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

    [[Page 301]]

                     18.  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
    Report of the President's Commission on Budget Concepts in 1967. The
    concept is discussed in Chapter 26: ``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 18-1 summarizes these transactions. For 2006, total offsetting
    collections and receipts from the public are estimated to be $275.8
    billion, and total user charges are estimated to be $207.3 billion.
      The following section discusses user charges and the Administration's
    user charge proposals. The subsequent section displays more information
    on offsetting collections and receipts. The offsetting collections and
    receipts by agency are displayed in Table 21-1, ``Outlays to the Public,
    Net and Gross,'' which appears in Chapter 21 of this volume.

      Table 18-1.  GROSS OUTLAYS, USER CHARGES, OTHER OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC, AND NET
                                                         OUTLAYS
                                                      (in billions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                     Estimate
                                                                                    Actual   -----------------------
                                                                                     2004        2005        2006
    ----------------------------------------------------------------------------------------------------------------
    Gross outlays...............................................................     2,541.8     2,732.5     2,843.4
      Offsetting collections and receipts from the public:
        User charges \1\........................................................       169.2       183.4       203.9
        Other...................................................................        80.4        69.7        71.8
                                                                                 -----------------------------------
          Subtotal, offsetting collections and receipts from the public.........       249.6       253.1       275.8
                                                                                 -----------------------------------
    Net outlays.................................................................     2,292.2     2,479.4     2,567.6
    ----------------------------------------------------------------------------------------------------------------
    \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 18-2, ``Total User Charge Collections.''

    Total user charges:
      Offsetting collections and receipts from the public....................        169.2        183.4        203.9
      Receipts...............................................................          2.7          3.2          3.4
                                                                              --------------------------------------
    Total, User charges......................................................        171.9        186.6        207.3

    [[Page 302]]

                                  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 18-2 shows that user charges were
    $171.9 billion in 2004, and are estimated to increase to $186.6 billion
    in 2005 and to $207.3 billion in 2006, growing to an estimated $243.1
    billion in 2010, including the user charges proposals that are shown in
    Table 18-3. This table shows that the Administration's user charge
    proposals, including extension of expiring charges, would increase user
    charges by an estimated $5.3 billion in 2006, growing to an estimated
    $11.2 billion in 2010.

      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, 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. (See the Congressional Record, January 3, 1991,
              p. H31, item 8.)
        be even narrower than the user fee concept described above,
              by excluding regulatory fees and focusing solely on business-
              type transactions.
        be broader than the one used in this chapter by including
              beneficiary- or liability-based excise taxes, such as gasoline
              taxes. \2\
    ---------------------------------------------------------------------------
      \2\ Beneficiary- and liability-based taxes are terms taken from the
    Congressional Budget Office, The Growth of Federal User Charges, August
    1993, and updated in October 1995. In addition to gasoline taxes,
    examples of beneficiary-based taxes include taxes on airline tickets,
    which finance air traffic control activities and airports. An example of
    a liability-based tax is the excise tax that formerly helped fund the
    hazardous substance superfund in the Environmental Protection Agency.
    This tax was paid by industry groups to finance environmental cleanup
    activities related to the industry activity but not necessarily caused
    by the payer of the fee.
    ---------------------------------------------------------------------------

      What is the purpose of user charges? The purpose of user charges is to
    improve the efficiency and equity of certain Government activities, and
    to reduce the burden on taxpayers to finance activities whose benefits
    accrue to a relatively limited number of people, or to impose a charge
    on activities that impose a cost on the public.
      User charges that are set to cover the costs of production of goods
    and services can provide efficiency in the allocation of resources
    within the economy. They allocate goods and services to those who value
    them the most, and they signal to the Government how much of the goods
    or services it should provide. Prices in private, competitive markets
    serve the same purposes.
      User charges for goods and services that do not have special social
    benefits improve equity, or fairness, by requiring that those who
    benefit from an activity are the same people who pay for it. The public
    often perceives user charges as fair because those who benefit from the
    good or service pay for it in whole or in part, and those who do not
    benefit do not pay.

      When should the Government charge a fee? Discussions of whether to
    finance spending with a tax or a fee often focus on whether the benefits
    of the activity 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

    [[Page 303]]

    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
    historic 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 18-1,
    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 $3.4 billion in 2006 are classified on the receipts
    side and are included in the totals described in Chapter 17. ``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 $203.9 billion in 2006, 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 conceptually would 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 $131.7 billion of user charges for 2006 are credited
    directly to expenditure accounts, and are generally available for
    expenditure when they are collected, without further action by the
    Congress. An estimated $72.2 billion of user charges for 2006 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 18-2 and 18-3
    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 26, ``The Budget System and Concepts.''

                             II.  Total User Charges

      As shown in Table 18-2, total user charge collections (including those
    proposed in this Budget) are estimated to be $207.3 billion in 2006,
    increasing to $243.1 billion in 2010. 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 2006.

    [[Page 304]]

                                       Table 18-2.  TOTAL USER CHARGE COLLECTIONS
                                                (in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimates
                                                 Actual  -----------------------------------------------------------
                                                  2004      2005      2006      2007      2008      2009      2010
    ----------------------------------------------------------------------------------------------------------------
                     Receipts

    Agricultural quarantine inspection fees...       258       328       363       368       372       377       381
    Abandoned mine reclamation fund...........       287       303       304       312       318       322       323
    Department of State immigration, passport,       556       846       886       889       892       895       898
     and consular fees........................
    Corps of Engineers harbor maintenance fees       870       896     1,002     1,098     1,173     1,221     1,269
    Other.....................................       748       811       816       845       645       650       656
                                               ---------------------------------------------------------------------
      Subtotal, receipts......................     2,719     3,184     3,371     3,512     3,400     3,465     3,527

     Offsetting Collections and Receipts from
                    the Public

    Discretionary

      Department of Agriculture: Food safety         289       227       231       226       226       225       222
       inspection and other fees..............
      Department of Commerce: Patent and           1,628     1,757     1,898     1,996     2,105     2,241     2,393
       trademark, fees for weather services,
       and other fees.........................
      Department of Defense: Commissary and        9,316     9,287     9,783     9,828     9,853     9,853     9,853
       other fees.............................
      Department of Energy: Federal Energy           887     1,155     1,314     1,287     1,287     1,283     1,265
       Regulation Commission, power marketing,
       and other fees.........................
      Department of Health and Human Services:     1,324       899       981       958       960       955       940
       Food and Drug Administration, Centers
       for Medicare and Medicaid Services, and
       other fees.............................
      Department of Homeland Security: Border      1,997     2,449     4,325     4,528     4,751     4,984     5,230
       and Transportation Security and other
       fees...................................
      Department of the Interior: Minerals           505       507       549       527       544       540       522
       Management Service and other fees......
      Department of Justice: Fees for                284       302       313       306       306       305       300
       bankruptcy oversight and other fees....
      Department of State: Passport and other        755       935     1,051     1,090     1,136     1,183     1,230
       fees...................................
      Department of the Treasury: Sale of          1,509     1,789     1,819     1,777     1,778     1,772     1,743
       commemorative coins and other fees.....
      Department of Veterans Affairs: Medical      1,815     2,033     2,248     2,344     2,446     2,553     2,663
       care and other fees....................
      Social Security Administration, State          118       128       135       132       132       132       130
       supplemental fees, supplemental
       security income........................
      Federal Communications Commission:             370       365       386       376       376       375       368
       Regulatory fees........................
      Federal Trade Commission: Regulatory            98       123       139       156       156       156       153
       fees...................................
      Nuclear Regulatory Commission:                 545       541       567       558       562       563       559
       Regulatory fees........................
      Securities and Exchange Commission:          1,393     1,806     2,141     1,115     1,147     1,332     1,520
       Regulatory fees........................
      All other agencies, discretionary user         389       565       677       664       670       668       657
       charges................................
                                               ---------------------------------------------------------------------
        Subtotal, discretionary user charges..    23,222    24,868    28,557    27,868    28,435    29,120    29,748

    Mandatory

      Department of Agriculture: Crop              1,539     1,959     1,971     2,008     2,066     2,131     2,181
       insurance and other fees...............
      Department of Defense: Commissary              877       908       589       518       404       354       338
       surcharge and other fees...............
      Department of Energy: Proceeds from the      4,556     4,985     4,719     4,669     5,025     5,784     6,141
       sale of energy, nuclear waste disposal
       fees, and other fees...................
      Department of Health and Human Services:
       Medicare
        Part B insurance premiums, and other      32,201    38,049    48,808    54,156    56,992    60,681    64,981
         fees.................................
      Department of Homeland Security:             5,176     6,052     6,496     6,677     6,864     7,048     7,234
       Customs, immigration, and other fees...
      Department of the Interior: Recreation       3,612     5,668     5,289     5,234     5,381     5,474     5,411
       and other fees.........................
      Department of Justice: Federal Prison          362       413       586       568       579       590       602
       Commissary fees and other fees.........
      Department of Labor: Insurance premiums      2,202     4,005     7,251     9,025     9,335     9,461     9,418
       to guaranty private pensions and other
       fees...................................
      Department of the Treasury: Bank               752       812       988     1,003     1,024     1,047     1,068
       regulation, and other fees.............
      Department of Veterans Affairs: Veterans     1,724     1,717     2,004     1,964     1,932     1,908     1,878
       life insurance and other fees..........
      Office of Personnel Management: Federal      9,738    10,661    11,439    12,258    13,162    14,060    15,122
       employee health and life insurance fees
      Federal Deposit Insurance Corporation:         763       666       908     1,071     1,470     2,059     3,059
       Deposit insurance premiums.............
      National Credit Union Administration:          379       448       474       590       673       761       859
       Credit union share insurance and other
       fees...................................
      Postal Service: Fees for postal services    68,001    67,538    67,628    67,753    68,747    68,941    69,435
      Tennessee Valley Authority: Proceeds         7,576     7,797     8,075     8,108     8,091     8,149     8,338
       from the sale of energy................
      Undistributed Offsetting Receipts: Sale      5,106     5,986     7,231    10,806    14,589    18,386    12,806
       of spectrum licenses, OCS receipts, and
       other charges..........................
      All other agencies, mandatory user           1,422       879       911       949       955       955       968
       charges................................
                                               ---------------------------------------------------------------------
      Subtotal, mandatory user charges........   145,986   158,543   175,367   187,357   197,289   207,789   209,839
                                               ---------------------------------------------------------------------
      Subtotal, user charges that are            169,208   183,411   203,924   215,225   225,724   236,909   239,587
       offsetting collections and receipts
       from the public........................
                                               =====================================================================
    TOTAL, User charges.......................   171,927   186,595   207,295   218,737   229,124   240,374   243,114
    ----------------------------------------------------------------------------------------------------------------

    [[Page 305]]

                           III.  User Charge Proposals

      As shown in Table 18-3, the Administration is proposing new or
    increased user charges, including proposed extensions of expiring
    charges, that would increase collections by an estimated $5.3 billion in
    2006, increasing to $11.2 billion in 2010.

    A.  Discretionary User Charge Proposals

    1.  Offsetting collections

    Department of Commerce

      Patent and Trademark Office (PTO). The Administration will propose
    legislation to permanently extend changes to PTO's patent and trademark
    fees that were enacted in the 2005 Consolidated Appropriations Act.
    These changes restructured patent fees and adjusted trademark fees for
    2005 and 2006 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 Homeland Security

      Transportation Security Administration: Aviation security fees.
    Aviation security fees are levied on both passengers and air carriers.
    The Budget proposes to increase aviation security passenger fees. In
    general, passenger security fees will rise by $3.00. On a typical one-
    way ticket, the passenger security fee will rise from $2.50 to $5.50.
    For passengers flying multiple legs on a one-way ticket, the fee will
    rise from $5.00 under current law to $8.00. This proposal, along with
    air carrier security fees, will result in fee levels that recover nearly
    all of the $4.5 billion cost of airport screening operations.

                                Table 18-3.  USER FEE AND OTHER USER CHARGE PROPOSALS \1\
                                     (estimated collections in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                2006     2007     2008     2009     2010   2006-2010
    ----------------------------------------------------------------------------------------------------------------

                          DISCRETIONARY

    1.  Offsetting collections

    Department of Commerce
      Patent and Trademark Office...........................  .......      168      145      115       81       509

    Department of Homeland Security
      Transportation Security Administration:
        Aviation security fees..............................    1,479    1,622    1,776    1,937    2,108     8,922

    Department of Housing and Urban Development
      Office of Federal Housing Enterprise Oversight:             -60      -59      -59      -58      -57      -293
       Government-sponsored enterprise (GSE) regulation.....

    2.  Offsetting receipts

    Nuclear Regulatory Commission
      Extend Nuclear Regulatory Commission fees.............      365      351      350      346      337     1,749
                                                             -------------------------------------------------------
        Subtotal, discretionary user charge proposals.......    1,784    2,082    2,212    2,340    2,469    10,887

                            MANDATORY

    1.  Offsetting collections

    Department of Housing and Urban Development
      Government-sponsored enterprise (GSE) regulation......        6        6        6        6        6        30

    Department of Labor
      Pension Benefit Guaranty Corporation..................    2,195    3,702    3,490    3,199    2,836    15,422

    Department of the Treasury
      Office of Housing Finance Supervision: Government-           96       94       94       95       95       474
       sponsored enterprise (GSE) regulation................

    Federal Deposit Insurance Corporation
      Merge the bank insurance fund and the savings           .......  .......  .......     -380     -856    -1,236
       association insurance fund...........................

    Federal Housing Finance Board
      Government-sponsored enterprise (GSE) regulation......      -36      -37      -38      -39      -40      -190

    2.  Offsetting receipts

                       User Fee Proposals

      Department of Agriculture
        Animal and Plant Health Inspection Service user            11       11       11       12       12        57
         fees*..............................................
        Food Safety and Inspection Service user fees*.......      139      142      145      148      151       725
        Grain Inspection, Packers and Stockyards                   25       26       26       27       27       131
         Administration user fees*..........................
        Agricultural Marketing Service standardization user         3        3        3        3        3        15
         fees*..............................................

      Department of Justice
        Bureau of Alcohol, Tobacco, Firearms and Explosives:
          Explosives regulation user fees*..................      120      120      120      120      120       600

      Department of Transportation
        St. Lawrence Seaway Development Corporation user            8       17       17       17       17        76
         fees*..............................................

    [[Page 306]]

      Department of the Treasury
        Alcohol and Tobacco Tax and Trade Bureau regulatory        29       29       29       29       29       145
         activity user fees*................................

      Department of Veterans Affairs
        Establish an annual enrollment fee for non-disabled,      248      248      248      248    1,240
         higher income veterans*............................
        Increased pharmaceutical copayments*................      176      178      180      181      183       898
          Medical services (illustrative discretionary          (424)    (426)    (428)    (429)    (431)   (2,138)
           spending authority--non-add).....................

      Environment Protection Agency
        Pre-manufacture notice user fees*...................        4        8        8        8        8        36
        Pesticide tolerance user fees* \2\..................       20       20       21       21       22       104
        Pesticide registration user fees*...................       26       27       27       28       28       136

      Federal Communications Commission
        Authorize spectrum license user fees................  .......       50      150      300      300       800
        Analog spectrum lease fees..........................  .......      500      500      480      450     1,930
                                                             -------------------------------------------------------
          Subtotal, User fee proposals......................      809    1,379    1,485    1,622    1,598     6,893

                         Other Proposals

      Department of Agriculture
        Forest Service: Administration of rights-of-way.....        5        5        5        5        5        25
        Forest Service: Facilities enhancement..............       42       42       42       65       65       256

      Department of Energy
        Power Marketing Administrations: Charge market rates       40      157      446    1,145    1,406     3,194

      Department of Homeland Security
        Immigration examination fees........................       31       31       31       31       31       155

      Department of the Interior
        Arctic National Wildlife Refuge, sale of leases:
          Collections for payments to Alaska................  .......    1,200        1      101        1     1,303
          Federal receipts..................................  .......    1,200        1      101        1     1,303

      Department of Labor
        Foreign labor certification fees....................       40       40       40       40       40       200

      Corps of Engineers--Civil Works
        Additional recreation fees..........................        9       17       17       17       17        77

      Federal Communications Commission
        Extending spectrum auction authority................  .......  .......   -1,083    2,156    3,239     4,312
                                                             -------------------------------------------------------
          Subtotal, other proposals.........................      167    2,692     -500    3,661    4,805    10,825
                                                             -------------------------------------------------------
        Subtotal, mandatory user charge proposals...........    3,237    7,836    4,537    8,164    8,444    32,218

                      GOVERNMENTAL RECEIPTS

    Department of the Interior
      Abandoned mine reclamation fees.......................      304      312      318      322      323     1,579
      Increase Indian Gaming Commission, activity fees......  .......        4        4        5        5        18
                                                             -------------------------------------------------------
        Subtotal, governmental receipts user charge               304      316      322      327      328     1,597
         proposals..........................................
                                                             -------------------------------------------------------
      Total, user charge proposals..........................    5,325   10,234    7,071   10,831   11,241    44,702
    ----------------------------------------------------------------------------------------------------------------
    \1\ A negative sign indicates a decrease in collections.
    \2\ Includes outlay reductions in 2009 and 2010.
    * The Administration will work with Congress to reclassify the enacted fees as discretionary beginning in 2007.
      Once reclassified, the Administration proposes to offset these fees against discretionary spending.
      Discretionary totals in those years will be reduced by these fees.

    Department of Housing and Urban Development

      Office of Federal Housing Enterprise Oversight: Government-sponsored
    enterprise (GSE) regulation. This proposal is discussed below in the
    Department of the Treasury entry for the Office of Housing Finance
    Supervision.

    2.  Offsetting receipts

    Nuclear Regulatory Commission

      Extend Nuclear Regulatory Commission (NRC) fees at their 2005 level
    for 2006 and later. The Budget is proposing to extend NRC fees. 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 a proposed
    $567 million in 2006 to $202 million, a loss of $365 million.

    [[Page 307]]

    B.  Mandatory User Charge Proposals

    1.  Offsetting collections

    Department of Housing and Urban Development

      Government-sponsored enterprise (GSE) regulation. This proposal is
    discussed below in the Department of the Treasury entry for the Office
    of Housing Finance Supervision.

    Department of Labor

      Pension Benefit Guaranty Corporation (PBGC). The PBGC receives much of
    its income for its single-employer plan through flat-rate and variable-
    rate premiums. The current flat-rate premiums are $19 per participant
    and have not been changed since 1991. The Administration's 2006 proposal
    would increase this amount to $30 per participant and future increases
    would be indexed to wage growth. Variable-rate premiums would also be
    reformed to reflect new funding targets. The PBGC's Board of Directors
    would periodically review the variable-rate premiums to cover the cost
    of expected claims and to improve the PBGC's financial position. In 2006
    these changes would result in an additional $2,195 million in premium
    income for the PBGC.

    Department of the Treasury

      Office of Housing Finance Supervision: Government-sponsored enterprise
    (GSE) regulation. The Administration will again propose 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. The Budget places this new regulator in the Department of the
    Treasury. For additional information, see Chapter 7, ``Credit and
    Insurance'', in this volume, and the Department of the Treasury chapter
    in the Appendix volume.

    Federal Deposit Insurance Corporation

      Merge the bank insurance fund and the saving association insurance
    fund. The Federal Deposit Insurance Corporation (FDIC) insures deposits
    in banks and savings associations (thrifts) through the Bank Insurance
    Fund (BIF) and the Savings Association Insurance 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. Under baseline assumptions,
    BIF is expected to need to dramatically increase the insurance premiums
    it charges banks in 2009. Because the merged fund would be financially
    stronger, the combined fund is not expected to need to increase premiums
    until 2012.

    Federal Housing Finance Board

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

    2.  Offsetting receipts

                               User Fee Proposals

      For the proposals noted with an asterisk (*) in the text below and in
    Table 18-3, the Administration will work with Congress to reclassify the
    enacted fees as discretionary beginning in 2007. Once reclassified, the
    Administration proposes to offset these fees against discretionary
    spending. Discretionary totals in those years will be reduced by these
    fees.

    Department of Agriculture

      Animal and Plant Health Inspection Service user fees.* The
    Administration proposes to establish user fees for animal welfare
    inspections, such as for animal research centers, humane societies, and
    kennels.
      Food Safety and Inspection Service user fees.* 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.
      Grain Inspection, Packers, and Stockyards Administration (GIPSA) user
    fees.* The Administration 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.
      Agriculture Marketing Service (AMS) standardization user fees.* The
    Administration proposes to recover the cost of developing, reviewing and
    modifying quality grade standards through user fees. This proposal would
    enable the AMS to charge fees to customers of the agency's inspection
    and grading programs for the cost associated with the development,
    review, and maintenance of official grade standards for which the agency
    has these established services.

    Department of Justice

      Bureau of Alcohol, Tobacco, Firearms and Explosives: Explosives
    regulation user fees.* The Budget includes a proposal to authorize the
    Department of Justice to assess an explosives user fee on all explosives
    manufactured in or imported into the United States. For 2006, a user fee
    of $0.02/ pound would generate $120 million in additional collections.
    This new user fee, when combined with the Department's current
    explosives licensing fees, would provide full offset for the Bureau's
    regulation of the explosives industry. The fee would be set

    [[Page 308]]

    in regulation, and could be increased as deemed necessary by the
    Attorney General.

    Department of Transportation

      St. Lawrence Seaway Development Corporation (SLSDC) user fees.* This
    SLSDC is a wholly owned government corporation and an operating
    administration of the Department of Transportation responsible for the
    operations and maintenance of the U.S. portion of the St. Lawrence
    Seaway between Montreal and Lake Erie. The President's Budget proposes
    permanent authority for the U.S. SLSDC to collect mandatory receipts
    from users of the seaway. The proposal also provides some funding in
    2006 for SLSDC if revenues are not sufficient to cover operational costs
    in the first year of implementation. The President's proposal would make
    SLSDC consistent with the St. Lawrence Seaway Management Corporation,
    its Canadian counterpart, which currently supports its operations
    through fees.

    Department of the Treasury

      Alcohol and Tobacco Tax and Trade Bureau regulatory activity user
    fees.* The Budget proposes to establish user fees to cover the costs of
    the Tax and Trade Bureau's regulatory functions under its ``Protect the
    Public'' line-of-business. The new user fees include filing fees for
    Certificate of Label Approvals, proposed formulas, and permit
    applications, among others.

    Department of Veterans Affairs

      Establish an annual enrollment fee for PL 7 and PL 8 veterans (non-
    disabled, higher income).* The Administration proposes to establish an
    annual enrollment fee of $250 for Priority Level 7 and 8 veterans. The
    increased receipts will allow the Department of Veterans Affairs to
    refocus the medical care system on caring for its core population--
    veterans with special needs, service-connected disabilities, and lower
    incomes.
      Increased pharmaceutical copayments for PL 7 and PL 8 veterans (non-
    disabled, higher income).* The Administration proposes to increase
    pharmaceutical copayments from $7 to $15 for Priority Level 7 and 8
    veterans. The increased receipts will more closely align the Department
    of Veterans Affairs with the private sector and the Department of
    Defense while allowing 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

      Pre-manufacture notice user fees.* EPA presently collects fees from
    chemical manufacturers seeking to bring new chemicals into commerce.
    These fees are authorized by the Toxic Substances Control Act and are
    subject to an outdated statutory cap. The Administration proposes to
    eliminate the cap so that EPA can recover a greater portion of the cost
    of the program.
      Pesticide tolerance user fees.* The Federal Food, Drug, and Cosmetic
    Act (FFDCA) requires the Environmental Protection Agency (EPA) to
    collect fees for establishment and reassessment of pesticide tolerances.
    Tolerances are maximum limits set by EPA on the amount of pesticides
    that may remain in or on foods after they have been treated. Collection
    of these tolerance fees has been blocked in appropriations acts since
    2001. Most recently, provisions in the 2004 Consolidated Appropriations
    Act suspended this authority through 2008. The Administration proposes
    to eliminate the prohibition on the collection of the tolerance fee
    beginning in 2006.
      Pesticide registration user fees.* EPA has the authority and an
    existing rule to collect fees from entities seeking to register their
    pesticides for use in the United States. However, these fees have been
    blocked through appropriations acts since 1989. Most recently,
    provisions in the 2004 Consolidated Appropriations Act suspended this
    authority through 2010. The Administration proposes to eliminate the
    prohibition on collecting this pesticide registration fee beginning in
    2006.

    Federal Communications Commission

      Authorize spectrum license user fees. To continue to promote efficient
    spectrum use, the Administration proposes new authority for the FCC to
    set user fees on unauctioned spectrum licenses, based on public-interest
    and spectrum-management principles. Fee collections are proposed to
    begin in 2007 and total $3.1 billion through 2015.
      Analog spectrum lease fee. To encourage television broadcasters to
    vacate the analog spectrum in a timely fashion as required by law, the
    Administration proposes authorizing the FCC to establish an annual lease
    fee totaling $500 million for the use of analog spectrum by commercial
    broadcasters beginning in 2007. Upon return of their analog spectrum
    license to the FCC, individual broadcasters would be exempt from the
    fee, and fee collections would decline.

                                 Other Proposals

    Department of Agriculture

      Forest Service: Administration of rights-of-way. This increase in
    receipts reflects a Budget proposal that would permit the Forest Service
    to collect fees based upon a more accurate reflection of costs incurred
    in the administration and monitoring of special use permits on National
    Forest Systems lands.
      Forest Service: Facilities enhancement. The Administration proposes
    reforms to enhance Forest Service efforts to improve its accountability
    and focus on measurable results in the management of national forests.
    These reforms will allow for the sale of unneeded facilities, with
    receipts being devoted to maintenance or replacement of needed existing
    facilities.

    Department of Energy

      Power Marketing Administrations: Charge market rates. The Budget
    proposes to very gradually bring PMA electricity rates closer to average
    market rates throughout the country. According to the Government

    [[Page 309]]

    Accountability Office, taxpayers across the Nation have borne some of
    the PMAs' costs and, therefore, helped subsidize the cost of PMA power
    purchased by electricity wholesalers. Reducing subsidies to electricity
    wholesalers is consistent with the Administration's policies, and this
    proposal will create a more level playing field for the Nation's
    electricity suppliers and encourage appropriate energy conservation.

    Department of Homeland Security

      Immigration examination fees. The Administration proposes to adjust
    fees for Temporary Protected Status applications to fully capture
    processing costs and allow the Department to charge premium service fees
    for certain adjudications.

    Department of the Interior

      Arctic National Wildlife Refuge: Collections for payments to Alaska
    and Federal receipts. 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. The Budget assumes that the first oil and gas lease sale would
    be held in 2007 and would result in $2.4 billion in new revenues. All
    oil and gas revenues from the 1002 Area would be shared fifty percent
    with the State of Alaska, including the estimated $2 million in annual
    rental payments. (The Federal share of revenues would be deposited in
    the Treasury.)

    Department of Labor

      Foreign labor certification fees. The Administration will propose
    legislation to establish a new fee for applications under the permanent
    labor certification program. Fee proceeds would offset the costs of
    administering the program and partially support backlog reduction in
    regional offices. Upon enactment of the fee, funding for these
    activities now included in the Program Administration account will be
    reviewed and adjusted.

    Corps of Engineers--Civil Works

      Additional recreation fees. The Corps of Engineers manages 4,300
    recreation areas at 465 Corps projects (mostly lakes) in 43 states, used
    annually by millions of visitors. The Administration proposes a Corps
    recreation modernization initiative, based on a promising model now used
    by the National Park Service, the Forest Service, and other major
    Federal recreation providers. The agency would use a portion of the fees
    it collects (such as entrance fees) to upgrade the site where the fees
    are collected. The Corps would also seek legislative authority to
    operate a limited number of public/private partnerships, such as lake
    improvement districts, which would draw on local property owners and
    community leaders to help manage and finance the Corps recreation
    program. The Administration will use user fees as a percent of total
    program spending as a performance measure for this program since that is
    an indicator of community support for the program.

    Federal Communications Commission (FCC)

      Extending spectrum auction authority. The Administration proposes to
    extend indefinitely the FCC's authority to auction spectrum licenses,
    which expires in 2007. Reductions in estimated receipts in 2008
    resulting from possible shifting of spectrum auctions into later years
    are more than offset by higher estimated receipts for those auctions in
    2009 and 2010 as well as new future auctions. Estimated additional
    receipts from this proposal are $5.1 billion over the next ten years.

    C.  User Charge Proposals that are Governmental Receipts

    Department of the Interior

      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 June 30, 2005. 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 to clean up and reclaim in 25 years the
    most significant abandoned mine land problems. 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.

                    OTHER OFFSETTING COLLECTIONS AND RECEIPTS

      Table 18-4 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 $275.8 billion in 2006. Of these, an
    estimated $162.0 billion are offsetting collections credited to
    expenditure accounts and an esti

    [[Page 310]]

    mated $113.8 billion are deposited in offsetting receipt accounts.
      Information on the user charges presented in Table 18-4 is available
    in Tables 18-2 and 18-3 and the discussion that accompanies those
    tables. Major offsetting collections deposited in expenditure accounts
    that are not user charges include collections by the Commodity Credit
    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 18-5 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 $651.4 billion
    in 2006: $537.6 billion are intragovernmental transactions; and $113.8
    billion are from the public, shown in the table as proprietary receipts
    from the public ($108.0 billion) and offsetting governmental receipts
    ($5.8 billion).
      As noted above, offsetting collections and receipts by agency are also
    displayed in Table 21-1, ``Outlays to the Public, Net and Gross,'' which
    appears in Chapter 21 of this volume.

        Table 18-4.  OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
                            (in millions of dollars)
    ------------------------------------------------------------------------
                                                           Estimate
                                        Actual   ---------------------------
                                         2004         2005          2006
    ------------------------------------------------------------------------
    Offsetting collections credited
     to expenditure accounts:
      User charges:
        Postal service stamps and         68,001        67,538        67,628
         other postal fees..........
        Defense Commissary Agency...       5,281         5,262         5,256
        Employee contributions for         7,932         8,776         9,442
         employees and retired
         employees health benefits
         funds......................
        Sale of energy:
          Tennessee Valley Authority       7,576         7,797         8,075
          Bonneville Power                 3,279         3,647         3,647
           Administration...........
        All other user charges......      27,539        30,828        37,665
                                     ---------------------------------------
          Subtotal, user charges....     119,608       123,848       131,713

      Other collections credited to
       expenditure accounts:
        Commodity Credit Corporation       8,699        14,383        13,736
         fund.......................
        Supplemental security income       4,168         4,318         4,520
         (collections from the
         States)....................
        Other collections...........      15,800        12,090        12,006
                                     ---------------------------------------
          Subtotal, other                 28,667        30,791        30,262
           collections..............
                                     ---------------------------------------
        Subtotal, collections            148,275       154,639       161,975
         credited to expenditure
         accounts...................

    Offsetting receipts:
      User charges:
        Medicare premiums...........      32,140        38,010        48,765
        Outer Continental Shelf            5,106         5,886         7,131
         rents, bonuses, and
         royalties..................
        All other user charges......      12,354        15,667        16,315
                                     ---------------------------------------
          Subtotal, user charges          49,600        59,563        72,211
           deposited in receipt
           accounts.................

      Other collections deposited in
       receipt accounts:
        Military assistance program       11,734        10,882        11,114
         sales......................
        Interest income.............      14,160        14,529        14,248
        All other collections             25,832        13,454        16,215
         deposited in receipt
         accounts...................
                                     ---------------------------------------
          Subtotal, other                 51,726        38,865        41,577
           collections deposited in
           receipt accounts.........
                                     ---------------------------------------
        Subtotal, collections            101,326        98,428       113,788
         deposited in receipt
         accounts...................
                                     ---------------------------------------
      Total, offsetting collections      249,601       253,067       275,763
       and receipts from the public.

      Total, offsetting collections      181,509       185,457       208,062
       and receipts excluding off-
       budget.......................

    ADDENDUM:
      User charges that are              169,208       183,411       203,924
       offsetting collections and
       receipts \1\.................
      Other offsetting collections        80,393        69,656        71,839
       and receipts from the public.
                                     ---------------------------------------
        Total, offsetting                249,601       253,067       275,763
         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 18-1 or Table 18-2.

    [[Page 311]]

                                         Table 18-5. OFFSETTING RECEIPTS BY TYPE
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                             Estimate
               Source                2004    -----------------------------------------------------------------------
                                    Actual       2005        2006        2007        2008        2009        2010
    ----------------------------------------------------------------------------------------------------------------
          INTRAGOVERNMENTAL
            TRANSACTIONS
    On-budget receipts:
      Federal intrafund
       transactions:
        Distributed by agency:
          Interest from the            1,156         515         429         668         574         436         467
           Federal Financing
           Bank.................
            Proposed Legislation  ..........  ..........  ..........          79         105         103         101
             (non-PAYGO)........
          Interest on Government       1,000         922       1,165       1,170       1,120       1,086       1,067
           capital in
           enterprises..........
          Interest received by    ..........         217         217         215         213         213         215
           retirement and health
           benefits funds.......
          General fund payments
           to retirement and
          health benefits funds:
            DoD retiree health        16,961      17,273      18,971      20,871      22,954      25,223      27,690
             care fund..........
            Miscellaneous         ..........         277         277         277         309         369         466
             Federal retirement
             funds..............
              Proposed            ..........  ..........       1,951       2,227       2,565       2,796       3,148
               Legislation (non-
               PAYGO)...........
          Other.................       2,303       2,308       2,470       2,558       2,140       2,203       2,233
              Proposed            ..........  ..........          19          97         282         495         733
               Legislation (non-
               PAYGO)...........
        Undistributed by agency:
          Employing agency
           contributions:
            DoD retiree health         8,140      10,753      10,996      11,592      12,287      13,057      13,880
             care fund..........
              Proposed            ..........  ..........       2,951       3,157       3,378       3,615       3,868
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
          Total Federal               29,560      32,265      39,446      42,911      45,927      49,596      53,868
           intrafunds...........
                                 -----------------------------------------------------------------------------------
        Trust intrafund
         transactions:
          Distributed by agency:
          Payments to railroad         5,993       4,935       6,225       6,545       6,640       6,735       6,982
           retirement...........
                                 -----------------------------------------------------------------------------------
          Total trust intrafunds       5,993       4,935       6,225       6,545       6,640       6,735       6,982
                                 -----------------------------------------------------------------------------------
        Total intrafund               35,553      37,200      45,671      49,456      52,567      56,331      60,850
         transactions...........
                                 -----------------------------------------------------------------------------------
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Contributions to
             insurance programs:
              Military                18,189      21,358      23,241      24,112      25,015      25,955      26,927
               retirement fund..
              Supplementary           94,736     115,230     182,748     194,542     204,071     216,112     229,885
               medical insurance
                Proposed          ..........  ..........         108          36  ..........  ..........  ..........
                 Legislation
                 (non-PAYGO)....
              Hospital insurance       9,259       9,332      10,492      11,574      13,453      14,800      15,543
              Railroad social            121         118         121         132         148         153         158
               security
               equivalent fund..
              Rail industry              314         323         318         330         343         357         371
               pension fund.....
              Civilian                26,177      26,431      26,835      27,426      27,922      28,520      29,019
               supplementary
               retirement
               contributions....
              Unemployment             1,543         802         738         715         715         714         718
               insurance........
              Other                      402         550         572         573         583         585         579
               contributions....
                                 -----------------------------------------------------------------------------------
              Subtotal..........     150,741     174,144     245,173     259,440     272,250     287,196     303,200
                                 -----------------------------------------------------------------------------------
            Miscellaneous              2,123       1,817       1,730       1,692       1,683       1,675       1,638
             payments...........
              Proposed            ..........  ..........       3,808  ..........  ..........  ..........  ..........
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
            Subtotal............     152,864     175,961     250,711     261,132     273,933     288,871     304,838
                                 -----------------------------------------------------------------------------------
          Trust fund payments to
           Federal funds:
            Existing law........       1,283       3,307       1,664       3,021       3,513       3,568       3,632
              Proposed            ..........  ..........       3,343        -459        -452        -448        -449
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
            Subtotal............       1,283       3,307       5,007       2,562       3,061       3,120       3,183
                                 -----------------------------------------------------------------------------------
          Total interfunds           154,147     179,268     255,718     263,694     276,994     291,991     308,021
           distributed by agency
                                 -----------------------------------------------------------------------------------
        Undistributed by agency:
          Employer share,
           employee retirement
           (on-budget):
            Civil service             12,083      12,765      13,690      14,706      15,860      16,918      18,060
             retirement and
             disability
             insurance..........
            CSRDI from Postal          4,199       4,414       4,507       4,555       4,605       4,659       4,712
             Service............
            Hospital insurance         2,713       2,627       2,659       2,696       2,781       2,871       2,968
             (contribution as
             employer) \1\ .....
            Postal employer              710         673         674         701         729         758         788
             contributions to
             FHI................
            Military retirement       14,071      16,636      15,466      15,776      16,317      16,822      17,405
             fund...............
            Other Federal                184         211         242         278         320         368         423
             employees
             retirement.........
                                 -----------------------------------------------------------------------------------

    [[Page 312]]

            Total employer            33,960      37,326      37,238      38,712      40,612      42,396      44,356
             share, employee
             retirement (on-
             budget)............
                                 -----------------------------------------------------------------------------------
            Interest received by      67,761      71,457      73,378      76,405      79,673      83,320      86,634
             on-budget trust
             funds..............
              Proposed            ..........  ..........          -4          -1          -7          -9          -9
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
          Total interfund            101,721     108,783     110,612     115,116     120,278     125,707     130,981
           transactions
           undistributed by
           agency...............
                                 -----------------------------------------------------------------------------------
        Total interfund              255,868     288,051     366,330     378,810     397,272     417,698     439,002
         transactions...........
                                 -----------------------------------------------------------------------------------
      Total on-budget receipts..     291,421     325,251     412,001     428,266     449,839     474,029     499,852
                                 -----------------------------------------------------------------------------------
    Off-budget receipts:
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Old-age, survivors,       14,342      16,388      16,066      17,716      20,512      21,422      23,156
             and disability
             insurance..........
        Undistributed by agency:
            Employer share,           11,331      10,911      11,357      11,802      12,475      13,190      13,907
             employee retirement
             (off-budget).......
            Interest received by      86,228      91,995      98,144     106,672     117,008     128,724     141,373
             off-budget trust
             funds..............
                                 -----------------------------------------------------------------------------------
      Total off-budget receipts:     111,901     119,294     125,567     136,190     149,995     163,336     178,436
                                 -----------------------------------------------------------------------------------
    Total intragovernmental          403,322     444,545     537,568     564,456     599,834     637,365     678,288
     transactions...............
                                 ===================================================================================
      PROPRIETARY RECEIPTS FROM
             THE PUBLIC
    Distributed by agency:
      Interest:
        Interest on foreign              411         432         415         439         354         352         350
         loans and deferred
         foreign collections....
        Interest on deposits in          136         338         471         529         564         578         593
         tax and loan accounts..
        Other interest                10,624      11,922      12,112      12,765      13,526      14,153      14,730
         (domestic--civil) \2\ .
                                 -----------------------------------------------------------------------------------
        Total interest..........      11,171      12,692      12,998      13,733      14,444      15,083      15,673
                                 -----------------------------------------------------------------------------------
        Dividends and other            2,989       1,837       1,250       1,296       1,313       1,319       1,308
         earnings...............
      Royalties and rents.......       2,449       3,815       3,732       3,671       3,752       3,855       3,781
      Sale of products:
        Sale of timber and other         211         244         258         280         332         318         323
         natural land products..
        Sale of minerals and              35          59          65          67          65          66          67
         mineral products.......
        Sale of power and other          617         721         409         411         413         409         394
         utilities..............
          Proposed Legislation    ..........  ..........          40         157         446       1,145       1,406
           (PAYGO)..............
        Other...................          79          99          97          86         103         100          89
                                 -----------------------------------------------------------------------------------
        Total sale of products..         942       1,123         869       1,001       1,359       2,038       2,279
                                 -----------------------------------------------------------------------------------
      Fees and other charges for
       services and special
       benefits:
        Medicare premiums and         32,140      38,010      48,730      54,101      56,949      60,637      64,937
         other charges (trust
         funds).................
          Proposed Legislation    ..........  ..........          35          12  ..........  ..........  ..........
           related to Medicaid
           proposal (PAYGO).....
        Nuclear waste disposal           776         749         754         757         767         767         769
         revenues...............
        Veterans life insurance          204         176         163         146         132         120         106
         (trust funds)..........
        Veterans pharmaceutical   ..........  ..........         176         178         180         181         183
         copayments: Proposed
         Legislation (PAYGO)....
        Other \2\ ..............       3,780       3,824      10,785      13,765      14,773      15,867      17,049
          Proposed Legislation    ..........  ..........       1,265       1,291       1,295       1,301       1,305
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
        Total fees and other          36,900      42,759      61,908      70,250      74,096      78,873      84,349
         charges................
                                 -----------------------------------------------------------------------------------
      Sale of Government
       property:
        Sale of land and other           621       1,321         982         985         987         967         970
         real property \2\ .....
          Proposed Legislation    ..........  ..........        -576        -576        -576        -553        -553
           (PAYGO)..............
        Military assistance           11,734      10,882      11,114      11,044      11,243      11,446      11,651
         program sales (trust
         funds).................
        Other...................          81         166          89          64          16          16          16
                                 -----------------------------------------------------------------------------------
        Total sale of Government      12,436      12,369      11,609      11,517      11,670      11,876      12,084
         property...............
                                 -----------------------------------------------------------------------------------
      Realization upon loans and
       investments:
        Negative subsidies and         8,159       5,434       1,071       1,001         990         970         845
         downward reestimates...
        Repayment of loans to             88          94         108          25          28          30          33
         foreign nations........
        Other...................       9,547         281          80          78          75          88          88
                                 -----------------------------------------------------------------------------------

    [[Page 313]]

        Total realization upon        17,794       5,809       1,259       1,104       1,093       1,088         966
         loans and investments..
                                 -----------------------------------------------------------------------------------
      Recoveries and refunds \2\       4,384       4,548       4,729       4,893       5,112       6,077       5,209
       .........................
        Proposed Legislation      ..........  ..........         294         328         356         386         393
         (PAYGO)................
      Miscellaneous receipt            2,650       2,168       2,209       2,226       2,245       2,263       2,290
       accounts \2\ ............
        Proposed Legislation      ..........  ..........          33          33          31          31          29
         (PAYGO)................
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts      91,715      87,120     100,890     110,052     115,471     122,889     128,361
       from the public
       distributed by agency....
                                 -----------------------------------------------------------------------------------
    Undistributed by agency:
      Rents, bonuses, and
       royalties:
        Outer Continental Shelf          644         646         677         669         683         662         594
         rents and bonuses......
        Outer Continental Shelf        4,462       5,240       6,454       6,074       6,085       6,438       6,727
         royalties..............
        Arctic National Wildlife
         Refuge:
          Proposed Legislation    ..........  ..........  ..........       2,402           2         202           2
           (PAYGO)..............
      Sale of major assets......  ..........  ..........  ..........         323  ..........  ..........  ..........
      Other undistributed         ..........  ..........  ..........       1,500       5,000       4,300  ..........
       offsetting receipts......
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts       5,106       5,886       7,131      10,968      11,770      11,602       7,323
       from the public
       undistributed by agency..
                                 -----------------------------------------------------------------------------------
    Total proprietary receipts        96,821      93,006     108,021     121,020     127,241     134,491     135,684
     from the public............
                                 ===================================================================================
       OFFSETTING GOVERNMENTAL
              RECEIPTS
    Distributed by agency:
      Defense cooperation.......  ..........          17          12          13          14          15          16
      Regulatory fees...........       4,481       5,183       5,521       5,515       5,558       5,596       5,630
        Proposed Legislation      ..........  ..........         -60         -59         -59         -58         -57
         (non-PAYGO)............
        Proposed Legislation      ..........  ..........          71          71          71          71          71
         (PAYGO)................
      Other.....................          24         122         123         123         123         123         124
    Undistributed by agency:
      Spectrum auction proceeds.  ..........         100         100         788       8,252       8,148       1,494
        Proposed Legislation      ..........  ..........  ..........         550        -433       2,936       3,989
         (PAYGO)................
                                 -----------------------------------------------------------------------------------
      Total offsetting                 4,505       5,422       5,767       7,001      13,526      16,831      11,267
       governmental receipts....
                                 ===================================================================================
    Total offsetting receipts...     504,648     542,973     651,356     692,477     740,601     788,687     825,239
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes provision for covered Federal civilian employees and military personnel.
    \2\ Includes both Federal funds and trust funds.