------------
Subtotal, user fees.....
27,664 29,690 33,675
Other offsetting receipts:
Spectrum auction receipts. 150 1,572 1,760
Military assistance 11,362 11,340 11,450
program sales............
OCS rents, bonuses, and 4,580 6,931 5,884
royalties................
Interest income........... 13,207 13,091 13,837
All other offsetting 15,743 19,266 11,800
receipts.................
-----------------------------------------
Subtotal, other 45,042 52,200 44,731
offsetting receipts....
-----------------------------------------
Subtotal, offsetting 72,706 81,890 78,406
receipts...................
=========================================
Total, offsetting collections 214,070 222,981 222,103
and receipts from the public.
Total, offsetting collections 150,497 157,439 154,964
and receipts excluding off-
budget.......................
ADDENDUM:
User fees that are 129,455 134,043 142,335
offsetting collections and
receipts\1\................
Other offsetting collections 84,615 88,938 79,768
and receipts from the
public.....................
-----------------------------------------
Total, offsetting 214,070 222,981 222,103
collections and 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 58]]
Table 4-5. OFFSETTING RECEIPTS BY TYPE
(In millions of dollars)
----------------------------------------------------------------------------------------------------------------
Estimate
Source 2000 -----------------------------------------------------------------------
Actual 2001 2002 2003 2004 2005 2006
----------------------------------------------------------------------------------------------------------------
INTRAGOVERNMENTAL
TRANSACTIONS
On-budget receipts:
Federal intrafund
transactions:
Distributed by agency:
Interest from the 1,974 2,035 2,136 1,830 2,160 2,387 2,535
Federal Financing
Bank.................
Interest on Government 1,867 1,339 1,524 1,187 1,073 1,010 948
capital in
enterprises..........
DoD retiree health .......... .......... .......... 9,036 9,397 9,773 10,164
care fund............
Credit subsidy balance .......... 10,637 439 482 667 861 1,059
transfers............
Other................. 2,383 1,974 1,988 2,077 2,183 2,280 2,362
Undistributed by agency:
DoD retiree health .......... .......... .......... 2,943 3,072 3,211 3,355
care fund............
-----------------------------------------------------------------------------------
Total Federal 6,224 15,985 6,087 17,555 18,552 19,522 20,423
intrafunds...........
-----------------------------------------------------------------------------------
Trust intrafund
transactions:
Distributed by agency:
Payments to railroad 3,697 3,215 3,812 3,838 3,838 3,853 3,679
retirement...........
Other................. 1 1 1 1 1 1 1
-----------------------------------------------------------------------------------
Total trust intrafunds 3,698 3,216 3,813 3,839 3,839 3,854 3,680
-----------------------------------------------------------------------------------
Total intrafund 9,922 19,201 9,900 21,394 22,391 23,376 24,103
transactions...........
-----------------------------------------------------------------------------------
Interfund transactions:
Distributed by agency:
Federal fund payments
to trust funds:
Contributions to
insurance programs:
Military 15,302 16,089 16,653 17,235 17,839 18,463 19,110
retirement fund..
Supplementary 65,561 69,777 81,332 88,779 92,549 102,042 110,380
medical insurance
Proposed .......... .......... -70 -75 -70 -70 -70
legislation
(non-PAYGO)....
Hospital insurance 9,450 8,030 8,596 9,107 9,839 10,560 11,358
Proposed .......... .......... -106 -304 -461 -662 -821
legislation
(non-PAYGO)....
Railroad social 141 106 113 124 134 145 152
security
equivalent fund..
Proposed .......... .......... -1 -3 -6 -8 -11
legislation
(non-PAYGO)....
Rail industry 318 229 234 241 247 254 262
pension fund.....
Proposed .......... .......... -5 -12 -15 -23 -27
legislation
(non-PAYGO)....
Civilian 21,808 22,056 22,724 23,183 23,869 24,563 25,042
supplementary
retirement
contributions....
Unemployment 397 466 483 478 478 482 495
insurance........
Other 518 574 466 443 444 444 474
contributions....
-----------------------------------------------------------------------------------
Subtotal.......... 113,495 117,327 130,419 139,196 144,847 156,190 166,344
-----------------------------------------------------------------------------------
Miscellaneous 956 1,443 819 864 876 893 912
payments...........
Proposed .......... .......... -11 -11 -12 -12 -12
legislation (non-
PAYGO)...........
-----------------------------------------------------------------------------------
Subtotal............ 114,451 118,770 131,227 140,049 145,711 157,071 167,244
-----------------------------------------------------------------------------------
Trust fund payments to
Federal funds:
Quinquennial .......... 836 .......... .......... .......... .......... ..........
adjustment for
military service
credits............
Other............... 1,078 2,496 1,186 1,214 1,241 1,271 1,303
-----------------------------------------------------------------------------------
Subtotal............ 1,078 3,332 1,186 1,214 1,241 1,271 1,303
-----------------------------------------------------------------------------------
Total interfunds 115,529 122,102 132,413 141,263 146,952 158,342 168,547
distributed by agency
-----------------------------------------------------------------------------------
Undistributed by agency:
Employer share,
employee retirement
(on-budget):
Civil service 9,611 10,316 10,679 10,585 11,174 11,843 12,547
retirement and
disability
insurance (CSRDI)..
Proposed .......... .......... .......... 469 482 449 415
legislation (non-
PAYGO)...........
CSRDI from Postal 6,445 6,768 6,854 6,975 7,111 7,249 7,327
Service............
Hospital insurance 1,991 2,038 2,127 2,229 2,337 2,470 2,574
(contribution as
employer) \1\ .....
Postal employer 639 655 682 711 742 774 807
contributions to
FHI................
Military retirement 11,402 11,369 12,166 12,622 13,098 13,567 14,040
fund...............
Other Federal 126 130 134 138 142 147 152
employees
retirement.........
-----------------------------------------------------------------------------------
Total employer 30,214 31,276 32,642 33,729 35,086 36,499 37,862
share, employee
retirement (on-
budget)............
-----------------------------------------------------------------------------------
[[Page 59]]
Interest received by 69,113 73,662 76,317 80,272 84,695 88,974 93,634
on-budget trust
funds..............
Proposed .......... .......... -1 -76 -162 -261 -359
legislation (non-
PAYGO)...........
-----------------------------------------------------------------------------------
Total interfund 99,327 104,938 108,958 113,925 119,619 125,212 131,137
transactions
undistributed by
agency...............
-----------------------------------------------------------------------------------
Total interfund 214,856 227,040 241,371 255,188 266,571 283,554 299,684
transactions...........
-----------------------------------------------------------------------------------
Total on-budget receipts.. 224,778 246,241 251,271 276,582 288,962 306,930 323,787
-----------------------------------------------------------------------------------
Off-budget receipts:
Trust intrafund
transactions:
Distributed by agency:
Interfund transactions:
Distributed by agency:
Federal fund payments
to trust funds:
Old-age, survivors, 13,252 12,541 13,734 14,876 16,076 17,230 18,428
and disability
insurance..........
Proposed .......... .......... -140 -418 -645 -921 -1,169
legislation (non-
PAYGO)...........
Undistributed by agency:
Employer share, 7,637 7,877 8,917 9,161 9,868 10,706 11,443
employee retirement
(off-budget).......
Interest received by 59,796 68,886 76,086 85,421 95,855 107,348 120,111
off-budget trust
funds..............
-----------------------------------------------------------------------------------
Total off-budget receipts: 80,685 89,304 98,597 109,040 121,154 134,363 148,813
-----------------------------------------------------------------------------------
Total intragovernmental 305,463 335,545 349,868 385,622 410,116 441,293 472,600
transactions...............
===================================================================================
PROPRIETARY RECEIPTS FROM
THE PUBLIC
Distributed by agency:
Interest:
Interest on foreign 472 771 706 694 688 680 663
loans and deferred
foreign collections....
Interest on deposits in 1,785 1,455 1,340 1,340 1,340 1,340 1,340
tax and loan accounts..
Other interest 9,598 10,865 11,791 12,445 13,323 14,062 14,561
(domestic--civil) \2\ .
-----------------------------------------------------------------------------------
Total interest.......... 11,855 13,091 13,837 14,479 15,351 16,082 16,564
-----------------------------------------------------------------------------------
Royalties and rents....... 1,639 2,298 2,093 2,074 2,096 2,113 2,096
-----------------------------------------------------------------------------------
Sale of products:
Sale of timber and other 293 445 440 449 439 440 440
natural land products..
Sale of minerals and 23 32 31 21 27 25 24
mineral products.......
Sale of power and other 735 775 690 722 699 681 707
utilities..............
Other................... 64 58 79 74 64 82 77
-----------------------------------------------------------------------------------
Total sale of products.. 1,115 1,310 1,240 1,266 1,229 1,228 1,248
-----------------------------------------------------------------------------------
Fees and other charges for
services and special
benefits:
Medicare premiums and 21,907 23,433 27,034 29,896 31,494 35,020 37,942
other charges (trust
funds).................
Proposed legislation .......... .......... -20 -25 -25 -25 -25
(non-PAYGO)..........
Nuclear waste disposal 702 620 640 625 612 637 621
revenues...............
Veterans life insurance 201 190 179 168 156 142 128
(trust funds)..........
Other \2\ .............. 2,349 2,750 2,757 2,875 2,926 3,001 3,056
Proposed legislation .......... .......... 10 128 136 141 144
(PAYGO)..............
-----------------------------------------------------------------------------------
Total fees and other 25,159 26,993 30,600 33,667 35,299 38,916 41,866
charges................
-----------------------------------------------------------------------------------
Sale of Government
property:
Sale of land and other 45 149 458 117 114 114 113
real property..........
Military assistance 11,362 11,340 11,450 11,470 11,230 11,020 10,940
program sales (trust
funds).................
Other................... 94 332 192 183 142 171 129
-----------------------------------------------------------------------------------
Total sale of Government 11,501 11,821 12,100 11,770 11,486 11,305 11,182
property...............
-----------------------------------------------------------------------------------
Realization upon loans and
investments:
Negative subsidies and 5,007 8,054 818 3,449 3,717 3,749 3,686
downward reestimates of
credit subsidies.......
Repayment of loans to 138 291 70 85 88 94 108
foreign nations........
Other................... 95 67 114 94 90 86 82
-----------------------------------------------------------------------------------
Total realization upon 5,240 8,412 1,002 3,628 3,895 3,929 3,876
loans and investments..
-----------------------------------------------------------------------------------
[[Page 60]]
Recoveries and refunds \2\ 3,854 3,296 3,352 3,381 3,498 3,680 3,485
.........................
Miscellaneous receipt 2,876 1,955 1,878 1,884 1,893 1,896 1,906
accounts \2\ ............
-----------------------------------------------------------------------------------
Total proprietary receipts 63,239 69,176 66,102 72,149 74,747 79,149 82,223
from the public
distributed by agency....
-----------------------------------------------------------------------------------
Undistributed by agency:
Other interest: Interest 1,352 .......... .......... .......... .......... .......... ..........
received from Outer
Continental Shelf escrow
account..................
Rents, bonuses, and
royalties:
Outer Continental Shelf 894 505 637 383 322 270 229
rents and bonuses......
Outer Continental Shelf 3,686 6,426 5,247 4,975 4,863 4,701 4,607
royalties..............
Arctic National Wildlife
Refuge:
Proposed legislation .......... .......... .......... .......... 2,402 2 2
(PAYGO)..............
Sale of major assets...... .......... .......... .......... 323 .......... .......... ..........
-----------------------------------------------------------------------------------
Total proprietary receipts 5,932 6,931 5,884 5,681 7,587 4,973 4,838
from the public
undistributed by agency..
-----------------------------------------------------------------------------------
Total proprietary receipts 69,171 76,107 71,986 77,830 82,334 84,122 87,061
from the public............
===================================================================================
OFFSETTING GOVERNMENTAL
RECEIPTS
Distributed by agency:
Regulatory fees \2\ ...... 3,310 4,134 4,310 4,306 2,432 2,439 2,454
Proposed legislation .......... .......... 71 140 143 147 151
(non-PAYGO)............
Other..................... 75 77 79 81 84 86 88
Undistributed by agency:
Spectrum auction proceeds. 150 1,572 4,360 9,665 9,670 1,275 680
Proposed legislation .......... .......... -2,400 -800 5,300 2,200 4,200
(PAYGO)................
-----------------------------------------------------------------------------------
Total offsetting 3,535 5,783 6,420 13,392 17,629 6,147 7,573
governmental receipts....
===================================================================================
Total offsetting receipts... 378,169 417,435 428,274 476,844 510,079 531,562 567,234
===================================================================================
MEMORANDUM
Composition of proprietary
receipts from the public
On-budget:
Federal funds............. 34.468 39,908 32,162 35,149 38,316 36,805 36,935
Trust funds............... 34,651 36,115 39,740 42,594 43,928 47,223 50,029
Off-budget.................. 52 84 84 87 90 94 97
----------------------------------------------------------------------------------------------------------------
\1\ Includes provision for covered Federal civilian employees and military personnel.
\2\ Includes both Federal funds and trust funds.