[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.