[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.