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

    [[Page 271]]

                     17.  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 25: ``The Budget System and Concepts''
    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 17-1 summarizes these transactions. For 2005, total offsetting
    collections and receipts from the public are estimated to be $240.0
    billion, and total user charges are estimated to be $182.2 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 20-1, ``Outlays to the Public,
    Net and Gross,'' which appears in Chapter 20 of this volume.

      Table 17-1.  GROSS OUTLAYS, USER CHARGES, OTHER OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC, AND NET
                                                         OUTLAYS
                                                      (in billions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                     Estimate
                                                                                    Actual   -----------------------
                                                                                     2003        2004        2005
    ----------------------------------------------------------------------------------------------------------------
    Gross outlays...............................................................     2,389.0     2,556.6     2,639.9
      Offsetting collections and receipts from the public:
        User charges \1\........................................................       159.6       169.6       179.4
        Other...................................................................        71.7        68.2        60.6
                                                                                 -----------------------------------
          Subtotal, offsetting collections and receipts from the public.........       231.3       237.8       240.0
                                                                                 -----------------------------------
    Net outlays.................................................................     2,157.6     2,318.8     2,399.8

    ----------------------------------------------------------------------------------------------------------------
    \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 17-2, ``Total User Charge Collections.''

    Total user charges:
      Offsetting collections and receipts from the public....................        159.6        169.6        179.4
      Receipts...............................................................          2.6          2.8          2.9
                                                                              --------------------------------------
    Total, User charges......................................................        162.2        172.3        182.2

    [[Page 272]]

                                  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 17-2 shows that user charges were
    $162.2 billion in 2003, and are estimated to increase to $172.3 billion
    in 2004 and to $182.2 billion in 2005, growing to an estimated $208.2
    billion in 2009, including the user charges proposals that are shown in
    Table 17-3. This table shows that the Administration's user charge
    proposals, including extension of expiring proposals, would increase
    user charges by an estimated $2.3 billion in 2005, growing to an
    estimated $7.5 billion in 2009.

      Definition. 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 ``user charges'' concept used here 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 definition 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.

    [[Page 273]]

      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
    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 17-1,
    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 $2.9 billion in 2005 are classified this way and
    are included in the totals described in Chapter 16. ``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 $179.4 billion in 2005, 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 on
    the spending side as offsetting collections or receipts.
      An estimated $124.3 billion of user charges for 2005 are credited
    directly to expenditure accounts, and are generally available for
    expenditure when they are collected, without further action by the
    Congress. An estimated $55.1 billion of user charges for 2005 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 17-2 and 17-3
    identify the user 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 user charges generally
    controlled through annual appropriations acts and under the jurisdiction
    of the appropriations committees in the Congress. ``Mandatory'' refers
    to user charges controlled by permanent laws and under the jurisdiction
    of the authorizing committees.
      These and other classifications are discussed further in this volume
    in Chapter 25, ``The Budget System and Concepts.''

                             II.  Total User Charges

      As shown in Table 17-2, total user charge collections (including those
    proposed in this budget) are estimated to be $182.2 billion in 2005,
    increasing to $208.2 billion in 2009. 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 2005.

    [[Page 274]]

                                       Table 17-2.  TOTAL USER CHARGE COLLECTIONS
                                                (in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimates
                                                 Actual  -----------------------------------------------------------
                                                  2003      2004      2005      2006      2007      2008      2009
    ----------------------------------------------------------------------------------------------------------------
                     Receipts

    Agricultural quarantine inspection fees...       231       260       274       272       279       287       294
    Abandoned mine reclamation fund...........       282       278       239       245       252       256       262
    Department of State immigration, passport,       642       634       627       651       675       702       729
     and consular fees........................
    Corps of Engineers harbor maintenance fees       758       812       886       965     1,036     1,051     1,074
    Other.....................................       705       770       825       831       838       635       635
                                               ---------------------------------------------------------------------
      Subtotal, receipts......................     2,618     2,754     2,851     2,964     3,080     2,931     2,994

     Offsetting Collections and Receipts from
                    the Public

    Discretionary

    Department of Agriculture: Food safety           106       140       308       305       307       310       312
     inspection and other fees................
    Department of Commerce: Patent and             1,395     1,506     1,767     1,900     2,013     2,135     2,222
     trademark, fees for weather services, and
     other fees...............................
    Department of Defense: Commissary and          7,309     9,008     9,098    10,770    10,534    10,534    10,534
     other fees...............................
    Department of Energy: Federal Energy             915     1,069     1,729     1,710     1,716     1,729     1,731
     Regulation Commission, power marketing,
     and other fees...........................
    Department of Health and Human Services:         891       771       974       963       966       968       970
     Food and Drug Administration, Centers for
     Medicare and Medicaid Services, and other
     fees.....................................
    Department of Homeland Security: Border        1,558     2,387     2,510     2,639     2,771     2,909     3,044
     and Transportation Security and other
     fees.....................................
    Department of the Interior: Minerals             306       291       360       347       338       356       354
     Management Service and other fees........
    Department of Justice: Fees for bankruptcy       265       266       306       298       299       301       301
     oversight and other fees.................
    Department of State: Passport and other          877       949     1,222     1,260     1,312     1,363     1,413
     fees.....................................
    Department of Transportation: Motor               84       100       101       104       105       107       109
     carrier safety and other fees............
    Department of the Treasury: Sale of            1,393     1,518     1,580     1,540     1,542     1,550     1,553
     commemorative coins and other fees.......
    Department of Veterans Affairs: Medical        1,626     1,989     2,531     2,647     2,773     2,905     3,044
     care and other fees......................
    Social Security Administration, State            107       120       121       118       118       119       119
     supplemental fees, supplemental security
     income...................................
    Federal Communications Commission:               363       358       364       355       355       357       357
     Regulatory fees..........................
    Federal Trade Commission: Regulatory fees.        61       135       170       183       188       191       194
    Nuclear Regulatory Commission: Regulatory        526       546       541       532       535       541       545
     fees.....................................
    Securities and Exchange Commission:            1,000     1,547     1,806     2,146     1,115     1,147     1,332
     Regulatory fees..........................
    All other agencies, discretionary user           654       430       588       576       589       599       600
     fees.....................................
                                               ---------------------------------------------------------------------
      Subtotal, discretionary user charges....    19,436    23,130    26,076    28,393    27,576    28,121    28,734

    Mandatory

    Department of Agriculture: Crop insurance      1,469     1,878     1,800     1,879     1,912     1,927     1,938
     and other fees...........................
    Department of Defense: Commissary                690       694       661       593       484       475       441
     surcharge and other fees.................
    Department of Energy: Proceeds from the        4,829     4,945     4,055     4,132     3,966     4,021     4,098
     sale of energy, nuclear waste disposal
     fees, and other fees
    Department of Health and Human Services:      28,466    32,253    36,926    38,904    40,196    42,601    45,171
     Medicare Part B insurance premiums, and
     other fees
    Department of Homeland Security: Customs,      4,888     5,131     5,677     5,784     5,971     6,159     6,357
     immigration, and other fees..............
    Department of the Interior: Recreation and     2,941     3,359     4,077     3,434     3,442     3,531     3,397
     other fees...............................
    Department of Justice: Federal Prison            295       361       403       409       374       380       386
     Commissary fees and other fees...........
    Department of Labor: Insurance premiums to     1,490     2,605     3,005     3,220     3,662     3,579     3,642
     guaranty private pensions and other fees.
    Department of the Treasury: Bank                 712       747       848       858       867       883       901
     regulation, and other fees...............
    Department of Veterans Affairs: Veterans       1,857     1,674     1,633     1,586     1,542     1,509     1,483
     life insurance and other fees............
    Office of Personnel Management: Federal        8,951     9,937    10,696    11,360    12,162    13,117    14,014
     employee health and life insurance fees..
    Federal Deposit Insurance Corporation:         1,655     1,351     1,153     1,431     2,516     3,972     4,672
     Deposit insurance fees...................
    National Credit Union Administration:            508       556       566       483       512       544       578
     Credit union share insurance and other
     fees.....................................
    Postal Service: Fees for postal services..    67,752    67,916    68,134    68,885    69,575    70,265    70,955
    Tennessee Valley Authority: Proceeds from      7,255     7,513     7,959     7,997     8,104     8,147     8,242
     the sale of energy.......................
    Allowances, spectrum relocation fund......  ........  ........  ........     1,250     1,250  ........  ........
    Undistributed Offsetting Receipts: Sale of     5,029     4,587     4,855    17,382    15,465     8,918     9,290
     spectrum licenses, OCS receipts, and
     other fees...............................
    All other agencies, mandatory user fees...     1,380       925       860       904       919       926       923
                                               ---------------------------------------------------------------------
      Subtotal, mandatory user charges........   140,167   146,432   153,308   170,491   172,919   170,954   176,488
                                               ---------------------------------------------------------------------
    Subtotal, user charges that are offsetting   159,603   169,562   179,384   198,884   200,495   199,075   205,222
     collections and receipts from the public.
                                               =====================================================================
    TOTAL, User charges.......................   162,221   172,316   182,235   201,848   203,575   202,006   208,216
    ----------------------------------------------------------------------------------------------------------------

    [[Page 275]]

                           III.  User Charge Proposals

      As shown in Table 17-3, the Administration is proposing new or
    increased user charges, including proposed extensions of expiring
    charges, that would increase collections by an estimated $2.3 billion in
    2005, increasing to $7.5 billion in 2009.

    A.  User Charge Proposals to Offset Discretionary Spending

    1. Offsetting collections

    Department of Agriculture

      Food Safety and Inspection Service.--The Administration proposes a new
    user fee for the 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 cover the cost of a primary eight hour
    shift and the establishments would pay for additional complete work
    shifts. Currently, establishments pay for overtime when it is less than
    one complete shift.
      The Grain Inspection, Packers, and Stockyards Administration
    (GIPSA).--GIPSA proposes to establish a fee to cover the cost associated
    with GIPSA's standardization activities and a licensing fee to cover the
    cost associated with administering meat packers and stockyards
    activities.
      Animal and Plant Health Inspection Service.--Legislation will be
    proposed to establish user fees for animal welfare inspections, such as
    for animal research centers, humane societies and kennels.

                                           Table 17-3.  USER CHARGE PROPOSALS
                                     (estimated collections in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                2005     2006     2007     2008     2009   2005-2009
    ----------------------------------------------------------------------------------------------------------------
                          DISCRETIONARY

    1. Offsetting collections
    Department of Agriculture
      Food Safety Inspection user fees......................      124      121      121      122      122       610
      Grain Inspection, Packers and Stockyards                     29       28       28       28       29       142
       Administration.......................................
      Animal and Plant Health Inspection Service............       11       11       11       11       11        55

    Department of Commerce
      Patent and Trademark Office...........................      219      264      311      360      383     1,537

    Department of Energy
      Office of Civilian Radioactive Waste Management:            749      754      757      767      767     3,794
       Reclassify fees......................................

    Department of Health and Human Services
      Medicare duplicate or unprocessable claims............      195      195      195      195      195       975
      Medicare appeals reform...............................       10       32       33       34       35       144

    Department of the Interior
      Fees transferred from the Power Marketing                    30       29       29       29       29       146
       Administrations......................................

    Department of Justice
      FBI fees for forensic services........................       39       35       33       33       31       171
      DEA fees for forensic services........................        3        3        3        3        3        15

    Department of State
      Enhanced border security program user fees............      100      105      111      116      122       554

    Department of Transportation
      Motor carrier safety..................................       13       13       13       13       13        65

    Corps of Engineers--Civil Works
      Fees transferred from the Power Marketing                   150      156      160      165      172       803
       Administrations......................................

    2. Offsetting receipts
    Department of Housing and Urban Development
      Office of Federal Housing Enterprise Oversight: GSE         -44      -44      -45      -47      -47      -227
       regulation...........................................

    Department of Veterans Affairs
      Annual enrollment fee.................................      268      281      295      310      326     1,480
      Higher drug copayments................................      135      142      149      156      165       747

    Environmental Protection Agency
      Abolish cap on pre-manufacturing notification fees....        4        8        8        8        8        36
      Remove prohibition on collection of registration fees.       26       27       27       28       28       136

    Nuclear Regulatory Commission
      Extend Nuclear Regulatory Commission fees.............  .......      330      329      330      329     1,318
                                                             -------------------------------------------------------
      Subtotal, discretionary user charges proposals........    2,061    2,490    2,568    2,661    2,721    12,501

    [[Page 276]]

                            MANDATORY
    1. Offsetting collections
    Department of Housing and Urban Development
      Government-sponsored enterprise regulation............        6        6        6        6        6        30

    Department of the Treasury
      Government-sponsored enterprise regulation............       83       81       81       82       82       409

    Federal Deposit Insurance Corporation
      Deposit insurance premiums............................  .......     -570     -744       58       59    -1,197

    Federal Housing Finance Board
      Government-sponsored enterprise regulation............      -34      -32      -34      -35      -36      -171

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

    Department of Energy
      Office of Civilian Radioactive Waste Management:           -749     -754     -757     -767     -767    -3,794
       Reclassify fees......................................
      Fees transferred from the Power Marketing                  -180     -186     -191     -197     -204      -958
       Administrations......................................
      Arctic National Wildlife Refuge, collections for        .......    1,200  .......  .......  .......     1,200
       research and development.............................

    Department of Homeland Security
      Conveyance and passenger fees and merchandise               820    1,391    1,448    1,507    1,570     6,736
       processing fees......................................

    Department of the Interior
      Recreation fees.......................................  .......       38       48       47       47       180
      Hetch Hetchy rental payments..........................        8        8        8        8        8        40
      Bureau of Land Management land sale authority.........       24       33       38       48       48       191
      Arctic National Wildlife Refuge, collection for         .......    1,201        1      101        1     1,304
       payments to Alaska...................................
      Arctic National Wildlife Refuge, rents and bonuses....  .......        1        1      101        1       104

    Department of Labor
      Application fee for the permanent foreign labor              23       23       23       23       23       115
       certification program................................

    Corps of Engineers--Civil Works
      Special recreation user fees..........................        7        7        7        7        7        35

    Federal Communications Commission
      Analog spectrum fee...................................  .......  .......      500      500      480     1,480
      Extend auction authority..............................  .......  .......   -2,000   -2,000    2,800    -1,200
      Spectrum license user fees............................  .......       50      150      300      300       800
                                                             -------------------------------------------------------
      Subtotal, mandatory user charges proposals............        8    2,534   -1,365     -161    4,480     5,496

    3. Governmental receipts
    Department of the Interior
      Extend abandoned mine reclamation fees................      239      245      252      256      262     1,254
      National Indian Gaming Commission, activity fees......  .......        4        4        5        5        18

    Department of the Treasury
      Internal Revenue Service fees.........................       32       44       45       46       47       214
                                                             -------------------------------------------------------
      Subtotal, governmental receipts user charges proposals      271      293      301      307      314     1,486
                                                             -------------------------------------------------------

      Total, User charges proposals.........................    2,340    5,317    1,504    2,807    7,515    19,483
    ----------------------------------------------------------------------------------------------------------------

    Department of Commerce

      Patent and Trademark Office (PTO).--The Administration continues to
    support legislation proposed with the 2004 Budget 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 Energy

      Office of Civilian Radioactive Waste Management--reclassify fees.--The
    Administration proposes legislation to reclassify fees currently paid to
    the Federal government by utilities that generate electricity using
    nuclear power. Fees equal to the amount appropriated would be credited
    as offsets to appropriations for the U.S. nuclear waste management
    program and their classification would be changed from mandatory to
    discretionary. The Department of Energy will require substantial
    additional resources to complete the application process and construct
    the nuclear waste repository at Yucca Mountain, Nevada. This new funding
    mechanism will ensure that adequate funds are available for the
    repository to begin to accept waste in 2010.

    Department of Health and Human Services

      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

    [[Page 277]]

    unprocessable claims would heighten provider awareness of these issues
    and increase efficiency by deterring this action.
      Medicare appeals reform.--The Medicare, Medicaid, and SCHIP (State
    Children's Health Insurance Program) Benefits Improvement and Protection
    Act of 2000 and Medicare Prescription Drug, Improvement, and
    Modernization Act of 2003 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 a reformed appeals process and
    requirements as well as deter appeals submitted with inaccurate or
    insufficient information.

    Department of the Interior

      Fees transferred from the Power Marketing Administrations.--Beginning
    in 2005, the Administration proposes that the Western Area Power
    Administration (WAPA) transfer receipts to directly finance hydropower-
    related operation and maintenance expenses of the Bureau of Reclamation
    in the Department of the Interior in those areas where pre-existing
    direct financing arrangements are not already in place. These receipts
    are derived from the sale of power and related services. This proposal
    transfers WAPA receipts to the Bureau of Reclamation equivalent to its
    operating and maintenance costs for the facilities in these areas. The
    Bureau of Reclamation already has a similar arrangement with the
    Bonneville Power Administration.

    Department of Justice

      Federal Bureau of Investigation (FBI) fees for forensic services.--The
    Administration proposes a new user fee associated with providing
    forensic support to State and local law enforcement agencies.
    Historically, requests from State and local law enforcement agencies
    comprise 25 to 30 percent of the forensic caseload of the FBI
    Laboratory. These services are currently provided at no cost. This
    significant expense to the FBI would be partially offset by the new user
    fee, which will be structured to minimize its impact, particularly on
    small State and local law enforcement agencies.
      Drug Enforcement Administration (DEA) fees for forensic services.--The
    Administration proposes a new user fee associated with providing
    forensic support to the Metropolitan Police Department of the District
    of Columbia (MPD). In 2002, 64 percent of the drug exhibits analyzed by
    DEA's Mid-Atlantic Laboratory were submitted by the MPD. These services
    are currently provided at no cost. The Mid-Atlantic Laboratory is the
    only DEA laboratory where the workload for State and local law
    enforcement agencies exceeds one percent. The proposed fees would be
    structured to offset these costs.

    Department of State

      Enhanced border security program user fees.--The Department of State
    is strengthening the security of its adjudication processes and
    documents as well as striving to meet all biometric-related requirements
    on time. In order to address all border security requirements, in
    addition to the fees currently collected and retained by the Department,
    the Administration is proposing the collection and retention of
    additional resources in 2005.

    Department of Transportation

      Motor carrier safety.--The Federal Motor Carrier Safety Administration
    collects registration and insurance validation fees from motor carriers
    applying to operate in interstate commerce. Carrier registration and
    proof of insurance are necessary for trucking firms to obtain Department
    of Transportation numbers for interstate operations. These fees are
    primarily used to fund the processing of carrier registration and
    insurance actions by the agency's Licensing and Insurance Divisions.

    Corps of Engineers--Civil Works

      Fees transferred from the Power Marketing Administrations (PMAs).--The
    Administration proposes that, starting in 2005, receipts from the sale
    of hydroelectric power generated at certain Federal dams operated by
    Corps of Engineers be used to finance the operation and maintenance of
    those facilities. This direct financing arrangement already exists for
    the Bonneville Power Administration, and the proposal would extend it to
    the Southeastern, Southwestern, and Western Power Administrations in the
    Department of Energy. Replacing the current Corps of Engineers
    appropriations for these activities with direct funding from user fees
    will make it easier to ensure that adequate funding is provided for
    operations and maintenance of these facilities.

    2.  Offsetting receipts

    Department of Housing and Urban Development

      Office of Federal Housing Enterprise Oversight: GSE regulation.--This
    proposal is discussed in the entry for the Department of the Treasury
    below that discusses government-sponsored enterprise regulation.

    Department of Veterans Affairs

      Establish an annual enrollment fee and increased pharmacutical
    copayments for PL 7 and PL 8 veterans (non-disabled, higher income).--
    Legislation will be proposed to establish an annual enrollment fee of
    $250 and an increased pharmaceutical copayment of $15 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--veterans with special needs, service-connected
    disabilities, and lower incomes.

    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

    [[Page 278]]

    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.
      Remove prohibition on collection of registration fees.--The
    Administration is proposing to remove a prohibition on the collection of
    pesticide registration fees. These fees will be collected from entities
    seeking to register their pesticides for use in the United States.

    Nuclear Regulatory Commission

      Extend Nuclear Regulatory Commission (NRC) fees at their 2005 level
    for 2006 and later.--The Omnibus Budget Reconciliation Act (OBRA) of
    1990, as amended, required that the NRC assess license and annual fees
    that recover approximately 90 percent of its budget authority in 2005,
    less the appropriation from the Nuclear Waste Fund. Licensees are
    required to reimburse NRC for its services, because licensees benefit
    from such services. After 2005, the recovery requirement reverts to 33
    percent per year. If the 90 percent requirement is not extended beyond
    2005, fees would drop from an estimated $541 million in 2005 to $202
    million in 2006. With an extension at 90 percent, fees would be an
    estimated $532 million in 2006, an increase of $330 million.

    B. User Charge Proposals to Offset Mandatory Spending

    1.  Offsetting collections

    Department of Health and Human Services

      Child support enforcement fees for never-TANF cases.--The
    Administration is re-proposing legislative proposals from the 2003 and
    2004 budgets to mandate an annual user fee of $25 for child support
    cases for people who have never been on assistance (temporary assistance
    for needy families (TANF), aid to families with dependent children, or
    Medicaid). The Federal and State governments would share in the savings
    proportional to the Federal Financial Participation rate. This fee would
    be collected by State governments.

    Department of Housing and Urban Development

      Government-sponsored enterprise (GSE) regulation.--The Administration
    has proposed broad reform of the supervisory system for government-
    sponsored enterprises (GSEs) in the housing market. Part of this reform
    includes the assessment on Fannie Mae and Freddie Mac of the cost of
    HUD's responsibilities under the Federal Housing Enterprise Safety and
    Soundness Act of 1992 and amendments as proposed. These responsibilities
    include the establishment and enforcement of affordable housing goals
    for the GSEs, ensuring GSE compliance with fair housing laws, and
    providing consultation to the safety and soundness regulator on the
    GSEs' new activities. (For additional information see Chapter 7,
    ``Credit and Insurance'' in this volume, and the Department of Housing
    and Urban Development chapter in the Appendix volume.)

    Department of the Treasury

      Government-sponsored enterprise (GSE) regulation.--The Administration
    has proposed broad reform of the supervisory system for government-
    sponsored enterprises (GSEs) in the housing market. Fees currently
    collected by the Office of Federal Housing Enterprise Oversight and the
    Federal Housing Finance Board would instead be collected by a new
    housing GSE safety and soundness regulator in the Department of the
    Treasury. (For additional information, see Chapter 7, ``Credit and
    Insurance'', in this volume, and the Department of Treasury chapter in
    the Appendix volume.)

    Federal Deposit Insurance Corporation

      Deposit insurance premiuns.--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). This budget proposes to merge the BIF and the SAIF, which offer
    an identical product. The FDIC maintains a reserve ratio of insurance
    fund reserves to total insured deposits of 1.25 percent. If insurance
    fund reserves fall below 1.25 percent, the FDIC will charge sufficient
    premiums to restore the reserve ratio to 1.25 percent. The
    Administration's 2005 Budget assumes that some premium fees will be
    required to maintain the reserve ratio in 2006 and beyond.

    Federal Housing Finance Board

      Government-sponsored enterprise (GSE) regulation.--This proposal is
    discussed above in the entry for the Department of the Treasury.

    2.  Offsetting receipts

    Department of Agriculture

      Forest Service recreation fees.--A recreation fee program is proposed,
    generally consistent with the existing recreation fee demonstration
    program, that would permanently authorize the direct expenditure of
    recreations fees collected by the Forest Service and the Department of
    the Interior beginning in 2005.

    Department of Energy

      Office of Civilian Radioactive Waste Management--reclassify fees.--
    This proposal is discussed under the discretionary Department of Energy
    proposal above.
      Fees transferred from the Power Marketing Administration (PMAs).--
    Beginning in 2005, the Administration proposes that financing of the
    hydropower-related operation and maintenance costs of the Bureau of
    Reclamation in the Department of the Interior and the Corps of Engineers
    be directly funded by receipts from the PMAs--Southeastern,
    Southwestern, and Western Area Power Administrations--in those areas
    where pre-existing direct financing arrangements are not already in
    place. These receipts are derived from the sale of power and related
    services. This proposal would transfer receipts to the Bureau of
    Reclamation and to the Corps of Engineers equivalent to their operating
    and maintenance costs for the facilities in these areas. The Bureau

    [[Page 279]]

    of Reclamation already has similar arrangements with other entities,
    such as the Bonneville Power Administration.
      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 2006 and would result in $2.4 billion in new revenues. Beginning
    in 2006 the budget would dedicate one-half of the first lease sale, $1.2
    billion, to fund increased research and development on renewable energy
    and related 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.

    Department of Homeland Security

      Conveyance and passenger fees and merchandise processing fees.--The
    Administration proposes the reauthorization of two user fees; the Bureau
    of Customs and Border Protection (BCBP) conveyance and passenger fees,
    and the merchandise processing fee. BCBP currently collects multiple
    different conveyance and passenger user fees under the Consolidated
    Omnibus Budget Reconciliation Act (COBRA) of 1985 and related statutes
    and a merchandise processing fee established by the Omnibus Budget
    Reconciliation Act (OBRA) of 1986, all of which are set to expire on
    March 1, 2005.

    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 2005 under the
    recreation fee demonstration program.
      Hetch Hetchy rental payments, Yosemite Management Fund.--This
    legislative proposal would authorize the National Park Service to charge
    rental payments to the City of San Francisco for the Hetch Hetchy
    Reservoir in Yosemite National Park. The proposal would also authorize
    NPS to retain and expend the receipts, without further appropriations,
    for activities in Yosemite National Park.
      Bureau of Land Management's (BLM's) 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; (3) cap receipt retention at $100 million
    per year; (4) extend the authority to 2015; and (5) eliminate the use of
    receipts for land exchanges. 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.

    Department of Labor

      Application fee for the permanent foreign labor certification
    program.--Legislation will be proposed to establish a fee for applicants
    to the Permanent Foreign Labor Certification Program. This fee, which
    would cover the cost of processing new applications, also would
    partially support the administrative costs of backlog reduction in the
    State and regional offices.

    Corps of Engineers--Civil Works

      Special recreation user fees.--The Corps of Engineers manages 4,300
    recreation areas at 456 Corps projects (mostly lakes) in 43 states, used
    annually by millions of visitors. The Administration proposes that the
    Corps participate in the existing Federal Recreation User Fee
    Demonstration project and undertake six recreation demonstration
    projects. This will allow the agency to use the additional user fees it
    collects to modernize and upgrade boating, camping and other outdoor
    recreation facilities at the sites where the fees are collected. The
    initiative will improve the quantity and quality of recreation services
    available to the public.

    Federal Communications Commission

      Analog spectrum fee.--To encourage television broadcasters to vacate
    the analog spectrum after 2006, as required by law, the Administration
    continues to support proposals authorizing the Federal Communications
    Commission (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 continues to support
    proposals 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 $2.4 billion over
    the next ten years.

    [[Page 280]]

      Spectrum license user fees.--To continue to promote efficient spectrum
    use, the Administration continues to support proposals for 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 2006 and total $3.1 billion in the first nine
    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 at a reduced rate to clean up and reclaim
    the most significant abandoned mine land problems in 25 years. 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, there has been a fixed cap on the annual fees
    the Commission may assess 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

      Permanently extend Internal Revenue Service (IRS) user fees.--The
    Administration proposes to permanently extend IRS 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 December 31,
    2004.

                    OTHER OFFSETTING COLLECTIONS AND RECEIPTS

      Table 17-4 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 $240.0 billion in 2005. Of these, an
    estimated $150.6 billion are offsetting collections credited to
    appropriation accounts and an estimated $89.4 billion are deposited in
    offsetting receipt accounts.
      Information on the user charges presented in Table 17-4 is available
    in Tables 17-2 and 17-3 and the discussion that accompanies those
    tables. Major offsetting collections deposited in expenditure accounts
    that are not user charges include collections by the Commodity
    Corporation fund in the Department of Agriculture, which are related to
    loans, collections from States to supplement payments in the
    supplemental security income program, and pre-credit reform loan
    repayments. Major offsetting receipts that are not user charges include
    military assistance program sales and interest income.
      Table 17-5 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 $539.1 billion
    in 2005: $449.6 billion are intragovernmental transactions; and $89.4
    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 20-1, ``Outlays to the Public, Net and Gross,'' which
    appears in Chapter 20 of this volume.

    [[Page 281]]

        Table 17-4.  OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
                            (in millions of dollars)
    ------------------------------------------------------------------------
                                                           Estimate
                                        Actual   ---------------------------
                                         2003         2004          2005
    ------------------------------------------------------------------------
    Offsetting collections credited
     to expenditure accounts:
      User charges:
        Postal service stamps and         67,752        67,916        68,134
         other postal fees..........
        Defense Commissary Agency...       5,064         5,118         5,161
        Employee contributions for         7,235         8,131         8,798
         employees and retired
         employees health benefits
         funds......................
        Sale of energy:
          Tennessee Valley Authority       7,255         7,513         7,959
          Bonneville Power                 3,530         3,646         3,647
           Administration...........
        All other user charges......      24,055        28,024        30,608
                                     ---------------------------------------
          Subtotal, user charges....     114,891       120,348       124,307
      Other collections credited to
       expenditure accounts:
        Commodity Corporation fund..       9,441         9,255        10,844
        Supplemental security income       3,925         4,229         4,314
         (collections from the
         States)....................
        Other collections...........      17,126        11,832        11,111
                                     ---------------------------------------
          Subtotal, other                 30,492        25,316        26,269
           collections..............
                                     ---------------------------------------
        Subtotal, collections            145,383       145,664       150,576
         credited to expenditure
         accounts...................

    Offsetting receipts:
      User charges:
        Medicare premiums...........      28,433        32,169        36,803
        Outer Continental Shelf            5,029         4,587         4,755
         rents, bonuses, and
         royalties..................
        All other user chaarges.....      11,250        12,458        13,519
                                     ---------------------------------------
          Subtotal, user charges          44,712        49,214        55,077
           deposited in receipt
           accounts.................
      Other collections deposited in
       receipt accounts:
        Military assistance program       10,454        11,974        10,882
         sales......................
        Interest income.............      14,018        14,113        13,865
        All other collections             16,752        16,799         9,608
         deposited in receipt
         accounts...................
                                     ---------------------------------------
          Subtotal, other                 41,224        42,886        34,355
           collections deposited in
           receipt accounts.........
                                     ---------------------------------------
      Subtotal, collections               85,936        92,100        89,432
       deposited in receipt accounts
                                     ---------------------------------------
    Total, offsetting collections        231,319       237,764       240,008
     and receipts from the public...

    Total, offsetting collections        163,473       169,738       171,761
     and receipts excluding off-
     budget.........................

    ADDENDUM:
      User charges that are              159,603       169,562       179,384
       offsetting collections and
       receipts \1\.................
      Other offsetting collections        71,716        68,202        60,624
       and receipts from the public.
                                     ---------------------------------------
        Total, offsetting                231,319       237,764       240,008
         collections and receipts
         from the public............
    ------------------------------------------------------------------------
    \1\ Excludes user charges that are classified on the receipts side of
      the budget. For total user charges, see Table 17.1 or Table 17.2.

    [[Page 282]]

                                         Table 17-5. OFFSETTING RECEIPTS BY TYPE
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                             Estimate
               Source                2003    -----------------------------------------------------------------------
                                    Actual       2004        2005        2006        2007        2008        2009
    ----------------------------------------------------------------------------------------------------------------
          INTRAGOVERNMENTAL
            TRANSACTIONS
    On-budget receipts:
      Federal intrafund
       transactions:
        Distributed by agency:
          Interest from the            2,449       1,192       1,186       1,178       1,178       1,187       1,195
           Federal Financing
           Bank.................
          Interest on Government         792         847         945       1,066       1,076       1,072       1,080
           capital in
           enterprises..........
          General fund payments
           to retirement and
           health benefits
           funds:
            DoD retiree health        14,565      16,868      18,576      20,550      22,612      24,886      27,371
             care fund..........
            Other...............       3,218       2,419       2,642       2,718       2,800       2,851       2,991
              Proposed            ..........  ..........           8          15          28          41          51
               Legislation (non-
               PAYGO)...........
              Proposed            ..........           6           6           6           6           6           6
               Legislation
               (PAYGO)..........
        Undistributed by agency:
          Employing agency
           contributions:
            DoD retiree health         8,201       8,356      10,541      11,215      11,914      12,657      13,440
             care fund..........
                                 -----------------------------------------------------------------------------------
          Total Federal               29,225      29,688      33,904      36,748      39,614      42,700      46,134
           intrafunds...........
                                 -----------------------------------------------------------------------------------
        Trust intrafund
         transactions:
          Distributed by agency:
          Payments to railroad        23,233       6,251       6,392       6,082       6,320       6,479       6,552
           retirement...........
          Other.................           1           1           1           1           1           1           1
                                 -----------------------------------------------------------------------------------
          Total trust intrafunds      23,234       6,252       6,393       6,083       6,321       6,480       6,553
                                 -----------------------------------------------------------------------------------
        Total intrafund               52,459      35,940      40,297      42,831      45,935      49,180      52,687
         transactions...........
                                 -----------------------------------------------------------------------------------
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Contributions to
             insurance programs:
              Military                17,928      22,462      23,180      23,973      24,813      25,676      26,565
               retirement fund..
              Supplementary           80,906      96,839     116,896     166,468     181,364     193,195     205,853
               medical insurance
                Proposed          ..........  ..........        -118        -149        -147        -139        -149
                 Legislation
                 (non-PAYGO)....
              Hospital insurance       8,946       8,423       9,667      10,573      11,567      13,218      14,497
              Railroad social            112         120         118         123         132         147         152
               security
               equivalent fund..
              Rail industry              318         326         303         313         324         337         351
               pension fund.....
              Civilian                22,139      26,222      26,629      26,832      27,037      27,440      27,944
               supplementary
               retirement
               contributions....
              Unemployment             1,265       1,377         595         591         599         612         630
               insurance........
              Other                      468         516         535         539         540         534         527
               contributions....
                Proposed          ..........  ..........  ..........  ..........  ..........          13          28
                 Legislation
                 (PAYGO)........
                                 -----------------------------------------------------------------------------------
              Subtotal..........     132,082     156,285     177,805     229,263     246,229     261,033     276,398
                                 -----------------------------------------------------------------------------------
            Miscellaneous                984       1,995       2,098       1,587       1,603       1,633       1,658
             payments...........
              Proposed            ..........  ..........       3,281  ..........  ..........  ..........  ..........
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
            Subtotal............     133,066     158,280     183,184     230,850     247,832     262,666     278,056
                                 -----------------------------------------------------------------------------------
          Trust fund payments to
           Federal funds:
            Other...............       1,113       1,183       1,263       1,328       2,701       3,202       3,269
              Proposed            ..........  ..........       2,764        -517        -512        -506        -507
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
            Subtotal............       1,113       1,183       4,027         811       2,189       2,696       2,762
                                 -----------------------------------------------------------------------------------
          Total interfunds           134,179     159,463     187,211     231,661     250,021     265,362     280,818
           distributed by agency
                                 -----------------------------------------------------------------------------------
        Undistributed by agency:
          Employer share,
           employee retirement
           (on-budget):
            Civil service             11,288      11,566      12,769      13,768      14,927      16,191      17,509
             retirement and
             disability
             insurance..........
            CSRDI from Postal          3,331       4,364       4,450       4,514       4,577       4,640       4,703
             Service............
            Hospital insurance         2,355       2,551       2,646       2,729       2,860       3,038       3,206
             (contribution as
             employer) \1\ .....
              Proposed            ..........  ..........         181  ..........  ..........  ..........  ..........
               Legislation (non-
               PAYGO)...........
            Postal employer              694         706         730         751         774         800         828
             contributions to
             FHI................
            Military retirement       13,720      14,794      13,299      13,572      14,046      14,446      14,871
             fund...............
            Other Federal                162         156         145         151         158         165         171
             employees
             retirement.........
                                 -----------------------------------------------------------------------------------
            Total employer            31,550      34,137      34,220      35,485      37,342      39,280      41,288
             share, employee
             retirement (on-
             budget)............
                                 -----------------------------------------------------------------------------------

    [[Page 283]]

            Interest received by      72,523      67,388      68,912      71,475      74,437      77,967      82,089
             on-budget trust
             funds..............
              Proposed            ..........  ..........           3          17          18          26          20
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
          Total interfund            104,073     101,525     103,135     106,977     111,797     117,273     123,397
           transactions
           undistributed by
           agency...............
                                 -----------------------------------------------------------------------------------
        Total interfund              238,252     260,988     290,346     338,638     361,818     382,635     404,215
         transactions...........
                                 -----------------------------------------------------------------------------------
      Total on-budget receipts..     290,711     296,928     330,643     381,469     407,753     431,815     456,902
                                 -----------------------------------------------------------------------------------
    Off-budget receipts:
      Trust intrafund
       transactions:
        Distributed by agency:
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Old-age, survivors,       13,277      14,298      15,124      16,424      17,927      20,508      21,459
             and disability
             insurance..........
        Undistributed by agency:
            Employer share,            9,602      10,654      11,199      11,771      12,510      13,474      14,410
             employee retirement
             (off-budget).......
              Proposed            ..........  ..........         759  ..........  ..........  ..........  ..........
               Legislation (non-
               PAYGO)...........
            Interest received by      83,544      86,286      91,918     100,124     110,171     122,419     136,640
             off-budget trust
             funds..............
                                 -----------------------------------------------------------------------------------
      Total off-budget receipts:     106,423     111,238     119,000     128,319     140,608     156,401     172,509
                                 -----------------------------------------------------------------------------------
    Total intragovernmental          397,134     408,166     449,643     509,788     548,361     588,216     629,411
     transactions...............
                                 ===================================================================================
      PROPRIETARY RECEIPTS FROM
             THE PUBLIC
    Distributed by agency:
      Interest:
        Interest on foreign              465         459         451         434         458         373         371
         loans and deferred
         foreign collections....
        Interest on deposits in          130         221         464         540         622         715         822
         tax and loan accounts..
        Other interest                10,934      11,538      11,839      12,311      13,094      14,010      14,834
         (domestic--civil) \2\ .
                                 -----------------------------------------------------------------------------------
        Total interest..........      11,529      12,218      12,754      13,285      14,174      15,098      16,027
                                 -----------------------------------------------------------------------------------
        Dividends and other            2,489       1,895       1,111       1,189       1,225       1,241       1,235
         earnings...............
      Royalties and rents.......       2,121       2,336       2,420       2,465       2,433       2,470       2,494
        Proposed Legislation      ..........  ..........           8           8           8           8           8
         (PAYGO)................
      Sale of products:
        Sale of timber and other         198         429         446         447         471         507         494
         natural land products..
        Sale of minerals and              31          35          38          42          46          46          48
         mineral products.......
        Sale of power and other          686         691         726         822         826         826         846
         utilities..............
          Proposed Legislation    ..........  ..........        -180        -186        -191        -197        -204
           (non-PAYGO)..........
        Other...................          92          75          86          82          72          89          85
                                 -----------------------------------------------------------------------------------
        Total sale of products..       1,007       1,230       1,116       1,207       1,224       1,271       1,269
                                 -----------------------------------------------------------------------------------
      Fees and other charges for
       services and special
       benefits:
        Medicare premiums and         28,433      32,169      36,839      49,297      55,128      58,926      62,969
         other charges (trust
         funds).................
          Proposed Legislation    ..........  ..........         -36         -50         -49         -51         -51
           (non-PAYGO)..........
        Nuclear waste disposal           726         740         749         754         757         767         767
         revenues...............
          Proposed Legislation    ..........  ..........        -749        -754        -757        -767        -767
           (PAYGO)..............
        Veterans life insurance          176         166         156         144         131         118         107
         (trust funds)..........
        Other \2\ ..............       4,120       4,263       4,880      11,325      14,109      14,893      15,712
          Proposed Legislation    ..........  ..........           7          82         105         104         109
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
        Total fees and other          33,455      37,338      41,846      60,798      69,424      73,990      78,846
         charges................
                                 -----------------------------------------------------------------------------------
      Sale of Government
       property:
        Sale of land and other           320         495       1,063         362         390         417         295
         real property \2\ .....
          Proposed Legislation    ..........  ..........          24          33          38          48          48
           (PAYGO)..............
        Military assistance           10,454      11,974      10,882      10,849      11,044      11,243      11,446
         program sales (trust
         funds).................
        Other...................         112         122         116          86          38          26          25
                                 -----------------------------------------------------------------------------------
        Total sale of Government      10,886      12,591      12,085      11,330      11,510      11,734      11,814
         property...............
                                 -----------------------------------------------------------------------------------
      Realization upon loans and
       investments:
        Negative subsidies and         9,842       8,399         937         891         882         866         853
         downward reestimates...
        Repayment of loans to             85          88          94         108          25          28          30
         foreign nations........

    [[Page 284]]

        Other...................          95          88          84          80          78          74          74
                                 -----------------------------------------------------------------------------------
        Total realization upon        10,022       8,575       1,115       1,079         985         968         957
         loans and investments..
                                 -----------------------------------------------------------------------------------
      Recoveries and refunds \2\       3,487       4,552       4,822       4,705       4,291       3,702       3,812
       .........................
        Proposed Legislation      ..........  ..........          15         -48        -134        -118        -122
         (PAYGO)................
      Miscellaneous receipt            1,631       2,241       2,277       2,316       2,338       2,367       2,394
       accounts \2\ ............
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts      76,627      82,976      79,569      98,334     107,478     112,731     118,734
       from the public
       distributed by agency....
                                 -----------------------------------------------------------------------------------
    Undistributed by agency:
      Rents, bonuses, and
       royalties:
        Outer Continental Shelf        1,292         620         527         564         557         588         545
         rents and bonuses......
        Outer Continental Shelf        3,737       3,967       4,228       5,043       5,056       5,128       5,148
         royalties..............
        Arctic National Wildlife
         Refuge:
          Proposed Legislation    ..........  ..........  ..........       2,402           2         202           2
           (PAYGO)..............
      Sale of major assets......  ..........  ..........  ..........         323  ..........  ..........  ..........
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts       5,029       4,587       4,755       8,332       5,615       5,918       5,695
       from the public
       undistributed by agency..
                                 -----------------------------------------------------------------------------------
    Total proprietary receipts        81,656      87,563      84,324     106,666     113,093     118,649     124,429
     from the public............
                                 ===================================================================================
       OFFSETTING GOVERNMENTAL
              RECEIPTS
    Distributed by agency:
      Defense cooperation.......  ..........          16          12          12          12          12          12
      Regulatory fees...........       4,231       4,469       4,144       3,572       3,565       3,623       3,678
        Proposed Legislation      ..........  ..........         -44         -44         -45         -47         -47
         (non-PAYGO)............
        Proposed Legislation      ..........  ..........         843       1,414       1,471       1,530       1,593
         (PAYGO)................
      Other.....................          49          52          53          52          55          56          57
    Undistributed by agency:
      Spectrum auction proceeds.  ..........  ..........         100       9,000      11,200       4,200          15
        Proposed Legislation      ..........  ..........  ..........          50      -1,350      -1,200       3,580
         (PAYGO)................
                                 -----------------------------------------------------------------------------------
      Total offsetting                 4,280       4,537       5,108      14,056      14,908       8,174       8,888
       governmental receipts....
                                 ===================================================================================
    Total offsetting receipts...     483,070     500,266     539,075     630,510     676,362     715,039     762,728
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes provision for covered Federal civilian employees and military personnel.
    \2\ Includes both Federal funds and trust funds.