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

    [[Page 271]]

                     18.  USER CHARGES AND OTHER COLLECTIONS

      In addition to collecting taxes and other receipts by the exercise of
    its sovereign powers, which is discussed in the previous chapter, the
    Federal Government collects income from the public from market-oriented
    activities and the financing of regulatory expenses. These collections
    are classified as user charges, and they include the sale of postage
    stamps and electricity, charges for admittance to national parks,
    premiums for deposit insurance, and proceeds from the sale of assets,
    such as rents and royalties for the right to extract oil from the Outer
    Continental Shelf.
      Depending on the laws that authorize the user charges, most are
    credited to expenditure accounts as ``offsetting collections,'' or to
    receipt accounts as ``offsetting receipts.'' The budget refers to these
    amounts as ``offsetting'' because they are subtracted from gross outlays
    rather than added to taxes on the receipts side of the budget. The
    purpose of this treatment is to produce budget totals for receipts,
    outlays, and budget authority in terms of the amount of resources
    allocated governmentally, through collective political choice, rather
    than through the market. \1\ In addition, some regulatory fees therefore
    are classified as governmental receipts and are on the receipts side of
    the budget.
    ---------------------------------------------------------------------------
      \1\ Showing collections from business-type transactions as offsets on
    the spending side of the budget follows the concept recommended by the
    Report of the President's Commission on Budget Concepts in 1967. The
    concept is discussed in Chapter 26: ``The Budget System and Concepts''
    in this volume.
    ---------------------------------------------------------------------------
      Usually offsetting collections are authorized to be spent for the
    purposes of the account without further action by the Congress.
    Offsetting receipts may or may not be earmarked for a specific purpose,
    depending on the legislation that authorizes them. When earmarked, the
    authorizing legislation may either authorize them to be spent without
    further action by the Congress, or require them to be appropriated in
    annual appropriations acts before they can be spent.
      Offsetting collections and receipts include most user charges, which
    are discussed below, as well as some amounts that are not user charges.
    Table 18-1 summarizes these transactions. For 2008, total offsetting
    collections and receipts from the public are estimated to be $319.3
    billion, and total user charges are estimated to be $244.6 billion.
      The following section discusses user charges and the Administration's
    user charge proposals. The subsequent section displays more information
    on offsetting collections and receipts. The offsetting collections and
    receipts by agency are displayed in Table 21-1, which appears in Chapter
    21, ``Outlays to the Public, Gross and Net,'' of this volume.
    Collections specifically related to credit programs are discussed in
    Chapter 7, ``Credit and Insurance.''

      Table 18-1.  GROSS OUTLAYS, USER CHARGES, OTHER OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC, AND NET
                                                         OUTLAYS
                                                      (In billions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                     Estimate
                                                                                    Actual   -----------------------
                                                                                     2006        2007        2008
    ----------------------------------------------------------------------------------------------------------------
    Gross outlays...............................................................     2,935.5     3,100.3     3,221.1

    Offsetting collections and receipts from the public:
      User charges \1\..........................................................      -197.8      -226.8      -241.2
      Other.....................................................................       -82.2       -89.2       -78.1
                                                                                 -----------------------------------
        Subtotal, offsetting collections and receipts from the public...........      -280.1      -316.0      -319.3
                                                                                 -----------------------------------
    Net outlays.................................................................     2,655.4     2,784.3     2,901.9
    ----------------------------------------------------------------------------------------------------------------
    \1\ Total user charges are shown below. They include user charges that are classified on the receipts side of
      the budget in addition to the amounts shown on this line. For additional details of total user charges, see
      Table 18-2, ``Total User Charge Collections.''

    Total user charges:
      Offsetting collections and receipts from the public....................        197.8        226.8        241.2
      Receipts...............................................................          3.5          3.5          3.4
                                                                              --------------------------------------
        Total, User charges..................................................        201.4        230.3        244.6

    [[Page 272]]

                                  USER CHARGES

                         I.  Introduction and Background

      The Federal Government often charges those who benefit directly from a
    particular activity or those subject to regulation. Based on the
    definition used in this chapter, Table 18-2 shows that user charges were
    $201.4 billion in 2006, and are estimated to increase to $230.3 billion
    in 2007 and to $244.6 billion in 2008, growing to an estimated $275.5
    billion in 2012, including the user charges proposals that are shown in
    Table 18-3. This table shows that the Administration's user charge
    proposals, including extension of expiring charges, would increase user
    charges by an estimated $4.5 billion in 2008, growing to an estimated
    $19.1 billion in 2012.
      Definition. User charges are fees, charges, and assessments levied on
    individuals or organizations directly benefiting from, or subject to
    regulation by, a Government program or activity. In addition, the payers
    of the charge must be limited to those benefiting from, or subject to
    regulation by, the program or activity, and may not include the general
    public, and generally does not apply to a broad segment of the public
    (such as those who pay income taxes or customs duties).
        Examples of business-type or market-oriented user charges
              include charges for the sale of postal services (the sale of
              stamps), electricity (e.g., sales by the Tennessee Valley
              Authority), proceeds from the sale of goods by defense
              commissaries, payments for Medicare voluntary supplemental
              medical insurance, life insurance premiums for veterans,
              recreation fees for parks, and proceeds from the sale of
              assets (property, plant, and equipment) and natural resources
              (such as timber, oil, and minerals).
        Examples of regulatory and licensing user charges include
              charges for regulating the nuclear energy industry, bankruptcy
              filing fees, immigration fees, food inspection fees, passport
              fees, and patent and trademark fees.
      The ``user charges'' concept used here aligns these estimates with the
    concept that establishes policy for charging prices to the public for
    the sale or use of goods, services, property, and resources (see OMB
    Circular No. A-25, ``User Charges,'' July 8, 1993).
      User charges do not include all offsetting collections and receipts
    from the public, such as repayments received from credit programs;
    interest, dividends, and other earnings; payments from one part of the
    Federal Government to another; or cost sharing contributions. Nor do
    they include earmarked taxes (such as taxes paid to social insurance
    programs or excise taxes on gasoline), or customs duties, fines,
    penalties, and forfeitures.
      Alternative definitions. The definition used in this chapter is useful
    because it is similar to the definition used in OMB Circular No. A-25,
    ``User Charges,'' which provides policy guidance to Executive Branch
    agencies on setting prices for user charges. Alternative definitions may
    be used for other purposes. Much of the discussion of user charges
    below--their purpose, when they should be levied, and how the amount
    should be set--applies to these alternatives as well.
      Other definitions of user charges could, for example:
        be narrower than the one used here, by limiting the
              definition to proceeds from the sale of goods and services
              (and excluding the sale of assets), and by limiting the
              definition to include only proceeds that are earmarked to be
              used specifically to finance the goods and services being
              provided. This definition is similar to one the House of
              Representatives uses as a guide for purposes of committee
              jurisdiction. (See the Congressional Record, January 3, 1991,
              p. H31, item 8.)
        be even narrower than the user fee concept described above,
              by excluding regulatory fees and focusing solely on business-
              type transactions.
        be broader than the one used in this chapter by including
              beneficiary- or liability-based excise taxes, such as gasoline
              taxes. \2\
    ---------------------------------------------------------------------------
      \2\ Beneficiary- and liability-based taxes are terms taken from the
    Congressional Budget Office, The Growth of Federal User Charges, August
    1993, and updated in October 1995. In addition to gasoline taxes,
    examples of beneficiary-based taxes include taxes on airline tickets,
    which finance air traffic control activities and airports. An example of
    a liability-based tax is the excise tax that formerly helped fund the
    hazardous substance superfund in the Environmental Protection Agency.
    This tax was paid by industry groups to finance environmental cleanup
    activities related to the industry activity but not necessarily caused
    by the payer of the fee.
    ---------------------------------------------------------------------------
      What is the purpose of user charges? The purpose of user charges is to
    improve the efficiency and equity of certain Government activities, and
    to reduce the burden on taxpayers to finance activities whose benefits
    accrue to a relatively limited number of people, or to impose a charge
    on activities that impose a cost on the public.
      User charges that are set to cover the costs of production of goods
    and services can provide efficiency in the allocation of resources
    within the economy. They allocate goods and services to those who value
    them the most, and they signal to the Government how much of the goods
    or services it should provide. Prices in private, competitive markets
    serve the same purposes.
      User charges for goods and services that do not have special social
    benefits improve equity, or fairness, by requiring that those who
    benefit from an activity are the same people who pay for it. The public
    often perceives user charges as fair because those who benefit from the
    good or service pay for it in whole or in part, and those who do not
    benefit do not pay.
      When should the Government charge a fee? Discussions of whether to
    finance spending with a tax or a fee often focus on whether the benefits
    of the activity are to the public in general or to a limited group of
    people. In general, if the benefits accrue broadly to the public, then
    the program should be financed by taxes paid by the public; in contrast,
    if the benefits accrue to a limited number of private individuals or
    organizations, then the program should be financed by charges paid by
    the private beneficiaries. For Federal

    [[Page 273]]

    programs where the benefits are entirely public or entirely private,
    applying this principle is relatively easy. For example, according to
    this principle, the benefits from national defense accrue to the public
    in general and should be (and are) financed by taxes. In contrast, the
    benefits of electricity sold by the Tennessee Valley Authority accrue
    exclusively to those using the electricity, and should be (and are)
    financed by user charges.
      In many cases, however, an activity has benefits that accrue to both
    public and to private groups, and it may be difficult to identify how
    much of the benefits accrue to each. Because of this, it can be
    difficult to know how much of the program should be financed by taxes
    and how much by fees. For example, the benefits from recreation areas
    are mixed. Fees for visitors to these areas are appropriate because the
    visitors benefit directly from their visit, but the public in general
    also benefits because these areas protect the Nation's natural and
    historic heritage now and for posterity.
      As a further complication, where a fee may be appropriate to finance
    all or part of an activity, some consideration must be given to the ease
    of administering the fee.
      What should be the amount of the fee? For programs that have private
    beneficiaries, the amount of the charge should depend on the costs of
    producing the goods or services and the portion of the program that is
    for private benefits. If the benefit is primarily private and any public
    benefits are incidental, current policies support charges that cover the
    full cost to the Government, including both direct and indirect costs.
    When the Government is not acting in its capacity as sovereign and
    engages in a business-type transaction (i.e., leasing or selling goods,
    services, or resources), market price should be the basis for
    establishing the fee. \3\
    ---------------------------------------------------------------------------
      \3\ Policies for setting user charges are promulgated in OMB Circular
    No. A-25: ``User Charges'' (July 8, 1993).
    ---------------------------------------------------------------------------
      The Executive Branch is working to put cost accounting systems in
    place across the Government that would make the calculation of full cost
    more feasible. The difficulties in measuring full cost are associated in
    part with allocating to an activity the full costs of capital,
    retirement benefits, and insurance, as well as other Federal costs that
    may appear in other parts of the budget. Guidance in the Statement of
    Federal Financial Accounting Standards No. 4, ``Managerial Cost
    Accounting Standards'' for the Federal Government (July 31, 1995),
    should underlie cost accounting in the Federal Government.
      Classification of user charges in the budget. As shown in Table 18-1,
    most user charges are classified as offsets to outlays on the spending
    side of the budget, but a few are classified on the receipts side of the
    budget. An estimated $3.4 billion in 2008 are classified on the receipts
    side and are included in the totals described in Chapter 17. ``Federal
    Receipts.'' They are classified as receipts because they are regulatory
    charges collected by the Federal Government by the exercise of its
    sovereign powers. Examples include filing fees in the United States
    courts, agricultural quarantine inspection fees, and passport fees.
    These regulatory charges are unlike user fees classified as offsets to
    outlays, which are normally for identifiable goods or services whose
    benefits primarily fall to the party paying the fee and for which
    alternatives may exist in the private sector or State and local sector.
      The remaining user charges, an estimated $241.2 billion in 2008, are
    classified as offsetting collections and receipts on the spending side
    of the budget. Some of these are collected by the Federal Government by
    the exercise of its sovereign powers and conceptually would appear on
    the receipts side of the budget, but are required by law to be
    classified on the spending side as offsetting collections or receipts.
    Examples of these fees include immigration examination fees, U. S.
    customs processing fees, and nuclear regulatory fees.
      An estimated $141.8 billion of user charges for 2008 are credited
    directly to expenditure accounts, and are generally available for
    expenditure when they are collected, without further action by the
    Congress. An estimated $99.4 billion of user charges for 2008 are
    deposited in offsetting receipt accounts, and are available to be spent
    only according to the legislation that established the charges.
      As a further classification, the accompanying Tables 18-2 and 18-3
    identify the user charges as discretionary or mandatory. These
    classifications are terms from the Budget Enforcement Act of 1990 as
    amended and are used frequently in the analysis of the budget.
    ``Discretionary'' in this chapter refers to user charges generally
    controlled through annual appropriations acts and under the jurisdiction
    of the appropriations committees in the Congress. ``Mandatory'' refers
    to user charges controlled by permanent laws and under the jurisdiction
    of the authorizing committees.
      These and other classifications are discussed further in this volume
    in Chapter 26, ``The Budget System and Concepts.''

                             II.  TOTAL USER CHARGES

      As shown in Table 18-2, total user charge collections (including those
    proposed in this Budget) are estimated to be $244.6 billion in 2008,
    increasing to $275.5 billion in 2012. User charge collections by the
    Postal Service and for Medicare premiums are the largest and are
    estimated to be more than half of total user charge collections in 2008.

    [[Page 274]]

                                       Table 18-2.  TOTAL USER CHARGE COLLECTIONS
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimates
                                                 Actual  -----------------------------------------------------------
                                                  2006      2007      2008      2009      2010      2011      2012
    ----------------------------------------------------------------------------------------------------------------

                     Receipts

    Judicial Branch: Filing fees, U.S. courts.       221       144       172       157       153       159       164
    Department of Agriculture: Agricultural          418       455       494       502       509       517       524
     quarantine inspection fees...............
    Department of the Interior: Abandoned mine       303       301       295       270       275       282       286
     reclamation fund.........................
    Department of State: Immigration,                861       719       732       731       730       729       728
     passport, and consular fees..............
    Corps of Engineers: Harbor maintenance         1,207     1,264     1,367     1,461     1,561     1,663     1,770
     fees.....................................
    Other.....................................       538       567       357       304       306       309       312
                                               ---------------------------------------------------------------------
      Subtotal, receipts......................     3,548     3,450     3,417     3,425     3,534     3,659     3,784

     Offsetting Collections and Receipts from
                    the Public

    Discretionary
      Department of Agriculture: Food safety         316       312       309       305       304       309       312
       inspection and other charges...........
      Department of Commerce: Patent and           1,779     1,892     2,034     2,182     2,368     2,574     2,757
       trademark, fees for weather services,
       and other charges......................
      Department of Defense: Commissary and       10,079    10,564    10,417    10,393    10,392    10,392    10,392
       other charges..........................
      Department of Energy: Federal Energy           982     1,131     1,345     1,323     1,319     1,349     1,361
       Regulation Commission, power marketing,
       and other charges......................
      Department of Health and Human Services:     1,247       972     1,193     1,104     1,100     1,124     1,134
       Food and Drug Administration, Centers
       for Medicare and Medicaid Services, and
       other charges..........................
      Department of Homeland Security: Border      2,051     2,431     2,761     2,842     2,937     3,035     3,136
       and Transportation Security and other
       charges................................
      Department of the Interior: Minerals           736       721       843       826       811       848       850
       Management Service and other charges...
      Department of Justice: Charges for             301       329       364       358       357       365       368
       bankruptcy oversight and other charges.
      Department of State: Passport and other        948     1,308     1,576     1,622     1,670     1,719     1,769
       charges................................
      Department of Transportation: FAA user         188       105       252     8,422     8,908     9,344     9,766
       fee proposal, pipeline safety, and
       other charges..........................
      Department of the Treasury: Sale of          1,606     1,992     1,948     1,916     1,909     1,954     1,970
       commemorative coins and other charges..
      Department of Veterans Affairs: Medical      2,082     2,274     2,431     2,518     2,607     2,703     2,801
       care and other charges.................
      General Services Administration:                87       452       470       481       491       501       511
       Acquisition services fund and other
       charges................................
      Social Security Administration, State          116       119       135       133       132       135       137
       supplemental fees, supplemental
       security income........................
      Federal Communications Commission:             383       374       397       391       389       398       402
       Regulatory fees........................
      Federal Trade Commission: Regulatory           133       153       165       162       162       165       167
       fees...................................
      Nuclear Regulatory Commission:                 624       641       765       756       756       774       783
       Regulatory fees........................
      Securities and Exchange Commission:          1,904     1,379     1,147     1,332     1,520     1,740     1,742
       Regulatory fees........................
      All other agencies, discretionary user      -3,036       305       255       249       246       247       248
       charges................................
                                               ---------------------------------------------------------------------
        Subtotal, discretionary user charges..    22,526    27,454    28,807    37,315    38,378    39,676    40,606

    Mandatory
      Department of Agriculture: Crop              1,941     1,829     2,648     2,457     2,405     2,444     2,374
       insurance and other charges............
      Department of Defense: Commissary            1,036       742       784       791       770       703       515
       surcharge and other charges............
      Department of Energy: Proceeds from the      4,491     4,680     4,553     4,769     4,608     4,670     4,594
       sale of energy, nuclear waste disposal,
       and other charges......................
      Department of Health and Human Services:    47,250    54,956    59,578    64,404    69,320    74,660    80,728
       Medicare Part B and Part D insurance
       premiums and other charges.............
      Department of Homeland Security:             7,024     7,478     8,428     8,345     8,782     9,222     9,646
       Customs, immigration, and other charges
      Department of the Interior: Recreation       6,156     4,778     5,148     5,654     5,497     5,383     5,866
       and other charges......................
      Department of Justice: Federal Prison          435       516       549       561       575       588       602
       Commissary fees and other charges......
      Department of Labor: Insurance premiums      3,160     3,756     3,607     6,575     7,532     7,943     8,561
       to guaranty private pensions and other
       charges................................
      Department of the Treasury: Bank               956     1,048     1,120     1,146     1,186     1,228     1,272
       regulation, and other charges..........
      Department of Veterans Affairs: Veterans     2,468     2,499     2,207     2,291     2,258     2,230     2,239
       life insurance and other charges.......
      Office of Personnel Management: Federal     11,164    11,560    12,207    13,001    13,947    14,991    15,978
       employee health and life insurance fees
      Federal Deposit Insurance Corporation:         252       865     2,526     5,318     6,946     8,105     6,330
       Deposit insurance fees and other
       charges................................
      National Credit Union Administration:          353       401       453       477       434       461       487
       Credit union share insurance and other
       charges................................
      Postal Service: Fees for postal services    70,348    73,672    76,733    70,273    70,533    70,865    71,312
      Tennessee Valley Authority: Proceeds         9,051     9,136     9,410     8,428     8,708     8,987     9,354
       from the sale of energy................
      Undistributed Offsetting Receipts:
        Department of Commerce: Digital         ........  ........    11,800     2,058  ........  ........  ........
         television transition and public
         safety fund..........................
        Department of the Interior: Arctic      ........  ........  ........     7,004         4     1,006         6
         National Wildlife Refuge, lease
         bonuses..............................
        Executive Office of the President:      ........     6,850  ........  ........  ........  ........  ........
         Spectrum relocation receipts.........
        Federal Communications Commission:           111     6,900        50       100       100       100  ........
         Auction receipts.....................
        Outer Continental Shelf receipts and       7,283     6,940     9,621    10,662     9,558    10,166    10,208
         other collections....................
      All other agencies, mandatory user           1,815       765       957       957       973     1,018     1,004
       charges................................
                                               ---------------------------------------------------------------------
        Subtotal, mandatory user charges......   175,294   199,371   212,379   215,271   214,136   224,770   231,076
                                               ---------------------------------------------------------------------
        Subtotal, user charges that are          197,820   226,825   241,186   252,586   252,514   264,446   271,682
         offsetting collections and receipts
         from the public......................
                                               ---------------------------------------------------------------------
    TOTAL, User charges.......................   201,368   230,275   244,603   256,011   256,048   268,105   275,466
    ----------------------------------------------------------------------------------------------------------------

    [[Page 275]]

                           III. USER CHARGE PROPOSALS

      As shown in Table 18-3, the Administration is proposing new or
    increased user charges, including proposed extensions of expiring
    charges, that would increase collections by an estimated $4.5 billion in
    2008, increasing to $19.1 billion in 2012. These amounts are collections
    and receipts only. They do not include related spending.

    A.  Discretionary User Charge Proposals

    1.  Offsetting collections

    Department of Commerce: Minority Business Development Agency

      Conference fees. The Budget proposed to give the Minority Business
    Development Agency (MBDA) the authority to collect and retain fees to
    offset the costs of conducting conferences. MBDA conducts the annual
    Minority Enterprise Development (MED) Week conference and estimated fees
    are less than $500 thousand per year.

    Department of Defense (DOD)

       Medical care enrollment fees and deductible. The Budget gives DOD the
    authority to increase enrollment fees and deductibles for military
    retirees under age 65 (and families). The new cost shares differ for
    officer and enlisted retirees and for those in the different types of
    plans. The Budget also assumes that retail pharmacy co-payments for all
    military retirees will increase. None of these changes apply to active-
    duty members and their dependents. DOD will take into account the
    recommendations of the DOD Task Force on the Future of Military Health
    Care before final implementation. The total 2008 savings for these
    proposals is estimated to be $1,862 million.

    Department of Health and Human Services

      Food and Drug Administration (FDA)

       Generic drug review activities fee. Generic drugs play an important
    role in reducing the cost of pharmaceuticals. The Budget proposes a new
    user fee to generate additional resources to support FDA's generic drug
    review activities. Similar to the purpose of FDA's current prescription
    drug user fees, the proposed generic drug user fee would be targeted
    towards improving review times and reducing the backlog of applications.
       Expiring user fees. The Prescription Drug User Fee Act, the Medical
    Devices User Fee and Modernization Act, and the Mammography Quality
    Standards Act will expire on September 30, 2007. These laws authorize
    the FDA to assess and collect fees associated with the pre-market review
    of prescription drugs, medical devices, and activities related to
    ensuring mammography quality. The Administration supports reauthorizing
    the collection and spending of these fees.

      Centers for Medicare and Medicaid Services

       Survey and certification user fee. The Budget proposes a new user fee
    for the survey and certification program within the Centers for Medicare
    and Medicaid Services. The agency would charge facilities participating
    in Medicare and Medicaid a fee for conducting follow-up surveys, which
    verify that they have taken appropriate action to correct identified
    deficiencies in compliance with specific Federal health, safety, and
    quality standards.

    [[Page 276]]

                                Table 18-3.  USER FEE AND OTHER USER CHARGE PROPOSALS \1\
                                     (Estimated collections in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2007     2008     2009     2010     2011     2012   2008-2012
    ----------------------------------------------------------------------------------------------------------------

    DISCRETIONARY:

    1.  Offsetting collections

    Department of Commerce: Minority Business
     Development Agency
      Conference fees..............................  .......        *        *        *        *        *         2

    Department of Defense
      Medical care enrollment fees and deductible..  .......    1,862    2,322    2,815    3,424    4,061    14,484

    Department of Health and Human Services
      Food and Drug Administration:
        Generic drug review activities fee.........  .......       16       16       16       16       16        80
        Prescription drug user fee.................  .......      339      333      332      340      343     1,687
        Medical devices user fee...................  .......       48       47       47       48       49       239
        Mammography standards user fee.............  .......       18       18       18       18       18        90
      Centers for Medicare and Medicaid Services:    .......       35       34       34       35       35       173
       Survey and certification user fee...........

    Department of Transportation
      Federal Aviation Administration: User fee      .......  .......    8,173    8,660    9,092    9,511    35,436
       proposal....................................

    Federal Election Commission
      Registration fees............................  .......        *        *        *        *        *         1

    2.  Offsetting receipts
    Department of Homeland Security: U.S.
     Citizenship and Immigration Services
      Systematic alien verification for              .......        3        3        3        3        3        15
       entitlements program........................

    Department of Housing and Urban Development
      Office of Federal Housing Enterprise           .......      -66      -65      -65      -66      -67      -329
       Oversight...................................

    Department of the Interior
      Repeal Energy Act fee prohibition............  .......       21       21       21       21       21       105
                                                    ----------------------------------------------------------------
        Subtotal, discretionary user charge          .......    2,277   10,903   11,882   12,932   13,991    51,983
         proposals.................................

    MANDATORY:

    1.  Offsetting collections

    Department of Labor
      Pension Benefit Guaranty Corporation premiums  .......  .......    1,390    1,387    1,400    1,295     5,472

    Federal Housing Enterprise Regulator
      Government-Sponsored Enterprises regulatory    .......      101      105      105      107      109       527
       fee.........................................

    Federal Housing Finance Board
      Federal Home Loan Bank fees..................  .......      -35      -39      -40      -41      -42      -197

    2.  Offsetting receipts
    Department of Agriculture
      Food Safety and Inspection Service user fees.  .......       96       98      100      102      104       500
      Grain, Inspection, Packers, and Stockyards     .......       22       22       23       23       24       115
       Administration user fees....................
      Animal and Plant Health Inspection Service     .......        9       13       13       14       14        63
       user fees...................................
      Federal crop insurance fees..................  .......  .......       15       15       15       15        60
      Forest county safety net payments............  .......      467      264      180      137  .......     1,048

    Department of Defense
      National defense stockpile asset sales:        .......       69      145      198      145       25       582
       Authorization for additional sales..........

    Department of Health and Human Services
      Food and Drug Administration: Re-inspection    .......       27       28       28       29       30       142
       fees and export certification fees..........
      Centers for Medicare and Medicaid Services:    .......      403      804    1,116    1,432    1,792     5,547
       Additional Medicare premiums................

    Department of Housing and Urban Development
      Ginnie Mae premium increase..................  .......       46       46       46       46       46       230
      Government-Sponsored Enterprises oversight     .......        6        6        6        6        6        30
       fee.........................................

    Department of the Interior
      Amend Bureau of Land Management Federal land   .......        5       10       14       53       53       135
       sale authority..............................
      Require upfront payment of coal bonus bid      .......        2      121      115       54      134       426
       receipts....................................
      Arctic National Wildlife Refuge lease
       bonuses:
        Collections for payment to Alaska..........  .......  .......    3,502        2      503        3     4,010
        Collections deposited in the Treasury......  .......  .......    3,502        2      503        3     4,010

    Department of Labor
      Foreign labor certification fees.............  .......       65       65       65       65       65       325

    Department of Veterans Affairs
      Pharmacy co-pay increase.....................  .......      311      304      306      307      342     1,570
      Income-based medical care enrollment fee.....  .......  .......      138      134      129      125       526
      Third-party insurance co-payment offset......  .......       44       44       44       43       43       218

    Corps of Engineers--Civil Works
      Additional recreation fees...................  .......        7       10       13       16       19        65

    [[Page 277]]

    Environmental Protection Agency
      Pesticide user fees..........................  .......       66       57       60       66       57       306
      Pre-manufacture notice user fees.............  .......        4        8        8        8        8        36

    Commodity Futures Trading Commission
      Transaction fees.............................  .......       86       89       92       95       99       461

    Federal Communications Commission
      Spectrum license fee authority...............  .......       50      150      300      300      400     1,200
      Extend spectrum auction authority............  .......  .......  .......  .......  .......      200       200
      Prospective ancillary terrestrial component    .......      150      150      150      150      150       750
       spectrum auctions...........................
      Domestic satellite spectrum auctions.........      130      252      105      100      100       75       632
                                                    ----------------------------------------------------------------
        Subtotal, mandatory user charge proposals..      130    2,253   11,152    4,582    5,807    5,194    28,989

                 GOVERNMENTAL RECEIPTS

    Department of Transportation
      Federal Aviation Administration: Aviation      .......  .......      -56      -58      -60      -62      -236
       overflight fees.............................
                                                    ----------------------------------------------------------------

        Total, user charge proposals...............      130    4,530   21,999   16,406   18,679   19,123    80,736
    ----------------------------------------------------------------------------------------------------------------
    \1\ A negative sign indicates a decrease in collections.
    *$500 thousand or less

    Department of Transportation: Federal Aviation Administration (FAA)

       User fee proposal. The Budget includes a reauthorization proposal
    that would make the Federal Aviation Administration's financing system
    more cost-based. The FAA's current excise tax system, which generated
    $10.6 billion in 2006, largely based on taxes on the price of airline
    tickets, does not have a direct relationship between the taxes paid by
    users and the air traffic control services provided by the FAA. Under
    its reauthorization proposal, FAA would collect user fees from
    commercial aviation operators for air traffic control services.
    Implementing user fees for services provided should create incentives to
    make the system more efficient and responsive to user needs. FAA would
    have the authority to collect the user fees that directly offset the
    cost of its operations; expenditure of the proceeds from these fees
    would be subject to the appropriations process. The Budget assumes FAA
    will implement its new financing system starting in 2009, and estimates
    FAA will collect $8 billion in user fees during the first year.

    Federal Election Commission

      Registration fees. The Federal Election Commission hosts public
    conferences on subjects related to campaign finance. The Administration
    proposes to grant the FEC authority to collect registration fees from
    attendees to cover the cost of these events.

    2.  Offsetting receipts

    Department of Homeland Security: U.S. Citizenship and Immigration
    Services (USCIS)

      Systematic alien verification for entitlements program. The Budget
    requests authority for the Secretary of the Department of Homeland
    Security (DHS) to deposit fees collected from the Systematic Alien
    Verification for Entitlements (SAVE) Program into the USCIS immigration
    examinations fee account. This program is an intergovernmental
    information-sharing intiative that aids organizations in determining an
    applicant's/recipient's immigration status, and thereby ensure that only
    entitled applicants/recipients receive Federal, State, or local public
    benefits as required by the Immigration Reform and Control Act. The
    proposed language will clarify DHS authority to collect these fees and
    provide them the authority to deposit those fees in their mandatory fee
    account.

    Department of Housing and Urban Development

       Office of Federal Housing Enterprise Oversight. This proposal is
    discussed below in the section on the Federal Housing Enterprise
    Regulator.

    Department of the Interior

       Repeal Energy Act fee prohibition. A last-minute addition to the 2005
    Energy Policy Act prohibited the Bureau of Land Management from
    implementing new user fees for oil and gas permit processing and instead
    diverted existing rental receipts to make up for the lost program
    funding. The Budget proposes to repeal these changes and substitute new
    user fees for the mandatory funding provided by the Act. The proposal
    would also repeal a mandatory geothermal program fund drawn from Federal
    geothermal royalties and return to the traditional 50/50 Federal-State
    revenue sharing arrangement for geothermal revenues. The proposed fees
    are expected to generate at least $20 million per year beginning in
    2008, thereby reducing the cost to taxpayers for operating these
    programs. Additional savings will be generated by discontinuing the
    Act's mandatory spending provisions related to geothermal receipts.

    [[Page 278]]

    B.  Mandatory User Charge Proposals

    1.  Offsetting collections

    Department of Labor

       Pension Benefit Guaranty Corporation (PBGC) premiums. The Budget re-
    proposes increases to the premiums paid to the PBGC for single-employer
    defined benefit pension insurance. Despite improvements in the recently
    enacted Pension Protection Act, further premium increases are needed to
    reduce PBGC's $19 billion deficit.

    Federal Housing Enterprise Regulator

      Government-Sponsored Enterprises (GSE) regulatory fee. The
    Administration will again propose broad reform of the supervisory system
    for GSEs in the housing market. Fees currently collected by the Office
    of Federal Housing Enterprise Oversight in the Department of Housing and
    Development and the Federal Housing Finance Board would instead be
    collected by a new housing GSE safety and soundness regulator. For
    additional information, see the ``Credit and Insurance'' chapter in this
    volume.

    Federal Housing Finance Board

      Federal Home Loan Bank fees. This proposal is discussed above in the
    section on the Federal Housing Enterprise Regulator.

    2.  Offsetting receipts

    Department of Agriculture

      Food Safety and Inspection Service (FSIS) user fees. This Budget
    proposes two new user fees, a licensing fee and a performance fee. These
    two fees are different from those proposed in recent budgets and do not
    try to completely offset a portion of the Food Safety and Inspection
    Services operational expenses. The recommended fees, estimated to be $96
    million in the first year, include:
        $92 million for a licensing fee scaled to the size of the
              operation, and
        $4 million for a performance fee. Plants that have
              resampling and retesting due to positive samples, recalls, or
              are linked to outbreaks would pay a fee to FSIS for each
              incident.
      Grain Inspection, Packers, and Stockyards Administration (GIPSA) user
    fees. The Administration proposes to establish a fee to cover the cost
    associated with GIPSA's standardization activities and a licensing fee
    to cover the cost associated with administering meat packers and
    stockyards activities.
      Animal and Plant Health Inspection Service user fees. The
    Administration proposes to establish user fees for animal welfare
    inspections, for animal research facilities, carriers, and in-transit
    handlers of animals.
      Federal crop insurance fees. The Administration proposes to implement
    a participation fee in the Federal crop insurance program to fund
    modernization and future maintenance of the existing information
    technology (IT) system. The fee would be charged to insurance companies
    participating in the Federal crop insurance program based on a rate of
    about one-half cent per dollar of premium sold. Because it is the
    companies that will most benefit from better, more advanced computer
    systems, it is reasonable that they contribute to the modernization and
    maintenance of these systems.
       Forest county safety net payments. The Budget includes a legislative
    proposal that authorizes the Secretary of Agriculture to dispose of
    certain Forest Service lands, up to $800 million, identified in National
    Forest plans as suitable for exchange since they are isolated or
    inefficient to manage. Along with additional proceeds, these receipts
    will finance payments to the most affected areas and for national forest
    land acquisition in States where parcels are sold. For the 2007 payment
    (to be made in 2008), the Administration will continue to work with
    Congress to identify mutually agreeable offsets.

    Department of Defense

       National Defense stockpile asset sales: Authorization for additional
    sales. The Administration proposes legislation to permit the sale of the
    remaining government-owned industrial commodities in the National
    Defense Stockpile that are not needed for national defense requirements.
    Sales of these commodities are expected to result in mandatory sales
    receipts of an estimated $69 million in 2008. Sales receipts are subject
    to fluctuation based on commodity price changes.

    Department of Health and Human Services

      Food and Drug Administration (FDA)

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

      Centers for Medicare and Medicaid Services

       Additional Medicare premiums. Medicare beneficiaries share in the
    costs of their health services through premiums, deductibles, and co-
    insurance. The Medicare Prescription Drug, Improvement, and
    Modernization Act of 2003 (MMA) began to limit the growth in subsidies
    for certain higher-income beneficiaries. Beneficiaries who are most able
    to contribute to the costs of their coverage have more responsibility
    and ownership over their health care utilization and costs.

    [[Page 279]]

    To help improve Medicare's long-term sustainability, the Budget proposes
    to broaden the application of reduced subsidies for certain higher-
    income beneficiaries.

    Department of Housing and Urban Development (HUD)

      Ginnie Mae premium increase. This proposal will create an upfront
    premium of 6 basis points on new mortgage-backed securities that will be
    charged to security issuers. This will generate receipts to cover the
    total cost of administrating the Government National Mortgage
    Association (Ginnie Mae) and promote oversight of such spending.
       Government-Sponsored Enterprises (GSE) oversight fee. Upon enactment
    of the Administration's proposal for a strengthened regulator for GSEs,
    the cost of HUD's responsibilities under the Federal Housing Enterprise
    Safety and Soundness Act of 1992, and amendments as proposed, would be
    assessed on Fannie Mae and Freddie Mac. These responsibilities include
    the establishment and enforcement of affordable housing goals for the
    GSEs, ensuring GSE compliance with fair housing laws, and providing
    consultation to the safety and soundness regulator on the GSEs' new
    activities. The cost of these regulatory responsibilities is currently
    in the HUD salaries and expenses account as a non-reimbursable expense.

    Department of the Interior

       Amend Bureau of Land Management (BLM) Federal land sale authority.
    The Administration will propose legislation to amend BLM's land sale
    authority under the Federal Land Transaction Facilitation Act (FLTFA)
    to: (1) allow BLM to use updated management plans to identify areas
    suitable for disposal; (2) allow a portion of the receipts to be used by
    BLM for restoration projects; (3) return 70 percent of land sale
    proceeds to the Treasury; and (4) cap receipt retention at $60 million
    per year. BLM is currently limited to selling lands that had been
    identified for disposal in land use plans that were in effect prior to
    enactment of FLTFA. Use of the receipts is currently limited to the
    purchase of other lands for conservation purposes. The new receipts
    shown in this chapter reflect only a portion of the savings from this
    proposal; additional savings will be generated by redirecting receipts
    under the existing FLFTA authority to the Treasury. The amounts shown in
    Table 18-3 reflect receipts only and do not include related spending.
       Require upfront payment of coal bonus bid receipts. The Budget
    proposes to amend the Mineral Leasing Act to change the current practice
    of allowing bonus bid payments for coal lease sales to be made over a
    five-year period, instead requiring the full payment to be made in the
    sale year. This proposal would increase near-term revenues, but would
    reduce revenues in later years when deferred payments under the current
    system would otherwise be collected.
       Arctic National Wildlife Refuge lease bonuses. The Budget includes a
    proposal to authorize the Department of the Interior to conduct
    environmentally responsible oil and gas exploration and development
    within a small area of the Arctic National Wildlife Refuge, sometimes
    referred to as the ``1002 Area,'' located in northern Alaska. The
    Department of the Interior estimates that recoverable oil from this area
    is between 5.7 and 16 billion barrels. The Budget assumes that the first
    oil and gas lease sale would be held in 2009 and would result in an
    estimated $7 billion in new revenues. All oil and gas revenues from the
    1002 Area would be shared fifty percent with the State of Alaska,
    including the estimated $6 million in annual rental payments. The
    Federal share of revenues would be deposited in the Treasury.

    Department of Labor

       Foreign labor certification fees. The 2008 Budget re-proposes
    legislation to establish a cost-based user fee for new applications
    under the permanent foreign labor certification program. Fee proceeds
    would offset the costs of administering the program. Upon enactment of
    the fee, funding for these activities now included in the program
    administration account will be reviewed and adjusted.

    Department of Veterans Affairs

       Medical care fees. The President's Budget includes legislation to
    implement new or higher fees for non-disabled higher-income veterans (PL
    7/8 veterans). These veterans will pay higher drug co-pays (from $8 to
    $15) and new income-based annual enrollment fees that start at $250 for
    those with household incomes of $50,000 and rise to $750 for those with
    incomes of $100,000 or greater. These proposals do not pertain to
    veterans who are considered among VA's core mission and the highest
    priority--those with service disabilities, lower incomes, or special
    needs. The Budget also includes technical correction language to ensure
    that current co-pays are charged to all eligible veterans equally and
    not reduced if a veteran has health insurance. These proposals will
    result in an additional $355 million in estimated receipts for 2008.

    Corps of Engineers--Civil Works

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

    [[Page 280]]

    citizens enjoy to provide amenities that might not otherwise be
    available.

    Environmental Protection Agency (EPA)

       Pesticide user fees. EPA presently collects fees from entities
    seeking to register their pesticides and from entities with existing
    pesticides registered for use in the United States. The Administration
    proposes to better cover the costs of EPA's pesticide services by
    increasing collections of currently authorized, but soon to expire,
    pesticide user fees. Furthermore, the Federal Food, Drug, and Cosmetic
    Act requires EPA to collect fees for the establishment and reassessment
    of pesticide tolerances. However, collection of these fees has been
    blocked through 2008. The Administration proposes to eliminate the
    prohibition and collect the tolerance fee in 2008. In addition,
    amendments to the Federal Insecticide, Fungicide, and Rodenticide Act
    require EPA to implement a new program to review all registered
    pesticides on a 15 year cycle to ensure that registrations reflect
    current science. EPA initiated this new Registration Review program in
    2007. If EPA determines that a pesticide adversely impacts an endangered
    species during registration review, additional work is required to
    ensure adequate protections are implemented. The new registration review
    fee structure is designed to cover the incremental cost of this work.
       Pre-manufacture notice user fees. EPA presently collects fees from
    chemical manufacturers seeking to bring new chemicals into commerce.
    These fees are authorized by the Toxic Substances Control Act and are
    subject to an outdated statutory cap. The Administration proposes to
    eliminate the cap so that EPA can recover a greater portion of the cost
    of the program.

    Commodity Futures Trading Commission (CFTC)

       Transaction fees. The CFTC is the only Federal financial regulator
    that does not derive its funding from the specialized entities it
    regulates. The Administration will propose legislation to collect a new
    transaction fee on commodity futures and option contracts traded on
    approved exchanges. The fees would be set at a level to equal the costs
    to the taxpayer of funding CFTC's Market Oversight and Clearing and
    Intermediary Oversight functions, an estimated $86 million in 2008. Such
    fees are already imposed on futures exchanges to fund the programs of
    the futures industry's self-regulatory organization, and will help to
    offset the deficit impact of general taxpayer funding of the CFTC's
    activities.

    Federal Communications Commission

       Spectrum license fee authority. To continue to promote efficient
    spectrum use, the Administration proposes legislation to provide the
    Federal Communications Commission (FCC) with new authority to use other
    economic mechanisms, such as fees, as a spectrum management tool. The
    Commission would be authorized to set user fees on unauctioned spectrum
    licenses based on public-interest and spectrum-management principles.
    Fees would be phased in over time as part of an ongoing rulemaking
    process to determine the appropriate application and level for fees. Fee
    collections are proposed to begin in 2008 and are estimated to total
    more than $3.6 billion through 2017.
       Extend spectrum auction authority. The Administration proposes
    legislation to extend indefinitely the authority of the FCC to auction
    spectrum licenses, which expires on September 30, 2011. The additional
    receipts associated with this permanent extension are estimated to total
    $1.2 billion through 2017.
       Prospective ancillary terrestrial component spectrum auctions. The
    Administration proposes legislation to bring greater competition to the
    assignment of the land-based component of hybrid terrestrial-satellite
    communications networks, such as the Ancillary Terrestrial Component to
    Mobile Satellite Services, subject to technical feasibility as
    determined by the FCC. The use of auctions to assign the land-based
    component for any future satellite licenses for these hybrid networks
    will help to ensure that the radio spectrum is assigned efficiently and
    effectively. The additional receipts associated with this policy are
    estimated to total $1.5 billion through 2017.
       Domestic satellite spectrum auctions. The Administration proposes
    legislation to ensure that spectrum licenses for predominantly domestic
    satellite services are assigned efficiently and effectively through
    competitive bidding. Services such as Direct Broadcast Satellite and
    Satellite Digital Audio Radio Services were assigned by auction prior to
    a 2005 court decision that questioned this practice on technical
    grounds. By clarifying through legislation that auctions of licenses for
    these domestic satellite services are authorized, prior policy of the
    FCC will be restored. The additional receipts associated with this
    policy are estimated to total $690 million through 2017.

    C.  User Charge Proposals that are Governmental Receipts

      Federal Aviation Administration (FAA): Aviation overflight fees. This
    proposal is part of the proposal discussed above for the FAA user fees.

                    OTHER OFFSETTING COLLECTIONS AND RECEIPTS

      Table 18-4 shows the distribution of user charges and other offsetting
    collections and receipts from the public according to whether they are
    offsetting collections credited to expenditure accounts or offsetting
    receipts. The table shows that total offsetting collections and receipts
    from the public are estimated to be $319.3 billion in 2008. Of these, an
    estimated $169.9 billion are offsetting collections credited to
    expenditure accounts and an estimated $149.4 billion are deposited in
    offsetting receipt accounts.
      Information on the user charges presented in Table 18-4 is available
    in Tables 18-2 and 18-3 and the

    [[Page 281]]

    discussion that accompanies those tables. Major offsetting collections
    deposited in expenditure accounts that are not user charges include
    collections by the Commodity Credit Corporation fund in the Department
    of Agriculture, which are related to loans; collections from States to
    supplement payments in the supplemental security income program; and
    pre-credit reform loan repayments. Major offsetting receipts that are
    not user charges include military assistance program sales and interest
    income.
      Table 18-5 includes all offsetting receipts deposited in receipt
    accounts. These include offsetting receipts from the public (as
    summarized in Table 18-4) and also payments from one part of the
    Government to another, called intragovernmental transactions. These
    receipts are offset (deducted) from outlays in the Federal budget. In
    total, offsetting receipts are estimated to be $737.0 billion in 2008:
    $587.6 billion are intragovernmental transactions; and $149.4 billion
    are from the public. The $149.4 billion in offsetting receipts from the
    public consist of proprietary receipts from the public ($129.9 billion)
    and offsetting governmental receipts ($19.5 billion).
      As noted above, offsetting collections and receipts by agency are also
    displayed in Table 21-1, which appears in Chapter 21, ``Outlays to the
    Public, Gross and Net,'' of this volume.

        Table 18-4.  OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
                            (In billions of dollars)
    ------------------------------------------------------------------------
                                                           Estimate
                                        Actual   ---------------------------
                                         2006         2007          2008
    ------------------------------------------------------------------------
    Offsetting collections (credited
     to expenditure accounts):
      User charges:
        Postal service stamps and           70.3          73.7          76.7
         other postal fees (off-
         budget)....................
        Defense Commissary Agency...         5.5           5.4           5.4
        Employee contributions for           9.1           9.4          10.0
         employees and retired
         employees health benefits
         funds......................
        Sale of energy:
          Tennessee Valley Authority         9.1           9.1           9.4
          Bonneville Power                   3.3           3.3           3.3
           Administration...........
        All other user charges......        29.6          34.5          36.9
                                     ---------------------------------------
          Subtotal, user charges....       126.8         135.5         141.8

      Other collections credited to
       expenditure accounts:
        Commodity Credit Corporation        10.2          13.7          13.2
         fund.......................
        Supplemental security income         4.2           4.4           4.6
         (collections from the
         States)....................
        Other collections...........        14.8          10.5          10.4
                                     ---------------------------------------
          Subtotal, other                   29.1          28.6          28.1
           collections..............
                                     ---------------------------------------
        Subtotal, offsetting               156.0         164.1         169.9
         collections................

    Offsetting receipts (deposited
     in receipt accounts):
      User charges:
        Medicare premiums...........        45.1          52.8          57.3
        Outer Continental Shelf              7.3           6.8           9.2
         rents, bonuses, and
         royalties..................
        All other user charges......        18.6          31.7          32.9
                                     ---------------------------------------
          Subtotal, user charges            71.0          91.3          99.4
           deposited in receipt
           accounts.................
      Other collections deposited in
       receipt accounts:
        Military assistance program         14.2          15.1          13.1
         sales......................
        Interest income.............        14.7          16.1          16.2
        All other collections               24.2          29.4          20.7
         deposited in receipt
         accounts...................
                                     ---------------------------------------
          Subtotal, other                   53.1          60.5          49.9
           collections deposited in
           receipt accounts.........
                                     ---------------------------------------
      Subtotal, offsetting receipts.       124.1         151.8         149.4
                                     ---------------------------------------
    Total, offsetting collections          280.1         316.0         319.3
     and receipts from the public...
    Total, offsetting collections          209.7         242.3         242.5
     and receipts excluding off-
     budget.........................

    ADDENDUM:

      User charges that are                197.8         226.8         241.2
       offsetting collections and
       receipts \1\.................
      Other offsetting collections          82.2          89.2          78.1
       and receipts from the public.
                                     ---------------------------------------
        Total, offsetting                  280.1         316.0         319.3
         collections and receipts
         from the public............
    ------------------------------------------------------------------------
    \1\ Excludes user charges that are classified on the receipts side of
      the budget. For total user charges, see Table 18.1 or Table 18.2.

    [[Page 282]]

                                         Table 18-5. OFFSETTING RECEIPTS BY TYPE
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                             Estimate
               Source                2006    -----------------------------------------------------------------------
                                    Actual       2007        2008        2009        2010        2011        2012
    ----------------------------------------------------------------------------------------------------------------
          INTRAGOVERNMENTAL
            TRANSACTIONS
    On-budget receipts:
      Federal intrafund
       transactions:
        Distributed by agency:
          Interest from the              391         765       1,023       1,077       1,174       1,272       1,450
           Federal Financing
           Bank.................
          Interest on Government       1,208       1,716       1,654         846         838         850         862
           capital in
           enterprises..........
          Interest received by           198         169         176         183         198         215         235
           retirement and health
           benefits funds.......
          General fund payments
           to retirement and
          health benefits funds:
            Employees health      ..........       5,400       5,400       5,400       5,500       5,500       5,600
             benefits fund......
            DoD retiree health        20,391      19,415      21,185      23,101      25,196      27,461      29,887
             care fund..........
            Miscellaneous                285         345         362         427         524         487         489
             Federal retirement
             funds..............
          Other.................       1,998       5,723       4,291       4,741       4,726       5,175       5,694
        Undistributed by agency:
          Employing agency
           contributions:
            DoD retiree health        11,138      11,550      11,212      12,216      12,993      13,897      14,691
             care fund..........
                                 -----------------------------------------------------------------------------------
          Total Federal               35,609      45,083      45,303      47,991      51,149      54,857      58,908
           intrafunds...........
                                 -----------------------------------------------------------------------------------
        Trust intrafund
         transactions:
          Distributed by agency:
          Payments to railroad         4,793       5,211       5,298       5,392       5,710       6,163       5,959
           retirement...........
                                 -----------------------------------------------------------------------------------
          Total trust intrafunds       4,793       5,211       5,298       5,392       5,710       6,163       5,959
                                 -----------------------------------------------------------------------------------
        Total intrafund               40,402      50,294      50,601      53,383      56,859      61,020      64,867
         transactions...........
                                 -----------------------------------------------------------------------------------
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Contributions to
             insurance programs:
              Military                23,180      26,048      27,025      28,039      29,090      30,181      31,313
               retirement fund..
              Supplementary          162,602     175,657     187,749     197,816     212,353     231,110     246,821
               medical insurance
                Proposed          ..........  ..........      -1,649      -3,594      -5,409      -7,063      -8,916
                 Legislation
                 (non-PAYGO)....
              Hospital insurance      10,973      11,572      13,248      14,410      16,037      17,775      19,699
              Railroad social            129         132         144         159         168         186         205
               security
               equivalent fund..
              Rail industry              337         325         339         355         370         386         401
               pension fund.....
              Civilian                28,430      32,388      33,831      35,470      37,199      38,969      41,180
               supplementary
               retirement
               contributions....
              Unemployment               828         830         807         806         812         800         781
               insurance........
              Other                      782         850         882         831         898         777         767
               contributions....
                                 -----------------------------------------------------------------------------------
              Subtotal..........     227,261     247,802     262,376     274,292     291,518     313,121     332,251
                                 -----------------------------------------------------------------------------------
            Miscellaneous              1,870       1,762       1,775       1,751       1,731       1,749       1,758
             payments...........
              Proposed            ..........  ..........       2,752  ..........  ..........  ..........  ..........
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
            Subtotal............     229,131     249,564     266,903     276,043     293,249     314,870     334,009
                                 -----------------------------------------------------------------------------------
          Trust fund payments to
           Federal funds:
            Quinquennial                 350  ..........  ..........  ..........  ..........  ..........  ..........
             adjustment for
             military service
             credits............
            Other...............       1,757      24,804       1,840       1,894       1,946       2,000       2,201
              Proposed            ..........  ..........       2,315        -437        -432        -424        -424
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
            Subtotal............       2,107      24,804       4,155       1,457       1,514       1,576       1,777
                                 -----------------------------------------------------------------------------------
          Total interfunds           231,238     274,368     271,058     277,500     294,763     316,446     335,786
           distributed by agency
                                 -----------------------------------------------------------------------------------
        Undistributed by agency:
          Employer share,
           employee retirement
           (on-budget):
            Civil service             13,819      14,072      15,714      16,623      18,141      19,723      21,342
             retirement and
             disability
             insurance..........
              Proposed            ..........  ..........           2           8          15          23          31
               Legislation (non-
               PAYGO)...........
            CSRDI from Postal          4,429       3,382       3,596       3,817       4,063       4,327       4,609
             Service............
            Hospital insurance         2,722       2,839       2,965       3,053       3,180       3,344       3,439
             (contribution as
             employer) \1\ .....
            Postal employer              682         694         720         752         788         827         868
             contributions to
             FHI................
            Military retirement       16,240      16,115      17,249      18,356      19,046      19,806      20,430
             fund...............

    [[Page 283]]

            Other Federal                201         193         195         198         200         202         204
             employees
             retirement.........
                                 -----------------------------------------------------------------------------------
            Total employer            38,093      37,295      40,441      42,807      45,433      48,252      50,923
             share, employee
             retirement (on-
             budget)............
                                 -----------------------------------------------------------------------------------
            Interest received by      71,574      75,067      77,710      80,363      83,658      86,270      87,640
             on-budget trust
             funds..............
              Proposed            ..........  ..........         117         369         779       1,339       2,085
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
          Total interfund            109,667     112,362     118,268     123,539     129,870     135,861     140,648
           transactions
           undistributed by
           agency...............
                                 -----------------------------------------------------------------------------------
        Total interfund              340,905     386,730     389,326     401,039     424,633     452,307     476,434
         transactions...........
                                 -----------------------------------------------------------------------------------
      Total on-budget receipts..     381,307     437,024     439,927     454,422     481,492     513,327     541,301
                                 -----------------------------------------------------------------------------------
    Off-budget receipts:
      Trust intrafund
       transactions:
        Distributed by agency:
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Old-age, survivors,       22,056      19,358      19,962      22,034      24,227      27,110      30,069
             and disability
             insurance..........
        Undistributed by agency:
            Employer share,           11,625      12,289      13,108      13,848      14,739      15,788      16,560
             employee retirement
             (off-budget).......
            Interest received by      97,722     106,249     114,618     124,802     136,492     149,278     162,901
             off-budget trust
             funds..............
              Proposed            ..........  ..........  ..........  ..........  ..........  ..........        -775
               Legislation (non-
               PAYGO)...........
                                 -----------------------------------------------------------------------------------
      Total off-budget receipts:     131,403     137,896     147,688     160,684     175,458     192,176     208,755
                                 -----------------------------------------------------------------------------------
    Total intragovernmental          512,710     574,920     587,615     615,106     656,950     705,503     750,056
     transactions...............
                                 ===================================================================================
      PROPRIETARY RECEIPTS FROM
             THE PUBLIC
    Distributed by agency:
      Interest:
        Interest on foreign              285         210         210         210         210         210         210
         loans and deferred
         foreign collections....
        Interest on deposits in          924       1,022         871         834         797         769         767
         tax and loan accounts..
          Proposed Legislation    ..........  ..........          10          10          10          10          10
           (non-PAYGO)..........
        Other interest                11,264      12,494      13,632      14,681      16,041      17,554      19,047
         (domestic--civil) \2\ .
                                 -----------------------------------------------------------------------------------
        Total interest..........      12,473      13,726      14,723      15,735      17,058      18,543      20,034
                                 -----------------------------------------------------------------------------------
        Dividends and other            2,177       2,382       1,446       1,490       1,511       1,486       1,464
         earnings...............
      Royalties and rents.......       4,337       3,955       4,271       4,452       4,384       4,392       4,671
        Proposed Legislation      ..........  ..........         -44         192         177          58         216
         (PAYGO)................
      Sale of products:
        Sale of timber and other         393         272         279         288         296         305         314
         natural land products..
        Proposed Legislation      ..........  ..........          67          64          60          57  ..........
         (PAYGO)................
        Sale of minerals and             671          74          39          37          36          35          36
         mineral products.......
        Sale of power and other          725         705         674         644         660         628         630
         utilities..............
          Proposed Legislation    ..........  ..........          17          17          17          17          17
           (PAYGO)..............
        Other...................         102          99         115         112          99         119         115
          Proposed Legislation    ..........  ..........          14          14          14          14          14
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
        Total sale of products..       1,891       1,150       1,205       1,176       1,182       1,175       1,126
                                 -----------------------------------------------------------------------------------
      Fees and other charges for
       services and special
       benefits:
        Medicare premiums and         45,108      52,785      57,202      61,923      66,864      72,138      78,222
         other charges (trust
         funds).................
          Proposed Legislation    ..........  ..........          78          82         -43         -78         -95
           (PAYGO)..............
        Nuclear waste disposal           752         760         770         771         773         774         775
         revenues...............
        Veterans life insurance          154         141         128         116         104          92          82
         (trust funds)..........
        Other \2\ ..............       7,908      12,002      12,060      12,672      13,338      14,130      15,025
          Proposed Legislation    ..........  ..........          21          21          21          21          21
           (non-PAYGO)..........
          Proposed Legislation    ..........  ..........         762       1,091       1,306       1,561       1,900
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
        Total fees and other          53,922      65,688      71,021      76,676      82,363      88,638      95,930
         charges................
                                 -----------------------------------------------------------------------------------
      Sale of Government
       property:
        Sale of land and other           984         191         229         197         195         160         160
         real property \2\ .....
          Proposed Legislation    ..........  ..........         376         177         102          99          19
           (PAYGO)..............
        Military assistance           14,233      15,053      13,054      11,446      11,651      11,861      12,074
         program sales (trust
         funds).................

    [[Page 284]]

        Other...................         214         147         164         130         106          99          47
          Proposed Legislation    ..........  ..........          69         145         198         145          25
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
        Total sale of Government      15,431      15,391      13,892      12,095      12,252      12,364      12,325
         property...............
                                 -----------------------------------------------------------------------------------
      Realization upon loans and
       investments:
        Negative subsidies and         8,600      11,752         713         629         611         609         534
         downward reestimates...
          Proposed Legislation    ..........  ..........         -21         -21         -21         -21         -21
           (non-PAYGO)..........
          Proposed Legislation    ..........  ..........       2,859          46          46          46          46
           (PAYGO)..............
        Repayment of loans to            328  ..........  ..........  ..........  ..........  ..........  ..........
         foreign nations........
        Other...................         475          70          67          80          80          80          80
                                 -----------------------------------------------------------------------------------
        Total realization upon         9,403      11,822       3,618         734         716         714         639
         loans and investments..
                                 -----------------------------------------------------------------------------------
      Recoveries and refunds \2\       8,169       8,782       8,562       8,935       9,385       9,131       9,276
       .........................
        Proposed Legislation      ..........  ..........  ..........          58         122         126         130
         (non-PAYGO)............
        Proposed Legislation      ..........  ..........           2         492         507         373         379
         (PAYGO)................
      Miscellaneous receipt            2,980       2,008       1,949       1,961       1,972       1,983       1,994
       accounts \2\ ............
        Proposed Legislation      ..........  ..........          14          14          14          14          14
         (PAYGO)................
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts     110,783     124,904     120,659     124,010     131,643     138,997     148,198
       from the public
       distributed by agency....
                                 -----------------------------------------------------------------------------------
    Undistributed by agency:
      Other interest: Interest             2  ..........  ..........  ..........  ..........  ..........  ..........
       received from Outer
       Continental Shelf escrow
       account..................
      Rents, bonuses, and
       royalties:
        Outer Continental Shelf          967         662       2,404       1,169         875         532         474
         rents and bonuses......
        Outer Continental Shelf        6,316       6,148       6,740       8,759       8,087       9,035       8,860
         royalties..............
          Proposed Legislation    ..........  ..........          50          50          50          50          50
           (PAYGO)..............
        Arctic National Wildlife
         Refuge:
          Proposed Legislation    ..........  ..........  ..........       7,004           4       1,006           6
           (PAYGO)..............
      Sale of major assets......  ..........  ..........  ..........         323  ..........  ..........  ..........
      Other undistributed         ..........       6,850  ..........  ..........  ..........  ..........  ..........
       offsetting receipts......
                                 -----------------------------------------------------------------------------------
      Total proprietary receipts       7,285      13,660       9,194      17,305       9,016      10,623       9,390
       from the public
       undistributed by agency..
                                 -----------------------------------------------------------------------------------
    Total proprietary receipts       118,068     138,564     129,853     141,315     140,659     149,620     157,588
     from the public ...........
                                 ===================================================================================
       OFFSETTING GOVERNMENTAL
              RECEIPTS
    Distributed by agency:
      Regulatory fees...........       5,759       6,108       7,032       7,235       7,527       7,866       8,158
        Proposed Legislation      ..........  ..........         -63         -62         -62         -63         -64
         (non-PAYGO)............
        Proposed Legislation      ..........  ..........          65          65          65          65          65
         (PAYGO)................
      Other.....................         159         143         144         144         145         124         125
        Proposed Legislation      ..........  ..........          27          28          28          29          30
         (PAYGO)................
    Undistributed by agency:
      Spectrum auction proceeds.         111       6,900      11,850       2,158         100         100  ..........
        Proposed Legislation      ..........         130         452         405         550         550         825
         (PAYGO)................
                                 -----------------------------------------------------------------------------------
      Total offsetting                 6,029      13,281      19,507       9,973       8,353       8,671       9,139
       governmental receipts....
                                 ===================================================================================
    Total offsetting receipts...     636,807     726,765     736,975     766,394     805,962     863,794     916,783
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes provision for covered Federal civilian employees and military personnel.
    \2\ Includes both Federal funds and trust funds.