[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
----------------------------------------------------------------------------------------------------------------
\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
----------------------------------------------------------------------------------------------------------------