    [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 in this
    volume in Chapter 17, ``Federal Receipts,'' 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 examples of these charges 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 2009, total offsetting
    collections and receipts from the public are estimated to be $330.2
    billion, and total user charges are estimated to be $256.1 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   -----------------------
                                                                                     2007        2008        2009
    ----------------------------------------------------------------------------------------------------------------
    Gross outlays...............................................................     3,050.9     3,269.6     3,437.6

    Offsetting collections and receipts from the public:
      User charges \1\..........................................................       229.5       248.0       252.1
      Other.....................................................................        91.2        90.4        78.1
                                                                                 -----------------------------------
    Subtotal, offsetting collections and receipts from the public...............       320.7       338.4       330.2
                                                                                 -----------------------------------
    Net outlays.................................................................     2,730.2     2,931.2     3,107.4

    ----------------------------------------------------------------------------------------------------------------
    \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....................        229.5        248.0        252.1
      Receipts...............................................................          3.9          3.5          4.0
                                                                              --------------------------------------
        Total, User charges..................................................        233.3        251.5        256.1

    [[Page 272]]

                                  USER CHARGES

                         I. Introduction and Background

      The Federal Government often assesses user charges on 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 $233.3 billion in 2007, and are estimated
    to increase to $251.5 billion in 2008 and to $256.1 billion in 2009,
    growing to an estimated $303.8 billion in 2013, 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 2009, growing to an estimated $19.7 billion in 2013.

      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

    [[Page 273]]

    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 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 $4.0 billion in 2009 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 $252.1 billion in 2009, 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.
      As shown in Table 18-4, an estimated $157.2 billion of user charges
    for 2009 are credited directly to expenditure accounts, and are
    generally available for expenditure when they are collected, without
    further action by the Congress. An estimated $94.9 billion of user
    charges for 2009 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 $256.1 billion in 2009,
    increasing to $303.8 billion in 2013. User charge collections by the
    Postal Service

    [[Page 274]]

                                       Table 18-2.  TOTAL USER CHARGE COLLECTIONS
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimates
                                                 Actual  -----------------------------------------------------------
                                                  2007      2008      2009      2010      2011      2012      2013
    ----------------------------------------------------------------------------------------------------------------

                     Receipts

    Judicial Branch: Filing fees, U. S. courts       189       189       193       209       214       219       224
    Department of Agriculture: Agricultural          472       537       560       577       594       612       630
     quarantine inspection fees...............
    Department of the Interior: Abandoned mine       305       295       299       305       315       317       287
     reclamation fund.........................
    Department of State: Immigration,              1,067       821       915     1,036     1,033     1,029     1,029
     passport, and consular fees..............
    Department of the Treasury: Premiums,       ........  ........       116       327       554     1,336       773
     terrorism risk insurance program.........
    Corps of Engineers: Harbor maintenance         1,262     1,353     1,446     1,556     1,685     1,825     1,969
     fees.....................................
    Other.....................................       562       330       446       402       408       443       415
                                               ---------------------------------------------------------------------
      Subtotal, receipts......................     3,857     3,525     3,975     4,412     4,803     5,781     5,327

     Offsetting Collections and Receipts from
                    the Public
    Discretionary
      Department of Agriculture: Food safety         299       292       307       285       289       288       290
       inspection and other charges...........
      Department of Commerce: Patent and           1,929     2,050     2,209     2,334     2,509     2,770     3,029
       trademark, fees for weather services,
       and other charges......................
      Department of Defense: Commissary and       10,290    10,301    10,296    10,285    10,285    10,285    10,285
       other charges..........................
      Department of Energy: Federal Energy           998     1,601     1,548     1,486     1,499     1,492     1,484
       Regulation Commission, power marketing,
       and other charges......................
      Department of Health and Human Services:     1,329     1,501     1,398     1,247     1,256     1,250     1,246
       Food and Drug Administration, Centers
       for Medicare and Medicaid Services, and
       other charges..........................
      Department of Homeland Security: Border      2,474     2,258     2,486     2,551     2,636     2,724     2,815
       and Transportation Security and other
       charges................................
      Department of the Interior: Minerals           660       723       858       815       841       835       817
       Management Service and other charges...
      Department of Justice: Charges for             293       370       293       281       284       282       281
       bankruptcy oversight and other charges.
      Department of State: Passport and other      1,189     2,138     2,216     2,283     2,353     2,424     2,498
       charges................................
      Department of Transportation: Pipeline         158       161       221     8,763     9,064     9,606    10,167
       safety, aviation, and other charges....
      Department of the Treasury: Sale of          2,430     2,762     2,741     2,631     2,654     2,641     2,627
       commemorative coins and other charges..
      Department of Veterans Affairs: Medical      2,334     2,448     2,579     2,738     2,851     2,959     3,136
       care and other charges.................
      General Services Administration: Federal       155        82        42        40        41        40        40
       buildings fund and other charges.......
      Social Security Administration: State          119       135       145       159       184       166       193
       supplemental fees, supplemental
       security income........................
      Federal Communications Commission:             381       397       423       407       409       408       405
       Regulatory fees........................
      Federal Trade Commission: Regulatory           167       165       191       183       185       184       183
       fees...................................
      Nuclear Regulatory Commission:                 669       779       855       825       832       830       828
       Regulatory fees........................
      Securities and Exchange Commission:          1,539     1,147     1,332     1,280     1,291     1,286     1,280
       Regulatory fees........................
      All other agencies, discretionary user         783       330       170       162       163       162       159
       charges................................
                                               ---------------------------------------------------------------------
        Subtotal, discretionary user charges..    28,196    29,640    30,310    38,755    39,626    40,632    41,763

    Mandatory
      Department of Agriculture: Crop              2,053     1,983     3,054     3,057     2,956     2,874     2,875
       insurance and other charges............
      Department of Defense: Commissary              992       816       779       599       601       558       558
       surcharge and other charges............
      Department of Energy: Proceeds from the      4,540     4,559     4,689     4,500     4,636     4,609     4,499
       sale of energy, nuclear waste disposal,
       and other charges......................
      Department of Health and Human Services:    55,017    59,325    62,187    64,196    67,302    71,418    77,408
       Medicare Part B and Part D insurance
       premiums and other charges.............
      Department of Homeland Security:             7,715     8,671     9,230     9,060     9,390     9,677     9,547
       Customs, immigration, and other charges
      Department of the Interior: Recreation       4,892     5,666     6,552     7,799     6,481     5,894     6,604
       and other charges......................
      Department of Justice: Federal Prison          508       528       570       584       597       611       625
       Commissary fees and other charges......
      Department of Labor: Insurance premiums      3,629     3,830     5,296     7,697     8,436     8,970     9,313
       to guaranty private pensions and other
       charges................................
      Department of the Treasury: Bank             1,077     1,137     1,197     1,242     1,284     1,329     1,376
       regulation, and other charges..........
      Department of Veterans Affairs: Veterans     2,374     2,342     2,220     2,222     2,194     2,224     2,220
       life insurance and other charges.......
      Office of Personnel Management: Federal     11,652    12,309    13,023    13,912    14,943    15,880    16,994
       employee health and life insurance fees
      Federal Deposit Insurance Corporation:         592     5,546     9,947    13,141    14,462    14,426    13,865
       Deposit insurance and other charges....
      National Credit Union Administration:          440       390       434       446       453       481       500
       Credit union share insurance and other
       charges................................
      Postal Service: Fees for postal services    73,891    76,961    78,322    80,395    82,784    84,822    86,254
      Tennessee Valley Authority: Proceeds         9,451    10,106    10,523    10,573    10,124    10,509    10,619
       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:           6,850       300       200       200       175       220       215
       Spectrum auction receipts..............
      Outer Continental Shelf receipts and         6,763    11,200    10,369    10,675    11,131    11,166    12,014
       other collections......................
      All other agencies, mandatory user           1,990       845     1,118     1,143     1,186     1,195     1,249
       charges................................
                                               ---------------------------------------------------------------------
        Subtotal, mandatory user charges......   201,276   218,314   221,768   238,445   239,139   247,869   256,741
                                               ---------------------------------------------------------------------
        Subtotal, user charges that are          229,472   247,954   252,078   277,200   278,765   288,501   298,504
         offsetting collections and receipts
         from the public......................
                                               ---------------------------------------------------------------------
    TOTAL, User charges.......................   233,329   251,479   256,053   281,612   283,568   294,282   303,831
    ----------------------------------------------------------------------------------------------------------------

    [[Page 275]]

    and for Medicare premiums are the largest and are estimated to be more
    than half of total user charge
    collections in 2009.

                           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
    2009, increasing to $19.7 billion in 2013. These amounts are collections
    and receipts only. They do not include related spending.

    A. Discretionary User Charge Proposals

    1. Offsetting collections

    Department of Agriculture: Forest Service

       Fees for ecosystem services. The Budget reflects the President's
    commitment to cooperative conservation and includes Ecosystems Services
    Demonstration Projects that bring new partners together with the Forest
    Service in a broad effort to advance market-based conservation. The
    Budget provides the Secretary of Agriculture with the authority to
    retain the proceeds of payments made by willing entities such as
    municipalities for services derived from a particular set of management
    activities that restore, enhance, and protect ecosystem function on
    National Forest System lands. Examples of the outcomes of these
    management activities include protecting water quality, restoring long
    leaf pine forests, or reducing the risk of catastrophic wildfires.

    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 2009 savings for these
    proposals is estimated to be $1,184 million.

    Department of Health and Human Services: Food and Drug Administration
    (FDA)

       Drug review user fees for generic animal drugs. The purpose of the
    user fee is to improve review times of generic animal drug applications.
    The Budget proposes a new user fee to generate additional resources to
    support FDA generic animal drug review activities. The proposed generic
    drug user fee would be targeted to improve review times and reduce the
    current backlog of generic animal drug applications.
       Generic drug review activities fees. 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 current backlog of
    applications.
       Follow-on biologics user fees. The Budget proposes to establish a new
    regulatory pathway for FDA to approve follow-on biologics (FOB). FOBs
    are generic versions of therapies that contain proteins derived from
    living cells. The Administration proposal would protect patient safety,
    promote innovation, and include a financing structure to cover the costs
    of this activity through user fees. The 2009 Budget does not include
    user fee estimates.
       Animal drug user fee reauthorization. The Animal Drug User Fee Act
    will expire on October 1, 2008. This law authorizes FDA to assess and
    collect fees associated with the pre-market review of animal drugs. The
    Administration supports reauthorizing the collection and spending of
    these fees.

    Centers for Medicare and Medicaid Services

       Survey and certification user fees. The Budget proposes a 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.

    Department of the Interior

       Bureau of Land Management: 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 user fees for the mandatory funding provided by the Act.
    The proposed fees are expected to generate at least $34 million per year
    beginning in 2009, thereby reducing the cost to taxpayers for operating
    a program that benefits specific users. Notwithstanding the fee
    prohibition, a comparable oil and gas permitting fee was enacted as part
    of the 2008 Consolidated Appropriations Act, but this fee is only in
    place for fiscal year 2008. The Administration is proposing a more
    permanent solution through a repeal of the Energy Policy Act fee
    prohibition.

    [[Page 276]]

                                Table 18-3.  USER FEE AND OTHER USER CHARGE PROPOSALS \1\
                                     (Estimated collections in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2008     2009     2010     2011     2012     2013   2009-2013
    ----------------------------------------------------------------------------------------------------------------

          OFFSETTING COLLECTIONS AND RECEIPTS

    DISCRETIONARY:

    1. Offsetting collections

    Department of Agriculture
      Forest Service: Fees for ecosystem services..  .......       10  .......  .......  .......  .......        10

    Department of Defense
      Medical care enrollment fees and deductible..  .......    1,184    2,598    3,703    4,043    4,397    15,925

    Department of Health and Human Services
      Food and Drug Administration:
        Drug review user fees for generic animal     .......        5        5        5        5        5        25
         drugs.....................................
        Generic drug review activities fees........  .......       17       17       17       17       17        84
        Follow-on biologics user fees..............  .......  .......  .......  .......  .......  .......  .........
        Animal drug user fee reauthorization.......  .......       14       14       14       14       15        70
      Centers for Medicare and Medicaid Services:    .......       35       34       34       34       34       171
       Survey and certification user fees..........

    Department of the Interior
      Bureau of Land Management: Repeal Energy Act   .......       34       34       34       34       34       170
       fee prohibition.............................

    Department of Transportation
      Federal Aviation Administration: User fee      .......  .......    8,550    8,849    9,392    9,953    36,744
       proposal....................................

    2. Offsetting receipts

    Department of Housing and Urban Development
      Office of Federal Housing Enterprise           .......      -67      -64      -65      -65      -70      -331
       Oversight...................................
                                                    ----------------------------------------------------------------
          Subtotal, discretionary user charge        .......    1,232   11,187   12,590   13,473   14,384    52,867
           proposals...............................

    MANDATORY:

    1. Offsetting collections

    Department of Labor
      Pension Benefit Guaranty Corporation premiums  .......      380    2,217    2,093    2,127    2,056     8,873

    Federal Housing Enterprise Regulator
      Government-Sponsored Enterprises regulatory    .......      107      110      113      116      119       565
       fee.........................................

    Federal Housing Finance Board
      Federal Home Loan Bank fees..................  .......      -38      -40      -41      -43      -43      -205

    2. Offsetting receipts

    Department of Agriculture
      Food Safety and Inspection Service user fees   .......       96       98      100      102      104       500
       \2\.........................................
      Grain, Inspection, Packers, and Stockyards     .......       27       30       30       31       32       150
       Administration user fees \2\................
      Animal and Plant Health Inspection Service     .......       20       27       27       28       29       131
       user fees \2\...............................
      Agricultural Marketing Service inspection and  .......       10       10       10       10       10        50
       grading services............................
      Federal crop insurance fees \2\..............  .......  .......       15       15       15       15        60

    Department of Health and Human Services
      Food and Drug Administration: Re-inspection    .......       27       28       28       29       30       142
       fees and export certification fees \2\......
      Centers for Medicare and Medicaid: Additional  .......      410      730    1,000    1,320    1,720     5,180
       Medicare premiums...........................

    Department of Homeland Security
      Passenger security fee surcharge to fund       .......      426      426      426      426  .......     1,704
       baggage screening systems...................

    Department of Housing and Urban Development
      Government-Sponsored Enterprises oversight     .......        6        6        6        6        6        30
       fees........................................

    Department of the Interior
      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
      Require upfront payment of coal bonus bid
       receipts:
        Collections for payment to States..........  .......      385      676      -48     -506     -225       282
        Collections deposited in the Treasury......  .......      385      676      -48     -506     -225       282
      Amend Bureau of Land Management's Federal      .......        5       10       50       50       55       170
       land sale authority.........................

    Department of Labor
      Foreign labor certification fees.............  .......       95       95       95       95       95       475

    Department of Veterans Affairs
      Pharmacy co-pay increase \2\.................  .......      335      292      287      334      355     1,603
      Income-based medical care enrollment fees \2\  .......  .......      129      127      130      128       514
      Third-party insurance co-payment offset \2\..  .......       44       44       44       43       43       218

    Corps of Engineers--Civil Works
      Additional recreation fees...................  .......        9       17       17       17       17        77

    Environmental Protection Agency
      Pesticide user fees \2\......................  .......       48       48       47       47       59       249
      Pre-manufacture notice user fees \2\.........  .......        4        8        8        8        8        36

    [[Page 277]]

    Commodity Futures Trading Commission
      Transaction fees \2\.........................  .......       96      100      103      107      111       517

    Federal Communications Commission
      Spectrum license fee authority...............       50      150      300      300      400      450     1,600
      Prospective ancillary terrestrial component         30       60      100      125      125      125       535
       spectrum license fees.......................
      Extend spectrum auction authority............  .......  .......  .......  .......      200      200       400
      Domestic satellite spectrum auctions.........      250      100      100       75       20       15       310
                                                    ----------------------------------------------------------------
        Subtotal, mandatory user charge proposals..      330    3,187   13,256    4,993    5,737    5,295    32,468
                                                    ----------------------------------------------------------------
        Subtotal, user charge proposals that are         330    4,419   24,443   17,583   19,210   19,679    85,335
         offsetting collections and receipts.......

                 GOVERNMENTAL RECEIPTS

    Department of the Interior
      Migratory bird hunting and conservation        .......       14       14       14       14       14        70
       stamps......................................

    Department of Transportation
      Federal Aviation Administration overflight     .......  .......      -54      -56      -58      -60      -228
       fees........................................

    Corps of Engineers--Civil Works
      Inland waterways trust fund (net impact).....  .......       99      103      104      136      103       545
                                                    ----------------------------------------------------------------
        Subtotal, governmental receipts user charge  .......      113       63       62       92       57       387
         proposals.................................
                                                    ----------------------------------------------------------------

    Total, user charge proposals...................      330    4,532   24,506   17,645   19,302   19,736    85,722
    ----------------------------------------------------------------------------------------------------------------
    \1\ A negative sign indicates a decrease in collections.
    \2\ If enacted, the Administration will work to classify the collections as discretionary offsets beginning in
      2010.

    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
    $11.5 billion in 2007, is largely based on taxes on the price of airline
    tickets. This system does not have a direct relationship between the
    taxes paid by users and the air traffic control services provided by the
    FAA. Under the reauthorization proposal, FAA would collect user fees
    from commercial aviation operators for air traffic control (ATC)
    services. Implementing user fees for ATC services creates 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 2010, and estimates
    FAA will collect $8.6 billion in user fees during the first year.

    2. Offsetting receipts

    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.

    B. Mandatory User Charge Proposals

    1. Offsetting collections

    Department of Labor

       Pension Benefit Guaranty Corporation (PBGC) premiums. While the
    Deficit Reduction Act of 2005 and the Pension Protection Act of 2006
    made significant structural changes to the retirement system, they did
    not fully address the long-term challenges facing PBGC. Further reforms
    are needed to address the current $14 billion gap between PBGC's
    liabilities and its assets. The Budget proposes to give PBGC's Board the
    authority to raise premiums to produce the revenue necessary to meet
    expected future claims and retire PBGC's deficit over ten years. Under
    this proposal, PBGC's Board would have the flexibility to make a broad
    range of changes to premiums in order to improve PBGC's financial
    condition and safeguard the future benefits of American workers. The
    Administration is committed to restoring the solvency of the pension
    insurance system and avoiding a future taxpayer bailout.

    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.

    [[Page 278]]

    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 do not try to completely offset a specific 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, and for individuals or companies who need a license
    to market a veterinary biologic and for permits for biotechnologically
    derived products.
       Agricultural Marketing Service (AMS) inspection and grading services.
    Country of Origin Labeling (COOL) becomes mandatory for all covered
    commodities on September 30, 2008. Currently, AMS operates a small COOL
    enforcement program for fish and shellfish compliance (the only
    commodities where labeling is now required). As part of the 2009 Budget,
    the agency will propose to charge a mandatory fee for the full
    implementation of a complete COOL enforcement program for the following
    commodities, in addition to the current fish and shellfish items: muscle
    cuts of beef (including veal), lamb, and pork; ground beef, ground lamb
    and ground pork; perishable agricultural commodities; and peanuts.
    Additional commodities may also be considered. The additional funds will
    be deposited into the agency's existing trust account.
       Federal crop insurance fees. The Administration proposes to implement
    a participation fee in the Federal crop insurance program to fund
    modernization and future maintenance of the existing information
    technology (IT) system. The fee would be charged to insurance companies
    participating in the Federal crop insurance program based on a rate of
    about one-half cent per dollar of premium sold. Because it is the
    companies that will most benefit from better, more advanced computer
    systems, it is reasonable that they contribute to the modernization and
    maintenance of these systems.

    Department of 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. In order to
    increase beneficiary knowledge about health care choices and costs, the
    Budget proposes to encourage greater individual responsibility for
    health care use and costs for high-income beneficiaries who are most
    able to contribute to the costs of their coverage.

    Department of Homeland Security

       Passenger security fee surcharge to fund baggage screening systems.
    The President's Budget proposes a temporary, four-year surcharge on the
    passenger security fee of $0.50 per enplanement with a maximum increase
    of $1.00 per one-way trip. The additional fee collections of an
    estimated $426 million per year would be deposited in the Aviation
    Security Capital Fund to recapitalize checked baggage screening devices
    deployed immediately after September 11, 2001, and accelerate deployment
    of inline systems that will increase baggage throughput up to 300
    percent.

    Department of Housing and Urban Development (HUD)

       Government-Sponsored Enterprises (GSE) oversight fees. 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

    [[Page 279]]

    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

       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 billion and 16 billion barrels. The Budget assumes that
    the first oil and gas lease sale would be held in 2010 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.
       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, it would require the full payment to be made
    in the sale year, increasing near-term revenues, but reducing revenues
    in later years when deferred payments under the current system would
    otherwise be collected. Fifty percent of coal bonus bid revenues are
    currently provided to the States, so the proposal would have an
    identical impact on state revenues.
      Amend Bureau of Land Management's (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 the net proceeds
    from these sales to the Treasury; and (4) cap Department of the Interior
    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.

    Department of Labor

      Foreign labor certification fees. The 2009 Budget proposes legislation
    to establish cost-based user fees for new applications under the
    permanent and H-2B temporary foreign labor certification programs, and
    proposes legislation to allow the Department to retain fees for
    applications under the H-2A temporary labor certification program and
    modify the fee to cover program costs. The fees would offset the State
    and Federal costs of administering these programs, and once fully
    implemented would eliminate the need for appropriations for this
    purpose. Upon enactment of the fee, requests for funding in the Foreign
    Labor Certification administration account would be adjusted
    accordingly.

    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 $379 million in estimated receipts for 2009.

    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 $300 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 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 2012. The Administration proposes to

    [[Page 280]]

    eliminate the prohibition and collect the tolerance fee in 2009. 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 proposed
    increase in maintenance fees 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 fee
    on the settlement of contracts on commodity futures, options on futures,
    and other transactions cleared by derivatives clearing organizations.
    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 $96 million in 2009. Similar 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 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 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
    estimated to begin in 2008, and total $4.1 billion through 2018.
       Prospective ancillary terrestrial component spectrum license fees.
    The Administration proposes legislation to improve the management of
    hybrid terrestrial - satellite mobile communications spectrum licenses
    by setting a fee on the terrestrial authority of these integrated
    networks. Under current policy, these licenses are granted free of
    charge, though providers will compete with terrestrial wireless carriers
    that have purchased licenses at auction. Setting a fee on the Ancillary
    Terrestrial Component of Mobile Satellite Service licenses will help to
    ensure that the radio spectrum is put to its most highly valued use by
    promoting consideration of the economic value of the spectrum, provide
    incentive for timely and robust network development, and improve equity
    relative to service providers that purchase their spectrum licenses in
    auctions. Receipts associated with this policy are estimated to begin in
    2008, and total $1.2 billion through 2018.
       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
    $1.4 billion through 2018.
       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
    Federal Communications Commission will be restored. Auction receipts
    associated with this clarification are estimated to begin in 2008, and
    total $593 million through 2018.

    C. User Charge Proposals that are Governmental Receipts

    Department of the Interior

       Migratory bird hunting and conservation stamps. Federal migratory
    bird hunting and conservation stamps, commonly know as ``Duck Stamps,''
    were originally created in 1934 as the Federal licenses required for
    hunting migratory waterfowl. Today, ninety-eight percent of the receipts
    generated from the sale of these stamps ($15 per stamp per year) are
    used to acquire important migratory bird breeding areas, migration
    resting places, and wintering areas. The land and water interests
    located and acquired with the Duck Stamp funds establish or add to
    existing migratory bird refuges and waterfowl production areas. The
    price of the Duck Stamp has not increased since 1991; however, the cost
    of land and water has increased significantly over the past 16 years.
    The Administration proposes to increase these fees to $25 per stamp per
    year, effective beginning in 2009.

    Department of Transportation: Federal Aviation Administration

       Overflight fees. This proposed change is part of the Department of
    Transportation proposal discussed above for Federal Aviation
    Administration user fees.

    Corps of Engineers--Civil Works

      Inland waterways trust fund (net impact). Commercial barges that use
    the inland waterways now pay an excise tax of 20 cents per gallon on
    diesel fuel, which is deposited in the Inland Waterways Trust Fund. The
    tax does not raise enough revenue to cover the required 50 percent non-
    Federal share of the costs

    [[Page 281]]

    that the Army Corps of Engineers is spending to construct, replace,
    expand, and rehabilitate the locks and dams and other features that make
    barge transportation possible on the inland waterways. To address this
    imbalance between receipts and expenditures, the Administration proposes
    to phase out the current excise tax for inland waterways users and
    replace it with a more efficient user fee tied to the level of spending
    for inland waterways construction, replacement, expansion, and
    rehabilitation work.

                    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 $330.2 billion in 2009. Of these, an
    estimated $183.3 billion are offsetting collections credited to
    expenditure accounts and an estimated $146.9 billion are deposited in
    offsetting receipt accounts.
      Information on the user charges presented in Table 18-4 is available
    in Tables 18-2 and 18-3 and the discussion that accompanies those
    tables. Major offsetting collections deposited in expenditure accounts
    that are not user charges include collections by the Commodity Credit
    Corporation fund in the Department of Agriculture, which are related to
    loans; collections from States to supplement payments in the
    supplemental security income program; and pre-credit reform loan
    repayments. Major offsetting receipts that are not user charges include
    military assistance program sales and interest income.
      Table 18-5 includes all offsetting receipts deposited in receipt
    accounts. These include 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 $782.1 billion in 2009:
    $635.2 billion are intragovernmental transactions; and $146.9 billion
    are from the public. The $146.9 billion in offsetting receipts from the
    public consist of proprietary receipts from the public ($136.6 billion)
    and offsetting governmental receipts ($10.4 billion).
      As noted above, offsetting collections and receipts by agency are also
    displayed in Table 21-1, which appears in Chapter 21, ``Outlays to the
    Public, Gross and Net,'' of this volume.

    [[Page 282]]

        Table 18-4.  OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC
                            (In billions of dollars)
    ------------------------------------------------------------------------
                                                           Estimate
                                        Actual   ---------------------------
                                         2007         2008          2009
    ------------------------------------------------------------------------
    Offsetting collections (credited
     to expenditure accounts):
      User charges:
        Postal service stamps and           73.9          77.0          78.3
         other postal fees (off-
         budget)....................
        Defense Commissary Agency...         5.5           5.5           5.6
        Employee contributions for           9.4           9.9          10.6
         employees and retired
         employees health benefits
         funds......................
        Sale of energy:
          Tennessee Valley Authority         9.5          10.1          10.5
          Bonneville Power                   3.3           3.2           3.5
           Administration...........
        All other user charges......        36.4          41.5          48.8
                                     ---------------------------------------
          Subtotal, user charges....       138.0         147.2         157.2
      Other collections credited to
       expenditure accounts:
        Commodity Credit Corporation        11.5          11.8          10.9
         fund.......................
        Supplemental security income         4.3           4.5           4.7
         (collections from the
         States)....................
        Other collections...........        12.4          10.4          10.5
                                     ---------------------------------------
          Subtotal, other                   28.3          26.6          26.1
           collections..............
                                     ---------------------------------------
        Subtotal, offsetting               166.3         173.9         183.3
         collections................

    Offsetting receipts (deposited
     in receipt accounts):
      User charges:
        Medicare premiums...........        50.3          54.4          57.1
        Outer Continental Shelf              6.8          11.1          10.2
         rents, bonuses, and
         royalties..................
        All other user charges......        34.4          35.2          27.6
                                     ---------------------------------------
          Subtotal, user charges            91.5         100.7          94.9
           deposited in receipt
           accounts.................
      Other collections deposited in
       receipt accounts:
        Military assistance program         15.8          15.5          15.0
         sales......................
        Interest income.............        16.0          16.9          15.8
        All other collections               31.1          31.4          21.2
         deposited in receipt
         accounts...................
                                     ---------------------------------------
          Subtotal, other                   62.9          63.8          52.0
           collections deposited in
           receipt accounts.........
                                     ---------------------------------------
      Subtotal, offsetting receipts.       154.4         164.5         146.9
                                     ---------------------------------------
    Total, offsetting collections          320.7         338.4         330.2
     and receipts from the public...

    Total, offsetting collections          246.7         261.3         251.8
     and receipts excluding off-
     budget.........................

    ADDENDUM:

      User charges that are                229.5         248.0         252.1
       offsetting collections and
       receipts \1\.................
      Other offsetting collections          91.2          90.4          78.1
       and receipts from the public.
                                     ---------------------------------------
        Total, offsetting                  320.7         338.4         330.2
         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 283]]

                                         Table 18-5. OFFSETTING RECEIPTS BY TYPE
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                             Estimate
               Source                2007    -----------------------------------------------------------------------
                                    Actual       2008        2009        2010        2011        2012        2013
    ----------------------------------------------------------------------------------------------------------------
          INTRAGOVERNMENTAL
            TRANSACTIONS:
    On-budget receipts:
      Federal intrafund
       transactions:
        Distributed by agency:
          Interest from the              737         699         858       1,110       1,299       1,544       1,721
           Federal Financing
           Bank.................
            Proposed Legislation  ..........  ..........         -15         -62        -143        -251        -385
             (Non-PAYGO)........
          Interest on Government       1,957       1,455       1,529         752         775         803         835
           capital in
           enterprises..........
          Interest received by           191         165         175         186         201         220         240
           retirement and health
           benefits funds.......
          General fund payments
           to retirement and
           health benefits
           funds:
              Employees health         5,400       5,600       5,400       5,500       5,500       5,600       5,600
               benefits fund....
              DOD retiree health      19,653      17,734      19,175      20,767      22,542      24,471      26,536
               care fund........
              Miscellaneous              345         357         423         520         483         485         468
               Federal
               retirement funds.
              Other.............       6,931       4,378       4,860       5,380       5,869       6,032       6,721
        Undistributed by agency:
          Employing agency
           contributions
              DOD retiree health      11,548      11,496      10,676      12,919      13,810      14,720      15,636
               care fund........
                                 -----------------------------------------------------------------------------------
      Subtotal, Federal               46,762      41,884      43,081      47,072      50,336      53,624      57,372
       intrafund transactions...
      Trust intrafund
       transactions:
        Distributed by agency:
              Payment to               5,411       5,388       5,590       5,928       6,300       6,201       6,593
               railroad
               retirement (from
               off-budget)......
              Other.............           1           1           6           6           6           6           6
                                 -----------------------------------------------------------------------------------

      Subtotal, Trust intrafund        5,412       5,389       5,596       5,934       6,306       6,207       6,599
       transactions.............
                                 -----------------------------------------------------------------------------------

    Subtotal, intrafund               52,174      47,273      48,677      53,006      56,642      59,831      63,971
     transactions...............

      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
            Contributions to
             insurance programs:
              Military                26,048      46,187      47,919      49,717      51,581      53,515      55,523
               retirement fund..
              Supplementary          179,183     181,032     193,263     202,304     219,366     227,564     254,325
               medical insurance
                Proposed          ..........  ..........      -1,804      -3,625      -5,331      -6,955      -8,615
                 Legislation
                 (Non-PAYGO)....
              Hospital insurance      11,355      13,273      16,244      16,933      18,225      19,677      21,937
              Railroad social            131         140         164         174         186         203         223
               security
               equivalent
               benefit fund.....
              Rail industry              329         306         339         352         365         379         392
               pension fund.....
              Civilian                31,303      30,531      31,310      32,110      32,699      33,499      34,501
               supplementary
               retirement
               contributions....
              Unemployment               756         750         786         802         933         884         848
               insurance........
              Other                      850         937         895         899         863         842         829
               contributions....
            Other payments:
              Miscellaneous            1,506       1,433       1,537       1,468       1,470       1,461       1,453
               payments.........
                Proposed          ..........  ..........       2,710  ..........  ..........  ..........  ..........
                 Legislation
                 (Non-PAYGO)....
            Trust fund payments
             to Federal funds
              Other.............      18,825       1,858       1,900       1,958       2,007       2,067       2,117
                Proposed          ..........  ..........       2,288        -411        -398        -392        -388
                 Legislation
                 (Non-PAYGO)....
          Undistributed by
           agency:
            Employer share,
             employee retirement
             (on-budget):
              Civil service           14,480      14,664      15,955      17,392      19,017      20,694      22,957
               retirement and
               disablity
               insurance........
                Proposed          ..........  ..........           2           8          15          23          31
                 Legislation
                 (Non-PAYGO)....
              CSRDI from Postal        2,883       3,600       3,865       4,144       4,434       4,736       5,048
               Service..........
              Hospital insurance       2,826       2,931       3,007       3,105       3,254       3,340       3,505
               (contribution as
               employer)........
              Postal Service             712         767         799         835         874         916         959
               contributions to
               FHI..............
              Military                16,817      17,702      19,523      19,841      20,583      21,388      22,092
               retirement fund..
              Other federal              210         195         197         200         202         204         207
               employees
               retirements......
              Interest received       71,964      83,527      86,957      88,706      92,369      95,699      99,835
               by on-budget
               trust funds......
                Proposed          ..........  ..........         122         610       1,716       3,423       5,524
                 Legislation
                 (Non-PAYGO)....
                                 -----------------------------------------------------------------------------------
      Subtotal, Interfund            380,178     399,833     427,978     437,522     464,430     483,167     523,303
       transactions.............
                                 -----------------------------------------------------------------------------------
    Subtotal, On-budget receipts     432,352     447,106     476,655     490,528     521,072     542,998     587,274

    [[Page 284]]

    Off-budget receipts:
      Interfund transactions:
        Distributed by agency:
          Federal fund payments
           to trust funds:
              Old-age, survivors      19,325      18,725      22,887      25,326      27,484      30,251      33,622
               and disablitity,
               insurance........
        Undistributed by agency:
          Employer share,             12,299      13,087      13,784      14,551      15,543      16,281      17,317
           employee retirement
           (off-budget).........
          Interest received by       106,003     114,311     121,864     131,441     142,233     154,719     167,659
           off-budget trust
           funds................
            Proposed Legislation  ..........  ..........  ..........  ..........  ..........  ..........        -397
             (Non-PAYGO)........
            Proposed Legislation  ..........  ..........         -14         -52         -62         -68         -67
             (PAYGO)............
                                 -----------------------------------------------------------------------------------
    Subtotal, Off-budget             137,627     146,123     158,521     171,266     185,198     201,183     218,134
     receipts...................
                                 -----------------------------------------------------------------------------------
    Subtotal, Intragovernmental      569,979     593,229     635,176     661,794     706,270     744,181     805,408
     Transactions...............
                                 ===================================================================================
        PROPRIETARY RECEIPTS:
    Distributed by agency:
      Interest and dividends:
        Interest on foreign              190         107         107         107         107         107         107
         loans and deferred
         foreign collections....
        Interest on deposits and       1,174       1,026         866         901         928         930         930
         loan accounts..........
          Proposed Legislation    ..........  ..........          10          10          10          10          10
           (PAYGO)..............
        Other interest..........      10,394      12,799      13,420      14,226      15,195      16,197      17,225
      Dividends and other              4,248       2,953       1,436       1,487       1,524       1,525       1,513
       earnings.................
                                 -----------------------------------------------------------------------------------
      Subtotal, Interest and          16,006      16,885      15,839      16,731      17,764      18,769      19,785
       dividends................
      Royalties and rents:
        Royalties and rents.....       4,129       4,665       4,836       5,333       5,614       5,904       6,011
          Proposed Legislation    ..........  ..........         719       1,304        -146      -1,061        -501
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
      Subtotal, Royalties and          4,129       4,665       5,555       6,637       5,468       4,843       5,510
       rents....................
      Sale of products:
        Sale of timber and other         162         250         230         237         247         272         298
         natural land products..
        Sale of minerals and              56         159          86          89          94          96         100
         mineral products.......
        Sale of power and other          648         697         627         675         630         622         648
         utilities..............
          Proposed Legislation    ..........  ..........          17         207          17          17          17
           (PAYGO)..............
        Other...................          98         121         115         102         122         119         105
          Proposed Legislation    ..........  ..........          -8          -8          -8          -8          -8
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
      Subtotal, Sale of products         964       1,227       1,067       1,302       1,102       1,118       1,160
      Fees and other charges for
       services and special
       benefits:
        Medicare premiums and         50,273      54,401      57,098      59,054      62,167      66,199      72,035
         other charges..........
          Proposed Legislation    ..........  ..........         -13        -115        -272        -339        -286
           (PAYGO)..............
        Nuclear waste displosal          754         766         764         764         767         769         771
         revenues...............
        Veterans life insurance          139         127         118         108          99          89          77
         (trust funds)..........
        Other services and            11,465      11,196      11,634      12,164      12,807      13,476      14,349
         special benefits.......
          Proposed Legislation    ..........  ..........          34          34          34          34          34
           (Non-PAYGO)..........
          Proposed Legislation    ..........  ..........         692         824         826         883         904
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
      Subtotal, Fees and other        62,631      66,490      70,327      72,833      76,428      81,111      87,884
       charges for services and
       special benefits.........
      Sale of Government
       property:
        Military assistance           15,833      15,508      15,011      12,462      12,687      12,915      13,147
         program sales (trust
         funds).................
        Sale of land and other           146         298         242         387         193         200         207
         real property..........
          Proposed Legislation    ..........  ..........         -15         -13          20          20          21
           (PAYGO)..............
        Other sales of                   204         220         232         130         131         115         115
         government property....
                                 -----------------------------------------------------------------------------------
      Subtotal, Sale of               16,183      16,026      15,470      12,966      13,031      13,250      13,490
       Government property......
      Realization upon loans and
       investments:
        Negative and downward         12,827      12,882       1,195         891         870         833         903
         reestimates............
          Proposed Legislation    ..........  ..........        -462        -444        -447        -445        -443
           (Non-PAYGO)..........
          Proposed Legislation    ..........  ..........       1,591           6           1           1           1
           (PAYGO)..............
        Other realization upon            72          63          76          76          76          76          76
         loans and investments..
                                 -----------------------------------------------------------------------------------
      Subtotal, Realization upon      12,899      12,945       2,400         529         500         465         537
       loans and investments....

    [[Page 285]]

      Recoveries and refunds:
        Recoveries and refunds..      13,104      13,698      13,854      14,396      14,424      14,920      15,369
          Proposed Legislation    ..........  ..........  ..........          67         140         146         151
           (Non-PAYGO)..........
          Proposed Legislation    ..........  ..........           1         477         517         378         386
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
      Subtotal, Recoveries and        13,104      13,698      13,855      14,940      15,081      15,444      15,906
       refunds..................
      Miscellaneous receipt
       accounts:
        Miscellaneous receipt          1,500       1,822       1,864       1,876       1,889       1,901       1,913
         accounts...............
          Proposed Legislation    ..........  ..........          14          14          14          14          14
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
      Subtotal, Miscellaneous          1,500       1,822       1,878       1,890       1,903       1,915       1,927
       receipt accounts.........
                                 -----------------------------------------------------------------------------------
    Subtotal, Distributed by         127,416     133,758     126,391     127,828     131,277     136,915     146,199
     agency.....................
    Undistributed by agency:
        Outer Continental Shelf            1  ..........  ..........  ..........  ..........  ..........  ..........
         escrow account.........
        Outer Continental Shelf          694       4,762       1,437         955         662         616         532
         rents and bonuses......
        Outer Continental Shelf        6,069       6,358       8,672       9,270       9,994       9,652      10,857
         royalties..............
          Proposed Legislation    ..........  ..........          50          50          50          50          50
           (PAYGO)..............
        Artic National Wildlife   ..........  ..........  ..........       7,004           4       1,006           6
         Refuge--Proposed
         Legislation (PAYGO)....
        Sale of major assets....  ..........  ..........  ..........  ..........  ..........         323  ..........
        Other undistributed            6,850  ..........  ..........  ..........  ..........  ..........  ..........
         offsetting receipts....
                                 -----------------------------------------------------------------------------------
    Subtotal, Undistributed by        13,614      11,120      10,159      17,279      10,710      11,647      11,445
     agency.....................
                                 -----------------------------------------------------------------------------------
    Subtotal, Proprietary            141,030     144,878     136,550     145,107     143,987     148,562     157,644
     Receipts...................
                                 ===================================================================================
       OFFSETTING GOVERNMENTAL
              RECEIPTS:
    Distributed by agency:
        Regulatory Fees.........       6,365       7,301       7,281       7,423       7,630       7,768       7,918
          Proposed Legislation    ..........  ..........         -67         -64         -65         -65         -70
           (Non-PAYGO)..........
          Proposed Legislation    ..........  ..........         521         521         521         521          95
           (PAYGO)..............
        Other...................         164         124         134         144         131         132         134
          Proposed Legislation    ..........  ..........          27          28          28          29          30
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
    Subtotal, Distributed by           6,529       7,425       7,896       8,052       8,245       8,385       8,107
     agency.....................
    Undistributed by agency:
        Spectrum auction               6,850      11,850       2,158         100         100  ..........  ..........
         proceeds...............
          Proposed Legislation    ..........         330         310         500         500         745         790
           (PAYGO)..............
                                 -----------------------------------------------------------------------------------
    Subtotal, Undistributed by         6,850      12,180       2,468         600         600         745         790
     agency.....................
                                 -----------------------------------------------------------------------------------
    Subtotal, Offsetting              13,379      19,605      10,364       8,652       8,845       9,130       8,897
     Governmental Receipts......
                                 -----------------------------------------------------------------------------------
    Total offsetting receipts...     724,388     757,712     782,090     815,553     857,102     901,873     971,949
    ----------------------------------------------------------------------------------------------------------------