[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.