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

    [[Page 83]]

                       5. 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\
    ---------------------------------------------------------------------------
      \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.
    ---------------------------------------------------------------------------
      Offsetting collections and receipts include most user fees, which are
    discussed below, as well as some amounts that are not user fees. Table
    5-1 summarizes these transactions. For 2003, total offsetting
    collections and receipts from the public are estimated to be $231.2
    billion, and total user fees are estimated to be $154.3 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 21-1, ``Outlays to the
    Public, Net and Gross,'' which appears in Chapter 21 of this volume.

    Table 5-1.  GROSS OUTLAYS, USER FEES, OTHER OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC, AND NET OUTLAYS
                                                (In billions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                     Estimate
                                                                                     2001    -----------------------
                                                                                    Actual       2002        2003
    ----------------------------------------------------------------------------------------------------------------
    Gross outlays...............................................................     2,084.5     2,275.7     2,359.5
      Offsetting collections and receipts from the public:
        User fees \1\...........................................................      -132.1      -140.2      -152.7
        Other...................................................................       -88.4       -83.2       -78.5
                                                                                 -----------------------------------
      Subtotal, offsetting collections and receipts from the public.............      -220.6      -223.4      -231.2
                                                                                 -----------------------------------
    Net outlays.................................................................     1,863.9     2,052.3     2,128.2
    ----------------------------------------------------------------------------------------------------------------
    \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 5-
      2. ``Total User Fee Collections.''

    Total user fees:
      Offsetting collections and receipts from the public....................        132.1        140.2        152.7
      Receipts...............................................................          1.5          1.5          1.6
                                                                              --------------------------------------
    Total, user fees.........................................................        133.7        141.6        154.3

    [[Page 84]]

                                    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 5-2
    shows that user fees were $133.7 billion in 2001, and are estimated to
    increase to $141.6 billion in 2002 and to $154.3 billion in 2003,
    growing to an estimated $176.9 billion in 2007, including the user fee
    proposals that are shown in Table 5-3. This table shows that the
    Administration is proposing to increase user fees by an estimated $1.5
    billion in 2003, growing to an estimated $2.9 billion in 2007.
      Definition. The term ``user fee'' as defined here is fees, charges,
    and assessments levied on groups or individuals 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.
      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. Much of the discussion of user fees below--their
    purpose, when they should be levied, and how the amount should be set--
    applies to these alternatives as well.
    ---------------------------------------------------------------------------
      \2\ The definition of user fees 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.
    ---------------------------------------------------------------------------
      OMB uses the broader concept of ``user charges'' to establish policy
    for charging prices to the public for the sale or use of goods,
    services, property, and resources (see OMB Circular A-25, ``User
    Charges,'' July 8, 1993). User charges are all amounts assessed for the
    provision of Government services and for the sale or use of Government
    goods, property, 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 in two ways.
    First, user charges encompass proceeds from the sale of government goods
    and services regardless of whether they are earmarked to fund the
    specific program or activity for which they are charged. Second, the
    term includes proceeds from the sale of natural resources (such as
    timber, oil, and minerals) and asset sales (such as property, plant, and
    equipment) as well as goods and services.
      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.
        interpret more broadly whether a program has private
              beneficiaries, or whether the proceeds are earmarked to
              benefit directly those paying the fee. A broader
              interpretation might include beneficiary- or liability-based
              excise taxes.\3\
    ---------------------------------------------------------------------------
      \3\ Beneficiary- and liability-based taxes are terms taken from the
    Congressional Budget Office, The Growth of Federal User Charges, August
    1993, and updated in October 1995. Examples of beneficiary-based taxes
    include taxes on gasoline, which finance grants to States for highway
    construction, or taxes on airline tickets, which finance air traffic
    control activities and airports. An example of a liability-based tax is
    the excise tax that formerly helped fund the hazardous substance
    superfund in the Environmental Protection Agency. This tax was paid by
    industry groups to finance environmental cleanup activities related to
    the industry activity but not necessarily caused by the payer of the
    fee.
    ---------------------------------------------------------------------------
      What is the purpose of user fees? The purpose of user fees is to
    improve the efficiency and equity of certain Government activities, and
    to reduce the 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.

    [[Page 85]]

      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\
    ---------------------------------------------------------------------------
      \4\ Policies for setting user charges are promulgated in OMB Circular
    No. A-25: ``User Charges'' (July 8, 1993). These policies are required
    regardless of whether or not the proceeds are earmarked to finance the
    related activity.
    ---------------------------------------------------------------------------
      The 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 5-1, 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 $1.6 billion in 2003 are classified this way and are
    included in the totals described in Chapter 4. ``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 $152.7 billion in 2003, 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 $108.8 billion of user fees for 2003 are credited
    directly to expenditure accounts, and are generally available for
    expenditure when they are collected, without further action by the
    Congress. An estimated $43.9 billion of user fees for 2003 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 accompanying Tables 5-2 and 5-3
    identify the fees as discretionary or mandatory. These classifications
    are terms from the Budget Enforcement Act of 1990 as amended and are
    used frequently in the analysis of the budget. ``Discretionary'' in this
    chapter refers to fees generally controlled through annual
    appropriations acts and under the jurisdiction of the appropriations
    committees in the Congress. These fees offset discretionary spending
    under the discretionary caps. ``Mandatory'' refers to fees controlled by
    permanent laws and under the jurisdiction of the authorizing committees.
    These fees are subject to rules of paygo, whereby changes in law
    affecting mandatory programs and receipts cannot result in a net cost.
    Mandatory spending is sometimes referred to as direct spending.
      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 5-2, total user fee collections (including those
    proposed in this budget) are estimated to be $154.3 billion in 2003,
    increasing to $176.9 billion in 2007. 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 2003.

    [[Page 86]]

                                         Table 5-2.  TOTAL USER FEE COLLECTIONS
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimates
                                                  2001   -----------------------------------------------------------
                                                 Actual     2002      2003      2004      2005      2006      2007
    ----------------------------------------------------------------------------------------------------------------
                     Receipts

    Agricultural quarantine inspection fees...       265       215       260       259       266       272       279
    Corps of Engineers, Harbor maintenance           722       733       823       839       909       972     1,005
     fees.....................................
    Other governmental receipts user fees.....       545       515       532       538       548       552       559
                                               ---------------------------------------------------------------------
      Subtotal, receipts......................     1,532     1,463     1,615     1,636     1,723     1,796     1,843

     Offsetting Collections and Receipts from
                    the Public
    Discretionary

      Department of Agriculture: Food safety         153       185       221       233       238       241       246
       inspection and other fees..............
      Department of Commerce: Patent and           1,366     1,665     1,826     1,985     2,145     2,299     2,405
       trademark, fees for weather services,
       and other fees.........................
      Department of Defense: Commissary and        5,834     5,828     6,052     6,052     6,052     6,052     6,052
       other fees.............................
      Department of Energy: Federal Energy           917     1,297     1,276     1,303     1,329     1,362     1,393
       Regulatory Commission, power marketing,
       and other fees.........................
      Department of Health and Human Services:       273       294       529       531       543       545       549
       Food and Drug Administration, Centers
       for Medicare and Medicaid Services, and
       other fees.............................
      Department of the Interior: Minerals           212       210       209       212       217       223       227
       Management Service and other fees......
      Department of Justice: Antitrust and           304       414       435       441       446       452       458
       other fees.............................
      Department of State: Passport and other        544       508       656       670       685       701       717
       fees...................................
      Department of Transportation: Railroad          38       144       381       629       640       652       665
       safety, navigation, and other fees.....
      Department of the Treasury: Sale of          1,489     1,257     1,910     1,439     1,470     1,505     1,539
       commemorative coins and other fees.....
      Department of Veterans Affairs: Medical        774       808     1,087     1,288     1,377     1,467     1,558
       care and other fees....................
      Social Security Administration: State           91       106       111       119       126       134       143
       supplemental fees, supplemental
       security income........................
      Federal Communications Commission:             208       227       248       253       258       264       270
       Regulatory fees........................
      Federal Trade Commission: Regulatory            91       163       178       182       187       192       197
       fees...................................
      Nuclear Regulatory Commission:                 453       479       518       523       528       545       563
       Regulatory fees........................
      Securities and Exchange Commission:            735     1,149     1,332     1,542     1,837     2,171     1,142
       Regulatory fees........................
      All other agencies, discretionary user         220       267       293       338       346       354       365
       fees...................................
                                               ---------------------------------------------------------------------
        Subtotal, discretionary user fees.....    13,702    15,001    17,262    17,740    18,424    19,159    18,489

    Mandatory
      Department of Agriculture: Crop              1,240     1,100     1,097     1,198     1,237     1,199     1,215
       insurance and other fees...............
      Department of Defense: Commissary              265       743       599       599       599       599       599
       surcharge and other fees...............
      Department of Energy: Proceeds from the      4,851     4,623     4,508     4,650     4,295     4,246     4,237
       sale of energy, nuclear waste disposal
       fees, and other fees...................
      Department of Health and Human Services:    23,764    25,637    27,363    29,063    31,082    33,264    35,568
       Medicare Part B insurance premiums and
       other fees.............................
      Department of the Interior: Recreation         634       672       626       641       643       646       649
       and other fees.........................
      Department of Justice: Immigration and       1,821     2,241     2,320     2,312     2,352     2,394     2,438
       other fees.............................
      Department of Labor: Insurance premiums        850       886       829       818       830       827       823
       to guaranty private pensions...........
      Department of the Treasury: Customs,         1,929     1,992     2,143       717       736       751       766
       bank regulation, and other fees........
      Department of Veterans Affairs: Veterans     1,553     1,974     2,114     2,101     2,059     2,077     2,035
       life insurance and other fees..........
      Federal Emergency Management Agency:         1,603     1,729     1,785     1,839     1,906     1,980     2,069
       Flood insurance fees...................
      Office of Personnel Management: Federal      7,404     8,037     9,881    10,680    11,372    12,091    12,886
       employee health and life insurance fees
      Federal Communications Commission:        ........  ........  ........  ........  ........  ........       500
       Analog spectrum lease fee..............
      Federal Deposit Insurance Corporation:          83        86       893     2,123     2,274     2,333     2,375
       Deposit insurance fees.................
      Postal Service: Fees for postal services    64,871    67,794    73,727    75,796    77,996    79,996    81,996
      Tennessee Valley Authority: Proceeds         7,326     7,348     7,205     7,462     7,674     7,806     8,018
       from the sale of energy................
      All other agencies, mandatory user fees.       224       322       337       372       384       397       405
                                               ---------------------------------------------------------------------
        Subtotal, mandatory user fees.........   118,418   125,184   135,427   140,371   145,439   150,606   156,579
                                               ---------------------------------------------------------------------
      Subtotal, offsetting collections and       132,120   140,185   152,689   158,111   163,863   169,765   175,068
       receipts from the public...............
                                               =====================================================================
    Total, User fees..........................   133,652   141,648   154,304   159,747   165,586   171,561   176,911
    ----------------------------------------------------------------------------------------------------------------

      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
    $17.3 billion in 2003, and those in the mandatory part are estimated to
    be $135.4 billion in 2003.

    [[Page 87]]

                            III.   User Fee Proposals

      As shown in Table 5-3, the Administration is proposing new or
    increased user fees that would increase collections by an estimated $1.5
    billion in 2003, increasing to $2.9 billion in 2007.

    A.  User Fee Proposals to Offset Discretionary Spending

    1.  Offsetting collections

    Department of Agriculture

      Animal and Plant Health Inspection Service.--Legislation will be
    proposed to establish user fees for APHIS costs for animal welfare
    inspections, such as for animal research centers, humane societies, and
    kennels.
      Grain Inspection, Packers and Stockyards Administration.--Legislation
    will be proposed to establish a fee for the standardization activities
    of the Grain Inspection, Packers and Stockyards Administration, and a
    licensing fee to cover the costs of administering these programs.

                                             Table 5-3.  USER FEE PROPOSALS
                                     (Estimated collections in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                2003     2004     2005     2006     2007   2003-2007
    ----------------------------------------------------------------------------------------------------------------

                          DISCRETIONARY

    1.  Offsetting collections

    Department of Agriculture
      Animal Plant and Health Inspection Service............        5        5        5        5        5        25
      Grain Inspection, Packers, and Stockyards                    29       29       29       29       29       145
       Administration.......................................

    Department of Commerce
      Patent and Trademark Office: Increase current fees and  .......      136       79       40       40       295
       raise fee rates......................................
      International Trade Administration: Increased fee            10       10       10       10       10        50
       revenues for export promotion........................

    Department of Health and Human Services
      User fees for Medicare providers for paper claims and       130      130      130      130      130       650
       duplicate or unprocessable claims....................
      Food and Drug Administration: Fees for the review of        272      272      272      272      272     1,360
       new prescription drugs...............................

    Department of State
      Machine readable visa fee.............................      139      144      150      155      161       749

    Commodity Futures Trading Commission
      Fees on each round-turn commodities futures and              33       70       73       78       83       337
       options transactions.................................

    Federal Trade Commission
      Do Not Call List fee..................................        3        3        3        3        3        15

    2.  Offsetting receipts

    Department of Transportation
      Hazardous materials transportation safety fees........        6       25       25       25       25       106
      Railroad safety inspection fees.......................       59      120      122      124      127       552
      Coast Guard commercial navigation assistance fee......      165      330      336      342      349     1,522

    Department of the Treasury
      Customs Service air/sea passenger fee and cruise            250  .......  .......  .......  .......       250
       vessel fee...........................................

    Department of Veterans Affairs
      Implement $1,500 deductible for priority level 7 (non-      363      381      400      420      441     2,005
       disabled, higher income) veterans for health care....

    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  .......  .......  .......      345      357       702
                                                             -------------------------------------------------------
        Subtotal, discretionary fee proposals...............    1,468    1,663    1,642    1,986    2,040     8,799

                            MANDATORY

    1.  Offsetting collections

    Federal Emergency Managment Agency
      Flood insurance fees..................................        8       43       83      130      191       455

    2.  Offsetting receipts

    Department of Agriculture
      Food Safety and Inspection Service user fees..........  .......       72       72       74       74       292
      Forest Service ski fee permits........................  .......        3       10       14       15        42
      Forest Service recreation and entrance fees...........  .......  .......       43       44       44       131

    Department of the Interior
      Recreation and entrance fees..........................  .......  .......       43       44       44       131

    Corps of Engineers
      Recreation user fees..................................        6       11       16       21       21        75

    Federal Communications Commission
       Analog spectrum lease fee............................  .......  .......  .......  .......      500       500
                                                             -------------------------------------------------------
        Subtotal, mandatory user fee proposals..............       14      129      267      327      889     1,626
                                                             -------------------------------------------------------
          Total, user fee proposals.........................    1,482    1,792    1,909    2,313    2,929    10,425
    ----------------------------------------------------------------------------------------------------------------

    Department of Commerce

      Patent and Trademark Office.--The Administration proposes changes to
    patent and trademark fee schedules effective in 2004 to fully support
    the PTO's long-term objectives to reduce application processing times
    and increase patent and trademark quality. As a first step, the
    Administration is proposing a one-year surcharge on all patent and
    trademark fees in 2003 as a proxy for the draft legislation.
      International Trade Administration.--The Budget proposes an increase
    in fee collections of $10 million in 2003 and later years for ITA. In
    addition, ITA will study different fee options in 2002 to determine an
    appropriate model for cost recovery from firms that receive trade
    promotion services.

    Department of Health and Human Services

      User Fees for Medicare providers for paper claims and duplicate or
    unprocessable claims.--The Administration is proposing new user fees for
    providers 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 would be waived for rural and poor providers.
      The Centers for Medicare and Medicaid Services 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 fee for
    duplicate or unprocessable claims would heighten provider awareness of
    these issues and increase efficiency by deterring this action.
      Fees for the review of new prescription drugs.--The Administration is
    proposing the reauthorization of the Prescription Drug User Fee Act
    (PDUFA). Originally authorized in 1992 and reauthorized in 1997, PDUFA
    assesses user fees to pharmaceutical manufacturers for the Food and Drug
    Administration (FDA) review of new prescription drugs for safety and
    efficacy. FDA review of a new prescription drug is required before these
    drugs are available to consumers on the market. Spending financed by
    these fees would be in addition to regular appropriations.

    Department of State

        Machine readable visa fee.--The State Department plans to increase
    machine readable visa (MRV) collection fees by more than 30 percent,
    from $45 to $65. Since 1996, MRVs have been available at all 221 U.S.
    visa issuing posts around the world. These visas provide increased
    border security control through the use of biometric technology. MRVs
    currently include digitized photographs and personal information related
    to the traveler. However, they have the capability to encode retinal
    images, fingerprints and other personal details, which can then be read
    electronically and relayed to other Federal agencies to be compared to
    other database information. Approximately 5 million visas are processed
    annually.

    Commodity Futures Trading Commission

      Fees on each round-turn commodities futures and options
    transactions.--The Commodities Futures Trading Commission regulates U.S.
    futures and options markets. It strives to protect investors by
    preventing fraud and abuse and ensuring adequate disclosure of
    information. The President's Budget includes a fee on each round-turn
    commodities futures and options transaction that will be phased in
    during 2003. This proposal recognizes that market participants derive
    direct benefits from CFTC's oversight, which provides legal certainty
    and contributes to the integrity and soundness of the markets.

    Federal Trade Commission

      Do Not Call List fee.--The Federal Trade Commission is proposing new
    fees that will be assessed, collected and used to cover costs of
    developing, implementing and maintaining a national database of
    telephone numbers of consumers who choose not to receive telephone
    solicitations, as authorized by the Telephone Consumer and Abuse
    Prevention Act.

    2.  Offsetting receipts

    Department of Transportation

      Hazardous materials transportation safety fees.--Beginning in 2003,
    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 language is
    proposed to increase the fees

    [[Page 88]]

    paid by shippers and carriers of hazardous materials in 2003 to fund
    these safety activities.
      Railroad safety inspection fee.--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 2003 collections are 50 percent of
    the anticipated cost of safety services. In subsequent years these
    services would be fully funded with user fees.
    .  Coast Guard commercial navigation assistance fee.--This proposal
    would partially recover the costs of providing Coast Guard navigational
    assistance services. The fees would be collected from the primary
    beneficiaries of these services, which are commercial cargo and cruise
    vessels. The estimated 2003 collections assume a six month
    implementation period for this new fee and represent 50 percent of the
    anticipated full year receipts.

    [[Page 89]]

    Department of the Treasury

      Customs Service air/sea passenger fee and cruise vessel fee.--The
    Administration proposes an increase in two of the user fees collected by
    the Customs Service. The air/sea passenger fee was established in 1986
    at $5.00 per passenger. The cruise vessel passenger fee was established
    at $1.75 per passenger. The receipts from these fees are used to pay for
    Customs' overtime inspections and related expenses. The air/sea fee
    would increase to $11 per passenger. The cruise vessel fee would
    increase to $2 per passenger. The new fee levels would help to offset
    higher costs incurred by the Customs Service.

    Department of Veterans Affairs

      Implement a $1,500 deductible for priority level 7 veterans for health
    care.--The budget request includes a proposal to establish a $1,500
    annual deductible for priority level 7 veterans (non-disabled, higher-
    income). This proposal is in response to the significant growth in
    enrollment and usage by priority level 7 veterans over the last 3 years,
    as well as anticipated future growth. The objective is to have these
    veterans pay a larger portion of the cost of their health care. Coupled
    with the recent increase in pharmacy copayments and decrease in
    outpatient care copayments, this proposal makes certain that VA's health
    care system is able to continue providing high-quality health care to
    its core population--disabled and low-income veterans.

    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 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
    Nuclear Regulatory Commission (NRC) assess license and annual fees that
    recover approximately 94 percent of its budget authority in 2003, less
    the appropriation from the Nuclear Waste Fund. Licensees are required to
    reimburse NRC for its services, because licensees benefit from such
    services.
      Under OBRA, as amended, 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 year. If the
    90 percent requirement is not extended beyond 2005, fees would drop from
    an estimated $528 million in 2005 to $200 million in 2006; with an
    extension at 90 percent, fees would be an estimated $545 million in
    2006, an increase of $345 million.

    B.  User Fee Proposals to Offset Mandatory Spending

    1.  Offsetting collections

    Federal Emergency Management Agency

      Flood insurance fees.--The Administration proposes to phase out
    subsidized premiums for flood insurance for vacation homes, rental
    properties, and other non-primary residences. Insurance rates for
    primary residences, which represent the majority of the program's
    policies, would not change under these proposal. In addition, the
    Administration proposes to include the cost of expected erosion losses
    for flood insurance policies in coastal areas, require that mortgage
    borrowers insure the full replacement value of their properties, and end
    State taxation of flood insurance polices.

    2.  Offsetting receipts

    Department of Agriculture

      Food Safety and Inspection Service.--Legislation will be proposed
    replacing the existing overtime fee structure with a revised structure
    that would distribute fees more proportionately between large and small
    plants. Overtime fees would also apply to all inspection hours provided
    after one eight hour shift. However, since the goal of the proposed fee
    is equity, rather than revenue, the costs for the overtime would be
    shared with the Federal Government paying 50 percent of the total
    overtime costs.
      In addition to overtime fees, the legislative proposal would recover
    some overhead costs by charging all plants an annual fee in direct
    proportion to the plants volume of output. The funds collected would be
    available without appropriation to cover food safety-related activities
    and research.
      Forest Service ski fees permits.--This proposal would require the
    receipt of fair market value from use and occupancy of ski resorts on
    national forest lands. The proposal would amend the Omnibus Parks and
    Public Lands Management Act (P.L. 104-333), which established a new fee
    schedule for ski resorts on National Forest System lands. The amendment
    would adjust percentages of gross revenue that determine fees to the
    Government. Funds collected are available for forest restoration of
    landscapes impacted by ski resorts.
      Forest Service recreation and entrance fees.--The Administration
    proposes to permanently extend 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 and entrance fees.--The Administration proposes to extend
    permanently the current recreation fee demonstration program. Since
    1996, this program

    [[Page 90]]

    has allowed the National Park Service, the Bureau of Land Management,
    and the Fish and Wildlife Service to collect increased recreation and
    entrance fees and spend the receipts without further appropriation on
    facility improvements, visitor programs, and other services. At least
    half of the National Park Service receipts will be used to address
    deferred maintenance needs. A related proposal affects recreation fees
    for the Forest Service in the Department of Agriculture.

    Corps of Engineers

      Recreation user fees.--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
    improvements of the recreation facilities of the Corps of Engineers,
    many of which are obsolete. Legislation will be required 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 makes available to
    the Corps without further appropriation recreation fee revenues above a
    baseline of $34 million per year, to be used for operation and
    maintenance of its recreation facilities. The Corps spends about $250
    million annually on these activities.

    Federal Communications Commission

      Analog spectrum lease fee.--The Administration proposes authorizing
    the FCC to establish an annual lease fee totaling $500 million for the
    use of analog spectrum by commercial broadcasters beginning in 2007, to
    facilitate the clearing of analog television broadcast spectrum and
    provide taxpayers some compensation for use of this scarce resource.

                    OTHER OFFSETTING COLLECTIONS AND RECEIPTS

      Table 5-4 shows that total offsetting collections and receipts from
    the public are estimated to be $231.2 billion in 2003. Of these, an
    estimated $149.3 billion are offsetting collections credited to
    appropriation accounts and an estimated $81.9 billion are deposited in
    offsetting receipt accounts.
      The user fees in Table 5-4 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 5-5 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 $511.5 billion
    in 2003--$429.6 billion are intragovernmental transactions, and $81.9
    billion are from the public, shown in the table as proprietary receipts
    from the public and offsetting governmental receipts.
      As noted above, offsetting collections and receipts by agency are also
    displayed in Table 21-1, ``Outlays to the Public, Net and Gross,'' which
    appears in Chapter 21 of this volume.

    [[Page 91]]

        Table 5-4.   OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
                            (In millions of dollars)
    ------------------------------------------------------------------------
                                                           Estimate
                                    2001  Actual ---------------------------
                                                      2002          2003
    ------------------------------------------------------------------------
    Offsetting collections
     credited to expenditure
     accounts:

       User fees:
        Postal service stamps and         64,871        67,794        73,727
         other postal fees........
        Defense Commissary Agency.         5,083         5,101         5,351
        Employee contributions for         5,855         6,503  ............
         employees and retired
         employees health benefits
         funds \1\................
        Sale of energy:
          Tennessee Valley                 7,326         7,348         7,205
           Authority..............
          Bonneville Power                 3,937         3,697         3,616
           Administration.........
        All other user fees.......        14,880        16,942        18,871
                                   -----------------------------------------
          Subtotal, user fees.....       101,952       107,385       108,770
      Other collections credited
       to expenditure accounts:
        Pre-credit reform loan            14,078        14,851        13,551
         repayments...............
        Supplemental security              3,160         3,797         3,937
         income (collections from
         the States)..............
        Federal Savings and Loan           1,688         1,243           267
         Insurance Corporation
         resolution fund..........
        Other collections.........        19,386        20,082        22,786
                                   -----------------------------------------
          Subtotal, other                 38,312        39,973        40,541
           collections............
                                   -----------------------------------------
        Subtotal, offsetting             140,264       147,358       149,311
         collections credited to
         expenditure accounts.....

    Offsetting receipts:

      User fees:
        Medicare premiums.........        23,748        25,622        27,347
        Employee contributions for  ............  ............         8,264
         employees and retired
         employees health benefits
         funds \1\................
         All other user fees......         6,420         7,178         8,308
                                   -----------------------------------------
          Subtotal, user fees             30,168        32,800        43,919
           deposited in receipt
           accounts...............
       Other collections deposited
       in receipt accounts:
         Spectrum auction receipts         1,024           530           460
         Military assistance              10,229        10,300        10,410
         program sales............
         OCS rents, bonuses, and           7,194         3,806         2,832
         royalties................
         Interest income..........        12,175        12,513        13,887
         All other collections            19,497        16,086        10,402
         deposited in receipt
         accounts.................
                                   -----------------------------------------
     Subtotal, other collections          50,119        43,235        37,991
     deposited in receipt accounts
                                   -----------------------------------------
       Subtotal, collections              80,287        76,035        81,910
       deposited in receipt
       accounts...................
                                   =========================================
    Total, offsetting collections        220,551       223,393       231,221
     and receipts from the public.

    Total, offsetting collections        155,554       155,454       157,344
     and receipts excluding off-
     budget.......................

               ADDENDUM:

     User fees that are offsetting       132,120       140,185       152,689
     collections and receipts \2\.
     Other offsetting collections         88,431        83,208        78,532
     and receipts from the public.
                                   -----------------------------------------
     Total, offsetting collections       220,551       223,393      231,221
     and receipts from the public.
    ------------------------------------------------------------------------
    \1\ Beginning in 2003, amounts received by the Federal Employees Health
      Benefits Program (FEHBP), previously treated as offsetting
      collections, are now treated as offsetting receipts. This reflects a
      change in the FEHBP from a trust revolving fund to a special fund and
      is consistent with the President's proposed Managerial Flexibility
      Act.
    \2\ Excludes user fees that are classified on the receipts side of the
      budget. For total user fees, see Table 5.1 or Table 5.2.

    [[Page 92]]

                                         Table 5-5. OFFSETTING RECEIPTS BY TYPE
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                             Estimate
               Source                2001    -----------------------------------------------------------------------
                                    Actual       2002        2003        2004        2005        2006        2007
    ----------------------------------------------------------------------------------------------------------------
          INTRAGOVERNMENTAL
            TRANSACTIONS
    On-budget receipts:
      Federal intrafund
       transactions:
        Distributed by agency:
          Interest from the            2,157       1,930       1,484       1,724       2,044       2,342       2,230
           Federal Financing
           Bank.................
          Interest on Government       1,091       1,095       1,075       1,047       1,165         932         826
           capital in
           enterprises..........
          Interest received by    ..........  ..........         773       1,335       1,899       2,491       3,112
           retirement and health
           benefits funds.......
          General fund payments
           to retirement and
           health benefits
           funds:
            Employees health      ..........  ..........      11,622      11,026      11,026      11,026      11,026
             benefits fund......
            DoD retiree health    ..........  ..........      16,351      24,455      27,034      29,816      32,817
             care fund..........
            Miscellaneous         ..........  ..........         888         893         902         912         923
             Federal retirement
             funds \1\..........
          Subsidy balance              4,026         909  ..........  ..........  ..........  ..........  ..........
           transfers............
          Other.................       3,323       2,403       2,475       2,538       2,661       2,779       2,896
        Undistributed by agency:
          Employing agency
           contributions:
            Employees health      ..........  ..........      16,404      17,475      18,587      19,800      21,168
             benefits fund......
            DoD retiree health    ..........  ..........       8,312      15,475      16,416      17,418      18,500
             care fund..........
            Miscellaneous              8,219       8,683         279         331         288         285         286
             Federal retirement
             funds..............
                                 -----------------------------------------------------------------------------------
          Total Federal               18,816      15,020      59,663      76,299      82,022      87,801      93,784
           intrafunds...........
                                 -----------------------------------------------------------------------------------
        Trust intrafund
         transactions:
          Distributed by agency:
          Payments to railroad         3,283       3,863       3,854       3,807       3,808       3,658       3,911
           retirement...........
          Other.................           1           1           1           1           1           1           1
                                 -----------------------------------------------------------------------------------
          Total trust intrafunds       3,284       3,864       3,855       3,808       3,809       3,659       3,912
                                 -----------------------------------------------------------------------------------
        Total intrafund               22,100      18,884      63,518      80,107      85,831      91,460      97,696
         transactions...........
                                 -----------------------------------------------------------------------------------
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Contributions to
             insurance programs:
              Military                16,089      17,047      17,643      18,261      18,900      19,563      20,247
               retirement fund..
              Supplementary           69,838      77,295      80,905      84,790      90,003      96,284     103,019
               medical insurance
              Proposed            ..........  ..........         -19          -1         102          74          54
               Legislation (non-
               PAYGO)...........
              Hospital insurance       5,594      11,544       9,423       9,807      10,385      10,963      11,657
              Railroad social             98          95         100         103         106         109         114
               security
               equivalent fund..
              Rail industry              229         242         254         265         275         284         296
               pension fund.....
              Civilian                21,890      22,399      29,660      29,666      29,669      29,672      29,674
               supplementary
               retirement
               contributions....
              Unemployment               432         517         531         526         522         526         541
               insurance........
              Other                      560         482         506         508         535         533         536
               contributions....
                                 -----------------------------------------------------------------------------------
              Subtotal..........     114,730     129,621     139,003     143,925     150,497     158,008     166,138
                                 -----------------------------------------------------------------------------------
            Miscellaneous              1,520         930         988         944         901         882         865
             payments...........
            Proposed Legislation  ..........  ..........       2,066  ..........  ..........  ..........  ..........
             (non-PAYGO)........
                                 -----------------------------------------------------------------------------------
            Subtotal............     116,250     130,551     142,057     144,869     151,398     158,890     167,003
                                 -----------------------------------------------------------------------------------
          Trust fund payments to
           Federal funds:
            Quinquennial                 836  ..........  ..........  ..........  ..........  ..........  ..........
             adjustment for
             military service
             credits............
            Other...............       2,301       1,141       1,171       1,193       1,217       1,242       1,278
            Proposed Legislation  ..........  ..........       1,606        -446        -435        -430        -427
             (non-PAYGO)........
                                 -----------------------------------------------------------------------------------
            Subtotal............       3,137       1,141       2,777         747         782         812         851
                                 -----------------------------------------------------------------------------------
          Total interfunds           119,387     131,692     144,834     145,616     152,180     159,702     167,854
           distributed by agency
                                 -----------------------------------------------------------------------------------
        Undistributed by agency:
          Employer share,
           employee retirement
           (on-budget):
            Civil service             10,072      10,612      14,233      14,599      14,956      15,239      15,475
             retirement and
             disability
             insurance..........
            CSRDI from Postal          6,600       6,780       6,932       7,089       7,320       7,555       7,745
             Service............
            Hospital insurance         2,031       2,183       2,299       2,402       2,538       2,645       2,755
             (contribution as
             employer) \2\ .....
            Postal employer              673         711         733         756         781         808         836
             contributions to
             FHI................
            Military retirement       11,371      12,491      11,934      12,396      12,911      13,383      13,847
             fund...............

    [[Page 93]]

            Other Federal                136         134         138         142         147         152         157
             employees
             retirement.........
                                 -----------------------------------------------------------------------------------
            Total employer            30,883      32,911      36,269      37,384      38,653      39,782      40,815
             share, employee
             retirement (on-
             budget)............
                                 -----------------------------------------------------------------------------------
            Interest received by      75,302      74,287      77,254      80,145      83,559      87,259      91,793
             on-budget trust
             funds..............
            Proposed Legislation  ..........  ..........          -9         -44         -93        -149        -204
             (non-PAYGO)........
                                 -----------------------------------------------------------------------------------
          Total interfund            106,185     107,198     113,514     117,485     122,119     126,892     132,404
           transactions
           undistributed by
           agency...............
                                 -----------------------------------------------------------------------------------
        Total interfund              225,572     238,890     258,348     263,101     274,299     286,594     300,258
         transactions...........
                                 -----------------------------------------------------------------------------------
      Total on-budget receipts..     247,672     257,774     321,866     343,208     360,130     378,054     397,954
                                 -----------------------------------------------------------------------------------
    Off-budget receipts:
      Trust intrafund
       transactions:
        Distributed by agency:
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Old-age, survivors,       12,528      13,478      14,282      15,149      16,041      16,841      17,990
             and disability
             insurance..........
        Undistributed by agency:
            Employer share,            7,910       9,243       9,564      10,232      11,034      11,744      12,448
             employee retirement
             (off-budget).......
            Interest received by      68,811      76,822      83,849      92,029     101,015     110,959     122,109
             off-budget trust
             funds..............
                                 -----------------------------------------------------------------------------------
      Total off-budget receipts:      89,249      99,543     107,695     117,410     128,090     139,544     152,547
                                 -----------------------------------------------------------------------------------
    Total intragovernmental          336,921     357,317     429,561     460,618     488,220     517,598     550,501
     transactions...............
                                 ===================================================================================
      PROPRIETARY RECEIPTS FROM
             THE PUBLIC
    Distributed by agency:
      Interest:
        Interest on foreign              576         651         639         633         625         608         632
         loans and deferred
         foreign collections....
        Interest on deposits in          951         451         585         585         585         585         585
         tax and loan accounts..
        Other interest                10,647      11,411      12,663      13,283      13,770      14,238      14,659
         (domestic--civil) \3\ .
                                 -----------------------------------------------------------------------------------
        Total interest..........      12,174      12,513      13,887      14,501      14,980      15,431      15,876
                                 -----------------------------------------------------------------------------------
        Dividends and other       ..........  ..........  ..........  ..........  ..........  ..........  ..........
         earnings...............
      Royalties and rents.......       2,235       1,458       1,494       1,551       1,526       1,604       1,635
      Sale of products:
        Sale of timber and other         218         623         635         400         407         397         387
         natural land products..
        Proposed Legislation      ..........  ..........  ..........           3          10          14          15
         (PAYGO)................
        Sale of minerals and              31          27          30          33          32          32          30
         mineral products.......
        Sale of power and other          562         721         683         695         695         714         717
         utilities..............
        Proposed Legislation      ..........  ..........        -149        -149        -150        -150        -150
         (PAYGO)................
        Other \3\...............          73          89          77          77          77          77          77
                                 -----------------------------------------------------------------------------------
        Total sale of products..         884       1,460       1,276       1,059       1,071       1,084       1,076
                                 -----------------------------------------------------------------------------------
      Fees and other charges for
       services and special
       benefits:
        Medicare premiums and         23,748      25,622      27,347      29,013      30,984      33,152      35,529
         other charges (trust
         funds).................
        Proposed Legislation      ..........  ..........  ..........          35          82          95          23
         (PAYGO)................
        Employees health          ..........  ..........       8,352       9,077       9,717      10,380      11,121
         benefits premiums......
        Nuclear waste disposal           689         640         647         612         637         621         609
         revenues...............
        Veterans life insurance          194         198         184         170         154         139         125
         (trust funds)..........
        Other \3\ ..............       2,409       3,124       3,480       3,780       3,808       3,990       4,133
        Proposed Legislation      ..........  ..........           6          93         189         207         208
         (PAYGO)................
                                 -----------------------------------------------------------------------------------
        Total fees and other          27,040      29,584      40,016      42,780      45,571      48,584      51,748
         charges................
                                 -----------------------------------------------------------------------------------
      Sale of Government
       property:
        Sale of land and other            86         150         412         110         110         110         107
         real property \3\......
        Military assistance           10,229      10,300      10,410      10,380      10,570      10,730      10,890
         program sales (trust
         funds).................
        Other...................         358         759          90          65          66          41           7
                                 -----------------------------------------------------------------------------------
        Total sale of Government      10,673      11,209      10,912      10,555      10,746      10,881      11,004
         property...............
                                 -----------------------------------------------------------------------------------

    [[Page 94]]

      Realization upon loans and
       investments:
        Negative subsidies and         8,627       6,027         751         757         764         773         748
         downward reestimates...
        Repayment of loans to            291          71          85          88          94         108          25
         foreign nations........
        Other...................          83         117          97          93          89          85          83
                                 -----------------------------------------------------------------------------------
        Total realization upon         9,001       6,215         933         938         947         966         856
         loans and investments..
                                 -----------------------------------------------------------------------------------
      Recoveries and refunds \3\       3,730       2,780       2,882       3,011       3,119       3,201       3,305
      Proposed Legislation        ..........  ..........           7          14        -103        -164        -172
       (PAYGO)..................
      Miscellaneous receipt            2,293       1,909       1,916       1,924       1,928       1,941       1,945
       accounts \3\.............
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts      68,030      67,128      73,323      76,333      79,785      83,528      87,273
       from the public
       distributed by agency....
                                 -----------------------------------------------------------------------------------
    Undistributed by agency:
      Other interest: Interest             1  ..........  ..........  ..........  ..........  ..........  ..........
       received from Outer
       Continental Shelf escrow
       account..................
      Rents, bonuses, and
       royalties:
        Outer Continental Shelf          719         834         466         509         427         396         347
         rents and bonuses......
        Outer Continental Shelf        6,475       2,972       2,366       2,443       3,243       3,573       3,671
         royalties..............
        Arctic National Wildlife
         Refuge:
        Proposed Legislation      ..........  ..........  ..........       2,402           2         202           2
         (PAYGO)................
      Sale of major assets......  ..........  ..........  ..........  ..........         323  ..........  ..........
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts       7,195       3,806       2,832       5,354       3,995       4,171       4,020
       from the public
       undistributed by agency..
                                 -----------------------------------------------------------------------------------
    Total proprietary receipts        75,225      70,934      76,155      81,687      83,780      87,699      91,293
     from the public \4\ .......
                                 ===================================================================================
       OFFSETTING GOVERNMENTAL
              RECEIPTS
    Distributed by agency:
      Regulatory fees \3\.......       3,964       4,494       4,739       3,015       3,056       3,111       3,168
      Proposed Legislation (non-  ..........  ..........         313         128         130         132         135
       PAYGO)...................
      Other.....................          74          77         243         409         416         423         431
    Undistributed by agency:
      Spectrum auction proceeds.       1,024         530       4,510      10,565       8,770         675         680
      Proposed Legislation        ..........  ..........      -4,050       3,350       2,700       4,700         500
       (PAYGO)..................
                                 -----------------------------------------------------------------------------------
      Total offsetting                 5,062       5,101       5,755      17,467      15,072       9,041       4,914
       governmental receipts....
                                 ===================================================================================
    Total offsetting receipts...     417,208     433,352     511,471     559,772     587,072     614,338     646,708
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    \1\ 2001 and 2002 amounts are offsets for the Administration's retirement acrual proposal.
    \2\ Includes provision for covered Federal civilian employees and military personnel.
    \3\ Includes both Federal funds and trust funds.
    \4\ Consists of:

                                                       MEMORANDUM
                                   Composition of proprietary receipts from the public
    ----------------------------------------------------------------------------------------------------------------
                                                                                Estimate
                                            2001   -----------------------------------------------------------------
                                           Actual      2002       2003       2004       2005       2006       2007
    ----------------------------------------------------------------------------------------------------------------
    On-budget:
      Federal funds....................     39,952     33,366     36,428     40,180     40,076     41,639     42,775
      Trust funds......................     35,190     37,489     39,646     41,423     43,618     45,972     48,427
    Off-budget.........................         83         79         81         84         86         88         91
    ----------------------------------------------------------------------------------------------------------------