[Appendix]
[Detailed Budget Estimates by Agency]
[Department of the Treasury]
[From the U.S. Government Printing Office, www.gpo.gov]


                     THE BUDGET FOR FISCAL YEAR 2008


 
                       DEPARTMENT OF THE TREASURY

                          DEPARTMENTAL OFFICES

                              Federal Funds

                          Salaries and Expenses

                      (including transfer of funds)

     For necessary expenses of the Departmental Offices including 
operation and maintenance of the Treasury Building and Annex; hire of 
passenger motor vehicles; maintenance, repairs, and improvements of, and 
purchase of commercial insurance policies for, real properties leased or 
owned overseas, when necessary for the performance of official business, 
$250,141,000, of which not to exceed $3,000,000, to remain available 
until September 30, 2009, for information technology modernization 
requirements; not to exceed $200,000 for official reception and 
representation expenses; not to exceed $258,000 for unforeseen 
emergencies of a confidential nature, to be allocated and expended under 
the direction of the Secretary of the Treasury and to be accounted for 
solely on his certificate; $5,114,000, to remain available until 
September 30, 2009, is for the Treasury-wide Financial Statement Audit 
and Internal Control Program, of which such amounts as may be necessary 
may be transferred to accounts of the Department's offices and bureaus 
to conduct audits: Provided, That this transfer authority shall be in 
addition to any other provided in this Act; of which $3,000,000, to 
remain available until September 30, 2009 is for secure space 
requirements; $2,300,000, to remain available until September 30, 2009 
is for salary and benefits for hiring of personnel whose work will 
require completion of a security clearance investigation in order to 
perform highly classified work; and $2,100,000, to remain available 
until September 30, 2010, is to develop and implement programs within 
the Office of Critical Infrastructure Protection and Compliance Policy, 
including entering into cooperative agreements.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0101-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Economic policies and programs....          32          32          45
00.02 Financial policies and programs...          25          25          29
00.03 Terrorism and Financial 
        Intelligence....................          39          39          56
00.04 Treasury-wide management policies 
        and programs....................          12          12          16
00.05 Treasury-wide financial statement 
        audit...........................           4           4           5
00.07 Executive Direction...............          16          16          20
00.08 Administration programs activities          65          64          79
                                           ---------   ---------  ----------
01.00   Subtotal, Direct programs.......         193         192         250
09.11 Reimbursable program..............          17          20          20
                                           ---------   ---------  ----------
09.99   Subtotal, reimbursable program..          17          20          20
                                           ---------   ---------  ----------
10.00   Total new obligations...........         210         212         270
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           4           4
22.00 New budget authority (gross)......         214         212         270
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         215         216         274
23.95 Total new obligations.............        -210        -212        -270
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           4           4           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         198         192         250
40.35   Appropriation permanently 
          reduced.......................          -2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         196         192         250
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).          16          20          20
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           2
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          18          20          20
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         214         212         270
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          52          51          51
73.10 Total new obligations.............         210         212         270
73.20 Total outlays (gross).............        -213        -207        -258
73.40 Adjustments in expired accounts 
        (net)...........................          -1          -5          -5
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -2
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           5
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          51          51          58
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         181         175         221
86.93 Outlays from discretionary 
        balances........................          32          32          37
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         213         207         258
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -21         -20         -20
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -2
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         196         192         250
90.00 Outlays...........................         192         187         238
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...           1           1
92.02 Total investments, end of year: 
        Federal securities: Par value...           1
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2006 actual  2007 est.   2008 est.
Enacted/requested:
  Budget Authority............            196            192             250
  Outlays.....................            192            187             238
Supplemental proposal:
  Budget Authority............                             3
  Outlays.....................                             2               1

Total:
  Budget Authority............            196            195             250
  Outlays.....................            192            189             239

    Departmental Offices, as the headquarters bureau for the Department 
of the Treasury, provides leadership in such critical areas as economic 
and financial policy, terrorism and financial intelligence, financial 
crimes, and general management. The Secretary of the Treasury has the 
primary role in formulating and managing the domestic and international 
tax and financial policies of the Federal Government. Through effective 
management, policies, and leadership, the Treasury Department enables 
the use of financial tools in the war on terror, promotes the stability 
of the nation's financial markets, and ensures the government's ability 
to collect revenue.

    The 2008 Budget for the Salaries and Expenses appropriation provides 
new resources to create a platform for global growth and security by 
fortifying economic relations with for

[[Page 850]]

eign countries and financial institutions, and increased resources for 
analysis of corporate mergers and acquisitions in the U.S. for national 
security concerns. The Budget also provides resources to combat attempts 
by Specially Designated Global Terrorists and their support networks to 
evade U.S. and international sanctions; track, identify, and designate 
the financiers and other supporters of Weapons of Mass Destruction 
proliferation; and allows for an increase in policy advisors dedicated 
to the Western Hemisphere, Africa and the Middle East-South Asia nexus, 
bringing together the U.S. government tools available to law enforcement 
and national security agencies.

    The Budget proposes legislation to give the Secretary of the 
Treasury the ability to manage the government's short-term excess 
operating cash more efficiently. Under the current authority, which is 
codified at 31 U.S.C. 323, the Government is authorized to invest its 
short-term excess cash in obligations of the United States Government 
and depositary institutions, principally, banks, savings and loan 
associations, and credit unions. This initiative would enable the 
Secretary of the Treasury to broaden investment options and improve 
earnings on investments while not increasing the level of risk of those 
investments. This initiative is expected to increase the interest 
earnings on the Treasury's investment of short-term excess cash by 
approximately $10 million a year. Such earnings would be deposited in 
the general fund of the Treasury.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0101-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          90          90         115
12.1    Civilian personnel benefits.....          22          22          24
21.0    Travel and transportation of 
          persons.......................           4           4           7
23.1    Rental payments to GSA..........           6           6           5
23.3    Communications, utilities, and 
          miscellaneous charges.........          11          11           8
24.0    Printing and reproduction.......           3           3           3
25.1    Advisory and assistance services          23          23          53
25.2    Other services..................          18          18          10
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          11          11          19
25.7    Operation and maintenance of 
          equipment.....................           1                       1
26.0    Supplies and materials..........           3           3           4
31.0    Equipment.......................           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............         193         192         250
99.0  Reimbursable obligations..........          17          20          20
                                           ---------   ---------  ----------
99.9    Total new obligations...........         210         212         270
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0101-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         900       1,058       1,136
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................          97          90          90
---------------------------------------------------------------------------

                                

         Department-Wide Systems and Capital Investments Programs

                      (including transfer of funds)

     For development and acquisition of automatic data processing 
equipment, software, and services for the Department of the Treasury, 
$18,710,000, to remain available until September 30, 2010: Provided, 
That these funds shall be transferred to accounts and in amounts as 
necessary to satisfy the requirements of the Department's offices, 
bureaus, and other organizations: Provided further, That this transfer 
authority shall be in addition to any other transfer authority provided 
in this Act: Provided further, That none of the funds appropriated shall 
be used to support or supplement ``Internal Revenue Service, Information 
Systems'' or ``Internal Revenue Service, Business Systems 
Modernization''.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0115-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........          25          24          19
                                           ---------   ---------  ----------
10.00   Total new obligations...........          25          24          19
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          15          15          15
22.00 New budget authority (gross)......          24          24          19
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          40          39          34
23.95 Total new obligations.............         -25         -24         -19
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          15          15          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          24          24          19
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          13          17          15
73.10 Total new obligations.............          25          24          19
73.20 Total outlays (gross).............         -20         -26         -27
73.45 Recoveries of prior year 
        obligations.....................          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          17          15           7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           6          11           9
86.93 Outlays from discretionary 
        balances........................          14          15          18
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          20          26          27
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          24          24          19
90.00 Outlays...........................          20          26          27
---------------------------------------------------------------------------

    This account is authorized to be used by or on behalf of Treasury 
bureaus, at the Secretary's discretion, to modernize business processes 
and increase efficiency through technology investments. The 2008 Budget 
provides funds to begin work on a pilot Enterprise Content Management 
Solution, improve the capabilities and capacity of Treasury's Secure 
Data Network, and improve Treasury's Cyber Security.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0115-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
23.1  Rental payments to GSA............           1           1           1
25.2  Other services....................          21          20          14
31.0  Equipment.........................           3           3           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........          25          24          19
---------------------------------------------------------------------------

                                

                       Office of Inspector General

                          Salaries and Expenses

     For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $18,450,000, of which not to exceed $2,000,000 for official 
travel expenses, including hire of passenger motor vehicles; of which 
not to exceed $100,000 for unforeseen emergencies of a confidential 
nature, to be allocated and expended under the direction of the 
Inspector General of the Treasury; and of which not to exceed $2,500 
shall be available for official reception and representation expenses.


[[Page 851]]


    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0106-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Audits............................          12          12          12
00.02 Investigations....................           6           5           6
09.01 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          19          18          19
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                   1
22.00 New budget authority (gross)......          19          19          19
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          19          19          20
23.95 Total new obligations.............         -19         -18         -19
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........                       1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          17          17          18
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).           1           2           1
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           1
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......           2           2           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          19          19          19
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           1
73.10 Total new obligations.............          19          18          19
73.20 Total outlays (gross).............         -20         -19         -19
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          17          17          17
86.93 Outlays from discretionary 
        balances........................           3           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          20          19          19
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -2          -2          -1
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -1
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          17          17          18
90.00 Outlays...........................          18          17          18
---------------------------------------------------------------------------

    The Office of Inspector General (OIG) conducts audits, evaluations, 
and investigations designed to: (1) promote economy, efficiency, and 
effectiveness and prevent fraud, waste, and abuse in Departmental 
programs and operations; and (2) keep the Secretary and the Congress 
fully and currently informed of problems and deficiencies in the 
administration of Departmental programs and operations. This office 
covers all Treasury activities except tax administration.

    In 2008, the OIG Office of Audit will continue, as a first priority, 
to address mandated audits related to financial statements, information 
security, Treasury procurements on behalf of the Department of Defense, 
and as necessary, failed financial institutions resulting in material 
losses to the deposit insurance funds. OIG will provide audit oversight 
in a number of critical areas, in particular programs to Combat 
Terrorist Financing and Money Laundering, efforts to ensure the 
integrity of Treasury's information systems, and Treasury's management 
of capital investments.

    In 2008, the Office of Investigations will continue investigating 
all reports of fraud, waste and abuse and other criminal activity, such 
as financial programs where fraud and other crimes are involved in the 
issuance of licenses or benefits to citizens, will perform oversight or 
quality assurance reviews of Treasury's police operations at the Bureau 
of Engraving and Printing and the U.S. Mint, and will conduct proactive 
efforts to detect, investigate and deter electronic crimes and other 
threats to the Treasury's physical and cyber critical infrastructure. 
The Office of Investigations will continue current efforts to 
aggressively investigate, close, and refer cases for criminal 
prosecution, civil litigation or administrative action in a timely 
manner.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0106-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          10          11          11
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          11          12          12
12.1    Civilian personnel benefits.....           3           3           3
23.1    Rental payments to GSA..........           1           2           2
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           1                       1
                                           ---------   ---------  ----------
99.0      Direct obligations............          16          17          18
99.0  Reimbursable obligations..........           2           1           1
99.5  Below reporting threshold.........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          19          18          19
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0106-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         116         115         115
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................           4           2
---------------------------------------------------------------------------

                                

            Treasury Inspector General for Tax Administration

                          Salaries and Expenses

     For necessary expenses of the Treasury Inspector General for Tax 
Administration in carrying out the Inspector General Act of 1978, as 
amended, including purchase (not to exceed 150 for replacement only for 
police-type use) and hire of passenger motor vehicles (31 U.S.C. 
1343(b)); services authorized by 5 U.S.C. 3109, at such rates as may be 
determined by the Inspector General for Tax Administration; 
$140,533,000, of which not to exceed $6,000,000 for official travel 
expenses; of which not to exceed $500,000 for unforeseen emergencies of 
a confidential nature, to be allocated and expended under the direction 
of the Inspector General for Tax Administration; and of which not to 
exceed $1,500 shall be available for official reception and 
representation expenses.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0119-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Audit.............................          48          50          53
00.02 Investigations....................          83          82          88
09.01 Reimbursable program..............           2           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         133         133         142
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         134         134         142

[[Page 852]]

23.95 Total new obligations.............        -133        -133        -142
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   New budget authority (gross), 
          detail........................         133         132         141
40.35   Appropriation permanently 
          reduced.......................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         132         132         141
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           1           1
      Mandatory:

62.00   Transferred from other accounts.                       1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         134         134         142
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Change in obligated balances......           9           9           9
73.10 Total new obligations.............         133         133         142
73.20 Total outlays (gross).............        -133        -133        -141
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           9           9          10
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays (gross), detail...........         124         123         131
86.93 Outlays from discretionary 
        balances........................           9           9          10
86.97 Outlays from new mandatory 
        authority.......................                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         133         133         141
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Offsets.................          -2          -1          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         132         133         141
90.00 Outlays...........................         131         132         140
---------------------------------------------------------------------------

    The Treasury Inspector General for Tax Administration (TIGTA) 
conducts independent audits and investigations of Treasury Department 
matters relating to the Internal Revenue Service (IRS), the IRS 
Oversight Board, and the IRS Office of Chief Counsel. TIGTA's oversight 
helps ensure that the IRS accomplishes its mission; improves its 
programs and operations; promotes economy, efficiency and effectiveness; 
and prevents and detects fraud, waste and abuse.

    In 2008, TIGTA's investigative program will concentrate on three 
core areas: (1) employee integrity; (2) employee and infrastructure 
security; and (3) external attempts to corrupt tax administration. In 
2006, TIGTA closed 3,412 criminal investigations.

    In 2008, TIGTA will administer an audit program that strikes a 
balance between statutory audit coverage and discretionary audit work. 
The statutory coverage will include audits mandated by the IRS 
Restructuring and Reform Act of 1998, as well as reviews that address 
computer security, taxpayer privacy and rights, and financial 
management. In addition, TIGTA will continue to closely monitor the IRS' 
modernization efforts, its major management challenges, its response to 
the President's Management Agenda, and its progress in achieving its 
strategic goals and eliminating identified material weaknesses. TIGTA's 
2006 highlights include: 171 final reports issued; $1.8 billion in 
potential cost savings and increased and/or protected revenue 
identified; and 1.8 million taxpayer accounts potentially positively 
affected.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0119-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          75          71          76
11.3      Other than full-time permanent                       1           1
11.5      Other personnel compensation..           9           9           9
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          84          81          86
12.1    Civilian personnel benefits.....          24          24          26
21.0    Travel and transportation of 
          persons.......................           3           4           5
23.1    Rental payments to GSA..........           8           8           8
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           2           2
25.1    Advisory and assistance services           1           1           1
25.2    Other services..................           1           1           1
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           3           6           7
25.7    Operation and maintenance of 
          equipment.....................           1           1           1
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           3           3           3
                                           ---------   ---------  ----------
99.0      Direct obligations............         131         132         141
99.0  Reimbursable obligations..........           2           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         133         133         142
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0119-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         835         817         835
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................           3           3           3
---------------------------------------------------------------------------

                                

            Treasury Building and Annex Repair and Restoration

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0108-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Repair and improvement of Main 
        Treasury........................          12
                                           ---------   ---------  ----------
10.00   Total new obligations...........          12
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3           1          14
22.00 New budget authority (gross)......          10          12
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                       1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          13          14          15
23.95 Total new obligations.............         -12
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           1          14          15
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          10          12
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           6           4
73.10 Total new obligations.............          12
73.20 Total outlays (gross).............         -14          -3          -7
73.45 Recoveries of prior year 
        obligations.....................                      -1          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           4                      -8
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           8
86.93 Outlays from discretionary 
        balances........................           6           3           7
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          14           3           7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          10          12
90.00 Outlays...........................          14           3           7
---------------------------------------------------------------------------

    This appropriation funds repairs and selected improvements to the 
Main Treasury and Annex buildings.

    The 2006 appropriation of $10 million was the final investment in 
the Treasury Building and Annex Repair and Restoration (TBARR) project. 
Major repairs and restoration have

[[Page 853]]

resulted in a more modernized working environment while preserving the 
historic integrity of the Treasury Building, and have ensured improved 
working conditions for the health and safety of Treasury employees and 
visitors. This schedule reflects remaining balances.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0108-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
23.1  Rental payments to GSA............
23.1  Rental payments to GSA............           1
32.0  Land and structures...............          11
                                           ---------   ---------  ----------
99.9    Total new obligations...........          12
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0108-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................           3
---------------------------------------------------------------------------

                                

                  Expanded Access to Financial Services

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0121-0-1-808      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           2           2
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           2           2
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           2           2           2
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           1           1
73.45 Recoveries of prior year 
        obligations.....................          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------


                                

                          Counterterrorism Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0117-0-1-751      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Counterterrorism-related 
        activities......................           2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................           2
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3           1           1
23.95 Total new obligations.............          -2
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           1           1           1
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           7           5           5
73.10 Total new obligations.............           2
73.20 Total outlays (gross).............          -4
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           5           5           5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           4
---------------------------------------------------------------------------

    Most of the balances in this account were transferred to the 
Department of Homeland Security in accordance with the Homeland Security 
Act of 2002 (P.L. 107-296). The remaining resources were used to fund 
projects related to domestic and international terrorism. This schedule 
reflects remaining balances in the account.

                                

                       Terrorism Insurance Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0123-0-1-376      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Administrative Expenses...........           2           3           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........           2           3           2
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           7           5           2
23.95 Total new obligations.............          -2          -3          -2
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           5           2
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1           1
73.10 Total new obligations.............           2           3           2
73.20 Total outlays (gross).............          -2          -3          -2
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from mandatory balances...           2           3           2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           2           3           2
---------------------------------------------------------------------------

    The Terrorism Risk Insurance Extension Act of 2005 (P.L. 109-144) 
reauthorized and revised the program established by the Terrorism Risk 
Insurance Act of 2002 (P.L. 107-297). The Extension Act extended the 
Terrorism Insurance Program for two years, through December 31, 2007, 
and increases insurers' deductibles from 15 percent in calendar year 
2005 to 17.5 percent in 2006 and 20 percent in 2007. Under previous law, 
once the deductible was reached, the Federal Government was responsible 
for paying 90 percent of insured losses arising from acts of terrorism 
above the applicable insurer deductible and below a $100 billion annual 
aggregate cap. Under the revised program, the Federal Government is 
responsible for paying 85 percent of the insured losses during calendar 
year 2007. The Extension Act excludes the following lines of insurance 
previously covered by P.L. 107-297: commercial automobile; burglary and 
theft; surety; professional liability; and farm owners multiple peril. 
In addition, the trigger amounts for Federal payments increase from the 
original $5 million in aggregate insured losses from an act of terrorism 
to $100 million in calendar year 2007.

    The Budget only includes estimates of the general administrative 
costs of the program through December 31, 2007. Given the uncertainty 
surrounding the risk of future terrorist attacks, the Budget does not 
include estimates of the timing or magnitude of potential insurance 
claims under the program. Any such claims would be paid from permanent, 
indefinite authority and would not require subsequent appropriations.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0123-0-1-376      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
11.1  Personnel compensation: Full-time 
        permanent.......................           1           1           1
25.1  Advisory and assistance services..           1           2           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           2           3           2
---------------------------------------------------------------------------

[[Page 854]]



                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0123-0-1-376      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................          10          10           8
---------------------------------------------------------------------------

                                

                        Treasury Forfeiture Fund 

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5697-0-2-751      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............           1           2           2
                                           ---------   ---------  ----------
01.99 Balance, start of year............           1           2           2
    Receipts:
02.40 Earnings on investments, Treasury 
        forfeiture fund.................          27          20          20
02.60 Forfeited cash and proceeds from 
        sale of forfeited property, 
        Treasury forfeiture fund........         245         250         250
                                           ---------   ---------  ----------
02.99   Total receipts and collections..         272         270         270
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         273         272         272
    Appropriations:
05.00 Treasury forfeiture fund..........        -271        -270        -270
                                           ---------   ---------  ----------
07.99 Balance, end of year..............           2           2           2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5697-0-2-751      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Asset forfeiture fund.............         314         303         270
                                           ---------   ---------  ----------
10.00   Total new obligations...........         314         303         270
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          91          83          50
22.00 New budget authority (gross)......         271         270         270
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          35
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         397         353         320
23.95 Total new obligations.............        -314        -303        -270
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          83          50          50
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....         271         270         270
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         252         244         276
73.10 Total new obligations.............         314         303         270
73.20 Total outlays (gross).............        -287        -271        -270
73.45 Recoveries of prior year 
        obligations.....................         -35
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         244         276         276
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         243         243         243
86.98 Outlays from mandatory balances...          44          28          27
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         287         271         270
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         271         270         270
90.00 Outlays...........................         287         271         270
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...         179         275         126
92.02 Total investments, end of year: 
        Federal securities: Par value...         275         126         126
---------------------------------------------------------------------------

    The Treasury Forfeiture Fund is managed to support Federal, State, 
and local law enforcement's use of asset forfeiture as a powerful tool 
to punish and deter criminal activity. Non-tax forfeitures made by 
participating bureaus from the Treasury and Homeland Security 
Departments are deposited into the Fund and are available to pay or 
reimburse certain costs and expenses related to seizures and forfeitures 
that occur pursuant to laws enforced by the bureaus and other expenses 
authorized by 31 U.S.C. 9703.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5697-0-2-751      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
25.2  Other services....................          96         115         115
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         134         108          75
41.0  Grants, subsidies, and 
        contributions...................          84          80          80
                                           ---------   ---------  ----------
99.9    Total new obligations...........         314         303         270
---------------------------------------------------------------------------

                                

                   Presidential Election Campaign Fund

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5081-0-2-808      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
                                           ---------   ---------  ----------
01.99 Balance, start of year............
    Receipts:
02.60 Presidential election campaign 
        fund............................          50          50          50
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          50          50          50
    Appropriations:
05.00 Presidential election campaign 
        fund............................         -50         -50         -42
                                           ---------   ---------  ----------
07.99 Balance, end of year..............                                   8
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5081-0-2-808      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.02 Nominating conventions for parties                      33         206
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                      33         206
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          97         147         164
22.00 New budget authority (gross)......          50          50          42
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         147         197         206
23.95 Total new obligations.............                     -33        -206
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         147         164
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....          50          50          42
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                      33         206
73.20 Total outlays (gross).............                     -33        -206
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                  42
86.98 Outlays from mandatory balances...                      33         164
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                      33         206
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          50          50          42
90.00 Outlays...........................                      33         206
---------------------------------------------------------------------------

    Matching funds in primaries.--Upon certification by the Federal 
Election Commission, every candidate eligible to receive payments is 
entitled to receive $250 in Federal matching funds for each eligible 
$250 private contribution received after the beginning of the calendar 
year immediately preceding the election year through the end of the 
calendar year of the election.

    Nominating conventions of parties.--Upon certification by the 
Commission, payments may be made to the national com

[[Page 855]]

mittee of a major party or a minor party that elects to receive its 
entitlement. The total of such payments will be limited to the amount in 
the account at the time of payment. The national committee of each party 
may receive payments beginning on July 1 of the year immediately 
preceding the calendar year in which a presidential nominating 
convention of the political party is held. By statute, the two major 
parties receive $4 million each, plus a cost-of-living increase. In 
2004, both parties received $14.9 million for their nominating 
conventions.

    Candidates for general elections.--By statute, the eligible 
candidates of each major party in a presidential election are entitled 
to equal payments in an amount which, in the aggregate, shall not exceed 
$20 million each, plus a cost-of-living increase. In 2004, this amounted 
to $74.6 million for each candidate.

    In addition, provision is made for new parties, minor parties and 
non-major party candidates who may receive in excess of 5 percent of the 
popular vote and therefore, be entitled to a pro rata portion of the 
major party grant in the general election.

                                

                          Sallie Mae Assessments

    The Secretary of the Treasury is authorized by the Higher Education 
Act of 1965, as amended, to collect from the Student Loan Marketing 
Association, commonly known as Sallie Mae or SLMA an annual assessment 
of up to $800,000, adjusted by the Consumer Price Index, to cover the 
expenses relating to providing financial oversight of the Association.

    On December 29, 2004, Treasury officials announced the formal 
separation of Sallie Mae from the Federal Government which terminated 
its status as a Government-Sponsored Enterprise. This action completed 
the transformation of Sallie Mae to a fully private corporation.

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-5407-0-2-808      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................           2
---------------------------------------------------------------------------

                                

                       Exchange Stabilization Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4444-0-3-155      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year (Special 
        drawing rights).................      29,126      30,043      30,980
22.00 New budget authority (gross)......         917         937         958
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      30,043      30,980      31,938
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........      30,043      30,980      31,938
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         917         937         958
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..      14,135      14,135      14,135
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..      14,135      14,135      14,135
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.20     Interest on Federal securities        -683        -698        -714
88.40     Interest on foreign 
            investments.................        -234        -239        -244
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................        -917        -937        -958
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -917        -937        -958
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...      15,238      15,711      16,057
92.02 Total investments, end of year: 
        Federal securities: Par value...      15,711      16,057      16,410
92.03 Total investments, start of year: 
        non-Federal securities: Market 
        value...........................                  19,812      20,248
92.04 Total investments, end of year: 
        non-Federal securities: Market 
        value...........................      19,812      20,248      20,693
---------------------------------------------------------------------------

    The Secretary of the Treasury is authorized to deal in gold and 
foreign exchange and other instruments of credit and securities as the 
Secretary considers necessary, consistent with U.S. obligations in the 
International Monetary Fund (IMF) regarding orderly exchange 
arrangements and a stable system of exchange rates. An Exchange 
Stabilization Fund, with capital of $200 million, is authorized by law 
for this purpose (31 U.S.C. 5302). All earnings and interest accruing to 
this fund are available for the purposes thereof. Transactions in 
special drawing rights (SDR's) and U.S. holdings of SDR's are 
administered by the fund. U.S. drawings from the IMF, if any, are also 
advanced to the fund. As required by Public Law 95-612, the fund is not 
available to pay administrative expenses.

    The principal sources of the fund's income are earnings on 
investments held by the fund, including interest earned on fund holdings 
of U.S. Government securities.

    The amounts reflected in the 2007 and 2008 estimates entail only 
projected net interest earnings on Exchange Stabilization Fund (ESF) 
assets. The estimates are subject to considerable variance, depending on 
changes in the amount and composition of assets and the interest rates 
applied to investments. In addition, these estimates make no attempt to 
forecast gains or losses on SDR valuation or foreign currency valuation.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 20-4444-0-
3-155

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets: Investments in US 
          securities:

1102

Treasury securities, par

15,238

15,711

1201

Non-Federal assets: Foreign Currency Investments

19,256

19,812

1801

Other Federal assets: Special Drawing Rights

8,392

8,655





1999

Total assets

42,886

44,178

    LIABILITIES:
2207

Non-Federal liabilities: Other

9,334

9,480





2999

Total liabilities

9,334

9,480

    NET POSITION:
3100

Appropriated capital

200

200

3300

Cumulative results of operations

33,352

34,498





3999

Total net position

33,552

34,698





4999

Total liabilities and net position

42,886

44,178

-----------------------------------------------------------------------------------------------

                                

                           Working Capital Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4501-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.10 Working capital fund..............         206         245         245
09.11 Administrative overhead...........           7           8           8
                                           ---------   ---------  ----------
10.00   Total new obligations...........         213         253         253
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          46          62          54

[[Page 856]]

22.00 New budget authority (gross)......         216         245         255
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          13
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         275         307         309
23.95 Total new obligations.............        -213        -253        -253
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          62          54          56
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         216         245         255
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          98         101         109
73.10 Total new obligations.............         213         253         253
73.20 Total outlays (gross).............        -197        -245        -254
73.45 Recoveries of prior year 
        obligations.....................         -13
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         101         109         108
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         151         233         242
86.98 Outlays from mandatory balances...          46          12          12
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         197         245         254
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -216        -245        -255
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -19                      -1
---------------------------------------------------------------------------

    Central services in the Department of the Treasury working capital 
fund include: telecommunications, printing, duplicating, graphics, 
computer support/usage, personnel/payroll, automated financial 
management systems, training, short-term management assistance, 
procurement, information technology services, equal employment 
opportunity services, and environmental health and safety services. 
These services are provided on a reimbursable basis at rates which will 
recover the fund's operating expenses, including accrual of annual leave 
and depreciation of equipment.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4501-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
11.1  Personnel compensation: Full-time 
        permanent.......................          22          21          21
12.1  Civilian personnel benefits.......           4           6           6
21.0  Travel and transportation of 
        persons.........................                       1           1
23.1  Rental payments to GSA............           5           3           3
23.3  Communications, utilities, and 
        miscellaneous charges...........          15          15          15
25.2  Other services....................         161         186         186
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           2           2           2
25.7  Operation and maintenance of 
        equipment.......................           3           3           3
26.0  Supplies and materials............                       2           2
31.0  Equipment.........................           1          14          14
                                           ---------   ---------  ----------
99.9    Total new obligations...........         213         253         253
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-4501-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         200         233         233
---------------------------------------------------------------------------

                                

                         Treasury Franchise Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4560-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Consolidated/Integrated 
        Administrative Management.......         540         595         689
09.02 Financial Management 
        Administrative Support Service..          89          91          99
09.03 Financial Systems, Consulting and 
        Training........................          13           9           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........         642         695         797
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         251         235         395
22.00 New budget authority (gross)......         574         805         824
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          53          50          50
22.21 Unobligated balance transferred to 
        other accounts..................          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         877       1,090       1,269
23.95 Total new obligations.............        -642        -695        -797
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         235         395         472
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).         641         700         807
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........         -67         105          17
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         574         805         824
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..        -168        -183        -408
73.10 Total new obligations.............         642         695         797
73.20 Total outlays (gross).............        -671        -765        -820
73.45 Recoveries of prior year 
        obligations.....................         -53         -50         -50
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          67        -105         -17
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..        -183        -408        -498
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         489         625         640
86.93 Outlays from discretionary 
        balances........................         182         140         180
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         671         765         820
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -641        -700        -807
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          67        -105         -17
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          30          65          13
---------------------------------------------------------------------------

    The Department of the Treasury was authorized to pilot a franchise 
fund under P.L. 103-356, the Government Management and Reform Act of 
1994. The purpose of the franchise fund pilots was to bring about lower 
costs and higher quality for government and financial administrative 
services through greater competition. The Treasury Franchise Fund (The 
Fund) was established by P.L. 104-208, made permanent by P.L. 108-447 
and codified as 31 U.S.C. 322, note.

    The Fund is a revolving fund that is used to supply financial and 
administrative services to various Treasury bureaus on a fee-for-service 
basis. Activities include: Consolidated/Integrated Administrative 
Management; Financial Management Administrative Support; and Financial 
Systems, Consulting, and Training Services. The Fund was recognized as a 
Center of Excellence in the Financial Management Line of Business in 
2005, making it eligible to enter into competitions to provide cross-
agency financial management services on a Government-wide basis.


[[Page 857]]



               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4560-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
      Personnel compensation:

11.1    Full-time permanent.............          37          41          46
11.5    Other personnel compensation....           2           2           2
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          39          43          48
12.1  Civilian personnel benefits.......          11          15          17
21.0  Travel and transportation of 
        persons.........................           1           1           1
23.1  Rental payments to GSA............           3           3           3
23.3  Communications, utilities, and 
        miscellaneous charges...........           1
25.1  Advisory and assistance services..          11          12          14
25.2  Other services....................         513         555         641
25.3  Other purchases of goods and 
        services from Government 
        accounts........................          47          51          59
25.7  Operation and maintenance of 
        equipment.......................           3           3           3
26.0  Supplies and materials............           1           2           2
31.0  Equipment.........................          12          10           9
                                           ---------   ---------  ----------
99.0    Reimbursable obligations........         642         695         797
                                           ---------   ---------  ----------
99.9    Total new obligations...........         642         695         797
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-4560-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         645         827         909
---------------------------------------------------------------------------

                                

             Air Transportation Stabilization Program Account

     Sections 101(a)(1), 102, 104, and 107(2) of the Air Transportation 
Safety and System Stabilization Act (title I, P.L. 107-42) are hereby 
repealed. All unobligated balances under this heading are cancelled.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0122-0-1-402      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.09 Administrative expenses...........           3           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................           3           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           1           4
22.00 New budget authority (gross)......           3                      -4
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                       4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           4           5
23.95 Total new obligations.............          -3          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           1           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           3
40.36   Unobligated balance permanently 
          reduced.......................                                  -4
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............           3                      -4
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           4           4
73.10 Total new obligations.............           3           1
73.20 Total outlays (gross).............          -3          -1
73.45 Recoveries of prior year 
        obligations.....................                      -4
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           3
86.93 Outlays from discretionary 
        balances........................                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           3           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           3                      -4
90.00 Outlays...........................           3           1
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0122-0-1-402      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Guaranteed loan downward reestimates:
237001Airline loan guarantees...........        -115         -42
                                           ---------   ---------  ----------
237999Total downward reestimate subsidy 
        budget authority................        -115         -42
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................           4           1
3580  Outlays from balances.............           3           1
---------------------------------------------------------------------------

    On September 22, 2001, President Bush signed into law the Air 
Transportation Safety and System Stabilization Act, P.L. 107-42. The Act 
established the Air Transportation Stabilization Board. The Board has 
met the requirements established under P.L. 107-42, has one loan 
remaining, and expects to complete its activities in 2007. Following 
termination of the Board in 2007, the Budget seeks to cancel all 
unobligated balances in 2008 to close out the program.

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0122-0-1-402      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................           2
---------------------------------------------------------------------------

                                

    Air Transportation Stabilization Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4286-0-3-402      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.02 Interest payments to Treasury.....           1           1
00.03 Guarantee Fee Rebates.............           5
00.04 Fee for Sale of Loan Assets.......           5
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............          11           1
08.01 Payment of negative subsidy to 
        receipt account.................         538
08.02 Payment of downward reestimates to 
        receipt account.................         109          38
08.04 Payment of Interest on Downward 
        Reestimates to Receipt Account..           6           4
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         653          42
                                           ---------   ---------  ----------
10.00   Total new obligations...........         664          43
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         698          24
22.00 New financing authority (gross)...          46          31
22.60 Portion applied to repay debt.....         -47         -12
22.70 Balance of authority to borrow 
        withdrawn.......................          -9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         688          43
23.95 Total new obligations.............        -664         -43
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          24
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           1
67.10   Authority to borrow.............           9          10
        Spending authority from 
            offsetting collections:
69.00     Offsetting collections--
            Federal.....................           3
69.00     Offsetting collections--Non-
            Federal.....................          34          21
69.27     Capital transfer to general 
            fund........................          -1
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........          36          21
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          46          31
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............         664          43
73.20 Total financing disbursements 
        (gross).........................        -665         -42
----------------------------------------------------------------------------

[[Page 858]]



    Outlays (gross), detail:
87.00 Total financing disbursements 
        (gross).........................         665          42
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.25     Interest on uninvested funds..          -3
88.40     Non-Federal sources...........         -34         -21
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -37         -21
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           9          10
90.00 Financing disbursements...........         628          21
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4286-0-3-402      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........
2121  Limitation available from carry-
        forward.........................       8,258       8,258       8,258
2142  Uncommitted loan guarantee 
        limitation......................                              -8,258
2143  Uncommitted limitation carried 
        forward.........................      -8,258      -8,258
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         955
2251  Repayments and prepayments........        -955
2264  Adjustments: Other adjustments, 
        net.............................
                                           ---------   ---------  ----------
2290    Outstanding, end of year........
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......         125          75
2331    Disbursements for guaranteed 
          loan claims...................
2351    Repayments of loans receivable..         -11         -21
2361    Write-offs of loans receivable..         -39         -54
                                           ---------   ---------  ----------
2390      Outstanding, end of year......          75
---------------------------------------------------------------------------

    The Board expects to complete its activities in 2007.

    As required by the Federal Credit Reform Act of 1990, as amended, 
this non-budgetary account records all cash flows to and from the 
Government resulting from loan guarantees obligated in 1992 and beyond. 
The amounts in this account are a means of financing and are not 
included in the budget totals.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 20-4286-0-
3-402

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
1101

Federal assets: Fund balances with Treasury

698

24

      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501

Defaulted guaranteed loans receivable, gross

125

75

1505

Allowance for subsidy cost (-)

-100

-51





1599

Net present value of assets related to defaulted guaranteed loans

25

24





1999

Total assets

723

48

    LIABILITIES:
      Federal liabilities:

2103

Principal Payable to Bureau of Public Debt

53

6

2104

Payable to Treasury for FY 2005 Downward Reestimates

117

42

2204

Non-Federal liabilities: Liabilities for loan guarantees

553







2999

Total liabilities

723

48





4999

Total liabilities and net position

723

48

-----------------------------------------------------------------------------------------------

                                

    Community Development Financial Institutions Fund Program Account

     To carry out the Community Development Banking and Financial 
Institutions Act of 1994 (Public Law 103-325), including services 
authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed 
the per diem rate equivalent to the rate for ES-3, $28,557,000, to 
remain available until September 30, 2009, of which up to $12,200,000 
may be used for administrative expenses, including administration of the 
New Markets Tax Credit, up to $2,500,000 may be used for the cost of 
direct loans, and up to $250,000 may be used for administrative expenses 
to carry out the direct loan program: Provided, That the cost of direct 
loans, including the cost of modifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974, as amended: 
Provided further, That these funds are available to subsidize gross 
obligations for the principal amount of direct loans not to exceed 
$5,000,000.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1881-0-1-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct loan subsidy...............                       1           1
00.05 Upward Reestimate of Credit 
        Subsidy.........................                       1
00.09 General administrative expenses...          16          14          12
00.11 Bank enterprise awards program....          12           8
00.12 Financial Assistance..............          25          15          15
00.13 Technical Assistance..............           2           2           2
00.14 Native American/Hawaiian Program..           4           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          59          43          30
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           4           2           2
22.00 New budget authority (gross)......          55          42          29
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          61          45          32
23.95 Total new obligations.............         -59         -43         -30
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           2           2           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          55          41          29
40.35   Appropriation permanently 
          reduced.......................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          54          41          29
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1
      Mandatory:

60.00   Appropriation...................                       1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          55          42          29
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          64          54          57
73.10 Total new obligations.............          59          43          30
73.20 Total outlays (gross).............         -65         -38         -42
73.40 Adjustments in expired accounts 
        (net)...........................          -2          -1
73.45 Recoveries of prior year 
        obligations.....................          -2          -1          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          54          57          44
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          22           5           3
86.93 Outlays from discretionary 
        balances........................          43          32          39
86.97 Outlays from new mandatory 
        authority.......................                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          65          38          42
----------------------------------------------------------------------------

[[Page 859]]



    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          54          42          29
90.00 Outlays...........................          64          38          42
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1881-0-1-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Community Development Financial 
        Institutions Prog Fin Assist....           1           3           2
                                           ---------   ---------  ----------
115999Total direct loan levels..........           1           3           2
    Direct loan subsidy (in percent):
132001Community Development Financial 
        Institutions Prog Fin Assist....       37.47       37.47       37.52
                                           ---------   ---------  ----------
132999Weighted average subsidy rate.....       37.47       37.47       37.52
    Direct loan subsidy budget authority:
133001Community Development Financial 
        Institutions Prog Fin Assist....                       1           1
                                           ---------   ---------  ----------
133999Total subsidy budget authority....                       1           1
    Direct loan subsidy outlays:
134001Community Development Financial 
        Institutions Prog Fin Assist....           3           3
                                           ---------   ---------  ----------
134999Total subsidy outlays.............           3           3
    Direct loan upward reestimates:
135001Community Development Financial 
        Institutions Prog Fin Assist....                       1
                                           ---------   ---------  ----------
135999Total upward reestimate budget 
        authority.......................                       1
    Direct loan downward reestimates:
137001Community Development Financial 
        Institutions Prog Fin Assist....          -2
                                           ---------   ---------  ----------
137999Total downward reestimate budget 
        authority.......................          -2
---------------------------------------------------------------------------

    The Riegle Community Development and Regulatory Improvement Act of 
1994 established the Community Development Financial Institutions (CDFI) 
Fund. The CDFI Fund provides equity investments, grants, loans, and 
technical assistance to new and existing community development financial 
institutions (CDFIs) such as community development banks, community 
development credit unions, community development loan and venture 
capital funds, and microenterprise loan funds. Funds provided by the 
CDFI Fund are matched by private funds and will enhance the capacity of 
these institutions to finance economic development, including small 
businesses, community facilities, housing, and other community 
development initiatives in distressed urban, rural, Native American, 
Native Hawaiian, and Alaska Native communities. In addition, the CDFI 
Fund administers the New Markets Tax Credit Program by providing 
allocations of tax credits to Community Development Entities (CDEs) 
which in turn provide the tax credits to entities which invest in the 
CDEs. The 2008 Budget does not request funds for the Bank Enterprise 
Awards Program.

    The CDFI Fund helps to address the urgent problems of declining 
economic and social infrastructure, loss of jobs, lack of private 
enterprise, and deteriorating housing facing many American communities 
today. Government investment and technical assistance supplements 
private funds and expertise to ensure that CDFIs are effective in 
restoring and creating healthy economies.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1881-0-1-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
11.1  Personnel compensation: Full-time 
        permanent.......................           5           5           5
12.1  Civilian personnel benefits.......           1           1           2
23.1  Rental payments to GSA............           1           1           1
25.2  Other services....................           9           7           5
41.0  Grants, subsidies, and 
        contributions...................          43          29          17
                                           ---------   ---------  ----------
99.9    Total new obligations...........          59          43          30
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-1881-0-1-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................          48          63          63
---------------------------------------------------------------------------

                                

 Community Development Financial Institutions Fund Direct Loan Financing 
                                 Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4088-0-3-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct loans......................           1           3           2
00.02 Interest paid to Treasury.........           2           2           1
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............           3           5           3
08.02 Downward Reestimate--Credit 
        Subsidy.........................           2           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           5           6           3
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       1
22.00 New financing authority (gross)...           7           7           3
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1           1
22.60 Portion applied to repay debt.....          -2          -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           6           6           3
23.95 Total new obligations.............          -5          -6          -3
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           1
----------------------------------------------------------------------------

    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............           3           3           2
        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).           6           6           3
69.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          -2          -2          -2
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........           4           4           1
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           7           7           3
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           5                       2
73.10 Total new obligations.............           5           6           3
73.20 Total financing disbursements 
        (gross).........................         -11          -5          -5
73.45 Recoveries of prior year 
        obligations.....................          -1          -1
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           2           2           2
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..                       2           2
----------------------------------------------------------------------------

    Outlays (gross), detail:
87.00 Total financing disbursements 
        (gross).........................          11           5           5
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -3          -4          -1
88.40     Non-Federal sources Intrest 
            repayments..................          -3          -2          -2
88.40     Non-Federal sources--Principal
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................          -6          -6          -3
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............           2           2           2
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           3           3           2
90.00 Financing disbursements...........           5          -1           2
---------------------------------------------------------------------------

[[Page 860]]



               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4088-0-3-451      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          11           8           6
1142  Unobligated direct loan limitation 
        (-).............................         -10          -5          -4
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           1           3           2
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          62          67          70
1231  Disbursements: Direct loan 
        disbursements...................           7           5           5
1251  Repayments: Repayments and 
        prepayments.....................          -2          -2          -1
1263  Write-offs for default: Direct 
        loans...........................
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          67          70          74
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and beyond (including 
modifications of direct loans that resulted from obligations in any 
year). The amounts in this account are a means of financing and are not 
included in the budget totals.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 20-4088-0-
3-451

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401

Direct loans receivable, gross

62

67

1405

Allowance for subsidy cost (-)

-22

-22





1499

Net present value of assets related to direct loans

40

45





1999

Total assets

40

45

    LIABILITIES:
2103

Federal liabilities: Debt

40

45





2999

Total liabilities

40

45





4999

Total liabilities and net position

40

45

-----------------------------------------------------------------------------------------------

                                

                     Violent Crime Reduction Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8526-0-1-751      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1           1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    Amounts for the Department of the Treasury's portion of crime 
control programs are derived from transfers from the Violent Crime 
Reduction Trust Fund (VCRTF) as authorized by the Crime Control and Law 
Enforcement Act of 1994. This schedule reflects the only remaining 
balances in the account.

                                


 
                  FINANCIAL CRIMES ENFORCEMENT NETWORK

                              Federal Funds

                   Financial Crimes Enforcement Network

                          salaries and expenses

     For necessary expenses of the Financial Crimes Enforcement Network, 
including hire of passenger motor vehicles; travel and training expenses 
of non-Federal and foreign government personnel to attend meetings and 
training concerned with domestic and foreign financial intelligence 
activities, law enforcement, and financial regulation; not to exceed 
$14,000 for official reception and representation expenses; and for 
assistance to Federal law enforcement agencies, with or without 
reimbursement, $85,844,000, of which not to exceed $16,340,000 shall 
remain available until September 30, 2010; and of which $8,955,000 shall 
remain available until September 30, 2009: Provided, That funds 
appropriated in this account may be used to procure personal services 
contracts.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0173-0-1-751      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 BSA administration and Analysis...          62          62          77
00.02 Regulatory support programs, 
        including money services 
        businesses......................           9           9           9
09.01 Reimbursable program..............           3           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          74          73          88
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           7           8           8
22.00 New budget authority (gross)......          76          73          88
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          83          81          96
23.95 Total new obligations.............         -74         -73         -88
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           8           8           8
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          74          71          86
40.35   Appropriation permanently 
          reduced.......................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          73          71          86
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           3           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          76          73          88
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          23          20          20
73.10 Total new obligations.............          74          73          88
73.20 Total outlays (gross).............         -75         -73         -89
73.40 Adjustments in expired accounts 
        (net)...........................          -2
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          20          20          19
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          57          56          67
86.93 Outlays from discretionary 
        balances........................          18          17          22
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          75          73          89
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -3          -2          -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          73          71          86
90.00 Outlays...........................          72          71          87
---------------------------------------------------------------------------

    The mission of the Financial Crimes Enforcement Network (FinCEN) is 
to safeguard the U.S. financial system from the abuses of financial 
crime, including terrorist financing and

[[Page 861]]

money laundering. FinCEN is responsible for administering and ensuring 
compliance with the Bank Secrecy Act (BSA), a law that requires 
financial institutions to file reports on certain types of financial 
activity and to establish appropriate internal controls to guard against 
terrorist financing, money laundering, and other types of illicit 
finance. FinCEN fulfills its responsibility to safeguard the financial 
system through administration of the BSA, supporting law enforcement, 
intelligence, and regulatory agencies through sharing and analysis of 
financial intelligence, building global cooperation with counterpart 
financial intelligence units, and by networking people, ideas, and 
information.

    The 2008 Budget provides FinCEN with additional resources to improve 
its project management capability, including information technology and 
non-information technology projects. This funding will assist FinCEN in 
achieving consistent project results by standardizing processes and 
procedures and implementing best practices.

     In 2006 two FinCEN programs underwent PART evaluations. First, an 
evaluation of the BSA Analysis program found that although FinCEN 
produces both routine and advanced analysis of BSA data in support of 
law enforcement, more work is needed to increase the percentage of 
advanced analytical products, such as reports, that are produced. Also, 
FinCEN will begin to measure the impact of its efforts to strengthen 
anti-terrorist financing and anti-money laundering programs worldwide. 
Second, an evaluation of the BSA Administration activities found that 
FinCEN has annual performance measures that focus on the implementation 
of the BSA, but more work is needed to measure the impact of program 
activities on preventing the misuse of the financial system by those 
engaged in illicit activities.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0173-0-1-751      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          27          28          29
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          28          29          30
12.1    Civilian personnel benefits.....           7           7           8
21.0    Travel and transportation of 
          persons.......................           1           1           2
23.1    Rental payments to GSA..........           5           5           5
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           2           1
25.1    Advisory and assistance services           1           1           1
25.2    Other services..................           8           8          16
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          12           9          10
25.4    Operation and maintenance of 
          facilities....................                       1           1
25.7    Operation and maintenance of 
          equipment.....................           2           6           6
31.0    Equipment.......................           6           2           6
                                           ---------   ---------  ----------
99.0      Direct obligations............          71          71          86
99.0  Reimbursable obligations..........           3           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          74          73          88
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0173-0-1-751      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         296         334         356
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................           1           1           1
---------------------------------------------------------------------------

                                


 
                      FINANCIAL MANAGEMENT SERVICE

                              Federal Funds

                          Salaries and Expenses

     For necessary expenses of the Financial Management Service, 
$235,191,000, of which not to exceed $9,220,000 shall remain available 
until September 30, 2010, for information systems modernization 
initiatives; and of which not to exceed $2,500 shall be available for 
official reception and representation expenses.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1801-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............                                  11
                                           ---------   ---------  ----------
01.99 Balance, start of year............                                  11
    Receipts:
02.20 Debt collection...................          47          57          56
02.21 Debt collection--legislative 
        proposal subject to PAYGO.......                                  22
                                           ---------   ---------  ----------
02.99   Total receipts and collections..          47          57          78
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          47          57          89
    Appropriations:
05.00 Salaries and expenses.............         -47         -46         -57
05.01 Salaries and expenses--legislative 
        proposal subject to PAYGO.......                                 -22
                                           ---------   ---------  ----------
05.99   Total appropriations............         -47         -46         -79
                                           ---------   ---------  ----------
07.99 Balance, end of year..............                      11          10
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1801-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.05 Payments..........................         143         144         148
00.06 Collections.......................          18          17          20
00.07 Debt collection...................          55          56          57
00.08 Government-wide accounting and 
        reporting.......................          67          63          67
09.01 Reimbursable program..............         134         149         158
                                           ---------   ---------  ----------
10.00   Total new obligations...........         417         429         450
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          25          24          23
22.00 New budget authority (gross)......         415         428         450
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         442         452         473
23.95 Total new obligations.............        -417        -429        -450
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          24          23          23
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         236         233         235
40.35   Appropriation permanently 
          reduced.......................          -2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         234         233         235
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).         116         149         158
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          18
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         134         149         158
      Mandatory:

60.20   Appropriation (special fund)....          47          46          57
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         415         428         450
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          49          38          33
73.10 Total new obligations.............         417         429         450
73.20 Total outlays (gross).............        -417        -434        -448
73.40 Adjustments in expired accounts 
        (net)...........................          -3
73.45 Recoveries of prior year 
        obligations.....................          -2
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -18
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          12
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          38          33          35
----------------------------------------------------------------------------

[[Page 862]]



    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         344         349         360
86.93 Outlays from discretionary 
        balances........................          23          32          32
86.97 Outlays from new mandatory 
        authority.......................          22          27          27
86.98 Outlays from mandatory balances...          28          26          29
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         417         434         448
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -135        -149        -158
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -18
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          19
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         281         279         292
90.00 Outlays...........................         282         285         290
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2006 actual  2007 est.   2008 est.
Enacted/requested:
  Budget Authority............            281            279             292
  Outlays.....................            282            285             290
Legislative proposal, subject to 
    PAYGO:
  Budget Authority............                                            22
  Outlays.....................                                            22

Total:
  Budget Authority............            281            279             314
  Outlays.....................            282            285             312

    For the 2008 Budget, the Financial Management Service will focus its 
efforts on the following four areas:

    1. Payments.--FMS develops and implements payment policy and 
procedures for the Federal Government, issues and distributes payments, 
promotes the use of electronics in the payment process, and assists 
agencies in converting payments from paper checks to electronic funds 
transfer (EFT). This includes controlling and providing financial 
integrity to the Federal payments and collections process through 
reconciliation, accounting, and claims activities. The claims activities 
settle claims against the United States resulting from Government checks 
which have been forged, lost, stolen, or destroyed, and collects monies 
from those parties liable for fraudulent or otherwise improper 
negotiation of Government checks. The Payments activity received an 
``effective '' rating on a 2005 evaluation using OMB's Program 
Assessment Rating Tool (PART).

                           WORKLOAD STATISTICS

                               (Thousands)

                                     2006 actual  2007 est.   2008 est.
1. Number of check claims 
submitted.....................          1,500          1,300           1,200
2. Number of check payments...        219,054        214,167         208,039
3. Number of electronic 
payments......................        744,980        765,970         786,666

    2. Collections.--FMS implements collections policy, regulations, 
standards, and procedures for the Federal Government, facilitates 
collections, promotes the use of electronics in the collections process, 
and assists agencies in converting collections from paper to electronic 
media. The Collections activity received an ``effective'' PART rating in 
2004.

    3. Debt Collection.--FMS provides debt collection operational 
services to client agencies that include collection of delinquent 
accounts, child support debt, offsets of Federal payments against debts 
owed the Government, post-judgment enforcement, consolidation of 
information reported to credit bureaus, reporting for discharged debts 
or vendor payments, and disposition of foreclosed property. The Debt 
Collection activity received an ``effective'' PART rating in 2003.

    As a result of the PART analysis, the 2005 Budget sought legislative 
authority for following debt collection initiatives: 1) Allow Treasury 
to match information about persons who owe delinquent debt to the 
Government with information contained in the HHS National Directory of 
New Hires; 2) Increase amounts levied from vendor payments (from 15 
percent to 100 percent) to collect outstanding debts; 3) Allow the 
offset of Federal tax refunds to collect delinquent State UI 
overpayments; and 4) Eliminate the 10-year limitations period applicable 
to the offset of Federal non-tax payments to collect debt owed to 
Federal agencies. Initiatives 1 and 2 were enacted by the 2005 Omnibus 
Appropriations Act (P.L. 108-447) and the Jumpstart Our Business 
Strength Act (P.L. 108-357), respectively. Initiatives 3 and 4 were 
reproposed in the 2006 and 2007 Budget and are reproposed in 2008. In 
addition, the Budget proposes legislation to revise an existing 
exception to the Right to Financial Privacy Act to allow the Federal 
Government to trace and recover federal payments sent electronically to 
the wrong account.

    4. Government-wide Accounting and Reporting.--FMS provides financial 
accounting, reporting, and financing services to the Federal Government 
and the Government's agents who participate in the payments and 
collections process by generating a series of daily, monthly, quarterly 
and annual Government-wide reports. FMS also works directly with 
agencies to help reconcile reporting differences. The Government-wide 
Accounting activity received a ``moderately effective'' PART rating in 
2006.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1801-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         134         134         136
11.3      Other than full-time permanent           3           3           4
11.5      Other personnel compensation..           4           4           5
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         141         141         145
12.1    Civilian personnel benefits.....          36          36          36
21.0    Travel and transportation of 
          persons.......................           3           2           2
23.1    Rental payments to GSA..........          17          17          17
23.2    Rental payments to others.......           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........          12          12          12
24.0    Printing and reproduction.......           1           1           1
25.1    Advisory and assistance services          10          10          12
25.2    Other services..................          20          19          20
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           8           8           8
25.4    Operation and maintenance of 
          facilities....................           1           1           1
25.7    Operation and maintenance of 
          equipment.....................          18          18          20
26.0    Supplies and materials..........           4           4           5
31.0    Equipment.......................          10           9          11
32.0    Land and structures.............           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............         283         280         292
99.0  Reimbursable obligations..........         134         149         158
                                           ---------   ---------  ----------
99.9    Total new obligations...........         417         429         450
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-1801-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................       1,793       1,936       2,023
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         184         195          97
---------------------------------------------------------------------------

[[Page 863]]



                          Salaries and expenses

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1801-2-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Reimbursable program..............                                 -22
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                 -22
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 -22
23.95 Total new obligations.............                                  22
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).                                 -22
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                 -22
73.20 Total outlays (gross).............                                  22
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -22
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                                  22
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    Under current law, when the Financial Management Service (FMS) 
levies a payment to collect a delinquent tax debt referred by the 
Internal Revenue Service (IRS), the IRS pays a fee out of its annual 
appropriation to FMS to process the transaction. The Budget proposes to 
instead have the debtor pay the transaction costs in addition to their 
original debt. This would allow the IRS to refer all appropriate tax 
debts for offset, maximize revenue, and shift the cost of enforcement to 
delinquent tax debtors. These schedules reflect the elimination of 
discretionary spending and collections as a result of this proposal.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1801-2-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
99.0    Reimbursable obligations........                                 -22
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                 -22
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-1801-2-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................                                -144
---------------------------------------------------------------------------

                          Salaries and expenses

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1801-4-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.07 Debt collection...................                                  22
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  22
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  22
23.95 Total new obligations.............                                 -22
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....                                  22
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                  22
73.20 Total outlays (gross).............                                 -22
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                  22
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  22
90.00 Outlays...........................                                  22
---------------------------------------------------------------------------

    Under current law, when the Financial Management Service (FMS) 
levies a payment to collect a delinquent tax debt referred by the 
Internal Revenue Service (IRS), the IRS pays a fee out of its annual 
appropriation to FMS to process the transaction. The Budget proposes to 
instead have the debtor pay the transaction costs in addition to their 
original debt. This would allow the IRS to refer all appropriate tax 
debts for offset, maximize revenue, and shift the cost of enforcement to 
delinquent tax debtors. These schedules reflect an increase in mandatory 
spending as a result of this proposal. This additional spending is paid 
for by additional collections, resulting in a net deficit impact of 
zero.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1801-4-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
11.1  Personnel compensation: Full-time 
        permanent.......................                                   9
12.1  Civilian personnel benefits.......                                   3
25.1  Advisory and assistance services..                                   1
25.2  Other services....................                                   8
31.0  Equipment.........................                                   1
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  22
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-1801-4-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................                                 144
---------------------------------------------------------------------------

                                

                Payment to Justice, FIRREA Related Claims

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0177-0-1-752      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           2           2
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           2           2           2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    In 1998, the Secretary of the Treasury was authorized to use funds 
made available to the Federal Savings and Loan Insurance Corporation 
(FSLIC) Resolution Fund to reimburse the Department of Justice for the 
reasonable expenses of litigation that were incurred in the defense of 
claims against the U.S. arising from the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (FIRREA) and its implementation.


[[Page 864]]



                                

              Payment to the Resolution Funding Corporation 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1851-0-1-908      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Interest on REFCORP obligations...       1,979       2,140       2,140
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       1,979       2,140       2,140
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,979       2,140       2,140
23.95 Total new obligations.............      -1,979      -2,140      -2,140
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       1,979       2,140       2,140
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............       1,979       2,140       2,140
73.20 Total outlays (gross).............      -1,979      -2,140      -2,140
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,979       2,140       2,140
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,979       2,140       2,140
90.00 Outlays...........................       1,979       2,140       2,140
---------------------------------------------------------------------------

    The Financial Institutions Reform, Recovery, and Enforcement Act of 
1989 authorized and appropriated to the Secretary of the Treasury, such 
sums as may be necessary to cover interest payments on obligations 
issued by the Resolution Funding Corporation (REFCORP). REFCORP was 
established under the Act to raise $31.2 billion for the Resolution 
Trust Corporation (RTC) in order to resolve savings institution 
insolvencies.

    Sources of payment for interest due on REFCORP obligations include 
REFCORP investment income, proceeds from the sale of assets or warrants 
acquired by the RTC, and annual contributions by the Federal Home Loan 
Banks. If these payment sources are insufficient to cover all interest 
costs, indefinite, mandatory funds appropriated to the Treasury shall be 
used to meet the shortfall.

                                

      Payment to Terrestrial Wildlife Habitat Restoration Trust Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1738-0-1-306      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Cheyenne River Sioux Tribe 
        terrestrial wildlife habitat 
        restoration trust fund..........           4           4           4
00.02 Lower Breul Sioux Tribe 
        terrestrial wildlife habitat 
        restoration trust fund..........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           5           5           5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           5           5           5
23.95 Total new obligations.............          -5          -5          -5
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           5           5           5
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............           5           5           5
73.20 Total outlays (gross).............          -5          -5          -5
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           5           5           5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           5           5           5
90.00 Outlays...........................           5           5           5
---------------------------------------------------------------------------

    Section 604(b) of the Water Resources Development Act of 1999 (P.L. 
106-53) requires that the Secretary of the Treasury, beginning in 1999, 
deposit $5 million annually (74 percent into the Cheyenne River Sioux 
Tribe Terrestrial Wildlife Restoration Trust Fund and 26 percent into 
the Lower Brule Sioux Tribe Terrestrial Wildlife Restoration Trust Fund) 
until a total of $57.4 million has been deposited. At the end of FY 
2006, $40 million in payments had been deposited in the Trust Funds.

                                

                 Federal Reserve Bank Reimbursement Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1884-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Federal Reserve Bank services.....         288         256         295
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................         288         256         295
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          19          11
22.00 New budget authority (gross)......         280         245         295
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         299         256         295
23.95 Total new obligations.............        -288        -256        -295
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          11
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         280         245         295
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          57          69          69
73.10 Total new obligations.............         288         256         295
73.20 Total outlays (gross).............        -276        -256        -295
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          69          69          69
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                     245         295
86.98 Outlays from mandatory balances...         276          11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         276         256         295
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         280         245         295
90.00 Outlays...........................         276         256         295
---------------------------------------------------------------------------

    This fund was established as a permanent, indefinite appropriation 
to allow the Financial Management Service to reimburse the Federal 
Reserve Banks for services provided in their capacity as depositaries 
and fiscal agents for the United States.

                                

                         Financial Agent Services

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1802-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Financial agent services..........         399         416         426
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.1)...................         399         416         426
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          38          30
22.00 New budget authority (gross)......         391         386         426
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         429         416         426
23.95 Total new obligations.............        -399        -416        -426
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          30
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

[[Page 865]]

60.00   Appropriation...................         390         386         426
69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         391         386         426
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2          51          51
73.10 Total new obligations.............         399         416         426
73.20 Total outlays (gross).............        -350        -416        -426
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          51          51          51
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         313         386         426
86.98 Outlays from mandatory balances...          37          30
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         350         416         426
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         390         386         426
90.00 Outlays...........................         349         416         426
---------------------------------------------------------------------------

    This permanent, indefinite appropriation was established to 
reimburse financial institutions for the services they provide as 
depositaries and financial agents of the Federal Government. The 
services include the acceptance and processing of deposits of public 
money, as well as services essential to the disbursement of and 
accounting for public monies. The services provided are authorized under 
numerous statutes including, but not limited to, 12 U.S.C. 90 and 265. 
This permanent, indefinite appropriation is authorized by P.L. 108-100, 
the ``Check Clearing for the 21st Century Act,'' and permanently 
appropriated by P.L. 108-199, the ``Consolidated Appropriations Act of 
2004.''

                                

                       Interest on Uninvested Funds

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1860-0-1-908      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Interest of uninvested funds......           7           8           8
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................           7           8           8
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           7           8           8
23.95 Total new obligations.............          -7          -8          -8
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           7           8           8
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          18          18          18
73.10 Total new obligations.............           7           8           8
73.20 Total outlays (gross).............          -7          -8          -8
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          18          18          18
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           7           8           8
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           7           8           8
90.00 Outlays...........................           7           8           8
---------------------------------------------------------------------------

    Under conditions of the law creating each trust, interest accruing 
and payable from the general fund of the Treasury is appropriated for 
payment to the proper fund receipt accounts (31 U.S.C. 1321; 2 U.S.C. 
158; 20 U.S.C. 74a and 101; 24 U.S.C. 46; and 69 Stat. 533).

                                

                Federal Interest Liabilities to the States

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1877-0-1-908      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Federal interest liabilities to 
        States..........................           1           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................           1           3           3
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           1           3           3
23.95 Total new obligations.............          -1          -3          -3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           1           3           3
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............           1           3           3
73.20 Total outlays (gross).............          -1          -3          -3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           1           3           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           1           3           3
90.00 Outlays...........................           1           3           3
---------------------------------------------------------------------------

    As provided by statute and regulation, interest is paid to States 
when Federal funds are not transferred in a timely manner.

                                

                Interest Paid to Credit Financing Accounts

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1880-0-1-908      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Interest paid to credit financing 
        accounts........................       7,258       5,067       4,787
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................       7,258       5,067       4,787
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       7,258       5,067       4,787
23.95 Total new obligations.............      -7,258      -5,067      -4,787
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       5,200       5,067       4,787
69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).       2,058
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       7,258       5,067       4,787
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............       7,258       5,067       4,787
73.20 Total outlays (gross).............      -7,258      -5,067      -4,787
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       7,258       5,067       4,787
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........      -2,058
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       5,200       5,067       4,787
90.00 Outlays...........................       5,200       5,067       4,787
---------------------------------------------------------------------------

    This account pays interest on the invested balances of guaranteed 
and direct loan financing accounts. For guaranteed loan financing 
accounts, balances result when the accounts receive up-front payments 
and fees to be held in reserve to make payments on defaults. Direct loan 
financing accounts normally borrow from Treasury to disburse loans and 
receive interest and principal payments and other payments from

[[Page 866]]

borrowers. Because direct loan financing accounts generally repay 
borrowing from Treasury at the end of the year, they can build up 
balances of payments received during the year. Interest on invested 
balances is paid to the financing accounts from the general fund of the 
Treasury, in accordance with section 505(c) of the Federal Credit Reform 
Act of 1990.

                                

                    Claims, Judgments, and Relief Acts

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1895-0-1-808      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Claims for damages................           9          11          11
00.03 Claims for contract disputes......          82          99          99
                                           ---------   ---------  ----------
00.91   Total claims adjudicated 
          administratively..............          91         110         110
01.01 Judgments, Court of Claims........         177         215         213
01.02 Judgments, U.S. courts............         412         500         496
                                           ---------   ---------  ----------
01.91   Total court judgments...........         589         715         709
                                           ---------   ---------  ----------
10.00   Total new obligations...........         680         825         819
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         680         825         819
23.95 Total new obligations.............        -680        -825        -819
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         677         825         819
69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         680         825         819
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          16           7           7
73.10 Total new obligations.............         680         825         819
73.20 Total outlays (gross).............        -689        -825        -819
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           7           7           7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         673         825         819
86.98 Outlays from mandatory balances...          16
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         689         825         819
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         677         825         819
90.00 Outlays...........................         686         825         819
---------------------------------------------------------------------------

    Appropriations are made for cases in which the Federal Government is 
found by courts to be liable for payment of claims and interest for 
damages not chargeable to appropriations of individual agencies and for 
payment of private and public relief acts. Public Law 95-26 authorized a 
permanent, indefinite appropriation to pay certain judgments from the 
general funds of the Treasury.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1895-0-1-808      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
42.0  Direct obligations: Insurance 
        claims and indemnities..........         677         825         819
99.0    Reimbursable obligations: 
          reimbursable obligations......           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........         680         825         819
---------------------------------------------------------------------------

                                

                     Restitution of Foregone Interest

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1875-0-1-908      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Restitution of foregone interest..         157
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................         157
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         157
23.95 Total new obligations.............        -157
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         157
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............         157
73.20 Total outlays (gross).............        -157
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         157
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         157
90.00 Outlays...........................         157
---------------------------------------------------------------------------

    This account provides funds for the payment of interest on 
investments in Treasury securities that the Secretary of the Treasury 
suspended or redeemed during the ``debt limit suspension period'' 
declared during 2006. The statutes permit this action when Treasury is 
constrained by the statutory debt limit. They require Treasury to 
restore all due interest and principal to these funds as soon as this 
can be done without exceeding the debt limit. A payment of interest was 
made in 2006 to the Civil Service Retirement and Disability Fund for 
approximately $16 million and the G-Fund within the Thrift Savings Fund 
for $140 million.

                                

                        Biomass Energy Development

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0114-0-1-271      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          25           4
22.00 New budget authority (gross)......           6           5           9
22.40 Capital transfer to general fund..         -27          -9          -9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           4
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           6           5           9
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1           1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -6          -5          -9
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          -6          -5          -9
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0114-0-1-271      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Addendum:

[[Page 867]]

      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......          51          50          48
2351    Repayments of loans receivable..          -1          -2          -7
                                           ---------   ---------  ----------
2390      Outstanding, end of year......          50          48          41
---------------------------------------------------------------------------

    This account was created to provide loan guarantees for the 
construction of biomass-to-ethanol facilities, as authorized under Title 
II of the Energy Security Act of 1980. All of the loans guaranteed by 
this account went into default. The guarantees have been paid off, and 
the assets of all but one of the projects have been liquidated. The one 
remaining project, the New Energy Company of Indiana, continues to make 
payments to the Treasury on their loan, which the Government acquired 
after paying off the guarantee.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 20-0114-0-
1-271

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
1701

Defaulted guaranteed loans, gross



50

-----------------------------------------------------------------------------------------------

                                

                   Continued Dumping and Subsidy Offset

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5688-0-2-376      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............         293
    Adjustments:
01.91 Adjustment to 2003 SOY balance....        -293
                                           ---------   ---------  ----------
01.99 Balance, start of year............
    Receipts:
02.60 Antidumping and countervailing 
        duties, Continued dumping and 
        subsidy offset..................         476         356         364
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         476         356         364
    Appropriations:
05.00 Continued dumping and subsidy 
        offset..........................        -476        -356        -364
                                           ---------   ---------  ----------
05.99   Total appropriations............        -476        -356        -364
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5688-0-2-376      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Continued dumping and subsidy 
        offset..........................         226         452         440
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         226         452         440
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         316         566         470
22.00 New budget authority (gross)......         476         356         364
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         792         922         834
23.95 Total new obligations.............        -226        -452        -440
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         566         470         394
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....         476         356         364
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............         226         452         440
73.20 Total outlays (gross).............        -226        -452        -440
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from mandatory balances...         226         452         440
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         476         356         364
90.00 Outlays...........................         226         452         440
---------------------------------------------------------------------------

    The Bureau of Customs and Border Protection, Department of Homeland 
Security, collects duties assessed pursuant to a countervailing duty 
order, an antidumping duty order, or a finding under the Antidumping Act 
of 1921. Under a provision enacted in 2000, the Bureau of Customs and 
Border Protection, through the Treasury, currently distributes these 
duties to affected domestic producers. These distributions provide a 
significant additional subsidy to producers that already gain protection 
from the increased import prices provided by the tariffs. The authority 
to distribute assessments collected after October 1, 2007 has been 
repealed. Assessments collected before October 1, 2007 will be disbursed 
as if the authority had not been repealed.

                                

                       Check Forgery Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4109-0-3-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Reimbursable program..............          18          18          18
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................          18          18          18
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           6           3           3
22.00 New budget authority (gross)......          15          18          18
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          21          21          21
23.95 Total new obligations.............         -18         -18         -18
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           3           3           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          15          18          18
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............          18          18          18
73.20 Total outlays (gross).............         -18         -18         -18
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          12          15          15
86.98 Outlays from mandatory balances...           6           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          18          18          18
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -15         -18         -18
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           3
---------------------------------------------------------------------------

    This fund was established as a permanent, indefinite appropriation 
in order to maintain adequate funding of the Check Forgery Insurance 
Fund. The Fund facilitates timely payments for replacement Treasury 
checks necessitated due to a claim of forgery. The Fund recoups 
disbursements through reclamations made against banks negotiating forged 
checks.

    To reduce hardships sustained by payees of Government checks that 
have been stolen and forged, settlement is made in advance of the 
receipt of funds from the endorsers of the checks. If the U.S. Treasury 
is unable to recover funds through reclamation procedures, the Fund 
sustains the loss.

    P.L. 108-447 expanded the use of the fund to include payments made 
via electronic funds transfer (EFT). The Budget proposes a technical 
correction to the Fund's statutes to ensure and clarify that the Fund 
can be utilized as a funding source for relief of administrative 
disbursing errors (see the ``Administrative Provisions--Department of 
the Treasury'' at the end of the Treasury Chapter of this Appendix).


[[Page 868]]



                                

  

                               Trust Funds

   Cheyenne River Sioux Tribe Terrestrial Wildlife Habitat Restoration 
                               Trust Fund

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8209-0-7-306      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............          37          43          51
                                           ---------   ---------  ----------
01.99 Balance, start of year............          37          43          51
    Receipts:
02.00 General fund payments, Lower Brule 
        Sioux Tribe terrestrial wildlife 
        habitat restoration trust fund..           1           1           1
02.01 Earnings on investments, Lower 
        Brule Sioux Tribe terrestrial 
        wildlife habitat restoration 
        trust fund......................                       1           1
02.02 General fund payments, Cheyenne 
        River Sioux Tribe terrestrial 
        wildlife habitat restoration 
        trust fund......................           4           4           4
02.03 Earnings on investments, Cheyenne 
        River Sioux Tribe terrestrial 
        wildlife habitat restoration 
        trust fund......................           1           2           2
                                           ---------   ---------  ----------
02.99   Total receipts and collections..           6           8           8
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          43          51          59
    Appropriations:
05.00 Cheyenne River Sioux Tribe 
        terrestrial wildlife habitat 
        restoration trust fund..........          -5          -5          -5
05.01 Cheyenne River Sioux Tribe 
        terrestrial wildlife habitat 
        restoration trust fund..........           5           5           5
                                           ---------   ---------  ----------
05.99   Total appropriations............
                                           ---------   ---------  ----------
07.99 Balance, end of year..............          43          51          59
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8209-0-7-306      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......           5           5           5
60.45   Portion precluded from balances.          -5          -5          -5
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          38          45          51
92.02 Total investments, end of year: 
        Federal securities: Par value...          45          51          57
---------------------------------------------------------------------------

    This schedule reflects the payments made to the Cheyenne River Sioux 
Tribe Terrestrial Wildlife Restoration Trust Fund and the Lower Brule 
Sioux Tribe Terrestrial Wildlife Restoration Trust Fund. After the funds 
are fully capitalized (at a total level of $57.4 million), interest 
earned will be available to carry out the purposes of the funds.

                                


 
                         FEDERAL FINANCING BANK

                              Federal Funds

                          Federal Financing Bank

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4521-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Administrative expenses...........           4           4           4
09.02 Interest on borrowings from 
        Treasury........................         391         765       1,023
09.03 Interest on borrowings from civil 
        service retirement and 
        disability fund.................         651         651         653
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,046       1,420       1,680
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         361         779       1,212
22.00 New budget authority (gross)......       1,464       1,853       1,697
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,825       2,632       2,909
23.95 Total new obligations.............      -1,046      -1,420      -1,680
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         779       1,212       1,229
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).       1,464       1,853       1,697
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............       1,046       1,420       1,680
73.20 Total outlays (gross).............      -1,047      -1,420      -1,680
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,047       1,420       1,680
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........      -1,464      -1,853      -1,697
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -417        -433         -17
---------------------------------------------------------------------------

    The Federal Financing Bank (FFB) was created in 1973 to reduce the 
costs of certain Federal and federally assisted borrowing and to ensure 
the coordination of such borrowing from the public in a manner least 
disruptive to private financial markets and institutions. Prior to that 
time, many agencies borrowed directly from the private market to finance 
credit programs involving lending to the public at higher rates than on 
comparable Treasury securities. With the implementation of the Federal 
Credit Reform Act in 1992, however, agencies simply finance such loan 
programs through direct loan financing accounts that borrow directly 
from the Treasury. Therefore, FFB loans are now used primarily to 
finance direct agency activities such as construction of Federal 
buildings by the General Services Administration and activities of the 
U.S. Postal Service. In certain cases, the FFB finances Federal direct 
loans to the public that would otherwise be made by private lenders and 
fully guaranteed by a Federal agency.

    Lending by the FFB may take one of three forms, depending on the 
authorizing statutes pertaining to a particular agency or program: (1) 
the FFB may purchase agency financial assets; (2) the FFB may acquire 
debt securities that the agency is otherwise authorized to issue to the 
public; and (3) the FFB may originate direct loans on behalf of an 
agency by disbursing loans directly to private borrowers and receiving 
repayments from the private borrower on behalf of the agency. Because 
law requires that transactions by the FFB be treated as a means of 
financing agency obligations, the budgetary effect of the third type of 
transaction is reflected in the budget in the following sequence: a loan 
by the FFB to the agency, a loan by the agency to a private borrower, a 
repayment by a private borrower to the agency, and a repayment by the 
agency to the FFB.

    By law, the FFB receives substantially less interest each year on 
certain Department of Agriculture loans that it holds than it is 
contractually entitled to receive. For example, during 2006, as a result 
of this provision, the FFB received $234 million less than it was 
contractually entitled to receive. This law, however, does not reduce 
the amount of interest the FFB owes on its corresponding loans from 
Treasury. Treasury intends to submit legislation designed to correct 
this situation without impacting the Department of Agriculture's Cushion 
of Credit payments program or the Rural Economic Development loan and 
grant programs.

    A change in the method of accounting for losses associated with the 
Cushion of Credit payments program, together with net income of $556 
million, resulted in an increase in the

[[Page 869]]

net position of the FFB to $1.2 billion for 2005. In 2006, the FFB's net 
income was $533 million, further increasing the net position to $1.8 
billion.

    In addition to its authority to borrow from the Treasury, the FFB 
has the statutory authority to borrow up to $15 billion from other 
sources. Any such borrowing is exempt from the statutory ceiling on 
Federal debt. FFB exercised this authority most recently in November 
2004. In order to prolong Treasury's ability to operate under the then-
$7.4 trillion debt ceiling, the FFB issued $14 billion of its own debt 
securities to the Civil Service Retirement and Disability Fund (CSRDF) 
in exchange for $14 billion in special issue Treasury securities held by 
CSRDF. The FFB simultaneously redeemed these special issue Treasury 
securities with Treasury. This transaction extinguished $14 billion in 
securities that Treasury had issued to Government accounts (the CSRDF). 
An equivalent amount of the FFB's own debt to Treasury was reduced. The 
FFB debt held by the CSRDF will be redeemed beginning in 2009.

    The following table shows the annual net lending by the FFB by 
agency and program and the amount outstanding at the end of each year.

             NET LENDING AND LOANS OUTSTANDING, END OF YEAR

                        (in millions of dollars)

                                     2006 actual  2007 est.   2008 est.
A. Department of Agriculture:
1. Rural Utilities Service:
    Lending, net....................       2,477       1,754       1,238
    Loans outstanding...............      25,284      27,037      28,275
B. Department of Defense:
1. Defense working capital funds:
    Lending, net....................        -205         -82         -66
    Loans outstanding...............         171          89          23
C. Department of Education:
1. Historically black colleges and 
    universities:
    Lending, net....................          29         165         244
    Loans outstanding...............         154         319         563
D. Department of Housing and Urban 
    Development:
1. Section 108 guaranteed loans:
    Lending, net....................           *           *
    Loans outstanding...............           *
2. Low-rent public housing:
    Lending, net....................         -88         -93         -99
    Loans outstanding...............         884         791         692
E. Department of the Interior:
1. Territory of the Virgin Islands:
    Lending, net....................          -2          -3           *
    Loans outstanding...............           3           *
F. Department of Transportation:
1. Railroad Revitalization and 
    Regulatory Reform Act:
    Lending, net....................           *           *           *
    Loans outstanding...............           2           2           2
G. Department of Veterans Affairs:
1. Transitional housing for homeless 
    veterans:
    Lending, net....................           2           3           2
    Loans outstanding...............           2           5           7
H. General Services Administration:
1. Federal buildings fund:
    Lending, net....................           4           1         -51
    Loans outstanding...............       2,147       2,148       2,097
I. International Assistance 
    Programs:
1. Foreign military sales credit:
    Lending, net....................        -221        -187        -156
    Loans outstanding...............       1,024         837         681
J. Small Business Administration:
1. Section 503 guaranteed loans:
    Lending, net....................         -13         -11          -9
    Loans outstanding...............          27          16           7
K. Postal Service:
  Lending, net......................       2,100         900        -900
  Loans outstanding.................       2,100       3,000       2,100
                                    ====================================
Total lending:
  Lending, net......................       4,083       2,447         203
  Loans outstanding.................      31,799      34,245      34,448
                                    ====================================
    *$500,000 or less


                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 20-4521-0-
4-803

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101

Fund balances with Treasury

361

901

        Investments in US securities:
1104

Agency securities, par

27,774

31,844

1106

Receivables, net

183

446





1999

Total assets

28,318

33,191

    LIABILITIES:
      Federal liabilities:

2101

Accounts payable

197

322

2103

Borrowing from Treasury

12,426

16,709

2103

Borrowing from Civil Service Retirement & Disability Fund

14,000

14,000

2105

Unamortized Premium

474

406





2999

Total liabilities

27,097

31,437

    NET POSITION:
3300

Cumulative results of operations

1,221

1,754





3999

Total net position

1,221

1,754





4999

Total liabilities and net position

28,318

33,191

-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4521-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
25.2  Other services....................           4           4           4
43.0  Interest and dividends............       1,042       1,416       1,676
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,046       1,420       1,680
---------------------------------------------------------------------------

                                


 
                ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

                              Federal Funds

                          Salaries and Expenses

     For necessary expenses of carrying out section 1111 of the Homeland 
Security Act of 2002, including hire of passenger motor vehicles, 
$93,515,000; of which not to exceed $6,000 for official reception and 
representation expenses; not to exceed $50,000 for cooperative research 
and development programs for laboratory services; and provision of 
laboratory assistance to State and local agencies with or without 
reimbursement.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1008-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Protect the Public................          44          44          46
00.02 Collect revenue...................          46          46          48
                                           ---------   ---------  ----------
01.92   Total direct program............          90          90          94
09.01 Reimbursable program..............           2           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          92          92          96
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          91          92          96
23.95 Total new obligations.............         -92         -92         -96
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          91          90          94
40.35   Appropriation permanently 
          reduced.......................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          90          90          94
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          91          92          96
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          20          19          21

[[Page 870]]

73.10 Total new obligations.............          92          92          96
73.20 Total outlays (gross).............         -93         -90         -95
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          19          21          22
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          76          76          79
86.93 Outlays from discretionary 
        balances........................          17          14          16
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          93          90          95
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Other Federal sources.........                                  -2
88.40     Non-Federal Sources...........          -2          -2
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................          -2          -2          -2
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          90          90          94
90.00 Outlays...........................          91          88          93
---------------------------------------------------------------------------

    The Alcohol and Tobacco Tax and Trade Bureau (TTB) enforces the 
Federal laws and regulations relating to alcohol and tobacco by working 
directly and in cooperation with others to: (1) Provide the most 
effective and efficient system for the collection of all revenue that is 
rightfully due, eliminate or prevent tax evasion and other criminal 
conduct, and provide high quality service while imposing the least 
regulatory burden; and (2) Prevent consumer deception, ensure that 
regulated alcohol and tobacco products comply with Federal commodity, 
safety, and distribution requirements, and provide high quality customer 
service.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1008-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          39          42          44
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          40          43          45
12.1    Civilian personnel benefits.....          11          10          11
21.0    Travel and transportation of 
          persons.......................           3           4           4
23.1    Rental payments to GSA..........           5           5           5
23.3    Communications, utilities, and 
          miscellaneous charges.........           4           5           5
25.1    Advisory and assistance services           8
25.2    Other services..................           2          20          21
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           9
25.7    Operation and maintenance of 
          equipment.....................           1
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           6           2           2
                                           ---------   ---------  ----------
99.0      Direct obligations............          90          90          94
99.0  Reimbursable obligations..........           1           2           2
99.5  Below reporting threshold.........           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          92          92          96
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-1008-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         524         544         544
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................          10          15          15
---------------------------------------------------------------------------

                                

               Internal Revenue Collections for Puerto Rico

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5737-0-2-806      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
                                           ---------   ---------  ----------
01.99 Balance, start of year............
    Receipts:
02.60 Deposits, Internal revenue 
        collections for Puerto Rico.....         360         448         408
02.61 Deposits, Internal revenue 
        collections for Puerto Rico--
        legislative proposal subject to 
        PAYGO...........................                                  76
                                           ---------   ---------  ----------
02.99   Total receipts and collections..         360         448         484
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         360         448         484
    Appropriations:
05.00 Internal revenue collections for 
        Puerto Rico.....................        -360        -448        -408
05.01 Internal revenue collections for 
        Puerto Rico--legislative 
        proposal subject to PAYGO.......                                 -76
                                           ---------   ---------  ----------
05.99   Total appropriations............        -360        -448        -484
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5737-0-2-806      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Internal revenue collections for 
        Puerto Rico.....................         360         448         408
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         360         448         408
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         360         448         408
23.95 Total new obligations.............        -360        -448        -408
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....         360         448         408
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............         360         448         408
73.20 Total outlays (gross).............        -360        -448        -408
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         360         448         408
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         360         448         408
90.00 Outlays...........................         360         448         408
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2006 actual  2007 est.   2008 est.
Enacted/requested:
  Budget Authority............            360            448             408
  Outlays.....................            360            448             408
Legislative proposal, subject to 
    PAYGO:
  Budget Authority............                                            76
  Outlays.....................                                            76

Total:
  Budget Authority............            360            448             484
  Outlays.....................            360            448             484

    Excise taxes collected under the Internal Revenue laws of the United 
States on articles produced in Puerto Rico and either transported to the 
United States or consumed on the island are paid to Puerto Rico (26 
U.S.C. 7652).

               Internal Revenue Collections for Puerto Rico

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5737-4-2-806      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Internal revenue collections for 
        Puerto Rico.....................                                  76
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  76
----------------------------------------------------------------------------

[[Page 871]]



    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  76
23.95 Total new obligations.............                                 -76
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....                                  76
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                  76
73.20 Total outlays (gross).............                                 -76
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                  76
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  76
90.00 Outlays...........................                                  76
---------------------------------------------------------------------------

    Excise taxes are imposed on rum at the generally applicable 
distilled spirits rate of $13.50 per proof gallon imported from places 
other than Puerto Rico and the Virgin Islands and on rum coming into the 
United States from Puerto Rico or the Virgin Islands. These excise tax 
collections less estimated refunds, drawbacks and certain administrative 
expenses are transferred (cover over) to Puerto Rico and the Virgin 
Islands under a permanent provision at the lesser of a rate of $10.50 
per proof gallon or the current rate of tax imposed on a proof gallon. 
The Budget proposes to extend a temporary cover-over rate of $13.25 a 
proof gallon through December 31, 2008.

                                


 
                    BUREAU OF ENGRAVING AND PRINTING

                              Federal Funds

                  Bureau of Engraving and Printing Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4502-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Currency program..................         475         500         546
09.03 Other programs....................           2           6           6
09.11 Purchase of operating equipment...          15          35          35
09.12 Plant alterations and experimental 
        equipment.......................           4          15          15
                                           ---------   ---------  ----------
10.00   Total new obligations...........         496         556         602
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         118          96          96
22.00 New budget authority (gross)......         474         556         602
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         592         652         698
23.95 Total new obligations.............        -496        -556        -602
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          96          96          96
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).         484         556         602
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........         -10
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         474         556         602
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          63          68          68
73.10 Total new obligations.............         496         556         602
73.20 Total outlays (gross).............        -501        -556        -602
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          10
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          68          68          68
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         474         556         602
86.93 Outlays from discretionary 
        balances........................          27
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         501         556         602
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -484        -556        -602
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          10
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          17
---------------------------------------------------------------------------

    The Bureau of Engraving and Printing (BEP) designs, manufactures, 
and supplies Federal Reserve notes and other security instruments for 
various Federal agencies. Beginning in 2005, the BEP was given legal 
authority to print currency for foreign countries upon approval of the 
State Department.

    In 2008, BEP plans to introduce the new design of the $5 note as 
part of its ambitious multi-year initiative to redesign and enhance the 
security of United States currency. The redesign of the $5 note will be 
followed by the introduction of the redesigned $100 note in 2009.

    The anticipated work volume is based on estimates of requirements 
submitted by agencies served. The program comprises the following 
activities:

    Engraving and printing-
        Currency.--Total deliveries of currency for 2007 and 2008 are 
    estimated to be 9.1 and 9.7 billion respectively. During 2006, the 
    Bureau delivered 8.2 billion Federal Reserve notes.
        Securities.--This program encompasses the production of a wide 
    variety of bonds, notes, and debentures for the Bureau of Public 
    Debt and certain other agencies of the Government.
        Commissions, certificates, etc.--This program is comprised 
    primarily of Presidential and Department of Defense commissions and 
    certificates, White House invitations, and identification cards for 
    various Government agencies. It represents a small portion of the 
    Bureau's total workload and is reimbursed by the respective 
    agencies.

    The operations of the Bureau are currently financed by means of a 
revolving fund established in accordance with the provisions of Public 
Law 656, August 4, 1950 (31 U.S.C. 181), which requires the Bureau to be 
reimbursed by customer agencies for all costs of manufacturing products 
and services performed. The Bureau is also authorized to assess amounts 
to acquire capital equipment and provide for working capital needs. 
Bureau operations during 2006 resulted in a decrease to retained 
earnings of $8.6 million.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 20-4502-0-
4-803

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Non-Federal assets:

1206

Receivables, net

42

33

1207

Advances and prepayments

4

4

      Other Federal assets:

1801

Cash and other monetary assets

183

165

1802

Inventories and related properties

75

84

1803

Property, plant and equipment, net

249

250

1901

Other assets--Machinery repair parts

17

17





1999

Total assets

570

553

    LIABILITIES:
2101

Federal liabilities: Accounts payable

28

29

      Non-Federal liabilities:

2201

Accounts payable

14

12

2206

Pension and other actuarial liabilities

68

60





2999

Total liabilities

110

101

    NET POSITION:
3100

Appropriated capital

32

32

3300

Cumulative results of operations

428

420





3999

Total net position

460

452





[[Page 872]]

4999

Total liabilities and net position

570

553

-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4502-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
      Personnel compensation:

11.1    Full-time permanent.............         167         170         175
11.3    Other than full-time permanent..           1           1           2
11.5    Other personnel compensation....          11          11          14
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         179         182         191
12.1  Civilian personnel benefits.......          43          46          48
21.0  Travel and transportation of 
        persons.........................           2           2           2
23.1  Rental payments to GSA............           3           3           3
23.3  Communications, utilities, and 
        miscellaneous charges...........          13          14          14
24.0  Printing and reproduction.........           1           1           1
25.2  Other services....................          71          70          76
26.0  Supplies and materials............         124         188         207
31.0  Equipment.........................          60          50          60
                                           ---------   ---------  ----------
99.9    Total new obligations...........         496         556         602
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-4502-0-4-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................       2,190       2,300       2,250
---------------------------------------------------------------------------

                                


 
                           UNITED STATES MINT

                              Federal Funds

                United States Mint Public Enterprise Fund

     Pursuant to section 5136 of title 31, United States Code, the 
United States Mint is provided funding through the United States Mint 
Public Enterprise Fund for costs associated with the production of 
circulating coins, numismatic coins, and protective services, including 
both operating expenses and capital investments. The aggregate amount of 
new liabilities and obligations incurred during fiscal year 2008 under 
such section 5136 for circulating coinage and protective service capital 
investments of the United States Mint shall not exceed $33,200,000.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4159-0-3-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.06 Total Operating...................       1,506       1,949       1,899
09.07 Circulating and Protection Capital          12          27          25
09.08 Numismatic Capital................           9          13          14
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,527       1,989       1,938
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          62         108         108
22.00 New budget authority (gross)......       1,657       1,989       1,938
22.40 Capital transfer to general fund..         -84
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,635       2,097       2,046
23.95 Total new obligations.............      -1,527      -1,989      -1,938
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         108         108         108
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).       1,611       1,989       1,938
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          46
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......       1,657       1,989       1,938
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         217         118         118
73.10 Total new obligations.............       1,527       1,989       1,938
73.20 Total outlays (Gross).............      -1,580      -1,989      -1,938
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -46
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         118         118         118
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,580       1,989       1,938
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -8
88.40     Total Operating...............      -1,586      -1,989      -1,938
88.45     Offsetting governmental 
            collections (from non-
            Federal sources)............         -17
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................      -1,611      -1,989      -1,938
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -46
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -31
---------------------------------------------------------------------------

    The United States Mint manufactures coins, sells numismatic and 
investment products, and provides security and asset protection. Public 
Law 104-52, dated November 19, 1995, enacted 5136, of Subchapter III of 
chapter 51 of subtitle IV of title 31, United States Code established 
the United States Mint Public Enterprise Fund (the Fund). The Mint 
submits annual audited business-type financial statements to the 
Secretary of the Treasury and to Congress in support of the operations 
of the revolving fund.

    The operations of the Mint are divided into three major components: 
Circulating Coinage; Numismatic and Investment Products; and Protection. 
The Mint is credited with receipts from its circulating coinage 
operations equal to the full cost of producing and distributing the 
coins that are put into circulation, plus the depreciation of the Mint's 
plant and equipment on the basis of current replacement value. From 
that, the Mint pays its cost of operations, which includes production 
and distribution costs. The difference between the face value of the 
coins and these costs is considered an ``other financing source'' and is 
deposited as seigniorage to the general fund. In 2006, the Mint 
transferred $750 million to the general fund. If any seigniorage was 
used to finance the Mint's capital acquisitions it would be recorded as 
budget authority in the year that funds are obligated for this purpose 
and as receipts over the life of the asset. No seigniorage has been used 
for this purpose in recent years.

    Circulating Coinage.--This activity funds the manufacture of 
circulating coins for sale to the Federal Reserve System as determined 
by public demand. In 2008, this activity will manufacture 12.4 billion 
coins for sale to the Federal Reserve System.

     In 2007, the United States Mint will introduce a new Presidential 
$1 Coin Program as authorized by the Presidential $1 Coin Act of 2005 
(Public Law 109-145). As required by legislation, the Presidential 
dollar coin specifications will be similar to the Golden Dollar 
featuring Sacagawea and will be released into circulation at the rate of 
four different coin designs per year beginning in 2007 through 2018. 
Each coin design will honor former presidents of the United States in 
the order in which they served the nation.

    Numismatic and Investment Products.--This activity funds the 
manufacture of numismatic and bullion coins, medals, and other products 
for sale to collectors and the general public. These coins include 
annual recurring programs such as

[[Page 873]]

proof and uncirculated sets, silver proof coins, the American Eagle gold 
and silver bullion uncirculated and proof coins, American Eagle platinum 
coins, 24-Karat gold coins, and national and historic medals. The 
activity also includes nonrecurring programs for coins and medals which 
are legislated to commemorate specific events or individuals. In 2008, 
this activity will fund any pending commemorative coin program as 
legislated by Congress. In addition, the Fifty States Commemorative Coin 
Program Act authorized, beginning in 1999, the issuance of quarters for 
sale to the public and to the Federal Reserve System honoring each of 
the 50 states with a design emblematic of that state. These quarters are 
issued in the order of each state's admission to the Union. The Mint is 
producing five different state quarter designs each year resulting in a 
10-year program. In 2008, the final year of this program, the Mint will 
manufacture 2.7 billion quarters for sale to the public and the Federal 
Reserve System. All coins produced for this program are considered to be 
numismatic products.

    Protection.--This activity funds protection of the Government's 
stock of gold and silver bullion, coins, Mint employees and visitors, 
plant facilities and equipment, and all other Mint property against 
abuse, theft, damage, disorders, and all other unsafe or illegal 
practices by utilizing police officers and modern protective devices.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 20-4159-0-
3-803

2005 actual

2006 actual

-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101

Fund balances with Treasury

279

226

        Investments in US securities:
1106

Receivables, net

15

28

1107

Advances and prepayments

6

6

      Other Federal assets:

1802

Inventories and related properties

328

253

1803

Property, plant and equipment, net

273

233

1901

Other assets



10,509





1999

Total assets

901

11,255

    LIABILITIES:
2101

Federal liabilities: Accounts payable

129

62

      Non-Federal liabilities:

2201

Accounts payable

31

21

2207

Other

72

10,529





2999

Total liabilities

232

10,612

    NET POSITION:
3300

Cumulative results of operations

669

643





3999

Total net position

669

643





4999

Total liabilities and net position

901

11,255

-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4159-0-3-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
      Personnel compensation:

11.1    Full-time permanent.............         119         125         129
11.5    Other personnel compensation....          13          16          16
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         132         141         145
12.1  Civilian personnel benefits.......          37          45          45
21.0  Travel and transportation of 
        persons.........................           1           4           4
22.0  Transportation of things..........          42          28          28
23.1  Rental payments to GSA............           1           1           1
23.2  Rental payments to others.........          19          28          25
23.3  Communications, utilities, and 
        miscellanoues charges...........          17          26          25
24.0  Printing and reproduction.........           3           8           7
25.2  Other services....................         139         207         168
26.0  Supplies and materials............       1,115       1,462       1,451
31.0  Equipment.........................          16          25          27
32.0  Land and structures...............           5          14          12
                                           ---------   ---------  ----------
99.0    Reimbursable obligations........       1,527       1,989       1,938
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,527       1,989       1,938
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-4159-0-3-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................       1,927       1,975       1,975
---------------------------------------------------------------------------

                                


 
                        BUREAU OF THE PUBLIC DEBT

                              Federal Funds

                      Administering the Public Debt

     For necessary expenses connected with any public-debt issues of the 
United States, $182,871,000, of which not to exceed $2,500 shall be 
available for official reception and representation expenses, and of 
which not to exceed $2,000,000 shall remain available until September 
30, 2010 for systems modernization: Provided, That the sum appropriated 
herein from the general fund for fiscal year 2008 shall be reduced by 
not more than $10,000,000 as definitive securities issue fees and Legacy 
Treasury Direct Investor Account Maintenance fees are collected, so as 
to result in a final fiscal year 2008 appropriation from the general 
fund estimated at $172,871,000. In addition, $70,000 to be derived from 
the Oil Spill Liability Trust Fund, to reimburse the Bureau for 
administrative and personnel expenses for financial management of the 
Fund, as authorized by section 1012 of Public Law 101-380.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0560-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Wholesale Securities Services.....          18          12          13
00.02 Government Agency Investment 
        Services........................          15          13          13
00.03 Retail Securities Services........         135         145         141
00.04 Summary Debt Accounting...........           6           6           6
09.01 Wholesale Securities Services.....           2           1           1
09.02 Government Agency Investment 
        Services........................           3           3           3
09.03 Retail Securities Services........          15          14          21
09.04 Summary Debt Accounting...........           1                       1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         195         194         199
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           4           3           3
22.00 New budget authority (gross)......         195         194         199
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         199         197         202
23.95 Total new obligations.............        -195        -194        -199
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           3           3           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         177         176         173
40.35   Appropriation permanently 
          reduced.......................          -2
41.00   Transferred to other accounts...          -2
42.00   Transferred from other accounts.           2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         175         176         173
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).          17          15          16
58.00     Offsetting collections (user 
            fees).......................           3           3          10
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          20          18          26
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         195         194         199
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          32          29          30
73.10 Total new obligations.............         195         194         199
73.20 Total outlays (gross).............        -197        -193        -199
73.40 Adjustments in expired accounts 
        (net)...........................          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          29          30          30
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         175         173         178

[[Page 874]]

86.93 Outlays from discretionary 
        balances........................          22          20          21
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         197         193         199
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -17         -15         -16
88.40     Non-Federal sources...........          -3          -3         -10
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -20         -18         -26
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         175         176         173
90.00 Outlays...........................         177         175         173
---------------------------------------------------------------------------

    The Bureau of the Public Debt (BPD) borrows the money needed to 
operate the Federal Government, accounts for the resulting debt, and 
provides reimbursable support services to federal agencies. In 2008, BPD 
will complete its transition to a new wholesale securities auction 
system, as well as make several improvements to the infrastructure 
supporting the TreasuryDirect online retail accounts offered to the 
general public.

    This appropriation provides funds for the conduct of all public debt 
operations, which is comprised of four main activities:

    Wholesale Securities Services.--This program ensures that Treasury's 
critical financing needs are met and that the integrity and efficiency 
of primary and secondary markets for Treasury securities are maintained. 
It encompasses all activities related to the regulation, auction, issue, 
servicing and redemption of Treasury marketable securities that are 
owned by institutional investors and their customers. The Federal 
Reserve, acting as Treasury's fiscal agent, maintains the top tier of 
accounts for financial institutions who, in turn, hold and service 
accounts for their customers.

    Government Agency Investment Services.--This program supports 
Federal, State and local government agencies' investments in non-
marketable Treasury securities as well as borrowings from Treasury. 
There are more than 200 federal trust and investment funds and, for 18 
of the funds, Public Debt also acts for the Secretary in his role as 
managing trustee. These include some of the more recognizable Federal 
trust funds such as Social Security, Medicare, Unemployment, and 
Highway.

    Retail Securities Services.--This program manages marketable and 
non-marketable securities held directly with Treasury by more than 50 
million citizens. Besides the issuance and redemption of securities, 
services include processing customer service requests of varying 
complexity. These functions are performed directly by Public Debt, by 
Federal Reserve Banks as fiscal agents of the United States, and by 
qualified agents that issue and redeem savings bonds and notes. The 
account maintenance fees that BPD charges to account holders in the 
Legacy Treasury Direct system with an account balance of more than 
$100,000 in par value, will be raised from $25 to $100 per year in 2008. 
The increased fees will help to partially offset the cost to the 
Treasury of providing these services. Although the fees may induce some 
customers to transfer their account holdings to the new internet-
accessed TreasuryDirect system, the expected receipts are adjusted to 
reflect this possibility.

    Summary Debt Accounting.--This program involves the timely and 
accurate accounting and reporting of the outstanding public debt and 
related interest expense incurred to finance the Federal Government. The 
program provides daily information on the balance and composition of the 
public debt and Public Debt's summary level accounts represent the 
control totals for dozens of subordinate securities systems.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0560-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          75          86          89
11.3      Other than full-time permanent           1
11.5      Other personnel compensation..           3           3           3
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          79          89          92
12.1    Civilian personnel benefits.....          21          23          24
21.0    Travel and transportation of 
          persons.......................           1           1           2
23.1    Rental payments to GSA..........           6           6           6
23.3    Communications, utilities, and 
          miscellaneous charges.........          16          17          15
24.0    Printing and reproduction.......           2           2           2
25.1    Advisory and assistance services           1                       1
25.2    Other services..................          27          22          15
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           8           8           7
25.4    Operation and maintenance of 
          facilities....................           1                       1
25.7    Operation and maintenance of 
          equipment.....................           3           2           2
26.0    Supplies and materials..........           2           2           2
31.0    Equipment.......................           7           3           3
                                           ---------   ---------  ----------
99.0      Direct obligations............         174         175         172
99.0  Reimbursable obligations..........          20          18          26
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         195         194         199
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0560-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................       1,299       1,390       1,390
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................          69          18          21
---------------------------------------------------------------------------

                                

                 Reimbursements to Federal Reserve Banks 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0562-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Payments to Federal Reserve Banks.         112         130          96
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.3)...................         112         130          96
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3
22.00 New budget authority (gross)......         100         128          96
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           9           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         112         130          96
23.95 Total new obligations.............        -112        -130         -96
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         100         128          96
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          37          32          44
73.10 Total new obligations.............         112         130          96
73.20 Total outlays (gross).............        -108        -116        -104
73.45 Recoveries of prior year 
        obligations.....................          -9          -2
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          32          44          36
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          80          96          72
86.98 Outlays from mandatory balances...          28          20          32
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         108         116         104
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         100         128          96

[[Page 875]]

90.00 Outlays...........................         108         116         104
---------------------------------------------------------------------------

    This fund was established by the Treasury, Postal Service and 
General Government Appropriations Act of 1991 (P.L. 101-509, 104 Stat. 
1394) as a permanent, indefinite appropriation to allow the Bureau of 
the Public Debt to reimburse the Federal Reserve Banks for acting as 
fiscal agents of the Federal Government in support of financing the 
public debt.

                                

                 Payment of Government Losses in Shipment

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-1710-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Government losses in shipment.....           1           2           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................           1           2           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       1
22.00 New budget authority (gross)......           2           1           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           2           1
23.95 Total new obligations.............          -1          -2          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           2           1           1
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............           1           2           1
73.20 Total outlays (gross).............          -1          -2          -1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                       1           1
86.98 Outlays from mandatory balances...           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1           2           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           2           1           1
90.00 Outlays...........................           1           2           1
---------------------------------------------------------------------------

    This account was created as self-insurance to cover losses in 
shipment of Government property such as coins, currency, securities, 
certain losses incurred by the Postal Service, and losses in connection 
with the redemption of savings bonds. Approximately 1,100 claims are 
paid annually.

                                


 
                        INTERNAL REVENUE SERVICE


    The Internal Revenue Service (IRS) provides taxpayers top-quality 
service by helping them understand and meet their tax responsibilities 
and by applying the tax law with integrity and fairness to all. This 
mission demands a safe and modernized infrastructure and capabilities to 
effectively and efficiently collect taxes while minimizing taxpayer 
burden. The IRS strategic goals are: Improve Taxpayer Service.-- Help 
people understand their tax obligations and make it easier for them to 
pay their taxes; Enhance Enforcement of the Tax Law.-- Ensure all 
taxpayers meet their tax obligations, so that when they pay their taxes, 
they can be confident their neighbors and competitors are also doing the 
same; and Modernize the IRS through its People, Processes and 
Technology.-- Manage resources and technology to achieve service and 
enforcement strategic goals.

    One of the priorities of the Administration is reducing the tax gap 
(the difference between taxes paid and taxes owed). In September 2006, 
the Department of the Treasury published A Comprehensive Strategy for 
Reducing the Tax Gap (see www.ustreas.gov/press/releases/hp111.htm and 
chapter 13, Stewardship in the Analytical Perspectives volume of the 
2008 Budget). These documents lay out a multi-year seven-part strategy 
to improve compliance without imposing undue burdens on taxpayers. The 
Budget provides $410 million in new initiatives and $248 million for 
cost increases for the IRS to make progress in implementing this 
strategy.

    Tax Enforcement Program: The IRS continues its emphasis on tax 
enforcement, increasing collections of delinquent tax debt from $34 
billion in 2002 to $49 billion in 2006, an increase of 44 percent. Since 
2003, Federal Government receipts have also increased by over $600 
billion (35 percent). Revenue growth has been greatest in the areas of 
corporate taxes and high-income individual taxes. In 2008, as part of 
the tax gap reduction effort, the Budget increases funding for 
enforcement by $440 million. This includes $291 million for new 
enforcement initiatives and $149 million in cost increases. The IRS 
estimates that once fully implemented (2010), these new initiatives will 
result in an additional $699 million per year in collections of 
delinquent tax debt. Improved enforcement will also encourage voluntary 
compliance, which will further increase revenue. As in 2006 and 2007, 
the Administration proposes to include these enforcement increases as a 
Budget Enforcement Act program integrity cap adjustment (see chapter 15, 
Budget Reform Proposals in the Analytical Perspectives volume of the 
2008 Budget). The IRS' Enforcement Program is funded in the Enforcement 
and Operations Support appropriations.

    The IRS will continue efforts to improve enforcement efficiency 
through streamlining and centralizing work processes, improving workload 
selection techniques, and implementing initiatives to reduce cycle time 
by refining case selection criteria. The IRS will enhance coverage of 
high-risk compliance areas, as well as further address the tax gap 
associated with small business and self-employed taxpayers. Enforcement 
efforts will focus on critical reporting, filing and payment compliance 
programs, and will highlight abusive tax avoidance transactions and high 
income individual examinations involving pass-through entities (e.g., 
partnerships, trusts). The IRS will continue to reengineer its 
examination and collection procedures to reduce time, increase yield, 
and expand coverage.

    Taxpayer Service Program: Helping the public understand its tax 
reporting and payment obligations is a cornerstone of taxpayer 
compliance. In 2008, as part of the tax gap reduction effort, the Budget 
increases funding for taxpayer service by $131 million. This includes 
$56 million for new service initiatives and $75 million in cost 
increases. The IRS' Service Program is funded in the Taxpayer Service 
and Operations Support appropriations.

    In 2008, the IRS will continue with its efforts to increase and 
improve the services offered to taxpayers. The IRS will increase self-
service applications, continue to ensure web navigation is user-
friendly, while also improving the quality and accuracy of its telephone 
responses. The IRS will expand its research and evaluate information 
regarding taxpayer service needs, priorities, and preferences in order 
to improve delivery services. The IRS will invest in technology, process 
improvements, and training to achieve consistent repeatable quality 
service with reduced costs. As a result of recent technology 
enhancements, including using e-File and payment, e-services, and the 
IRS' website, more taxpayers reach the IRS through the internet. For 
example, in 2006, more than 1.3 billion web pages were viewed on the 
www.irs.gov website and more than 24.7 million taxpayers checked their 
refund status by accessing ``Where's My Refund?'' on the IRS website. 
They also can use automated features found at 1-800-829-1040. In 
addition, efforts to increase electronic filing will continue by adding 
new forms and schedules to the business electronic portfolio, leveraging 
partner organizations such as

[[Page 876]]

state taxing authorities, and increasing the use of volunteers to better 
serve taxpayer needs.

    Modernization Program: The Budget continues funding for the Business 
Systems Modernization program to give IRS employees the technology tools 
they need to continue to administer and improve both service and 
enforcement. The Budget increases funding in this program by $85 
million.

    Budget Structure: Congress established a new appropriations 
structure for the IRS (included in the continuing resolution and 
effective in 2007). The detailed tables that follow present the old 
budget structure for 2006, since the budget was executed in that 
structure, and the new structure for 2007 and 2008. The table below 
presents all three years in the new structure to allow comparisons 
across fiscal years.

         Three Year Comparable Summary by Appropriations Account

                          (Dollars in millions)

            Appropriation               2006         2007        2008
                                       Enacted     CR Rate     Request
Taxpayer Services.............         $2,142         $2,059          $2,103
Enforcement...................          4,708         $4,708          $4,925
Operations Support............          3,461         $3,459          $3,770
Business Systems Modernization            242           $197            $282
Health Insurance Tax Credit 
Administration................             20            $15             $15
Total Appropriated Resources..        $10,574        $10,438         $11,095
    2006 excludes rescissions of prior year balances.

                                

                              Federal Funds

                            Taxpayer Services

     For necessary expenses of the Internal Revenue Service to provide 
taxpayer services, including pre-filing taxpayer assistance and 
education, filing and account services, taxpayer advocacy services, and 
services as authorized by 5 U.S.C. 3109, at such rates as may be 
determined by the Commissioner, $2,103,089,000, of which up to 
$4,100,000 shall be for the Tax Counseling for the Elderly Program, and 
of which $8,000,000 shall be for low-income taxpayer clinic grants.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0912-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............          18          99           9
                                           ---------   ---------  ----------
01.99 Balance, start of year............          18          99           9
    Receipts:
02.20 New installment agreements, IRS 
        miscellaneous retained fees.....          65          85         101
02.21 Restructured installment 
        agreements, IRS miscellaneous 
        retained fees...................          14          19          21
02.22 General user fees, IRS 
        miscellaneous retained fees.....          15          44          46
02.60 Enrolled agent fee increase, IRS 
        miscellaneous retained fees.....           6           4           5
                                           ---------   ---------  ----------
02.99   Total receipts and collections..         100         152         173
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         118         251         182
    Appropriations:
05.00 Taxpayer services.................                    -168        -108
05.01 Operations support................         -19         -74         -72
                                           ---------   ---------  ----------
05.99   Total appropriations............         -19        -242        -180
                                           ---------   ---------  ----------
07.99 Balance, end of year..............          99           9           2
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0912-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Pre-filing taxpayer assistance and 
        education.......................         322         647         654
00.02 Filing and account services.......       1,677       1,580       1,557
00.03 Shared Service support............       1,465           9
00.04 General management and 
        administration..................         571
                                           ---------   ---------  ----------
01.00   Subtotal, direct programs.......       4,035       2,236       2,211
09.01 Reimbursable program..............          42          27          27
                                           ---------   ---------  ----------
10.00   Total new obligations...........       4,077       2,263       2,238
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          13          16           7
22.00 New budget authority (gross)......       4,057       2,254       2,238
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2
22.30 Expired unobligated balance 
        transfer to unexpired account...          31
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       4,103       2,270       2,245
23.95 Total new obligations.............      -4,077      -2,263      -2,238
23.98 Unobligated balance expiring or 
        withdrawn.......................         -10
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          16           7           7
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       4,137       2,059       2,103
40.35   Appropriation permanently 
          reduced.......................         -41
40.36   Unobligated balance permanently 
          reduced.......................         -20
41.00 Transferred to other accounts.....         -61
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       4,015       2,059       2,103
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).          41          27          27
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           1
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          42          27          27
      Mandatory:

60.20   Appropriation (special fund)....                     168         108
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       4,057       2,254       2,238
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         478         449         310
73.10 Total new obligations.............       4,077       2,263       2,238
73.20 Total outlays (gross).............      -4,037      -2,402      -2,239
73.40 Adjustments in expired accounts 
        (net)...........................         -66
73.45 Recoveries of prior year 
        obligations.....................          -2
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         449         310         309
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       3,727       1,920       1,961
86.93 Outlays from discretionary 
        balances........................         310         324         166
86.97 Outlays from new mandatory 
        authority.......................                     158         102
86.98 Outlays from mandatory balances...                                  10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       4,037       2,402       2,239
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -24         -23         -23
88.40     Non-Federal sources...........         -20          -4          -4
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -44         -27         -27
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -1
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       4,015       2,227       2,211
90.00 Outlays...........................       3,993       2,375       2,212
---------------------------------------------------------------------------

    This appropriation provides resources for taxpayer service programs, 
including forms and publications; processing of tax returns and related 
documents; filing and account services; taxpayer advocacy services; and 
assisting taxpayers to understand their tax obligations, correctly file 
their returns, and pay taxes due in a timely manner. 2006 numbers are 
presented as they were executed in the old IRS budget structure. They 
are not comparable to 2007 and 2008 numbers which are presented in the 
new structure.


[[Page 877]]



               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0912-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........       1,520       1,198       1,207
11.3      Other than full-time permanent         343         310         304
11.5      Other personnel compensation..         102          76          79
                                           ---------   ---------  ----------
11.9      Total personnel compensation..       1,965       1,584       1,590
12.1    Civilian personnel benefits.....         583         450         451
13.0    Benefits for former personnel...          43           3           9
21.0    Travel and transportation of 
          persons.......................          57          28          29
22.0    Transportation of things........          23           4           4
23.1    Rental payments to GSA..........         606
23.2    Rental payments to others.......           1
23.3    Communications, utilities, and 
          miscellaneous charges.........         166          15           5
24.0    Printing and reproduction.......          62           8           8
25.1    Advisory and assistance services          49           3           2
25.2    Other services..................          76          85          74
25.3    Other purchases of goods and 
          services from Government 
          accounts......................         141          11          11
25.4    Operation and maintenance of 
          facilities....................         134           4
25.6    Medical care....................          12
25.7    Operation and maintenance of 
          equipment.....................           1           9           1
25.8    Subsistence and support of 
          persons.......................                       1           1
26.0    Supplies and materials..........          13          11          12
31.0    Equipment.......................          52           3           1
32.0    Land and structures.............          38           5
41.0    Grants, subsidies, and 
          contributions.................          12          12          12
42.0    Insurance claims and indemnities           1
                                           ---------   ---------  ----------
99.0      Direct obligations............       4,035       2,236       2,210
99.0  Reimbursable obligations..........          42          27          27
99.5  Below reporting threshold.........                                   1
                                           ---------   ---------  ----------
99.9    Total new obligations...........       4,077       2,263       2,238
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0912-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................      36,404      30,561      30,160
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         997         331         339
---------------------------------------------------------------------------

                                

                               Enforcement

                      (including transfer of funds)

     For necessary expenses of the Internal Revenue Service to determine 
and collect owed taxes, to provide legal and litigation support, to 
conduct criminal investigations, to enforce criminal statutes related to 
violations of internal revenue laws and other financial crimes, to 
purchase (for police-type use, not to exceed 850) and hire of passenger 
motor vehicles (31 U.S.C. 1343(b)), and services as authorized by 5 
U.S.C. 3109, at such rates as may be determined by the Commissioner, 
$4,925,498,000, of which not less than $57,252,000 shall be for the 
Interagency Crime and Drug Enforcement program: Provided, That up to 
$10,000,000 may be transferred as necessary from this account to 
Internal Revenue Service, ``Operations Support'' solely for the purposes 
of the Interagency Crime and Drug Enforcement program: Provided further, 
That this transfer authority shall be in addition to any other transfer 
authority provided in this Act.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0913-0-1-999      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Compliance services...............       4,390
00.02 Research and statistics of income.          94
00.03 Earned income tax credit 
        compliance......................         167
00.04 Investigations....................                     584         603
00.05 Exam and Collections..............                   3,978       4,165
00.06 Regulatory........................                     150         157
                                           ---------   ---------  ----------
01.00   Subtotal, Direct program........       4,651       4,712       4,925
09.01 Reimbursable program..............          44          48          49
                                           ---------   ---------  ----------
10.00   Total new obligations...........       4,695       4,760       4,974
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           3           3
22.00 New budget authority (gross)......       4,712       4,760       4,974
22.30 Expired unobligated balance 
        transfer to unexpired account...          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       4,724       4,763       4,977
23.95 Total new obligations.............      -4,695      -4,760      -4,974
23.98 Unobligated balance expiring or 
        withdrawn.......................         -26
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           3           3           3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       4,726       4,708       4,925
40.35   Appropriation permanently 
          reduced.......................         -47
41.00   Transferred to other accounts...         -11
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       4,668       4,708       4,925
        Spending authority from 
            offsetting collections:
58.00     Offsetting collections (cash).          30          48          49
58.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          14
                                           ---------   ---------  ----------
58.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          44          48          49
      Mandatory:

62.00   Transferred from other accounts.                       4
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       4,712       4,760       4,974
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         305         316         319
73.10 Total new obligations.............       4,695       4,760       4,974
73.20 Total outlays (gross).............      -4,661      -4,757      -4,960
73.40 Adjustments in expired accounts 
        (net)...........................         -25
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -14
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          16
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         316         319         333
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       4,379       4,471       4,675
86.93 Outlays from discretionary 
        balances........................         282         283         285
86.97 Outlays from new mandatory 
        authority.......................                       3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       4,661       4,757       4,960
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -43         -46         -47
88.40     Non-Federal sources...........          -3          -2          -2
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................         -46         -48         -49
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -14
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          16
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       4,668       4,712       4,925
90.00 Outlays...........................       4,615       4,709       4,911
---------------------------------------------------------------------------

    This appropriation provides resources for the examination of tax 
returns, both domestic and international; the administrative and 
judicial settlement of taxpayer appeals of examination findings; 
technical rulings; monitoring employee pension plans; determining 
qualifications of organizations seeking tax-exempt status; examining tax 
returns of exempt organizations; enforcing statutes relating to 
detection and investigation of criminal violations of the internal 
revenue laws; identifying under reporting of tax obligations; securing 
unfiled tax returns; and collecting unpaid accounts. 2006 numbers are 
presented as they were executed in the old IRS budget structure. They 
are not comparable to 2007 and 2008 numbers which are presented in the 
new structure.


[[Page 878]]



               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0913-0-1-999      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........       3,101       3,215       3,382
11.3      Other than full-time permanent          84          94          97
11.5      Other personnel compensation..         140         137         146
11.8      Special personal services 
            payments....................          19          17          17
                                           ---------   ---------  ----------
11.9      Total personnel compensation..       3,344       3,463       3,642
12.1    Civilian personnel benefits.....         874         906         953
13.0    Benefits for former personnel...          23
21.0    Travel and transportation of 
          persons.......................         151         139         163
22.0    Transportation of things........           4           4           5
23.3    Communications, utilities, and 
          miscellaneous charges.........          54          45           7
24.0    Printing and reproduction.......           3           5           5
25.1    Advisory and assistance services          34          24          21
25.2    Other services..................          71          72          67
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          34          12          15
25.4    Operation and maintenance of 
          facilities....................                                   1
25.5    Research and development 
          contracts.....................           6           3           3
25.7    Operation and maintenance of 
          equipment.....................           7           4           4
25.8    Subsistence and support of 
          persons.......................                       3           3
26.0    Supplies and materials..........          25          24          25
31.0    Equipment.......................          15           4           6
42.0    Insurance claims and indemnities           2
91.0    Unvouchered.....................           4           4           4
                                           ---------   ---------  ----------
99.0      Direct obligations............       4,651       4,712       4,924
99.0  Reimbursable obligations..........          44          47          48
99.5  Below reporting threshold.........                       1           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........       4,695       4,760       4,974
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0913-0-1-999      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................      48,501      47,885      48,667
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         122         191         194
---------------------------------------------------------------------------

                                

                Health Insurance Tax Credit Administration

     For expenses necessary to implement the health insurance tax credit 
included in the Trade Act of 2002 (Public Law 107-210), $15,235,000.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0928-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Health Coverage Tax Credit........          20          15          15
                                           ---------   ---------  ----------
10.00   Total new obligations...........          20          15          15
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          11          15          15
22.30 Expired unobligated balance 
        transfer to unexpired account...           9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          20          15          15
23.95 Total new obligations.............         -20         -15         -15
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          20          15          15
40.36   Unobligated balance permanently 
          reduced.......................          -9
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          11          15          15
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          18          19          20
73.10 Total new obligations.............          20          15          15
73.20 Total outlays (gross).............         -19         -14         -15
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          19          20          20
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2          11          11
86.93 Outlays from discretionary 
        balances........................          17           3           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          19          14          15
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          11          15          15
90.00 Outlays...........................          19          14          15
---------------------------------------------------------------------------

    This appropriation provides operating resources to administer the 
advance payment feature of the Trade Adjustment Assistance health 
insurance tax credit program, which assists dislocated workers with 
their health insurance premiums. The tax credit program was enacted by 
the Trade Act of 2002 (P.L. 107-210) and became effective in August of 
2003.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0928-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
11.1  Personnel compensation: Full-time 
        permanent.......................           1           2           2
24.0  Printing and reproduction.........           1
25.2  Other services....................          18          12          12
                                           ---------   ---------  ----------
99.0    Direct obligations..............          20          14          14
99.5  Below reporting threshold.........                       1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          20          15          15
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0928-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................          10          17          17
---------------------------------------------------------------------------

                                

                            Operations Support

     For necessary expenses of the Internal Revenue Service to support 
taxpayer services and enforcement programs, including rent payments; 
facilities services; printing; postage; physical security; headquarters 
and other IRS-wide administration activities; research and statistics of 
income; telecommunications; information technology development, 
enhancement, operations, maintenance, and security; the hire of 
passenger motor vehicles (31 U.S.C. 1343(b)); and services as authorized 
by 5 U.S.C. 3109, at such rates as may be determined by the 
Commissioner; $3,769,587,000 of which $75,000,000 shall remain available 
until September 30, 2009, for information technology support; of which 
not to exceed $1,000,000 shall remain available until September 30, 
2010, for research; of which not to exceed $1,600,000 shall be for the 
Internal Revenue Service Oversight Board; and of which not to exceed 
$25,000 shall be for official reception and representation.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0919-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Information systems improvement 
        programs........................          49
00.02 Information sevices...............       1,636       1,519       1,701
00.03 Shared Services and Support.......                   1,141       1,233
00.04 Infrastructure....................                     873         908
                                           ---------   ---------  ----------
01.00   Subtotal, direct programs.......       1,685       3,533       3,842
09.01 Reimbursable program..............           4          51          57
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,689       3,584       3,899
----------------------------------------------------------------------------

[[Page 879]]



    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          38          28          28
22.00 New budget authority (gross)......       1,678       3,584       3,899
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
22.30 Expired unobligated balance 
        transfer to unexpired account...           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,723       3,612       3,927
23.95 Total new obligations.............      -1,689      -3,584      -3,899
23.98 Unobligated balance expiring or 
        withdrawn.......................          -6
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........          28          28          28
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,599       3,459       3,770
40.35   Appropriation permanently 
          reduced.......................         -16
42.00   Transferred from other accounts.          72
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,655       3,459       3,770
58.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           4          51          57
      Mandatory:

60.20   Appropriation (special fund)....          19          74          72
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,678       3,584       3,899
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         533         572         877
73.10 Total new obligations.............       1,689       3,584       3,899
73.20 Total outlays (gross).............      -1,637      -3,279      -3,819
73.40 Adjustments in expired accounts 
        (net)...........................         -10
73.45 Recoveries of prior year 
        obligations.....................          -4
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         572         877         957
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,181       3,020       3,294
86.93 Outlays from discretionary 
        balances........................         437         200         452
86.97 Outlays from new mandatory 
        authority.......................          15          59          58
86.98 Outlays from mandatory balances...           4                      15
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,637       3,279       3,819
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -5         -38         -43
88.40     Non-Federal sources...........          -4         -13         -14
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................          -9         -51         -57
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       1,674       3,533       3,842
90.00 Outlays...........................       1,628       3,228       3,762
---------------------------------------------------------------------------

    This appropriation provides resources for support functions that are 
considered overhead but are essential to the successful operation of IRS 
programs. These functions include: overall planning and direction of the 
IRS; shared service support related to facilities maintenance, rent 
payments, printing, postage and security; resources for headquarters 
management activities such as IRS-wide strategic planning, 
communications and liaison, finance, human resources, Equal Employment 
Opportunity and diversity; research and statistics of income; and 
necessary expenses for telecommunication support and the development and 
maintenance of IRS operational information systems. 2006 numbers are 
presented as they were executed in the old IRS budget structure. They 
are not comparable to 2007 and 2008 numbers which are presented in the 
new structure.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0919-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         542         971       1,002
11.3      Other than full-time permanent           6          11          11
11.5      Other personnel compensation..          19          31          35
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         567       1,013       1,048
12.1    Civilian personnel benefits.....         131         303         314
13.0    Benefits for former personnel...           1          51          53
21.0    Travel and transportation of 
          persons.......................          15          33          34
22.0    Transportation of things........                      19          20
23.1    Rental payments to GSA..........                     640         666
23.3    Communications, utilities, and 
          miscellaneous charges.........         173         319         368
24.0    Printing and reproduction.......           1          53          54
25.1    Advisory and assistance services          56          30          36
25.2    Other services..................         352         409         447
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          21          60          62
25.4    Operation and maintenance of 
          facilities....................                     179         182
25.5    Research and development 
          contracts.....................                       4           5
25.6    Medical care....................                      10          10
25.7    Operation and maintenance of 
          equipment.....................          74          60          67
26.0    Supplies and materials..........          23          21          23
31.0    Equipment.......................         270         270         392
32.0    Land and structures.............           1          58          59
42.0    Insurance claims and indemnities                       1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,685       3,533       3,841
99.0  Reimbursable obligations..........           4          51          57
99.5  Below reporting threshold.........                                   1
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,689       3,584       3,899
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0919-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................       6,802      12,942      12,957
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................          10         160         163
---------------------------------------------------------------------------

                                

                      Business Systems Modernization

     For necessary expenses of the Internal Revenue Service's business 
systems modernization program, $282,090,000, to remain available until 
September 30, 2010, for the capital asset acquisition of information 
technology systems, including management and related contractual costs 
of said acquisitions, including related Internal Revenue Service labor 
costs, and contractual costs associated with operations authorized by 5 
U.S.C. 3109: Provided, That, with the exception of labor costs, none of 
these funds may be obligated until the Internal Revenue Service submits 
to the Committees on Appropriations, a plan for expenditure that: (1) 
meets the capital planning and investment control review requirements 
established by the Office of Management and Budget, including Circular 
A-11; (2) complies with the Internal Revenue Service's enterprise 
architecture, including the modernization blueprint; (3) conforms with 
the Internal Revenue Service's enterprise life cycle methodology; (4) is 
approved by the Internal Revenue Service, the Department of the 
Treasury, and the Office of Management and Budget; (5) has been reviewed 
by the Government Accountability Office; and (6) complies with the 
acquisition rules, requirements, guidelines, and systems acquisition 
management practices of the Federal Government.

    Note.--A regular 2007 appropriation for this account had not been 
enacted at the time the budget was prepared; therefore, this account is 
operating under a continuing resolution (P.L. 109-289, Division B, as 
amended). The amounts included for 2007 in this budget reflect the 
levels provided by the continuing resolution.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0921-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Business Systems Modernization....         215         201         242
                                           ---------   ---------  ----------
10.00   Total new obligations...........         215         201         242
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         116         101          97
22.00 New budget authority (gross)......         197         197         282
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
                                           ---------   ---------  ----------

[[Page 880]]


23.90   Total budgetary resources 
          available for obligation......         317         298         379
23.95 Total new obligations.............        -215        -201        -242
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         101          97         137
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         199         197         282
40.35   Appropriation permanently 
          reduced.......................          -2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         197         197         282
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..         172         158         201
73.10 Total new obligations.............         215         201         242
73.20 Total outlays (gross).............        -225        -158        -222
73.45 Recoveries of prior year 
        obligations.....................          -4
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         158         201         221
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          49          79         113
86.93 Outlays from discretionary 
        balances........................         176          79         109
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         225         158         222
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         197         197         282
90.00 Outlays...........................         225         158         222
---------------------------------------------------------------------------

    This appropriation provides resources for revamping IRS business 
practices and acquiring new technology. The IRS uses a formal 
methodology to evaluate, prioritize, approve, and fund its portfolio of 
business systems modernization investments. This methodology provides a 
documented, repeatable, and measurable process for managing investments 
throughout their life cycle. The process is reviewed by the Government 
Accountability Office on a regular basis as part of the submission 
requirements for expenditure plans submitted to the House and Senate 
Committees on Appropriations.

    In 2008, the IRS' business systems modernization efforts will 
continue to focus on key tax administration systems that provide 
additional benefits to taxpayers and IRS employees: the Customer Account 
Data Engine (CADE) project; Accounts Management Services (AMS); and 
Modernized e-File. The Budget also invests in the infrastructure such as 
user portals which support these modernized systems. Expansion of CADE 
will allow IRS to process 50 million returns on modernized systems. AMS 
will create an interface to allow IRS employees to manage more complex 
returns in CADE and will improve productivity for service and 
enforcement employees. Finally, Modernized e-File will begin to bring 
1040 returns into the new electronic filing platform.

    2006 numbers are presented as they were executed in the old IRS 
budget structure. They are not comparable to 2007 and 2008 numbers which 
are presented in the new structure.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0921-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct obligations:
      Personnel compensation:

11.1    Full-time permanent.............                      21          35
11.5    Other personnel compensation....                       1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..                      22          36
12.1  Civilian personnel benefits.......                       7          10
25.2  Other services....................         192         149         168
25.7  Operation and maintenance of 
        equipment.......................           7           5           9
31.0  Equipment.........................          16          17          19
                                           ---------   ---------  ----------
99.0    Direct obligations..............         215         200         242
99.5  Below reporting threshold.........                       1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         215         201         242
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-0921-0-1-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................                     317         317
---------------------------------------------------------------------------

                                

      Payment Where Earned Income Credit Exceeds Liability for Tax 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0906-0-1-609      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........      36,166      36,461      37,573
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................      36,166      36,461      37,573
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      36,166      36,461      37,573
23.95 Total new obligations.............     -36,166     -36,461     -37,573
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................      36,166      36,461      37,573
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............      36,166      36,461      37,573
73.20 Total outlays (gross).............     -36,166     -36,461     -37,573
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................      36,166      36,461      37,573
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      36,166      36,461      37,573
90.00 Outlays...........................      36,166      36,461      37,573
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2006 actual  2007 est.   2008 est.
Enacted/requested:
  Budget Authority............         36,166         36,461          37,573
  Outlays.....................         36,166         36,461          37,573
Legislative proposal, subject to 
    PAYGO:
  Budget Authority............                                          -337
  Outlays.....................                                          -337

Total:
  Budget Authority............         36,166         36,461          37,236
  Outlays.....................         36,166         36,461          37,236

    As provided by law, there are instances wherein the earned income 
tax credit (EITC) exceeds the amount of tax liability owed through the 
individual income tax system, resulting in an additional payment to the 
tax filer. The EITC was originally authorized by the Tax Reduction Act 
of 1975 (Public Law 94-12) and made permanent by the Revenue Adjustment 
Act of 1978 (Public Law 95-600). The Tax Reform Act of 1986 and the 
Omnibus Budget Reconciliation Acts of 1990 and 1993 increased the credit 
amount and expanded the eligibility for the EITC.

    The Budget proposes to permanently extend the EITC provisions in the 
Economic Growth and Tax Relief Reconciliation Act of 2001, which sunset 
on December 31, 2010. These provisions reduce EITC-related marriage 
penalties, simplify certain eligibility criteria for the credit, and 
allow the IRS to use more cost-efficient procedures to deny questionable 
EITC claims. The Budget also proposes to clarify the definition of 
qualifying child for child-related tax benefits, including the EITC and 
the child tax credit. In addition, the Budget proposes to simplify 
requirements regarding filing status, pres

[[Page 881]]

ence of children, and immigration status for EITC eligibility. Finally, 
the Budget proposes to extend through 2007 a provision, which would 
otherwise expire on December 31, 2006, allowing military personnel to 
elect to include combat pay in earned income for purposes of computing 
the EITC.

       Payment Where Earned Income Credit Exceeds Liability for Tax

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0906-4-1-609      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........                                -337
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                -337
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                -337
23.95 Total new obligations.............                                 337
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                                -337
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                -337
73.20 Total outlays (gross).............                                 337
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                -337
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                -337
90.00 Outlays...........................                                -337
---------------------------------------------------------------------------


                                

           Payment Where Child Credit Exceeds Liability for Tax

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0922-0-1-609      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........      15,473      14,931      14,367
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................      15,473      14,931      14,367
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      15,473      14,931      14,367
23.95 Total new obligations.............     -15,473     -14,931     -14,367
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................      15,473      14,931      14,367
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............      15,473      14,931      14,367
73.20 Total outlays (gross).............     -15,473     -14,931     -14,367
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................      15,473      14,931      14,367
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      15,473      14,931      14,367
90.00 Outlays...........................      15,473      14,931      14,367
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2006 actual  2007 est.   2008 est.
Enacted/requested:
  Budget Authority............         15,473         14,931          14,367
  Outlays.....................         15,473         14,931          14,367
Legislative proposal, subject to 
    PAYGO:
  Budget Authority............                                           -55
  Outlays.....................                                           -55

Total:
  Budget Authority............         15,473         14,931          14,312
  Outlays.....................         15,473         14,931          14,312

    As provided by law, there are instances wherein the child credit 
exceeds the amount of tax liability owed through the individual income 
tax system, resulting in an additional payment to the tax filer. The 
child credit was originally authorized by the Taxpayer Relief Act of 
1997 (Public Law 105-34).

    The Budget proposes to accelerate and permanently extend the child 
tax credit provisions in the Economic Growth and Tax Relief 
Reconciliation Act of 2001, which sunset on December 31, 2010. The 
Budget also proposes to clarify the definition of qualifying child for 
child-related tax benefits, including the EITC and the child tax credit. 
In addition, the Budget proposes to simplify eligibility and computation 
of the additional child tax credit.

           Payment Where Child Credit Exceeds Liability for Tax

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0922-4-1-609      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........                                 -55
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                 -55
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 -55
23.95 Total new obligations.............                                  55
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                                 -55
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                 -55
73.20 Total outlays (gross).............                                  55
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                 -55
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 -55
90.00 Outlays...........................                                 -55
---------------------------------------------------------------------------


                                

        Payment Where Health Care Credit Exceeds Liability for Tax

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0923-0-1-551      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........          94         102         110
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          94         102         110
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          94         102         110
23.95 Total new obligations.............         -94        -102        -110
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................          94         102         110
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............          94         102         110
73.20 Total outlays (gross).............         -94        -102        -110
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          94         102         110
----------------------------------------------------------------------------

[[Page 882]]



    Net budget authority and outlays:
89.00 Budget authority..................          94         102         110
90.00 Outlays...........................          94         102         110
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2006 actual  2007 est.   2008 est.
Enacted/requested:
  Budget Authority............             94            102             110
  Outlays.....................             94            102             110
Legislative proposal, subject to 
    PAYGO:
  Budget Authority............                                             4
  Outlays.....................                                             4

Total:
  Budget Authority............             94            102             114
  Outlays.....................             94            102             114

    The Trade Act of 2002 established the Health Coverage Tax Credit 
(HCTC), an advanceable, refundable tax credit for 65 percent of the cost 
of qualified insurance. This credit is available to certain recipients 
of trade adjustment assistance (TAA) and Pension Benefit Guaranty 
Corporation pension beneficiaries who are aged 55-64.

    This schedule reflects the effects of HCTC and other Administration 
health-related tax proposals in cases where the credit exceeds the tax 
liability resulting in payment to the tax filer.

       Payment Where Health Care Credit Exceeds Liability for Tax

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0923-4-1-551      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Provide refundable credit for the 
        purchase of high-deductible 
        health insurance................                                   4
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                   4
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                   4
23.95 Total new obligations.............                                  -4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                                   4
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                   4
73.20 Total outlays (gross).............                                  -4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                   4
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                   4
90.00 Outlays...........................                                   4
---------------------------------------------------------------------------


                                

 Payment Where Alternative Minimum Tax Credit Exceeds Liability for Tax 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0929-0-1-609      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........                                 349
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                 349
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 349
23.95 Total new obligations.............                                -349
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                                 349
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                 349
73.20 Total outlays (gross).............                                -349
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                 349
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 349
90.00 Outlays...........................                                 349
---------------------------------------------------------------------------

    The Tax Relief and Health Care Act of 2006 (P.L. 109-432) allows 
certain taxpayers to claim a refundable credit for 20 percent of their 
unused long-term alternative minimum tax (AMT) credits (up to $5,000) 
per year. The refundable credit phases out for high-income taxpayers; 
the phase-out is based on the personal exemption phase-out. The 
refundable AMT credits can generally only be claimed for tax years 2007-
2012.

                                

            Refunding Internal Revenue Collections, Interest 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0904-0-1-908      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Direct program activity...........       4,172       4,580       4,124
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................       4,172       4,580       4,124
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       4,172       4,580       4,124
23.95 Total new obligations.............      -4,172      -4,580      -4,124
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       4,172       4,580       4,124
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............       4,172       4,580       4,124
73.20 Total outlays (gross).............      -4,172      -4,580      -4,124
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       4,172       4,580       4,124
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       4,172       4,580       4,124
90.00 Outlays...........................       4,172       4,580       4,124
---------------------------------------------------------------------------

    Under certain circumstances, as provided in 26 U.S.C. 6611, interest 
is paid on Internal Revenue collections that must be refunded. The Tax 
Equity and Fiscal Responsibility Act of 1982 (Public Law 97-248) 
provides for daily compounding of interest. Under the Tax Reform Act of 
1986 (Public Law 99-514), interest paid on Internal Revenue collections 
will equal the Federal short-term rate plus two percentage points, such 
rate to be adjusted quarterly.


[[Page 883]]



                                

       Gifts to the United States for Reduction of the Public Debt

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5080-0-2-808      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
                                           ---------   ---------  ----------
01.99 Balance, start of year............
    Receipts:
02.60 Gifts to the United States for 
        reduction of the public debt....           2           1           1
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           2           1           1
    Appropriations:
05.00 Gifts to the United States for 
        reduction of the public debt....          -2          -1          -1
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5080-0-2-808      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....           2           1           1
60.47   Portion applied to repay debt...          -2          -1          -1
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    31 U.S.C. 3113 authorizes the Secretary of the Treasury to accept 
conditional gifts to the United States for the purpose of reducing the 
public debt.

                                

                     Private Collection Agent Program

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5510-0-2-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............                                  24
                                           ---------   ---------  ----------
01.99 Balance, start of year............                                  24
    Receipts:
02.60 Private collection agent program..                      46          88
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...                      46         112
    Appropriations:
05.00 Private collection agent program..                     -22         -42
                                           ---------   ---------  ----------
07.99 Balance, end of year..............                      24          70
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5510-0-2-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Collection Enforcement Activities.                      11          21
00.02 Payments to Private Collection 
        Agencies........................                      11          21
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................                      22          42
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                      22          42
23.95 Total new obligations.............                     -22         -42
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....                      22          42
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                      22          42
73.20 Total outlays (gross).............                     -22         -42
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                      22          42
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                      22          42
90.00 Outlays...........................                      22          42
---------------------------------------------------------------------------

    The American Jobs Creation Act of 2004 (Public Law 108-357) allows 
the IRS to use private collection contractors to supplement its own 
collection staff's efforts to ensure that all taxpayers pay what they 
owe. The legislation ensures contractors respect taxpayer rights. The 
statute further authorizes the Secretary of the Treasury to retain and 
use an amount not in excess of 25 percent of the amount collected under 
any qualified tax collection contract for payments to private collection 
agents, and an amount not in excess of 25 percent of the amount 
collected for collection enforcement activities of the IRS. The schedule 
above shows this spending. The Department of the Treasury estimates 
these contractors will collect $1.4 billion in delinquent taxes over the 
next ten years.

                                

                            Informant Payments

          Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5433-0-2-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
                                           ---------   ---------  ----------
01.99 Balance, start of year............
    Receipts:
02.40 Underpayment and fraud collection.          25          12          12
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          25          12          12
    Appropriations:
05.00 Informant payments................         -25         -12         -12
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-5433-0-2-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Informant Payments................          25          12          12
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 91.0)...................          25          12          12
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          25          12          12
23.95 Total new obligations.............         -25         -12         -12
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....          25          12          12
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............          25          12          12
73.20 Total outlays (gross).............         -25         -12         -12
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          25          12          12
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          25          12          12
90.00 Outlays...........................          25          12          12
---------------------------------------------------------------------------

    As provided by law (26 U.S.C. 7623), the Secretary of the Treasury 
may make payments to individuals resulting from information given that 
leads to the collection of Internal Revenue taxes. The Taxpayer Bill of 
Rights of 1996 (Public Law 104-168) provides for payments of such sums 
to individuals from the proceeds of amounts (other than interest) 
collected by reason of the information provided, and any amount 
collected shall be available for such payments. This information must 
lead to the detection of underpayments of taxes, or detection and 
bringing to trial and punishment persons guilty of violating the 
internal revenue laws (in cases where such expenses are not otherwise 
provided for by law). This provi

[[Page 884]]

sion was further amended by the Tax Relief and Health Care Act of 2006 
(P.L. 109-432) to encourage use of the program. The amendments generally 
set a reward payment range of between 15 and 30 percent of the collected 
proceeds for cases involving high income non-compliant taxpayers. They 
allow for lower payments where information is provided that was already 
available from another source.

                                

                     Federal Tax Lien Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4413-0-3-803      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Reimbursable program..............          11           6           6
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 32.0)...................          11           6           6
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           5           2           2
22.00 New budget authority (gross)......           8           6           6
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          13           8           8
23.95 Total new obligations.............         -11          -6          -6
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........           2           2           2
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           8           6           6
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           3           3
73.10 Total new obligations.............          11           6           6
73.20 Total outlays (gross).............         -10          -6          -6
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..           3           3           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           8           2           2
86.98 Outlays from mandatory balances...           2           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          10           6           6
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -8          -6          -6
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           2
---------------------------------------------------------------------------

    This revolving fund was established pursuant to section 112(a) of 
the Federal Tax Lien Act of 1966, to serve as the source of financing 
the redemption of real property by the United States. During the process 
of collecting unpaid taxes, the government places a tax lien on real 
estate in order to protect the government's interest. Situations arise 
where property of this nature is collateral for other indebtedness and 
the tax lien is subordinate to the original indebtedness. In this 
circumstance, it is often in the government's interest to purchase the 
property during the foreclosure sale. The advantage arises when the 
property is worth substantially more than the first lien-holder's equity 
but is being sold for an amount that barely covers that equity, thereby 
leaving no proceeds to apply against delinquent taxes. Under these 
circumstances, if the government buys the property and subsequently puts 
it up for sale under more advantageous conditions, it is possible to 
realize sufficient profit on the transaction to fully or partially 
collect the amount of taxes due. The revolving fund is reimbursed from 
the proceeds of the sale in an amount equal to the amount expended from 
the fund for the redemption. The balance of the proceeds is applied 
against the amount of the tax, interest, penalties, and additions 
thereto, and for the costs of sale. The remainder, if any, would revert 
to the parties legally entitled to it.

                                

                        Administrative Provisions

                      (including transfer of funds)

    Sec. 201.  Not to exceed 5 percent of any appropriation made 
available in this Act to the Internal Revenue Service or not to exceed 3 
percent of appropriations under the heading ``Enforcement'' may be 
transferred to any other Internal Revenue Service appropriation upon the 
advance notification of the Committees on Appropriations.
    Sec. 202.  The Internal Revenue Service shall maintain a training 
program to ensure that Internal Revenue Service employees are trained in 
taxpayers' rights, in dealing courteously with taxpayers, and in cross-
cultural relations.
    Sec. 203.  The Internal Revenue Service shall institute and enforce 
policies and procedures that will safeguard the confidentiality of 
taxpayer information.
    Sec. 204.  Of the funds made available by this Act to the Internal 
Revenue Service, not less than $6,787,950,000 shall be available only 
for tax enforcement and related support activities funded in Internal 
Revenue Service, ``Enforcement'' and ``Operations Support.'' In 
addition, of the funds made available by this Act to the Internal 
Revenue Service, and subject to the same terms and conditions, an 
additional $440,264,000 shall be available for tax enforcement and 
related support activities.
    Sec. 205. Section 9503(a) of title 5, United States Code, is amended 
by striking the clause ``for a period of 10 years after the date of 
enactment of this section'' and replacing it with ``before July 23, 
2013''.
    Sec. 206. Sections 9504(a) and (b), and 9505(a) of title 5, United 
States Code, are amended by striking the clause ``For a period of 10 
years after the date of enactment'' each place it occurs, and replacing 
it with ``Before July 23, 2013''.
    Sec. 207. Section 9502(a) of title 5, United States Code, is further 
amended by striking ``Office of Management and Budget'' and replacing it 
with ``Office of Personnel Management''.

                                



    As directed by the Internal Revenue Service Restructuring and Reform 
Act of 1998 (section 7802(d) 26 U.S.C.), the Internal Revenue Service 
Oversight Board shall annually review and approve a budget request for 
the Internal Revenue Service. The Oversight Board's approved request 
shall be submitted to the President by the Secretary without revision, 
and the President shall submit the request, without revision, to 
Congress together with the President's Budget request for the Internal 
Revenue Service. The 2008 Oversight Board budget recommendation for the 
Internal Revenue Service is $11,641 million.

                                


 
                       COMPTROLLER OF THE CURRENCY

  

                               Trust Funds

                             Assessment Funds

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8413-0-8-373      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.00 Bank supervision..................         557         671         706
                                           ---------   ---------  ----------
10.00   Total new obligations...........         557         671         706
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         507         598         614
22.00 New budget authority (gross)......         648         687         731
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,155       1,285       1,345
23.95 Total new obligations.............        -557        -671        -706
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         598         614         639
----------------------------------------------------------------------------

[[Page 885]]



    New budget authority (gross), detail:
      Mandatory:

        Spending authority from 
            offsetting collections:
69.00     Offsetting collections (cash).         649         687         731
69.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          -1
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         648         687         731
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          94         114         129
73.10 Total new obligations.............         557         671         706
73.20 Total outlays (gross).............        -538        -656        -690
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           1
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..         114         129         145
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         473         577         607
86.98 Outlays from mandatory balances...          65          79          83
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         538         656         690
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.20     Interest on Federal securities         -23         -25         -27
88.40     Non-Federal sources: 
            Assessments.................        -626        -662        -704
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................        -649        -687        -731
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -111         -31         -41
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...         600         705         736
92.02 Annual Measure:...................         705         736         777
---------------------------------------------------------------------------

    The Office of the Comptroller of the Currency (OCC) was created for 
the purpose of establishing and regulating a national banking system. 
The National Currency Act of 1863 (12 U.S.C. 1 et seq., 12 Stat. 665), 
rewritten and reenacted as the National Bank Act of 1864, provided for 
the chartering and supervising functions of OCC. The income of the 
bureau is derived principally from assessments paid by national banks 
and interest on investments in U.S. Government securities. OCC receives 
no appropriated funds from Congress.

    OCC charters new banking institutions only after investigation and 
due consideration of charter applications. Supervision of existing 
national banks is aided by the required submission of periodic reports 
and detailed onsite examinations, which are conducted by a staff of 
approximately 2,000 national bank examiners. At present, OCC supervises 
more than 1,830 institutions with national charters and 49 Federal 
branches with total assets of nearly $6.5 trillion.

    In addition, OCC considers applications for mergers in which the 
resulting bank will be a national bank and applications from banks to 
establish branches. OCC also promulgates rules and regulations for the 
guidance of national banks and bank directors.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-8413-0-8-373      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
      Personnel compensation:

11.1    Full-time permanent.............         275         321         343
11.3    Other than full-time permanent..           7           8           9
11.5    Other personnel compensation....           1           2           2
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         283         331         354
12.1  Civilian personnel benefits.......          95         106         115
21.0  Travel and transportation of 
        persons.........................          36          42          46
22.0  Transportation of things..........           2           3           2
23.1  Rental payments to GSA............                       2           3
23.2  Rental payments to others.........          24          29          30
23.3  Communications, utilities, and 
        miscellaneous charges...........           9          13          13
24.0  Printing and reproduction.........           1           1           1
25.2  Other services....................          70         106         102
26.0  Supplies and materials............           5           6           6
31.0  Equipment.........................          27          14          15
32.0  Land and structures...............           4          18          19
42.0  Insurance claims and indemnities..           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         557         671         706
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-8413-0-8-373      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................       2,812       2,977       3,041
---------------------------------------------------------------------------

                                


 
                      OFFICE OF THRIFT SUPERVISION

                              Federal Funds

                      Office of Thrift Supervision 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4108-0-3-373      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
09.01 Office of Thrift Supervision......         201         232         238
                                           ---------   ---------  ----------
10.00   Total new obligations...........         201         232         238
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         195         239         256
22.00 New budget authority (gross)......         242         246         256
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           3           3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         440         488         515
23.95 Total new obligations.............        -201        -232        -238
                                           ---------   ---------  ----------
24.40   Unobligated balance carried 
          forward, end of year..........         239         256         277
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

69.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         242         246         256
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          39          39          22
73.10 Total new obligations.............         201         232         238
73.20 Total outlays (gross).............        -198        -246        -256
73.45 Recoveries of prior year 
        obligations.....................          -3          -3          -3
                                           ---------   ---------  ----------
74.40   Obligated balance, end of year..          39          22           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         198         246         256
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -5          -5          -5
88.20     Interest on Federal securities          -9          -9          -9
88.40     Non-Federal sources...........          -7          -8          -8
88.45     Offsetting governmental 
            collections (from non-
            Federal sources)............        -221        -224        -234
                                           ---------   ---------  ----------
88.90     Total, offsetting collections 
            (cash)......................        -242        -246        -256
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -44
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...         234         280         280
92.02 Total investments, end of year: 
        Federal securities: Par value...         280         280         280
---------------------------------------------------------------------------



[[Page 886]]



    The Office of Thrift Supervision (OTS) was established by Congress 
as a bureau of the Department of the Treasury as part of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1811 note). OTS assumed the regulatory functions of the Federal Home 
Loan Bank Board dissolved by the same act.

    OTS charters, examines, supervises, and regulates federal savings 
associations insured by the Federal Deposit Insurance Corporation 
(FDIC). OTS also examines, supervises, and regulates state-chartered, 
FDIC-insured savings associations and provides for the registration, 
examination, and regulation of savings association affiliates and 
holding companies. OTS sets capital standards for Federal and State 
savings associations and reviews applications of state-chartered thrifts 
for conversion to federal thrifts.

    OTS receives no appropriated funds from Congress. Income of the 
bureau is derived principally from assessments on thrifts and holding 
companies, examination fees, and interest on investments in U.S. 
Government obligations. As of September 30, 2006, OTS oversees 853 
thrifts with total assets of $1.6 trillion; OTS also supervises 481 
holding company enterprises with approximately $7.7 trillion in 
consolidated assets.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-4108-0-3-373      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable obligations:
      Personnel compensation:

11.1    Full-time permanent.............         106         115         118
11.5    Other personnel compensation....           1           2           2
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         107         117         120
12.1  Civilian personnel benefits.......          57          67          69
21.0  Travel and transportation of 
        persons.........................          13          14          14
23.2  Rental payments to others.........           4           5           5
23.3  Communications, utilities, and 
        miscellaneous charges...........           3           3           3
25.1  Advisory and assistance services..           4           2           2
25.2  Other services....................           1           6           6
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           4           4           4
25.4  Operation and maintenance of 
        facilities......................           3           5           6
26.0  Supplies and materials............           1           2           2
31.0  Equipment.........................           3           6           6
32.0  Land and structures...............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         201         232         238
---------------------------------------------------------------------------

                             Employment Summary

----------------------------------------------------------------------------
Identification code 20-4108-0-3-373      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         918       1,046       1,046
---------------------------------------------------------------------------

                                


 
                       INTEREST ON THE PUBLIC DEBT

                              Federal Funds

              Interest on Treasury Debt Securities (Gross) 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0550-0-1-901      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Interest on Treasury Securities...     405,872     433,004     469,802
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................     405,872     433,004     469,802
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......     405,872     433,004     469,802
23.95 Total new obligations.............    -405,872    -433,004    -469,802
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................     405,872     433,004     469,802
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............     405,872     433,004     469,802
73.20 Total outlays (gross).............    -405,872    -433,004    -469,802
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................     405,872     433,004     469,802
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................     405,872     433,004     469,802
90.00 Outlays...........................     405,872     433,004     469,802
---------------------------------------------------------------------------

    Such amounts are appropriated as may be necessary to pay the 
interest each year on the public debt (31 U.S.C. 1305, 3123). Interest 
on Government account series securities is generally computed on a cash 
basis. Interest is generally computed on an accrual basis on all other 
types of securities.

              Interest on Treasury Debt Securities (Gross)

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 20-0550-2-1-901      2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
    Obligations by program activity:
00.01 Interest on Treasury Securities...                                 117
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................                                 117
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                 117
23.95 Total new obligations.............                                -117
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                                 117
----------------------------------------------------------------------------

    Change in obligated balances:
73.10 Total new obligations.............                                 117
73.20 Total outlays (gross).............                                -117
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                                 117
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                 117
90.00 Outlays...........................                                 117
---------------------------------------------------------------------------


                                



 
                     GENERAL FUND RECEIPT ACCOUNTS 

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2006 actual   2007 est.   2008 est.
----------------------------------------------------------------------------
Governmental receipts:
  10-086400  Filing fees, P.L. 109-171, 
    Title X: Enacted/requested..........          21          76          77
  20-015800  Transportation fuels tax: 
    Enacted/requested...................      -2,386      -2,960      -3,459
Legislative proposal, not subject to 
 PAYGO..................................                                 -74
  20-040110  Proceeds from exercise of 
    warrants, Air Transportation 
    Stabilization Board: Enacted/
    requested...........................         118
  20-065000  Deposit of earnings, 
    Federal Reserve System: Enacted/
    requested...........................      29,945      32,638      36,115
  20-085000  Registration, filing, and 
    transaction fees: Enacted/requested.           4
  20-086100  Charges for expenses, 
    settlement of international claims: 
    Enacted/requested...................                       1           1
  20-086900  Fees for legal and judicial 
    services, not otherwise classified: 
    Enacted/requested...................          59          74          74
  20-089100  Miscellaneous fees for 
    regulatory and judicial services, 
    not otherwise classified: Enacted/
    requested...........................           7           8           8
  20-101000  Fines, penalties, and 
    forfeitures, agricultural laws: 
    Enacted/requested...................           2           1           1
  20-102000  Fines, penalties, and 
    forfeitures, economic stabilization 
    laws: Enacted/requested.............                       9           9
  20-103000  Fines, penalties, and 
    forfeitures, immigration and labor 
    laws: Enacted/requested.............          92          71          71
  20-104000  Fines, penalties, and 
    forfeitures, customs, commerce, and 
    antitrust laws: Enacted/requested...         119         118         118

[[Page 887]]

  20-105000  Fines, penalties, and 
    forfeitures, narcotic prohibition 
    and alcohol laws: Enacted/requested.           6           4           4
  20-106000  Forfeitures of unclaimed 
    money and property: Enacted/
    requested...........................           9          25          25
  20-108000  Fines, penalties, and 
    forfeitures, Federal coal mine 
    health and safety laws: Enacted/
    requested...........................          24          19          19
  20-129900  Gifts to the United States, 
    not otherwise classified: Enacted/
    requested...........................          35           1           1
  20-241100  User fees for IRS: Enacted/
    requested...........................          39          40          40
  20-309200  Recovery from highway trust 
    fund for refunds of taxes: Enacted/
    requested...........................         904       1,141       1,155
  20-309400  Recovery from airport and 
    airway trust fund for refunds of 
    taxes: Enacted/requested............         113          92          97
  20-309500  Recovery from leaking 
    underground storage tank trust fund 
    for refunds of taxes, EPA: Enacted/
    requested...........................           3           5           5
  20-309990  Refunds of moneys 
    erroneously received and recovered 
    (20X1807): Enacted/requested........         -62         -62         -62
  95-109900  Fines, penalties, and 
    forfeitures, not otherwise 
    classified: Enacted/requested.......         608         603         603
  99-011050  Individual income taxes: 
    Enacted/requested...................   1,043,858   1,177,607   1,294,498
Legislative proposal, not subject to 
 PAYGO..................................                                  14
Legislative proposal, subject to PAYGO..                  -8,857     -48,036
  99-011100  Corporation income and 
    excess profits taxes: Enacted/
    requested...........................     353,914     341,867     318,385
Legislative proposal, not subject to 
 PAYGO..................................                                   3
Legislative proposal, subject to PAYGO..                     190      -3,447
  99-015250  Other Federal fund excise 
    taxes: Enacted/requested............       2,047        -531         -72
Legislative proposal, subject to PAYGO..                                 -61
  99-015300  Estate and gift taxes: 
    Enacted/requested...................      27,877      25,260      26,786
Legislative proposal, subject to PAYGO..                      17      -1,081
  99-015500  Tobacco excise tax: 
    Enacted/requested...................       7,710       7,605       7,496
  99-015600  Alcohol excise tax: 
    Enacted/requested...................       8,484       8,614       8,798
Legislative proposal, subject to PAYGO..                                 -76
  99-015700  Telephone excise tax: 
    Enacted/requested...................       4,897     -10,892      -1,712
Legislative proposal, subject to PAYGO..                    -736        -616
  99-031050  Other Federal fund customs 
    duties: Enacted/requested...........      16,150      17,363      19,204
Legislative proposal, subject to PAYGO..                                -322
General Fund Governmental receipts......   1,494,597   1,589,411   1,654,589
----------------------------------------------------------------------------

Offsetting receipts from the public:....
  20-143500  General fund proprietary 
    interest receipts, not otherwise 
    classified: Enacted/requested.......           7           7           7
  20-145000  Interest payments from 
    States, cash management improvement: 
    Enacted/requested...................          30          61          79
  20-146310  Interest on quota in 
    International Monetary Fund: 
    Enacted/requested...................         210         210         210
  20-146400  Interest received on loans 
    and credits to foreign nations: 
    Enacted/requested...................          75
  20-148400  Interest on deposits in tax 
    and loan accounts: Enacted/requested         924       1,022         871
Legislative proposal, not subject to 
 PAYGO..................................                                  10
  20-149900  Interest received from 
    credit financing accounts: Enacted/
    requested...........................      10,552      12,257      13,376
  20-168200  Gain by exchange on foreign 
    currency denominated public debt 
    securities: Enacted/requested.......           6
  20-276330  Community Development 
    Financial Institutions Fund, 
    Downward re-estimate of subsidies: 
    Enacted/requested...................           2
  20-276610  Air Transportation Safety 
    and System Stabilization Act, 
    Negative subsidies: Enacted/
    requested...........................         538
  20-277130  Air Transportation 
    Stabilization guaranteed loan, 
    Downward reestimates of subsidies: 
    Enacted/requested...................         115          42
  20-286800  Dollar conversion of 
    foreign currency loan repayments: 
    Enacted/requested...................           2           4           4
  20-286900  Repayment of loans and 
    credits to foreign nations: Enacted/
    requested...........................         328
  20-322000  All other general fund 
    proprietary receipts: Enacted/
    requested...........................         540         688         688
  20-387500  Budget clearing account 
    (suspense): Enacted/requested.......          -2
General Fund Offsetting receipts from 
 the public.............................      13,327      14,291      15,245
----------------------------------------------------------------------------

Intragovernmental payments:.............
  13-141000  Interest on investment, 
    economic development revolving fund: 
    Enacted/requested...................           1           1           1
  14-142400  Interest on investment, 
    Colorado River projects: Enacted/
    requested...........................           3           4           4
  14-142700  Interest on advances to 
    Colorado River Dam fund, Boulder 
    Canyon project: Enacted/requested...          12          11          11
  20-133700  Interest on loans to the 
    Helium Fund, Department of Interior: 
    Enacted/requested...................         160         106         157
  20-133800  Interest on loans to the 
    Presidio: Enacted/requested.........           3           3           3
  20-135000  Interest on loans to the 
    Secretary of Transportation, ocean 
    freight differential: Enacted/
    requested...........................           3           1           1
  20-135100  Interest on loans to BPA: 
    Enacted/requested...................         329         304         323
  20-135400  Interest on loans for 
    housing for the elderly or 
    handicapped: Enacted/requested......          51
  20-136100  Interest on loans to the 
    Secretary of Transportation, 
    railroad rehabilitation and 
    improvement fund: Enacted/requested.           1           1           1
  20-136300  Interest on loans for 
    college housing and academic 
    facilities loans, Education: 
    Enacted/requested...................           6           7           7
  20-140100  Interest on loans to 
    Commodity Credit Corporation: 
    Enacted/requested...................         453         546         337
  20-141700  Interest on loans to 
    Tennessee Valley Authority: Enacted/
    requested...........................           5           6           4
  20-141800  Interest on loans to 
    Federal Financing Bank: Enacted/
    requested...........................         391         765       1,023
  20-143300  Interest on loans to 
    national flood insurance fund, DHS: 
    Enacted/requested...................         172         718         800
  20-149500  Interest payments on 
    repayable advances to the black lung 
    disability trust fund: Enacted/
    requested...........................         695         717         739
Legislative proposal, not subject to 
 PAYGO..................................                               2,315
  20-149700  Payment of interest on 
    advances to the Railroad Retirement 
    Board: Enacted/requested............         170         179         172
  20-241600  Charges for administrative 
    expenses of Social Security Act as 
    amended: Enacted/requested..........         887         890         906
  20-310100  Recoveries from Federal 
    agencies for settlement of claims 
    for contract disuptes: Enacted/
    requested...........................         136
  20-311200  Reimbursement from Federal 
    agencies for payments made as a 
    result of discriminatory conduct: 
    Enacted/requested...................          17          17          17
  20-320000  Receivables from cancelled 
    accounts: Enacted/requested.........          31           1           1
  20-388500  Undistributed 
    intragovernmental payments and 
    receivables from cancelled accounts: 
    Enacted/requested...................        -271
  73-142800  Interest on advances to 
    Small Business Administration: 
    Enacted/requested...................           8           7           4
  91-142200  Interest on loans, higher 
    education facilities loan fund: 
    Enacted/requested...................           1           1           1
                                           ---------   ---------  ----------
General Fund Intragovernmental payments.       3,264       4,285       6,827
---------------------------------------------------------------------------


                                


 
          ADMINISTRATIVE PROVISIONS--DEPARTMENT OF THE TREASURY

                      (including transfer of funds)

    Sec. 210.  Appropriations to the Department of the Treasury in this 
Act shall be available for uniforms or allowances therefor, as 
authorized by law (5 U.S.C. 5901), including maintenance, repairs, and 
cleaning; purchase of insurance for official motor vehicles operated in 
foreign countries; purchase of motor vehicles without regard to the 
general purchase price limitations for vehicles purchased and used 
overseas for the current fiscal year; entering into contracts with the 
Department of State for the furnishing of health and medical services to 
employees and their dependents serving in foreign countries; and 
services authorized by 5 U.S.C. 3109.
    Sec. 211.  Not to exceed 2 percent of any appropriations in this Act 
made available to the Departmental Offices--Salaries and Expenses, 
Office of Inspector General, Financial Management Service, Alcohol and 
Tobacco Tax and Trade Bureau, Financial Crimes Enforcement Network, and 
Bureau of the Public Debt, may be transferred between such 
appropriations upon the advance notification of the Committees on 
Appropriations: Provided, That no transfer may increase or decrease any 
such appropriation by more than 2 percent.
    Sec. 212.  Not to exceed 2 percent of any appropriation made 
available in this Act to the Internal Revenue Service may be transferred 
to the Treasury Inspector General for Tax Administration's appropriation 
upon the advance notification of the Committees on Appropriations: 
Provided, That no transfer may increase or decrease any such 
appropriation by more than 2 percent.
    Sec. 213.  Of the funds available for the purchase of law 
enforcement vehicles, no funds may be obligated until the Secretary of 
the Treasury certifies that the purchase by the respective Treasury 
bureau is consistent with Departmental vehicle management principles: 
Provided, That the Secretary may delegate this authority to the 
Assistant Secretary for Management.
    Sec. 214.  None of the funds appropriated in this Act or otherwise 
available to the Department of the Treasury or the Bureau of Engraving 
and Printing may be used to redesign the $1 Federal Reserve note.

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    Sec. 215.  The Secretary of the Treasury may transfer funds from 
Financial Management Services, Salaries and Expenses, to Debt Collection 
Fund as necessary to cover the costs of debt collection: Provided, That 
such amounts shall be reimbursed to such salaries and expenses account 
from debt collections received in the Debt Collection Fund.
    Sec. 216. Section 122(g)(1) of Public Law 105-119, as amended(5 
U.S.C. 3104 note), is further amended by striking ``8 years'' and 
inserting ``10 years''.
    Sec. 217.  Section 3333(a) of Title 31, United States Code, is 
amended by deleting paragraph (3) and inserting in lieu thereof the 
following:
     ``(3) The amount of the relief, and the amount of any relief 
granted to an official or agent of the Department of the Treasury under 
31 U.S.C. 3527, shall be charged to the Check Forgery Insurance Fund (31 
U.S.C. 3343). A recovery or repayment of a loss for which replacement is 
made out of the fund shall be credited to the fund and is available for 
the purposes for which the fund was established.''