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

    [[Page 271]]

                     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 2007, total offsetting
    collections and receipts from the public are estimated to be $312.9
    billion, and total user charges are estimated to be $243.2 billion.
      The following section discusses user charges and the Administration's
    user charge proposals. The subsequent section displays more information
    on offsetting collections and receipts. The offsetting collections and
    receipts by agency are displayed in Table 21-1, which appears in Chapter
    21, ``Outlays to the Public, Gross and Net,'' 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   -----------------------
                                                                                     2005        2006        2007
    ----------------------------------------------------------------------------------------------------------------
    Gross outlays...............................................................     2,728.8     2,993.1     3,083.0

    Offsetting collections and receipts from the public:
      User charges \1\..........................................................       181.8       205.6       239.8
      Other.....................................................................        74.8        78.8        73.0
                                                                                 -----------------------------------
        Subtotal, offsetting collections and receipts from the public...........       256.6       284.4       312.9

    Net outlays.................................................................     2,472.2     2,708.7     2,770.1
    ----------------------------------------------------------------------------------------------------------------
     \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....................        181.8        205.6        239.8
      Receipts...............................................................          3.4          3.5          3.4
                                                                              --------------------------------------
        Total, User charges..................................................        185.2        209.1        243.2

    [[Page 272]]

                                  USER CHARGES

                         I.  Introduction and Background

      The Federal Government may charge those who benefit directly from a
    particular activity or those subject to regulation. Based on the
    definition used in this chapter, Table 18-2 shows that user charges were
    $185.2 billion in 2005, and are estimated to increase to $209.1 billion
    in 2006 and to $243.2 billion in 2007, growing to an estimated $258.5
    billion in 2011, 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 $3.5 billion in 2007, growing to an estimated
    $9.7 billion in 2011.
      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 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

    [[Page 273]]

    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 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 2007 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 $239.8 billion in 2007, 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 $136.5 billion of user charges for 2007 are credited
    directly to expenditure accounts, and are generally available for
    expenditure when they are collected, without further action by the
    Congress. An estimated $103.3 billion of user charges for 2007 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 $243.2 billion in 2007,
    increasing to $258.5 billion in 2011. 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 2007.

    [[Page 274]]

                                       Table 18-2.  TOTAL USER CHARGE COLLECTIONS
                                                (in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimates
                                                 Actual  -----------------------------------------------------------
                                                  2005      2006      2007      2008      2009      2010      2011
    ----------------------------------------------------------------------------------------------------------------
                     Receipts

    Judicial Branch: Filing fees, U. S. courts       275       308       306       333       332       340       343
    Department of Agriculture: Agricultural          338       363       368       371       376       380       388
     quarantine inspection fees...............
    Department of the Interior: Abandoned mine       293       300  ........  ........  ........  ........  ........
     reclamation fund.........................
    Department of State: Immigration,                911       835       922       924       923       922       921
     passport, and consular fees..............
    Corps of Engineers: Harbor maintenance         1,048     1,133     1,228     1,329     1,451     1,590     1,743
     fees.....................................
    Other charges.............................       546       536       547       341       345       348       351
                                               ---------------------------------------------------------------------
      Subtotal, receipts......................     3,411     3,475     3,371     3,298     3,427     3,580     3,746

     Offsetting Collections and Receipts from
                    the Public

    Discretionary
      Department of Agriculture: Food safety         299       324       364       352       351       346       350
       inspection and other charges...........
      Department of Commerce: Patent and           1,596     1,810     1,970     1,892     2,059     2,245     2,434
       trademark, fees for weather services,
       and other charges......................
      Department of Defense: Commissary and        8,934     9,135     9,901     9,903     9,903     9,903     9,903
       other charges..........................
      Department of Energy: Federal Energy           785     1,077     1,256     1,213     1,206     1,190     1,205
       Regulation Commission, power marketing,
       and other charges......................
      Department of Health and Human Services:
       Food and Drug Administration,
        Centers for Medicare and Medicaid          1,377       977     1,175     1,039     1,033     1,018     1,031
         Services, and other charges..........
      Department of Homeland Security: Border      2,044     2,384     4,115     4,319     4,535     4,759     4,996
       and Transportation Security and other
       charges................................
      Department of the Interior: Minerals           533       550       842       630       544       527       552
       Management Service and other charges...
      Department of Justice: charges for             309       339       486       470       467       461       466
       bankruptcy oversight and other charges.
      Department of State: Passport and other      1,605     1,129     1,390     1,437     1,496     1,554     1,623
       charges................................
      Department of Transportation: Pipeline         115       111       114       110       110       109       110
       safety and other charges...............
      Department of the Treasury: Sale of          1,550     2,428     2,521     2,436     2,423     2,390     2,418
       commemorative coins and other charges..
      Department of Veterans Affairs: Medical      1,938     2,131     2,916     3,062     3,208     3,350     3,592
       care and other charges.................
      General Services Administration:                49       603       594       582       580       573       580
       Acquisition services fund and other
       charges................................
      Social Security Administration, State          123       119       119       115       114       113       114
       supplemental fees, supplemental
       security income........................
      Federal Communications Commission:             378       374       387       374       373       369       373
       Regulatory fees........................
      Federal Trade Commission: Regulatory           118       139       138       151       156       159       163
       fees...................................
      National Credit Union Administration:          152       172       197       215       220       224       229
       Collections............................
      Nuclear Regulatory Commission:                 534       624       627       609       608       602       611
       Regulatory fees........................
      Securities and Exchange Commission:          1,665     2,144     1,116     1,140     1,321     1,504     1,724
       Regulatory fees........................
      All other agencies, discretionary user      -2,845       320       369       364       357       349       353
       charges................................
                                               ---------------------------------------------------------------------
        Subtotal, discretionary user charges..    21,259    26,890    30,597    30,413    31,064    31,745    32,827

    Mandatory
      Department of Agriculture: Crop              1,880     1,559     1,847     1,841     1,802     1,863     1,908
       insurance and other charges............
      Department of Defense: Commissary            1,090       657       545       598       645       661       687
       surcharge and other charges............
      Department of Energy: Proceeds from the      4,709     4,406     4,781     4,709     4,882     4,822     4,888
       sale of energy, nuclear waste disposal
       and other charges......................
      Department of Health and Human Services:    39,854    48,186    55,546    59,765    62,853    65,415    69,071
       Medicare Part B insurance premiums and
       other charges..........................
      Department of Homeland Security:             6,196     6,790     7,140     7,480     7,841     8,203     8,557
       Customs, immigration, and other charges
      Department of the Interior: Recreation       5,584     6,629     6,329     6,265     5,970     5,786     5,837
       and other charges......................
      Department of Justice: Federal Prison          400       472       487       500       514       528       543
       Commissary fees and other charges......
      Department of Labor: Insurance premiums      2,519     4,039     5,416    10,032    10,577    11,034    11,522
       to guarantee private pensions and other
       collections............................
      Department of the Treasury: Bank               875       919     1,107     1,136     1,161     1,189     1,216
       regulation, and other charges..........
      Department of Veterans Affairs: Veterans     1,682     2,576     1,864     1,826     1,801     1,768     1,746
       life insurance and other charges.......
      Office of Personnel Management: Federal     10,298    11,053    11,921    12,826    13,718    14,726    15,869
       employee health and life insurance fees
      Federal Deposit Insurance Corporation:         707     1,378     1,430     2,745     5,239     7,299     8,364
       Deposit insurance fees.................
      National Credit Union Administration:          324       293       323       285       220       219       224
       Credit union share insurance and other
       charges................................
      Postal Service: Fees for postal services    68,504    71,176    71,491    71,678    71,872    72,066    72,310
      Tennessee Valley Authority: Proceeds         7,806     8,621     8,937     8,443     8,428     8,708     8,987
       from the sale of energy................
      Undistributed Offsetting Receipts:
        Executive Office of the President:      ........  ........     9,720     1,080  ........  ........  ........
         Spectrum relocation receipts.........
        Federal Communications Commission:           160       110     9,950     1,150       100       100       100
         Auction receipts.....................
        Outer Continental Shelf receipts and       6,146     9,118     9,591    16,761     9,460    10,134     9,209
         other collections....................
      All other agencies, mandatory user           1,818       728       820       831       851       864       888
       charges................................
                                               ---------------------------------------------------------------------
        Subtotal, mandatory user charges......   160,552   178,710   209,245   209,951   207,934   215,385   221,926
                                               ---------------------------------------------------------------------
        Subtotal, user charges that are          181,811   205,600   239,842   240,364   238,998   247,130   254,753
         offsetting collections and receipts
         from the public......................
                                               =====================================================================
    TOTAL, User charges.......................   185,222   209,075   243,213   243,662   242,425   250,710   258,499
    ----------------------------------------------------------------------------------------------------------------

    [[Page 275]]

                           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 $3.5 billion in
    2007, increasing to $9.7 billion in 2011. These amounts are collections
    and receipts only. They do not include related spending.

    A.  Discretionary User Charge Proposals

    1.  Offsetting collections

    Department of Agriculture

       Farm Service Agency (FSA) user fees. New discretionary user fees are
    proposed to partially offset the salaries and expense cost necessary to
    operate two programs at FSA. The first fee would apply a service fee to
    loan deficiency payments (LDP) to help defray the cost associated with
    agency site visits and application preparation. The fee is estimated to
    be $5 per LDP and would most likely be collected by taking the fee
    amount as a reduction from the total LDP payment prior to issuance. The
    second fee would also apply a service fee to conservation reserve
    program contracts (including re-enrollments and extensions) to help
    defray the cost associated with administration of the program. The fee
    would be determined by contract size and is estimated to average $100
    per contract.

    Department of Defense

       Medical care fees. The Budget increases enrollment fees and
    deductibles for military retirees under age 65 (and families). The new
    cost shares differ for officer and enlisted retirees and for those in
    the different types of plans. They are also phased in over two years and
    indexed thereafter. The Budget also assumes that retail pharmacy co-
    payments for all military retirees will increase. In all cases, the
    changes in the out-of-pocket expenses would increase by no more than
    that of the annual Federal civilian health premium since 1996. None of
    these changes apply to active-duty members and their dependents. The
    total 2007 savings for these proposals is $735 million, $249 million of
    which requires new statutory authority.

    Department of Health and Human Services

       Medicare program management: Survey and certification user fee. The
    Budget proposes a new user fee for the Survey and Certification program
    within the Centers for Medicare and Medicaid Services. The agency would
    charge facilities participating in Medicare and Medicaid a fee for
    conducting follow-up surveys, which verify that they have taken
    appropriate action to correct identified deficiencies in compliance with
    specific Federal health, safety, and quality standards. This proposal
    could result in potential collections of $35 million in 2007.

    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 replace the two-tiered aviation passenger
    security fee with a single flat security fee of $5.00 for a one-way
    trip. The single fee corresponds better with actual security screening,
    which normally occurs only once in a one-way trip regardless of the
    number of trip segments. This proposal, along with air carrier security
    fees, will result in fee levels paid by system users that cover about 70
    percent of core aviation security costs. Requiring users to pay for
    aviation screening and security is what was intended by the Congress and
    will free up other homeland resources to address security threats across
    the general population.

    [[Page 276]]

                                Table 18-3.  USER FEE AND OTHER USER CHARGE PROPOSALS \1\
                                     (estimated collections in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                2007     2008     2009     2010     2011   2007-2011
    ----------------------------------------------------------------------------------------------------------------

                          DISCRETIONARY

    1.  Offsetting collections
    Department of Agriculture
      Farm Service Agency user fees.........................       35       34       34       33       34       170

    Department of Defense
      Medical care fees.....................................      249      635      907    1,106    1,353     4,250

    Department of Health and Human Services
      Medicare program management: Survey and certification        35       34       34       33       34       170
       user fee.............................................

    Department of Homeland Security
      Transportation Security Administration: Aviation          1,631    1,778    1,938    2,105    2,283     9,735
       security fees........................................

    Department of Housing and Urban Development
      Office of Federal Housing Enterprise Oversight:             -62      -60      -60      -59      -59      -300
       Government-sponsored enterprise (GSE) regulation.....

    Department of Justice
      Bureau of Alcohol, Tobacco, Firearms, and Explosives:       120      116      115      114      115       580
       Explosives regulation user fees......................

    Department of Transportation
      St. Lawrence Seaway Development Corporation commercial        9        9        9        9        9        45
       tolls*...............................................

    Department of Veterans Affairs
      Medical care fees:
        Prescription copayments for PL7s and 8s.............      288      255      255      255      254     1,307
        Annual enrollment user fee for PL 7s and 8s.........      226      229      221      212      204     1,092
        Eliminating offset of copayments with insurance            30       34       38       42       47       191
         collections for PL 7s and 8s.......................

    Commodity Futures Trading Commission
      Transaction fees......................................      127      123      122      120      122       614

    2.  Offsetting receipts
    Department of the Interior
      Abandoned mine reclamation fees.......................      312       79  .......  .......  .......       391
      Repeal Energy Bill fee prohibition....................  .......       20       20       20       20        80
                                                             -------------------------------------------------------
        Subtotal, discretionary user charge proposals.......    3,000    3,286    3,633    3,990    4,416    18,325

                            MANDATORY

    1.  Offsetting collections
    Depatment of Housing and Urban Development
      Government-sponsored enterprise (GSE) regulation......        6        6        6        6        6        30

    Federal Housing Enterprise Regulator
      Government-sponsored enterprise (GSE) regulation......       98       98       98       98       98       490

    Federal Housing Finance Board
      Government-sponsored enterprise (GSE) regulation......      -36      -38      -39      -40      -41      -194

    2.  Offsetting receipts
    Department of Agriculture
      Food Safety and Inspection Service user fees*.........      105      155      148      151      154       713
      Grain, Inspection, Packers, and Stockyards                   20       20       21       21       22       104
       Administration (GIPSA) user fees*....................
      Agricultural Marketing Service standardization and           14       14       15       15       15        73
       marketing orders user fees*..........................
      Animal and Plant Health Inspection Service user fees*.        8       11       11       12       12        54
      Federal crop insurance fees*..........................  .......       15       15       15       15        60

    Department of Defense
      National defense stockpile asset sales: Authorization         1       50       72       80       96       299
       for additional sales.................................

    Department of Health and Human Services: Food and Drug
     Administration
      Re-inspection fees*...................................       22       23       23       24       24       116
      Food and animal feed export certification fees*.......        4        4        4        4        4        20

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

    Department of the Interior
      Bureau of Land Management land sale authority.........  .......        5        9       14       52        80
      Arctic National Wildlife Refuge, lease bonuses:
        Collections for payments to Alaska..................  .......    3,502        2      503        3     4,010
        Collections deposited in the Treasury...............  .......    3,502        2      503        3     4,010

    Department of Labor
      Foreign labor certification fees......................       35       35       35       35       35       175
      Pension Benefit Guaranty Corporation premiums.........  .......    4,202    4,209    4,223    4,237    16,871

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

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

    Environmental Protection Agency
      Pesticide user fees*..................................       56       66       53       53       53       281
      Pre-manufacture notifice user fees*...................        4        8        8        8        8        36

    [[Page 277]]

    Federal Communications Commission
      Authorize spectrum license fees.......................       50      150      300      300      400     1,200
                                                             -------------------------------------------------------
        Subtotal, mandatory user charge proposals...........      456   11,905    5,069    6,102    5,273    28,805

                      GOVERNMENTAL RECEIPTS

    Department of the Interior
      National Indian Gaming Commission activity fees.......  .......        5        5        5        5        20
                                                             -------------------------------------------------------
        Total, user charge proposals........................    3,456   15,196    8,707   10,097    9,694    47,150
    ----------------------------------------------------------------------------------------------------------------
    Note: A negative sign indicates a decrease in collections.
    \1\ These amounts are collections and receipts only. They do not include related spending.
    * Once the fees are enacted, the Administration will work to reclassify them to offset discretionary spending
      beginning in 2008.

    Department of Housing and Urban Development

       Office of Federal Housing Enterprise Oversight: Government-sponsored
    enterprise (GSE) regulation. This proposal is discussed below in the
    section on the Federal Housing Enterprise Regulator.

    Department of Justice

       Bureau of Alcohol, Tobacco, Firearms and Explosives: Explosives
    regulation user fees. A new discretionary explosives user fee is
    proposed for all explosives manufactured in or imported into the United
    States. The fee would not apply to smokeless and black powder. Nor would
    it apply to sales to the military. For 2007, a user fee of $0.02/ pound
    would generate an estimated $120 million in additional collections,
    which would be used to offset the cost of regulating the explosives
    industry.

    Department of Transportation

       St. Lawrence Seaway Development Corporation (SLSDC) commercial tolls.
    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. This Budget proposes to allow the
    SLSDC to collect commercial tolls from users of the Seaway. The proposal
    also provides some funding so that SLSDC could cover its full-year
    operational costs in 2007. In future years, the Seaway could be fully
    fee-funded, consistent with its Canadian counterpart.

    Department of Veterans Affairs

       Medical care fees. The President's Budget includes legislation to
    implement a $250 annual enrollment fee and higher drug co-pays (from $8
    to $15) for non-disabled higher-income veterans (PL 7/8 veterans). These
    proposals do not pertain to veterans who are considered among VA's core
    mission and the highest priority--those with service disabilities, lower
    incomes, or special needs. The Budget also includes technical correction
    language to ensure that current co-pays are charged to all eligible
    veterans equally and not reduced if a veteran has outside insurance. The
    total savings for 2007 is estimated to be $795 million, of which $544
    million is increased collections.

    Commodity Futures Trading Commission
       Transaction fees. The Commodity Futures Trading Commission (CFTC)
    ensures the integrity and effectiveness of the U.S. futures and options
    markets and protects investors by preventing fraud and abuse and
    ensuring adequate disclosure of information. The Budget proposes a new
    transaction fee on commodity futures and option contracts traded on
    approved exchanges to cover the cost of the CFTC's regulatory
    activities. CFTC is the only Federal financial regulator that does not
    derive its funding from the specialized entities it regulates. This fee
    will shift CFTC's costs from the general taxpayer to the primary
    beneficiaries of CFTC's oversight and will be set at a level to avoid
    inhibiting the market's competitiveness.

    2.  Offsetting 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 through 2007.
       Repeal Energy Bill fee prohibition. A last-minute addition to the
    2005 Energy Policy Act prohibited the Administration from implementing
    new fees for oil and gas permit processing on Federal lands and provided
    a mandatory stream of funding for permit processing from funds that
    previously went to the Treasury. The Budget proposes to repeal this
    provision and institute new fees, as had been proposed in the 2006
    Budget. The proposed fees are expected to generate approximately $20
    million in 2008, thereby reducing the cost to taxpayers for operating
    these programs and eliminating the need for mandatory funding.

    [[Page 278]]

    B.  Mandatory User Charge Proposals

    1.  Offsetting collections

    Department of Housing and Urban Development (HUD)

       Government-sponsored enterprise (GSE) regulation. Upon enactment of
    the Budget proposal for a strengthened regulator for GSE's it is
    expected that the cost of HUD's responsibilities under the Federal
    Housing Enterprise Safety and Soundness Act of 1992, and amendments as
    proposed, would be assessed on Fannie Mae and Freddie Mac. These
    responsibilities include the establishment and enforcement of affordable
    housing goals for the GSEs, ensuring GSE compliance with fair housing
    laws, and providing consultation to the safety and soundness regulator
    on the GSEs' new activities. The cost of these regulatory
    responsibilities is currently in the HUD salaries and expenses account
    as a non-reimbursable expense.

    Federal Housing Enterprise Regulator

       Government-sponsored enterprise (GSE) regulation. The Administration
    will again propose broad reform of the supervisory system for 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. For additional information, see Chapter 7, ``Credit and
    Insurance'', in this volume.

    Federal Finance Housing Board

       Government-sponsored enterprise (GSE) regulation. This proposal is
    discussed above in the section on the Federal Housing Enterprise
    Regulator.

    2.  Offsetting receipts

      For the mandatory 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 2008. 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

       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 and marketing
    orders user fees.* The Administration is proposing two fees for the AMS.
    The first is a mandatory user fee (spending will be discretionary) to
    recover the full cost of the development of grade standards for which
    the agency currently provides grading services. The second is a proposal
    to recover a majority of the cost of the agency's oversight of marketing
    agreements and orders programs. These programs are industry run ``self-
    help'' initiatives and funding for Federal oversight of these programs
    should come from the industries that benefit substantially from their
    operation.
       Animal and Plant Health Inspection Service user fees.* The
    Administration proposes to establish user fees for animal welfare
    inspections, for animal research facilities, carriers, and in-transit
    handlers of animals.
       Federal crop insurance fees.* The Administration proposes to
    implement a participation fee in the Federal crop insurance program to
    fund modernization and future maintenance of the existing information
    technology (IT) system. The fee would be charged to insurance companies
    participating in the Federal crop insurance program based on a rate of
    about one-half cent per dollar of premium sold. Because it is the
    companies that will most benefit from better, more advanced computer
    systems, it is reasonable that they contribute to the modernization and
    maintenance of these systems.

    Department of Defense

       National Defense stockpile asset sales: Authorization for additional
    sales. The Administration proposes legislation to permit the sale of the
    remaining government-owned industrial commodities in the National
    Defense Stockpile that are not needed for national defense requirements.
    Sales of these commodities are expected to result in mandatory sales
    receipts of about $1 million in 2007 and a total of about $347 million
    in the next ten years. Sales receipts are subject to fluctuation based
    on commodity price changes.

    Department of Health and Human Services: Food and Drug Administration
    (FDA)

       Re-inspection fees.* FDA conducts post-market inspections of food,
    human drug, biologic, animal drug and feed, and medical device
    manufacturers to assess their compliance with Good Manufacturing
    Practice requirements. The Administration proposes new fees that would
    be assessed for repeat inspections due to violations found during the
    first inspection. FDA estimates collections of $22 million in 2007.
       Food and animal feed export certification fees.* FDA collects user
    fees for the issuance of export certifications for human and animal
    drugs, and medical devices as authorized by the Federal Food, Drug, and
    Cosmetic Act. The Administration proposes to expand FDA's authority to
    collect user fees for the issuance of export certificates for foods and
    animal feed. Timely issuance of food/feed export certificates funded
    through user fees would improve the ability of food and animal feed pro

    [[Page 279]]

    ducers to export their products. Thus, this proposal would enhance
    global competitiveness of U.S. industry. FDA estimates collections of $4
    million in 2007.

    Department of Homeland Security

       Extend Customs and Border Protection user fees. The Administration
    proposes the reauthorization beginning in 2015 of two user fees set to
    expire at the end of 2014: U.S Customs and Border Protection (CBP)
    conveyance and passenger fees, and the Merchandise Processing Fee (MPF).
    CBP currently collects multiple different conveyance and passenger user
    fees under the Consolidated Omnibus Budget Reconciliation Act of 1985
    and related statues and a merchandise processing fee (MPF) established
    by the Omnibus Budget Reconciliation Act of 1986, all of which are set
    to expire on September 30, 2014. Collections in 2015 are estimated to be
    $2.9 billion.
       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

       Bureau of Land Management land sale authority. The Administration
    will propose legislation to amend BLM's land sale authority under the
    Federal Land Transaction Facilitation Act (FLTFA) to: (1) allow BLM to
    use updated management plans to identify areas suitable for disposal;
    (2) allow a portion of the receipts to be used by BLM for restoration
    projects; (3) return 70 percent of land sale proceeds to the Treasury;
    and (4) cap receipt retention at $60 million per year. BLM is currently
    limited to selling lands that had been identified for disposal in land
    use plans that were in effect prior to enactment of FLTFA. Use of the
    receipts is currently limited to the purchase of other lands for
    conservation purposes. The new receipts shown in this chapter reflect
    only a portion of the savings from this proposal; additional savings
    will be generated by redirecting receipts under the existing FLFTA
    authority to the Treasury. The amounts shown in Table 18-3 reflect
    receipts only and do not include related spending.
       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 2008 and would result in an estimated $7 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 $6
    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 cost-based user fee for new applications
    under the permanent labor certification program. Fee proceeds would
    offset the costs of administering the program. Upon enactment of the
    fee, funding for these activities now included in the program
    administration account will be reviewed and adjusted.
       Pension Benefit Guaranty Corporation premiums. The Administration
    will re-propose increases to the insurance premiums paid to the Pension
    Benefit Guaranty Corporation for single-employer defined benefit pension
    insurance. The increase in premiums is needed to eliminate over the next
    10 years the nearly $23 billion deficit in this system. The
    Administration is working with the Congress to enact comprehensive
    pension reform including funding, disclosure, and premium changes, to
    ensure the solvency of the pension system.

    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, permit applications,
    and administrative fees for ``drawbacks'' from manufacturers of non-
    beverage products.

    Corps of Engineers--Civil Works

       Additional recreation fees. The Corps of Engineers manages 4,300
    recreation areas at 465 Corps projects (mostly lakes and reservoirs) on
    12 million acres in 43 States at an annual cost of about $267 million.
    The Administration re-proposes a recreation modernization (``RecMod'')
    initiative that would encourage the collection of entrance fees (not
    currently authorized) and the creation of public/private partnerships to
    improve Corps recreation facilities and services at little or no cost to
    the Federal Government. User fees and private/public partnerships would
    be implemented selectively, at recreation areas where fees would be
    appropriate. Some Corps recreation areas are isolated and remote;
    raising fees there might not be productive. But others are integral
    parts of prosperous urban communities with valuable lake-front property.
    Those communities may decide to help upgrade the Corps recreation areas
    that their citizens enjoy to provide amenities that might not otherwise
    be available.

    Environmental Protection Agency

       Pesticide user fees.* EPA presently collects fees from entities
    seeking to register their pesticides and from entities with existing
    pesticides registered for use in the United States. The Administration
    proposes to better cover the costs of EPA's pesticide services by
    increasing collections of currently authorized, but soon to expire,
    pesticide user fees. Furthermore, the Federal

    [[Page 280]]

    Food, Drug, and Cosmetic Act requires EPA to collect fees for the
    establishment and reassessment of pesticide tolerances. However,
    collection of these fees has been blocked through 2008. The
    Administration proposes to eliminate the prohibition and collect the
    tolerance fee in 2007. In addition, amendments to the Federal
    Insecticide, Fungicide, and Rodenticide Act require EPA to implement a
    new program to review all registered pesticides on a 15 year cycle to
    ensure that registrations reflect current science. EPA will phase in
    this new Registration Review program in 2007 while phasing out its
    Reregistration program. If EPA determines that a pesticide adversely
    impacts an endangered species during registration review, additional
    work is required to ensure adequate protections are implemented. The new
    registration review fee structure is designed to cover the incremental
    cost of this work.
       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.

    Federal Communications Commission

       Authorize spectrum license fees. 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
    are estimated to total $3.6 billion through 2016.
       Extend spectrum auction authority. The Administration proposes to
    extend indefinitely the FCC's authority to auction spectrum licenses,
    which was slated to expire in 2007, but is extended through 2011 in the
    Deficit Reduction Act. Assuming that this temporary extension occurs,
    the additional receipts from a permanent extension are estimated to be
    $1.0 billion for 2012-2016.

    C.  User Charge Proposals that are Governmental Receipts

    Department of the Interior

       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 $312.9 billion in 2007. Of these, an
    estimated $165.5 billion are offsetting collections credited to
    expenditure accounts and an estimated $147.4 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 $718.3 billion
    in 2007: $570.8 billion are intragovernmental transactions; and $147.4
    billion are from the public, shown in the table as proprietary receipts
    from the public ($130.8 billion) and offsetting governmental receipts
    ($16.7 billion).
      As noted above, offsetting collections and receipts by agency are also
    displayed in Table 21-1, which appears in Chapter 21, ``Outlays to the
    Public, Gross and Net,'' of this volume.

    [[Page 281]]

        Table 18-4.  OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
                            (in millions of dollars)
    ------------------------------------------------------------------------
                                                           Estimate
                                        Actual   ---------------------------
                                         2005         2006          2007
    ------------------------------------------------------------------------
    Offsetting collections credited
     to expenditure accounts:
      User charges:
        Postal service stamps and         68,504        71,176        71,491
         other postal fees..........
        Defense Commissary Agency...       5,393         5,296         5,294
        Employee contributions for         8,403         9,082         9,826
         employees and retired
         employees health benefits
         funds......................
        Sale of energy:
          Tennessee Valley Authority       7,806         8,621         8,937
          Bonneville Power                 3,214         3,134         3,436
           Administration...........
        All other user charges......      26,783        33,700        37,523
                                     ---------------------------------------
          Subtotal, user charges....     120,103       131,009       136,507

      Other collections credited to
       expenditure accounts:
        Commodity Credit Corporation      11,059        14,751        13,047
         fund.......................
        Supplemental security income       4,506         4,240         4,561
         (collections from the
         States)....................
        Other collections...........      16,057        11,737        11,340
                                     ---------------------------------------
          Subtotal, other                 31,622        30,728        28,948
           collections..............
                                     ---------------------------------------
        Subtotal, collections            151,725       161,737       165,455
         credited to expenditure
         accounts...................

    Offsetting receipts:
      User charges:
        Medicare premiums...........      38,243        48,119        55,478
        Outer Continental Shelf            6,146         9,118         9,541
         rents, bonuses, and
         royalties..................
        All other user charges......      17,319        17,354        38,316
                                     ---------------------------------------
          Subtotal, user charges          61,708        74,591       103,335
           deposited in receipt
           accounts.................

      Other collections deposited in
       receipt accounts:
        Military assistance program       11,051        11,114        11,044
         sales......................
        Interest income.............      15,168        14,003        15,203
        All other collections             16,957        22,978        17,847
         deposited in receipt
         accounts...................
                                     ---------------------------------------
          Subtotal, other                 43,176        48,095        44,094
           collections deposited in
           receipt accounts.........
                                     ---------------------------------------
        Subtotal, collections            104,884       122,686       147,429
         deposited in receipt
         accounts...................
                                     ---------------------------------------
    Total, offsetting collections        256,609       284,423       312,884
     and receipts from the public...

    Total, offsetting collections        188,042       213,187       241,332
     and receipts excluding off-
     budget.........................

    ADDENDUM:
      User charges that are              181,811       205,600       239,842
       offsetting collections and
       receipts \1\.................
      Other offsetting collections        74,798        78,823        73,042
       and receipts from the public.
                                     ---------------------------------------
        Total, offsetting                256,609       284,423       312,884
         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 282]]

                                         Table 18-5. OFFSETTING RECEIPTS BY TYPE
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                             Estimate
               Source                2005    -----------------------------------------------------------------------
                                    Actual       2006        2007        2008        2009        2010        2011
    ----------------------------------------------------------------------------------------------------------------
          INTRAGOVERNMENTAL
            TRANSACTIONS
    On-budget receipts:
      Federal intrafund
       transactions:
        Distributed by agency:
          Interest from the              552         393         786         803         697         742         794
           Federal Financing
           Bank.................
          Interest on Government         814       1,073       1,075       1,075       1,066       1,023       1,004
           capital in
           enterprises..........
          Interest received by           180         172         177         184         190         202         217
           retirement and health
           benefits funds.......
          General fund payments
           to retirement and
          health benefits funds:
              Proposed            ..........       1,713       1,999       2,353       2,599       2,966       3,377
               Legislation (non-
               PAYGO)...........
            DoD retiree health        17,639      19,216      20,722      22,723      24,903      27,264      29,806
             care fund..........
              Proposed            ..........  ..........          -2          -7         -11         -17         -22
               Legislation (non-
               PAYGO)...........
            Miscellaneous                277         285         285         306         377         474         437
             Federal retirement
             funds..............
          Other.................       3,323       2,551       2,789       2,305       2,356       2,409       2,474
            Proposed Legislation  ..........          28         105         270         463         682         932
             (non-PAYGO)........
        Undistributed by agency:
          Employing agency
           contributions:
              Proposed            ..........       2,933       3,138       3,358       3,593       3,845       4,114
               Legislation (non-
               PAYGO)...........
            DoD retiree health        10,490      11,072      11,546      12,125      12,824      13,601      14,410
             care fund..........
              Proposed            ..........  ..........         -73         -77         -82         -87         -92
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
          Total Federal               33,275      39,436      42,547      45,418      48,975      53,104      57,451
           intrafunds...........
                                 -----------------------------------------------------------------------------------
        Trust intrafund
         transactions:
          Distributed by agency:
          Payments to railroad         4,726       4,900       6,576       6,793       6,911       7,048       6,896
           retirement...........
                                 -----------------------------------------------------------------------------------
          Total trust intrafunds       4,726       4,900       6,576       6,793       6,911       7,048       6,896
                                 -----------------------------------------------------------------------------------
        Total intrafund               38,001      44,336      49,123      52,211      55,886      60,152      64,347
         transactions...........
                                 -----------------------------------------------------------------------------------
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Contributions to
             insurance programs:
              Military                21,358      23,180      24,049      24,951      25,886      26,857      27,865
               retirement fund..
              Supplementary          115,201     166,163     196,398     206,351     214,063     224,482     241,768
               medical insurance
                Proposed          ..........  ..........        -466      -2,159      -3,284      -3,871      -4,405
                 Legislation
                 (non-PAYGO)....
              Hospital insurance       9,381      10,689      12,206      14,001      15,347      15,953      18,146
              Railroad social            119         123         135         154         157         162         185
               security
               equivalent fund..
              Rail industry              323         313         323         338         352         366         381
               pension fund.....
              Civilian                25,887      27,453      27,815      28,428      29,105      29,688      30,108
               supplementary
               retirement
               contributions....
              Unemployment               773         768         794         813         823         846         960
               insurance........
              Other                      526         776         743         710         619         595         585
               contributions....
                                 -----------------------------------------------------------------------------------
              Subtotal..........     173,568     229,465     261,997     273,587     283,068     295,078     315,593
                                 -----------------------------------------------------------------------------------
            Miscellaneous              2,072       1,751       1,724       1,672       1,654       1,621       1,629
             payments...........
              Proposed            ..........  ..........       2,734  ..........  ..........  ..........  ..........
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
            Subtotal............     175,640     231,216     266,455     275,259     284,722     296,699     317,222
                                 -----------------------------------------------------------------------------------
          Trust fund payments to
           Federal funds:
            Quinquennial          ..........         350  ..........  ..........  ..........  ..........  ..........
             adjustment for
             military service
             credits............
            Other...............       3,305       1,744       3,046       3,542       3,604       3,667       3,730
              Proposed            ..........  ..........       2,282        -450        -453        -461        -470
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
            Subtotal............       3,305       2,094       5,328       3,092       3,151       3,206       3,260
                                 -----------------------------------------------------------------------------------
          Total interfunds           178,945     233,310     271,783     278,351     287,873     299,905     320,482
           distributed by agency
                                 -----------------------------------------------------------------------------------
        Undistributed by agency:
          Employer share,
           employee retirement
           (on-budget):
            Civil service             13,059      13,346      14,365      15,489      16,522      17,638      18,816
             retirement and
             disability
             insurance..........
            CSRDI from Postal          4,382       4,512       4,632       4,732       4,882       4,930       4,990
             Service............
            Hospital insurance         2,630       2,734       2,782       2,858       2,920       3,009       3,130
             (contribution as
             employer) \1\ .....
            Postal employer              672         682         706         732         759         788         818
             contributions to
             FHI................
            Military retirement       16,554      15,999      15,625      15,765      16,167      16,652      17,167
             fund...............

    [[Page 283]]

            Other Federal                190         191         193         195         197         199         201
             employees
             retirement.........
                                 -----------------------------------------------------------------------------------
            Total employer            37,487      37,464      38,303      39,771      41,447      43,216      45,122
             share, employee
             retirement (on-
             budget)............
                                 -----------------------------------------------------------------------------------
            Interest received by      69,153      71,756      75,346      79,012      83,242      86,881      89,765
             on-budget trust
             funds..............
              Proposed            ..........  ..........          73         221         461         769       1,140
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
          Total interfund            106,640     109,220     113,722     119,004     125,150     130,866     136,027
           transactions
           undistributed by
           agency...............
                                 -----------------------------------------------------------------------------------
        Total interfund              285,585     342,530     385,505     397,355     413,023     430,771     456,509
         transactions...........
                                 -----------------------------------------------------------------------------------
      Total on-budget receipts..     323,586     386,866     434,628     449,566     468,909     490,923     520,856
                                 -----------------------------------------------------------------------------------
    Off-budget receipts:
      Trust intrafund
       transactions:
        Distributed by agency:
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Old-age, survivors,       16,517      16,379      18,310      21,362      22,091      23,762      27,442
             and disability
             insurance..........
        Undistributed by agency:
            Employer share,           10,941      11,677      12,161      12,832      13,459      14,179      15,040
             employee retirement
             (off-budget).......
            Interest received by      91,836      97,443     105,748     115,701     127,788     140,427     154,322
             off-budget trust
             funds..............
              Proposed            ..........  ..........  ..........  ..........  ..........        -670      -2,976
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
      Total off-budget receipts:     119,294     125,499     136,219     149,895     163,338     177,698     193,828
                                 -----------------------------------------------------------------------------------
    Total intragovernmental          442,880     512,365     570,847     599,461     632,247     668,621     714,684
     transactions...............
                                 ===================================================================================
      PROPRIETARY RECEIPTS FROM
             THE PUBLIC
    Distributed by agency:
      Interest:
        Interest on foreign              418         402         426         341         339         337         334
         loans and deferred
         foreign collections....
        Interest on deposits in          510         602         622         628         640         643         643
         tax and loan accounts..
        Other interest                11,135      12,129      12,815      13,502      14,094      14,658      16,214
         (domestic--civil) \2\ .
                                 -----------------------------------------------------------------------------------
        Total interest..........      12,063      13,133      13,863      14,471      15,073      15,638      17,191
                                 -----------------------------------------------------------------------------------
        Dividends and other            3,105         870       1,340       1,382       1,400       1,400       1,378
         earnings...............
      Royalties and rents.......       3,495       5,004       4,682       4,636       4,320       4,127       4,172
        Proposed Legislation      ..........  ..........         -50         -51         -50         -50         -50
         (PAYGO)................
      Sale of products:
        Sale of timber and other         256         260         305         273         287         293         299
         natural land products..
        Sale of minerals and              63         753          94          36          33          32          31
         mineral products.......
        Sale of power and other          874         661         734         792         822         790         795
         utilities..............
        Other...................         107         102          92         109         105          94         113
                                 -----------------------------------------------------------------------------------
        Total sale of products..       1,300       1,776       1,225       1,210       1,247       1,209       1,238
                                 -----------------------------------------------------------------------------------
      Fees and other charges for
       services and special
       benefits:
        Medicare premiums and         38,243      48,119      55,585      60,141      63,264      65,811      69,407
         other charges (trust
         funds).................
          Proposed Legislation    ..........  ..........        -107        -445        -481        -467        -407
           (PAYGO)..............
        Nuclear waste disposal           736         752         754         767         767         769         771
         revenues...............
        Veterans life insurance          171         162         146         132         120         107          96
         (trust funds)..........
        Other \2\ ..............       3,786       9,729      11,779      12,273      13,004      13,803      14,692
          Proposed Legislation    ..........  ..........         256         281         274         266         260
           (non-PAYGO)..........
          Proposed Legislation    ..........  ..........         266         356         354         358         362
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
        Total fees and other          42,936      58,762      68,679      73,505      77,302      80,647      85,181
         charges................
                                 -----------------------------------------------------------------------------------
      Sale of Government
       property:
        Sale of land and other         1,333         999         988         986         954         952         915
         real property \2\ .....
          Proposed Legislation    ..........  ..........          48         278         155         101         118
           (PAYGO)..............
        Military assistance           11,051      11,114      11,044      11,243      11,446      11,651      11,861
         program sales (trust
         funds).................
        Other...................         324         146          71          74          77          77          71
          Proposed Legislation    ..........  ..........           1          50          72          80          96
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------

    [[Page 284]]

        Total sale of Government      12,708      12,259      12,152      12,631      12,704      12,861      13,061
         property...............
                                 -----------------------------------------------------------------------------------
      Realization upon loans and
       investments:
        Negative subsidies and         5,839       7,992         875         832         810         786         782
         downward reestimates...
          Proposed Legislation    ..........  ..........         676         880         939       1,039       1,171
           (non-PAYGO)..........
        Repayment of loans to            263         108          25          28          30          33          36
         foreign nations........
        Other...................       1,385          72          70          67          80          80          80
                                 -----------------------------------------------------------------------------------
        Total realization upon         7,487       8,172       1,646       1,807       1,859       1,938       2,069
         loans and investments..
                                 -----------------------------------------------------------------------------------
      Recoveries and refunds \2\       7,513       5,160       5,398       5,163       4,994       5,093       4,965
       .........................
        Proposed Legislation      ..........  ..........         288         313         379         384         389
         (non-PAYGO)............
        Proposed Legislation      ..........  ..........           9         499         537         393         405
         (PAYGO)................
      Miscellaneous receipt            2,508       2,230       2,242       2,173       2,186       2,207       2,227
       accounts \2\ ............
        Proposed Legislation      ..........  ..........          23          23          23          23          23
         (PAYGO)................
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts      93,115     107,366     111,497     117,762     121,974     125,870     132,249
       from the public
       distributed by agency....
                                 -----------------------------------------------------------------------------------
    Undistributed by agency:
      Rents, bonuses, and
       royalties:
        Outer Continental Shelf          679         707         949       1,075       1,058         846         756
         rents and bonuses......
        Outer Continental Shelf        5,467       8,411       8,542       8,159       8,048       7,932       7,997
         royalties..............
          Proposed Legislation    ..........  ..........          50          50          50          50          50
           (PAYGO)..............
        Arctic National Wildlife
         Refuge:
          Proposed Legislation    ..........  ..........  ..........       7,004           4       1,006           6
           (PAYGO)..............
      Sale of major assets......  ..........  ..........  ..........         323  ..........  ..........  ..........
      Other undistributed         ..........  ..........       9,720       1,080  ..........  ..........  ..........
       offsetting receipts......
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts       6,146       9,118      19,261      17,691       9,160       9,834       8,809
       from the public
       undistributed by agency..
                                 -----------------------------------------------------------------------------------
    Total proprietary receipts        99,261     116,484     130,758     135,453     131,134     135,704     141,058
     from the public............
                                 ===================================================================================
       OFFSETTING GOVERNMENTAL
              RECEIPTS
    Distributed by agency:
      Defense cooperation.......          11          12          13          14          15          16          17
      Regulatory fees...........       5,341       5,925       6,471       6,401       6,531       6,738       6,990
        Proposed Legislation      ..........  ..........         -62         -60         -60         -59         -59
         (non-PAYGO)............
        Proposed Legislation      ..........  ..........          66          66          66          66          66
         (PAYGO)................
      Other.....................         111         155         157         158         161         163         132
        Proposed Legislation      ..........  ..........          26          27          27          28          28
         (PAYGO)................
    Undistributed by agency:
      Spectrum auction proceeds.         160         110       9,950      12,238       2,870         100         100
        Proposed Legislation      ..........  ..........          50         150         300         300         400
         (PAYGO)................
                                 ===================================================================================
    Total offsetting                   5,623       6,202      16,671      18,994       9,910       7,352       7,674
     governmental receipts......
                                 ===================================================================================
    Total offsetting receipts...     547,764     635,051     718,276     753,908     773,291     811,677     863,416
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes provision for covered Federal civilian employees and military personnel.
    \2\ Includes both Federal funds and trust funds.