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



[[Page 87]]
 
                  5. USER CHARGES 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. These collections 
are classified as user charges, and they include the sale of postage 
stamps and electricity, charges for admittance to national parks, 
premiums for deposit insurance, and proceeds from the sale of assets, 
such as rents and royalties for the right to extract oil from the Outer 
Continental Shelf.
  Depending on the laws that authorize the collections, they are 
credited to expenditure accounts as ``offsetting collections,'' or to 
receipt accounts as ``offsetting receipts.'' The budget refers to these 
amounts as ``offsetting'' 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 24: ``Budget System and Concepts and 
Glossary'' in this volume.
---------------------------------------------------------------------------
  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. When earmarked, 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.
  Offsetting collections and receipts include most user charges, which 
are discussed below, as well as some amounts that are not user charges. 
Table 5-1 summarizes these transactions. For 2004, total offsetting 
collections and receipts from the public are estimated to be $234.6 
billion, and total user charges are estimated to be $176.3 billion.
  The following section discusses user charges and the Administration's 
user charge proposals. The subsequent section displays more information 
on offsetting collections and receipts. The offsetting collections and 
receipts by agency are 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 CHARGES, OTHER OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC, AND NET
                                                     OUTLAYS
                                            (In billions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                                                 Estimate
                                                                                 2002    -----------------------
                                                                                Actual       2003        2004
----------------------------------------------------------------------------------------------------------------
Gross outlays...............................................................     2,233.0     2,378.0     2,464.0
  Offsetting collections and receipts from the public:
     User charges \1\.......................................................       155.3       167.7       173.5
     Other..................................................................        66.6        69.9        61.1
                                                                             -----------------------------------
  Subtotal, offsetting collections and receipts from the public.............       222.0       237.6       234.6
                                                                             -----------------------------------
Net outlays.................................................................     2,011.0     2,140.4    2,229.4
----------------------------------------------------------------------------------------------------------------
\1\ Total user charges are shown below. They include user charges 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 charges, see
  Table 5-2, ``Total User Charge Collections.''






Total user charges:
   Offsetting collections and receipts from the public...................        155.3        167.7        173.5
   Receipts..............................................................          2.4          2.7          2.8
                                                                          --------------------------------------
Total, User charges......................................................        157.8        170.4        176.3



[[Page 88]]

                              USER CHARGES

                     I.  Introduction and Background

  The Federal Government may charge those who benefit directly from a 
particular activity or those subject to regulation. Based on the 
definition used in this chapter, Table 5-2 shows that user charges were 
$157.8 billion in 2002, and are estimated to increase to $170.4 billion 
in 2003 and to $176.3 billion in 2004, growing to an estimated $198.4 
billion in 2008, including the user charges proposals that are shown in 
Table 5-3. This table shows that the Administration is proposing to 
increase user charges by an estimated $2.1 billion in 2004, growing to 
an estimated $2.6 billion in 2008.
  Definition. The term ``user charge'' as used here is more broadly 
defined than the ``user fee'' concept used in this chapter in prior 
years. User charges are fees, charges, and assessments levied on 
individuals or organizations directly benefiting from, or subject to 
regulation by, a government program or activity. In addition, the payers 
of the charge must be limited to those benefiting from, or subject to 
regulation by, the program or activity, and may not include the general 
public or a broad segment of the public (such as those who pay income 
taxes or customs duties).
    Examples of business-type or market-oriented user charges 
          include charges for the sale of postal services (the sale of 
          stamps), electricity (e.g., sales by the Tennessee Valley 
          Authority), proceeds from the sale of goods by defense 
          commissaries, payments for Medicare voluntary supplemental 
          medical insurance, life insurance premiums for veterans, 
          recreation fees for parks, the sale of weather maps and 
          related information by the Department of Commerce, and 
          proceeds from the sale of assets (property, plant, and 
          equipment) and natural resources (such as timber, oil, and 
          minerals).
    Examples of regulatory and licensing user charges include 
          charges for regulating the nuclear energy industry, bankruptcy 
          filing fees, immigration fees, food inspection fees, passport 
          fees, and patent and trademark fees.
  The broader ``user charges'' concept adopted this year aligns these 
estimates with the concept that establishes policy for charging prices 
to the public for the sale or use of goods, services, property, and 
resources (see OMB Circular No. A-25, ``User Charges,'' July 8, 1993).
  User charges do not include all offsetting collections and receipts 
from the public, such as repayments received from credit programs; 
interest, dividends, and other earnings; payments from one part of the 
Federal Government to another; or cost sharing contributions. Nor do 
they include earmarked taxes (such as taxes paid to social insurance 
programs or excise taxes on gasoline), or customs duties, fines, 
penalties, and forfeitures.
  Alternative definitions. The definition used in this chapter is useful 
because it is similar to the definition used in OMB Circular No. A-25, 
``User Charges,'' which provides policy guidance to Executive Branch 
agencies on setting prices for user charges. Alternative definitions may 
be used for other purposes. Much of the discussion of user charges 
below--their purpose, when they should be levied, and how the amount 
should be set--applies to these alternatives as well.
  Other definitions of user charges could, for example:
    be narrower than the one used here, by limiting the 
          definition to proceeds from the sale of goods and services 
          (and excluding the sale of assets), and by limiting the 
          definition to include only proceeds that are earmarked to be 
          used specifically to finance the goods and services being 
          provided. This is the definition of user fees used in previous 
          chapters on this subject and 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.)
    be even narrower than the user fee concept described above, 
          by excluding regulatory fees and focusing solely on business-
          type transactions.
    be broader than the one used in this chapter by including 
          beneficiary- or liability-based excise taxes, such as gasoline 
          taxes.\2\
---------------------------------------------------------------------------
  \2\ 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. In addition to gasoline taxes, 
examples of beneficiary-based taxes include 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 charges? The purpose of user charges is to 
improve the efficiency and equity of certain Government activities, and 
to reduce the burden on taxpayers to finance activities whose benefits 
accrue to a relatively limited number of people, or to impose a charge 
on activities that impose a cost on the public.
  User charges that are set to cover the costs of production of goods 
and services can provide efficiency in the allocation of resources 
within the economy. They allocate goods and services to those who value 
them the most, and they signal to the Government how much of the goods 
or services it should provide. Prices in private, competitive markets 
serve the same purposes.
  User charges 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 charges 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

[[Page 89]]

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 
organizations, then the program should be financed by charges 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 charges.
  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 charge 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 charges that 
cover the full cost to the Government, including both direct and 
indirect costs. \3\
---------------------------------------------------------------------------
  \3\ Policies for setting user charges are promulgated in OMB Circular 
No. A-25: ``User Charges'' (July 8, 1993).
---------------------------------------------------------------------------
  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 charges in the budget. As shown in Table 5-1, 
most user charges 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 $2.8 billion in 2004 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 charges 
collected by the Federal Government by the exercise of its sovereign 
powers. Examples include filing fees in the United States courts, 
agricultural quarantine inspection fees, and passport fees.
  The remaining user charges, an estimated $173.5 billion in 2004, 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 $126.5 billion of user charges for 2004 are credited 
directly to expenditure accounts, and are generally available for 
expenditure when they are collected, without further action by the 
Congress. An estimated $47.0 billion of user charges for 2004 are 
deposited in offsetting receipt accounts, and are available to be spent 
only according to the legislation that established the charges.
  As a further classification, the accompanying Tables 5-2 and 5-3 
identify the charges 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 charges generally controlled 
through annual appropriations acts and under the jurisdiction of the 
appropriations committees in the Congress. These charges offset 
discretionary spending under the discretionary caps. ``Mandatory'' 
refers to charges controlled by permanent laws and under the 
jurisdiction of the authorizing committees. These charges 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 24, ``Budget System and Concepts and Glossary.''

                        II.  Current User Charges

  As shown in Table 5-2, total user charge collections (including those 
proposed in this budget) are estimated to be $176.3 billion in 2004, 
increasing to $198.4 billion in 2008. User charge collections by the 
Postal Service and for Medicare premiums are the largest and are 
estimated to be more than half of total user charge collections in 2004.

[[Page 90]]



                                    Table 5-2.  TOTAL USER CHARGE COLLECTIONS
                                            (In millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                               Estimates
                                              2002   -----------------------------------------------------------
                                             Actual     2003      2004      2005      2006      2007      2008
----------------------------------------------------------------------------------------------------------------
                 Receipts

Agricultural quarantine inspection fees...       231       331       285       266       272       279       287
Abandoned mine reclamation fund...........       287       296       302       308       313       319       325
Corps of Engineers, Harbor maintenance           653       733       787       858       934     1,008     1,072
 fees.....................................
Other (includes immigration, passport, and     1,257     1,359     1,428     1,439     1,395     1,420     1,240
 consular fees; filing fees for the U.S.
 courts; and other fees)..................
                                           ---------------------------------------------------------------------
   Subtotal, receipts.....................     2,428     2,719     2,802     2,871     2,914     3,026     2,924

 Offsetting Collections and Receipts from
                the Public

Discretionary
  Department of Agriculture: Food safety         264       262       394       400       408       417       428
   inspection and other fees..............
  Department of Commerce: Patent and           1,444     1,833     1,810     1,930     2,126     2,291     2,463
   trademark, fees for weather services,
   and other fees.........................
  Department of Defense: Commissary and        8,692     8,864     9,179     8,057     8,079     8,105     8,134
   other fees.............................
  Department of Energy: Federal Energy           826     1,294     1,053     1,072     1,092     1,116     1,143
   Regulation Commission, power marketing,
   and other fees.........................
  Department of Health and Human Services:       757       874       948       962       977       995     1,015
   Food and Drug Administration, Centers
   for Medicare and Medicaid Services, and
   other fees.............................
  Department of Homeland Security, border      1,149     2,441     2,523     2,570     2,622     2,680     2,748
   and transportation security fees and
   other fees.............................
  Department of the Interior: Minerals           312       304       309       314       322       328       336
   Management Service and other fees......
  Department of Justice: Antitrust and           348       399       422       430       438       448       459
   other fees.............................
  Department of State: Passport and other        455       813       997     1,016     1,036     1,059     1,086
   fees...................................
  Department of Transportation: Railroad         177       266       193       196       201       206       211
   safety, navigation, and other fees.....
  Department of the Treasury: Sale of          1,191     1,415     1,463     1,490     1,520     1,554     1,594
   commemorative coins and other fees.....
  Department of Veterans Affairs: Medical        989     1,615     2,140     2,240     2,419     2,618     2,832
   care and other fees....................
  Social Security Administration, State          100       111       120       127       135       143       152
   supplemental fees, supplemental
   security income........................
  Federal Communications Commission:             297       336       351       358       365       373       383
   Regulatory fees and costs of auctions..
  Federal Trade Commission: Regulatory            69       166       177       180       184       188       193
   fees...................................
  Nuclear Regulatory Commission:                 476       499       546       556       568       580       595
   Regulatory fees........................
  Securities and Exchange Commission:          1,013     1,332     1,542     1,837     2,171     1,142     1,173
   Regulatory fees........................
  All other agencies, discretionary user         340       553       573       587       597       610       626
   charges................................
                                           ---------------------------------------------------------------------
     Subtotal, discretionary user charges.    18,899    23,377    24,740    24,322    25,260    24,853    25,571

Mandatory
  Department of Agriculture: Crop              1,524     3,846     3,480     3,364     3,420     3,223     3,417
   insurance and other fees...............
  Department of Defense: Commissary            1,411       746       600       549       556       431       389
   surcharge and other fees...............
  Department of Energy: Proceeds from the      4,899     4,947     5,155     5,160     5,006     4,576     4,668
   sale of energy, nuclear waste disposal
   fees, and other fees...................
  Department of Health and Human Services:    25,986    28,303    31,033    32,860    34,557    36,374    38,790
   Medicare Part B insurance premiums, and
   other fees,............................
  Department of Homeland Security:             4,647     5,619     5,530     5,632     5,830     6,037     6,254
   Customs, immigration, flood insurance,
   and other fees.........................
  Department of the Interior: Recreation       2,171     2,770     2,584     2,856     2,655     2,637     2,701
   and other fees.........................
  Department of Justice: Immigration and         275       333       349       354       359       364       370
   other fees.............................
  Department of Labor: Insurance premiums      2,382     1,826     2,378     2,497     2,584     2,673     2,769
   to guaranty private pensions...........
  Department of the Treasury: Customs,           664       674       693       710       727       744       751
   bank regulation, and other fees........
  Department of Veterans Affairs: Veterans     2,074     1,820     1,685     1,642     1,600     1,560     1,525
   life insurance and other fees..........
  Office of Personnel Management: Federal      8,210     9,067     9,916    10,630    11,366    12,140    13,065
   employee health and life insurance fees
  Federal Deposit Insurance Corporation:       3,925     2,059     2,323     2,518     3,677     4,112     4,394
   Deposit insurance fees.................
  National Credit Untion Administration:         519       573       605       565       583       619       667
   Credit union share insurance and other
   fees...................................
  Postal Service: Fees for postal services    64,957    69,437    70,159    70,897    71,586    72,376    73,065
  Tennessee Valley Authority: Proceeds         6,959     6,986     7,196     7,459     7,697     7,904     8,047
   from the sale of energy................
  Undistributed Offsetting Receipts: Sale      5,025     4,380     4,189    14,230    13,282     8,396     8,098
   of spectrum licenses, OCS receipts, and
   other fees.............................
  All other agencies, mandatory user             818       956       857     2,123     2,137       894       909
   charges................................
                                           ---------------------------------------------------------------------
     Subtotal, mandatory user charges.....   136,446   144,342   148,732   164,046   167,622   165,060   169,879
                                           ---------------------------------------------------------------------
  Subtotal, user charges that are            155,345   167,719   173,472   188,368   192,882   189,913   195,450
   offsetting collections and receipts
   from the public........................
                                           =====================================================================
Total, User charges.......................   157,773   170,438   176,274   191,239   195,796   192,939   198,374
----------------------------------------------------------------------------------------------------------------


[[Page 91]]

                       III.  User Charge Proposals

  As shown in Table 5-3, the Administration is proposing new or 
increased user charges that would increase collections by an estimated 
$2.1 billion in 2004, increasing to $2.6 billion in 2008.

A. User Charge 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.--The 
Administration proposes to collect a license fee to cover the cost of 
administering GIPSA's packers and stockyards program and a user fee to 
cover the cost of the standardization program.
  Food Safety and Inspection Service.--The Administration proposes a new 
user fee for the Department of Agriculture's Food Safety and Inspection 
Service (FSIS). Under the proposed fee, the meat, poultry and egg 
industries would be required to reimburse the Federal Government for the 
full cost of extra shifts for inspection services. FSIS would recover 
100 percent of inspection costs from establishments for additional, 
complete work shifts beyond a primary approved shift.

                                        Table 5-3.  USER CHARGE PROPOSALS
                                 (Estimated collections in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                   2003     2004     2005     2006     2007     2008   2004-2008
----------------------------------------------------------------------------------------------------------------

                 DISCRETIONARY

1.  Offsetting collections.....................

Department of Agriculture
   Animal and Plant Health Inspection Service..  .......        8        8        8        8        8        40
   Grain Inspection, Packers and Stockyards      .......       29       30       30       31       32       152
   Administration..............................
   Food Safety and Inspection Service..........  .......      122      122      122      122      122       610

Department of Commerce
   Patent and Trademark Office.................      207      201      182      209      238      267     1,097

Department of Health and Human Services
   Fees for the review of new drugs for animals  .......        5        5        5        5        5        25
   Medicare duplicate or unprocessable claims..       60      195      195      195      195      195       975
   Medicare paper claims.......................       70  .......  .......  .......  .......  .......  .........
   Medicare appeals fee........................  .......        6        6        6        6        6        30

Department of State
   Machine readable visa fees..................       67      271      280      289      300      311     1,451

Department of Veterans Affairs
   Establish an annual enrollment fee for PL 7   .......      230      241      265      292      321     1,349
   and PL 8 veterans (non-disabled, higher
   income).....................................

Corps of Engineers
   Fees transferred from the Power Marketing         149      145      148      151      154      158       756
   Administrations in the Department of Energy.

Environmental Protection Agency
   Extension of pesticide maintenance fee......  .......        8        8        8  .......  .......        24

Commodity Futures Trading Commission
  Fees on each round-turn commodities futures         33  .......  .......  .......  .......  .......  .........
   and options transactions....................

2.  Offsetting receipts

Environmental Protection Agency
   Abolish cap on pre-manufacturing                    4        4        8        8        8        8        36
   notification fees...........................

Nuclear Regulatory Commission
   Extend NRC fees at their 2005 level for 2006  .......  .......  .......      367      374      384     1,125
   and later...................................
                                                ----------------------------------------------------------------
     Subtotal, discretionary user charges            590    1,224    1,233    1,663    1,733    1,817     7,670
     proposals.................................

                   MANDATORY

1.  Offsetting collections

Federal Deposit Insurance Corporation
   Deposit insurance fees......................  .......     -453     -764     -231       59       39    -1,350

2.  Offsetting receipts
Department of Agriculture
   Forest Service recreation and entrance fees.  .......  .......       37       50       50       55       192

Department of Energy
   Arctic National Wildlife Refuge, collections  .......  .......    1,200  .......  .......  .......     1,200
   for research and development................
   Transfer certain Power Marketing                 -149     -145     -148     -151     -154     -158      -756
   Administrations fees to the Corps of
   Engineers...................................

Department of Homeland Security
   Border and transportation security            .......      305      320      336      353      371     1,685
   conveyance and passenger fee................
   Border and transportation security            .......    1,093    1,170    1,252    1,339    1,433     6,287
   merchandise processing fee..................

Department of the Interior
   Recreation fees.............................  .......  .......       39       40       42       43       164
   Bureau of Land Management land sale           .......       10       25       34       42       50       161
   authority...................................
   Arctic National Wildlife Refuge, collection   .......  .......    1,201        1      101        1     1,304
   for payments to Alaska......................
   Arctic National Wildlife Refuge, rents......  .......  .......        1        1      101        1       104

Federal Communications Commission
   Spectrum license user fees..................  .......  .......       10       25       50      100       185
   Analog spectrum fee.........................  .......  .......  .......  .......      500      500     1,000
   Extend auction authority....................  .......  .......  .......  .......   -2,000   -2,000    -4,000
                                                ----------------------------------------------------------------
     Subtotal, mandatory user charges proposals     -149      810    3,091    1,357      483      435     6,176

3.  Governmental receipts

Department of the Interior
   Extend abandoned mine reclamation fees......  .......  .......      308      313      319      325     1,265
   National Indian Gaming Commission activity    .......  .......        3        4        4        5        16
   fees........................................

Department of the Treasury
   Extend Internal Revenue Service user fees...  .......       68       81        6  .......  .......       155
                                                ----------------------------------------------------------------
    Subtotal, governmental receipts user         .......       68      392      323      323      330     1,436
     charges proposals.........................
                                                ----------------------------------------------------------------
     Total, user charge proposals..............      441    2,102    4,716    3,343    2,539    2,582    15,282
----------------------------------------------------------------------------------------------------------------


Department of Commerce

  Patent and Trademark Office.--The Administration proposes legislation 
to restructure patent fees and adjust trademark fees in support of the 
objectives of PTO's strategic plan to enhance examination quality, 
improve the efficiency of the patent and trademark examination systems, 
and better reflect the agency's costs.

Department of Health and Human Services

  Fees for the review of new drugs for animals.--The Administration is 
proposing the authorization of fees for the review of new drugs for 
animals. The Food and Drug Administration's review of these drugs is 
required before they are available on the market. Spending financed by 
these fees would be in addition to regular appropriations.
  Medicare duplicate or unprocessable claims.--The Administration 
proposes new user fees for providers submitting duplicate or 
unprocessable claims. The Centers for Medicare and Medicaid Services 
(CMS) 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.
  Medicare appeals fee.--Sections 521 and 522 of the Benefit 
Improvements Protection Act (BIPA) of 2000 require CMS to reform the 
current Medicare appeals process. The Administration proposes a modest 
filing fee for providers who submit Medicare appeals to Qualified 
Independent Contractors, which represent a new level of adjudication. 
This proposal would heighten provider awareness of reformed appeals 
processes and requirements as well as deter appeals submitted with 
inaccurate or insufficient information.

Department of State

  Machine readable visa (MRV) fees.--Both the PATRIOT Act and the Border 
Security Act have placed additional, costly requirements upon the State 
Department to update databases, interview more visa applicants, gather 
biometric information in the visa interview process and input that 
biometric information into shared databases, adjudicate a larger number 
of applications annually, and reduce the amount of consular activities 
that may be performed by foreign service nationals. Only cleared 
Americans may perform certain consular tasks. This is all at a time when 
visa applications have decreased by more than 2 million since 2001, 
thereby reducing receipts by an anticipated shortfall of $200 million in 
2004. In July 2002, there was an increase in the MRV fee from $65 to 
$100. Rather than request an additional appropriation in 2004, the 
Administration proposes another MRV fee increase to cover the shortfall. 
However, prior to any new fee increase, the Department of State must 
evaluate in a revised cost-of-service study the likely effects of an 
increase.

Department of Veterans Affairs

  Establish an annual enrollment fee for PL 7 and PL 8 veterans (non-
disabled, higher income).--Legislation will be proposed to establish an 
annual enrollment fee of $250 for Priority Level 7 and 8 veterans. The 
increased receipts will allow the Department of Veterans Affairs to 
refocus the medical care system on caring for its core population, which 
is service-connected and lower-income veterans.

Corps of Engineers

  Fees transferred from the Power Marketing Administrations.--Beginning 
in 2003, the Administration proposes that financing of the operation and 
maintenance costs of the Corps of Engineers in the Southeastern, 
Southwestern, and Western service areas of the Power Marketing 
Administrations be funded by receipts from the Power Marketing 
Administrations in these areas. These receipts are derived from the sale 
of power and related services. This proposal transfers Power Marketing 
Administration receipts to the Corps of Engineers equivalent to its 
operating and maintenance costs for the facilities in these areas. The 
Bonneville Power Administration already funds certain Corps of 
Engineers' hydropower facilities in this fashion.

Environmental Protection Agency

  Extension of pesticide maintenance fee.--As authorized by the Federal 
Insecticide, Fungicide, and Rodenticide Act, EPA currently collects a 
maintenance fee to fund a portion of its pesticide reregistration and 
tolerance reassessment activities. The authorization to

[[Page 93]]

collect these fees was scheduled to expire at the end of fiscal year 
2001 but was extended through appropriations language through fiscal 
year 2002. The Administration is proposing to extend the authority to 
collect these fees at $8 million annually through fiscal year 2006.

Commodity Futures Trading Commission

  Fees on each round-turn commodities futures and options transaction.--
The Commodity Futures Trading Commission (CFTC) regulates U.S. futures 
and options markets. It strives to protect investors by preventing fraud 
and abuse and ensuring adequate disclosure information. The President's 
2003 Budget proposed a fee on each round-turn commodities futures and 
options transaction. This proposal recognized that market participants 
derive direct benefit from CFTC's oversight, which provides legal 
certainty and contributes to the integrity and soundness of the markets. 
The fee is not proposed for 2004 and may be reconsidered after 
additional analysis.

2. Offsetting receipts

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 92 percent of its budget authority in 2008, 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 $558 million in 2005 to $202 million in 2006. With an 
extension at 90 percent, fees would be an estimated $569 million in 
2006, an increase of $367 million.

B. User Charge Proposals to Offset Mandatory Spending

1. Offsetting collections

Federal Deposit Insurance Corporation
  Deposit insurance fees.--The Federal Deposit Insurance Corporation 
(FDIC) insures deposits in bank and savings associations (thrifts) 
through the Bank Insurance Fund (BIF) and the Savings Association Fund 
(SAIF). The 2004 Budget proposes to merge the BIF and the SAIF, which 
offer an identical product. The FDIC is required to maintain a 
designated reserve ratio (DRR, the ratio of insurance fund reserves to 
total insured deposits) of 1.25 percent. If insurance fund reserves fall 
below the DRR, the FDIC must charge sufficient premiums to restore the 
reserve ratio to 1.25 percent. The Administration's 2004 Budget assumes 
that some premium fees will be required to maintain the DRR in 2004 and 
beyond. A merged fund is projected to reduce the need for FDIC-insured 
depository institutions to increase premium payments over the near-term.

2. Offsetting receipts

Department of Agriculture

  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 Energy

  Arctic National Wildlife Refuge, collections for research and 
development.--The budget includes a proposal to authorize the Department 
of the Interior to conduct environmentally responsible oil and gas 
exploration and development within a small area of the Arctic National 
Wildlife Refuge, sometimes referred to as the ``1002 Area,'' located in 
northern Alaska. The Department of the Interior estimates that 
recoverable oil from this area is between 5.7 and 16 billion barrels of 
oil. The budget assumes that the first oil and gas lease sale would be 
held in 2005 and would result in $2.4 billion in new revenues. Beginning 
in 2005 the budget would dedicate one-half of the first lease sale, $1.2 
billion, to fund increased research and development on renewable energy 
technology by the Department of Energy over a seven-year period. All oil 
and gas revenues from the 1002 Area would be shared fifty percent with 
the State of Alaska, including the estimated $2 million annual rental 
payments.
  Transfer certain Power Marketing Administration fees to the Corps of 
Engineers.--Beginning in 2003, the Administration proposes that 
financing of the operation and maintenance costs of the Corps of 
Engineers in the Southeastern, Southwestern, and Western service areas 
of the Power Marketing Administration be funded by receipts from the 
Power Marketing Administrations in these areas. This proposal is 
discussed under the Corps of Engineers above.


[[Page 94]]


Department of Homeland Security

  Border and transportation security conveyance, passenger, and 
merchandise processing fees.--The Administration proposes the 
reauthorization of two user fees: the border security conveyance and 
passenger fees; and the merchandise processing fee. The Border and 
Transportation Security Directorate currently collects nine different 
conveyance and passenger user fees under the Consolidated Omnibus Budget 
Reconciliation Act (COBRA) of 1985 and related statues and a merchandise 
processing fee established by the Omnibus Budget Reconciliation Act 
(OBRA) of 1986, all of which are set to expire on September 30, 2003.

Department of the Interior

  Recreation fees.--The Administration proposal gives permanent 
authority for bureaus in the Department of the Interior (DOI) to collect 
and spend the receipts from entrance and other recreation fees. DOI's 
National Park Service, Fish and Wildlife Service, and Bureau of Land 
Management are currently authorized to do so through 2004 under the 
recreation fee demonstration program.
  Bureau of Land Management land sale authority.--The Administration 
will propose legislation to amend BLM's land sale authority under the 
Federal Land Transaction Facilitation Act (FLTFA) to: (1) allow BLM to 
use updated management plans to identify areas suitable for disposal, 
(2) allow a portion of the receipts to be used by BLM for restoration 
projects, and (3) cap receipt retention at $100 million per year. BLM is 
currently limited to selling lands that had been identified for disposal 
in land use plans that were in effect prior to enactment of FLTFA. Use 
of the receipts is currently limited to the purchase of other lands for 
conservation purposes.
  Arctic National Wildlife Refuge collections for payments to Alaska.--
The budget includes a proposal to authorize the Department of the 
Interior to conduct environmentally responsible oil and gas exploration 
and development within a small area of the Arctic National Wildlife 
Refuge, sometimes referred to as the ``1002 Area,'' located in northern 
Alaska. This proposal is discussed under the Department of Energy above.

Federal Communications Commission

  Spectrum license user fees.--To continue to promote efficient spectrum 
use, the Administration proposes new authority for the FCC to set user 
fees on unauctioned spectrum licenses, based on public-interest and 
spectrum-management principles. Fee collections are estimated to begin 
in 2005 and total $1.9 billion in the first ten years.
  Analog spectrum fee.--To encourage television broadcasters to vacate 
the analog spectrum after 2006, as required by law, 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. Upon return of their analog spectrum license to the 
FCC, individual broadcasters will be exempt from the fee, and fee 
collections would decline.
  Extend auction authority.--The Administration will propose legislation 
to extend indefinitely the FCC's authority to auction spectrum licenses, 
which expires in 2007. Reductions in estimated receipts in 2007 and 2008 
resulting from possible shifting of spectrum auctions from 2007 into 
later years are more than offset by higher estimated receipts for those 
auctions in 2009 and 2010 as well as future new auctions. Estimated 
additional receipts from this proposal are $2.2 billion over the next 
ten years.

3. Governmental receipts

Department of the Interior

  Extend abandoned mine reclamation fees.--Collections from abandoned 
mine reclamation fees are allocated to States for reclamation grants. 
Current fees of 35 cents per ton for surface mined coal, 15 cents per 
ton for underground mined coal, and 10 cents per ton for lignite coal 
are scheduled to expire on September 30, 2004. Abandoned land problems 
are expected to exist in certain States after all the money from the 
collection of fees under current law is expended. The Administration 
proposes to extend these fees until the most significant abandoned mine 
land problems are fixed. The Administration also proposes to modify the 
authorization language to allocate more of the receipts collected toward 
restoration of abandoned coal mine land.
  National Indian Gaming Commission activity fees.--The National Indian 
Gaming Commission regulates and monitors gaming operations conducted on 
Indian lands. Since 1998, the Commission has been prohibited from 
collecting more than $8 million in annual fees from gaming operations to 
cover the costs of its oversight responsibilities. The Administration 
proposes to amend the current fee structure so that the Commission can 
adjust its activities to the growth in the Indian gaming industry.

Department of the Treasury

  Extend Internal Revenue Service user fees.--The Administration 
proposes to extend for two years, through September 30, 2005, the IRS's 
authority to charge fees for written responses to questions from 
individuals, corporations, and organizations related to their tax status 
or the effects of particular transactions for tax purposes. Under 
current law, these fees are scheduled to expire effective with requests 
made after September 30, 2003.

[[Page 95]]

                OTHER OFFSETTING COLLECTIONS AND RECEIPTS

  Table 5-4 shows the distribution of user charges and other offsetting 
collections and receipts according to whether they are offsetting 
collections credited to expenditure accounts or offsetting receipts. The 
table shows that total offsetting collections and receipts from the 
public are estimated to be $234.6 billion in 2004. Of these, an 
estimated $152.2 billion are offsetting collections credited to 
appropriation accounts and an estimated $82.4 billion are deposited in 
offsetting receipt accounts.
  Information on the user charges presented in Table 5-4 is available in 
Tables 5-2 and 5-3 and the discussion that accompanies those tables. 
Major offsetting collections deposited in expenditure accounts that are 
not user charges are pre-credit reform loan repayments and collections 
from States to supplement payments in the supplemental security income 
program. Major offsetting receipts that are not user charges include 
military assistance program sales 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 $492.6 billion 
in 2004--$410.2 billion are intragovernmental transactions, and $82.4 
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 96]]



    Table 5-4.   OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
                        (In millions of dollars)
------------------------------------------------------------------------
                                                       Estimate
                                2002  Actual ---------------------------
                                                  2003          2004
------------------------------------------------------------------------
Offsetting collections
 credited to expenditure
 accounts:

   User charges:..............
     Postal service stamps and        64,597        69,437        70,159
     other postal fees........
     Defense Commissary Agency         4,983         5,100         5,174
     Federal employee                  6,495         7,283         8,051
     contributions for
     employees and retired
     employees health benefits
     funds....................
     Sale of energy:
       Tennessee Valley                6,959         6,986         7,196
       Authority..............
       Bonneville Power                3,650         3,807         4,010
       Administration.........
     All other user charges           27,128        30,775        31,921
     \1\......................
                               -----------------------------------------
       Subtotal, user charges.       113,812       123,388       126,511
   Other collections credited
   to expenditure accounts:
     Pre-credit reform loan           16,132        13,526        13,763
     repayments...............
     Supplemental security             3,735         3,949         4,056
     income (collections from
     the States)..............
     Other collections........        10,008         8,637         7,829
                               -----------------------------------------
       Subtotal, other                29,875        26,112        25,648
       collections............
                               -----------------------------------------
     Subtotal, collections           143,687       149,500       152,159
     credited to expenditure
     accounts.................

Offsetting receipts:

   User charges:
     Medicare premiums........        25,952        28,269        30,998
     Outer Continental Shelf           5,024         4,300         3,989
     rents, bonuses, and
     royalties................
     All other user charges           10,557        11,762        11,974
     \1\......................
                               -----------------------------------------
       Subtotal, user charges         41,533        44,331        46,961
       deposited in receipt
       accounts...............
   Other collections deposited
   in receipt accounts:
     Military assistance              11,225        12,259        11,974
     program sales............
     Interest income..........        12,449        12,873        14,025
     All other collections            13,084        18,617         9,464
     deposited in receipt
     accounts.................
                               -----------------------------------------
       Subtotal, other                36,758        43,749        35,463
       collections deposited
       in receipt accounts....
                               -----------------------------------------
     Subtotal, collections            78,291        88,080        82,424
     deposited in receipt
     accounts.................
                               =========================================
Total, offsetting collections        221,978       237,580       234,583
 and receipts from the public.

Total, offsetting collections        156,902       167,993       164,286
 and receipts excluding off-
 budget.......................

           ADDENDUM:

 User charges that are               155,345       167,719       173,472
 offsetting collections and
 receipts \2\.................
 Other offsetting collections         66,633        69,861        61,111
 and receipts from the public.
                               -----------------------------------------
   Total, offsetting                 221,978       237,580       234,583
   collections and receipts
   from the public............
------------------------------------------------------------------------
\1\For additional detail on items classified as user charges, see Table
  5-2.
\2\ Excludes user charges that are classified on the receipts side of
  the budget. For total user charges, see Table 5-1 or Table 5-2.


[[Page 97]]


                                     Table 5-5.  OFFSETTING RECEIPTS BY TYPE
                                            (In millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                         Estimate
           Source                2002    -----------------------------------------------------------------------
                                Actual       2003        2004        2005        2006        2007        2008
----------------------------------------------------------------------------------------------------------------
      INTRAGOVERNMENTAL
        TRANSACTIONS
On-budget receipts:
  Federal intrafund
   transactions:
    Distributed by agency:
      Interest from the            2,040       2,268       2,482       2,316       2,137       2,001       1,941
       Federal Financing
       Bank.................
        Proposed Legislation  ..........         -23         -72        -123        -150        -148        -133
         (non-PAYGO)........
      Interest on Government       1,244       1,022       1,062       1,473       1,357       1,414       1,243
       capital in
       enterprises..........
      General fund payments
       to retirement and
       health benefits
       funds:
        DoD retiree health    ..........      15,111      16,470      18,040      19,787      21,689      23,757
         care fund..........
      Other.................       3,363       2,402       2,522       2,676       2,759       2,685       2,430
        Proposed Legislation  ..........  ..........  ..........           8          21          36          51
         (non-PAYGO)........
    Undistributed by agency:
      Employing agency
       contributions:
        DoD retiree health    ..........       7,656       8,374       8,880       9,437      10,029      10,656
         care fund..........
                             -----------------------------------------------------------------------------------
      Total Federal                6,647      28,436      30,838      33,270      35,348      37,706      39,945
       intrafunds...........
                             -----------------------------------------------------------------------------------
    Trust intrafund
     transactions:
      Distributed by agency:
      Payments to railroad         5,149      21,586       4,027       6,597       6,291       6,582       6,690
       retirement...........
      Other.................  ..........           1           1           1           1           1           1
                             -----------------------------------------------------------------------------------
      Total trust intrafunds       5,149      21,587       4,028       6,598       6,292       6,583       6,691
                             -----------------------------------------------------------------------------------
    Total intrafund               11,796      50,023      34,866      39,868      41,640      44,289      46,636
     transactions...........
                             -----------------------------------------------------------------------------------
  Interfund transactions:
    Distributed by agency:
      Federal fund payments
       to trust funds:
        Contributions to
         insurance programs:
          Military                17,047      17,928      18,617      19,269      19,944      20,643      21,365
           retirement fund..
          Supplementary           78,319      80,905      94,518      96,192     101,018     106,365     113,409
           medical insurance
            Proposed          ..........  ..........  ..........         -25          -8  ..........  ..........
             Legislation
             (non-PAYGO)....
          Hospital insurance      11,693       8,460       9,028       9,505      10,191      11,007      12,150
          Railroad social             94         114         105         114         116         122         129
           security
           equivalent fund..
          Rail industry              242         330         292         300         309         321         334
           pension fund.....
          Civilian                22,368      22,747      23,036      23,335      23,740      24,245      24,748
           supplementary
           retirement
           contributions....
            Proposed          ..........       2,059       2,085       2,300       2,495       2,600       2,799
             Legislation
             (non-PAYGO)....
          Unemployment               718       1,188         641         512         507         518         537
           insurance........
          Other                      540         481         511         513         515         518         516
           contributions....
                             -----------------------------------------------------------------------------------
          Subtotal..........     131,021     134,212     148,833     152,015     158,827     166,339     175,987
                             -----------------------------------------------------------------------------------
        Miscellaneous              1,429       1,026       1,674       1,462       1,509       1,491       1,547
         payments...........
          Proposed            ..........  ..........       2,468  ..........  ..........  ..........  ..........
           Legislation (non-
           PAYGO)...........
                             -----------------------------------------------------------------------------------
        Subtotal............     132,450     135,238     152,975     153,477     160,336     167,830     177,534
                             -----------------------------------------------------------------------------------
      Trust fund payments to
       Federal funds:
        Quinquennial          ..........  ..........  ..........  ..........  ..........  ..........  ..........
         adjustment for
         military service
         credits............
        Other...............       1,139       1,142       1,128       1,185       1,225       1,255       1,285
          Proposed            ..........  ..........       1,851        -444        -433        -429        -423
           Legislation (non-
           PAYGO)...........
                             -----------------------------------------------------------------------------------
        Subtotal............       1,139       1,142       2,979         741         792         826         862
                             -----------------------------------------------------------------------------------
      Total interfunds           133,589     136,380     155,954     154,218     161,128     168,656     178,396
       distributed by agency
                             -----------------------------------------------------------------------------------
    Undistributed by agency:
      Employer share,
       employee retirement
       (on-budget):
        Civil service             10,731       9,975      10,739      11,565      12,555      13,235      13,856
         retirement and
         disability
         insurance..........
        CSRDI from Postal          6,763       7,026       7,221       7,479       7,584       7,822       8,233
         Service............
          Proposed            ..........      -3,490      -2,658      -2,851      -2,873      -3,065      -3,411
           Legislation
           (PAYGO)..........
        Hospital insurance         2,191       2,333       2,402       2,533       2,639       2,747       2,902
         (contribution as
         employer) \1\ .....
          Proposed            ..........  ..........  ..........  ..........  ..........  ..........  ..........
           Legislation (non-
           PAYGO)...........
        Postal employer              722         684         683         706         728         751         776
         contributions to
         FHI................
        Military retirement       12,935      12,084      12,546      12,915      13,318      13,765      14,155
         fund...............
        Other Federal                147         145         149         153         157         161         165
         employees
         retirement.........
                             -----------------------------------------------------------------------------------

[[Page 98]]


        Total employer            33,489      28,757      31,082      32,500      34,108      35,416      36,676
         share, employee
         retirement (on-
         budget)............
                             -----------------------------------------------------------------------------------
        Interest received by      76,494      73,901      75,589      78,229      81,730      85,495      89,573
         on-budget trust
         funds..............
          Proposed            ..........          24         -57         -37         -35         -27         -31
           Legislation (non-
           PAYGO)...........
                             -----------------------------------------------------------------------------------
      Total interfund            109,983     102,682     106,614     110,692     115,803     120,884     126,218
       transactions
       undistributed by
       agency...............
                             -----------------------------------------------------------------------------------
    Total interfund              243,572     239,062     262,568     264,910     276,931     289,540     304,614
     transactions...........
                             -----------------------------------------------------------------------------------
  Total on-budget receipts..     255,368     289,085     297,434     304,778     318,571     333,829     351,250
                             -----------------------------------------------------------------------------------
Off-budget receipts:
  Trust intrafund
   transactions:
    Distributed by agency:
  Interfund transactions:
    Distributed by agency:
      Federal fund payments
       to trust funds:
        Old-age, survivors,       13,553      13,046      13,379      14,415      15,344      16,645      18,156
         and disability
         insurance..........
          Proposed            ..........  ..........         628  ..........  ..........  ..........  ..........
           Legislation (non-
           PAYGO)...........
    Undistributed by agency:
        Employer share,            9,292       9,493      10,023      10,794      11,482      12,159      13,043
         employee retirement
         (off-budget).......
        Interest received by      76,819      83,576      88,698      96,769     106,122     116,995     129,253
         off-budget trust
         funds..............
                             -----------------------------------------------------------------------------------
  Total off-budget receipts:      99,664     106,115     112,728     121,978     132,948     145,799     160,452
                             -----------------------------------------------------------------------------------
Total intragovernmental          355,032     395,200     410,162     426,756     451,519     479,628     511,702
 transactions...............
                             ===================================================================================
  PROPRIETARY RECEIPTS FROM
         THE PUBLIC
Distributed by agency:
  Interest:
    Interest on foreign              612         598         592         584         567         591         506
     loans and deferred
     foreign collections....
    Interest on deposits in          341         225         450         700         700         700         700
     tax and loan accounts..
    Other interest                11,443      12,015      12,951      14,008      14,620      15,270      16,022
     (domestic--civil) \2\ .
                             -----------------------------------------------------------------------------------
    Total interest..........      12,396      12,838      13,993      15,292      15,887      16,561      17,228
                             -----------------------------------------------------------------------------------
    Dividends and other               52          35          32          32          32          32          32
     earnings...............
  Royalties and rents.......       1,497       1,964       1,901       1,969       1,956       1,914       1,947
  Sale of products:
    Sale of timber and other         322         211         220         220         236         248         258
     natural land products..
    Sale of minerals and              20          24          32          36          40          43          44
     mineral products.......
    Sale of power and other          644         684         679         691         717         728         739
     utilities..............
      Proposed Legislation    ..........        -149        -145        -148        -151        -154        -158
       (PAYGO)..............
    Other \2\ ..............         115          81          70          71          71          72          73
                             -----------------------------------------------------------------------------------
    Total sale of products..       1,101         851         856         870         913         937         956
                             -----------------------------------------------------------------------------------
  Fees and other charges for
   services and special
   benefits:
    Medicare premiums and         25,952      28,269      30,998      32,861      34,534      36,339      38,755
     other charges (trust
     funds).................
      Proposed Legislation    ..........  ..........  ..........         -35         -12  ..........  ..........
       (non-PAYGO)..........
    Nuclear waste disposal           712         736         743         749         754         756         767
     revenues...............
    Veterans life insurance          185         183         171         155         140         127         114
     (trust funds)..........
    Other \2\ ..............       3,674       3,649       4,320       4,263       4,492       4,741       5,003
      Proposed Legislation    ..........  ..........  ..........          76          90          92          98
       (PAYGO)..............
                             -----------------------------------------------------------------------------------
    Total fees and other          30,523      32,837      36,232      38,069      39,998      42,055      44,737
     charges................
                             -----------------------------------------------------------------------------------
  Sale of Government
   property:
    Sale of land and other           123         299         106         107         114         135         160
     real property \2\ .....
      Proposed Legislation    ..........  ..........          10          25          34          42          50
       (PAYGO)..............
    Military assistance           11,225      12,259      11,974      10,882      10,849      11,044      11,243
     program sales (trust
     funds).................
    Other...................         759         127          80          55          52           9           1
                             -----------------------------------------------------------------------------------
    Total sale of Government      12,107      12,685      12,170      11,069      11,049      11,230      11,454
     property...............
                             -----------------------------------------------------------------------------------
  Realization upon loans and
   investments:
    Negative subsidies and         6,216       9,586         813         866         893         924         959
     downward reestimates...
    Repayment of loans to             71          85          88          94         108          25          28
     foreign nations........

[[Page 99]]


    Other...................         105          92          88          84          80          78          75
                             -----------------------------------------------------------------------------------
    Total realization upon         6,392       9,763         989       1,044       1,081       1,027       1,062
     loans and investments..
                             -----------------------------------------------------------------------------------
  Recoveries and refunds \2\       3,580       5,867       5,335       3,638       3,548       3,655       3,762
   .........................
    Proposed Legislation      ..........  ..........          14          30         -56        -109        -114
     (PAYGO)................
  Miscellaneous receipt            1,622       1,852       1,876       1,893       1,922       1,942       1,965
   accounts \2\ ............
                             -----------------------------------------------------------------------------------
  Total proprietary receipts      69,270      78,692      73,398      73,906      76,330      79,244      83,029
   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          197         569         615         499         481         583         418
     rents and bonuses......
    Outer Continental Shelf        4,827       3,731       3,374       3,996       4,674       4,761       4,778
     royalties..............
    Arctic National Wildlife
     Refuge:
    Arctic National Wildlife  ..........  ..........  ..........  ..........  ..........  ..........  ..........
     Refuge.................
      Proposed Legislation    ..........  ..........  ..........       2,402           2         202           2
       (PAYGO)..............
  Sale of major assets......  ..........  ..........  ..........         323  ..........  ..........  ..........
                             -----------------------------------------------------------------------------------
  Total proprietary receipts       5,025       4,300       3,989       7,220       5,157       5,546       5,198
   from the public
   undistributed by agency..
                             -----------------------------------------------------------------------------------
Total proprietary receipts        74,295      82,992      77,387      81,126      81,487      84,790      88,227
 from the public \3\ .......
                             ===================================================================================
   OFFSETTING GOVERNMENTAL
          RECEIPTS
Distributed by agency:
  Defense cooperation.......          12          12          12          12          12          12          12
  Regulatory fees \2\ ......       3,908       4,854       3,339       3,436       3,519       3,609       3,700
    Proposed Legislation      ..........          63           4           8           8           8           8
     (non-PAYGO)............
    Proposed Legislation      ..........  ..........       1,398       1,490       1,588       1,692       1,804
     (PAYGO)................
  Other.....................          75          79          84          85          85          88          89
Undistributed by agency:
  Spectrum auction proceeds.           1          80         200       8,200       8,100       4,300       4,300
    Proposed Legislation      ..........  ..........  ..........          10          25      -1,450      -1,400
     (PAYGO)................
                             -----------------------------------------------------------------------------------
  Total offsetting                 3,996       5,088       5,037      13,241      13,337       8,259       8,513
   governmental receipts....
                             ===================================================================================
Total offsetting receipts...     433,323     483,280     492,586     521,123     546,343     572,677     608,442
----------------------------------------------------------------------------------------------------------------
\1\ Includes provision for covered Federal civilian employees and military personnel.
\2\ Includes both Federal funds and trust funds.
\3\ Consists of:


----------------------------------------------------------------------------------------------------------------
                                                                            Estimate
                                        2002   -----------------------------------------------------------------
                                       Actual      2003       2004       2005       2006       2007       2008
----------------------------------------------------------------------------------------------------------------
On-budget:
  Federal Funds....................     35,631     40,725     32,309     35,247     33,928     35,219     36,043
  Trust Funds......................     38,581     42,185     44,995     45,795     47,473     49,483     52,094
Off-budget.........................         83         82         83         84         86         88         90
----------------------------------------------------------------------------------------------------------------