[Analytical Perspectives]
[Table of Contents]
[From the U.S. Government Printing Office, www.gpo.gov]


 
                             TABLE OF CONTENTS


                                                                                                                                                 Page

List of Charts and Tables..................................................................................................................            v

Introduction
 
     1.           Introduction.............................................................................................................            3
 
Performance and Management Assessments
 
     2.           Budget and Performance Integration.......................................................................................            9
 
Crosscutting Programs
 
     3.           Homeland Security Funding Analysis.......................................................................................           19
 
     4.           Strengthening Federal Statistics.........................................................................................           37
 
     5.           Research and Development.................................................................................................           45
 
     6.           Federal Investment.......................................................................................................           55
 
     7.           Credit and Insurance.....................................................................................................           67
 
     8.           Aid to State and Local Governments.......................................................................................          101
 
     9.           Integrating Services with Information Technology.........................................................................          153
 
    10.           Federal Drug Control Funding.............................................................................................          159
 
    11.           California-Federal Bay-Delta Program Budget Crosscut (CALFED)............................................................          161
 
Economic Assumptions and Analyses
 
    12.           Economic Assumptions.....................................................................................................          165
 
    13.           Stewardship..............................................................................................................          175
 
    14.           National Income and Product Accounts.....................................................................................          203
 
Budget Reform Proposals
 
    15.           Budget Reform Proposals..................................................................................................          211
 
Federal Borrowing and Debt
 
    16.           Federal Borrowing and Debt...............................................................................................          223
 

[[Page ii]]
Federal Receipts and Collections
 
    17.           Federal Receipts.........................................................................................................          239
 
    18.           User Charges and Other Collections.......................................................................................          271
 
    19.           Tax Expenditures.........................................................................................................          285
 
Dimensions of the Budget
 
    20.           Comparison of Actual to Estimated Totals.................................................................................          331
 
    21.           Outlays to the Public, Gross and Net.....................................................................................          339
 
    22.           Trust Funds and Federal Funds............................................................................................          341
 
    23.           Off-Budget Federal Entities and Non-Budgetary Activities.................................................................          357
 
    24.           Federal Employment and Compensation......................................................................................          361
 
Current Services Estimates
 
    25.           Current Services Estimates...............................................................................................          371
 
The Budget System and Concepts
 
    26.           The Budget System and Concepts...........................................................................................          391
 
Detailed Functional Tables
 
    27.           Budget Authority and Outlays by Function, Category, and Program..........................................................       CD-ROM
 
Federal Programs by Agency and Account
 
    28.           Federal Programs by Agency and Account...................................................................................       CD-ROM
 
 


[[Page iii]]
                                     

                                     
......................................................................
 
                        LIST OF CHARTS AND TABLES
                                     

......................................................................




[[Page v]]

 
                        LIST OF CHARTS AND TABLES


                             LIST OF CHARTS
 
                                                                   Page
 
   2-1.....   Program Ratings are Improving.....................      15
   4-1.....   ICSP Statistical Quality and Program Performance        38
              Dimensions........................................
   4-2.....   Most Recent PART Summary Ratings for Statistical        40
              Programs..........................................
   5-1.....   Research in the American Competitiveness                45
              Initiative........................................
   5-2.....  Scores of R&D PART Assessments.....................      47
   7-1.....   Fannie Mae and Freddie Mac Combined Retained            74
              Mortgage Portfolios Year-End 2005.................
   7-2.....   Face Value of Federal Credit Outstanding..........      87
   13-1....   The Financial Condition of the Federal Government      177
              and the Nation....................................
   13-2....   Net Federal Liabilities...........................     180
   13-3....   Health Care Cost Alternatives.....................     185
   13-4....   Effect of Entitlement Savings.....................     186
   13-5....   Alternative Receipts Projections..................     186
   13-6....  Alternative Productivity Assumptions...............     187
   13-7....  Alternative Fertility Assumptions..................     187
   13-8....   Alternative Immigration Assumptions...............     188
   13-9....   Alternative Mortality Assumptions.................     188
   13-10...   Sources of the Gross Tax Gap......................     194
   17-1....   Major Provisions of the Tax Code Under the 2001,       240
              2003, 2004 and 2006 Enacted Tax Relief............
   20-1....   Illustrative Range of Budget Outcomes.............     337
   24-1....   Post Cold War End Strength and Spending...........     362
   24-2....   DoD Direct Compensation Costs.....................     363
   26-1....  Relationship of Budget Authority to Outlays for         402
              2008..............................................
 
 


                             LIST OF TABLES
 
                                                                 Page
 
Crosscutting Programs
 
  Homeland Security Funding Analysis:
   3-1.....   Homeland Security Funding by Agency...........          20
   3-2.....  Homeland Security Funding by National Strategy           21
              Mission Area..................................
   3-3.....  Intelligence and Warning Funding...............          22
   3-4.....  Border and Transportation Security Funding.....          23
   3-5.....  Domestic Counterterrorism Funding..............          25
   3-6.....  Protecting Critical Infrastructure and Key               26
              Assets Funding................................
   3-7.....  Defending Against Catastrophic Threats Funding.          28
   3-8.....  Emergency Preparedness and Response Funding....          29
   3-9.....  Discretionary Fee-Funded Homeland Security               32
              Activities by Agency..........................
   3-10....  Mandatory Homeland Security Funding by Agency..          32
   3-11....  Baseline Estimates--Total Homeland Security              33
              Funding by Agency.............................
   3-12....  Homeland Security Funding by Budget Function...          34
   3-13....  Baseline Estimates--Homeland Security Funding            35
              by Budget Function............................
   ........  Appendix--Homeland Security Mission Funding by       CD-ROM
              Agency and Budget Account.....................


[[Page vi]]


  Strengthening Federal Statistics:
 
   4-1.....   2006-2008 Budget Authority for Principal                43
              Statistical Agencies..........................
 
  Research and Development:
   5-1.....  Federal Research and Development...............          51
   5-2.....  Federal Science and Technology Budget..........          53
   5-3.....  Agency Detail of Selected Interagency R&D                54
              Efforts.......................................
 
  Federal Investment:
   6-1.....  Composition of Federal Investment Outlays......          57
   6-2.....  Federal Investment Budget Authority and                  58
              Outlays: Grant and Direct Federal Programs....
   6-3.....  Summary of PART Ratings and Scores for Direct            61
              Federal Investment Programs...................
   6-4.....  Net Stock of Federally Financed Physical                 64
              Capital.......................................
   6-5.....  Net Stock of Federally Financed Research and             65
              Development...................................
   6-6.....  Net Stock of Federally Financed Education                66
              Capital.......................................
 
  Credit and Insurance:
 
      Text Tables:
               Summary of PART Scores.......................          69
               Largest Ten Claims Against the PBGC's Single-          83
              Employer Insurance Program, 1975-2006.........
   7-1.....  Estimated Future Cost of Outstanding Federal             87
              Credit Programs...............................
   7-2.....  Reestimates of Credit Subsidies on Loans                 89
              Disbursed Between 1992-2006...................
   7-3.....  Direct Loan Subsidy Rates, Budget Authority,             91
              and Loan Levels, 2006-2008....................
   7-4.....  Loan Guarantee Subsidy Rates, Budget Authority,          92
              and Loan Levels, 2006-2008....................
   7-5.....  Summary of Federal Direct Loans and Loan                 93
              Guarantees....................................
   7-6.....  Direct Loan Writeoffs and Guaranteed Loan                94
              Terminations for Defaults.....................
   7-7.....  Appropriations Acts Limitations on Credit Loan           96
              Levels........................................
   7-8.....  Face Value of Government-Sponsored Lending.....          98
   7-9.....  Lending and Borrowing By Government-Sponsored            99
              Enterprises (GSEs)............................
   7-10....  Direct Loan Transactions of the Federal              CD-ROM
              Government....................................
   7-11....  Guaranteed Loan Transactions of the Federal          CD-ROM
              Government....................................
 
  Aid to State and Local Governments:
 
   8-1.....  Federal Grant Outlays by Agency................         101
   8-2.....  Summary of PART Ratings and Scores for Grants           105
              to State and Local Governments................
   8-3.....  Trends in Federal Grants to State and Local             107
              Governments...................................
   8-4.....  Federal Grants to State and Local Governments--         110
              Budget Authority and Outlays..................
   8-5.....  Summary of Programs by Agency, Bureau, and              119
              Program.......................................
   8-6.....  Summary of Programs by State...................         120
   8-7.....  School Breakfast Program.......................         121
   8-8.....  National School Lunch Program..................         122
   8-9.....  Special Supplemental Nutrition Program for              123
              Women, Infants, and Children (WIC)............
   8-10....  Child and Adult Care Food Program..............         124
   8-11....  State Administrative Matching Grants for Food           125
              Stamp Program.................................
   8-12....  Title I Grants to Local Educational Agencies...         126
   8-13....  Improving Teacher Quality State Grants.........         127
   8-14....  Special Education--Grants to States............         128
   8-15....  Rehabilitation Services--Vocational                     129
              Rehabilitation Grants to States...............
   8-16....  State Children's Health Insurance Program......         130
   8-17....  Grants to States for Medicaid..................         131
   8-18....  Temporary Assistance for Needy Families (TANF)--        132
              Family Assistance Grants......................
   8-19....  Child Support Enforcement--Federal Share of             133
              State and Local Administrative Costs and
              Incentives....................................
   8-20....  Low Income Home Energy Assistance Program......         134

[[Page vii]]

 
   8-21....  Child Care and Development Block Grant.........         135
   8-22....  Child Care and Development Fund--Mandatory.....         136
   8-23....  Child Care and Development Fund--Matching......         137
   8-24....  Head Start.....................................         138
   8-25....  Foster Care--Title IV-E........................         139
   8-26....  Adoption Assistance............................         140
   8-27....  Social Services Block Grant....................         141
   8-28....  Homeland Security Grant Program................         142
   8-29....  Disaster Grants--Public Assistance                      143
              (Presidentially Declared Disasters)...........
   8-30....  Public Housing Operating Fund..................         144
   8-31....  Section 8 Housing Choice Vouchers..............         145
   8-32....  Public Housing Capital Fund....................         146
   8-33....  Community Development Block Grants.............         147
   8-34....  Mineral Leasing and Associated Payments........         148
   8-35....  Airport Improvement Program....................         149
   8-36....  Highway Planning and Construction..............         150
   8-37....  Capital Investment Grants--Fixed Guideway               151
              Modernization.................................
   8-38....  Federal Transit Formula Grants and Research....         152
 
  Integrating Services with Information Technology:
   9-1.....  Effectiveness of Agency's IT Management and E-       CD-ROM
              Gov Processes.................................
   9-2.....  Management Guidance............................      CD-ROM
   9-3.....  Agencies with IT Investments on the Management       CD-ROM
              Watch List....................................
   9-4.....  Status of the Presidential E-Government              CD-ROM
              Initiatives...................................
   9-5.....  Lines of Business (LoB) Update.................      CD-ROM
 
  Federal Drug Control Funding:
   10-1....  Federal Drug Control Funding, FY 2006-2008.....         159
 
  California-Federal Bay-Delta Program Budget Crosscut (CALFED):
 
      Text Table:
                 CALFED-Related Federal Funding Budget               161
              Crosscut......................................
             CALFED FY 1998-2008 Budget Crosscut Methodology      CD-ROM
             CALFED Federal Agency Funding--Summary by            CD-ROM
              Category and Agency Breakout..................
             CALFED Project Descriptions....................      CD-ROM
             CALFED Fiscal Years 2005-2006 Federal Funding..      CD-ROM
             CALFED Fiscal Years 2007-2008 Funding Under New      CD-ROM
              and Old Authority.............................
             CALFED State Agency Funding....................      CD-ROM
             Department of the Interior Certification of          CD-ROM
              Budget Numbers................................
Economic Assumptions and Analyses
 
  Economic Assumptions:
   12-1....  Economic Assumptions...........................         168
   12-2....  Comparison of Economic Assumptions.............         170
   12-3....  Comparison of Economic Assumptions in the 2007          171
              and 2008 Budgets..............................
   12-4....  Adjusted Structural Balance....................         171
   12-5....  Sensitivity of the Budget to Economic                   173
              Assumptions...................................
 
  Stewardship:
   13-1....  Government Assets and Liabilities..............         181
   13-2....  Long-Run Budget Projections....................         184
   13-3....  Benefits in Excess of Future Taxes and                  192
              Premiums--Actuarial Present Values............
   13-4....  Sources of the Tax Gap from Income                      194
              Underreporting................................
   13-5....  National Wealth................................         196
   13-6....  Trends in National Wealth......................         197
   13-7....  Economic and Social Indicators.................         198
 

[[Page viii]]

 
  National Income and Product Accounts:
   14-1....  Federal Transactions in the National Income and         205
              Product Accounts, 1997-2008...................
   14-2....  Relationship of the Budget to the Federal               207
              Sector, NIPA's................................
Budget Reform Proposals
 
  Budget Reform Proposals:
   15-1....  Mandatory Proposals Subject to PAYGO...........         211
   15-2....  Discretionary Caps and Adjustments.............         213
   15-3....  Program Integrity Base and Cap Adjustments.....         214
   15-4....  Direct Savings Estimated from 2008 Program              215
              Integrity Funding.............................
   15-5....  Transportation Category for Highways and Mass           216
              Transit Spending..............................
Federal Borrowing and Debt
 
  Federal Borrowing and Debt:
   16-1....  Trends in Federal Debt Held by the Public......         223
   16-2....  Federal Government Financing and Debt..........         225
   16-3....  Agency Debt....................................         228
   16-4....  Debt Held by Government Accounts...............         230
   16-5....  Federal Funds Financing and Change in Debt              234
              Subject to Statutory Limit....................
   16-6....  Foreign Holdings of Federal Debt...............         235
Federal Receipts and Collections
 
  Federal Receipts:
   17-1....  Receipts by Source--Summary....................         239
   17-2....  Effect on Receipts of Changes in the Social             239
              Security Taxable Earnings Base................
   17-3....  Effect of Proposals on Receipts................         266
   17-4....  Receipts by Source.............................         269
 
  User Charges and Other Collections:
   18-1....  Gross Outlays, User Charges, Other Offsetting           271
              Collections and Receipts from the Public, and
              Net Outlays...................................
   18-2....  Total User Charge Collections..................         274
   18-3....  User Fee and Other User Charge Proposals.......         276
   18-4....  Offsetting Collections and Receipts from the            281
              Public........................................
   18-5....  Offsetting Receipts by Type....................         282
 
  Tax Expenditures:
   19-1....  Estimates of Total Income Tax Expenditures.....         287
   19-2....  Estimates of Tax Expenditures for the Corporate         291
              and Individual Income Taxes...................
   19-3....  Income Tax Expenditures Ranked by Total 2008-           296
              2012 Projected Revenue Effect.................
   19-4....  Present Value of Selected Tax Expenditures for          299
              Activity in Calendar Year 2006................
 
  Appendix A: Treasury Review of the Tax Expenditure                 313
   Presentation.............................................
 
    Appendix Tables:
 
         1.  Comparison of Current Tax Expenditures with             322
              Those Implied by a Comprehensive Income Tax...
         2.  Comparison of Current Tax Expenditures with             323
              Those Implied by a Comprehensive Consumption
              Tax...........................................
         3.  Revised Tax Expendixture Estimates.............         323
 
  Appendix B: Performance Measures and the Economic Effects          324
   of Tax Expenditures......................................
 
 
Dimensions of the Budget
 
  Comparison of Actual to Estimated Totals:
   20-1....  Comparison of Actual 2006 Receipts with the             331
              Initial Current Services Estimates............
   20-2....  Comparison of Actual 2006 Outlays with the              332
              Initial Current Services Estimates............
   20-3....  Comparison of the Actual 2006 Deficit with the          333
              Initial Current Services Estimate.............

[[Page ix]]

 
   20-4....  Comparison of Actual and Estimated Outlays for          334
              Mandatory and Related Programs Under Current
              Law...........................................
   20-5....  Reconciliation of Final Amounts for 2006.......         335
   20-6....  Comparison of Estimated and Actual Surpluses or         336
              Deficits Since 1982...........................
   20-7....  Differences Between Estimated and Actual                337
              Surpluses or Deficits for Five-Year Budget
              Estimates Since 1982..........................
 
  Outlays to Public, Gross and Net:
   21-1....  Total Outlays, Gross and Net of Offsetting              339
              Collections and Receipts from the Public, by
              Agency, 2006-2008.............................
 
  Trust Funds and Federal Funds:
   22-1....  Receipts, Outlays, and Surplus or Deficit by            342
              Fund Group....................................
   22-2....  Income, Outgo, and Balances of Trust Funds              343
              Group.........................................
   22-3....  Relationship of Total Federal Fund and Trust            344
              Fund Receipts to Unified Budget Receipts,
              Fiscal Year 2006..............................
   22-4....  Income, Outgo, and Balances of Major Trust              346
              Funds.........................................
   22-5....  Income, Outgo, and Balances of Selected Federal         353
              Funds.........................................
 
  Off-Budget Federal Entities and Non-Budgetary Activities:
   23-1....  Comparison of Total, On-Budget, and Off-Budget          358
              Transactions..................................
 
  Federal Employment and Compensation:
 
      Text Table:                                             ..........
     ......    Overseas Staffing Under Chief of Mission              363
              Authority.....................................
   24-1....  Federal Civilian Employment in the Executive            364
              Branch........................................
   24-2....  Total Federal Employment (As measured by total          365
              positions filled).............................
   24-3....  Total Federal Employment (As measured by Full-          366
              Time Equivalents).............................
   24-4....  Personnel Compensation and Benefits............         367
Current Services Estimates
 
  Current Services Estimates:
   25-1....  Baseline Category Totals.......................         371
   25-2....  Impact of Budget Policy........................         372
   25-3....  Alternative Baseline Assumptions...............         374
   25-4....  Summary of Economic Assumptions................         374
   25-5....  Beneficiary Projections for Major Benefit               375
              Programs......................................
   25-6....  Impact of Regulations, Expiring Authorizations,         376
              and Other Assumptions in the Baseline.........
   25-7....  Baseline Receipts by Source....................         382
   25-8....  Change in Baseline Outlay Estimates by Category         383
   25-9....  Current Services Outlays by Function...........         384
   25-10...  Current Services Outlays by Agency.............         385
   25-11...  Current Services Budget Authority by Function..         386
   25-12...  Current Services Budget Authority by Agency....         387
   25-13...  Current Services Budget Authority by Function,       CD-ROM
              Category and Program..........................
   25-14...  Current Services Outlays by Function, Category       CD-ROM
              and Program...................................
The Budget System and Concepts
 
  The Budget System and Concepts:
   26-1....  Totals for the Budget and the Federal                   395
              Government....................................
Detailed Functional Tables
 
  Detailed Functional Tables:
   27-1....  Budget Authority and Outlays by Function,            CD-ROM
              Category and Program..........................
Federal Programs by Agency and Account
 
  Federal Programs by Agency and Account:
   28-1....  Federal Programs by Agency and Account.........      CD-ROM
 

