[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.