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98th Congress, 1st Session
House Document No. 9 8 - 3
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THE BUDGET DOCUMENTS
Budget of the United States Government, 1984 contains the Budget Message of the
President and presents an overview of the President's budget proposals. It includes
explanations of spending programs in terms of national needs, agency missions, and
basic programs, and an analysis of estimated receipts, including a discussion of the
President's tax program. This document also contains a description of the budget
system and various summary tables on the budget as a whole.
United States Budget in Brief, 1984 is designed for use by the general public. It
provides a more concise, less technical overview of the 1984 budget than the above
volume. Summary and historical tables on the Federal budget and debt are also
provided, together with graphic displays.
Budget of the United States Government, 1984—Appendix contains detailed information on the various appropriations and funds that comprise the budget. The
Appendix contains more detailed information than any of the other budget documents. It includes for each agency: the proposed text of appropriation language,
budget schedules for each account, new legislative proposals, explanations of the
work to be performed and the funds needed, proposed general provisions applicable
to the appropriations of entire agencies or groups of agencies, and schedules of
permanent positions. Supplemental and rescission proposals for the current year
are presented separately. Information is also provided on certain activities whose
outlays are not part of the budget totals.
Special Analyses, Budget of the United States Government, 1984 contains analyses
that are designed to highlight specified program areas or provide other significant
presentations of Federal budget data. This document includes information about:
alternative views of the budget, i.e., current services and national income accounts;
economic and financial analyses of the budget covering Government finances and
operations as a whole; and Government-wide program and financial information for
Federal civil rights and research and development programs.
Instructions for purchasing copies of any of these documents are on the last two
pages of this volume.
For sale by the Superintendent of Documents, U.S. Government Printing Office,
Washington, D.C. 20402
TABLE OF CONTENTS
Page
PART 1. THE BUDGET MESSAGE OF THE PRESIDENT
,
PART 2. ECONOMIC ASSUMPTIONS AND THE BUDGET OUTLOOK
The economic outlook
Economic assumptions
Changes in the budget outlook since last year
Sensitivity of the budget to economic growth assumptions
Cyclical versus structural deficits
Sensitivity of the budget to economic assumptions: rules of thumb
PART 3. BUDGET PROGRAM AND TRENDS
The current services outlook
Sources of the structural deficit
The inherited budgetary imbalance
Redirection of fiscal policy launched in 1981
The 1984 budget recommendations: a comprehensive program to close the
structural deficit
Outlook for closing the structural deficit with the 1984 budget plan
PART 4. BUDGET RECEIPTS
Summary
Enacted legislation
Receipts proposals
Effect of enacted and proposed changes on receipts
Changes in budget receipts
Receipts by source
PART 5. MEETING NATIONAL NEEDS: THE FEDERAL PROGRAM BY
FUNCTION
Introduction
National defense
International affairs
General science, space, and technology
Energy
,
Natural resources and environment
Agriculture
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and social services
Health
Income security
Veterans benefits and services
Administration of justice
General government
,
General purpose fiscal assistance
Net interest
,
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2-1
2-2
2-8
2-11
2-13
2-16
2-19
3-1
3-2
3-3
3-4
3-13
3-29
3-37
4-1
4-2
4-3
4-12
4-17
4-18
4-20
5-1
5-2
5-7
5-17
5-27
5-33
5-41
5-48
5-54
5-65
5-75
5-84
5-101
5-112
5-129
5-137
5-143
5-149
5-154
iv
CONTENTS
Page
Allowances
5-157
Undistributed offsetting receipts
5-159
PART 6. PERSPECTIVES ON THE BUDGET
6-1
Relationship of budget authority to outlays
6-2
Fiscal activities outside the Federal budget
6-5
Federal budgeting for capital expenditures
6-21
Budget funds and the Federal debt
6-28
The increase in total 1982 outlays over the March 1981 budget estimate
6-32
Comparison of relatively uncontrollable outlays and of receipts
6-35
Allocation of windfall profit tax receipts
6-41
PART 7. THE BUDGET SYSTEM AND CONCEPTS
7-1
The budget process
7-2
Coverage of the budget totals
7-5
Budget authority and related transactions
7-8
The credit budget
7-11
Collections
7-12
Other transactions
7-14
Basis for budget figures
7-15
PART 8. THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-1
Explanatory note
:
8-2
Legislative branch
8-3
The judiciary
8-14
Executive Office of the President
8-18
Funds appropriated to the President
8-22
Department of Agriculture
8-32
Department of Commerce
8-49
Department of Defense—Military
8-57
Department of Defense—Civil
8-70
[Department of Education] Education Activities
8-75
[Department of Energy] Energy Activities
8-80
Department of Health and Human Services
8-84
Department of Housing and Urban Development
8-98
Department of the Interior
8-104
Department of Justice
8-116
Department of Labor
8-120
Department of State
8-126
Department of Transportation
8-132
Department of the Treasury
8-143
Environmental Protection Agency
8-150
National Aeronautics and Space Administration
8-152
Veterans Administration
8-155
Other independent agencies
8-158
Allowances
8-200
Budget totals
8-201
Off-budget Federal entities
8-204
PART 9. SUMMARY TABLES
9-1
Explanatory note relating to the summary tables
9-2
Table 1. Budget summary
9-3
Table 2. Budget receipts by source and budget outlays by agency, 1982-1988. 9-4
Table 3. Budget outlays by function, 1982-1988
9-5
Table 4. Budget authority by agency, 1982-1988
9-6
Table 5. Budget authority by function, 1982-1988
9-7
Table 6. Budget authority and outlays available through current action by
Congress
9-8
Table 7. Relation of budget authority to outlays
9-9
CONTENTS
Table 8. Obligations incurred, net
Table 9. Balances of budget authority
Table 10. Full-time equivalent of total Federal civilian employment in the
executive branch
Table 11. Budget financing and debt
Table 12. Budget receipts by source
Table 13. Offsetting receipts by type
Table 14. Outlays by function and agency
Table 15. Legislative proposals for major new and expanded programs in
the 1984 budget, projection of costs
Table 16. New direct loan obligations by agency
Table 17. New guaranteed loan commitments by agency
Table 18. Controllability of budget outlays, 1974-84
Table 19. Budget receipts by source, 1974-84
Table 20. Budget outlays by function, 1974-84
Table 21. Federal transactions in the national income accounts, 1973-84
Table 22. Federal finances and the gross national product, 1965-86
Table 23. Composition of budget outlays in current and constant (fiscal year
1972) prices: 1963-86
Table 24. Budget receipts and outlays, 1789-1986
9-10
9-11
9-12
9-13
9-14
9-17
9-20
9-34
9-36
9-37
9-38
9-40
9-42
9-52
9-53
9-54
9-55
PART 1
THE BUDGET MESSAGE
OF THE
PRESIDENT
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BUDGET MESSAGE OF THE PRESIDENT
To the Congress of the United States:
Two years ago, in my first address to the country, I went before
the American people to report on the condition of our economy,
which had suffered from many years of seriously misguided policies. I made a strong commitment to change the traditional shortsighted view that had previously been taken on economic priorities
so that we could achieve our goal of long-term prosperity. I stated
that we had a massive job before us.
Government spending was taking a rapidly increasing share of
national income, burdensome Government regulation had stunted
productivity increases, and excessive tax rates combined with erratic monetary policy resulted in serious disincentives to investment and long-term real economic growth. Inflation was at doubledigit levels. Interest rates were at record highs. Real growth and
job creation had ceased. New investment, productivity, and personal saving were stagnant. Our economy was in the worst mess in
half a century.
To make matters worse, our military strength had been allowed
to run down relative to the aggressively expanding military might
of the Soviet Union. We were in serious danger of becoming powerless to deter or counter Soviet aggression around the world.
The economic program that I proposed at that time focused on
long-range real growth. My tax proposals were designed to provide
badly needed private incentives to stimulate saving and productive investment. I supported the Federal Reserve in its pursuit of
sound monetary policy. I worked with the Congress to reverse the
growth of Government programs that had become too large or
outlasted their usefulness. I worked to eliminate or simplify unnecessary or burdensome regulations.
The unprecedented buildup of inflationary forces in the 1970's,
however, exacerbated in severity and duration the economic downturn of recent years. One of the key detrimental forces has been
the growing Federal budget. Despite our success in reducing the
rate of growth of nondefense spending in the last two budgets,
spending in 1983 will exceed 1981 levels by 21%, reflecting continued increases in basic entitlement programs, essential increases in
defense spending, and rapid growth of interest costs.
Thus, the full effect of the changes we have made is taking time
to develop. Over-reactive short-term remedies are not the answer.
M3
M4
THE BUDGET FOR FISCAL YEAR 1984
What is essential now is that we continue to work together to
rebuild this country—without losing sight of the four fundamentals
of our economic program:
• Limiting tax burdens to the minimum levels necessary to
finance essential Government services, thus maintaining incentives for saving, investment, work effort, productivity, and
economic growth.
• Reducing the growth of overall Federal spending by eliminating Federal activities that overstep the proper sphere of Federal Government responsibilities and by restraining the
growth of spending for other Federal activities.
• Reducing the Federal regulatory burden in areas where the
Federal Government intrudes unnecessarily into our private
lives or interferes unnecessarily with the efficient conduct of
private business or of State or local government.
• Supporting a moderate and steady monetary policy, to bring
inflation under control.
TWO YEARS OF ACCOMPLISHMENT
Over the past 2 years, dramatic improvements have been made
in the way the Government affects our economy. The Congress
joined with my administration in a cooperative and politically courageous effort to reverse a decade of runaway growth in spending
and tax burdens, proliferation of unnecessary regulations and red
tape, and erosion of our military strength.
Both the Omnibus Reconciliation Acts of 1981 and 1982 effected
fundamental reforms in numerous Federal programs, and demonstrated a greatly heightened level of maturity and responsibility of
the congressional budget process that has come to fruition with the
help and support of this administration. Although I am disappointed that many administration spending-reduction proposals did not
pass last year—which has resulted in higher deficits—I believe that
the revitalized congressional budget process signifies a refreshing
willingness on the part of the Congress to work with my administration to address squarely the many crucial, complex, and politically difficult budgetary dilemmas before us. The results have been
impressive:
• Where the growth rate of spending was almost out of control
at 17.4% a year in 1980, it is now declining dramatically—to
10.5% this year, and, with this budget, to 5.4% next year—
which is no more than the projected rate of inflation; in
effect, a comprehensive freeze on total Federal spending.
• Where spending growth totaled $220 billion from 1978 to
1981, a 48% increase, spending will rise by only 27% from
1981 to 1984, despite legislated cost-of-living adjustments and
the needed defense buildup.
THE BUDGET MESSAGE OF THE PRESIDENT
M5
• For the first time since the Second World War, the Federal
tax system has been fundamentally restructured. Income tax
rates have been substantially reduced, greatly improving the
climate for savings and investment. Excessive taxation of
business income resulting from depreciation allowances rendered inadequate by inflation has been eliminated through
depreciation reform. Tax loopholes have been closed, making
the tax structure more equitable. Emphasis is shifting to financing programs through user fees commensurate with
benefits and services provided.
• The excessive rates of growth of entitlement programs were
curbed. Overly-broad eligibility criteria were tightened to
limit benefit awards more to the truly needy, and eliminate
or restrict unnecessary and costly payments of welfare-type
benefits to those who are relatively well off and are, or ought
to be, self-supporting. Overly-generous and unnecessarily frequent cost-of-living adjustments were pared back. Nonetheless, the growth of these programs has proven difficult to
control and continues to be the primary cause of higher deficits.
• Limitation of Federal credit activity and off-budget spending
is being achieved.
• The burgeoning growth of Federal regulations and red tape
has been capped. The number of proposed new regulations
has been reduced by one-third in the past 2 years. Unnecessary costs of Federal regulation to individuals, businesses, and
State and local governments have been reduced by $6 billion
in annual expenditures and $9 to $11 billion in capital costs.
By the end of 1983, the time our citizens spend filling out
Federal forms and reports will have been cut by over 300
million hours annually.
• Improvements in the management of Federal operations, such
as better procedures for the collection of debts owed the Government and better cash-management practices, are being
carried out. These improvements have helped reduce waste,
fraud, and abuse in Government programs.
• And by the end of the 1982 fiscal year, the Federal nondefense workforce had been reduced by 91,300 employees since I
took office.
During the past 2 years, we have also taken decisive measures to
increase our military strength. At the same time, diplomatic approaches to increase our national security, such as arms reduction
talks, have been vigorously pursued.
The improvement in our defense posture includes all of its major
elements. Long-overdue modernization of our strategic forces is
proceeding with new bomber-, submarine-, and land-based missile
M6
THE BUDGET FOR FISCAL YEAR 1984
programs. Our conventional forces are also being modernized and
strengthened, with new ships, tanks, and aircraft. Above all, successful recruiting and retention over the past 18 months have
resulted in all of our armed services being more fully manned with
capable, high-caliber men and women. The All Volunteer Force is
now working well.
By any standards, these are accomplishments to be proud of. And
I am proud of them. We have come far in restoring order to the
chaos prevailing in our economy and Government affairs just 2
years ago.
This is not to say that we do not still face great problems such as
excessive unemployment, slower than desired economic growth,
and high deficits. During the past 2 years our Nation has labored
to purge itself of the inflationary disease that for nearly two decades had progressively undermined the economy's ability to generate growth, capital formation, worker productivity incentives, and
financial stability. Those inflationary fevers have largely subsided
in the aftermath of my decision 2 years ago to redirect economic
policy toward a more modest size and scope for the Federal Government, a series of tax rate reductions to reward productive invest-
THE BUDGET MESSAGE OF THE PRESIDENT
M7
ment and work effort, and a restrained monetary policy to sustain
the purchasing power of individual savings and income.
Accompanying the marked progress in unwinding the damaging
inflation spiral that plagued our Nation for so many years, financial markets in 1982 experienced their first sustained improvement
in more than 5 years. Interest rates throughout the maturity spectrum declined substantially, and by yearend we can proudly report
that key rates for home mortgages, consumer loans, and business
investment were able to sustain their lower levels, indicating new
confidence in administration policies and bringing much needed
relief to the housing and auto industries, the farm community, and
the export sector.
Inflationary pressures of the sort experienced during the past
two decades extracted a heavy toll from our economy. We have
learned that the problems we inherited were far worse than most
inside and out of Government had expected; the recession was
deeper and longer than most inside and out of Government had
predicted. Curing those problems has taken more time and a
higher toll than any of us wanted. Unemployment is far too high.
Fortunately, the long nightmare of runaway inflation is now
behind us. Slowly, but steadily and unmistakably, our national
economy is completing the transition from recession to recovery.
The interaction of lower tax rates, reduced inflation, and falling
interest rates has placed the consumer and the producer in a much
strengthened position with respect to balance sheets, liquidity,
after-tax income, and purchasing power.
There are numerous signs that the battered, sputtering inflationwarped economy that we found 2 years ago is on the mend, and
that the dislocation and hardship we have suffered in the interim
will prove to be a corrective interlude on the path of sustained
recovery. But our confidence must also be tempered by realism and
patience. Quick fixes and artificial stimulants, repeatedly applied
over decades, are what brought on the inflationary disorders that
we have now paid such a heavy price to cure.
In part as a result of the difficult period of disinflation, during the
past year and one-half our projections of the Federal deficit have
steadily risen. They have now reached very high levels, creating
uncertainty in the financial markets and threatening to block the
economic recovery ahead of us.
But before we consider what is to be done, we must review how
we got here. And the truth is that as in the case of the social
security fund, the looming gaps in our national budget are the
consequence of both the inflation that got out of hand and the
correctives that have been unavoidably applied to cure it.
During the 1970's, the share of our national income devoted to
domestic programs and transfer payments soared by more than
M8
THE BUDGET FOR FISCAL YEAR 1984
50%—from 10 cents to 16 cents on every dollar produced by the
American people. For a brief time, it appeared that we could afford
all of this generosity because inflation badly misled us.
As inflation reached higher and higher peaks, the Treasury's
coffers swelled from its take on inflated incomes and the upward
creep of tax rates. For a time, we even financed our trillion dollar
national debt on the cheap with interest rates that had not yet
caught up with the spiraling inflation.
Meanwhile, defense spending grew at less than 60% of inflation,
making room in the budget for extra domestic programs. The real
purchasing power available to maintain our readiness, modernize
our weapons, and maintain strategic nuclear safety declined by a
startling 20%.
But it couldn't last—and it didn't. Today the Federal budget
itself has become a major victim of the economic transition:
• The inflationary revenue windfall has dried up.
• Our staggering national debt until recently was being financed at the highest interest rates in peacetime history.
• The undelayable process of restoring our inflation-eroded military budgets and our decayed military strength has further
strained our resources.
• Despite our great strides in reducing the spending growth
over the last 2 years, the vast edifice of domestic programs
remains significantly in place.
The social security system has also been a victim of our economic
ills. First, the rampant inflation drained its reserves as Government tried to keep beneficiaries up with the spiraling cost of living
that its own mistaken policies had created in the first place. Now
the recessionary adjustments to disinflation have temporarily deprived it of the expanding wage base and growing revenues required to support commitments to the retired and disabled. As a
result, for too long the specter of social security insolvency has
haunted our Nation's elderly citizens and threatened to rupture
the lifeline on which 36 million retired and disabled Americans
depend.
But however obvious the threat of insolvency, one thing is certain: social security cannot and will not be allowed to fail the 36
million Americans who depend on it. With this commitment in
mind, it is especially pleasing to me to join with the Speaker of the
House and the Senate Majority Leader in urging the Congress to
enact the bipartisan compromise plan developed by the National
Commission on Social Security Reform.
There are elements in it that none of us prefers, but taken together
it forms a package all of us can support. It asks for some
sacrifice by all—the self-employed, beneficiaries, workers, new government employees, and the better-off among the retired—but it
THE BUDGET MESSAGE OF THE PRESIDENT
M9
imposes an undue burden on none. And, in supporting it, we keep
an important pledge to the American people: the integrity of the
social security system will be preserved—and no one's payments
will be reduced.
TOWARD ECONOMIC RECOVERY
To enhance prospects for sustained economic recovery and lower
unemployment, I am proposing a sweeping set of fiscal policy
changes designed to reduce substantially the mounting Federal
deficits that threaten the renewal of economic growth. My plan is
based on these principles:
It must be bipartisan. Overcoming the deficits and putting the
Government's house in order will require the best efforts of all of
us.
It must be fair. Just as all will share in the benefits that will
come from recovery, all should share fairly in the burden of transition.
It must be prudent. The strength of our national defense must be
restored so that we can pursue prosperity in peace and freedom,
while maintaining our commitment to the truly needy.
Finally, it must be realistic. We cannot rely on hope alone.
DEFICIT OUTLOOK AT A GLANCE:
BASELINE VS. 1984 BUDGET PLAN
271
M10
THE BUDGET FOR FISCAL YEAR 1984
With these guiding principles in mind, let me outline a four-part
plan to increase economic growth and reduce deficits.
First, I am recommending a Federal spending freeze. I know this
is strong medicine, but so far we have cut only the rate of increase
in Federal spending. The Government has continued to spend more
money each year, though not as much more as it did in the past.
Taken as a whole, the budget I am proposing for the next fiscal
year will increase no more than the rate of inflation—in other
words, the Federal Government will hold the line on real spending.
That is far less than many American families have had to do in
these difficult times.
I will request that the proposed 6-month freeze in cost-of-living
adjustments recommended by the bipartisan National Commission
on Social Security Reform be applied to other Government benefit
programs. I will also propose a 1-year freeze on a broad range of
domestic spending programs, and for Federal civilian and military
pay and pension programs.
Second, I will ask the Congress to adopt specific measures to
control the growth of the so-called "uncontrollable" spending programs. These are the automatic spending programs, such as food
stamps, that cannot be simply frozen—and that have grown by
over 400% since 1970. They are the largest single cause of the
built-in or "structural" deficit problem. Our standard here will be
fairness—ensuring that the taxpayers' hard-earned dollars go only
to the truly needy; that none of them is turned away; but that
fraud and waste are stamped out. And, I am sorry to say, there is a
lot of it out there. In the food stamp program alone, last year we
identified almost $1.1 billion in overpayments. The taxpayers are
not the only victims of this kind of abuse; the truly needy suffer, as
funds intended for them are taken by the greedy. For everyone's
sake, we must put an end to such waste and corruption.
Third, I will adjust our program to restore America's defenses by
proposing $55 billion in defense savings over the next 5 years. These
are savings recommended to me by the Secretary of Defense, who
has assured me they can be safely achieved and will not diminish
our ability to negotiate arms reductions or endanger America's
security. We will not gamble with our national survival. As a
percent of GNP, the level I am requesting for defense spending in
1984 is less than the United States spent during the decade of the
1960's. As a percent of the total Federal budget it is far less than
was allocated for national defense in those years. We are 2 years
into the program to re-arm America. Sustaining the momentum of
this program is essential if we are to avoid slipping back into the
inefficient and counterproductive pattern of wildly fluctuating
defense spending levels.
Mil
THE BUDGET MESSAGE OF THE PRESIDENT
THE BUDGET TOTALS
(In billions of dollars)
1982 actual
Budget receipts
Budget outlays
Surplus or deficit ( - )
Budget authority
1983
estimate
1984
estimate
1985
estimate
1986
estimate
617.8
728.4
597.5
805.2
659.7
848.5
724.3
918.5
841.9
989.6
-110.6
-207.7
-188.8
-194.2
-147.7
779.9
847.4
900.1
997.4
1,079.6
Fourth, because we must ensure reduction and eventual elimination of deficits over the next several years, I will propose a stand-by
tax limited to no more than 1% of the gross national product to
start in fiscal year 1986. It would last no more than 3 years and
would start only if the Congress has first approved our spending
freeze and budget control program. You could say that this is an
insurance policy for the future—a remedy that will be at hand if
needed, but resorted to only if absolutely necessary.
In the meantime, we will continue to study ways to simplify the
tax code and make it more fair for all Americans. This is a goal
that every American who has ever struggled with a tax form can
understand.
At the same time, however, I will oppose any efforts to undo the
basic tax reforms we have already enacted—including the 10% tax
break coming to taxpayers this July and the tax indexing that will
protect all .Americans from inflationary bracket creep in the years
ahead.
Impact of Stronger Economic Growth
If the recovery of real GNP growth over the next 2 fiscal
years is about 1% above our cautious projections, the
deficit estimates would improve by an average of about
$20 billion per year, and would result in lower deficits as
follows:
Deficit ( - )
($ billions)..
1984
1985
1986
1987
-177
-177
-127
-119
-90
An average real GNP growth rate 1.33% higher each
year over the next 6 years, compared to the prudent
projections made in the 1984 budget, would result in a
balanced budget by 1988. This is a "high growth" scenario but within the range of previous historical experience.
My administration remains committed to the goal of a
balanced budget and will propose additional policy actions, as needed, to achieve it.
380-000
0 - 8 3 - 2
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M12
THE BUDGET FOR FISCAL YEAR 1984
This plan is urgently needed and is geared toward solving the
problems of the growing deficits. But it naturally requires the
cooperation of both branches of Government, both Houses, and
both parties. Thus, our plan is aimed at bridging the institutional,
philosophical, and political differences that separate us—which are
not as important as the overriding common objective of economic
recovery and sustained prosperity for America.
After 2 years of reducing much of the overspending, we have now
reached the bone in many places—programs where we will not
propose further reductions. My administration will now work with
the Congress in an effort to accommodate those special concerns of
the legislative branch that have caused unnecessary strains in the
past.
Thus, we will propose $3 billion more for education programs
than was proposed last year, and almost $2 billion more for employment and training. Proposals for new rescissions of alreadyenacted budget authority will be held to an absolute minimum.
This budget process must be a two-way street, for the problem of
large deficits is very real. Even when all reasonable measures are
applied to the vast detail of the budget, the resulting deficits are
large and progress toward reducing them slow. The political risks
entailed in these deficit-containment measures are considerable.
But the risk of doing nothing at all due to partisanship or legislative stalemate is much greater. I therefore urge the Congress to
join with my administration behind this common-sense strategy.
MEETING—AND RESHAPING—FEDERAL
RESPONSIBILITIES
My administration seeks to limit the size, intrusiveness, and cost
of Federal activities as much as possible, and to achieve the needed
increase in our defense capabilities in the most cost-effective
manner possible. This does not mean that appropriate Federal
responsibilities are being abandoned, neglected, or inadequately
supported. Instead, ways are being found to streamline Federal
activity, to limit it to those areas and responsibilities that are truly
Federal in nature; to ensure that these appropriate Federal responsibilities are performed in the most cost-effective and efficient
manner; and to aid State and local governments in carrying out
their appropriate public responsibilities in a similarly cost-effective
manner. The Nation must ask for no more publicly-provided services and benefits than the private sector can reasonably be asked to
finance.
Education.—One of the high priorities I have set for my administration is the return to a more appropriate role for the Federal
THE BUDGET MESSAGE OF THE PRESIDENT
M13
Government in the Nation's education systems and policies. We
have slowed the alarming rate of growth of Federal spending for
education, an area that is rightfully and primarily a family and
State and local government responsibility. From 1974 to 1981, Federal spending for education increased by 172%. From 1981 to 1982,
however, outlays declined by more than $1 billion. My administration has accomplished a major consolidation of small fragmented
education programs into a flexible education block grant to States
and localities. We have cut back on unnecessary regulation and
Federal intrusion in local affairs.
The 1984 budget seeks to stabilize education spending, requesting
$13.1 billion in budget authority for 1984. It reflects several important new initiatives to strengthen American education:
• Passing of tuition tax credits for parents who want to send
their children to qualified private or religiously-affiliated
schools.
• Establishing education savings accounts to give middle- and
lower-income families an incentive to save for their children's
college education and, at the same time, to encourage a real
increase in savings for economic growth.
• Reorienting student aid programs to ensure that students and
families meet their responsibilities for financing higher education, while making funds available across a wider spectrum
of schools for the low-income students most in need.
• Allowing States or localities, if they so choose, to use their
compensatory education funds to establish voucher programs
to broaden family choice of effective schooling methods for
educationally disadvantaged children.
• Helping States to train more mathematics and science teachers.
These initiatives represent the administration's continuing commitment to avoid improper Federal involvement in State, local, and
family decisions, while preserving proper Federal support for key
national policy goals such as supporting compensatory and handicapped education, facilitating access to higher education, and helping States improve science and mathematics education.
Research.—My administration recognizes the Federal responsibility to maintain U.S. leadership in scientific research. Although
support of basic scientific research represents a small share of the
Federal budget, it is a vital investment in the Nation's future. Such
research lays the foundation for a strong defense in the years to
come, and for new technologies and industries that will help maintain our industrial competitiveness, create new jobs, and improve
our quality of life. By carefully establishing budget priorities, my
administration has been able to reinvigorate Federal support for
basic scientific research. With my 1984 budget proposals, such sup-
M14
THE BUDGET FOR FISCAL YEAR 1984
port across the Government will have increased by more than 20%
over the 1982 level.
Health care.—A major problem for both individuals and the Federal Government in meeting health care needs is the rapid inflation of health care costs. The rate of increase in health care costs is
excessive and undermines people's ability to purchase needed
health care. Federal policies have contributed significantly to
health care cost increases. The budget contains several major initiatives to reduce cost increases. We must eliminate the tax incentive for high-cost employee health insurance programs. Savings
from medicare cost controls will be used to protect the aged from
catastrophic hospital costs. Incentives will also be proposed to slow
the growth of medicaid costs.
Agriculture.—The administration seeks to move agricultural
supply toward a better balance with demand by reducing farm
production and Government program stocks. The budget proposes a
four-part approach to solving the current surplus supply problem:
• establishing a payment-in-kind (PIK) program, under which
farmers would receive surplus commodities now held for Federal loans, or owned by the Government, in return for reducing their production;
• freezing farm crop target prices at current levels;
• donating Government-held commodities through international
humanitarian organizations for needy people around the
world; and
• selling our agricultural produce abroad, both through commercial channels and through governmental negotiation.
Efforts are also continuing to identify surplus Federal land holdings for sale from those administered by the Departments of Agriculture and of the Interior. Planned sales total $500 million in
1984.
Transportation.—In the transportation area, my administration
has made major strides in implementing one of the fundamental
principles in my program for economic recovery: having users pay
for program costs that are clearly allocable to them. During the
past year, I signed into law two administration-backed proposals to
increase excise taxes on aviation and highway users and thereby
provide funding needed to revitalize and modernize these important segments of the Nation's transportation system. The 1984
budget reflects the administration's continued commitment to the
"users pay" principle by again proposing user fees for:
• construction and maintenance of deep-draft ports;
• the inland waterway system;
• selected direct Coast Guard services; and
THE BUDGET MESSAGE OF THE PRESIDENT
M15
• nautical and aviation maps and charts.
Recognizing the importance of our transportation system in
maintaining and contributing to the Nation's economic and social
well being, my administration secured passage of legislation designed to rebuild the Nation's highway and public transportation
facilities. This legislation substantially increased funds available to
the States and local communities to complete and repair the aging
interstate highway system, to rehabilitate principal rural and
urban highways and bridges, and to improve mass transit systems.
Fully capable ports and channels are essential to make U.S. coal
exports competitive in world markets. My administration will work
with the Congress to provide for timely and efficient port construction. We propose a system of user fees for existing port maintenance and new port construction. Local governments would be
empowered to set up their own financing arrangements for the
immediate construction of facilities in their areas.
Reducing the Federal presence in commercial transportation,
currently regulated by the Interstate Commerce Commission, the
Civil Aeronautics Board, and the Federal Maritime Commission,
will improve the efficiency of the industry. To this end, my administration will seek further deregulation of trucking, airlines, and
ocean shipping. Experience since the adoption of initial transportation deregulation legislation has shown clearly that both consumers and industry benefit from reduced Federal involvement in
these activities.
Energy.—The administration has significantly reoriented the
country's approach to energy matters in the past 2 years. Reliance
on market forces—instead of Government regulation and massive,
indiscriminate Federal spending—has resulted in greater energy
production, more efficient use of energy, and more favorable
energy prices. For example:
• The U.S. economy today is using 18% less energy to produce a
dollar's worth of output than it did in 1973 when energy
prices first began to rise.
• The price of heating oil and gasoline has actually fallen in
real terms by 12% in the past 2 years—confounding past
theories that insisted that these prices could only increase.
Federal energy programs and policies have been refocused and
made more productive:
• Wasteful spending on large, unprofitable technology demonstrations has been curtailed.
• At the same time, spending has increased in areas where the
Government has a key role to play—for example, in supporting long-term energy research.
• The strategic petroleum reserve has more than doubled in
size over the past 2 years.
M16
THE BUDGET FOR FISCAL YEAR 1984
Criminal justice.—My administration has also sought to strengthen the Federal criminal justice system by proposing major legislative initiatives, such as bail and sentencing reform, by attacking
drug trafficking and organized crime, and by achieving a better
balance among law enforcement, prosecutorial, and correctional
resources. Twelve regional task forces will focus on bringing to
justice organized crime drug traffickers. The administration will
strengthen efforts to identify, neutralize, and defeat foreign agents
who pose a threat to the Nation.
International affairs.—Our foreign policy is oriented toward
maintaining peace through military strength and diplomatic negotiation; promoting market-oriented solutions to international economic problems; telling the story abroad of America's democratic,
free-enterprise way of life; and increasing free trade in the world
while assuring this country's equitable participation in that trade.
• The security assistance portion of the international affairs
program has been increased to assist friendly governments
facing threats from the Soviet Union, its surrogates, and from
other radical regimes.
• Development aid emphasizes encouraging the private sectors
of developing nations and increasing U.S. private sector involvement in foreign assistance.
• A major expansion of international broadcasting activities
aimed primarily at communist countries is planned, and a
new initiative will be undertaken to strengthen the infrastructure of democracy around the world.
• Special attention is being given to assuring adequate financing of U.S. exports while my administration seeks to obtain
further reductions in the export subsidies of other governments.
My administration will submit to the Congress a proposal to
increase the U.S. quota in the International Monetary Fund and
the U.S. obligations under the IMF's General Arrangements to
Borrow, as soon as negotiations on these issues are completed. This
is necessary to ensure that the IMF has adequate resources to help
bring the world economy back to strong, noninflationary growth.
Although now less than 2% of the budget, international programs are critical to American world leadership and to the success
of our foreign policy.
Minority-owned businesses.—My administration will assist in the
establishment or expansion of over 120,000 minority-owned
businesses over the next 10 years. The Federal Government will
procure an estimated $15 billion in goods and services from minority business during the 3-year period 1983-1985. It will make available approximately $1.5 billion in credit assistance and $300 million
THE BUDGET MESSAGE OF THE PRESIDENT
M17
in technical assistance to promote minority business development
during this period.
Civil service retirement.—The 97th Congress made some improvements in the civil service retirement system. However, civil service
retirement still has far more generous benefits and is much more
costly than retirement programs in the private sector or in State
and local governments. Accordingly, this budget proposes fundamental changes in civil service retirement designed to bring benefits into line with those offered in the private sector and reduce the
cost of the system to affordable levels. Retirement benefit changes
will be phased in over a period of years in order to avoid upsetting
the plans of those at or near retirement.
UNEMPLOYMENT DEMANDS SPECIFIC
ATTENTION
My administration seeks to provide appropriate assistance to the
unemployed. There are three major groups who need help: the
largest, those who are unemployed now but will find jobs readily as
the economy improves; those whose jobs have permanently disappeared; and youth who have trouble finding their niche in the
labor market.
Those in the first group need interim help because, historically,
increases in jobs always lag in an economic recovery. Last year we
provided a temporary program to give the long-term unemployed
up to 16 added weeks of unemployment compensation, in addition
to the up to 39 weeks available from our permanent unemployment
insurance. This temporary program expires March 31, 1983. I propose to modify and extend the program for 6 more months, and
provide an option for recipients to receive assistance in securing
work through a system of tax credits to employers. This will give
employers a significant incentive to hire the long-term unemployed, while workers will get full wages rather than the lower
unemployment benefit.
Those whose jobs have permanently disappeared must be helped
to find new long-term occupations. The Job Training Partnership
Act, enacted last year, authorizes grants to States to help retrain
such workers and assist them in locating and moving to new jobs.
The Congress appropriated $25 million to start this new program
in 1983. I am requesting $240 million to implement the program
fully in 1984. In addition, I propose that the Federal unemployment law be changed to allow States to use a portion of the
unemployment taxes they collect to provide such retraining and job
search assistance to their unemployed workers. Regulatory reform
and passage of enterprise zone legislation will also create new
incentives for jobs and opportunity.
M18
THE BUDGET FOR FISCAL YEAR 1984
Those youth who have problems finding jobs after they leave
school are often condemned to a lifetime of intermittent employment and low earnings. The new Job Training Partnership Act is
designed to help disadvantaged youth acquire the basic skills potential employers look for when they hire. I am requesting $1.9
billion for the block grant to States under that Act. The States
must use at least 40% of that for youth.
One of the problems hampering youth is inability to get meaningful work experience during school vacations. Such experience is
invaluable to demonstrate their qualifications to potential permanent employers. The budget provides for 718,000 public summer job
opportunities for disadvantaged youth. But we must also make it
possible for youth to experience work in the private sector. The
minimum wage law now frequently prevents this. Inexperienced
youth cannot produce enough of value to make it worthwhile for
employers to pay them the full minimum wage during short periods of employment. I therefore propose that the minimum wage for
summer jobs for youth be reduced to $2.50 an hour. Limitation of
the reduced minimum wage to the summer months will make it
unlikely that employers will substitute youths for older workers.
I remain adamantly opposed to temporary make-work public jobs
or public works as an attempted cure for non-youth unemployment.
There are several reasons for this. The cost per "job" created is
excessive; we cannot afford major new programs, particularly in
our current budgetary straits; the actual number of new jobs "created" is minimal; the jobs created tend to be temporary and of a
dead-end nature; and most such jobs do not materialize until after
recovery is well underway.
IMPROVING THE EFFICIENCY OF
GOVERNMENT
The proposed freeze on program funding levels will compel program managers in every agency of the Government to find more
efficient ways of carrying out their programs. For too long, costs of
Federal operations have been mounting unchecked.
Good management has not always been a priority of the executive branch. I have been correcting that situation.
My administration has redirected programs to improve their efficiency and to achieve cost savings Government-wide. My administration is committed to improving management and reducing
fraud, waste, and abuse. The President's Council on Integrity and
Efficiency (PCIE), made up of 18 Inspectors General, reported that
almost $17 billion has been saved or put to better use in the past 2
years.
THE BUDGET MESSAGE OF THE PRESIDENT
M19
In 1982, I signed into law the Federal Managers' Financial Integrity Act. Under this Act, my Cabinet officers and other agency
heads will report to me and the Congress annually on the status of
their efforts to improve management controls that prevent fraud
and mismanagement. A number of agencies have already begun to
make significant improvements in this important area.
But the Government can go only so far with the seriously outdated and inefficient management/administrative systems that are
currently in place. One-third of our large-scale computers, for example, are more than 10 years old. A comprehensive management
improvement program was needed, so "Reform "88" was initiated.
We intend to upgrade and modernize our administrative systems to
make them more effective and efficient in carrying out the Government's business and serving the public.
We are already saving tax dollars by managing our almost $2
trillion yearly cash flow more effectively, collecting the Government's $250 billion of just debts, cutting Government administrative costs, modernizing Federal procurement systems, reducing internal regulations, controlling our office space and equipment more
prudently, and streamlining the workforce in many departments
and agencies. These cost-reduction efforts will continue.
CONTINUING REFORM OF OUR FEDERAL
SYSTEM
The overall efficiency of Government in the United States can
also be improved by a more rational sorting out of governmental
responsibilities among the various levels of government—Federal,
State, and local—in our Federal system, and eliminating or limiting overlapping and duplication.
In 1981, the Congress responded to my proposals by consolidating
57 categorical programs into 9 block grants. In 1982, block grants
were created for job training in the Jobs Training Partnership Act,
and for urban mass transit in the Surface Transportation Act. The
initiatives to be proposed this year will expand on these accomplishments.
Four new block grants will be proposed, with assured funding for
major functions now addressed through categorical grants:
• A general Federal-State block grant covering approximately
15 categorical programs.
• A Federal-local block grant that would include the entitlement portion of the community development grant program
and the general revenue sharing program.
• A transportation block grant.
• A rural housing block grant.
M20
THE BUDGET FOR FISCAL YEAR 1984
The administration is improving the management of intergovernmental assistance by providing State and local elected officials with
greater opportunity to express their views on proposed Federal
development and assistance actions before final decisions are made.
Under Executive Order 12372, Intergovernmental Review of Federal Programs, which I signed in July 1982, Federal agencies must
consult with State and local elected officials early in the assistance
decision process and make every effort to accommodate their views.
The Order also encourages the simplification of State planning
requirements imposed by Federal law, and allows for the substitution of State-developed plans for federally required State plans
where statutes and regulations allow.
Through the President's Task Force on Regulatory Relief and the
regulatory review process, the administration is eliminating and
simplifying regulations affecting State and local governments that
are burdensome, unnecessary, and counter-productive. These
changes have improved local efficiency and accountability and reduced program costs. Twenty-five reviews were completed during
the past 2 years by either the Task Force or by various Federal
agencies. Available data indicate that regulatory relief actions will
save State and local governments approximately $4 to $6 billion in
initial costs, and an estimated $2 billion on an annual basis. My
administration is also simplifying selected, generally applicable
crosscutting requirements that are imposed on State and local
governments as a condition of accepting financial assistance.
FEDERAL CREDIT PROGRAMS: MORE
SELECTIVE
The administration continues its strong commitment to control
Federal credit assistance, which has serious effects on the Nation's
financial markets. To this end, I propose a credit budget that
reverses the accelerated rate of growth in direct and guaranteed
lending by the Federal Government that occurred during the
second half of the 1970's and the first years of the 1980's.
Federal intervention through guarantees and provision of direct
lending misdirects investment and preempts capital that could be
more efficiently used by unsubsidized, private borrowers. Because
federally assisted borrowers are frequently less productive than
private borrowers, large Federal credit demands must be reduced
in order to improve prospects for economic growth.
CONCLUSION
The stage is set; a recovery to vigorous, sustainable, noninflationary economic growth is imminent. But given the underlying deterioration in the overall budget structure that has occurred over the
THE BUDGET MESSAGE OF THE PRESIDENT
M21
past 2 years, only the most sweeping set of fiscal policy changes
could help to reverse the trend and set the budget on a path that is
consistent with long-term economic recovery.
If the challenge before us is great, so, too, are the opportunities.
Let us work together to meet the challenge. If we fail, if we work
at cross purposes, posterity will not forgive us for allowing this
opportunity to slip away.
RONALD W. REAGAN.
JANUARY 31,
1983.
PART 2
ECONOMIC ASSUMPTIONS
AND THE BUDGET
2-1
ECONOMIC ASSUMPTIONS AND THE BUDGET
This part of the budget discusses the economic assumptions underlying the budget. The first section reviews recent economic developments and the outlook for the economy. The second presents
the economic assumptions. The third section notes how economic
developments and changes in the economic outlook have changed
the budget outlook since last year. The fourth section compares the
current forecast with historical economic performance over the
postwar period and notes how the budget is affected by different
rates of growth and inflation. The fifth develops estimates of the
extent to which deficits are cyclical (recession-induced) as opposed
to structural. The sixth presents rules of thumb relating changes in
economic variables to changes in the budget.
The Economic Outlook
The economic landscape in 1982 was dominated by widespread
and rapid progress in unwinding the inflation spiral that built up
during the past decade, as well as by the first sustained improvement in financial market conditions in more than 5 years. However, this rapid abatement of inflation pressures was accompanied by
an economic recession of greater amplitude and duration than
virtually any forecast anticipated a year ago. Fortunately, by yearend there were numerous signs that the difficult adjustment to
lower inflation had run its course, and the economy was generating
a solid foundation for economic growth in the 1980's.
From a peak rate of 10.5% in late 1980, the rise of the GNP
deflator slowed to 4.3% by the fourth quarter of 1982. This improvement was reflected in every sector of the economy. The rate
of increase of consumer prices, producer prices, wage rates, and
costs of energy and other raw materials moderated substantially in
response to administration policies expressly designed to halt the
damaging inflation spiral of previous years. For 1982 as a whole,
the rate of inflation, as measured by the GNP deflator, had fallen
to 4.6%, its lowest increase in 10 years. For the 12 months ending
in December, the Producer Price Index increased by only 3.5%, its
smallest rate of increase since 1971, while the Consumer Price
Index advanced by only 3.9% over the 12-month period, its smallest
rate of increase since 1972.
2-2
2-3
ECONOMIC ASSUMPTIONS AND THE BUDGET
ANNUAL INFLATION RATES
(Percent; 4th quarter over 4th quarter)
Consumer
Price
Index
1977
1978
1979
1980
1981
1982
6.5
9.0
12.8
12.6
9.6
4.5
..
Producer
Price
Index
7.1
8.8
12.7
12.5
7.3
3.6
GNP
deflator
6.1
8.5
8.2
10.2
8.9
4.6
Average
hourly
earnings
7.5
8.4
8.0
9.6
8.4
5.9
Confirming the reduction of inflation rates, money and credit
market conditions eased substantially during the year, and interest
rates registered major across-the-board declines. During the
summer months, the generally successful legislative implementation of the First Budget Resolution and the resulting improvement
in the outlook for Federal deficits improved public confidence concerning future inflation and economic growth. Along with a
marked reduction in private credit demands, and a somewhat more
relaxed monetary policy, these factors contributed to a 3 percentage point reduction in short-term interest rates during the JulySeptember quarter.
By late December and early January, short-term rates had sustained their lower levels for half a year, and the 91-day Treasury
bill rate hovered around 8%. At yearend the industry-wide commercial bank prime rate stood at 1136%, a significant reduction
from its 1636% level of mid-1982 and the 2136% peak of late 1980.
Long-term rates also declined substantially, and new Aaa public
utility issues yielded about 11.75% in late December, a 6
percentage point reduction from its peak in late September 1981.
The FHLMC mortgage rate declined to 13.6%, a large drop from its
18.5% October 1981 level.
SELECTED INTEREST RATES
(4th quarter averages)
91-day
Treasury
bills
1977
1978
1979
1980
1981
1982
6.1
8.6
11.8
13.6
11.8
7.9
Prime rate
7.7
10.8
15.1
16.7
17.0
12.0
Mortgage
rate
(FHLMC)
8.9
10.1
12.5
14.3
17.7
14.0
New Aaa
utilities
(Moody's)
8.3
9.2
10.8
13.6
16 3
11.7
Success in reducing the upward momentum of inflation and interest rates was achieved at a considerable cost. And it should be
carefully noted that the unexpected severity and length of the
2-4
THE BUDGET FOR FISCAL YEAR 1984
economic downturn in 1981 and 1982 can be directly traced to the
unprecedented buildup of inflationary forces in the 1970's. During
the 1973-1981 period, the rate of increase of consumer prices averaged 9.4% a year, the most rapid rate of peacetime inflation ever
experienced in the United States. Indeed, on a cumulative basis,
the 105% increase in the consumer price level that occurred from
1973 to 1981 actually exceeded the 102% cumulative price increase
of the World War I period (1913-1920) and the 72% price increase
of the World War II period (1940-1948).
160 Years of Inflation
Average Aartyal
%
12
12
mm <3j
Inflationary pressures of the sort experienced during the past
decade extracted a heavy toll from the U.S. economy. Investors
shifted capital holdings away from productive financial assets and
into non-productive tangible assets such as gold, commodities, and
excessive real estate investment. Tax and depreciation schedules
were distorted, and net business investment in new plant and
equipment lagged well behind historical trends. Uncertainty and
pessimism became the dominant psychological attitude, and economy-wide productivity and real output growth remained stagnant.
Cost pressures from record interest rates, inflated nominal wage
compensation, indirect business taxes, and increasing energy and
other raw materials prices caused unit costs in the non-financial
2-5
ECONOMIC ASSUMPTIONS AND THE BUDGET
corporate sector to grow more rapidly (10.2% per year) than unit
prices (8.6%) from the fourth quarter of 1978 to the second quarter
of 1982. As a result, profit margins were badly squeezed, declining
by 24%, or at an annual rate of 7.5%.
UNIT PRICES, COSTS, AND PROFITS: NONFINANCIAL CORPORATE SECTOR
(Percent change; annual rate)
Unit
prices •
1978-4-1982:2
1982-2-1982-4
Unit costs 2
8.6
4.8
10.2
3.3
Profit
margins 3
7.5
25.3
•The deflator for gross national product of nonfinancial corporate business.
Labor and interest charges plus non-factor costs (e.g., depreciation) divided by real output of nonfinancial corporate sector.
Pre-tax profits (with IVA and CC adjustments) of nonfinancial corporate business divided by output in 1972 dollars.
2
3
The collapse of corporate earnings forced across-the-board cuts in
inventories, production, and employment. As indicated by the most
recent data from the national income and product accounts, unusually large declines occurred in inventory investment and net exports. In particular, a boom-like inventory build-up that took place
in the second and third quarters of 1981 was reversed in 1982. As
shown in the table below, the massive inventory liquidation accounted for almost all (88%) of the reduction in real GNP from the
third quarter of 1981 (the cyclical peak) to the final quarter of
1982. In a typical postwar recession, the decline in inventory investment accounts for only about 57% of the peak-to-trough decline
in real GNP.
COMPONENTS OF DECLINE IN REAL GNP
(Dollar amounts in billions)
Peak
1981:3
Likely
trough
1982:4
Relative contribution to real
GNP change
Change
$1,510.4 $1,471.7 - $ 3 8 . 7
951.4
968.0
16.6
173.9
159.6 - 1 4 . 3
41.7
-1.2
42.9
-34.2
16.5 -17.7
39.2
21.1 -18.1
110.7
123.7
13.0
175.7
175.4
-0.3
Real GNP
Consumption
Business fixed investment.,
Residential construction
Inventory change
Net exports
Federal purchases
State and local purchases..
This recession
Postwar
average'
-100.0%
+ 42.9
-37.0
-3.1
-88.4
-46.8
+ 33.6
-0.8
-100.0%
-1.1
-35.6
-18.4
-57.0
+ 11.2
-20.0
+ 20.6
•Covers 5 postwar recessions beginning with the 1953-54 downturn.
Ironically, the shift in inflation expectations that appeared to
occur in mid-1982, illustrated in part by the sharp break in interest
rate pressures, may have worked to prolong the recession during
the second half of the year. With a lower inflation outlook, bottomline-oriented business executives saw the need to curtail credit
demands and to pare back plans for capital expenditures and other
operations, at least temporarily. These decisions generated a last
380-000
0 - 8 3 - 3
QL
3
2-6
THE BUDGET FOR FISCAL YEAR 1984
round of significant inventory reduction, severe cost control measures, and additional retrenchment in production and employment
during the third and fourth quarters.
Similarly affected by changing inflation conditions, individuals
throughout the economy undertook strong belt-tightening measures
to reduce spending and improve liquidity and balance sheet positions. At the same time, investors intensified efforts to reshuffle
portfolios away from commodities and tangible assets and toward
more liquid financial securities such as stocks, bonds, money
market funds, and newly deregulated bank deposits offering competitive market interest rates. In response, the saving rate rose to
6.9% in the third quarter of 1982 from 5.4% in the first quarter of
1981. While stock and bond market prices rose sharply, the flow-offunds data indicate that the acquisition of tangible assets by households fell continuously from late 1981 through the end of 1982.
As a short-run influence, the renewed emphasis on reduced borrowing, increased saving, and the rebuilding of liquidity caused
additional weakness in current consumption and investment. Thus,
the larger than expected decline in the level of real output during
1982 can be traced in large part to the stepped-up effort during the
second half of the year to improve balance sheets and rebuild
financial savings in the new disinflationary environment. However,
as a longer-term influence, these saving and investment responses
to lower inflation and inflation expectations are quite healthy. No
recovery factor is more important than the systematic reduction of
inflation, and a low and stable inflation rate during the years
ahead will create the balance, efficiency, and equilibrium necessary
to generate sustained economic recovery. The combined effects of
economic policies aimed at budget restraint, a permanent lowering
of tax rates, and a sustained reduction of inflation are creating a
strong foundation for economic growth in the 1980's.
But a year ago the full adjustment effects of disinflation were
not properly anticipated nor fully understood by the majority of
economic forecasters. The second wave of recession that developed
during the final two quarters of the year came as a surprise to
most analysts. The powerful impact on all forms of financial and
economic activity that resulted from the sweeping shift of inflation
expectations served to derail the projection of second-half recovery
that was widely forecast both in and outside of Government.
Looking back on economic forecast estimates published by the
administration, the Congressional Budget Office, and the Blue Chip
Indicators (an average of 43 private sector forecasts) in early 1982,
to a remarkable extent these projections were in agreement. But it
turned out that these Government and non-Government projections
were substantially wide of the mark in every key area.
2-7
ECONOMIC ASSUMPTIONS AND THE BUDGET
The Economy in 1982: Forecasts vs. Actual
Inflation (GNP Deflator)1
Nominal GNP;
Admin
CBO
Blue
Chip
Real GNP
x;x\"x:;
- ;>xvX<x
Admin.
Actual
1
CBO
Blue
Chip
Admin. CBO
Blue
Chip
Actual
Unemployment Rate ( % ) — 4 t h Quarter
:;
m
m
Actual
ill m illl ^
Admin
CBO
Blue
Chip
Actual
"Percent increase From t i e 4th Quarter of Calendar Year 1981 to th« 4 t i Qufertvr of
The consensus projected real GNP to rise from the fourth quarter of 1981 to the fourth quarter of 1982 by 3.0%, with a strong
second-half showing, but actual output declined by 1.2%. The projected 7.2% rise in the GNP implicit price deflator was much
larger than the actual increase of only 4.6%. Nominal GNP increased by a meager 3.3%, but the consensus forecast anticipated a
more robust 10.4%. The unemployment rate by yearend 1982 was
projected in a range of 8.1% to 8.8%, but the average rate for the
fourth quarter turned out to be 10.7%. Finally, the 91-day Treasury
bill rate was expected to average around 11%% in last year's fourth
quarter, but the actual rate was 7.9%.
The combined effects of these large forecast errors will have a
significantly adverse impact on the budget totals. Some of the
effects were felt in 1982, but the heaviest impact of the unanticipated economic changes will be felt in 1983 and the outyears. For
example, as described in greater detail later in this chapter, the
1983 deficit has been reestimated upward by $66 billion as a result
of economic events in 1982.
Recently there have been a number of developments to suggest
that the economy bottomed in the fourth quarter of 1982 and that
a 1983 recovery is imminent. New housing starts and permits
2-8
THE BUDGET FOR FISCAL YEAR 1984
reached their trough in October 1981 and have risen 43% and 75%,
respectively, since then. The index of 12 leading indicators has
risen in 7 out of the last 8 months. The ratio of coincident to
lagging indicators (which typically leads an upturn in the economy
by about 3 months) has been rising steadily since its July 1982
trough. Profit margins in the nonfinancial corporate sector are
estimated to have increased at an annual rate of about 25%, reflecting better alignment of costs and prices. The interaction of
lower tax rates, reduced inflation, and falling interest rates has
placed the consumer in a strengthened position with respect to
balance sheets, liquidity, after-tax income, and purchasing power.
The massive inventory liquidation in the fourth quarter of 1982
(real inventories were accumulated at an annual rate of $3.4 billion
in the third quarter and liquidated at a $17.7 billion rate in the
fourth quarter) sets the stage for a recovery of employment and
production in 1983. The recent decline in the value of the dollar
should, with a lag, improve the competitive position of U.S. exporters.
Locating the exact inflection point of economic recovery is a
difficult task, but most signs point toward recovery during the first
half of 1983, with greater momentum for economic growth developing during the year's second half. From the fourth quarter of 1982
to the fourth quarter of 1983, real output is expected to rise by
3.1%, while nominal GNP is projected to increase by 8.8%. Both
inflation and interest rates are expected to consolidate the progress
that occurred in 1982. The rate of unemployment is projected to
trend downward during the year's second half, but for the year as
a whole the unemployment rate is projected to average 10.7%.
Economic Assumptions
In contrast to the short-range forecast for 1983, the longer-range
assumptions for the 1984-1988 period are not intended as precise
forecasts of future economic conditions. Instead, they are trend
projections, consistent with the economic policy objectives of the
administration, that assume steady progress in reducing unemployment, inflation, and interest rates, and in sustaining strong real
growth during the outyears. Although the growth of real output,
productivity, and plant and equipment investment have fallen
below trend in recent years, it is assumed that policies favoring
budget restraint, capital formation incentives, and a sustained fight
against inflation are consistent with a trend rate of growth of real
output of 4% during the 1984-1988 period. Consistent with this
trend growth of real output, the unemployment rate is expected to
fall gradually to a calendar year average of 6.5% by 1988. Underscoring the commitment to a sustained inflation reduction and a
moderate rate of monetary expansion, the growth of nominal GNP
2-9
ECONOMIC ASSUMPTIONS AND THE BUDGET
is estimated to decline gradually from 9.2% in 1984 to 8.6% in
1988. This moderate growth rate for total spending or aggregate
demand contrasts with the inflationary 11.2% growth of nominal
GNP during 1977-1981.
SHORT-RANGE ECONOMIC FORECAST
(Calendar years; dollar amounts in billions)
Item
Major economic indicators:
Gross national product, percent change, fourth quarter over
fourth quarter:
Current dollars
Constant (1972) dollars
GNP deflator (percent change, fourth quarter over fourth
quarter)
Consumer Price Index (percent change, fourth quarter over
fourth quarter) 2
Unemployment rate (percent, fourth quarter) 3
Annual economic assumptions:
Gross national product:
Current dollars:
Amount
Percent change, year over year
Constant (1972) dollars.Amount
Percent change, year over year
Incomes:
Personal income
Wages and salaries
Corporate profits
Price level:
GNP deflator:
Level ( 1 9 7 2 = 1 0 0 ) , annual average
Percent change, year over year
Consumer Price Index.-2
Level (1967 = 100), annual average
Percent change, year over year
Unemployment rates:
Total, annual average 3
Insured, annual average 4
Federal pay raise, October (percent) 5
Interest rate, 91-day Treasury bills (percent) 6
Interest rate, 10-year Treasury notes (percent)
Actual
1981
Forecast
1982
]
1983
1984
9.6
0.7
3.3
-1.2
8.8
3.1
9.2
4.0
8.9
4.6
5.6
5.0
9.4
8.1
4.4
10.5
5.0
10.4
4.4
9.5
2,938
11.6
3,058
4.1
3,262
6.7
3,566
9.3
1,503
1.9
1,476
-1.8
1,496
1.4
1,555
3.9
2,416
1,494
232
2,570
1,560
2,935
175
2,727
1,640
177
195.5
9.4
207.2
6.0
218.1
5.2
229.4
5.2
272.3
10.3
288.6
6.0
302.9
4.9
316.8
4.6
7.5
3.5
4.8
14.1
13.9
9.5
4.7
4.0
10.7
10.7
5.3
9.9
4.7
6.1
7.9
9.8
13.0
8.0
10.2
1,780
206
1
Preliminary
2
actual data.
CPI for urban wage earners and clerical workers. Two versions of the CPI are now published. The index shown here is that currently used, as
required by law, in calculating automatic cost-of-living increases for indexed Federal programs. The figures in this table reflect the actual CPI for
December 1982, released January 2 1 , 1983, which was 0.7% lower than had been projected; consequently, the cost-of-living adjustments
estimated
in the budget are higher than the actual adjustments will be.
3
Percent of total labor force, including armed forces stationed in the U.S.
4
This indicator measures unemployment under State regular unemployment insurance as a percentage of covered employment under that
program.
It does not include recipients of extended benefits under that program.
5
General schedule pay raises become effective in October—the first month of the fiscal year. Thus, the October 1984 pay raise will set new
pay6 scales that will be in effect during fiscal year 1985. The October 1981 pay raise for military personnel was 14.3%.
Average rate on new issues within period, on a bank discount basis. These projections assume, by convention, that interest rates decline with
the rate of inflation. They do not represent a forecast of interest rates.
The inflation rate during the outyear period is assumed to range
between 4.5% and 5.0%, while both short- and longer-term interest
rate trends are projected to decline further. By 1988, the 91-day
2-10
THE BUDGET FOR FISCAL YEAR 1984
Treasury bill rate is estimated at around 6%, with longer-term
Government bonds yielding somewhat more. Importantly, with economic policies geared toward steady deficit reduction in 1984 and
in the outyears, further reductions in inflation premiums as well as
in the "real" or inflation-adjusted component of market interest
rates are expected.
LONG-RANGE ECONOMIC ASSUMPTIONS
(Calendar years; dollar amounts in billions)
Assumptions
1985
Major economic indicators:
Gross national product, percent change, fourth quarter
over fourth quarter:
Current dollars
Constant (1972) dollars
GNP deflator (percent change, fourth quarter over
fourth quarter)
Consumer Price Index (percent change, fourth quarter
over fourth quarter) *
Unemployment rate (percent, fourth quarter) 3
Annual economic assumptions:
Gross national product:
Current dollars:
Amount
Percent change, year over year
Constant (1972) dollars:
Amount
Percent change, year over year
Incomes:
Personal income
Wages and salaries
Corporate profits
Price level:
GNP deflator:
Level ( 1 9 7 2 - 1 0 0 ) , annual average
Percent change, year over year
Consumer Price Index-.*
Level (1967 = 100), annual average
Percent change, year over year
Unemployment rates:
Total, annual average 2
Insured, annual average3
Federal pay raise, October (percent) 4
Interest rate, 91-day Treasury bills (percent) 5
Interest rate, 10-year Treasury notes (percent)
1987
1986
1988
9.0
4.0
8.7
4.0
8.7
4.0
8.6
4.0
4.8
4.5
4.5
4.4
4.7
8.5
4.5
7.8
4.5
7.0
4.4
6.2
3,890
9.1
4,232
8.8
4,599
8.7
4,995
8.6
1,617
4.0
1,682
4.0
1,749
4.0
1,819
4.0
3,142
1,921
246
3,377
2,090
296
3,661
2,281
316
3,956
2,483
329
240.6
4.9
251.7
4.6
263.0
4.5
274.7
4.4
331.4
4.6
346.6
4.6
362.2
4.5
378.3
4.4
8.9
4.2
6.0
7.4
9.0
8.1
3.8
5.7
6.8
8.0
7.3
3.5
5.6
6.5
7.4
6.5
3.2
5.5
6.1
6.7
1
CPI for urban wage earners and clerical workers. Two versions of the CPI are now published. The index shown here is that currently used, as
required by law, in calculating automatic cost-of-living increases for indexed Federal programs. The manner in which this index measures housing
costs2 will change significantly in 1985.
Percent of total labor force, including armed forces stationed in the U.S.
3
This indicator measures unemployment under State regular unemployment insurance as a percentage of covered employment under that
program.
It does not include recipients of extended benefits under that program.
4
General schedule pay raises become effective in October—the first month of the fiscal year. Thus, the October 1985 pay raise will set new
pay5 scales that will be in effect during fiscal year 1986.
Average rate on new issues within period, on a bank discount basis. These projections assume, by convention, that interest rates decline with
the rate of inflation. They do not represent a forecast of interest rates.
2-11
ECONOMIC ASSUMPTIONS AND THE BUDGET
EFFECTS ON THE BUDGET OF CHANGES IN ECONOMIC ASSUMPTIONS SINCE LAST YEAR
(In billions of dollars)
Current budget estimates* adjusted to February 1982
forecast:
Receipts
Outlays
Deficit ( - )
Changes due to economic assumptions:
Receipts
Outlays.Inflation
Unemployment
Interest rates
Interest on deficits
Total, outlays
Increase in deficit ( — )
Current budget estimates: 1
Receipts
Outlays
Deficit ( - )
Addendum:
Change in deficit due to:
Actual 1982 economic performance
Change in the forecast for 1983-1987
Percent due to 1982 economic performance
1
1983
1984
1985
1986
1987
667.6
814.1
751.4
847.9
835.9
908.6
972.7
968.6
1,057.7
1,025.0
-146.6
-96.5
-72.7
4.0
32.7
-70.1
-91.7
-111.6
-130.8
-141.4
-1.2
11.2
-10.7
-4.6
11.6
-15.8
29.2
-5.2
10.2
-13.8
39.1
-5.4
8.9
-5.7
45.1
8.1
-3.7
13.3
-13.5
18.5
14.6
20.4
30.4
43.0
-78.2
-106.3
-132.0
-161.1
-184.4
597.5
822.2
659.7
862.5
724.3
929.0
841.9
999.0
916.3
1,068.0
-224.8
-202.8
-204.7
-157.1
-151.7
65.7
12.5
(84)
77.1
29.2
(72)
90.0
42.0
(68)
106.2
54.9
(66)
116.5
67.9
(63)
Includes off-budget outlays.
Changes in the Budget Outlook Since Last Year
The budgetary effects of the large forecasting errors in 1982
turned out to be quite substantial. A portion of the budget impact
of last year's unanticipated economic changes affected the 1982
fiscal totals, where outlays were increased by $0.4 billion as a
result of weaker real growth and higher unemployment, and revenues were reduced by $22.4 billion as a result of lower inflation
and nominal GNP. The improvement in financial conditions came
too late in the year to prevent interest expenses from increasing by
$3.8 billion. The net effect of all these changes raised the deficit by
$26 billion from the level estimated in February 1982.
But the major budget effects of the 1982 forecasting errors will
occur in 1983 and the outyears, and these economic influences are
the single biggest factor in the large upward revisions of the deficit
projections for the 1983-1987 period as compared with deficit estimates published one year ago. For the 1983 budget year the net
effects of weaker than expected growth, lower inflation, and falling
interest rates in calendar year 1982 are responsible for a $55
billion loss in receipts, an $11 billion increase in outlays, and a $66
billion increase in the deficit. The total deficit reestimate for 1983
2-12
THE BUDGET FOR FISCAL YEAR 1984
registered an increase of $78 billion, and thus the 1982 economic
changes were responsible for 84% of the net change in the 1983
deficit projection.
For the 1984-1987 budget estimates, the effects of the large gap
between predicted and actual economic conditions in 1982 are
equally significant. On average, the weak 1982 performance is expected to raise outlays by $25 billion during the 5-year period,
reduce receipts by $66 billion, and contribute an average $91 billion
to the upward deficit revisions. The 1982 economic impact is therefore estimated to contribute 69% of the total increase due to economic assumptions in the deficit estimates for the 1983-1987 planning interval.
COMPARISON OF FEBRUARY 1982 AND CURRENT ECONOMIC ASSUMPTIONS
(Calendar years-, dollar amounts in billions)
Nominal GNP:
1982 forecast 1
1983 forecast
Real GNP (percent change):
1982 forecast
1983 forecast
GNP deflator (percent change):
1982 forecast
1983 forecast
Interest rate on 91-day Treasury bills (percent):
1982 forecast
1983 forecast
Unemployment rate (percent; civilian labor force):
1982 forecast
1983 forecast
1982
1983
1984
1985
1986
1987
3,178
3,059
3,543
3,262
3,904
3,566
4,281
3,890
4,675
4,232
5,095
4,599
0.2
-1.8
5.2
1.4
5.0
3.9
4.7
4.0
4.4
4.0
4.3
4.0
7.9
6.0
6.0
5.2
5.0
5.2
4.7
4.9
4.6
4.6
4.5
4.5
11.7
10.7
10.5
8.0
9.5
7.9
8.5
7.4
7.0
6.8
5.5
6.5
8.9
9.7
7.9
10.9
7.1
10.0
6.4
9.0
5.8
8.2
5.3
7.4
'Adjusted for July 1982 historical revisions.
Differences between the new economic estimates for the 19831987 period and those made a year ago are relatively small, although, as discussed in the next section, after last year's disappointing forecast performance the new estimates accord more closely with recent experience and historical trends. The estimated level
of real output has been reduced by 7J£%, on average, while the
price level has been revised downward by an average of 2%%. As a
result of these factors, the level of nominal GNP is now expected to
average 10% lower than forecast in February 1982. Current estimates of the unemployment rate average 2.6 percentage points
above last year's forecast. Interest rates, on average, have been
revised downward by 0.9 percentage points. The combined effects of
these changes in the 1983-1987 economic assumptions will raise the
average deficit during the period by $132.5 billion. About 69% of
this deficit increase is attributable to weaker than anticipated 1982
economic performance, rather than reduced forecasts of 1983-87
real growth or inflation.
2-13
ECONOMIC ASSUMPTIONS AND THE BUDGET
Sensitivity of the Budget to Economic Growth
Assumptions
After last year's disappointing forecast performance, and its significant impact on the budget deficit, there is now greater than
usual interest and uncertainty concerning the probability of various real economic growth projections for 1983 and the subsequent
1984-1988 budget planning horizon. The administration's budget
projections are predicated on trends of sustained real growth and
moderate inflation through 1988. Over the 1983-1988 period real
GNP growth is projected to average 3.8%, somewhat higher than
the 3.3% postwar average registered over the past 35 years. The
4.8% projected rate of inflation over the 6-year interval 1983-1988
is also somewhat higher than the 4.2% postwar average, although
the current estimate represents a marked improvement over the
7.7% average inflation rate of the past 6 years.
AVERAGE ANNUAL GROWTH RATES
Actual
1947-1982
Administration
projection
1983-1988
76
33
4.2
88
38
4.8
Nominal GNP
Real GNP
GNP deflator
Some observers argue that the economy is capable of growing on
a trendline of 5% a year during the 1983-1988 period, similar to
the 6-year performance following the 1960-1961 recession. These
people believe that the administration's 4% trend growth estimate
is too cautious. But there are a number of factors that suggest that
the economy is not as healthy or balanced as it was in the early
1960's, and thus the probability of 5% real growth during the next
6 years would appear to be somewhat low.
AVERAGE REAL GNP GROWTH DURING POSTWAR CYCLICAL RECOVERIES
Trough quarter
Recession
1953-54
1957-58
1960-61
1969-70
1974-75
Average recovery
1954-2 ....
1958:2
1961-1
1970-4
1975:1
Average growth
during 6 years
following trough
(percent)
3.3
4.5
5.2
3.2
3.8
4.0
• Real GNP has been essentially flat for the last 4 years.
During this period corporate profits were sharply squeezed,
2-14
THE BUDGET FOR FISCAL YEAR 1984
and the rate of capacity utilization in manufacturing fell to a
postwar low of 69.9% in 1982. As a result, the above average
recovery in capital spending necessary for unusually strong
real output growth is unlikely to take place during the early
stages of recovery, even with the new policy of investmentoriented tax reduction. By contrast, in the early 1960's the
economy was operating at a relatively high rate of capacity
utilization (77.4% in 1961), so the reduction in tax rates could
stimulate business fixed investment very quickly.
• Although the administration is committed to a program of
steady deficit reduction, the fact remains that deficits will be
high relative to GNP for the next few years. Prospectively
large Federal borrowing requirements will absorb funds that
would otherwise finance productive investment. While this
capital absorption will not prevent recovery, it may
stand in the way of record growth such as that achieved
during the first part of the 1960's.
• Real or inflation-adjusted interest rates have been high for
the past several years, and as a result of the deficit situation,
they are likely to remain relatively high by historical standards for some time. The real Treasury bill rate is projected to
average 2.3% during 1983-1988, somewhat higher than the
1.7% in the 6 years following the 1960-1961 recession. While
the economy will ultimately adjust to these high real interest
rates, they may slow the initial phase of the forthcoming
recovery.
• The current financial difficulties facing many developing
countries are forcing them to adopt difficult corrective measures that may slow the growth of imports from the United
States and other industrial countries. This factor may also
tend to inhibit economic growth during the period immediately ahead.
Another group of observers argue that the real economy will
move along a 3% growth trendline during the years ahead, similar
to the more sluggish 6-year performance following the 1969-1970
recession. These people argue that the administration's 4% real
growth trendline is too optimistic. But a number of structural and
policy factors suggest that the 3% estimate is unduly pessimistic.
• With massive cost-cutting measures by businesses in recent
years, significant breakthroughs in high-technology areas, and
a set of economic policies designed to increase the rate of new
captial formation, the Nation is likely to generate strong
productivity gains in the years ahead. A high rate of productivity growth is a basic ingredient for strong real economic
growth and sustained low rates of increase in unit labor cost
and inflation. With these productivity advances, it would
2-15
ECONOMIC ASSUMPTIONS AND THE BUDGET
seem unreasonable to expect the projected recovery to be
substantially below average.
Below average economic recoveries after the 1969-1970 and
1974-1975 recessions were marked by a pattern of rising inflation that interfered with the efficient working of the economy
and caused a misuse of scarce resources. This administration,
with the cooperation of the Federal Reserve, is determined to
restrain inflationary pressures in order to avoid the distortions and imbalances of the low-growth 1970's.
The elimination of unnecessary and inefficient Federal regulations will reduce costs and increase efficiency throughout
the economy. In combination with tax rate reductions that
raise the after-tax rewards for work, saving, and investment,
policy measures taken to reduce Federal interference in the
economy suggest that the rate of real growth in the 1980's
should exceed the below trend growth rate of the 1970's.
A major determinant of the slower growth during the past
decade was a series of oil price shocks that interfered with
both production and consumption. But in view of the current
weakness in oil markets, the likelihood of growth-inhibiting
oil price increases in the foreseeable future seems remote.
ALTERNATIVE GROWTH ASSUMPTIONS*
(Percentages; calendar years)
1983
Real GNP growth rate (4th quarter/4th quarter):
Administration forecast
1% higher growth
1% lower growth
Unemployment rate (4th quarter):
Administration forecast
1% higher growth
1% lower growth
1984
1985
1986
1987
1988
3.1
4.1
2.1
4.0
5.0
3.0
4.0
5.0
3.0
4.0
5.0
3.0
4.0
5.0
3.0
4.0
5.0
3.0
10.4
10.0
10.8
9.5
8.8
10.2
8.5
7.3
9.7
7.8
6.2
9.4
7.0
5.0
9.0
6.2
3.7
8.6
* Assumes inflation and interest rates are the same in all cases as in the administration forecast.
Looking at all these factors, it seems reasonable to assert that
the momentum of a decade-long trend of economic weakness and
stagnation argues against a record-breaking rate of recovery of 5%
or more, represented by the optimistic case. However, a number of
significant economic policy changes suggest that real growth in the
United States during the next several years will rise above the
slow growth trend of the 1970's and regain its typical postwar 6year recovery rate of 4%, rather than the pessimistic 3% growth
case.
Of course, the impact on prospective budget deficits of different
rates of economic growth would be significant. As the following
table illustrates, in comparison with administration estimates, and
holding inflation constant, the optimistic growth case will lower
2-16
THE BUDGET FOR FISCAL YEAR 1984
the deficit significantly, while the pessimistic case substantially
worsens the deficit problem.
EFFECT ON DEFICIT OF HIGHER OR LOWER REAL GROWTH
(In billions of dollars)
1983
1984
1985
1986
1987
Administration forecast, total deficit, current services
basis
- 2 2 5 . 4 -248.5 -267.3 -284.4 -308.1 -315.4
Alternative deficit projections:
1 % higher growth*
-222.1 -235.0 -240.6 -241.9 -247.1 -232.4
1 % lower growth 1
-229.2 -262.3 -294.0 -325.9 -367.4 -395.4
'Beginning January 1983.
It is well known by policymakers that higher or lower rates of
economic growth, putting aside changes in inflation, can substantially alter the profile of outlays, receipts, and deficits. With this in
mind, it is not surprising that during the past 10 years longer-term
economic assumptions made by Government have uniformly and
systematically been excessive and unrealistically optimistic, thus
masking the growing problems of budgetary imbalance.
The 1982 experience, where economic assumptions agreed to by
both the Congress and the administration were consistently off the
mark, merely added new momentum to the continuing trend. Not
only has the trend of repeatedly excessive forecasting optimism
prevented any serious or sustained discussion of the growing structural imbalances in the budget, but the continued use of misleading forecasts has undermined public confidence in the Government's ability to administer and control its programmatic and
financial responsibilities. With the 1982 experience fresh in mind,
basing the 1984 budget on a set of economic assumptions that are
realistic and prudent is a particularly important priority at the
present time.
Cyclical vs. Structural Deficits
Even with the assumption of 5% trend real output growth for 6
consecutive years, certainly an unrealistically high estimate under
current circumstances, the previous section noted that on a current
services basis the remaining budget deficit of about 4.9% of GNP
would be historically high, and particularly so for the late stages of
a recovery cycle. Indeed, the key issue with respect to current and
prospective deficits is that a strong cyclical recovery of the economy will only remedy a portion of the deficit problem. As this
section will discuss, in the event the level of the economy is able to
return to a realistic benchmark of "full" employment by 1988,
fiscal policy would still be faced with a large and expanding "structural" deficit in the outyears. And the prospect of a permanently
large structural deficit problem is likely to have a significant ad-
ECONOMIC ASSUMPTIONS AND THE BUDGET
2-17
verse impact on capital formation and economic growth during the
period ahead.
The high-employment budget concept is used by economists to
measure the cyclical effects of the economy on the budget. Under
this concept, estimates are made of Federal receipts, outlays, and
the deficit as they would be if the economy were at high employment. The first step in developing these measures is to assess the
level and growth of potential GNP. Potential GNP depends on
available resources (such as labor and capital) and on the efficiency
with which these resources are used (productivity). Once the level
and growth of potential output are estimated, it is—by convention—multiplied by the actual or projected price level to obtain
nominal high-employment GNP. This nominal high-employment
GNP, and associated estimates of income shares, unemployment,
and so forth, are used to estimate Federal receipts and those outlays that are sensitive to changes in economic variables. At high
employment, incomes and, therefore, receipts would be larger than
they are now, while unemployment compensation and other
income maintenance outlays would be smaller. Thus, the deficit
would be smaller.
According to the last estimate published by the Council of Economic Advisers (CEA) in January 1981, the economy was operating
close to its potential in the final quarter of 1978. Up to that time,
the rate of growth of real potential GNP was estimated at 3.0%,
and the unemployment rate was then 5.9%.
The growth of potential GNP since the end of 1978 has probably
been lower than the 3.0% indicated by the 1981 estimates. This
judgment is based primarily on the slow growth of capital formation relative to labor force growth, which reduced the trend growth
of productivity. Although no precise estimates are possible, it is
likely that there was about a 2.2% annual growth of potential real
GNP instead of 3.0% after 1978, so that the level of potential real
GNP was $1,602 billion in the fourth quarter of 1982, and potential
nominal GNP was $3,376 billion. Over the next 6 years, stronger
investment and productivity growth should more than offset the
expected slowdown in growth of the labor force, resulting in a
slight increase in the rate of growth of potential GNP to 2.4% a
year. By the end of 1988, potential and projected actual GNP are
about the same ($1,846 billion in 1972 dollars), and the actual
unemployment rate is about the same as the high-employment rate
(about 634%).
Relative to current services projections, the high-employment
deficit is $71 billion lower in 1983, indicating that 31% of the
deficit is cyclical in that year, and 69% structural in nature. By
1988, 97% of the $315 billion projected current services deficit is
seen to be structural in nature.
2-18
THE BUDGET FOR FISCAL YEAR 1984
The following table compares the current services deficits projected in the 1984 budget with high-employment estimates on a
current services basis.
HIGH EMPLOYMENT DEFICIT
(Dollar amounts in billions)
1983
Total deficit, current services basis
High employment deficit
Percent structural
225
154
(69)
1984
249
181
(73)
1985
267
210
(79)
1986
284
243
(85)
1987
308
284
(92)
1988
315
306
(97)
Many arbitrary judgments are involved in estimating potential
output and the high-employment budget. Potential output does not
measure engineering capacity, but rather is an economic judgment
as to the output that would be produced if the demand for goods
and services were kept sufficiently high, but not so high as to
generate inflationary instability. The unemployment rate at which
this occurs is a matter of judgment, but is widely agreed to have
been rising during the 1970's. The high-employment budget is inherently an estimation of "what might be" under different than
actual conditions. Because of these many arbitrary judgments, the
administration believes that this concept should be used only as an
abstract analytical exercise rather than as a policy guide.
The Council of Economic Advisers has revised its estimates of
potential GNP six times in the past 10 years, almost always in a
downward direction, and they have now suspended publication of
the series. This points up the fact that potential as well as actual
GNP is affected by current events and economic policies. For example, the energy shocks, resource diversion to comply with Government regulation, slower growth in the capital-labor ratio and in
research and development, and increasing Government deficits and
inflation undermined the growth in productivity and of potential
output throughout the 1970's. Thus, the CEA estimate of the
growth of potential real GNP slipped from 4.3% a year in 1970 to
4.0% in 1974, to 3.5% in 1977, 3.0% in 1979, and 2.5% in 1980.
There was a corresponding downward trend in the CEA estimates
of productivity growth from 2.8% to 1.0%, and a rise in their
estimated high-employment unemployment rate from 3.8% to
5.1%.
Use of inflation and debt service conventions makes the path by
which high employment is reached very important in estimating
the level of the high-employment deficit. As conventionally measured, nominal potential GNP would be higher (and the deficit
lower) following an inflationary binge—which would jeopardize the
maintenance of high employment—than after the kind of steady
noninflationary growth embodied in the 1984 budget economic assumptions. This is because the actual inflation would raise the
ECONOMIC ASSUMPTIONS AND THE BUDGET
2-19
price level used to calculate nominal potential GNP, and thereby
raise high-employment receipts. Likewise, a path of cumulative
cyclical deficits prior to reaching high employment builds up debt
service requirements that, by conventional measures, are included
in the high-employment deficit.
Notwithstanding these conceptual and measurement problems,
however, high-employment budget deficits estimated on any reasonable basis demonstrate that the deficit problem remains serious
even when the economy moves back on its path of potential
growth.
• Three-fourths of the 1984 deficit and 97% of that remaining
in 1988 is structural in nature. Structural deficits are a significant problem that will not be remedied by cyclical revival
of economic growth.
• Worse still, structural deficits are a growing problem, doubling in size between 1983 and 1988.
Deficits of the size foreseen without the policy actions recommended in this budget are likely to inhibit economic recovery. If
they are financed by money creation, they will renew inflation and
again bring on the inefficiencies and misdirection of resources that
led to the stagnant growth of the 1970's. If they are not monetized,
then there is the likelihood that the excess credit demand of the
Federal Government will crowd out productive private investment
and economic growth, generate excessive real interest rates that
will further inhibit the expansion of investment and trade, and
create an unbalanced and unsustainable recovery. Each of these
alternative economic effects is harmful to the long-run growth and
well-being of the Nation.
Sensitivity of the Budget to Economic Assumptions:
Rules of Thumb
As discussed in previous sections, the sensitivity of the budget to
economic conditions has become increasingly important. The unexpected effects of changes in economic conditions during 1982 has
already been discussed. But the problem is not a new one. Actual
Federal spending in 1980 was $48 billion higher than the original
budget estimate in January 1979, with over half of the increase
directly attributable to economic conditions different from those
originally assumed. Similarly, 1981 outlays exceeded the original
budget estimate by $45 billion, with assumptions about economic
conditions accounting for $32 billion of the increase. Outlays in
1982 were $40 billion higher than estimated in March 1981, of
which $22 billion was due to economic assumptions. At the same
time, economic assumptions account for a shortfall of $48 billion
from the original estimate of 1982 receipts.
2-20
THE BUDGET FOR FISCAL YEAR 1984
The sensitivity of the budget aggregates to economic conditions
seriously complicates budget planning. In recent years, for example, a sharp rise in interest rates added substantially to interest
costs. Estimated outlays for net interest in 1983 are $88.9 billion,
compared to only $29.9 billion in 1977. The enormous rise in consumer prices between 1979 and 1981 has added substantially to
spending for indexed programs such as social security, and this,
combined with much less rapid growth in the wage and salary tax
bases that support these systems than in their benefit outlays, has
contributed greatly to their financial problems.
An understanding of changes in budget estimates requires an
understanding of the magnitudes of the sensitivity of the budget to
the economy. This section gives such estimates in the form of rules
of thumb. In general, the discussion is concerned with tax and
spending responses that are automatic under current law, abstracting from the "freeze" and deferral proposals in this budget, which
would override some of those responses.
Inflation.—Inflation has a direct impact on both Federal tax
collections and Federal spending. Tax collections increase automatically as inflation swells various tax bases—corporate profits,
personal incomes, payrolls, and sales. The increase in total receipts
has in general been proportionally larger than the growth in incomes because of the progressive individual income tax with exemptions and brackets fixed. Beginning in 1985, however, indexation of tax brackets to inflation will reduce this effect. At the same
time, Federal spending in a variety of areas—such as social security, interest, Federal pay, and medicare—also increases as a result
of inflation. Outlay increases may also occur in other areas, such
as defense procurement, as a result of congressional or executive
action to maintain real program or benefit levels.
The automatic increases in response to inflation differ in timing
and magnitude as between receipts and outlays. Tax collections
begin to rise almost immediately when inflation increases, in large
part due to our system of withholding and estimated payments. For
outlays, however, the lags are generally longer. Statutory cost-ofliving benefit increases occur at fixed intervals and are not paid
until several months after the price increases that triggered them.
(Income tax indexation will also occur with a lag.) Similarly, higher
interest rates that may accompany higher inflation are reflected
only in new debt issues and do not affect existing debt until it must
be refinanced.
The table below shows the automatic effects of a one percentage
point rise in the inflation rate on outlays and receipts in 1984
through 1988. The effects shown are those that would occur under
current law without the 1984 spending freeze proposed in this
budget. The increases in outlays are for indexed programs, for
2-21
ECONOMIC ASSUMPTIONS AND THE BUDGET
interest costs, and for medicare and medicaid, which respond automatically under current law to price changes. If inflation is one
percentage point higher than projected, beginning in January 1984,
outlays in 1985 would be roughly $8 billion higher (in the absence
of a freeze), and receipts would be $12 billion higher, thus reducing
the deficit by $4 billion. To the extent that discretionary programs
are also adjusted for inflation, the outlay increase would be higher
and the reduction in the deficit would be smaller.
Some important caveats should be noted. First, these estimates
assume that real growth, productivity, and unemployment are unchanged. If the higher inflation is offset by reduced real growth,
the outlay increase would be higher and the receipt increase (if
any) would be less. Second, these estimates reflect an increase in
domestic prices that is accompanied by a corresponding increase in
domestic incomes. To the extent that the higher inflation is due to
import price increases (for example, due to a fall in the foreign
exchange value of the dollar as a result of lower U.S. interest
rates) for which there are no corresponding increases in domestic
incomes, the increase in receipts would be less than is shown.
Third, the receipts increase resulting from inflation is quite sensitive to how the inflation-induced growth in incomes is distributed
by type of income—age and salary income, non-wage personal
income, and corporate profits, in particular—all of which are subject to different effective marginal Federal tax rates. Finally,
higher inflation would likely be accompanied by higher interest
rates, which would also add significantly to outlays.
The same considerations (and rules of thumb) apply in reverse if
inflation is lower than projected.
SENSITIVITY OF THE BUDGET TO RATES OF ECONOMIC CHANGE
(Fiscal years, in billions of dollars, current law basis)
1984
Effects of 1 percentage point higher annual rate of inflation l beginning January 1984:
Receipts
Outlays
Decrease in deficit
Effects of 1 percentage point lower annual rate of growth
beginning January 1984:
Receipts
Outlays
Increase in deficit
1985
1986
1987
1988
3.2
2.8
12.1
9.1
22.1
16.0
34.6
22.8
49.9
28.4
05
30
6.0
11.9
21.5
-2.9
0.6
-11.0
3.2
21.3
6.2
-33.0
10.8
-47.0
15.9
3.3
14.2
27.5
43.8
62.9
'And interest rates.
Real GNP growth.—Differences from anticipated levels of real
GNP can also affect the budget substantially. Lower real GNP
growth, by itself (with no change in the rate of inflation), would
380-000 0 - 83 - 4 : QL 3
2-22
THE BUDGET FOR FISCAL YEAR 1984
reduce personal and corporate incomes and therefore lower receipts. Since lower real GNP growth is accompanied by higher
unemployment unless productivity growth is reduced equally, outlays for unemployment-sensitive programs would be increased. A
one percentage point lower real growth rate beginning in January
1984 would raise outlays in fiscal year 1985 by $4 billion, reduce
receipts by $11 billion, and increase the deficit by $15 billion. These
effects are generally symmetrical; they would be of about the same
magnitude but opposite sign for a percentage point lower inflation
or a percentage point higher real growth.
The acute sensitivity of the budget to the economy under current
laws means that when the economy is volatile the budget tends to
be volatile also. Current services estimates should thus be understood as uncertain "best estimates" based in part on the economic
forecast.
The above discussion describes generally how outlays and receipts respond, in the aggregate, to changes in rates of economic
growth or inflation under current law. The discussion below provides further detail on the current law responsiveness of outlays to
changes in the levels of prices, interest rates, and the rate of
unemployment.
Prices.—Because of the program-by-program variation in the
timing of automatic cost-of-living increases under existing law, the
outlay effect of increases in the Consumer Price Index (CPI) on
indexed programs will differ depending upon their timing. Fiscal
year 1985 outlays, for example, will be most affected by projected
CPI increases for the year between the first quarter of calendar
year 1983 and the first quarter of calendar year 1984. The rise in
the CPI during this period would determine, under current law, the
July 1984 cost-of-living increases for social security, supplemental
security income, railroad retirement, and veterans pensions. (The
budget proposes delaying these increases 6 months, in accordance
with the recommendation of the bipartisan National Commission
on Social Security Reform.) Subsequent CPI increases would not
increase outlays for these programs until July 1985, only 3 months
before the end of that fiscal year, and thus have a much smaller
impact on that year's outlays.
Each percentage point increase in the CPI by the third quarter
of calendar year 1983 increases fiscal year 1985 outlays for indexed
programs by $2.5 billion. The fiscal year 1985 outlay effect resulting from CPI increases after the first quarter of calendar year 1984
would be substantially smaller.
These estimated effects of higher prices are conservative because
they do not include additional spending for other price-sensitive
programs such as medicare and medicaid. Nor do they include
ECONOMIC ASSUMPTIONS AND THE BUDGET
2-23
increases that may result from congressional or executive action to
maintain real program or benefit levels for discretionary programs.
Interest rates.—Additional outlays resulting from higher interest
rates occur only for new borrowing and do not affect existing debt
until it is refinanced. Thus, the outlay effect of a sustained interest
rate change increases over time as more and more securities are
issued at the higher (or lower) rates. The timing of the effect
therefore varies with the term structure of the public debt. Currently, about half of the public debt turns over for refinancing
within 15 months. A one percentage point increase in rates beginning January 1, 1983, would increase fiscal year 1984 outlays for
net interest by $7.1 billion. A one percentage point increase beginning July 1, 1983 would increase 1984 outlays by $5.8 billion.
Changed economic conditions also affect the deficit and therefore
the amount the Treasury needs to borrow. Based on the interest
rate assumptions used in this budget, a $100 billion 1984 deficit
increases 1984 net interest outlays by roughly $5.4 billion. The 1985
(full year) outlay effect of this 1984 deficit would be about double
this magnitude, or $9.8 billion.
Unemployment.—Higher unemployment leads directly to higher
unemployment benefits with almost no lag. It also raises outlays
for certain other programs, such as social security, food stamps,
and public assistance, which have more beneficiaries when unemployment rises. The outlay increases for the latter programs generally occur with some lag. A one percentage point rise in the unemployment rate would add an estimated $5.3 billion to 1984 outlays
with about two-thirds of the increase being for unemployment
benefits.
Federal pay raises.—Each additional percentage point increase in
Federal pay adds about $0.9 billion to outlays, with about one-third
going for the military, one-third for civilian pay in the Department
of Defense, and one-third for employees of civilian agencies.
Changes in sensitivity.—In recent years, legislative changes and
administrative reforms have somewhat mitigated the acute sensitivity of the budget to economic assumptions. Indexation of the
individual income tax, to begin in 1985, is one example; it will
reduce the growth in receipts in response to inflation-induced increases in nominal incomes. Elimination of the national trigger for
unemployment insurance extended benefits means that extended
benefits now only trigger on State by State, not simultaneously
nationwide, thus reducing the overall sensitivity of unemployment
compensation to the national unemployment rate. This, together
with a lower observed responsiveness of insured unemployment to
overall unemployment in recent years, has roughly halved the
estimated sensitivity of unemployment compensation to the unemployment rate.
2-24
THE BUDGET FOR FISCAL YEAR 1984
SENSITIVITY OF THE BUDGET TO ECONOMIC ASSUMPTIONS
(Fiscal years; in billions of dollars)
1983
1984
1985
1986
1987
1988
PRICES (EFFECT ON INDEXED PROGRAM OUTLAYS)
Sustained 1 % higher rate of inflation beginning:
Under current law:
January 1983
July 1983
Under proposed law:
January 1983
July 1983
One-time 1 % jump in price level occurring:
Under current law:
January 1983
July 1983
Under proposed law:
January 1983
July 1983
0.1
0.5
1.0
0.4
3.5
2.3
6.4
5.3
9.5
8.4
12.9
11.9
0.5
2.4
1.3
5.2
4.0
8.3
7.1
11.6
10.4
2.1
0.7
2.4
2.5
2.4
2.5
2.4
2.6
2.5
2.6
1.4
2.0
1.6
2.1
2.2
2.1
2.2
2.2
2.3
7.1
5.8
10.2
9.4
12.6
12.1
14.7
14.3
16.1
15.9
5.4
9.8
10.0
9.9
9.9
INTEREST RATES (EFFECT ON NET INTEREST)
Sustained one percentage point increase in
interest rates under budget policy deficits, beginning: l
January 1, 1983
July 1, 1983
2.2
0.4
INTEREST COST OF HIGHER FEDERAL BORROWING
Effect of $100 billion borrowing in 1984
UNEMPLOYMENT RATE
2
One percentage point higher rate beginning
January 1, 1983:
Unemployment benefits
3.0
Other unemployment-sensitive outlays
1.0
(Receipt effect) 3
(-11.7)
FEDERAL PAY RAISES
Outlay effect of one percentage point increase
in October 1983:
Military personnel
Civilian employees:
Department of Defense
Civilian agencies
2.8
2.6
2.3
3.1
3.5
2.0
2.0
2.0
2.0
1.8
-17.3) (-19.2) (-22.0) (-24.2) (-26.8)
0.3
0.4
0.4
0.4
0.5
0.2
0.3
0.2
0.3
0.2
0.3
0.3
0.3
0.3
0.3
'Omits receipts offset for Federal Reserve System deposits of earnings.
Includes subsequent interest on previous interest costs.
Assumes 1% higher unemployment rate is associated with 2.2% lower GNP, with no change in income shares.
2
3
Stricter eligibility standards and policing against fraud and
waste have somewhat reduced the estimated sensitivity of such
programs as food stamps and public assistance to unemployment.
At the same time, elimination of twice-a-year cost-of-living adjustments for Federal employee retirement, food stamps, and other
programs reduces the rapidity with which their outlays mount in
response to inflation. The program "freeze" and delays in cost-ofliving adjustments proposed in this budget, of course, will also
substantially reduce the near-term sensitivity of the budget to
economic assumptions—though only on a one-time basis.
PART 3
BUDGET PROGRAM
AND TRENDS
3-1
BUDGET PROGRAM AND TRENDS
The Current Services Outlook
Without the determined and sweeping corrections embodied in
the 1984 budget recommendations, the large outyear budgetary
imbalance projected under current services assumptions would
have become an insuperable barrier to non-inflationary economic
recovery. The estimates indicate that the long-standing "structural
imbalance" in the budget has been reinforced by the combination
of unanticipated economic and policy developments over the past
two years.
The prolonged recession and rapid disinflation have once again
dramatically reduced current law revenue projections.
Estimated receipts of $597.5 billion for 1983 are lower than actual
receipts for 1981—meaning that even with the strong recovery
assumed in the 5-year budget assumptions, revenues will be on a
permanently lower path.
Meanwhile, aggregate spending has risen steadily, despite the
major strides in reducing nondefense spending growth that have
been achieved over the past two budget cycles. Spending in 1983
will exceed 1981 levels by 21%, reflecting the steady buildup of
defense outlays, the explosion of debt service costs, and the continued, largely unchecked rise in basic retirement and medical entitlement programs.
While the resulting $225 billion total deficit for 1983 in part
reflects temporary recession pressures on the budget, the gap between outlays and receipts has now become so large—7% of GNP—
that it threatens to gain self-reinforcing momentum. This is shown
in the current services budget projections below.
The deficit embodied in current law and policy would remain
above 6% of GNP throughout the budget period, and would total
$315 billion even under assumed economic conditions of full employment in 1988. The massive absorption of private savings that
would be required to finance these current services deficits—averaging more than 100% of net private savings over 1984-1988—is
not compatible with actually reaching conditions of full employment in the outyears.
3-2
3-3
BUDGET PROGRAM AND TRENDS
Thus, the massive structural imbalance in the current services
budget baseline under conditions of full employment continues to
pose the most serious challenge to fiscal policy in recent times.
CURRENT SERVICES PROJECTIONS
(Dollar amounts in billions)
1983
Budget aggregates:
Budget outlays
Budget receipts
Total deficit
On-budget deficit
Share of GNP:
Outlays
Receipts
Total deficit
Absorption of savings:
Deficit as percent of net private savings
1984
1985
1986
1987
1988
823
598
897
649
981
713
1,065
781
1,157
849
1,242
927
225
249
231
267
284
308
209
253
271
292
315
300
25.8
18.7
25.7
18.6
25.8
18.7
25.7
18.8
25.7
18.8
25.4
18.9
7.1
7.1
7.0
6.9
6.8
6.4
135
124
112
103
100
94
Sources of the Structural Deficit
The large current services deficits projected for the outyears are
not attributable to any single source but, instead, represent the
effects of cumulative economic trends and fiscal policy decisions
stretching over a decade.
As was indicated in Part 2, the purely cyclical element of the
deficit peaks at $71 billion or 2% of GNP in 1983 and steadily
diminishes thereafter as the economy regains a full-employment
footing in the outyears.
The remaining deficit is "structural" and represents the longdeveloping policy imbalance that was embodied in the 1981 budget
inherited by the present Administration. The 1981 tax claim on
GNP was at a historic high of 21% and rising due to the built-in
escalation in the unindexed, progressive tax system. At that time,
it was widely believed that tax structure changes designed to cap
the long-term tax claim at 20% of GNP or less were essential to
restore sustained economic growth. At the same time, the overall
1981 spending claim was 23.6% of GNP, yet failed to reflect the 2-3
percentage point higher permanent claim on GNP that would be
needed to restore the Nation's badly neglected and underfunded
defense capabilities. Implicitly, then, existing and unfunded spending claims exceeded 25% of GNP.
As thus measured, the implicit structural deficit that emerged
from the misdirected trend of economic and fiscal policy over the
decade of the 1970's was between 5 and 6% of GNP. The initial
fiscal and economic policy plan of the Reagan Administration was
3-4
THE BUDGET FOR FISCAL YEAR 1984
designed to permanently correct this huge imbalance by means of
fundamental policy redirection in four basic areas:
• Restoration of an adequate national defense, which meant a
significantly increased spending claim on GNP.
• Correction of the automatic tax creep built into prior law and
reduction of tax burdens to the levels below 20% of GNP
that had been associated with the strong economic performance of the 1960's.
• Substantial retrenchment of the non-defense spending claim,
which had skyrocketed during the 1970's from 10 to 16% of
GNP and was therefore at the heart of the inherited disequilibrium.
• Promotion of immediate, strong and sustained expansion of
real GNP while steadily reducing inflation.
As is apparent from the outyear current services projections,
little progress has been made thus far in reducing the structural
deficit, although substantial success has been achieved in implementing the tax and defense components of the original plan and
in redirecting numerous nondefense programs. That a long-term,
structural deficit in excess of 6% of GNP persists as the paramount, continuing challenge to fiscal policy is attributable to two
fundamental developments over the past two years.
First, the process of economic adjustment to non-inflationary
growth has been far more prolonged, costly and disruptive to financial markets and business activity than originally projected. The
net result of this unanticipated two year economic adjustment has
been a substantially lower long-term GNP path and higher permanent budget outlay requirements for debt service than originally
planned.
Secondly, the policy adjustments to the inherited 1981 budget
implemented over the past two budget cycles have been somewhat
more successful in reducing the out-year (1985-1988) tax claim on
GNP than originally anticipated, and considerably less successful
in reducing the non-defense spending claim than initially planned.
In combination, these economic setbacks and divergent policy
outcomes have resulted in a perpetuation of the inherited budgetary imbalance—with the structural deficit remaining in excess of
6% of GNP by the end of the five-year budget period. The following
sections examine the 1970's sources of the inherited budget imbalance in greater detail; describe the policy and economic assumptions on which the original March 1981 plan for closing the structural deficit was based; analyze the impact on these projections of
outcomes from the last two budget cycles and economic developments since 1981; and then summarize the comprehensive, new
BUDGET PROGRAM AND TRENDS
3-5
1984 budget proposals for steadily eliminating the persisting structural deficit over the next five years.
The Inherited Budgetary Imbalance
Vast expansion of the social contract, 1963-1981.—By standards
of western industrial democracies, the United States was relatively
late in developing a full-blown social insurance system of retirement income for the aged, disability protection for workers, and
medical care for the elderly and low income. As recently as 1966,
Great Britain devoted 1% times and West Germany 2% times the
share of GNP for these purposes as did the United States.
Over the last two decades, however, the social insurance system
of the early 1960's has been expanded into a vast social contract
upon which 54 million Americans depend for basic retirement and
disability income and health care services. In 1981 these commitments absorbed almost 7% of GNP—2.5 times their 1963 claim on
national income.
This vast expansion was not planned, nor was it grounded in an
over-arching policy blueprint. Instead, it is the product of incremental entitlement extensions enacted over two decades with bipartisan support. Today the social contract:
• provides income and medical care protection for 54 million
elderly and lower-income citizens compared to 19 million in
1963;
• provides average Federal benefits per couple of $10,000
per year compared to $6,500 in 1963 (constant dollars); and
• finances average annual health care expenditures ranging
between $1,700 and $2,200 per beneficiary under medicaid and
medicare, respectively.
The historic record makes clear that the current financial
burden of financing this extensive social contract was not originally anticipated. Medicare initially cost about 0.6% of GNP, but by
1982 this had increased to 1.7% of GNP. Similarly, the 20% increase in social security benefits enacted in 1972 was premised on
unrealistic assumptions. Furthermore, due to errors in the initial
system for indexing wages and benefits instituted in 1975, social
security replacement rates have climbed temporarily to almost
55% compared to the 33% norm on which the system had been
premised.
As shown on the next page, the incremental expansion of the
social contract over 1963-1981 resulted in a nearly five-fold increase in constant-dollar costs. Relative to the national economy, its
claim on GNP ballooned from 2.7% in 1963 to 6.8% by 1981.
3-6
THE BUDGET FOR FISCAL YEAR 1984
GROWTH IN SOCIAL CONTRACT SPENDING
1963-1981
CONSTANT (1983 $) OUTLAYS
$ BILLIONS
250 f
—
A
200 -
TOTALv
150 -
>/X//^MEDICAIDZ//Zj
100 -
50
Mril
wmm
0
1963
1970
1981
EXPANSION OF SOCIAL CONTRACT
CLAIM ON GNP
PERCENT
7 .
INCREASED GNP CLAIM SINCE 1970
6
-
D
INCREASED GNP CLAIM SINCE 1963
•
1963 CLAIM ON GNP
5
1970 CLAIM ON GNPv
JMf////////,
4
3
^fff//////
—-
I
WHtJfaMtiHtyi'XIt
>lfJ"»Mllllllllillllnllllffllll«llMMIUIin njDJlimiuuiMm
1970
ll,.n yi,iiiiiiiiiMiy
//////////
i, n
m • 9.
1981
3-7
BUDGET PROGRAM AND TRENDS
Since the essential principles of social insurance require financing largely through contributory taxes, it is not surprising that
payroll taxes climbed steadily in response to the vast social contract expansion of 1963-1981. Indeed, as shown below, the growth
of payroll taxes to finance the social contract between 1963 and
1981 accounted for the entire increase in the Federal tax burden
over the past two decades.
GROWTH OF PAYROLL TAXES TO FINANCE THE SOCIAL CONTRACT
(Dollar amounts in billions)
1963
Source
Payroll taxes to finance social contract
ncome, corporate, excise, and all other
Total receipts
Constant
1983
dollars
1981
Percent
of GNP
Constant
1983
dollars
Difference
Percent
of GNP
Constant
1983
dollars
Percent
of GNP
$43
279
2.5
16.0
$180
493
5.6
15.3
+ 137
+ 214
+3.1
-0.7
322
18.4
673
20.9
+ 351
+ 2.5
For all practical purposes, the rapid growth of nondefense, particularly social contract programs, over the past two decades was
the overwhelming motor force of the pre-1981 fiscal expansion.
Despite the decline in defense spending, the aggregate tax and
spending burdens relative to GNP stood at historic highs in the
inherited 1981 budget.
Parallel expansion of other entitlement programs during the
1970's.—Had rapid expansion of domestic spending been limited to
social contract programs, the longer range fiscal implications might
have been less serious. However, both means-tested entitlement
programs and Federal retirement and disability programs experienced equally rapid growth during the decade. As shown in the
accompanying chart, real spending more than doubled between
1970 and 1981—with the GNP claim of other entitlements rising to
3.3% in 1981.
AGGREGATE TAX AND SPENDING CLAIM ON GNP EXCLUDING SOCIAL CONTRACT
(Percent of GNP)
Tax receipts excluding dedicated payroll tax..
Outlays excluding social contract spending....
1963
1981
Difference
16.0%
16.6
15.3%
16.9
-0.7%
+0.3
q o
o—o
THE BUDGET FOR FISCAL YEAR 1984
GROWTH IN OTHER ENTITLEMENT PROGRAMS
1970-1981
CONSTANT (1983 $) OUTLAYS
GROWTH IN OTHER ENTITLEMENT PROGRAMS
1970-1981
(SHARE OF GNP)
PERCENT
^
^
^
^
y W/.
I
ACTUAL OUTLAYS
3
////
2
INCREASE IN CLAIM
m/////
//////i
§§
1970 CLAIM ON GNP
1
i
1970
l
i
i
t
i
l
l
i
1981
3-9
BUDGET PROGRAM AND TRENDS
Thus, by 1981 the combined cost of the social contract and other
entitlement programs had risen to about 10% of GNP—about twothirds more than in 1971. This development posed serious longrange fiscal challenges that are only just now becoming apparent.
By definition, entitlement programs develop vast networks of dependency that cannot be precipitously altered without unacceptable social and human costs. As a consequence, their claim on the
budget and national economy tends to become relatively permanent and can be reduced only slowly over long periods of time. This
meant that to appreciably affect the budget outlook after 1985,
policy changes in the social contract and other entitlement programs needed to be implemented during the initial budget cycle
after 1981. It also meant that significant pre-1985 shifts in internal
budget priorities or reductions in overall spending claims on GNP
would have had to occur largely in the remainder of the budget
consisting of net interest, discretionary programs, and national
defense.
The 1981 budget remainder: Inversion of internal priorities and
limited opportunity for overall reduction.—The remainder of the
inherited 1981 budget was a fraction smaller relative to GNP than
it had been in 1970. But as shown below, its internal composition
had shifted markedly. Between 1970 and 1981, real defense and
security spending declined by 19%, with its claim on GNP dropping
from 8.3% to 5.5%.
DECLINE IN DEFENSE SHARE OF BUDGET, 1970-1981
(In constant fiscal year 1983 dollars)
Budget component
Annual
average
rate of
change
(percent)
1970
1981
Social contract and other entitlements l
Defense and security l
All other outlays
136.7
223.8
148.7
321.9
181.2
259.7
7.9
-1.9
5.1
Total budget outlays
Defense and security share of budget (percent)
509.1
40.9
762.8
23.2
3.7
1
2
Military retired pay is included in all social contract and other entitlements.
Not applicable.
To be sure, defense spending should be based on assessment of
threats and the force structure and military capabilities required
to support national security objectives rather than an arbitrary
"share of GNP/' Nevertheless, by the late 1970's it was clear that
overall national defense capabilities had eroded badly over a
decade of unprecedented Soviet military expansion, and that the
1981 defense and security claim on GNP of 5.5% was wholly unsustainable if national security objectives were to be met.
3-10
THE BUDGET FOR FISCAL YEAR 1984
DECLINE IN DEFENSE AND SECURITY CLAIM
ON GNP, 1970-1981
,1970 DEFENSE CLAIM ON GNP
ACTUAL
DEFENSE
CLAIM
The requirement for a substantial increase in defense spending
and for a significant recoupment of its pre-1970 claim on GNP left
the 1981 budget in an excruciating bind: either the 14% share of
GNP claimed by the budget remainder would have to rise to 1516% as defense investment and strength was restored, or enormous
proportionate reductions would be required in net interest and
discretionary spending.
The former course was not a practicable alternative. Given the
relative downward inflexibility of the social contract and other
entitlement spending in the near term, raising defense without
offsets elsewhere in the budget remainder would have meant an
increase in the aggregate outlay claim on GNP. By 1981, however,
total spending was already at a historic high of 23.6% of GNP.
Alternatively, a complete defense offset within the budget remainder would have required nearly a 50% reduction in the nondefense discretionary claim, but would have still left total spending
above 23% of GNP. Indeed, as shown on the next page, a shift in the
1981 budget remainder equal to the 6% of GNP needed to both
restore national defense and reduce the total outlay claim to 20% of
GNP would have meant the abolition of the entire nondefense
discretionary Federal establishment.
3-11
BUDGET PROGRAM AND TRENDS
CHANGE IN THE BUDGET: 1970-1981
(Share of GNP)
Budget component
Social contract programs
Other entitlement programs l
Subtotal social contract and other entitlements
Remainder:
National defense and security l
Net interest
Nondefense discretionary
Allother
1970
1
Difference
4.0
2.0
6.8
3.3
2.8
1.3
6.0
10.1
4.1
8.3
1.5
4.1
0.3
5.5
2.4
5.5
0.1
-2.8
0.9
1.4
-07
13.5
-07
20.2
23.6
3.4
Subtotal, remainder
Total
1981
Military retired pay is included in other entitlements.
The profound disequilibrium in the inherited 1981 budget is displayed in full dimension in the accompanying chart.
The decline in defense spending had been almost fully absorbed
by rising debt service costs, reflecting the deficit finance policies of
the previous decade and a steady upward drift in discretionary
spending for domestic health, social service, education, and energy
programs. Since the base of social contract and entitlement spending had also ratcheted sharply upward during the previous decade,
the overall spending burden had increased from 20% to 23.6% of
GNP. Remedying the structural deficit in the inherited 1981
budget, therefore, involved an imposing task: significantly reducing
aggregate spending claims on GNP, while increasing defense within
a budget structure characterized by significant inflexibility in its
social contract and entitlement base. Resolution of this dilemma
remains the key to shrinking the structural deficit now projected for
the remainder of the 1980's.
3-12
THE BUDGET FOR FISCAL YEAR 1984
UNDERLYING FISCAL IMBALANCE
SOCIAL CONTRACT AND
OTHER ENTITLEMENTS
NATIONAL DEFENSE
AND SECURITY*
PERCENT
11 I
-
ACTUAL CLAIM
1970
•EXCLUDES RETIRED PAY
The tax drift solution built into the pre-1981 fiscal policy—With
built-in spending in excess of 25% of GNP—including the rapidly
accumulating catch-up requirements for national defense—preReagan administration fiscal policy offered no apparent solution
except steadily rising tax claims on the output of the private economy.
Yet this policy was not sustainable for two major reasons. First,
it is apparent that the American public would not have supported
explicit tax increases sufficient to fund both existing nondefense
budget commitments and a restoration of defense strength. Tax
increases of the magnitude required would have run exactly
counter to the anti-tax sentiment prevalent throughout the States
and localities.
BUDGET PROGRAM AND TRENDS
3-13
This left expansion of the revenue level through inflationary
bracket creep as one alternative, and the revival of rapid real GNP
growth as the other.
The policies of the previous administration largely envisioned the
former route. A continuation of high inflation rates after 1981 in
combination with an unindexed income tax system would have
rapidly brought revenues up to the 24-25% of GNP level needed to
finance the social contract and other nondefense spending, as well
as provide for a modest recovery in defense expenditures.
But this solution was equally non-sustainable. The 1980-1981
collapse of financial markets, the soaring rates of interest, and
world-wide financial disorder made it imperative that the inflationary boom be brought to a halt through monetary restraint.
In addition, tax burdens at 24-25% of GNP—one-third higher
than the average burden during the high growth years of the
1960s—would have been incompatible with the revival of investment and productivity needed to restore the minimal level of real
economic growth.
Thus, when the Reagan administration took office, fiscal policy
was at a dead end. Explicit domestic spending commitments and
implicit national defense requirements vastly exceeded the capacity
of the existing tax system to finance them. At the same time,
public resistance to direct tax increases and the national economy's
incapacity to absorb further doses of inflationary revenue generation left a growing unfunded budget gap that has not yet been
closed.
Redirection of Fiscal Policy Launched in 1981
The Reagan administration's initial economic and budget plan
was designed to break this impasse. It rested on four fundamental
premises.
First, the restoration of national defense capabilities could not be
delayed because the decade-long deterioration in pay and readiness
and the lag in both strategic and conventional modernization had
reached an intolerable state. As shown on the accompanying chart,
the administration subsequently launched an 8-year, $1 trillion
military buildup that has absorbed a rapidly expanding claim on
GNP. By 1988, the projected GNP share of 7.8% for national defense and related international security and economic aid will
again approach the early 1970's level.
380-000
0 - 8 3 - 5
:
QL
3
3-14
THE BUDGET FOR FISCAL YEAR 1984
RESTORATION OF NATIONAL DEFENSE AND
SECURITY: INCREASED CLAIM ON GNP
ADDITIONAL CLAIM ON GNP ON
DEFENSE/SECURITY BUILD-UP RELATIVE TO FY 1981
INCREASED CLAIM ON GNP DUE TO RESTORING
NATIONAL DEFENSE AND SECURITY
INADEQUATE 1981 DEFENSE AND SECURITY SPENDING BASE
The second premise was that only an immediate, rapid, and
sustained expansion of GNP could overcome the inherited fiscal
dilemma. Under these conditions, the economy would grow more
rapidly than the budget, causing the aggregate spending claim to
fall.
The success of this solution depended upon a strong stimulus to
GNP expansion: the across-the-board income tax rate reductions and
business depreciation reforms proposed in 1981.
The intended effects are shown in the table on the next page.
Nominal GNP growth was projected to average 11% per year—
even as inflation steadily declined. As a consequence, the proposed
lower tax rates still produced annual revenue growth averaging
9J£%, while the tax claim on GNP by 1986 fell 4J£ percentage
points from where it was projected to be under prior law.
The third premise was that the nondefense spending claim on
GNP would fall dramatically in the near term in response to the
sweeping spending cutback and budget reform proposals contained
in the March 1981 budget revisions. In combination, the explicitly
3-15
BUDGET PROGRAM AND TRENDS
TAX CLAIM ON GNP
(Dollar amounts in billions)
1981
actual
Nominal GNP level
Federal receipts with proposed tax program
Tax claim on GNP (percent):
Prior law
Proposed law
Difference
1
2
1936 *
2,872
599
4,812
940
20.9
20.9
24.1
19.5
4.6
Average
annual
rate of
change
(percent)
10.9
9.4
(2)
March 1981 Budget Revisions.
Not applicable.
proposed spending control measures and the $40 billion per year
allowance for annual "future savings" would have reduced aggregate nondefense spending by about $500 billion over 1982-1986.
As shown in the chart below, cutbacks of this magnitude, along
with an assumed 6-year nominal GNP average growth rate of 11%,
would have resulted in more than a one-third reduction in the
nondefense claim on GNP.
The fourth premise was that the transition from rising to falling
inflation and from low real growth to rapid output expansion
ORIGINALLY PLANNED DECREMENT IN
NON-DEFENSE SPENDING CLAIM ON GNP
1981 NON DEFENSE SPENDING CLAIM
PLANNED REDUCTION IN NON DEFENSE
SPENDING CLAIM
NON-DEFENSE SPENDING
PROJECTIONS IN MARCH 1981
BUDGET REVISION
PLANNED REDUCTION IN NON DEFENSE CLAIM
3-16
THE BUDGET FOR FISCAL YEAR 1984
would occur immediately and simultaneously, and without intervening financial and economic disturbances. Consequently, the projected outlay claim on GNP attributable to cyclically sensitive expenditures—net interest and unemployment insurance—were projected to fall significantly from their 1981 levels. This eased somewhat the burden of programmatic retrenchment implied in the
target for reduced overall nondefense spending claims.
NET INTEREST AND UNEMPLOYMENT CLAIM ON GNP
(Share of GNP)
Budget component
Net interest.
Unemployment compensation
Total
1
1986
planned'
1981 actual
Difference
2.4%
0.7
1.3%
0.3
-1.1%
-0.4
3.1
1.6
-1.5
March 1981 budget revisions.
The table below summarizes the originally planned solution to
the inherited fiscal disequilibrium. GNP was projected to grow at
an annual rate of 10.9% over 1981-1986 compared to planned annual
nondefense spending growth of 2.3%. This planned differential sufficiently enlarged the overall budget envelope relative to GNP to
permit the defense outlay claim to rise to 6.9% by 1986, while at
the same time permitting the aggregate outlay claim to fall to
19.1%. After 1984, this brought actual revenue and outlays into
balance—with long-run tax and spending claims stabilizing somewhat above 19% of GNP.
MARCH 1981 BUDGET PROJECTIONS
(Dollar amounts in billions)
1981
actual
1986
projected
Average
annual rate
of change
(percent)
$2,872
$4,812
10.9%
Proposed nondefense spending level *
Proposed defense and security spending level \.
521
157
585
333
2.3
16.1
Proposed total spending level
678
919
6.3
18.1
5.5
23.6
20.9
-2.7
12.2
6.9
19.1
19.5
0.4
Nominal GNP..
Claims on GNP (percent):
Nondefense
Defense and security
Total outlays
Receipts
Deficit or surplus
1
2
Military retired pay is included in nondefense.
Not applicable.
3-17
BUDGET PROGRAM AND TRENDS
Results after two budget rounds.—After two completed cycles of
fiscal policy change and an equal period of calendar-year economic
outcomes, the Current services budget projections vary substantially from the path envisioned in the original economic and budget
plan.
This section explains the major sources of these deviations. These
include both policy shortfalls and deviations from the originally
projected economic path. For analytical purposes, most of the variance between the planned path and the current outlook can be
explained by seven significant variables.
1984 CURRENT SERVICES OUTLOOK COMPARED TO MARCH 1981 PROJECTIONS
(Shares of GNP)
Budget component
Outlays.March 1981
January 1983 current services
1983
.
.
. .
1984
1986
1985
20.6
25.8
19.5
25.7
19.4
25.8
19.1
25.7
Difference
Receipts:
March 1981
January 1983 current services
+ 5.2
+ 6.2
+ 6.4
+ 6.6
19.3
18.6
19.3
18.7
19.5
18.8
Difference
Deficit:
March 1981
January 1983 current services
-1.0
-0.7
-0.6
-0.7
-0.9
-7.1
-0.2
-7JJ
*
-7.0
+ 0.4
6.9
+ 6.2
+ 6.9
+ 7.0
+ 7.3
Difference
19.7
18_7j
*0.05% or less.
Drastic shortfall of nominal GNP.—The accumulated weaknesses
and imbalances in the U.S. economy proved to be far greater than
understood by those inside or outside of Government in 1980. The
process of correcting the damage and unwinding the 1970's inflationary spiral, therefore, has proved to be far more prolonged and
disruptive than anticipated. Consequently, the March 1981 economic projections did not assume a deep or prolonged recession in
response to moderate monetary restraint. Real GNP, in constant
1972 dollars, was projected to be $17k billion higher by 1983:4 than
it had been in 1981:1. By contrast, current economic assumptions
project that real GNP will not regain its actual 1981:1 level until
1983:4—meaning that output will be 10% lower than its originally
projected path. In effect, the severe disinflationary correction that
has actually occurred has set the economy two years behind its
originally anticipated recovery path.
3-18
THE BUDGET FOR FISCAL YEAR 1984
Similarly, prices were projected in March 1981 to be 23% higher
by 1983:4 than they had been in 1981:1, but are currently projected
to rise by only 17% by 1983:4.
Thus, the severe unanticipated recession of 1981-1982 and the
projected modest recovery for 1983, in combination with the much
more rapid actual fall in the inflation rate, have resulted in a
dramatically lower nominal GNP path than projected in the original budget plan. Nominal GNP is now estimated to be 14.3% or
$551 billion lower in 1983:4 than first assumed.
For 1984 and beyond, current assumptions of 4% real GNP
growth and GNP deflator growth around 4.5-5.0% remain nearly
identical to the original forecast. But as shown in the table below,
the nearly half-trillion dollar downward shift in the level of nominal GNP experienced over 1981-1983 results in a much lower longterm GNP path.
The capacity of the economy to support the originally planned
spending levels—either out of current taxation or borrowing—has
accordingly been reduced by an average of 13% from what was
originally assumed. Morever, current services outlay projections
are now about 14.5% higher than originally planned, as also shown
below. In combination, a significantly lower GNP base and substantially higher spending level mean a far greater relative spending
burden on the economy than originally planned.
Dramatic reduction in receipts due to lower GNP and deeper
policy reductions.—The current law receipt path is now estimated to
be $529 billion lower over 1983-1986 than projected in March 1981.
CHANGES IN GNP AND SPENDING OUTLOOK
(Dollar amounts in billions)
Indicator
Nominal GNP (fiscal years):
March 1981 forecast
January 1983 GNP forecast
Difference
Budget outlays:
March 1981 budget
January 1983 current services
Difference
Percent change from March 1981 outlook:
Nominal GNP
Budget outlays
Outlay Share of GNP (percent):
1981 outlays versus 1981 GNP forecast
1981 outlays versus current GNP forecast
January 1983 current services outlays versus current GNP forecast
1983
1984
1985
1986
$3,598
3,194
-404
$4,000
3,489
-512
$4,398
3,807
-591
$4,812
4,145
-668
743
823
+ 80
780
897
+ 118
851
981
+ 130
919
1,065
+ 147
-11.2
+ 10.8
-12.8
+ 15.1
-13.5
+ 15.3
-13.9
+ 16.0
20.6
23.3
19.5
22.3
19.4
22.4
19.1
22.2
25.8
25.7
25.8
25.7
3-19
BUDGET PROGRAM AND TRENDS
CHANGES IN RECEIPTS PROJECTIONS
(Dollar amounts in billions)
Estimate
1983
1984
1985
$709
598
$771
649
$850
713
-112
-122
-137
-159
-15.7%
-15.8%
-16.1%
-16.9%
1
March 1981
Current law
Difference
. .
Percent change
1986
j
$940
781
In the main, this reflects the shrunken revenue yield from the far
lower path of nominal income previously described.
However, the above figures fail to reflect the significant tax
policy differences between what was proposed in March 1981, and
what was actually enacted in two installments over 1981-1982, and
which consequently forms the basis for current law receipt estimates.
The 1981 Economic Recovery Tax Act (ERTA) reduced marginal
income tax rates for individuals by 25% over 3 years, rather than
30% as originally proposed. However, as a result of 5% less inflation than originally assumed over the same 1981-1984 period, the
real individual rate reduction was roughly the same.
However, ERTA included a wide variety of unrequested additional measures including indexing, major reductions in estate taxes
and the marriage penalty, new incentives for individual saving
and charitable contributions, and liberalization of certain oil tax
provisions. Most of these add-on measures were scheduled to
become effective in subsequent years and do not fully phase in
until 1986 and after. Consequently, the enacted 1981 tax bill reduced the revenue claim on GNP in 1986-88 by substantially more
than was originally proposed.
PROPOSED AND ENACTED TAX CUTS
(Share ot GNP)
Policy
March 1981 tax reduction plan.
Economic Recovery Tax Act
Difference.
1984
1985
1986
1987
1988
19.3
17.4
19.3
17.5
19.5
17.5
19.7
17.3
19.9
17.5
-1.9
-1.8
-2.0
-2.4
-2.4
When the effects of lower inflation rates than originally assumed
are also considered—i.e., less preindexing-period bracket creep and
lower effective windfall profit tax rates—the post-ERTA revenue
claim on GNP dropped further. Compared to nearly a 20% revenue
3-20
THE BUDGET FOR FISCAL YEAR 1984
REVERSAL OF THE RISING TAX CLAIM
ON THE GNP
(SHARE OF GNP)
PERCENT
24
TAX LAW PRIOR TO
REAGAN ADMINISTRATION^
CHANGE IN TAX CLAIM ON GNP
FROM PRIOR TAX LAW
1984
ERTA
-3.7
TEFRA AND GAS TAX .. +1.2
-2.5
NET CHANGE
1985
-4.2
+ 1.2
-3.0
1986 1987 1988
-4.9 -5.5 -5.7
+ 1.3 + 1.5 + 1.4
-3.6 - 4 0 -4.3
TAX CLAIM AFTER 1981 ERTA
claim by 1988 under the original (unindexed) tax reduction proposal, the 1988 revenue claim after enactment of ERTA stood at 17.5%
of GNP—about 2.4% lower than originally proposed and almost 6
percentage points lower than prior law.
IMPACT OF TAX POLICY CHANGE ON PRIOR LAW REVENUE BASE WITH FIXED GNP
(Dollar amount in billions)
1984
Pre-1981 tax law
Tax policy changes:
ERTA
TEFRA
Highway Revenue Act
Net change
Current law receipts
1985
1986
Total
1984-88
1987
$737.1
$825.5
$927.2 $1,028.2 $1,137.4 $4,655.3
-130.3
38.3
3.8
-158.2
42.2
3.9
-202.3
52.1
3.9
-246.7
63.6
4.0
-88.2
648.8
-112.1
713.3
-146.3
780.9
-179.2
849.1
-210.7
926.7
-736.6
3,918.8
21.1
17.4
18.6
21.7
17.5
18.7
22.4
17.5
18.8
22.8
17.3
18.8
23.2
17.5
18.9
n.a.
n.a.
n.a.
- 2 8 2 . 2 -1,019.8
67.6
263.7
4.0
19.5
Share of GNP:
Pre-1981 law
After ERTA
Current law
3-21
BUDGET PROGRAM AND TRENDS
Overall, ERTA reduced revenues as projected under current economic assumptions by more than one trillion dollars over 19841988.
The subsequent enactment of TEFRA and the gas tax and other
user fees in 1982 partially corrected for this overage. However, as
shown in the chart above, current law tax receipts in the outyears
still fall below the share of GNP that would have occurred had the
original administration tax bill been adopted unchanged.
Cyclically sensitive outlays: Upward adjustment in GNP claim.—
The original fiscal plan assumed a smooth shift between a stagnant, high-inflation economy and a non-inflationary high-growth
economy. Consequently, the whole sequence of developments that
has accompanied the actual 1981-1983 disinflationary correction
and adjustment was not reflected in the original budget projections.
These interactive factors include the initial period of financial
disturbance in which fiscal year 1982 Treasury 91-day bill rates
averaged 11.8% compared to 9.3% originally assumed; the sharp
1982 decline in economic activity that has resulted in an estimated
unemployment rate in excess of 10% in 1983:4 compared to 6.5%
assumed in the March 1981 projections; and the recession-induced
downward shift in the current base and future path of nominal
GNP, which has reduced revenues and increased debt service costs
by very large magnitudes.
The table below shows that budget outlays for unemployment
insurance and debt service have increased by nearly $234 billion
over 1983-1986 largely due to the turbulent economic adjustment
that has actually occurred compared with outlay projections under
the smooth transition originally assumed.
While the interest rate and unemployment rate effects gradually
work out of the budget in the outyears, the high increase in nationNET INTEREST AND UNEMPLOYMENT OUTLAYS
(In billions of dollars)
Budget item
Outlays:
March 1981 plan
January 1983 current services
Difference
Share of GNP (percent):
March 1981 outlays and GNP .
January 1983 current services outlays and GNP
Difference
1983
1984
1985
1986
Total
85.7
124.0
84.5
134.0
81.2
146.1
78.7
159.9
330.1
564.0
+ 38.3
+49.5
+ 64.9
+ 81.2
+ 233.9
2.4
3.9
2.1
3.8
1.8
3.8
1.6
3.9
+ 1.5
+ 1.7
+ 2.0
+2.3
3-22
THE BUDGET FOR FISCAL YEAR 1984
OUTLOOK FOR DEBT SERVICE SPENDING
AFTER TWO BUDGET ROUNDS
(CURRENT SERVICES SHARE OF GNP)
PERCENT
36
CURRENT SERVICES CLAIM ON GNR
^INCREASE IN NET INTEREST C U \ I M / / / V
W,
, ••
N
190t CLAIM ON GNP
. ' • '
.
.
•
•
•
.
-
•
• .
•
.
• • .
..
INCREASE IN GNP CLAIM FROM 1981
1984
+ 0.6
1985
+ 0.8
I
1986
+0.9
I
1987
+1.0
1988
+ 1.0
1
1
\
\
al debt accumulated in the intervening years generates a permanent debt service claim on the budget and GNP. As shown in the
chart above, the 1984-1988 current services debt service claim substantially exceeds its 1981 share, thereby adding to, rather than
reducing, the inherited budget disequilibrium.
The social contract claim on GNP has continued to rise.—The
relative near-term inflexibility of the social contract spending
claim on GNP is demonstrated in the chart below. Despite some
modest policy savings achieved in medicare and medicaid over the
past two budget cycles and the phaseout of social security student
benefits and other modest social security changes enacted in 1981,
under current law the social contract claim on GNP will rise
almost one percentage point by 1988 compared to 1981.
In the May 1981 social security package and the February 1982
budget proposals, the administration did propose reforms that
would have reduced social contract outlays by $40 billion in 1987 or
nearly 1% of GNP—thereby maintaining the 1981 claim at approximately a constant level. However, the social security package
3-23
BUDGET PROGRAM AND TRENDS
was not acted upon by the Congress and the medicare/medicaid
reforms adopted in the 1982 reconciliation bill amounted to only
about one-third of the proposed 1987 savings.
During the first two budget rounds, then, the following policy
constraints emerged:
• Benefit reductions for existing cash beneficiaries were universally concluded to be inappropriate and unfair. These "checks
in the mail" to existing beneficiaries amount to $1.2 trillion—
or 73% of the current services social contract spending baseline over 1984-1988.
• Moderate restraints on health care providers have been imposed (about $30 billion over 1984-1988) but measures to directly increase beneficiary medical costs enacted for 19841988 amount to only $7 billion or just over 1% of baseline
costs for medicare/medicaid.
• Congress has insisted that major changes affecting new cash
beneficiaries should contain ample notice, thereby foreclosing
OUTLOOK FOR OTHER ENTITLEMENT
SPENDING AFTER TWO BUDGET ROUNDS
(SPENDING AS A SHARE OF GNP)
PERCENT
^-1981 CLAIM ON G N P
/^//DECREASED CLAIM ON GNP/
y
Y/yy
FROM 1981 SHARE
.
3
CURRENT LAW CLAIM
ON GNP
2 -
1
CHANGE IN GNP CLAIM FROM 1981
1984
1985
1986
1987
1988
0.2
-0.3
0.4
0.5
0.6
0
1981
!
)
1982
1983
I
1984
1985
I
I
1986
1987
1988
3-24
THE BUDGET FOR FISCAL YEAR 1984
almost entirely any opportunity for significant budget savings
during the 5-year budget period. While some minor changes
affecting new beneficiaries have been enacted, they have produced very limited savings (e.g. prospective elimination of the
social security minimum benefit will save $1 billion over
1984-1988).
• Thus far, COLA restraints have not been imposed. The full
1981 and 1982 COLA increases add about $25 billion a year or
8V2% to the 1984-1988 spending baseline. Under the bipartisan
agreement on social security, a 6-month COLA freeze will be
imposed in 1983 but with inflation in the 5% range, prospective savings will be less than half of what would have been
achieved with an equal delay in 1981 when the inflation
adjustment was 11.4%.
Given these policy constraints, the social contract base of the
budget, which rose dramatically during 1962-1981, has proven to be
not only "locked in" but a rising claim on GNP. Moreover, given
the requirement for ample notice, the failure to achieve any significant reforms of the cost-of-living adjustment mechanism or other
aspects of the benefit structure in 1981-82 means that the social
contract has become an even larger constraint in the overall
budget envelope over 1984-88 than it was in 1981.
Major drop in nondefense discretionary spending claim.—The
most significant changes in budget policy since 1981 have occurred
in the discretionary spending sector. Estimated 1983 outlays of
$144 billion will be 9% lower than the $158 billion spent in 1981—
largely reflecting the major reductions in nominal spending levels
for energy, employment and training, education, and social service
programs enacted in 1982. While the Congress resisted a second
round of discretionary spending cuts proposed for 1983, the alternate "freeze" policy adopted in the 1983 Budget Resolution has
resulted in nominal spending levels drifting upward only slightly.
This permanent reduction in the inherited spending base results
in a dramatic reduction in the nondefense discretionary spending
claim on GNP over 1984-1988. As shown in the table below, current services baseline outlays would have been $381 billion higher
over the next 5 years had this substantial retrenchment not occurred.
As shown in the chart below, the current services spending claim
for discretionary programs is over 2 percentage points smaller by
1988 than it was in 1981. However, given minimal funding requirements for long-standing Federal functions from tax collection to
law enforcement, highways and veterans health care, as well as
3-25
BUDGET PROGRAM AND TRENDS
NONDEFENSE DISCRETIONARY PROGRAMS: 1984 CURRENT SERVICES VERSUS OUTLAYS AT 1981
SHARE OF GNP
(In billions of dollars)
1984
Nondefense discretionary spending at constant
1981 share of GNP
Current services baseline
r
192
147
-45
Difference
228
210
149^ i 151
248
158
-78
-90
-61
Total
1988
1987
1986
1985
1,148
767
269
163
-107
-381
practical "legislative minimums" for a variety of other domestic
programs, it is doubtful as to whether the discretionary spending
claim on GNP can be lowered much beyond its present substantially reduced level.
OUTLOOK FOR DISCRETIONARY SPENDING
AFTER TWO BUDGET ROUNDS
(CURRENT SERVICES SHARE OF GNP)
PERCENT
56 ,
,
X ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ; ; : ^ ^ ^ ^ % / D E C R E A S E D CLAIM ON
GNP^/VA/A
4.6
^
3.6
^
^
^
^
^
CURRENT SERVICES CLAIM ON GNP^
^
^
^
^
^
^*<£S/f' / , /
^
^-/u^^y^
2.6 -
1.6
REDUCTION IN GNP CLAIM FROM 1981
1984
1985
1986
1987 1988
-1.3
-1.6
-1.9
-2.0
0
1981
I I
1982
1983
-2.2
I
1984
j
1985
I
1986
I
1987
1988
The claim of other entitlement spending has fallen.—Entitlements
outside the social insurance system consist of two distinct groups:
the means-tested programs including AFDC, SSI, food stamps, child
nutrition and veterans pensions; and the Federal retirement/disability programs including civil service and military pensions and
veterans disability compensation.
3-26
THE BUDGET FOR FISCAL YEAR 1984
The rapid rise in the real cost of these programs experienced
during the 1970's has come to a halt. After having more than
doubled in real terms from 1970-1981, constant dollar costs under
current law are expected to remain virtually unchanged between
1981-1988.
The major source of this slowdown is in the means-tested program component. As shown in the table below, constant dollar
outlays will fall at a 2.5% per year rate over 1981-1988 compared
to an increase of 7.4% per year during the 1970's.
This marked reversal of trend reflects in part the slowdown in
caseload growth for all programs, and an actual decline in the case
of veterans pensions. But the primary cause is that the continuous
legislative liberalization and entitlement expansions that characterized policy in the 1970's have been supplanted by the policy
reforms and retrenchments initiated by the Reagan administration
over the past two budget cycles. As a consequence, about 16% of
the real program growth over 1970-1981 will have been eliminated
under current law by 1988.
While limited reforms (i.e., shift to once-per-year indexing and
COLA caps for annuitants under 62) have been enacted for the
OUTLOOK FOR SOCIAL CONTRACT
SPENDING AFTER TWO BUDGET ROUNDS
(CURRENT LAW SHARE OF GNP)
PERCENT
C U R R E N T SERVICES
'INCREASE IN SOCIAL coKifRAcf
clkm'/////////
ON GNP FROM 1981 SHARE
V / A V / / A
1981 CLAIM ON GNP
6.0
4.0
INCREASES IN GNP C L A I M FROM 1981
2.0
1984
1985
1986
+ 0.8
+ 0.8
+ 0.8
g
1981
1982
I
1983
1987
+ 0.9
•
••
\
1984
1988
+0.9
:
;
'
•••
I
1985
t
1986
I
1987
1988
3-27
BUDGET PROGRAM AND TRENDS
CHANGE IN MEANS-TESTED ENTITLEMENT COSTS UNDER CURRENT LAW
(In billions of constant 1983 dollars)
1970
Annual real growth
(percent)
1981
1970-81
Food stamps and child nutrition..
AFDCandSS!
Veterans pensions
Total.
2.1
9.8
5.3 ^
17.2
16.4
17.6
38.2 j
13.8
14.7
_3.5J
32.0
! 1981-88
20.2
5.3
-2.1
-2.5
-2.5
7.4
-2.5
-2J>
remainder of this entitlement category, real program costs for the
Federal pension programs continue to rise as the annuitant caseload increases. Nevertheless, as shown in the chart on the previous
page, the GNP claim of entitlements outside the social insurance
system will decline modestly under current law, dropping to 2.7%
in 1988 compared to 3.3% in 1981.
Given the fact, however, that the social contract claim on GNP
continues to rise under current law, the overall entitlement claim
will stand at 10.1% by 1988, slightly above its 1981 level. Thus,
after two budget rounds and the achievement of significant program revisions in some areas, the massive 1970's growth in the
overall entitlement base remains intact within the budget structure, meaning that the major contributor to the 1981 budget disequilibrium has not yet been contracted nor its claim on GNP
reduced.
The structural imbalance in the 1984 current services baseline.—
Due to both the economic and policy developments described in the
preceding sections, the structural disequilibrium that characterized
the inherited 1981 budget has not been remedied—and the current
services outlook for 1984-1988 extends and perpetuates it.
As was discussed earlier, part of the solution to the inherited
fiscal disequilibrium required an economic performance path that
would alleviate the fiscal policy bind structured into the 1981
budget.
The 2-year long disinflationary correction of the economy has
largely foreclosed this element of the solution. As shown below,
GNP is now expected to grow more slowly than the current service
budget over 1981-1988, with a consequent rise rather than fall in
the long-term spending burden on the economy.
Likewise, by 1988, the current services net interest burden—
reflecting the huge cyclical deficits of 1982-1984, as well as the still
unresolved structural deficit over the entire period—would be more
3-28
THE BUDGET FOR FISCAL YEAR 1984
OUTLOOK FOR GNP GROWTH AND BUDGET GROWTH, 1981-1988
(Dollar amounts in billions)
Indicator
March 1981 GNP path
Current outlook for GNP path
Current services outlook (outlays)
Annual
growth rate
(percent)
1981
actual
1988
$2,872
2,872
678
$5,680
4,894
1,242
10.2%
7.9
9.0
than a percentage point higher than its 1981 share. This contributes further to the structural imbalance.
On the policy side, a reduction in the nondefense claim on GNP
several times greater than the catch-up increase for defense was
needed if progress was to be made in reducing the combined
burden of taxation and Treasury borrowing on the national economy.
After two budget rounds, this requirement has not yet been
achieved although some progress has been made. As shown in the
table below, by 1988 the GNP claim by national defense and related international programs will have risen by 2.5 percentage points,
while all nondefense spending excluding net interest will have
declined by 1.6 percentage points.
On an overall basis, therefore, the current services outlay claim
has increased from its 1981 level. As is evident from the table, even
under assumed conditions of full employment in 1988, the aggregate outlay claim stands 1.9 percentage points higher than in 1981.
SUMMARY OF CHANGES IN BUDGET OUTLAY COMPONENTS RELATIVE TO GNP FROM 1981
(Current services share of GNP)
1981
actual
Budget component
National defense and security
Social contract
Other entitlements1
Net interest
Discretionary programs
All other outlays
l
1985
1986
1987
1988
5.5
68
3.3
2.4
5.5
0.1
1.7
08
-0.1
0.6
-1.3
0.4
2.1
08
-0.3
0.8
-1.6
0.4
2.4
08
-0.4
0.9
-1.9
0.3
2.5
09
-0.5
1.0
-2.0
0.2
2.5
09
-0.6
1.0
-2.2
0.3
2.1
2.2
2.1
2.1
1.9
23.6
25.7
25.8
25.7
25.7
25.4
Total change from 1981
Total outlay share
1
Change from 1981 hare
1984
Military retired pay is included in other entitlements.
When the 2 percentage point reduction relative to the 1981 receipt claim is factored in, the overall fiscal imbalance is heightened. As a consequence, the long-term current services structural
deficit remains as it was 3 years ago—after allowance for needed
defense spending restoration and a permanent tax claim under 20
percent of GNP. Its reduction and eventual elimination remains as
BUDGET PROGRAM AND TRENDS
3-29
the overriding challenge to economic and fiscal policy in the years
ahead.
The 1984 Budget Recommendations: A
Comprehensive Program To Close the Structural
Deficit
Given the underlying condition of the overall budget structure,
only the most sweeping set of fiscal policy initiatives could hope to
reverse the trend and set the budget on a path that is consistent
with long-term economic recovery. This section explains the policy
framework embodied in the President's detailed recommendations
and compares the long-term budget structure that would result
from them with the current services baseline previously described.
The 1984 budget plan contains four essential features:
• An immediate freeze on pay, cost-of-living adjustments, aggregate discretionary spending, and a variety of reimbursement
formulas and payments, which will reduce the deficit by
$19 billion in 1984 and $164 billion over the next 5 years. Along
with other measures these steps will result in no real growth in
aggregate spending for the first time since 1970.
• A broad program of structural reform of entitlements and
transfer payments focused on health care, social security solvency, Federal retirement programs, and means-tested benefits. In combination, these measures will reduce the deficit by
$19 billion in 1984 and $228 billion over the next 5 years.
• A standby revenue mechanism designed to trigger in if the
deficit remains above 2.5% of GNP in 1986 and after. This
"deficit insurance" measure is intended to reassure financial
markets that the structural deficit will be closed and that
Federal absorption of the private savings required for economic recovery will be steadily reduced. (See Part 4 for details.)
• Maintenance of the defense buildup while achieving savings
due to lower inflation, the 1984 pay freeze and various program economies totaling $55 billion over the next 5 years.
(The defense program is discussed in Part 5.)
380-000
0 -
83 - 6 : QL 3
3-30
THE BUDGET FOR FISCAL YEAR 1984
CURRENT SERVICES OUTLOOK FOR
BUDGET AGGREGATES RELATIVE TO
1981 CLAIM ON GNP
BUDGET OUTLAYS
PERCENT
26 i
(JUHHfclMI
S t K V K J C O
—
OUTLAY SHARE^<7
25
24
23
^
^
^
^
^
^
^
^
^
^ 1981 OUTLAY SHARE
22
21 20 19 18 17 I
16
I
1983
1981
I
1984
I
1985
BUDGET RECEIPTS
P E R C E N T
26
25
24
23
1981 RECEIPT SHARE
22
21
:
\
^^<&y///y//DECREASED
20
TAX RECEIPT CLAIIVi ON GNF*yyyyyy/yyyO/
19
CURRENT LAW '
SHARE
18
17
I
I
P E R C E N T
I
I
i
BUDGET DEFICIT
10 |
1982
1983
1987
1988
3-31
BUDGET PROGRAM AND TRENDS
As is shown in the table below, these difficult but bold and
essential steps, will put the deficit on a dramatically different path
over the next 5 years.
COMPARISON OF BUDGET RECOMMENDATIONS WITH CURRENT SERVICES BASELINE
(In billions of dollars)
Outlays:
Current services
Proposed savings
Proposed outlays
Receipts:
Current services
Proposed changes1...
Proposed receipts
Deficit:
Current services
Proposed reductions..
Total deficit
On-budget deficit
1
Includes contingency tax plan.
Fiscal and economic impact.—The President's budget recommendations will reduce the deficit by $46 billion in 1984 and by $582
billion over the next 5 years. This means that cumulative deficits
over 1984-1988 will be reduced by 41% compared to the current
services baseline.
As shown in the table below, these measures steadily reduce the
structural deficit in the outyears. Total outlays fall to 23.2% of
GNP by 1988 and the deficit claim on GNP drops from in excess of
7% in the 1984 current services baseline to 2.6% by 1988. More
COMPARISON OF BUDGET RECOMMENDATION WITH CURRENT SERVICES BASELINE
(Share of GNP)
1984
Outlays:
Current services
Budget recommendations
1985
1986
1987
1988
25.7
24.7
25.8
24.4
25.7
24.1
25.7
23.7
25.4
23.2
Difference
Receipts:
Current services
Budget recommendations
-1.0
-1.4
1.6
2.0
2.2
18.6
18.9
18.7
19.0
18.8
20.3
18.8
20.3
18.9
20.6
Difference
Deficit:
Current services
Budget recommendations
0.3
0.3
1.5
1.5
1.7
7.1
5.8
7.0
5.4
6.9
3.8
6.8
3.4
6.4
2.6
-1.3
-1.6
3.1
-3.4
3.8
124
101
112
85
103
57
100
49
94
38
Difference
Deficit share of net private savings:
Current services
Budget recommendations
3-32
THE BUDGET FOR FISCAL YEAR 1984
importantly, Federal borrowing relative to net private savings falls
steadily and dramatically, dropping to 38% by 1988.
Freeze on COLA's and pay.—In order to staunch the flow of red
ink, it is imperative that sacrifices be made across the board and
that all deferrable expenditures be temporarily postponed. Based
on the recommendation of the National Commission on Social Security Reform, the budget proposes that cost-of-living increases for
social security and for all related indexed programs be postponed
for 6 months and that the delayed payment date be made permanent.
Similarly, the budget recommendations propose that in its capacity as an employer, the Federal Government take the same step
that countless private businesses and workers have been forced to
take in order to forestall insolvency: deferral of raises for current
and retired workers until financial conditions improve. The budget,
therefore, proposes no increases for pay and retirement in 1984.
The table below summarizes the budget effects of these freeze
measures over the next 5 years.
IMPACT OF PAY AND COST-OF-LIVING FREEZE
(Outlays; in billions of dollars)
1984
Federal pay and retirement:
Civilian pay
Military pay 1
Retired pay
Subtotal
Indexed transfer payments:
Social security
SSI
Nutrition programs
Veterans programs
Other
Subtotal
Total
1
1985
1986
1987
Total
3.3
2.7
0.6
3.9
2.9
1.7
4.1
3.1
1.7
4.3
3.3
1.7
4.5
3.5
1.8
19.9
15.5
7.6
6.5
8.4
8.9
9.3
9.8
42.9
4.2
0.1
0.1
0.3
0.3
4.6
0.2
0.4
0.4
0.5
4.9
0.2
0.5
0.5
0.7
5.4
0.2
0.4
0.7
0.9
5.7
0.2
0.4
0.8
1.0
24.8
0.8
1.9
2.8
3.5
5.0
6.2
6.8
7.6
8.2
33.8
11.6
14.7
15.7
16.9
17.9
76.8
Includes Coast Guard military pay.
Social security solvency.—OASDI cash benefit payments comprise the core of the Nation's social contract with the elderly and
disabled. Over the past 5 years the system's reserve assets have
been steadily drained—first by the huge cost of attempting to keep
beneficiaries up with the cost of living during the peak of the
inflation spiral, and now by the abrupt slowdown in receipt growth
in response to the recessionary correction of past economic excesses. After the current borrowing from the hospital insurance
3-33
BUDGET PROGRAM AND TRENDS
fund is drawn down in June, the system will be without sufficient
assets to cover the next monthly benefit payment.
The budget recommendations embody the bipartisan solution
proposed by the National Commission on Social Security Reform
and endorsed by the Speaker of the House, the Senate Majority
Leader, and the President. These measures are balanced and fair
and will require sacrifices from all, but will impose undue penalties
on none. Most importantly, they will dramatically improve trust
fund balances immediately and gradually rebuild a safer level of
trust fund reserves as the rescue plan is fully implemented.
The following are the major features of the bipartisan solution:
• A 6-month freeze on cost-of-living adjustments.
• Rescheduling of current law OASDI payroll tax rates in 1984
and 1988-1989 in a manner designed to generate trust fund
reserve improvements equal to the savings from the COLA
freeze.
• Extension of coverage to new Federal employees, all uncovered non-profit employees, and a prohibition on withdrawal
by State and local governments.
• Inclusion of 50% of the social security benefit in taxable
income for single and joint return taxpayers with adjusted
gross income above $20,000 and $25,000, respectively.
• Increasing the self-employment tax rate (SECA) to the combined employer-employee OASDI rate—with full deductibility
for the "employer share."
• Lump-sum payment of Federal obligations for past military
service credits.
The bipartisan solution also includes an automatic stabilizer and
other reforms designed to improve the long-term status of the trust
funds. The unified budget effect of these measures is displayed in
the table below.
UNIFIED BUDGET IMPACT OF BIPARTISAN SOLUTION
(In billions of dollars)
Savings measure
COLA freeze
Equity adjustments
Coverage extension
Benefit inclusion in AGI
Payroll tax rescheduling (net)
SECA increase
Ban on State/local withdrawal
Total savings
1984
1985
1986
1987
1988
Total
4.2
-0.2
1.0
11
5.5
0.6
0.1
4.6
-0.2
1.8
40
-2.1
1.6
0.3
4.9
-0.2
2.3
47
5.4
-0.3
2.9
55
1.5
0.4
1.6
0.7
5.7
-0.3
3.7
6.4
9.4
1.9
0.9
24.8
-1.2
11.7
21.7
12.8
7.1
2.4
12.2
10.0
13.6
15.8
27.7
79.4
Health care reform initiative.—The explosive growth of health
care costs over the past two decades has been a principal underly-
3-34
THE BUDGET FOR FISCAL YEAR 1984
ing cause of the continuous rise in expenditures for the medicare
and medicaid components of the social contract. These relentless
cost pressures are endemic to the entire U.S. health care delivery
and financing system, and cannot be abated by program changes in
medicare and medicaid alone.
The central difficulty is that extensive third-party coverage on a
cost-plus basis isolates all participants in the market for medical
care from the cost consequences of their decisions. Individuals with
substantial insurance coverage feel no economic restraints on the
quantity and quality of services demanded. Physicians, faced with
the choice of ordering additional services that might help, cannot
hurt and cost the patient nothing, have little incentive to restrain
service use. Hospitals and other institutional providers, reimbursed
on a cost basis, are restrained only by their ability to maximize
utilization of their facilities. The result is a constant bias in favor
of service upgrading and cost expansion.
In his 1984 budget proposals, the President is recommending the
first set of comprehensive reforms addressing these problems put
forward since the enactment of medicare and medicaid. The major
elements are:
• A 1-year freeze on physician reimbursement increases and
reduction of otherwise applicable 1984 formula increases for
hospital reimbursements.
• Long-term reform of hospital reimbursement to eliminate
cost-plus payments.
• Reorientation of medicare cost-sharing to provide beneficiaries increased coverage for high-cost episodes of illness, while
providing increased cost sensitivity for lower-cost episodes.
• Reform of the tax treatment of health insurance coverage
provided by employers, so as to eliminate the present bias in
favor of inflationary benefit expansion.
• Reforms designed to enable States to further restrain medicaid costs.
The budgetary effects of these health reform measures are shown
below.
Reform of the Federal retirement system.—Federal retirement
programs are among the most generous in the world. While this fact
has been a major factor in recruitment and retention, the system
has grown overly generous during the past decade, presenting the
Federal Government with excessive retirement costs. The unfunded
liabilities of the Federal civilian pension system now exceed $495
billion.
The major source of this unfunded liability is a combination of
overly-generous retirement benefits (which raise the long-run cost
of the civilian system to approximately 35% of present payroll),
3-35
BUDGET PROGRAM AND TRENDS
BUDGET SAVINGS DUE TO THE HEALTH CARE REFORM MEASURES
(In billions of dollars
1984
1985
1986
1987
1988
Total
-0.7
+ 0.2
-1.2
-1.3
-1.3
1.5
-2.6
-1.7
-4.2
-6.3
-8.2
MEDICARE
Medicare hospitalization copayment
and catastrophic protection
Increased medicare Part B premium
Hospital reimbursement limit and physician freeze
Long-term reform of hospital payment
system
Reform of HHA and durable medical
equipment reimbursement
Other medicare savings
-0.2
-1.1
(-2.6)
-1.2
-1.4
-1.6
-6.0
(-4.0)
(-5.3)
(-6.9)
(-20.2)
*
-0.3
-0.4
-0.5
-0.1
-0.7
-0.1
-0.8
-0.2
-2.7
-03
-0.8
-0.7
-0.8
-0.9
-3.5
-2.3
-4.4
-6.0
8.0
10.7
31.4
-4.2
-8.1
-11.1
-15.0
-19.9
-58.4
-08
(-1.5)
*
MEDICAID
Incentives for beneficiary and State
control of medicaid costs
PRIVATE
Cap on private health insurance premiums
Total savings
*$50 million or less.
and inadequate employee contributions (which presently fund only
7% of payroll or less than 25% of total civilian system costs).
The 1984 budget recommendations propose a comprehensive program of long-run solvency reforms designed to bring the total cost
of the civilian system down to 22% of payroll. To balance this, the
budget also proposes a phased increase of employee contributions
to cover half the cost of this leaner—though fully adequate—civilian
retirement system.
The budget effects of Federal retirement reforms are shown in
the table below.
REFORM OF THE FEDERAL RETIREMENT SYSTEM
(In billions of dollars)
1984
Current services outlays
Proposed budget savings:
Annuity reformsl
Employee contributions
Postal Service and D.C. full payment.
Total savings
1985
1987
1988
Total
40.0
42.8
46.3
49.7
53.2
231.9
1.2
0.3
0.1
2.2
0.5
0.6
2.1
0.5
1.6
1.9
0.4
2.7
1.7
0.4
5.1
9.1
2.0
1.4
2.8
3.2
4.0
4.8
16.2
*50 million or less.
1
Including military retirement.
Means-tested entitlements.—As previously indicated, the administration has made substantial progress over the last 2 years in
restraining the cost of Federal low-income assistance programs by
focusing assistance on those most in need. At the same time, the
programs remain responsive to the needs of low-income Americans.
3-36
THE BUDGET FOR FISCAL YEAR 1984
The 1984 budget proposes further reforms to build upon this success.
The reforms are of three main types:
• promoting work effort as a means of encouraging self-sufficiency on the part of the recipient population;
• eliminating or reducing errors through program simplification; and
• increasing the responsibility of absent parents to support
their families, whenever possible.
As a result of these reforms, the 1984 budget provides the maximum practicable restraint on these programs consistent with maintaining an adequate safety net for those with genuine need.
The budget savings from these measures are displayed below.
MEANS-TESTED ENTITLEMENT SAVINGS
(In billions of dollars)
1984
Current services baseline
Proposed savings:
Food stamps
AFDC and child support
SSI
Child nutrition
Total savings
Savings as percent of baseline
1985
1986
1987
1988
Total
32.7
33.5
34.5
36.0
168.2
-0.8
-0.7
0.3
-0.3
-1.0
-1.0
0.3
-0.4
-1.1
-1.0
0.3
-0.5
-1.0
-1.0
0.2
-0.5
-1.0
-1.0
0.2
-0.6
-4.9
-4.8
1.3
-2.3
-1.4
4.6
-2.1
6.5
-2.3
6.9
-2.4
6.8
-2.4
6.7
-10.6
6.3
31.5
Aggregate freeze on discretionary programs and reduction of off-
budget outlays.—As was detailed earlier, spending for discretionary
programs has been curtailed markedly in the past 2 years. Consistent with the 1983 budget resolution assumption that budget authority levels will remain frozen for 3 years, the 1984 budget recommendations provide for essentially the same aggregate level of
new budget authority as was enacted for 1983:
(In billions of dollars)
Enacted 1983 budget authority for discretionary programs
1984 budget request for discretionary programs
$132
$134
Within this overall spending freeze, funds are allocated to discretionary programs based on relative priorities and pressing needs.
Funds for high-priority Federal activities—such as law enforcement
and public health activities—have been increased. Offsetting reductions have been made in lower-priority programs. Thus, while the
overall appropriations request for discretionary programs is being
3-37
BUDGET PROGRAM AND TRENDS
held near the 1983 level, savings will be achieved without jeopardizing essential Federal functions.
In addition, the budget proposes that various on- and off-budget
loan obligation ceilings, limitations on administrative expenses,
and other spending authorities be held to the minimum levels
consistent with essential program objectives. The outlay savings
from the proposed aggregate budget authority freeze and these
additional measures are displayed below.
OUTLAY SAVINGS FROM DISCRETIONARY PROGRAM FREEZE AND OFF-BUDGET SPENDING LIMITS
(In billions of dollars)
Budget component
Current services baseline.
Proposed savings:
On-budget programs
Off-budget programs
Total savings
1984
1985
1986
1987
1988
Total
146.9
148.8
150.8
158.2
162.6
767.4
6.2
3.4
10.0
4.2
12.8
4.4
16.5
6.8
20.8
5.7
66.3
24.5
9.6
14.2
17.3
23.3
26.4
90.8
Outlook for Closing the Structural Deficit With the
1984 Budget Plan
Both the short- and long-term measures contained in the President's comprehensive fiscal plan address those factors that have
contributed to the continued deterioration of the Federal budget's
structural imbalance.
As displayed below, each major budget component shows improvement over its current services baseline claim on GNP:
• As a result of the health care reforms and social security
solvency plan, social contract spending is reduced by about 0.3
percentage points by 1988.
• The claim for other entitlements is reduced by 0.2 percentage
points due to the array of structural reform measures reviewed above and detailed elsewhere in the budget.
• By virtue of the continued freeze on aggregate discretionary
spending and sharp curtailment of off-budget outlays, the
1988 GNP claim for this component falls an additional 0.5
percentage points—bringing the total reduction from 1981
levels to 2.7 percentage points.
• Primarily as a result of the freeze on farm price supports and
the PIK program, the residual domestic spending category
also declines by 0.2 percentage points by 1988.
• Due to the social security solvency measures, private insurance health cap, and the stand-by revenue measure, the receipt claim on GNP rises by 1.7 percentage points by 1988, but
still remains below its 1981 level of 20.9%.
3-38
THE BUDGET FOR FISCAL YEAR 1984
• As a consequence of all of the above improvements, net interest costs fall dramatically—by more than $76 billion over
1984-1988. The debt service claim accordingly drops to 2.7%
or nearly to its 1981 level.
The overall budget plan, then, balances three fundamental objectives that have previously not seemed easy to reconcile: m
• The overall structural imbalance in the budget is substantially reduced, with the 1988 deficit claim on GNP falling by twothirds compared to the current services baseline. This puts
fiscal policy on a path consistent with economic recovery and
long-run budgetary equilibrium.
• The internal shift in budget priorities toward adequate funding of national defense is maintained, with the overall nondefense spending claim falling by 2.9 percentage points compared to the 1981 level. Over half of the excessive growth in
the nondefense claim on GNP over 1970-1981 is eliminated by
1988—with the prospect of further declines beyond the budget
period as the economy continues to grow and permanent
spending reforms take hold.
• The receipt claims on GNP—even if the stand-by mechanism is
triggered—remain 2.6 percentage points lower than would
have been the case with pre-1981 tax law.
SUMMARY OF 1984 PROPOSED OUTLAYS
(In billions of dollars)
Budget component
National defense and security
Social contract
Other entitlements J
Net interest
Discretionary programs
All other outlays
Budget total
1
1984
1985
244.4
258.9
104.5
103.2
137.3
14.2
283.5
282.5
106.9
114.2
134.6
7.3
862.5
929.0
1987
1988
320.4
305.8
112.1
122.7
133.5
4.5
350.8
332.2
115.6
130.4
134.9
4.1
381.3
360.4
121.0
134.3
136.2
3.0
999.0
1,068.0
1,136.2
Military retired pay is included in other entitlements.
SUMMARY OF CHANGES RELATIVE TO 1981 BUDGET OUTLAYS CLAIMS
(Shares of GNP)
Actual
1981
National defense and security 1
Nondefense spending 1
Total outlays
1
Military retired pay is included in nondefense spending.
Change from 1981
1984
1985
1986
5.5
18.1
+ 1.7
-0.6
+ 2.1
+ 2.4
-1.4
-2.0
+ 2.5
-2.4
-2.9
+ 23.6
+ 1.1
+0.8
+ 0.5
+0.1
-0.4
1987
1988
+ 2.5
3-39
BUDGET PROGRAM AND TRENDS
IMPACT OF 1984 FISCAL PLAN ON BUDGET'S STRUCTURAL IMBALANCE
(Share of GNP)
Budget component
Social contract:
Current services
Policy change
1984 budget
Other entitlements:
Current services
Policy change
1984 budget
National defense and security:
Current services
Policy change
1987
1986
1988
7.7
7.6
-0.2
7.6
-0.2
7.6
-0.2
7.4
7.4
7.4
7.4
7.4
3.1
-0.1
3.0
-0.2
2.9
-0.2
2.8
-0.2
2.7
-0.2
3.0
2.8
2.7
2.6
2.5
4.2
-0.3
3.9
-0.4
3.6
-0.4
3.5
-0.5
3.3
0.5
3.9
3.5
3.2
3.0
2.8
7.2
-0.2
7.6
-0.2
7.9
-0.2
8.0
-0.2
8.0
0.2
7.0
7.4
7.7
7.8
7.8
3.0
-0.1
3.2
0.2
3.3
0.3
3.4
-0.5
3.4
-0.7
3.0
3.0
3.0
2.9
2.7
0.6
0.2
0.4
-0.2
0.4
-0.3
0.4
-0.3
0.3
-0.2
0.4
0.2
0.1
0.1
0.1
25.7
-1.0
25.8
-1.4
25.7
-1.6
25.7
-2.0
25.4
2.2
24.7
24.4
24.1
23.7
23.2
18.6
+ 0.3
18.7
+0.3
18.8
18.8
18.9
+ 1.5
+ 1.5
+ 1.7
18.9
19.0
20.3
20.3
20.6
71
l
1984 budget
Net interest:
Current services
Policy change
1984 budget
All other outlays:
Current services
Policy change
1984 budget
Total budget outlays:
Current services
Policy change
1984 budget
Budget receipts:
Current services
Policy change
1984 budget
Total budget deficit:
Current services
Policy change
1984 budget
Military retired pay is included in other entitlements.
1985
•0.3
l
1984 budget
Discretionary programs:
Current services
Policy change
1
1984
7.7
-0.3
-70
-69
+ 1.3
+ 1.6
+ 3.1
-6 8
+ 3.5
+ 3.9
-5.8
-5.4
-3.8
-3.4
-2.6
-64
3-40
THE BUDGET FOR FISCAL YEAR 1984
NON-DEFENSE SPENDING AS SHARE OF GNP
1981
1982
1983
1984
1985
1987
1988
IMPACT OF 1984 BUDGET POLICIES
ON OUTLAY CLAIM ON GNP
PERCENT
C U R R E N T SERVICES
OUTLAY CLAIM
26
W///////^Mf///i
25
24
-y
23
-
22
-
21
-
20
1981
1981 OUTLAY CLAIM '
WITH 1984 BUDGET POLICY
I
I
I
I
I
I
1982
1983
1984
1985
1986
1987
^
19 38
BUDGET PROGRAM AND TRENDS
IMPACT OF 1984 BUDGET POLICIES
ON TAX RECEIPT SHARE OF GNP
PERCENT
24
] NET TAX REDUCTION
CURRENT TAX LAW
H l l CONTINGENCY TAX PLAN
[
\ OTHER PROPOSALS
I
j
3-41
PART 4
BUDGET RECEIPTS
4-1
BUDGET RECEIPTS
This section of the budget discusses budget receipts for 1982 to
1986 and the legislative proposals and administrative actions affecting them.1
The economic assumptions on which the receipts estimates are
based are presented in Part 2, and estimates of receipts for 1987-88
are presented in Part 3 and table 2 of Part 9. Part 6 contains an
analysis of the difference between actual receipts for 1982 and the
estimates for 1982 in the fiscal year 1982 Budget Revisions, transmitted to the Congress in March 1981. Part 7 explains the conceptual basis for classifying certain amounts collected by the Federal
Government as budget receipts and other amounts as offsetting
collections.
SUMMARY
Total budget receipts in 1984 are estimated to be $659.7 billion,
an increase of $62.2 billion from the $597.5 billion estimated for
1983. Receipts in 1985 and 1986 are estimated to be $724.3 billion
and $841.9 billion, respectively. These estimates include the effects
of:
• the income tax reductions and other tax changes provided in
the Economic Recovery Tax Act of 1981;
• the tax revisions and improvements in compliance and collection provided in the Tax Equity and Fiscal Responsibility Act
of 1982;
• the 5 cent a gallon increase in the motor fuels tax and other
tax changes provided in the Highway Revenue Act of 1982;
• the contingency tax plan proposed to become effective October
1, 1985 if economic growth sufficient to hold the deficit to
2%% of GNP does not materialize;
• the proposed bi-partisan social security plan, designed to
ensure the future solvency of the social security trust funds;
and
• the other receipts proposals in this budget.
Composition of budget receipts.—The Federal tax system relies
predominantly on income and payroll taxes. In 1984:
• Income taxes paid by individuals and corporations are estimated at $295.6 billion and $51.8 billion, respectively. These
1
Detailed estimates of budget receipts by source for 1982 to 1984 are shown in Tables 12 and 19 of Part 9.
4-2
4-3
BUDGET RECEIPTS
BUDGET RECEIPTS BY SOURCE
(In billions of dollars)
1982
actual
Source
1983
estimate
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts
297.7
49.2
201.5
36.3
8.0
8.9
16.2
285.2
35.3
210.3
37.3
6.1
8.8
14.5
Total, budget receipts
617.8
597.5
1984
estimate
295.6
51.8
242.9
40.4
5.9
9.1
14.0
1985
estimate
1986
estimate
317.9
60.5
275.5
40.8
5.6
9.4
14.5
358.6
74.0
304.9
74.8
5.0
9.7
14.8
724.3
841.9
sources combined account for 52.7% of estimated budget receipts.
• Social insurance taxes and contributions—composed largely of
payroll taxes levied on wages and salaries, most of which are
paid in equal amounts by employers and employees—will
yield an estimated $242.9 billion, 36.8% of the total.
• Excise taxes imposed on selected products, services, and activities are expected to provide $40.4 billion, 6.1% of the total.
• Estate and gift taxes, customs duties, and miscellaneous receipts are estimated at $29.1 billion, the remaining 4.4% of
budget receipts.
Under the tax policy and economic assumptions presented in this
budget, the income tax share of total receipts is projected to decline
to 51.4% by 1986, 4.8 percentage points less than for 1982. This
decline is the net effect of a 5.6 percentage point decline in the
individual income tax share that is partially offset by a 0.8 percentage point rise in the corporation income tax share to 8.8%. Social
insurance taxes and contributions are projected to rise as a share
of total receipts from 32.6% in 1982 to 36.2% in 1986. The excise
tax share is projected to rise to 8.9% in 1986, 3.0 percentage points
greater than for 1982. The projected share of all other receipts
declines by 1.8 percentage points between 1982 and 1986.
ENACTED LEGISLATION
Three major tax laws have been enacted since this administration took office in January 1981. The first, the Economic Recovery
Tax Act of 1981 (ERTA), provides incentives for work, saving, and
investment. The substantial reductions in income taxes and other
changes provided in the Act are estimated to reduce receipts by
$82.6 billion in 1983, $130.3 billion in 1984, $158.2 billion in 1985,
and $202.3 billion in 1986.
The second major tax law, the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), improves the fairness of the tax system
380-000
0 - 83 -
7 : QL 3
4-4
THE BUDGET FOR FISCAL YEAR 1984
while preserving the incentives for work, saving, and investment
enacted in 1981. This Act increases receipts primarily by eliminating unintended benefits and obsolete incentives, and providing
mechanisms to increase taxpayer compliance and improve collection techniques. The provisions of this Act are estimated to increase receipts by $17.3 billion in 1983, $38.3 billion in 1984, $42.2
billion in 1985, and $52.1 billion in 1986.
The Highway Revenue Act of 1982 is the third major tax law
enacted since January 1981. The main revenue provision of this
Act increases the existing excise tax on gasoline and diesel fuel
from 4 to 9 cents a gallon effective April 1, 1983. The Act also
restructures other highway-related taxes to make the taxes paid
by various highway users correspond more equitably to the damage
that such users cause to the highway system. The increased receipts to the Highway Trust Fund, which are estimated at $2.1
billion in 1983, $4.8 billion in 1984, $5.1 billion in 1985, and $5.2
billion in 1986, will be used to finance highway, bridge, and transit
construction and repair. Since increased excise taxes reduce incomes, the net increase in receipts—taking into account the direct
reduction in individual and corporation income taxes—is estimated
at $1.7 billion in 1983, $3.8 billion in 1984, and $3.9 billion in 1985
and 1986.
Despite the increases provided in the Tax Equity and Fiscal
Responsibility Act of 1982 and the Highway Revenue Act of 1982,
taxes have been reduced by $445.9 billion over the 1982-1986
period, relative to pre-ERTA tax law. As shown in the following
table, there is a net tax reduction every year during this period,
ranging from $35.6 billion in 1982 to $146.3 billion in 1986.
NET EFFECT ON RECEIPTS OF ENACTED LEGISLATION '
(In billions of dollars)
1982
Economic Recovery Tax Act of 1981
Tax Equity and Fiscal Responsibility Act of 1982
Highway Revenue Act of 1982
Net tax reduction
1983
1984
1985
1986
19821986
-35.6
*
-82.6 -130.3 -158.2 -202.3 -609.0
149.9
42.2
52.1
38.3
17.3
13.2
3.9
3.9
3.8
1.7
-35.6
-63.5
-88.2 -112.1 -146.3 -445.9
*$50
million or less.
1
These estimates are based on the direct effect only of legislative changes at a given level of economic activity. Induced effects are taken into
account for forecasting incomes, however, and in this way affect the receipts estimates by major source and in total.
The major provisions of each Act are described briefly below.
ECONOMIC RECOVERY TAX ACT OF 19812
Individual income tax provisions.—A number of provisions of the
Economic Recovery Tax Act of 1981 (ERTA) substantially reduce
2
For a more detailed discussion of the provisions of the Economic Recovery Tax Act of 1981, see Part 4 of the
1983 Budget.
BUDGET RECEIPTS
4-5
individual income tax liabilities. These provisions, which are estimated to reduce receipts by $61.3 billion in 1983, $97.2 billion in
1984, $105.1 billion in 1985, and $120.4 billion in 1986, include the
following:
• Individual income tax rate reductions.—Compared with prior
law, tax rates for individuals were reduced across-the-board
by 1.25% for calendar year 1981 and 10% for calendar year
1982, and will be reduced by 19% for calendar year 1983 and
23% for calendar year 1984 and subsequent years.
• Reduction in the maximum individual income tax rate.—The
maximum marginal tax rate on individual income was reduced from 70% to 50% effective January 1, 1982. This
change reduced the maximum effective tax rate on long-term
capital gains from 28% to 20%.
• Deduction for two-earner married couples.—Married couples
with two earners often pay higher taxes than if they were
single. To reduce this penalty, ERTA allowed couples a tax
deduction equal to 5% of the first $30,000 of earnings of the
spouse with the lower earnings in calendar year 1982. In 1983
and subsequent years, the deduction increases to 10%.
• Indexing.—Beginning with calendar year 1985, the individual
income tax brackets, the zero bracket amount, and the personal exemption will be adjusted annually for inflation as
measured by the Consumer Price Index for all urban households (CPI-U). The adjustment for a given calendar year will
be the percentage increase in the CPI-U between fiscal year
1983 and the fiscal year ending prior to such calendar year.
The 1985 adjustment, therefore, will be based on the percentage increase in the CPI-U between fiscal years 1983 and 1984.
Capital cost recovery provisions.—Taxpayers may claim depreciation deductions for tangible property used in a trade or business.
Under prior law, these deductions were allowed over the anticipated useful life of the property, or over guideline lives under the
Asset Depreciation Range (ADR) system. ERTA replaces these
methods of depreciation with the Accelerated Cost Recovery
System (ACRS), which generally provides for a faster write off of
capital expenditures under simplified and standardized rules. This
system of accelerated cost recovery is estimated to reduce receipts
by $16.7 billion in 1983, $25.6 billion in 1984, $34.9 billion in 1985,
and $48.3 billion in 1986.
Saving incentive provisions.—In addition to the across-the-board
reductions in marginal tax rates, several other provisions encourage saving by individual taxpayers. These provisions, which include
partial exclusion of interest income from tax and liberalized treatment of retirement contributions, are estimated to reduce receipts
4-6
THE BUDGET FOR FISCAL YEAR 1984
by $1.0 billion in 1983, $2.1 billion in 1984, $3.5 billion in 1985, and
$5.9 billion in 1986.
Estate and gift tax provisions.—Several provisions reduce estate
and gift taxes by providing an unlimited marital deduction for
transfers to spouses; reducing the maximum tax rate on estates
and gifts; increasing the annual gift tax exclusion; and increasing
annually the unified credit against estate and gift taxes to reach a
credit of $192,800 in 1987, which exempts from tax estates of $600,000
or less. These provisions are estimated to reduce receipts by $2.4
billion in 1983, $3.7 billion in 1984, $4.9 billion in 1985, and $6.5
billion in 1986.
TAX EQUITY AND FISCAL RESPONSIBILITY ACT OF 1982
Improvements in compliance and collection.—The Tax Equity and
Fiscal Responsibility Act of 1982 (TEFRA) includes a number of
provisions designed to ensure that the taxes owed the Government
are collected, and that they are collected on a more timely basis.
These provisions, which are estimated to increase receipts by $5.4
billion in 1983, $14.4 billion in 1984, $11.3 billion in 1985, and $12.4
billion in 1986, include the following:
• Withholding on interest and dividends.—Interest and dividend income received by domestic taxpayers was exempt from
withholding under prior law, although taxes were withheld
from wages. To ensure that taxes are collected from all taxable recipients of interest and dividend income and not just
those who report such income to the IRS, withholding at the
rate of 10% will be required on interest and dividend payments made after June 30, 1983. Individuals with tax liability
in the prior year of $600 or less ($1,000 on a joint return),
individuals aged 65 and older with prior year tax liability of
$1,500 or less ($2,500 on a joint return), and annual interest
payments of $150 or less are exempt. Exemptions from withholding also are provided for payments to corporations, financial intermediaries, and tax-exempt entities.
• Acceleration of corporate income tax payments.—Under prior
law, corporations generally were required to pay at least 80%
of their current year's tax liability in estimated payments.
The remaining liability was payable in two equal installments
due on the 15th day of the third and sixth months following
the close of the taxable year. To ensure that corporations pay
taxes on as timely a basis as most individuals, TEFRA increases the required estimated payment to 90% of the current
year's liability for tax years beginning after December 31,
1982. All remaining liability must be paid in one payment on
the 15th day of the third month following the close of the
taxable year.
BUDGET RECEIPTS
4-7
• Other compliance provisions.—TEFRA contains a number of
other provisions that improve and expand information reporting to the IRS, increase penalties for noncompliance, modify
pension withholding, and allow more effective partnership
audits.
Reductions in unintended benefits and obsolete incentives.—Provisions to reduce unintended benefits and obsolete incentives are
estimated to increase receipts by $6.9 billion in 1983, $16.6 billion
in 1984, $22.9 billion in 1985, and $34.7 billion in 1986. The major
provisions are described briefly below:
• Strengthening of the individual minimum tax.—TEFRA repeals the add-on individual minimum tax. It also strengthens
the alternative minimum tax on individuals by expanding the
tax base to include the preference items previously subject to
the add-on minimum tax and several additional preference
items. A tax of 20% is imposed on the amount by which this
expanded base exceeds a specified exemption ($30,000 for a
single taxpayer, $40,000 for married taxpayers filing a joint
return). The tax is payable only to the extent that it exceeds
the individual's regular tax liability. This provision, which
will ensure that individuals who make extensive use of tax
preferences do not avoid tax, is generally effective January 1,
1983.
• Modification of casualty and medical expense deductions.—
Casualty and medical deductions originally were intended to
apply only to extraordinary expenses. TEFRA strengthens
this principle, while simplifying the treatment of such expenses. Effective January 1, 1983, TEFRA repeals the deduction for one-half of annual health insurance premiums (up to
a maximum of $150), and raises the floor for allowable medical deductions from 3% to 5% of adjusted gross income. It
also eliminates the 1% floor for deductible drug expenditures
effective January 1, 1984, but limits deductible expenditures
to insulin and prescription drugs. Non-business casualty and
theft losses occurring after December 31, 1982 are deductible
only to the extent that they exceed 10% of adjusted gross
income. As under prior law, the deduction for any one casualty is allowed only to the extent it exceeds $100.
• Changes in Accelerated Cost Recovery System (ACRS) and
basis adjustment for investment tax credit.—Under the Accelerated Cost Recovery System enacted in ERTA, personal property placed in service after December 31, 1980, and before
January 1, 1985, could be depreciated using cost recovery
schedules that approximate the 150% declining balance
method. The schedules accelerated to reflect the 175% declining balance method for property placed in service in 1985 and
4-8
THE BUDGET FOR FISCAL YEAR 1984
the 200% declining balance method for property placed in
service in subsequent years. TEFRA repeals the accelerations
in the depreciation schedules for 1985 and 1986. In addition,
the cost basis of depreciable assets placed in service after
December 31, 1982 is reduced by 50% of the amount of applicable investment tax credits. These provisions ensure that the
combination of depreciation deductions and tax credits does
not result in treatment more favorable than expensing.
• Modification of leasing rules.—ERTA liberalized the rules
under which corporations may transfer unused investment
tax credits and depreciation deductions on new investments to
profitable corporations through leasing transactions referred
to as safe-harbor leases. TEFRA repeals these liberalized rules
for leases entered into after December 31, 1983. For safeharbor leases entered into before 1984, the Act limits the type
of eligible property and the amount of tax benefit available to
the lessor. Regular leasing rules generally are liberalized effective January 1, 1984.
• Modification of completed contract method of accounting.—
Prior regulations allowed contractors to defer tax on income
from long-term contracts until the year the contract was completed. Certain costs, known as "period" costs, were deducted
when they were incurred; the remaining costs were allocated
to the contract and deducted when the contract was completed. Under TEFRA, new rules are provided for determining
when contracts are to be considered complete and the income
recognized. These rules are effective for taxable years ending
after December 31, 1982. In addition, some costs previously
treated as period costs will be deducted only when the contract is completed. The new period cost rules, which are
phased in over a 3-year period, generally apply to contracts
that exceed 24 months and are entered into after December
31, 1982.
• Change in taxation of life insurance companies.—Under prior
law, life insurance companies were permitted to account for
modified coinsurance arrangements under special rules. These
arrangements served no purpose other than tax avoidance,
since little, if any, insurance risk was actually transferred
between companies. TEFRA disallows the use of the special
modified coinsurance rules, generally effective January 1,
1982. In addition, several provisions are changed to reduce the
taxes of life insurance companies for a 2-year period ending
December 31, 1983.
Modification of existing excise taxes.—TEFRA makes a number
of changes in excise taxes, which are estimated to increase receipts
BUDGET RECEIPTS
4-9
by $3.6 billion in 1983, $5.2 billion in 1984, $6.0 billion in 1985, and
$2.6 billion in 1986. These changes include the following:
• Increase in airport and airway trust fund taxes.—Statutory
authority for the transfer of revenue from aviation excise
taxes to the airport and airway trust fund expired on September 30, 1980. After that date, revenue from the 5% passenger
ticket tax was deposited in the general fund; revenues from
the 4 cent per gallon tax on general aviation gasoline and the
tire and tube taxes were deposited into the highway trust
fund. Other aviation taxes expired on September 30, 1980.
TEFRA reinstates statutory authority for the deposit of aviation excise taxes into the airport and airway trust fund
effective September 1, 1982 through December 31, 1987. The
Act also increases the domestic air passenger ticket tax to
8%; reimposes the 5% tax on air freight waybills and the $3
per person international departure tax; increases the tax on
noncommercial aviation gasoline to 12 cents per gallon; and
imposes a 14 cent per gallon tax on other noncommercial
aviation fuels. These changes apply to tickets, waybills, and
fuels purchased after August 31, 1982 and before January 1,
1988.
• Increase in cigarette excise taxes.—TEFRA temporarily doubles the excise tax on packages of cigarettes to 16 cents effective January 1, 1983 through September 30, 1985.
• Increase in telephone excise tax.—The telephone excise tax is
increased from 1% to 3% effective January 1, 1983 through
December 31, 1985. The tax terminates effective January 1,
1986.
Changes in employment taxes.—The Act includes a number of
revisions in employment taxes that are estimated to increase receipts by $2.6 billion in 1983, $3.9 billion in 1984, $4.0 billion in
1985, and $3.3 billion in 1986. The major provisions include the
following:
• Modification of Federal unemployment tax (FUTA) rate and
wage base.—Both the Federal and State governments levy
unemployment payroll taxes on employers. These taxes are
deposited in the Federal unemployment insurance trust fund.
Under prior law, employers were subject to a Federal unemployment tax of 3.4% on the first $6,000 of annual wages per
employee. If a State's unemployment insurance law met requirements of Federal law, employers in the State generally
received a 2.7% credit against the tax, for a net Federal tax of
0.7%. Employers also were required to pay a State unemployment tax. Although State tax rates varied, all States had a
wage base greater than or equal to the $6,000 Federal wage
base. TEFRA increases the Federal wage base to $7,000 and
4-10
THE BUDGET FOR FISCAL YEAR 1984
increases the tax rate to 3.5%, for a net Federal tax of 0.8%.
In order for their employers to qualify for the full 2.7%
credit, States will have to increase their unemployment tax
wage base to at least the new $7,000 Federal level. These
changes apply to wages paid after December 31, 1982. For
wages paid after December 31, 1984, the Act increases the
Federal tax rate to 6.2% and the credit to 5.4%, maintaining
the net Federal tax at 0.8%, while encouraging States to
widen the range of tax rates levied on employers depending
on their use of the unemployment insurance system.
• Extension of social security hospital insurance taxes to Federal
employees.—Federal employees are required to pay the hospital insurance portion of the social security tax effective January 1, 1983. This rate is currently 1.3% for both employees
and employers. Most Federal civilian employees were exempt
from social security taxes under prior law.
HIGHWAY REVENUE ACT OF 1982
The major revenue provision of this Act increases the existing
excise tax on gasoline and diesel fuel from 4 to 9 cents per gallon
effective April 1, 1983 through September 30, 1988. Other provisions eliminate existing taxes on automobile and small truck tires;
tires for non-highway use; and tubes and tread rubber. The Act
also repeals existing taxes on lubricating oil, and retail sales of
lightweight trailers and trucks; but raises fees on heavy duty
trucks and trailers. Together, the provisions of this Act are estimated to increase receipts by $1.7 billion in 1983, $3.8 billion in
1984, and $3.9 billion in 1985 and 1986.
4-11
BUDGET RECEIPTS
EFFECT ON RECEIPTS OF ENACTED LEGISLATION
(In billions of dollars)
1982
1983
1984
Individual income tax provisions
-23.2
-61.3
-97.2
Capital cost recovery provisions:
Individual income taxes
Corporation income taxes
-1.6
-9.0
-2.9
-13.8
-4.3
-21.3
-5.6
-29.2
-7.5
-40.7
1985
1986
Economic Recovery Tax Act of 1981
105.1 - 1 2 0 . 4
-10.6
-16.7
-25.6
-34.9
-48.3
Saving incentive provisions
-0.6
-1.0
-2.1
-3.5
-5.9
Estate and gift tax provisions
-0.1
-2.4
-3.7
-4.9
-6.5
Other:
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
-0.4
-0.5
0.4
-0.6
-0.8
-0.2
0.5
-0.8
0.9
-0.7
0.5
0.6
7.2
-2.0
0.5
1.1
17.9
-2.4
0.6
15
-1.2
1.7
-9.8
-21.2
Subtotal, capital cost recovery provisions
Subtotal, other
Total, Economic Recovery Tax Act of 1981
-1.1
-35.6
-82.6 -130.3 -158.2 -202.3
Tax Equity and Fiscal Responsibility Act of 1982
Compliance and collection:
Individual income taxes .
Corporation income taxes
Employment taxes and contributions
38
1.5
0.1
9.6
4.5
0.2
8.8
2.1
0.3
9.5
2.5
0.4
Subtotal, compliance and collection
5.4
14.4
11.3
12.4
Unintended benefits and obsolete incentives:
Individual income taxes
Corporation income taxes
Estate and gift taxes
0.6
6.3
4.0
12.4
0.2
4.7
17.9
0.2
6.4
28.0
0.2
*
6.9
16.6
22.9
34.7
*
3.6
5.2
6.0
2.6
0.6
1.9
0.7
3.2
0.6
3.5
0.5
2.8
2.6
3.9
4.0
3.3
-0.8
-0.3
-1.1
-0.6
-1.3
0.7
-0.5
04
1.1
Subtotal, unintended benefits and obsolete incentives
Excise tax provisions
Employment tax provisions:
Individual income taxes
Social insurance taxes and contributions
Subtotal, employment tax provisions
Other:
Individual income taxes
Corporation income taxes
Subtotal, other
Total, Tax Equity and Fiscal Responsibility Act of 1982...
*
-1.7
-2.0
-0.9
17.3
38.3
42.2
52.1
-05
*
-1.0
*
-1.1
0.2
5.2
3.9
Highway Revenue Act of 1982
Individual income taxes....
Corporation income taxes
Excise taxes
Total, Highway Revenue Act of 1982
2.2
4.8
-1.1
-0.2
5.2
1.7
3.8
3.9
4-12
THE BUDGET FOR FISCAL YEAR 1984
EFFECT ON RECEIPTS OF ENACTED LEGISLATION 1 —Continued
(In billions of dollars)
1982
ADDENDUM
Effect on receipts by source:
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions....
Excise taxes
Estate and gift taxes
Total.
1983
1984
1985
1986
-25.8
-9.5
0.4
-0.6
-0.1
- 6 2 . 1 - 9 2 . 3 -109.7 -136.9
-6.5
-5.8 -12.1 -13.3
2.5
4.0
4.3
3.9
9.4
5.0
10.0
6.2
— 2 4 -3.4
-4.7
-6.2
-35.6
-63.5
-88.2
-112.1 -146.3
* $ 5 0 million or less.
'These estimates are based on the direct effect only of legislative changes at a given level of economic activity. Induced effects are taken into
account for forecasting incomes, however, and in this way affect the receipts estimates by major source and in total.
RECEIPTS PROPOSALS
Bi-partisan social security plan.—The administration supports
the proposed bi-partisan plan to restore social security reserves to
safer levels. The proposed plan ensures the future solvency of the
trust funds through a combination of revenue increases and benefit
reductions over the next seven years. This plan is estimated to
increase governmental receipts by $8.2 billion in 1984, $5.8 billion
in 1985, and $8.9 billion in 1986. The provisions of the plan include
the following:
• Expansion of coverage.—Federal civilian employees and employees of State and local governments and non-profit organizations currently are exempt from mandatory social security
coverage. Under the proposed plan, mandatory coverage will
be extended to all new Federal civilian employees and to
employees of non-profit organizations effective January 1,
1984. State and local governments currently participating in
the social security system will no longer be allowed to withdraw.
• Acceleration of scheduled increases in the Old Age and Survivors and Disability Insurance (OASDI) payroll tax rate.—The
combined employer-employee OASDI tax rate is currently
scheduled to increase from 10.8% to 11.4% on January 1, 1985
and to 12.4% on January 1, 1990. Under the proposed plan
the rate will increase to 11.4% on January 1, 1984, 12.12% on
January 1, 1988, and 12.4% on January 1, 1990. For 1984,
employees would be provided a refundable tax credit equal to
0.3%, the rescheduled portion of the employee tax rate.
• Comparability of self-employment OASDI payroll tax rate.—
Self-employed individuals currently pay 75% of the combined
employer-employee OASDI tax rate. Under the proposed plan
self-employed individuals will be required to pay the combined employer-employee rate effective January 1, 1984. How-
BUDGET RECEIPTS
4-13
ever, one-half of the combined rate will be deductible as a
business cost in calculating taxable income.
• Taxation of social security benefits.—Social security benefits
currently are exempt from the Federal income tax. Under the
proposed plan, single taxpayers with more than $20,000
($25,000 for married couples filing a joint return) of adjusted
gross income from non-social security sources will be required
to include 50% of their social security benefits in adjusted
gross income.
Contingency tax plan.—The administration proposes a contingency tax plan for enactment in calendar year 1983. This plan is
designed as a stand-by measure to ensure that budget deficits for
fiscal years 1986 and beyond will be reduced (by about one percent
of GNP) in the event that economic growth sufficient to hold those
deficits to two and one-half percent (or less) of GNP does not
materialize. The contingency taxes consist of a surcharge on individuals and corporations approximately equivalent to 1% of taxable income, plus an excise tax on oil, both domestically produced
and imported, that will raise revenues of about $5 per barrel. Such
contingency taxes will become effective October 1, 1985, only if
three conditions are met: Congress adopts the administration's deficit reduction measures; the unified budget deficit for fiscal year
1986 is forecasted by the administration, on July 1, 1985, to be
above two and one-half percent of GNP; and, on July 1, 1985, the
economy is growing. If the contingency tax plan becomes effective,
it will remain for up to 36 months. Contingency taxes are estimated to increase receipts by $46.0 billion in 1986.
Tax incentives for higher education.—The administration proposes to exclude from tax earnings on savings deposited in special
accounts to pay future higher education expenses of dependent
children. The maximum annual contribution to these accounts will
be $1,000 per child. However, the $1,000 per child maximum will be
reduced 5 cents for each dollar that the taxpayer's adjusted gross
income exceeds $40,000, so that any taxpayer with adjusted gross
income in excess of $60,000 will be ineligible to make deposits to
these accounts. Eligible expenses are tuition and room and board
paid directly to a university or college. The university or college
must verify that payments received directly from these accounts
were spent for courses or for room and board of a full-time undergraduate degree student. Expenses of students in degree programs
(but not trade schools) would be eligible. Special savings accounts
will qualify only if the dependent children on whose behalf the
savings are made are under age 18. In no case may an account be
kept open for a child over the age of 25. Withdrawn savings will be
reported to the IRS by the financial institution and by the taxpay-
4-14
THE BUDGET FOR FISCAL YEAR 1984
er on his tax return. If there is no accompanying statement from
the college or university indicating that the savings were spent on
eligible expenses, the tax otherwise due on the earnings in these
accounts will be recaptured with a penalty. An exemption from
this penalty will be made in the case of the dependent's death and
for withdrawals made to pay for certain medical expenses of the
dependent. Eligible expenses will not include amounts paid to
schools that follow a racially discriminatory policy. This proposal
will be effective January 1, 1984 and is estimated to reduce receipts
by a negligible amount in 1984, $0.1 billion in 1985, and $0.2 billion
in 1986.
Enterprise zone tax incentives.—Under current law the only tax
incentive for the redevelopment of economically distressed areas is
a relaxation of limitations on tax-exempt financing for facilities
receiving assistance under the Urban Development Action Grant
(UDAG) program. The administration proposes that beginning in
1983 up to 25 small areas per year (not to exceed 75 in total) be
designated "enterprise zones/' Effective January 1, 1984, the following tax incentives will be available for economic redevelopment
in the zones: an exemption from tax of capital gains on certain
qualified property, a tax credit for employees equal to 5 percent of
the first $10,500 of wages earned, a tax credit for employers equal
to 10 percent of any increases in their payrolls, a separate tax
credit for employers of certain disadvantaged individuals equal to
50 percent of the wages of such persons for the first three years of
employment (the percentage declines by 10 points in the fourth
year and each year thereafter), an increase of 50 percent in the
regular investment tax credit for investment in equipment, a 10
percent investment tax credit for new construction and reconstruction of buildings, and continued availability of tax-exempt bond
financing beyond the 1986 sunset date for small issue bonds. These
incentives, which generally will remain fully in effect for 20 years
and be phased out over the succeeding four years, are estimated to
reduce receipts by $0.1 billion in 1984, $0.4 billion in 1985, and $0.8
billion in 1986.
Tuition tax credit—The administration proposes to provide taxpayers a nonrefundable credit for 50 percent of tuition expenses
paid to private elementary and secondary schools for certain qualified dependents. The maximum credit allowable for each dependent
is $100 in 1983, $200 in 1984, and $300 thereafter, with the maximum amount in each year phased out for taxpayers with adjusted
gross incomes between $40,000 and $60,000. Credits will not be
allowed for expenses paid to private schools that follow a racially
discriminatory policy. This proposal, which will be effective for
expenses incurred after July 31, 1983, is estimated to reduce re-
BUDGET RECEIPTS
4-15
ceipts by $0.2 billion in 1984, $0.5 billion in 1985, and $0.8 billion in
1986.
Tax treatment of health insurance premiums.—Under current
law, compensation paid in cash is fully taxable for both social
security and income tax purposes, while compensation paid in the
form of health insurance benefits is nontaxable. The administration proposes that effective January 1, 1984, employees be required
to pay social security and income taxes on employer-paid health
insurance premiums in excess of $175 per month or $2,100 per year
for a family plan, and $70 per month or $840 per year for a single
plan. Employer-paid health insurance premiums below these
amounts still will be excluded from taxation. The $175 and $70
amounts will be indexed to rise with inflation. This proposal is
estimated to increase receipts by $2.3 billion in 1984, $4.4 billion in
1985, and $6.0 billion in 1986.
Jobs tax credit for the long-term unemployed.—Under current law
no special tax incentives are provided for hiring the long-term
unemployed. The administration proposes a six month extension and
modification of the Federal Supplemental Compensation program
with an option for recipients to receive assistance in securing work
through a system of tax credits to employers. To be qualified,
individuals must have exhausted their regular, and, where available,
extended Unemployment Insurance benefits. Effective April 1, 1983,
individuals who meet the eligibility requirements for the additional
unemployment payments may elect to receive vouchers equivalent
in value to the unemploj'ment payments. These vouchers will entitle
an employer hiring qualified individuals for full-time employment
within six months of their eligibility to receive the credit. Although
payment of the additional benefits will end on September 30, 1983,
individuals will be able to become eligible for vouchers until March
31, 1984. Employers will be able to receive a tax credit for any
qualified individuals hired before April 1, 1984. This proposal is
estimated to reduce receipts by a negligible amount in 1983, $0.2
billion in 1984, $0.2 billion in 1985, and $0.1 billion in 1986.
Caribbean Basin Initiative (CBI).—Under current law, expenses
incurred in attending business conventions outside the North
American area are deductible only if it is as reasonable to hold the
convention outside the North American area as within it. The
administration supports the Caribbean Basin Initiative as passed
by the House of Representatives last year. This initiative provides
that effective January 1, 1983, expenses incurred in attending a
business convention in a qualifying Caribbean Basin country (in-
4-16
THE BUDGET FOR FISCAL YEAR 1984
eluding, for this purpose, Bermuda) will be deductible, provided
they meet the standards for deductibility of North American business expenses. A qualifying Caribbean Basin country is a country
that is designated by the President as entitled to the benefits of the
Caribbean Basin Initiative and enters into a bilateral executive
agreement with the United States providing for the exchange of
such information as is necessary for carrying out the tax laws of
the United States and the other country. The CBI also provides
that effective April 1, 1983, all excise taxes collected on rum imported into the United States, wherever produced, be paid into the
Treasuries of Puerto Rico and the U.S. Virgin Islands. Under present law, only taxes collected on rum produced in Puerto Rico or the
U.S. Virgin Islands and transported to the United States are transferred to Puerto Rico or the U.S. Virgin Islands. The revenue
impact of the proposal is negligible.
Changes in contributions to civil service retirement (CSR).—Civil
service retirement currently costs 35% of payroll. Employees contribute 7% of wages and salaries to CSR, employing agencies contribute 7%, and the general fund of the Federal Government contributes the remaining 21%. The administration is proposing several reforms that would reduce the cost of civil service retirement to
22% of payroll. In keeping with the principle that employees and
employers should each pay 50% of retirement costs, several
changes in contributions to CSR also are being proposed. These
changes, which are estimated to increase governmental receipts by
$1.2 billion in 1984, $2.3 billion in 1985, and $2.1 billion in 1986,
include the following:
• Increase in the employee contribution.—The administration
proposes that the employee contribution be increased from
7% of wages and salaries to 9% effective October 1, 1983, and
to 11% effective October 1, 1984.3
• Increase in the District of Columbia employer contribution.—
The District of Columbia (D.C.) currently contributes 7% of
employee wages and salaries to the civil service retirement
fund; the Federal Government contributes an amount equal
to 21% of the D.C. government payroll to meet the full cost of
the system. This constitutes a hidden subsidy to the D.C.
government—one that is not intended. To rectify this situation, the administration proposes that the contribution of the
District of Columbia be increased to 9% effective October 1,
1983 and to 11% effective October 1, 1984.4
3
A corresponding increase in the employer contribution is proposed; however, employer contributions are
shown on the outlay side of the budget and do not affect governmental receipts.
*The administration proposes to increase the contributions of the Postal Service by the same amount.
Contributions of the Postal Service to CSR are shown on the outlay side of the budget and do not affect
governmental receipts.
4-17
BUDGET RECEIPTS
EFFECT ON RECEIPTS OF PROPOSED LEGISLATION1
(In billions of dollars)
1984
1983
Bi-partisan social security plan
Taxation of health insurance premiums
Contributions to civil service retirement
Higher education tax incentive
Enterprise zone tax incentives
Tuition tax credit
Jobs tax credit
Caribbean Basin Initiative
Other
Subtotal
Contingency tax plan
Total
1985
8.2
2.3
1.2
*
1986
-0.1
-0.2
-0.2
*
*
5.8
4.4
2.3
-0.1
-0.4
0.5
0.2
*
*
8.9
6.0
2.1
-0.2
-0.8
-0.8
0.1
*
*
*
11.2
11.3
*
11.2
11.3
15.3
46.0
61.3
*
*
-0.2
0.2
11.5
-3.5
0.3
15.0
*
*
*
10.6
-1.7
14.3
38.1
*
*
11.2
11.3
61.3
*
*
ADDENDUM
Effect of proposals on receipts by source:
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
Other
Total
*$50 million or less.
1
These estimates are based on the direct effect only of legislative changes at a given level of economic activity. Induced effects are taken into
account for forecasting incomes, however, and in this way affect the receipts estimates by major source and in total.
EFFECT OF ENACTED AND PROPOSED CHANGES ON
RECEIPTS
The actual change in receipts that will result from an enacted or
proposed tax revision will depend on both the direct effect of the
tax change and the indirect or "feedback" effect. The direct effect
is the increase or decrease in receipts due only to the tax change at
given levels of income. The indirect or feedback effect is the increase or decrease in receipts due to the effect of the tax change on
income levels.
The estimates of the effect of enacted and proposed tax changes
shown in this budget represent the direct effect of these changes on
receipts, based on levels of corporate and individual income that
reflect enactment of the tax change. The estimated indirect or
feedback effect on receipts due to the tax-induced change in incomes is not included in these estimates because it is already
included in gross receipts.
For example, the estimates of the effect of the Economic Recovery Tax Act of 1981 shown in this budget represent only the direct
effect of the changes provided in the Act. The increased receipts
resulting from the tax-induced increase in incomes are included in
gross receipts. The estimates of the direct effect of the Economic
Recovery Tax Act of 1981 on receipts therefore overstate the net
4-18
THE BUDGET FOR FISCAL YEAR 1984
loss to the Treasury of the income tax reductions and other tax
changes provided in the Act.
The estimates in this budget of the effect of the administration's
proposals on receipts also represent the direct effect of these
changes. The indirect effect of these proposals is included in gross
receipts.
CHANGES IN BUDGET RECEIPTS
Budget receipts are estimated to decline by $20.3 billion in 1983
and to increase by $62.2 billion in 1984. The year-to-year changes
can be divided between changes due to growth in the tax base and
changes due to revisions in the tax structure. Under the tax rates
and structure in effect on January 1, 1981, receipts would have
risen by $5.1 billion in 1983 and $71.6 billion in 1984. Thus, the
combined effect of administrative action and enacted and proposed
tax law changes, which is shown in the accompanying table, reduces the growth in receipts by $25.4 billion in 1983, $9.4 billion in
1984, and $12.5 billion in 1985. The corresponding increase for 1986
is $25.8 billion.
1983
Growth in receipts (in billions of dollars):
Under existing law and administrative action and proposed
legislation...
Under tax rates and structure in effect Jan. 1, 1981
Difference
1984
1985
1986
-20.3
5.1
62.2
71.6
64.6
77.1
117.6
91.8
-25.4
-9.4
-12.5
25.8
4-19
BUDGET RECEIPTS
CHANGES IN BUDGET RECEIPTS
(In billions of dollars)
1982
Receipts under tax rates and structure in
effect January l f 1981 »
Administrative action
Enacted legislative changes:
Economic Recovery Tax Act of 1981
Tax Equity and Fiscal Responsibility Act of 1982..
Highway Revenue Act of 1982
Social security taxable earnings base increases:4
$29,700 to $32,400 effective Jan. 1, 1982
$32,400 to $35,700 effective Jan. 1,1983
$35 700 to $37 800 effective Jan 1 1984
$37 800 to $39 600 effective Jan 1 1985
$39 600 to $42 000 effective Jan 1 1986...
Social security (OASDHI) tax rate increases.-2 4
13.3% to 13.4% effective Jan. 1, 1982
13 4% to 14 1% effective Jan 1 1985. .
14 1% to 14 3% effective Jan 1 1986
Other
Total, receipts under existing legislation
Proposed legislative changes:
Bi-partisan social security plan
Taxation of health insurance premiums
Contingency tax plan
Contributions to civil service retirement
Higher education tax incentive
Enterprise zone tax incentives
Tuition tax credit
Jobs tax credit
Caribbean Basin Initiative
Other
Total, receipts under existing and proposed legislation 3
1983
1984
1985
1986
650.8
0.2
656.0
0.2
727.6
0.2
804.7
0.2
896.5
0.2
-35.6
*
82.6
17.3
1.7
130.3
38.3
3.8
158.2
42.2
3.9
-202.3
52.1
3.9
1.0
2.8
1.1
3.3
3.2
0.7
3.9
3.9
2.0
0.6
4.6
4.6
2.4
1.7
0.8
0.9
1.4
1.5
1.6
8.2
0.5
0.4
0.2
0.1
1.7
12.2
2.5
0.3
617.8
597.5
648.5
713.1
780.6
8.2
2.3
5.8
4.4
1.2
*
*
*
-0.1
-0.2
-0.2
*
*
2.3
-0.1
-0.4
-0.5
-0.2
*
*
8.9
6.0
46.0
2.1
-0.2
-0.8
-0.8
-0.1
*
*
597.5
659.7
724.3
841.9
617.8
*$50 million or less.
1
These figures assume a social security taxable earnings base of $29,700.
2
The combined employer-employee old age and survivors, disability, and hospital insurance (OASDHI) tax rate.
3
These estimates include both the direct and indirect effects of administrative action and legislative changes.
4
Technical note: When the tax rate and the taxable earnings base increase at the same time, dividing up the total effect on receipts is
arbitrary to some small extent because of an interaction effect. The increase in receipts due to this interaction effect is attributed to the rate and
base changes in proportion to the increases in receipts that would occur if the rate and base were each changed separately.
380-000
0 - 8 3 - 8
:
QL
3
4-20
THE BUDGET FOR FISCAL YEAR 1984
RECEIPTS BY SOURCE
Individual income taxes.—Individual income tax receipts are estimated at $285.2 billion in 1983 and $295.6 billion in 1984. These
estimates reflect the individual income tax reductions provided in
the Economic Recovery Tax Act of 1981, which reduce individual
income tax receipts in 1983 and 1984 by $65.9 billion and $104.5
billion, respectively. These reductions are partially offset by the tax
revisions and improvements in compliance and collection provided
in the Tax Equity and Fiscal Responsibility Act of 1982, which
increase individual income taxes by an estimated $4.3 billion in
1983 and $13.3 billion in 1984. The proposed changes in this budget
are estimated to reduce individual income taxes by $0.2 billion in
1984.
Individual income taxes in 1985 and 1986 are projected at $317.9
billion and $358.6 billion, respectively. The changes in individual
income taxes provided in ERTA and TEFRA result in a net reduction in individual income tax receipts of $108.6 billion in 1985 and
$135.8 billion in 1986. The administration's proposals, including the
proposed contingency tax to become effective October 1, 1985, are
estimated to reduce individual income taxes by $3.5 billion in 1985
and increase them by $10.6 billion in 1986.
Corporation income taxes.—Corporation income tax receipts are
estimated at $35.3 billion in 1983 and $51.8 billion in 1984. These
estimates reflect the Accelerated Cost Recovery System and other
provisions of ERTA, which are estimated to reduce corporation
income tax receipts in 1983 and 1984 by $14.0 billion and $22.0
billion, respectively. The tax revisions and improvements in tax
collection and enforcement provided in TEFRA add $7.5 billion to
corporation income tax receipts in 1983 and $16.2 billion in 1984.
Corporation income tax receipts in 1985 and 1986 are estimated
at $60.5 billion and $74.0 billion, respectively. These estimates reflect net reductions of $11.9 billion in 1985 and $13.1 billion in 1986
due to enactment of ERTA and TEFRA. The administration's proposals are expected to reduce corporation income taxes in 1985 and
1986 by $0.3 billion and $1.7 billion, respectively.
Social insurance taxes and contributions.—This category includes
social security and railroad retirement taxes, unemployment insurance taxes and deposits, and other retirement contributions.
Receipts from this source are expected to be $210.3 billion in
1983 and $242.9 billion in 1984. These estimates reflect the changes
in employment taxes and contributions provided in ERTA and
TEFRA, which are estimated to increase receipts by $2.5 billion in
1983 and $4.0 billion in 1984. The proposed bi-partisan social security plan is estimated to increase these receipts by an additional
BUDGET RECEIPTS
4-21
$9.8 billion in 1984. Scheduled increases in the social security taxable earnings base from $32,400 in 1982 to $35,700 in 1983 and to
$37,800 in 1984 also are reflected in these estimates.
The estimates for 1985 and 1986 are $275.5 billion and $304.9
billion, respectively. These estimates reflect scheduled increases in
the combined employer-employee social security (OASDHI) tax rate
from 13.4% to 14.1% on January 1, 1985, and to 14.3% on January
1, 1986, and annual increases in the taxable earnings base to
$42,000 in 1986. The increases in social insurance taxes and contributions provided in ERTA and TEFRA add $4.3 billion to receipts
in 1985 and $3.9 billion in 1986. These receipts are increased by an
additional $11.6 billion in 1985 and $10.6 billion in 1986 due to the
proposed bi-partisan social security plan.
Excise taxes.—Excise taxes are levied on a variety of products,
services, and activities. Receipts from these taxes are estimated at
$37.3 billion in 1983 and $40.4 billion in 1984. These estimates
include the windfall profit tax, which is estimated at $13.8 billion
in 1983 and $12.2 billion in 1984. The estimates also reflect enactment of ERTA, which reduces excise taxes by $0.8 billion in 1983
and $0.6 billion in 1984. TEFRA, which increased excise taxes on
airport and airway users, cigarettes, and telephone service—increases excise taxes in 1983 and 1984 by an estimated $3.6 billion
and $5.2 billion, respectively. The 5 cent per gallon increase in the
excise tax on gasoline and diesel fuel, and other provisions of the
Highway Revenue Act of 1982 add an additional $2.2 billion to
excise taxes in 1983 and $4.8 billion in 1984.
The estimates for 1985 and 1986 are $40.8 billion and $74.8
billion, respectively. These estimates include $11.3 billion from the
windfall profit tax in 1985 and $10.5 billion in 1986. They also
reflect a net increase of $10.0 billion in 1985 and $6.2 billion in
1986 due to the provisions of ERTA, TEFRA, and the Highway
Revenue Act. The proposed contingency tax plan is estimated to
increase excise taxes in 1986 by an additional $38.1 billion.
Estate and gift taxes.—Estate and gift taxes are estimated at $6.1
billion in 1983, $5.9 billion in 1984, $5.6 billion in 1985, and $5.0
billion in 1986. These estimates reflect reductions due to enactment
of ERTA and partially offsetting increases due to enactment of
TEFRA.
Other receipts.—Customs duties and miscellaneous receipts (the
largest of which are deposits of earnings by the Federal Reserve
System) are estimated to total $23.3 billion in 1983, $23.2 billion in
1984, $24.0 billion in 1985, and $24.5 billion in 1986.
Proprietary receipts.—In addition to budget receipts, the Government receives significant proprietary income from the public. This
4-22
THE BUDGET FOR FISCAL YEAR 1984
income is derived from various market-oriented activities and takes
the form of interest, rents, royalties, and the sale of Government
property, products, and services. Because this income arises from
business-type transactions rather than from taxation, it is treated
as an offset to related outlays and budget authority rather than as
budget receipts. Proprietary receipts from the public are explained
further in Part 7 and are shown in Table 13 of Part 9.
Budget Receipts
$ Billions
800-
-BOO
MM Social Insurance
£i!;!lllill!!l;llll and Contributions::;;!::
- 200
1974-7S,. 7 5
77;
FiseaJYears •• . . ' . \ - ' "
PART 5
MEETING NATIONAL NEEDS:
THE FEDERAL
PROGRAM BY FUNCTION
5-1
INTRODUCTION
National needs and the functional classification.—This part of
the budget discusses budget authority, outlays, and related measures of Federal spending, focusing on the end purposes that the
spending serves. The presentation is organized in terms of the
functional structure.1 Each functional section except for net interest begins with a statement of the principal national needs met by
activities in that function.
The functional structure is divided into 17 broad areas (functions) that provide a coherent and comprehensive basis for analyzing the budget. It has two additional categories—allowances and
undistributed offsetting receipts—that are not functions but are
required in order to cover the entire budget. Budget authority and
outlays are classified in the functional structure according to the
primary purpose of the activity; to the extent feasible this classification is made without regard to agency or organizational distinctions. Classifying each activity in the function that defines its most
important purpose—even though many activities serve more than
one purpose—permits adding the budget authority and outlays of
each function to obtain the budget totals.
The federalism initiative.—In January 1982 the administration
announced a $50 billion program to return responsibility for a
number of Federal programs back to the States along with revenue
sources to finance them. Because this program required extensive
discussions with State and local officials to satisfactorily resolve
the details, the basic principles were enunciated in last year's
budget but the specific changes were not incorporated into the
detailed estimates. Over the past year numerous meetings between
Federal, State, and local officials have been held to work out these
details. Significant progress has been made in designing this extensive reform. However, a significant number of issues have not yet
been fully resolved. Therefore, this initiative has not been incorporated in the detailed estimates in this budget. The Federalism
initiative is discussed in greater detail in Special Analysis H (Federal Aid to State and Local Governments).
Structure of the Part 5 sections.—For each function (except the
net interest function) there is a common structure to the presenta1
See the sections entitled "Functional classification" and "National needs presentation" in Part 7 of this
volume for additional background information.
5-2
INTRODUCTION
5-3
tion. Each section starts with a statement of national needs. Each
section has a table that shows budget authority and another table
that shows outlays for that function for 5 years (1982 through
1986). These tables display each subfunction and provide programmatic detail below the subfunction level. Off-budget authority and
outlays for each function are shown as addendum entries.
Credit budget—Federal credit activity may take the form of
direct loans or loan guarantees, and both direct loans and loan
guarantees may be issued by either on-budget agencies or offbudget Federal entities. Hence, in order to have a comprehensive
system of control over Federal credit, it is necessary to include all
of these transactions in a single credit budget. The credit budget
data are shown in the appropriate functions in Part 5.
There is a fundamental difference in budget accounting between
direct loans and loan guarantees. Direct loans are loans made by
the Federal Government to borrowers. As such, they are Federal
outlays that must be financed by Federal taxes or borrowing. Loan
guarantees were originally Federal guarantees of private lending
and, as such, did not result in direct Federal outlays. In recent
years most Federal loan guarantees have been to guarantee direct
loans by the Federal Financing Bank (FFB), an off-budget Federal
entity. More information on Federal lending activities can be found
in Part 6 of this document, in Special Analysis E ("Borrowing and
Debt"), and in Special Analysis F ("Federal Credit Programs"). The
tables in Part 5 display the program activity of the credit budget
by function; the sum of the figures in these tables adds up to the
credit budget totals.
There are three major changes in the credit budget presentation
in Part 5 from the presentation in prior budgets:
• In prior budgets double-counting of loan transactions was included in the credit tables and then deducted out. For example, if an agency made a loan and then sold it to the FFB, the
loan was counted as new lending by both the originating
agency and the FFB. This double-counting has been eliminated from the Part 5 credit tables to reduce confusion, but the
details are still available in Special Analysis F.
• Net direct loans, direct loans outstanding, net guaranteed
loans, and guaranteed loans outstanding are now shown by
program in the Part 5 credit tables.
• The credit tables now show estimates for two additional years
beyond the budget year.
Allowances.— There are two undistributed allowances reflected in
the current budget: allowances for civilian agency pay raises, and
for increased employing agency payments for employee retirement.
The transactions in these categories are discussed in greater detail
5-4
THE BUDGET FOR FISCAL YEAR 1984
in the allowances section. Additionally, there are allowances for
pay raises for military and civilian personnel of the Defense Department included in the national defense function and for Coast
Guard military pay raises in the transportation function.
Budget authority and outlays for undistributed allowances are
always recorded differently in the estimate years than in the past
years. For the estimate years they are undistributed by agency,
function, and account; they constitute an adjustment entry to move
the budget closer to realistic totals, but the actual distribution of
the transactions by account is unidentified. When the transactions
actually take place they are recorded in the appropriate agencies,
functions, and accounts so that the budget never records allowances for past periods.
Changes in the functional structure.—Only one significant change
has been made in the functional classification for the 1984 budget.
The subfunction "interest received by trust funds" was shifted
from undistributed offsetting receipts to the interest function, and
the interest function was renamed "net interest."
Relationship to other budget tables.—Other parts of the budget
include a number of tables that supplement the tables shown in
Part 5 by showing data over a longer period of years or more
detailed data than those reflected in the Part 5 tables.
• Budget outlays by function and subfunction for the years 1974
through 1984 are shown in Table 20 in Part 9 of this document. (Data for earlier years can be obtained upon request
from the Office of Management and Budget.)
• Estimates and projections of budget authority by function and
major program for the years 1982 to 1988 are published in
Table 5 of Part 9.
• Estimates and projections of budget outlays by function and
major program for the years 1982 to 1988 are published in
Table 3 of Part 9.
• Part 8 contains a detailed set of budget authority and outlay
figures for all budget and off-budget accounts. Each account
has a 3-digit code indicating the function and subfunction in
which it is classified.
The Full Employment and Balanced Growth Act—Section 4(a) of
the Full Employment and Balanced Growth Act of 1978 requires
that the President's budget shall incorporate the programs and
policies that the President deems necessary to achieve the goals
specified in the act. These goals are discussed in the President's
Economic Report. Programs and policies to help achieve these
goals, as well as a broad range of other goals mentioned in the Act,
are discussed throughout this section.
INTRODUCTION
5-5
As demonstrated by the following functional discussions, the
goals listed in the act were among those weighed in the process of
developing the President's budget recommendations.
Tax expenditures.—Tax expenditures are features of the individual and corporation income tax laws that provide special benefits or
incentives in comparison with what would be permitted under the
general provisions of the Internal Revenue Code. They arise from
special exclusions, exemptions, or deductions from gross income, or
from special credits, preferential tax rates, or deferrals of tax
liability. In many cases tax expenditures can be viewed as alternatives to other means by which the Federal Government can carry
out policy objectives, such as direct outlays, loan guarantees, regulations, and other tax law provisions.
For some tax expenditure provisions the revenue loss is equivalent to the direct budget outlay that would be required to provide
taxpayers with an identical level of after-tax benefits. This is the
case for itemized deductions, such as the deduction for medical
expenses. Under present law, a taxpayer can deduct some portion
of eligible medical expenses and thereby reduce his tax liability.
Alternatively, the Government could directly pay the portion of
medical expenses equal to the revenue loss under the present law.
In either case, the patient would have the same net medical bill to
pay, and the doctor and other suppliers of medical services would
have the same taxable income. The revenue loss is, therefore, equal
to the equivalent budget outlay.
In many other cases it would take greater budget outlays to
achieve a given level of after-tax benefits than would be required
by the tax expenditures, because, in the absence of other tax expenditures, taxpayers would have to pay taxes on the higher
income derived from budget outlays. For example, one tax expenditure provision is the exclusion from taxable income of the value of
housing and meals provided military personnel. If the Government
were to repeal this tax exclusion but instead pay higher salaries,
the increase in salaries would be taxed. Therefore, if the Government were to use taxable direct expenditures rather than tax
expenditures and were to provide the same total after-tax compensation, the increase in direct outlays for higher salaries would have
to be greater than the revenue loss under the special tax provision.
The Federal deficit would be the same in either case, however,
because the higher outlays would be required only to the extent
that tax receipts were higher. Tax expenditures are, therefore,
shown in Part 5 as outlay equivalents rather than as revenue
losses so that they may more easily be compared with taxable
direct budget outlays.
Tax expenditure estimates cannot simply be added together to
obtain totals for functional areas or a grand total. In many cases,
5-6
THE BUDGET FOR FISCAL YEAR 1984
simply adding tax expenditures together produces inaccurate totals
because certain tax expenditures affect the value of other tax
expenditures. These interaction effects are explained in Part 6 and
in Special Analysis G, "Tax Expenditures," which is published
separately from this document. Part 5 and Special Analysis G
provide estimates of total tax expenditures for each function after
the individual amounts have been adjusted for interaction effects.
Tax expenditures are discussed in the following sections on the
Federal program by function so that they may be compared with
the outlays and loan guarantees that serve similar purposes. They
are also discussed in Part 6 of this document. In addition, Special
Analysis G analyzes the concept and measurement of tax expenditures, explains each tax expenditure provision, and provides outlay
equivalent as well as revenue loss estimates for each of the tax
expenditures.
Other Federal fiscal activities.—The Federal Government allocates resources by means other than those reflected in budget
outlays, tax expenditures, and loan guarantees. Outlays of the offbudget Federal entities, which are federally owned and controlled
but excluded from the budget under provisions of laws, are similar
in nature to budget outlays. The regulation of economic activity
also has a major impact on the economy in many sectors. Finally,
provisions of the tax law affect the allocation of resources among
private uses and the distribution of income among individuals in
many important ways not covered by tax expenditures, which include only special provisions of income taxes. Federal taxes other
than income taxes have economic effects, as do the tax rates,
personal exemptions, and other features of the income tax structure that are not treated as tax expenditures.
The functional/national needs sections that follow include information on off-budget Federal entities. Off-budget Federal entities
and privately owned, Government-sponsored enterprises are discussed in Part 6 of the Budget and in Special Analyses E and F.
NATIONAL DEFENSE
5-7
NATIONAL DEFENSE
National Needs Statement
Federal expenditures for national defense serve to protect
America's people, its institutions, its lands and its allies from
foreign aggression.
The basic objective of our defense program is to prevent both
nuclear and conventional war. Our defense program seeks to deter
other nations from threatening our vital interests and those of our
allies and friends. This deterrence must be based on the maintenance of strategic nuclear capabilities, which make nuclear war
with us an unacceptable option; maintenance of adequate maritime
strength in key areas; strong forward-deployed forces in NATO and
Northeast Asia; and the ability to deploy rapidly and sustain our
military forces worldwide.
The budget proposes $280.5 billion in budget authority for the
national defense function in 1984. Outlays are estimated at $245.3
billion in 1984, increasing to $285.3 billion in 1985 and $323.0
billion in 1986. The accompanying table shows budget authority
and outlays for the three major national defense components: military functions of the Department of Defense, atomic energy defense
activities, and the defense-related activities of other agencies.
Department of Defense-Military.—The $34.0 billion increase in
budget authority for the Department of Defense in 1984 demonstrates the administration's continued commitment to provide the
military strength necessary to maintain the Nation's security.
U.S. defense policies are designed to deter war by maintaining
nuclear and conventional forces sufficient to convince any potential
adversary that the cost of aggression would be too high to justify
an attack. Should deterrence fail, we must have sufficient strength
to defeat the attack and achieve our national objectives while
limiting—to the extent possible and practicable—the scope of the
conflict. As the Soviet Union continues to improve its military
capabilities, United States forces must be strengthened to meet the
Soviet challenge and protect our national interests. This requires
that our current defense program:
5-8
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL DEFENSE
(Functional code 050; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
42,875
45,485
47,927
49,741
51,165
14,986
16,155
62,466
64,462
20,060
4,916
2,203
2,516
-733
66,259
80,303
22,805
4,512
2,532
932
-532
17,088 18,080 19,306
-282
-667
-830
74,002 82,366 90,657
94,088 119,647 136,383
29,622 32,206 34,145
5,823
9,901 10,331
2,833
3,877
3,464
2,822
2,287
1,767
-544
-844
-821
3,042
1,420
6,862
4,470
18
25
22
BUDGET AUTHORITY
Department of Defense—Military:
Military personnel
Retired military personnel:
Existing law
Proposed legislation
Operation and maintenance
Procurement
Research, development, test and evaluation
Military construction
Family housing
Revolving funds and other
Offsetting receipts
Allowance for civilian pay raises
Allowance for military pay raises and benefits.
Other legislation
Supplemental for later transmittal
Proposed rescissions for later transmittal
Subtotal, Department of Defense—Military..
Atomic energy defense activities...
Defense-related activities:
Existing law
Proposed legislation
Subtotal, defense-related activities.
Deductions for offsetting receipts
Total, budget authority
1,608
-650
213,751
239,407
273,400
321,600
356,400
4,737
5,700
6,778
8,037
7,962
219
371
429
-100
583
-188
738
-270
219
371
468
-4
218,704
245,474
329
395
-4
-4
280,503 330,028
364,826
42,341
45,308
47,676
49,548
50,988
14,938
59,674
43,271
17,729
2,922
1,993
716
-733
16,130
64,643
55,210
21,430
4,124
2,358
153
-532
17,052
-282
71,649
68,238
26,332
4,393
2,635
1,044
-544
232
-124
22
680
-295
18,044 19,267
-830
-667
79,080 87,260
85,905 103,659
29,959 32,604
7,619
5,504
3,375
3,011
1,824
1,804
-844
-821
2,974
1,320
6,862
4,470
18
25
160
466
-148
-38
182,850
208,932
238,600
277,500
314,900
4,309
5,471
6,422
7,425
7,714
263
370
263
_4
370
-4
387
-100
287
-4
534
-188
347
-4
694
-270
425
-4
187,418 214,769
245,305
285,268
323,035
OUTLAYS
Department of Defense—Military:
Military personnel
Retired military personnel:
Existing law
Proposed legislation
Operation and maintenance
Procurement
Research, development, test and evaluation
Military construction
Family housing
Revolving funds and other
Offsetting receipts
Allowance for civilian pay raises
Allowance for military pay raises and benefits....
Other legislation
Supplemental for later transmittal
Proposed rescissions for later transmittal
Subtotal, Department of Defense—Military..
Atomic energy defense activities.
Defense-related activities:
Existing law
Proposed legislation
Subtotal, defense-related activities.
Deductions for offsetting receipts
Total, outlays.
NATIONAL DEFENSE
5-9
• modernize all components of U.S. strategic forces to ensure
their ability to deter a nuclear attack, and if such an attack
should occur, to survive and retaliate;
• improve the Nation's ability to respond militarily to crises
anywhere in the world;
• maintain sufficient maritime strength to ensure our ability to
deploy U.S. forces to critical regions overseas to protect our
interests, support our allies, and ensure continued access to
essential resources;
• revitalize alliances and coalitions to protect U.S. interests
worldwide and in particular to achieve NATO objectives; and
• improve the readiness and combat endurance of conventional
forces, and modernize the equipment of these forces.
The administration has initiated defense programs to achieve
these objectives and to rebuild our defense forces. Sustained increases in defense resources will be required over a period of years.
Fiscal year 1983 Supplemental and Rescissions.—The President
will propose 1983 supplemental appropriation requests for procurement of the Peacekeeper missile, the Pershing II missile and for a
number of NATO-related programs. Amounts for Peacekeeper will
depend upon Presidential review of the recommendations of the
President's Commission on Strategic Forces. Pershing II funds will
be requested following successful flight testing of the missile. The
NATO-related supplemental will include funds for the Ground
Launched Cruise Missile, pre-positioning of material in Europe, the
U.S. share of costs for host nation support in the Federal Republic
of Germany, and a general provision eliminating restrictions on
purchasing specialty metals and defense equipment from our allies.
Proposed rescissions will be identified and transmitted later.
Budget authority requested for the Department of Defense-Military is shown by mission category in the following table and discussed below.
Strategic forces.—The administration's strategic modernization
program is continued in the 1984 budget. The program consists of
six reinforcing elements: improvement of our command, control,
communications, and intelligence systems; modernization of our
long-range bomber force by procurement of the new B-1B bomber
and by research and development on an advanced technology
(stealth) bomber; continued deployment of the Trident I submarinelaunched ballistic missile and development of a new, more powerful and accurate, Trident II missile; development and deployment
of cruise missiles; improvements in the capability of our land-based
intercontinental ballistic missiles with the Peacekeeper (M-X) missile; and enhancement of our strategic defenses. Other projects
under development include submarine-launched cruise missiles,
new missile warheads, and anti-satellite systems. Together, these
5-10
THE BUDGET FOR FISCAL YEAR 1984
MISSION CATEGORIES: DEFENSE, MILITARY
(Functional code 051; in billions of dollars)
Budget authority
Major missions and programs
Strategic forces l
General purpose forces
Intelligence and communications
Airlift and sealift
Guard and reserve
Research and development2
Central supply and maintenance
Training, medical, and other general personnel activities..
Administration and associated activities
Support of other nations
Total, budget authority..
Prior-year funds and other financial adjustments..
Total obligational authority
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
15.3
88.1
13.9
4.0
10.4
16.9
21.1
39.6
3.6
0.9
20.6
100.8
17.1
4.2
11.4
18.7
20.2
42.5
3.1
0.8
28.2
109.7
20.8
5.2
11.6
23.5
23.4
45.6
4.8
0.7
34.7
132.4
25.9
13.2
25.5
25.3
51.5
5.4
0.8
35.6
154.3
27.0
7.3
14.5
28.3
27.1
55.5
6.0
0.9
213.8
239.4
273.4
321.6
356.4
274.1
322.4
357.2
-2.4
211.4
6.9
1.1
240.5
1
Excludes strategic systems development included in the research and development category.
2
Excludes research and development in other program areas on systems approved for production.
programs will provide a credible nuclear deterrent for the foreseeable future.
General purpose forces.— General purpose forces, which deter or
counter non-nuclear military aggression, must be able to respond to
the most demanding of potential conflicts—a war between NATO
and the Warsaw Pact—while retaining the flexibility to meet other
threats to U.S. interests. The following active forces will be supported: 16 Army divisions, 3 Marine divisions, 3 Marine air-wings,
26 wings of Air Force tactical aircraft, and 371 general purpose
naval warships, including 13 aircraft carriers and 13 carrier airwings. Continued modernization of equipment is essential in order
to meet the challenges posed by the Soviet threat, with its increasingly modern conventional forces.
The 1984 budget proposes budget authority of $109.7 billion for
general purpose forces, a 9% increase over 1983. This provides for
strengthening our forces—including rapid deployment forces—by
increasing combat readiness and by fielding new and improved
equipment.
Army general purpose forces. Modernization and improvement of
combat readiness require the procurement of new equipment. Emphasis is also being placed on more realistic unit training, including greater participation of rapid deployment force units in servicewide exercises. Additional ammunition and other combat supplies will be acquired so that our forces can better sustain military
operations.
NATIONAL DEFENSE
5-11
Modernization of several systems continues. The procurement of
the M-l Abrams main battle tank and other modern fighting vehicles will greatly improve our armored combat capability. Production of the Black Hawk helicopter will increase combat mobility,
and procurement of the Apache attack helicopter will enable our
forces to engage heavily armored vehicles at longer ranges and in
greater numbers. The budget also includes the Patriot air defense
system which provides more effective protection of vital targets
such as depots, bridges, and airbases. Acquisition of a new division
air defense gun, the Sergeant York, will improve air defense protection for our combat forces. The Pershing II ballistic missile is
being developed and procured as part of NATO's long-range tactical and nuclear force modernization.
In addition to continuing equipment modernization, the budget
provides funds to increase readiness by improving the quality and
tempo of unit training. During 1984 more battalions are scheduled
to participate in training programs at the new National Training
Center at Fort Irwin, California. These improvements in training
will enhance the Army's ability to deploy combat-ready forces to
meet a wide range of threats.
Navy general purpose forces. These forces must provide a deterrent to military aggression both in peacetime and during crises.
Should deterrence fail, they must be able to defend our sea lines of
communication over which critical U.S. reinforcements and resupply must travel to forward theaters. They must also be able to
conduct offensive operations against Soviet naval forces and facilities, if necessary.
The Navy's deployable battle force will increase from 506 ships
in 1983 to 526 in 1984. However, we must also continue to modernize our naval weapons systems and increase our force levels further. The 5-year shipbuilding plan calls for building 124 ships
between 1984 and 1988.
Active naval aviation forces will include 16 tactical air wings (13
Navy and 3 Marine Corps), 24 land-based patrol squadrons, and
various support aircraft. To maintain and modernize these forces
the budget provides funding for continued production of F-14 and
F/A-18 aircraft for the tactical airwings, and the SH-60B helicopter and the P-3C long-range aircraft for anti-submarine warfare.
Air Force general purpose forces. Tactical fighter forces have the
mission of gaining air superiority, providing close air support for
ground forces, and disrupting enemy forces behind the main battle
area. To improve the combat capability of these units, the 1984
budget proposes procurement of additional F-15 and F-16 fighter
aircraft, TR-1 reconnaissance aircraft, and highly accurate, precision-guided tactical bombs and missiles. The ground-launched
5-12
THE BUDGET FOR FISCAL YEAR 1984
cruise missile is being procured as part of NATO's long-range
tactical nuclear force modernization.
The budget supports continued modernization of the tactical
fighter force, providing for 26 active and 12 reserve wings during
1984. Modernization of the U.S.-based air defense force with F-15
aircraft also continues. Improvements to readiness continue to be
made through increased purchases of spare parts, and through
increased flying hours for pilot training.
Airlift and sealift forces,—These forces must be able to deliver
military personnel and combat equipment rapidly to crisis areas
anywhere in the world, as well as the material needed to sustain
combat forces. Readiness will be increased by improvements to
existing transport aircraft, e.g., C-5A aircraft wing replacement,
and procurement of additional spare parts. Rapid deployment capabilities will be increased by acquisition of an updated version of the
C-5 cargo aircraft and more KC-10A tanker/cargo aircraft, modification of SL-7 logistics ships to incorporate roll-on/roll-off capability, and chartering of additional ships to pre-position equipment
and supplies near possible trouble spots.
National Guard and Reserves,—These forces must be ready to
mobilize rapidly in an emergency to augment active duty forces.
Improvements in mobilization readiness are essential. The budget
reflects continued improvement in manning, training, and equipping these forces. Emphasis is being placed on increasing the fulltime active duty military support in Army National Guard and
Reserve units in 1984. Next year will be the National Guard's first
full year of training with its battalion of M-l tanks. The addition
of newer, more combat capable equipment will continue in 1984
with the introduction of the FFG-7 frigate into the Navy Reserve
and the provision of more F-16 fighter and C-130H tactical airlift
aircraft to the Air Guard and Reserve.
Research and development.—This program develops and tests
new and improved weapon systems in response to changing military requirements, while maintaining a strong research and technology base for longer term weapon applications. An increase of
26% in budget authority for research and development is proposed
for 1984, with a continuing emphasis on strategic programs. Major
strategic development efforts, described earlier, include the Peacekeeper and Trident II missiles and the B-1B and advanced technology bombers. Tactical development efforts include a tri-service vertical-lift aircraft, Army remotely piloted vehicles, a Navy advanced
torpedo, and an adverse-weather, ground-attack version of an existing fighter aircraft.
5-13
NATIONAL DEFENSE
Training, medical, and other general personnel activities,—General personnel activities include the provision of training and medical services for active duty personnel, and benefits for retired
military personnel.
Active duty military personnel. A capable, motivated, well-trained
force is essential to military preparedness. The 1984 budget reflects
continued commitment to improved personnel readiness. Efforts to
revitalize the all-volunteer force have been highly successful, and
1982 has been the most impressive year to date. Not only did the
military services achieve or exceed all of their personnel strength
objectives, but they made significant improvements in retaining
SUMMARY OF ACTIVE MILITARY PERSONNEL AND FORCES
(Year end—i.e., as of September 30)
1982
actual
Military personnel (in thousands):
End strength:
Army
Navy
Marine Corps
Air Force
Total, Department of Defense
Average strength:
Army
Navy
Marine Corps
Air Force
Total, Department of Defense.
Strategic forces:
Intercontinental ballistic missiles:
Minuteman
Titan II
Poseidon-Trident
Strategic bomber squadrons
General purpose forces:
Land forces:
Army divisions
Marine Corps divisions
Tactical air forces:
Air Force wings
Navy attack wings
Marine Corps wings
Naval Forces:
Attack and multipurpose carriers
Nuclear attack submarines
Other warships
Amphibious assault ships
Airlift and sealift forces:
C-5A airlift squadrons
Other airlift squadrons
Sealift fleet
380-000 O - 83 - 9 : QL 3
1983
estimate
1984
estimate
780
553
193
583
780
560
195
592
783
572
197
613
2,109
2,127
2,165
785
545
192
579
779
548
194
590
783
563
197
604
2,101
2,111
2,147
1,000 1,000 1,000
52
43
34
544 616 616
25
20
20
16
3
16
3
16
3
26
12
3
26
13
3
26
13
3
13
91
205
59
13
91
200
58
13
93
207
58
4
13
54
4
13
58
4
13
66
5-14
THE BUDGET FOR FISCAL YEAR 1984
experienced personnel and in enlisting high quality recruits. A
decision to propose that there not be an October 1983 military pay
raise was made in the context of similar Government-wide action
being proposed for other pay raises and automatic cost-of-living
adjustments. The budget does contain a contingency fund for 1985
and beyond for military personnel pay and benefits if measures are
necessary to ensure that critical manpower requirements are met.
Military retired pay. Legislation will be proposed to change the
retirement system in order to make military retirement consistent
with other Federal retirement programs. The proposed legislation
would make permanent the current limitation on cost-of-living adjustments (COLA's) for non-disability retirees under age 62, by
allowing one-half the full COLA increase after 1985. Under current
law, the limitation to half of specified COLA percentage increases
expires at the end of fiscal year 1985. The proposed legislation
would also round all benefit amounts to the next lower dollar.
Consistent with Government-wide policy, there would be no cost-ofliving adjustment in 1984.
Under other legislation to be proposed, the defense budget would
reflect the cost of retirement benefits being earned by personnel on
active or reserve duty at the time they are being earned. The
defense budget now reflects only the benefits paid to personnel who
have already retired. This change would improve personnel management by more accurately reflecting true personnel costs.
Tax expenditures.—The exclusion from taxable income of housing
and meals for military personnel, provided either in cash or inkind, results in an estimate of $2.8 billion in 1984. In addition,
disability pensions received by current military retirees are largely
excluded from taxable income, resulting in an estimate of $160
million for 1984. Tax expenditures for national defense total $3
billion in 1984.
Atomic energy defense activities.—These activities include research, development, testing, and production of nuclear weapons;
production of special nuclear materials; storage of nuclear wastes
from defense programs; and design of reactors for nuclear-powered
Navy vessels. They are conducted outside the Defense Department,
in conjunction with the civilian energy program. The accompanying table shows the funding levels for these programs. In total,
budget authority of $6.8 billion is requested for 1984, compared to
$5.7 billion for 1983. Outlays are estimated to increase from $5.5
billion in 1983 to $6.4 billion in 1984.
The nuclear weapons program involves the design, research, development, testing, and production of nuclear warheads for the
nuclear weapons stockpile, including quality control and periodic
inspection of the finished devices. Funding levels proposed for 1983
5-15
NATIONAL DEFENSE
and 1984 provide for increased missile warhead production for
current and new weapon systems. The budget provides for increased production of special nuclear materials for use in nuclear
warheads.
The defense nuclear waste management program provides interim storage for all defense nuclear wastes. The program also supports research to develop permanent storage and isolation of these
wastes.
The naval reactor development program includes the research
and development, design, procurement, and testing of prototype
reactors for current and future naval vessels.
Other atomic energy defense research and development programs involve improved security at defense nuclear facilities, security investigations, and arms control and verification technology
development.
ATOMIC ENERGY DEFENSE ACTIVITIES
(Functional code 053; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984 1985
estimate estimate
estimate
2,944
1,313
359
121
3,326
1,827
418
129
3,925 4,566
2,097 2,713
613
607
143
151
4,808
2,315
680
159
4,737
5,700
6,778
7,962
2,642
1,207
339
121
3,171 3,702 4,231
1,732 1,986 2,417
429
591
628
139
143
149
BUDGET AUTHORITY
Weapons research, development, test, and production..
Weapons materials production and waste management
Naval reactor development
Other research programs
Total, budget authority
8,037
OUTLAYS
Weapons research, development, test, and production..
Weapons materials production and waste management
Naval reactor development
Other research programs
Total, outlays
4,309 5,471
6,422
7,425
4,542
2,331
684
157
7,714
Defense-related activities.— Activities of civilian departments and
agencies that support national defense include emergency management, maintenance of strategic stockpiles, and the Selective Service
System.
Estimated outlays of $339 million in 1984 for the defense-related
functions of the Federal Emergency Management Agency provide
for the Nation's civil defense, mobilization, and other preparedness
programs. The civil defense program establishes and maintains the
Nation's ability to respond effectively to all types of emergencies,
including natural disasters. A multiyear improvement program for
civil defense is proposed. For 1984, the first year cost of this program is estimated at $254 million.
To meet our needs for materials that might be unavailable
during wartime, the General Services Administration stockpiles
5-16
THE BUDGET FOR FISCAL YEAR 1984
strategic and critical materials. Sales and purchases are proposed
in 1984 to adjust the inventory of the stockpile to current requirements. Outlays for purchases are estimated at $120 million in 1984.
The Selective Service System is responsible for maintaining
standby capacity to meet defense personnel requirements during
an emergency national mobilization. The budget includes estimated
outlays of $25 million in 1984 to improve the Selective Service
System's mobilization capability, including continuing national registration and non-registrant prosecution programs to ensure compliance with the law.
Credit budget—Defense production guarantees of $25 million are
disbursed through the Federal Financing Bank. These guarantees
assist private businesses to fulfil defense production contracts.
CREDIT PROGRAMS—NATIONAL DEFENSE
(In millions of dollars)
Estimate
Actual
1982
Direct loans:
National defense programs (loans made by FFB):
New obligations l
Net outlavs
Outstandings
Guaranteed loans:
National defense programs:
Net change
Outstandings
Total credit budget (new obligations)
1983
1984
1986
1985
25
-10
14
-10
4
-3
1
1
1
*
*
2
2
4
6
6
12
5
17
25
*500 thousand or less.
'These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
INTERNATIONAL AFFAIRS
5-17
INTERNATIONAL AFFAIRS
National Needs Statement
The Federal Government is responsible for protecting and advancing the interests of the United States and its people in
international affairs.
The United States seeks a world order characterized by peace,
security and prosperity, in which individuals may enjoy political
and economic freedom. Funds proposed for international affairs in
this budget are necessary for the achievement of U.S. foreign policy
and national defense goals. For 1984, $16.8 billion in budget authority and $13.2 billion in estimated outlays are requested. This compares with 1983 estimates of $17.1 billion in budget authority and
$11.9 in outlays. A number of the programs in this function are
credit programs. For 1984, total new direct loan obligations are
proposed to be $10.9 billion and total new guaranteed loan commitments are proposed to be $10.3 billion.
Foreign aid.—The two subfunctions—international security assistance and foreign economic and financial assistance—comprise
all foreign aid.
International security assistance.—Security assistance programs
are vital instruments of United States national security and foreign policy, serving to strengthen allied and friendly governments
where the United States has special security concerns. Through
these programs, the United States assists other governments in
acquiring, training for, and using modern military equipment necessary for their defense, and supports their economic stability.
Security assistance also relates to U.S. access to military bases and
facilities overseas.
In the face of continuing challenges to U.S. interests and the
economic difficulties in many parts of the world, the budget provides for a substantial increase in security assistance (both economic and military) and an improvement in the financial terms on
which it is provided. Proposed budget authority increases to $4.7
billion for 1984, $183 million above 1983. Budget outlays are estimated to grow from $4.0 billion for 1983 to $4.6 billion for 1984.
Transmitted in this budget and included in these budget amounts
are several supplemental requests for 1983 to meet pressing international commitments, including funds for reconstruction in Lebanon.
5-18
THE BUDGET FOR FISCAL YEAR 1984
Economic support fund.—Through the economic support fund,
the United States makes loans and grants for general budget and
balance of payments support of friendly governments and finances
individual development projects. The proposed budget authority of
$2.9 billion for 1984 for this program includes $468 million for
direct loans and $2.5 billion for grants.
Foreign military sales credit—This program consists of forgiven
loans and loan guarantees to enable foreign governments to purchase U.S. defense equipment, services and training. New obligations in 1984 are estimated to be $5.4 billion, $600 million above
the 1983 level. Forgiven loans, which are included in the budget
totals, will total $1 billion for 1984. The remaining $4.4 billion will
be off-budget loans at interest rates equal to U.S. Treasury borrowing costs plus % of 1% provided through the Federal Financing
Bank and guaranteed by the Department of Defense. Foreign military sales credit outlays of $1.0 billion for 1984 result only from
disbursements on forgiven loans.
Military assistance.—Grant military assistance also finances purchases of defense articles for foreign governments with which the
United States shares foreign policy interests, basing agreements, or
alliance commitments. This program complements the foreign military sales credit program by reducing the financial burden of such
purchases. Additionally, the program covers part of the administrative costs of security assistance programs. These activities will
require $747 million in budget authority for 1984.
Foreign economic and financial assistance.—The general objec-
tives of the foreign economic and financial assistance programs are
to encourage the expansion of a market-oriented international economic system and to help meet the development and humanitarian
needs of developing countries. Budget authority requested for 1984
is $4.9 billion, and outlays are estimated to be $4.5 billion for 1984.
Multilateral development banks.—These include the World Bank
group of institutions and the three regional banks for Latin America, Asia, and Africa. These banks have an especially important
role to play in promoting sound economic policies in recipient
countries. In the aggregate, these institutions lent nearly $18.2
billion during their last completed fiscal years to provide long-term
project and technical assistance. Funds for lending are raised
through direct contributions by developed and some advanced developing countries and through borrowing in world capital markets
backed by callable capital, a guarantee of repayment by developing
country governments. Contributions and callable capital are provided in regular replenishments of capital, which provide for
INTERNATIONAL AFFAIRS
5-19
annual installment payments by donors, generally over 3- to 5-year
periods.
For 1984, proposed budget authority for the banks totals $1.6
billion. About two-thirds of this amount will be used to complete
the sixth replenishment of the International Development Association, the soft-loan affiliate of the World Bank. The 1984 request
also provides for U.S. participation in replenishments of the Asian
and Inter-American Development Banks, although the precise
levels of U.S. contributions are still being negotiated, and the African Development Bank. An additional $2.9 billion is requested for
callable capital contributions to the banks under program limitations.
International organizations.—-The United States voluntarily contributes to United Nations activities and other international organizations and programs that carry out developmental, humanitarian, and scientific activities. Participation in these multilateral
programs complements bilateral assistance in accomplishing U.S.
foreign policy objectives. Nevertheless, U.S. contributions for the
international organizations and programs account will decrease in
1984 from the levels of recent years. While several of these programs make a significant contribution to international humanitarian and development needs, they are assigned a lower priority than
other activities aimed at the same goals. Budget authority of $190
million is proposed.
Agency for International Development (AID).—Bilateral development assistance programs are largely carried out by AID and are
coordinated under the auspices of the International Development
Cooperation Agency. The proposed budget authority of $1.9 billion
for AID for 1984 will promote economic growth in developing countries through projects in such areas as agriculture, population,
health, education, and energy. AID also assists development-related
research carried out by U.S. universities and supports the programs of private and voluntary organizations abroad. The administration's initiatives in the AID program include support of sound
economic policies of recipient countries, increased use of American
and recipient country private sector resources in development, institution building, and promotion of science and technology capabilities in developing countries.
Public Law 480 food aid.—Through concessional loans for food
imports and direct food distribution to the needy, food aid serves a
wide range of policy objectives, including support of security objectives, economic development, export market development, and humanitarian relief. The budget includes a request of $1.1 billion in
budget authority for 1984, an increase of $24 million from 1983.
5-20
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: CONDUCTING INTERNATIONAL RELATIONS
(Functional code 150; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
BUDGET AUTHORITY
Foreign aid:
International security assistance:
Economic support fund
Foreign military sales credit
Military assistance
Other
Offsetting receiDts
2,919
800
179
221
-199
2,956
1,175
457
77
-155
2,949
1,000
747
108
-112
2,949
1,000
747
108
-101
2,949
1,000
747
108
-103
3,919
4,509
4,692
4,702
4,701
Foreign economic and financial assistance:
Multilateral development banks
International organizations
Agency for International Development
Public Law 480 food aid
Peace Corps
Refugee assistance
Other
Offsetting receipts
1,262
215
1,847
1,000
105
423
61
-361
1,537
254
1,797
1,028
109
395
65
-430
1,618
190
1,871
1,052
109
344
148
-466
1,269
190
1,884
1,001
109
326
166
-493
1,215
190
1,894
975
109
327
144
-519
Subtotal, foreign economic and financial
assistance
4,552
4,755
4,868
4,451
4,335
Total, foreign aid
8,471
9,264
9,560
9,153
9,036
1,183
466
43
1,242
519
45
1,392
602
48
1,498
646
48
1,536
664
48
1,693
1,806
2,042
2,191
2,247
583
724
832
996
1,009
3,268
1,424
-80
2,748
2,700
-82
2,457
2,100
-84
2,499
1,650
-85
2,366
1,300
-87
4,612
5,366
4,473
4,064
3,579
-92
— 94
94
-92
-92
16,313
15,780
Subtotal, international security assistance....
Conduct of foreign affairs:
Administration of foreign affairs
International organizations and conferences
Other
Subtotal, conduct of foreign affairs
Foreign information and exchange activities
International financial programs:
Export-Import Bank
Foreign military sales trust fund (net)
Offsetting receiDts
Subtotal, international financial programs
Deductions for offsetting receipts
Total, budget authority
15,267
17,066
16,813
*
5-21
INTERNATIONAL AFFAIRS
NATIONAL NEED: CONDUCTING INTERNATIONAL RELATIONS—Continued
(Functional code 150; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
OUTLAYS
Foreign aid:
International security assistance:
Economic support fund
Foreign military sales credit
Military assistance
Other
Offsetting receipts
Subtotal, international security assistance-
-199
3,107
2,831
880
242
221
-155
4,019
2,944
1,006
490
270
-112
4,598
2,921
998
685
291
-101
4,793
2,903
1,000
772
312
-103
4,884
Foreign economic and financial assistance:
Multilateral development banks
International organizations
Agency for International Development
Public Law 480 food aid
Peace Corps
Refugee assistance
Other
Offsetting receipts
1,063
238
1,524
929
103
382
-22
-361
1,274
205
1,715
1,035
109
401
26
-430
1,407
205
1,773
1,052
108
366
41
-466
1,366
193
1,812
1,001
109
340
49
-493
1,247
196
1,848
975
109
334
59
-519
Subtotal, foreign economic and financial
assistance
3,856
4,335
4,487
4,377
4,248
Total, foreign aid..
6,963
8,354
9,085
9,170
9,132
1,045
544
41
1,145
512
46
1,704
1,492
644
48
2,184
1,541
662
48
1,630
1,352
602
48
2,001
Conduct of foreign affairs:
Administration of foreign affairs
International organizations and conferences
Other
Subtotal, conduct of foreign affairs..
Foreign information and exchange activities
International financial programs:
Export-Import Bank
Special defense acquisition fund
Foreign military sales trust fund (net).
Other
Offsetting receipts
Subtotal, international financial programs
2,299
501
176
330
2,250
1,052
571
704
828
1,173
-204
188
-166
-80
1,192
-196
500
-141
-82
1,433
-147
400
-173
-84
853
-49
300
-177
-85
566
73
200
-174
-87
911
1,272
1,430
841
577
Deductions for offsetting receipts
-92
-94
-94
-92
-92
Total, outlays
9,982
11,939
13,250
12,992
12,920
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Overseas Private Investment Corporation:
Outlays
Foreign military sales credit:
Budget authority
Outlays
Total:
Budget authority
Outlays
-5
-5
-6
-5
2,923
2,288
3,538
2,848
4,869
4,187
4,286
3,495
4,425
3,436
2,923
2,283
3,538
2,843
4,869
4,181
4,286
3,490
4,425
3,431
5-22
THE BUDGET FOR FISCAL YEAR 1984
Assistance will be concentrated on the poorest developing countries
and on countries of major importance to the United States. A
significant portion of direct food donations will be devoted to meeting refugee and emergency relief needs.
Peace Corps,—-The Peace Corps, which was separated from
ACTION during the past year, will continue to complement the
bilateral assistance programs of the United States in more than 50
countries in the developing world. Budget authority of $109 million
is requested for 1984, to provide approximately 5,000 volunteer
service years.
Refugee assistance.—The United States continues to recognize its
international and humanitarian responsiblities toward the amelioration of refugee situations in many parts of the world. The budget
includes $344 million of budget authority in 1984 to provide for the
care of refugees abroad and for the resettlement of up to 72,000
refugees in the United States. Additional assistance to refugees in
the United States is classified in the income security function.
Conduct of foreign affairs.—Diplomatic and consular relations
are conducted with foreign governments and international organizations by the Department of State through nearly 300 missions
and consulates. These activities account for the major portion of
funds needed in this area. In addition, the United States, as a
member of more than 50 international organizations, is assessed its
share of their annual budgets. For 1984, budget authority of $2.0
billion is requested, and outlays are also estimated to be $2.0
billion.
Administration of foreign affairs.—Emphasis continues to be
placed by the Department of State on improving the effectiveness
of foreign service and civil service personnel because of their importance to the development and execution of the foreign policies
of the United States. Automated information systems, buttressed
with improved communications capabilities, are being introduced
and expanded worldwide. Additional officers and staff are proposed
for 1984 to improve political and economic reporting and analysis,
as well as to process a growing number of passport and visa applications. A much-needed capital renewal program will be begun to
improve working space and housing abroad. These enhancements
along with inflationary costs abroad will increase proposed budget
authority from $1.2 billion for 1983 to $1.4 billion for 1984.
Negotiations regarding the future political status of the entities
that make up the Trust Territory of the Pacific Islands have progressed to an advanced stage. When the agreements and all steps
necessary to terminate the trusteeship are completed, appropriations will be sought to carry out the United States obligations set
forth in those agreements.
INTERNATIONAL AFFAIRS
5-23
International organizations and conferences.—The United States
continues to seek improvements in the operations of international
organizations and to encourage these organizations to concentrate
on high priority activities by deleting low-priority and obsolete
activities. Accordingly, the United States will support only those
organizations' budgets that exhibit significant restraint. The
United States believes that organizations should adopt budget policies that provide no net program growth and that show significant
absorption of nondiscretionary cost increases. The $83 million increase in budget authority for 1984 over 1983 largely reflects the
completion of a phased shift in the timing of appropriations for
U.S. assessments for several organizations to a year later than
previous practice.
Foreign information and exchange activities.—These programs
increase understanding of the United States and its policies by
foreign governments and their peoples. For 1984, budget authority
of $832 million is proposed, and outlays are estimated at $828
million, which represent increases of $108 million and $124 million,
respectively, over 1983 levels.
Beginning in 1983, the U.S. Information Agency (USIA) will start
a major, multiyear expansion and modernization of Voice of America transmitting facilities. Necessary development and engineering
work will require $37 million of budget authority for 1983 and $48
million for 1984. Also, USIA will undertake in 1983 a major new
effort to foster the development of democratic values and institutions abroad as the President announced in his June 8, 1982,
speech to members of Parliament in London. A supplemental appropriation of $20 million for 1983 and a budget request of $65
million for 1984 will be largely devoted to aiding American nonprofit institutions to develop mutual contacts with counterpart foreign institutions.
Of the $116 million of budget authority requested in 1984 for the
Board for International Broadcasting, $105 million will maintain
and expand the programming and technical capabilities of Radio
Free Europe/Radio Liberty (RFE/RL) and $10 million will operate
Radio Marti, an effort to provide the Cuban people with accurate
information about Cuban developments at home and abroad. A
supplemental appropriation of $30 million is proposed to improve
RFE/RL and to establish Radio Marti in 1983.
International financial programs.—To support the stable expansion of the international economy, the United States is active in
programs to improve the functioning of the international financial
system and to facilitate U.S. participation in world trade. For 1984,
budget authority is estimated to be $4.5 billion and estimated outlays are $1.4 billion.
5-24
THE BUDGET FOR FISCAL YEAR 1984
Export-Import Bank.—The Bank provides direct loans, loan guarantees, and insurance to facilitate the export of U.S. goods and
services. New direct loan obligations are proposed to be $3.8 billion
for 1984 and proposed commitments for guarantee and insurance
programs are $10.0 billion. The President will seek a supplemental
authorization for direct loan obligations of up to $2.67 billion for
1984 if necessary to meet subsidized foreign officially supported
competition. The Bank will support export financing on a substantial scale and provide support and leadership in the effort to negotiate improved international export credit restraint agreements.
The administration has already achieved significant progress in
such agreements, which have reduced the subsidies previously provided by governments in their export financing. The United States
will press for further progress.
Special defense acquisition fund.—This fund finances the procurement of military equipment in advance of specific orders by
foreign governments. As a result, equipment on order for U.S.
military uses need not be diverted to meet pressing needs of developing countries. Receipts are expected to exceed outlays by $147
million in 1984.
Foreign military sales trust fund.—Most sales of military equipment and services to foreign governments are made by the Federal
Government. Resources in this trust fund come from payments by
foreign governments that have purchased military goods and services from the United States. Outlays occur when payments are
made to suppliers. The total estimated outlays of $400 million for
1984 are the net result of all transactions.
Other.—The International Monetary Fund (IMF) is responsible
for promoting a smoothly functioning international monetary
system. Negotiations are expected to be completed in 1983 on an
increase in the resources of the IMF, including an expansion of
members* quota subscriptions and enlargement of the General Arrangements to Borrow (GAB). The discussions are focusing on a
new overall quota total in a range equivalent to $93-$100 billion
and an expansion of the GAB to $19 billion. Authority and appropriations for the United States share of the increase in resources
will be sought following completion of the negotiations.
Tax expenditures.—A tax expenditure results from the deferral
of taxes on a portion of the profits derived from the incremental
export sales of domestic international sales corporations (DISCs)
and from the exclusion of earned income and excess housing costs
by Americans living and working abroad. The estimate for tax
expenditures resulting from DISCs is $2.0 billion in 1984, while the
5-25
INTERNATIONAL AFFAIRS
CREDIT PROGRAMS—INTERNATIONAL AFFAIRS
(In millions of dollars)
Direct loans:
Foreign military sales credit:
New obligations
Net outlays
Outstandings
Foreign military sales credit (loans made by FFB):
New obligations 1
Net outlays
Outstandings
Economic support fund:
New obligations
Net outlays
Outstandings
Bilateral development credit:
New obligations
Net outlays
Outstandings
Bilateral development credit (loans held by FFB): 2
Net outlays
Outstandings
Public Law 480 food aid:
New obligations
Net outlays
Outstandings
Export-Import Bank:
New obligations
Net outlays
Outstandings
Other international assistance:
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations..
Net outlays
Outstandings
Guaranteed loans:
Foreign military sales credit:
Net change
Outstandings
Bilateral development credit:
New commitments
Net change
Outstandings
Export-Import Bank:
New commitments
Net change
Outstandings
Total, guaranteed loans:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new commitments).
Estimate
Actual
1982
1983
1984
1985
1986
-116
310
1,175
-96
214
1,000
-74
141
1,000
-62
78
1,000
-30
48
3,084 4,163 4,436 4,436 4,436
2,288 2,848 4,187 3,495 3,436
11,436 14,284 18,471 21,965 25,401
366
652
5,204
481
416
5,620
468
420
6,040
718
724
6,764
718
718
7,482
435
412
416
406
406
66
64 -116 -108
100
12,010 12,076 12,140 12,024 11,916
-5
23
-5
18
777
590
8,307
750
531
8,839
-6
12
-5
7
-5
2
768
768
768
548
768
768
9,387 10,155 10,923
3,516 3,830 3,830 3,830 3,830
574
915 1,216
757
763
16,565 17,480 18,696 19,453 20,027
1
96
437
1
126
563
1
160
723
1
184
907
1
202
1,109
8,959
4,367
54,294
10,835
4,800
59,094
10,915
6,516
65,610
11,158
5,744
71,354
11,158
5,555
76,909
-20
257
-20
237
-20
217
217
-1
216
221
169
1,104
270
257
1,362
300
299
1,660
314
386
2,047
321
312
2,359
5,832
-914
6,069
8,000
490
6,559
10,000
510
7,069
10,000
320
7,389
10,000
190
7,579
6,052
-766
7,431
8,270
727
8,158
10,300
789
8,947
10,314
706
9,653
10,321
501
10,155
15,011
19,105
21,215
21,472
21,479
'These are obligations made by the agency to guarantee loans that the FFB will disburse. In effect, they are obligations for off-budget direct
loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency. The totals for foreign
military sales credit loans made by FFB in this table are not identical to the entries in the addendum to the National Needs table for off-budget
Federal
entities due to timing differences between budget authority and new obligations.
2
The direct lending activities of the Overseas Private Investments Corporation are financed by the FFB. Loan assets are issued by the agency.
According to law, these assets are backed by loans that the agency continues to service. The agency guarantees the loan assets sells them to the
FFB, ana repurchases them upon maturity. FFB net outlays for this account represent acquisition of loan assets less repurchases by the agency.
Increases in the volume of sales of loan assets are added to the FFB direct loan outstandings, while the agency's direct loan outstandings decrease
by the amount of loan assets sold to the FFB.
5-26
THE BUDGET FOR FISCAL YEAR 1984
estimate resulting from Americans living abroad is $2.2 billion.
Estimated tax expenditures for international affairs total $4.2 billion in 1984.
Credit programs.—The total volume of new direct loan obligations and new guaranteed loan commitments, which were discussed
above, are shown in the accompanying table. As the table shows,
the total credit budget is proposed to increase in this function by
$2.1 billion between 1983 and 1984, primarily due to increases in
loan guarantee commitments by the Export-Import Bank.
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
5-27
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
National Needs Statement
Federal support for general science and space programs is
necessary to ensure the long-term scientific and technological
strength of the Nation.
The continued growth of scientific knowledge, the development of
new technology, and the training of future scientists and engineers
are critically important to sustained economic growth, enhanced
national security, and an improved quality of life.
Most of the Federal support for science and technology is provided through research and development programs, included in
other budget functions, which serve specific missions such as defense, environmental regulation, energy, and agriculture. In contrast, the programs in this function have the broad goal of helping
to ensure U.S. leadership in science and space technology. Included
are the programs of the National Science Foundation (NSF) and
the space programs of the National Aeronautics and Space Administration (NASA). Also included are the energy-related general science programs currently supported by the Department of Energy.
These latter programs, along with other programs of the Department, will be proposed for reassignment to appropriate executive
departments and agencies. Proposed budget authority for the programs in this function is $8.5 billion in 1984, an increase of 7%
over 1983.
Common to the programs in this function is the support of basic
research, accounting for more than one-third of the total Federal
funding for such research. While departments and agencies in
other functions, such as the Department of Agriculture and the
National Institutes of Health, provide the major share of support
for basic research in the agricultural and life sciences, the programs in this function are the primary source of funding for research in the physical sciences and engineering. In 1984 basic
research under this function will increase by more than 16%, a
somewhat higher rate than for overall Federal support of basic
research. This reflects an emphasis on research having the potential to contribute to the long-term competitiveness of U.S. high
technology dependent industries.
General science and basic research.—The programs of the Nation-
al Science Foundation and the energy-related general science programs in high energy and nuclear physics comprise this part of the
5-28
THE BUDGET FOR FISCAL YEAR 1984
function. Budget authority of $1.9 billion is proposed for these
programs in 1984, a 19% increase over 1983.
NATIONAL NEED: INCREASING BASIC SCIENTIFIC KNOWLEDGE AND USE OF SPACE
(Functional code 250; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
1,006
529
1,099
535
1,297
645
1,297
759
1,297
744
1,535
1,635
1,943
2,057
2,042
3,601
1,392
544
4,109
1,568
610
4,049
1,638
830
3,699
1,819
836
3,058
1,828
816
5,537
6,287
6,517
6,354
5,702
BUDGET AUTHORITY
General science and basic research:
National Science Foundation programs
Energy-related general science programs
Subtotal, general science and basic research
Space research and technology:
Space flight
Space science applications, and technology
Supporting space activities
Subtotal, space research and technology
Deductions for offsetting receipts
Total, budget authority
-10
-9
-9
-9
-9
7,063
7,912
8,451
8,403
7,735
1,099
507
1,066
547
1,231
634
1,320
733
1,339
717
1,607
1,613
1,865
2,053
2,056
3,543
1,457
473
4,034
1,517
604
4,028
1,601
766
3,762
1,768
826
3,193
1,808
822
5,473
6,155
6,395
6,356
5,823
-10
-9
-9
-9
-9
7,070
7,759
8,250
8,401
7,871
146
120
205
175
37
140
-90
-91
OUTLAYS
General science and basic research:
National Science Foundation programs
Energy-related general science programs
Subtotal, general science and basic research
Space research and technology:
Space flight
Space science, applications and technology
Supporting space activities
Subtotal, space research and technology
Deductions for offsetting receipts
Total, outlays
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Supporting space activities:
Budget authority
Outlays
National Science Foundation programs.—The principal mission of
NSF is to support basic research in all science and engineering
fields. The Foundation's programs are particularly important because they complement the support of basic research by agencies in
other functions, such as the Department of Defense and the National Institutes of Health, and help to ensure balanced support for
such research across the major scientific disciplines.
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
5-29
The 1984 budget includes $1.3 billion in proposed budget authority for NSF, 18% above 1983. This increase will enhance the support of basic research in all disciplines, particularly in the physical
sciences and engineering, at academic institutions. Such investments will help to ensure adequate numbers of high-quality scientists and engineers who are essential to continued U.S. leadership,
particularly in defense and in high technology dependent industries. The proposed increase places special emphasis on upgrading
research instrumentation at universities to ensure that research
will be of the highest quality and that future scientists and engineers will be trained using the latest equipment.
The budget also includes funds for joint efforts with State and
local governments and the private sector to improve the teaching
of science and mathematics in the Nation's secondary schools. Additional initiatives to alleviate the shortage of qualified mathematics and science teachers are included in the Education, Training,
Employment, and Social Services function. In addition, an increase
is provided for the U.S. Antarctic program, managed by NSF, to
support basic research and to maintain an active and influential
scientific presence in that region.
Energy-related general science programs.—Budget authority of
$0.6 billion is requested for support of basic research in high
energy and nuclear physics in 1984, $0.1 billion above 1983. The
goal of the high energy and nuclear physics programs is to achieve
a comprehensive understanding of the basic constituents of matter
and energy and the forces that govern their interaction. The increase provides for greater use of existing accelerators, for continued research on improved particle detector components and concepts, and for upgrading accelerator facilities at the University of
Washington and Yale University. It also provides funds to initiate
construction of the Stanford Linear Collider, scheduled for completion by 1987. This accelerator will demonstrate the feasibility of
new techniques for very high energy electron-positron collisions.
Funds are also provided to continue construction of the Tevatron I
and II projects at Fermilab that will extend the energy range of
proton-antiproton collision research.
Space research and technology.—This part of the function covers
the space-related activities of NASA. The administration is committed to making the Space Shuttle fully operational and cost
effective in providing routine access to space. In addition, a vigorous program of space science, applications, and technology development is planned. Budget authority of $6.5 billion is proposed for
these programs in 1984, a 4% increase over 1983.
380-000 0 - 83 - 10 : QL 3
5-30
THE BUDGET FOR FISCAL YEAR 1984
Space flight—The space flight programs of NASA are intended
to help sustain and improve the Nation's ability to supply space
transportation services. These programs include the development,
production, and operation of the four orbiter Space Shuttle fleet;
research activities using the Shuttle-borne Spacelab; development
and procurement of the upper stage vehicles to carry Shuttlelaunched payloads into high-Earth orbit; and cooperative projects
with other nations.
Space Shuttle operations began in November 1982 with the
launch of two commercial spacecraft. Depending on demand, as
many as nine Shuttle flights are planned in 1984.
Budget authority of $4.0 billion is proposed for the space flight
program in 1984. New activities for 1984 include the expanded
purchase of additional support equipment and spare orbiter structural components to help ensure the reliable and cost-effective
operation of the currently planned four orbiter fleet. These new
activities are made possible by decreased costs for ongoing projects
and increased revenues from Shuttle flights.
Space science, applications, and technology.—This category includes support for studies of the solar system and the universe;
studies in remote sensing of the Earth's resources and environment; development of advanced satellite communications technology; and research on materials processing in space. Budget authority of $1.6 billion is proposed for 1984, a 4% increase over 1983.
In space science, funds are proposed to initiate the Venus radar
mapper project, scheduled for a 1988 launch. The cloud-penetrating
radar of the Venus mapper spacecraft will enable us to map the
planet, improving our understanding of its evolution and, consequently, that of the Earth and the solar system. A new Explorerclass satellite project will also be initiated which will enhance
research in ultraviolet astronomy.
Continued development of major ongoing projects is also planned.
The space telescope program will place an optical telescope in orbit
around the Earth in 1985, allowing the observation of distant objects unobstructed by the Earth's atmosphere and clouds. The
Gamma Ray Observatory, scheduled to be launched in late 1988,
will allow the investigation of objects and phenomena in deep space
through study of the gamma ray region of the electromagnetic
spectrum. The Galileo project, scheduled to be launched in 1986,
will explore Jupiter and its moons. Funds are also included to
support research and analytical activities, including the collection
and analysis of data from the Voyager spacecraft now on its way to
Uranus.
Within space applications, planned activities will focus on space
technology to study the Earth, the oceans, and the atmosphere;
satellite communications technology; and research on materials
5-31
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
processing in space. The 1984 program will continue development
of ongoing major projects, including the Earth Radiation Budget
Experiment (ERBE) satellite and the Advanced Communications
Technology Satellite (ACTS).
The ERBE satellite will be launched by the Shuttle in 1984. The
program is designed to provide global measurements of the level of
solar and cosmic radiation absorbed by the Earth, and map levels
of ozone and other aerosols in the stratosphere. Such observations
will help improve our understanding of the factors that determine
the Earth's climate. The ACTS mission will be a cooperative
project between Government and industry to advance satellite communications technology for use later in the decade.
Basic space research and technology programs are broadly applicable to all major space activities. Proposed funding in 1984 will
ensure a sound scientific foundation for the space program through
strong support in areas such as propulsion, electronics, and materials.
Supporting space activities.—Budget authority of $0.8 billion is
proposed for spacecraft tracking, data gathering, and processing
support for the entire space program, an increase of 36% over 1983.
Nearly all the increase is for the lease of the new Tracking and
Data Relay Satellite System (TDRSS), including revised leasing
arrangements that will permit more flexibility and control over its
operation. The TDRSS will provide expanded capability to communicate with the Space Shuttle and other spacecraft, and is expected
to replace much of the existing worldwide network of ground tracking stations.
Credit programs.—The credit table reflects the current and proposed 1984 levels for direct loans made by the Federal Financing
Bank for the construction and acquisition of the TDRSS. Additional
loans in 1984 for this system are expected to be $37 million.
CREDIT PROGRAMS—GENERAL SCIENCE, SPACE AND TECHNOLOGY
(In millions of dollars
Actual
1982
Direct loans:
NASA satellite leases (loans made by FFB):
New obligations1
Net outlays
Outstandings
Total credit budget (new obligations)
Estimate
1983
1984
146
120
758
205
175
933
37
-140
793
146
205
37
1985
-90
703
1986
91
612
'These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
5-32
THE BUDGET FOR FISCAL YEAR 1984
Tax expenditures.—In addition to direct Federal funding of basic
research, the tax code encourages private sector research and development, including basic research, by allowing expenditures for
such purposes to be deducted as a current expense. The 1984 estimate for this provision is —$1.1 billion. The "negative" tax expenditure is a short-term accounting anomaly that results from the way
tax expenditures are calculated. It is expected to turn positive in
1988. A 25% tax credit is also available to encourage certain basic
research and development expenditures; the estimate for this tax
credit is $1.2 billion in 1984. Tax expenditures for general science,
space, and technology are estimated to total $120 million in 1984.
ENERGY
5-33
ENERGY
National Needs Statement
The Nation needs to let market forces work to encourage efficient energy production and use. The Federal Government
should limit its role to such responsibilities as support for longterm research and the strategic petroleum reserve.
The main responsibility of the Federal Government with respect
to energy is to establish and maintain sound, stable public policies
based on economic principles that encourage economically efficient
energy production and use. This strategy recognizes that the private sector makes most of the key decisions about using and producing energy in this country. Thus it emphasizes the importance
of letting market forces work to ensure that these decisions are
made in a productive and efficient way. A productive approach to
energy does not require massive Federal spending.
The Federal Government has limited, but important, responsibilities in energy and this budget focuses on meeting those responsibilities. These include adopting and enforcing sensible and effective
nuclear safety regulations; providing for a strategic petroleum reserve; continuing current energy production activities; and supporting long-term research and development.
The budget proposes $2.9 billion in budget authority in 1984 for
programs included in this function, a 23% reduction from 1983
levels. The reduction results largely from removing the Federal
Government from activities, especially in technology development
and demonstration, that are better undertaken and financed by the
private sector. Outlays are estimated to be $3.3 billion in 1984, a
27% reduction from 1983 levels. Off-budget outlays, including oil
for the strategic petroleum reserve, are expected to be $7.1 billion
in 1984.
In 1983, Federal energy activities currently performed by the
Department of Energy will be proposed for reassignment to appropriate executive departments and agencies. Enabling legislation
will be proposed to the Congress to carry out these changes.
Energy supply.—Included in this category are the Federal Government's activities in energy supply research and development,
direct energy production programs, and incentives for industry
investment in synthetic fuels production.
5-34
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: ENERGY
(Functional code 270; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Energy supply:
Research and development
Direct production (net):
Uranium enrichment
Petroleum reserves
Power marketing
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
2,069
2,277
2,400
84
-1,045 -1,447 -1,020
279
942
1,265
932
862
-926
775
2,764
2,573
2,083
2,391
1,992
2,206
2,249
Energy conservation
168
288
74
70
67
Emergency energy preparedness
191
242
159
177
145
Energy information, policy, and regulation
889
882
725
724
714
-71
-78
-81
-81
-81
3,261
3,725
2,869
3,097
3,094
Subtotal, energy supply
Deductions for offsetting receipts
Total, budget authority
A key aspect of Federal spending for energy research and development is the support of long-term, generic research to provide a
scientific base for the development of future energy technologies by
the private sector. Support is also included in the budget for the
continued development and demonstration of selected high-risk,
but potentially high-payoff energy technologies, such as fusion
power, which the private sector is not able to invest in significantly. Estimated outlays for energy supply research and development
decrease from $3.0 billion in 1983 to $2.4 billion in 1984, the net
result of increases in basic energy research and decreases in shortterm research and development and in demonstration programs.
An important element of the Federal energy research program is
support for basic energy sciences. The 1984 budget includes $0.3
billion in outlays for this purpose, an increase of more than 20%
over the 1983 level. This program helps fund research at major
universities and national laboratories in the physical sciences, engineering, and in the geosciences. Such research forms the essential
base of knowledge needed for tomorrow's development of a wide
spectrum of energy technologies.
Outlays for fossil, solar, geothermal and other non-nuclear technology programs are expected to decrease from $1.2 billion in 1983
to $0.9 billion in 1984. This decrease reflects the continued phasedown in Federal spending on technology demonstration activities
that can be financed and managed more appropriately and effectively by private industry. In fossil energy, the budget includes an
estimated $0.3 billion in outlays for continued research to strengthen the technical base and to support small-scale development of
5-35
ENERGY
NATIONAL NEED: ENERGY—Continued
(Functional code 270; in millions of dollars)
Major missions and programs
OUTLAYS
Energy supply:
Research and development
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
3,295
2,953
2,409
2,368
2,408
-473
-951
1,227
52
32
-1,383
1,101
50
40
-1,017
590
69
-964
305
25
60
-928
419
27
3,150
2,752
2,090
1,734
1,986
Energy conservation..
518
670
343
104
68
Emergency energy preparedness
191
284
228
176
140
878
726
724
714
-71
-78
-81
-81
-81
4,674
4,506
3,306
2,657
2,827
12
27
67
96
236
3,684
3,687
2,074
1,771
583
1,866
1,388
1,392
1,465
1,420
4,608
4,467
5,918
5,910
5,075
5,056
5,216
5,182
4,494
4,446
4,513
336
5,412
193
6,258
181
6,790
116
7,217
86
-10
-10
13,489
6,679
13,413
5,943
Direct production (net):
Uranium enrichment
Petroleum reserves
Power marketing
Subsidies for non-conventional fuel production.
Subtotal, energy supply
Energy information, policy, and regulation.
Deductions for offsetting receipts
Total, outlays
ADDENDUM
Off-budget Federal entities:
Synthetic Fuels Corporation:
Budget authority
Outlays
Strategic Petroleum Reserve:
Budget authority
Outlays
Federal Financing Bank:
Rural electrification and telephone revolving fund:
Budget authority
Outlays
Tennessee Valley Authority (power program):
Budget authority
Outlays
Alternative fuels production-.
Budget authority
Outlays
Other energy:
Budget authority
Outlays
Total:
Budget authority
Outlays
842
340
20
18
13,681
8,847
13,433
7,874
11,983
7,103
advanced technologies for extracting and using fossil fuels. The
budget also includes an estimated $0.2 billion of outlays for solar
research and development, including continued work on such longterm programs as photovoltaics research. It also provides in 1984 a
proposed budget authority increase of 18% over 1983 for acid rain
research to fill the major gaps in basic scientific information on
this issue. The continued acceleration of this program should begin
to provide reliable results as early as 1985.
5-36
THE BUDGET FOR FISCAL YEAR 1984
Outlays for research and development related to nuclear energy
are estimated to be $1.4 billion in 1984. The two major programs
included in these totals are magnetic fusion and breeder technology research. Both of these promising technologies are still at a
stage where only limited industry investment can be expected.
Outlays for magnetic fusion are estimated to be $0.5 billion in 1984,
approximately equal to the 1983 level. Outlays for the total breeder
reactor program are estimated to be $0.7 billion in 1984, nearly the
same amount as in 1983, including $0.3 billion in 1984 for the
Clinch River breeder reactor demonstration.
The budget also includes an estimated $0.3 billion in outlays in
1984 for work on the permanent disposal of commercial nuclear
waste. This program will be financed by a fee on utilities. It is
designed to end the taxpayer subsidy of nuclear waste disposal and
to help eliminate such disposal as a constraint on the industry's
development.
The Federal Government's direct production activities include
enriching uranium for commercial nuclear power plants and for
defense programs; producing oil and gas at the naval petroleum
reserves; and generating and transmitting electric power.
The uranium enrichment program is expected to realize sales
receipts of $2.2 billion in 1984. These receipts are estimated to
almost match 1984 spending for the uranium enrichment operation.
Sales receipts for oil and gas produced at the naval petroleum
reserves in California and Wyoming are estimated to be $1.6 billion
in 1984, $1.0 billion more than the outlays associated with this
program.
The Tennessee Valley Authority and the five power marketing
administrations will continue their basic mission of selling wholesale electricity generated principally by Federal hydroelectric projects throughout the Nation. In addition, both TV A and the Bonneville Power Administration will continue to meet their mandatory
responsibility to ensure that the electric power needs of their regions are met through electrical generation and conservation programs. In 1984, net outlays for the Tennessee Valley Authority
power program are estimated to be $0.9 billion, while net receipts
for the five power marketing administrations are estimated at $0.3
billion. Reductions in outlays for these programs in 1984 from 1983
levels are due primarily to changed construction schedules for
major electric power facilities.
The Synthetic Fuels Corporation provides subsidies for synthetic
and other nonconventional fuel production, including price, purchase and loan guarantees, intended to accelerate the development
of commercial-scale synthetic fuel plants. The Corporation plans to
issue loan and price guarantees totaling $6.0 billion in 1983 and
ENERGY
5-37
$7.2 billion in 1984. The immediate budget impact of this activity is
expected to be $50 million in outlays in 1983 and $69 million in
1984. Depending on such factors as conditions in the world oil
market and the precise terms of the subsidies agreed to, outlays
resulting from this activity may increase significantly, up to the
full amount of the loan and price guarantees.
Energy conservation.—The most effective way to promote the
efficient use of energy and other resources is to let market forces
work. This is demonstrated by the fact that the U.S. economy today
is using 18% less energy to produce a dollar's worth of output than
it did in 1973 when energy prices first began to rise. There is an
appropriate, but limited, Federal role in energy conservation in the
support of long-range research and development. This includes research to improve the efficient use of energy in industrial processes, buildings, and transportation, to complement the work done in
these areas by private industry. Outlays in the 1984 budget are
estimated to be $146 million for these activities. In addition, outlays of $197 million are estimated in 1984 from spending the balances in several State and local energy conservation grant programs being proposed for elimination. The needs of low-income
households in adjusting to higher energy prices can be met through
other programs such as the low-income home energy assistance
program in the Department of Health and Human Services.
Emergency energy preparedness.— Administration policy is to rely
on market forces, rather than Government allocation and price
controls, to deal with possible oil supply disruptions. The country
has tried Government allocation of fuel during supply disruptions,
but that option failed miserably and simply led to long and needless gasoline lines. The market approach has been tested during
past disruptions in other countries, and it has worked reasonably
well.
The Government, however, can augment the market by developing a strategic petroleum reserve for use during severe disruptions.
The strategic petroleum reserve will contain 357 million barrels by
the end of 1983 and thus provide protection against a wide range of
supply disruptions. Having achieved this level of protection, the
administration plans to fill the reserve in 1984 at a rate of 145,000
barrel per day—an ambitious, but more modest rate than in 1983.
Off-budget outlays for oil acquisition are estimated at $1.9 billion
in 1984. The revised development schedule will result in 410 million barrels in storage by the end of 1984.
Outlays for further construction of storage facilities, which are
included in the budget totals, are estimated to be $284 million in
1983 and $228 million in 1984.
5-38
THE BUDGET FOR FISCAL YEAR 1984
Energy information, policy, and regulation.—Outlays for energy
information, policy analysis and regulation are expected to decrease from $0.9 billion in 1983 to $0.7 billion in 1984, reflecting
less need for Federal involvement in energy markets.
Within this total, estimated outlays of $0.5 billion for 1984 are
included to support the Nuclear Regulatory Commission's efforts to
regulate the nuclear power industry effectively and efficiently. The
balance covers programs now under the Department of Energy,
including the Federal Energy Regulatory Commission. The budget
provides approximately $0.3 billion in 1984, down from $0.4 billion
in 1983, for continuation of regulatory and energy information
activities, along with funds for overall agency management.
Credit programs.—The accompanying table summarizes Federal
credit activities in the energy function. Total credit budget activity
in this function decreases by $1.0 billion between 1983 and 1984
primarily due to proposed policy reductions in the programs of the
Rural Electrification Administration (REA) which are described
below. The Federal Financing Bank (FFB) finances a substantial
amount of credit activity in this function as off-budget direct loans.
The FFB will provide continued support to the Tennessee Valley
Authority (TVA), REA, and other programs in 1984.
TVA is a Government-owned corporation that leases nuclear fuel
from the Seven States Energy Corporation. The Corporation borrows from the FFB to finance its purchases, with TVA as the
guarantor through long-term contractual agreements. The administration proposes that $5.4 billion in 1983 and $6.3 billion in 1984 in
direct loans will be financed through the FFB.
Limitations will be proposed for REA direct loan obligations and
new guaranteed loan commitments for 1984 as part of the administration's Federal credit budget. REA provides loans directly to
eligible rural electric and telephone systems for expansion and
maintenance of operations. REA also guarantees loans which are
made by the FFB and private lenders for eligible rural electric
power suppliers and eligible telephone systems.
Tax expenditures.—Ho encourage energy exploration and production, the tax code permits certain capital costs to be deducted as
current expenses rather than amortized over the useful life of the
property. In addition, extractive industries are generally permitted
to use percentage depletion rather than cost depletion. The estimates of expensing exploration and development costs and the use
of percentage depletion are $1.8 billion and $3.0 billion, respectively, in 1984.
A variety of residential tax incentives stimulate energy conservation and encourage conversion to energy sources other than oil or
natural gas. The estimates for these residential energy provisions
5-39
ENERGY
CREDIT PROGRAMS—ENERGY
(In millions of dollars)
Actual
1982
Estimate
1983
1984
1985
1986
Direct loans:
Alternative fuels production (loans made by the FFB): 1
Net outlays
340
340
Outstandings
340
340
340
340
Geothermal and other:
4
New obligations
40
44
40
46
4
Net outlays
39
42
38
43
13
53
132
Outstandings
90
175
Geothermal and other (loans made by the FFB). 1
Net outlays
18
-10
-10
37
27
17
Outstandings
37
37
Tennessee Valley Authority:
134
76
89
New obligations
99
123
68
56
Net outlays
62
55
35
Outstandings
263
319
437
471
375
Tennessee Valley Authority (loans made by the FFB):
New obligations l
4,513 5,412 6,258 6,790 7,217
Net outlays
193
336
181
116
86
Outstandings
1,258 1,451 1,632 1,749 1,835
Rural electrification and telephone revolving fund:
New obligations 2
1,099 1,101
575
575
575
Net outlays
88
130
59 -106 -204
Outstandings
9,774 9,861 9,920 9,814 9,611
Rural electrification and telephone revolving fund (loans
held by FFB): 2
480
528
565
465
Net outlays
3,124 3,689 4,154 4,634 5,122
Outstandings
Rural electrification and telephone revolving fund (loans
made by the FFB):*
4,712 4,645 3,260 3,260 3,260
New obligations
3,939 5,345 4,591 4,702 3,958
Net outlays
16,282 21,627 26,217 30,924 34,882
Outstandings
Total, direct loans:
New obligations..
10,405 11,287 10,232 10,803 11,221
Net outlays
5,363 6,287 5,389 5,285 4,397
Outstandings
31,090 37,377 42,766 48,056 52,453
Guaranteed loans:
Alternative fuels production:
Net change
Outstandings
Biomass energy development:
New commitments
Net change
Outstandings
447
1,680
Geothermal and other:
New commitments..
Net change
Outstandings
Rural electrification and telephone revolving fund:
New commitments
Net change
Outstandings
400
115
720
1,680
1,680
1,680
1,680
686
686
686
686
686
153
54
153
172
272
425
27
452
25
477
100
99
819
100
99
918
100
-360
552
100
553
5-40
THE BUDGET FOR FISCAL YEAR 1984
CREDIT PROGRAMS—ENERGY—Continued
(In millions of dollars)
Total, guaranteed loans.New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
Estimate
Actual
1982
1983
1984
1985
1986
400
539
2,499
253
839
3,338
272
371
3,709
100
-333
3,370
100
25
3,396
10,806
11,541
10,504
10,903
11,321
*$500,000
or less.
1
These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct
loans,
and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
2
The direct lending activities of the Rural Electrification Administration are financed by the Federal Financing Bank (FFB). Certificates of
beneficial ownership (CBO's) are issued by the REA. According to law, these certificates are backed by loans that the agency continues to
service. REA guarantees the CBO's, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for REA represent acquisition of
CBO's less repurchases by REA. Increases in the volume of sales of CBO's are added to FFB direct loan outstandings, while the REA direct loan
outstandings decrease by the amount of CBO's sold to the FFB.
are $690 million and $390 million, respectively, in 1984.
Business investments in specified energy property are also eligible for special tax credits, in addition to the normally available
investment tax credit. The estimates for these alternative, conservation and new technology credits are $355 million in 1984.
Tax expenditures for energy exploration, production and conservation total $4.2 billion in 1984.
NATURAL RESOURCES AND ENVIRONMENT
5-41
NATURAL RESOURCES AND ENVIRONMENT
National Needs Statement
The Federal Government ensures responsible management and
conservation of natural resources held in common—air, water,
and public lands.
Natural resources and environment programs manage public
lands and resources for their preservation, conservation, and economic development; work with State governments to ensure a
clean environment; and encourage increased knowledge and understanding of the environment.
Pollution control and abatement—Efforts to control pollution of
air, water, and land are carried out through direct Federal programs and through financial assistance to State and local governments.
Regulatory, enforcement and research programs.—Proposed
budget authority in 1984 for the Environmental Protection Agency's (EPA) non-energy related operating programs is $929 million.
This funding level reflects EPA's continued emphasis on increasing
management efficiencies and accelerating delegation of environmental programs to the States. A new user fee program for ocean
dumping activities will be initiated in 1984.
Research will be focused on problems that must be resolved to
develop regulations within statutory deadlines, and on projects of
significant environmental concern. The Government-wide acid rain
research effort will be further accelerated by increasing budget
authority by 18% to $28 million in 1984.
Hazardous substance response fund.—The hazardous substance
response trust fund provides money for cleaning up abandoned
hazardous waste sites and for responding to hazardous chemical
spills. Budget authority for this program in 1984 will increase 43%
over 1983, reflecting EPA's progress in implementing the "superfund" program.
Sewage treatment plant grants.—The $300 million decrease in
outlays from 1983 to 1984 reflects completion of expenditures from
grants approved before 1982. The budget proposes $2.4 billion in
budget authority in recognition of the 1982 enactment of program
reforms that will concentrate funds on solving currently existing
pollution problems. Because of the high degree of expertise attained in this field by State and local governments and the extent
5-42
THE BUDGET FOR FISCAL YEAR 1984
to which authority has already been delegated to them, this program is included in the new federalism initiative.
NATIONAL NEED: USING AND PRESERVING NATURAL RESOURCES AND PROTECTING THE
ENVIRONMENT
(Functional code 300; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
BUDGET AUTHORITY
Pollution control and abatement:
Regulatory, enforcement and research programs:
Existing law
Proposed legislation
Hazardous substance response fund
Oil pollution fund
Sewage treatment plant construction grants
Subtotal, pollution control and abatement....
Water resources:
Construction, operations, and maintenance, etc..
Proposed legislation (navigation user fees)
Subtotal, water resources
Conservation and land management:
Management of national forests, cooperative forestry and
forestry research
Management of public lands
Mining reclamation and enforcement
Conservation of agricultural lands
Other
Offsetting receipts:
Existing law
Proposed legislation
Subtotal, conservation and land management..
Recreational resources:
Federal land acquisition 1
Urban park and historic preservation funds
Operation of recreational resources:
Existing law
Proposed legislation (user fees)
Subtotal, recreational resources
Other natural resources
Deductions for offsetting receipts
Total, budget authority
1
1,045
1,019
188
12
2,400
201
3
2,430
929
13
287
3
2,400
930
13
331
3
2,400
930
13
351
3
2,400
3,645
3,653
3,631
3,676
3r696
3,998
3,957
3,689
-438
3,944
-461
4,131
-544
3,998
3,957
3,251
3,483
3,587
1,723
506
174
570
101
1,990
466
222
589
315
1,587
431
282
413
255
1,724
447
298
413
262
1,773
455
329
413
270
-510
-735
-914
-25
-951
-25
-1,045
-25
2,565
2,848
2,028
2,169
2,170
176
33
257
26
65
68
70
1,052
1,122
1,150
-13
1,201
-12
1,240
-10
1,262
1,405
1,202
1,257
1,301
1,590
1,503
-1,860 -2,131
1,380
-2,586
1,425
-3,060
1,454
-3,504
11,234
8,906
8,950
8,703
11,199
Includes budget authority from State outdoor recreation grants financed by the land and water conservation fund.
5-43
NATURAL RESOURCES AND ENVIRONMENT
NATIONAL NEED: USING AND PRESERVING NATURAL RESOURCES AND PROTECTING THE
ENVIRONMENT—Continued
(Functional code 300; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985 1986
estimate
estimate
1,172
1,059
77
7
3,756
168
3
3,100
1,003
6
246
3
2,800
963
9
319
3
2,700
936
11
357
3
2,525
5,012
4,330
4,058
3,994
3,832
4,032
3,955
3,743
-438
3,942
-461
4,126
-544
4,032
3,955
3,305
3,481
3,582
1,932
467
119
576
163
1,936
449
141
591
303
1,653
411
180
564
284
1,744
426
211
443
280
1,758
433
232
434
276
-510
-735
-914
-25
-951
-25
-1,045
-25
2,746
2,685
2,153
2,127
2,063
349
69
384
61
287
44
158
21
97
2
1,059
1,231
1,141
-13
1,196
-12
1,230
-10
1,477
1,677
1,459
1,362
1,319
1,526
1,572
1,442
1,444
1,447
OUTLAYS
Pollution control and abatement:
Regulatory, enforcement and research programs:
Existing law
Proposed legislation
Hazardous substance response fund
Oil pollution fund
Sewage treatment plant construction grants
Subtotal, pollution control and abatement....
Water resources:
Construction, operations, and maintenance, etc..
Proposed legislation (navigation user fees)
Subtotal, water resources
Conservation and land management:
Management of national forests, cooperative forestry and
forestry research
Management of public lands
Mining reclamation and enforcement
Conservation of agricultural lands
Other
Offsetting receipts:
Existing law
Proposed legislation
Subtotal, conservation and land management..
Recreational resources:
Federal land acquisition 1
Urban park and historic preservation funds..
Operation of recreational resources:
Existing law
Proposed legislation (user fees)
Subtotal, recreational resources
Other natural resources
Deductions for offsetting receipts.
Total, outlays
1
-1,860 -2,131
12,934
12,087
-2,586 -3,060 -3,504
9,832
9,348
8,739
Includes outlays from State outdoor recreation grants financed by the land and water conservation fund.
Water resources.—Most of the funds for water resources are for
continued construction of projects started in previous years. Despite the reduction in 1984 of $275 million in outlays for Army
Corps of Engineers construction, practically all ongoing projects
will continue on schedule. The budget reflects the fact that many
projects are nearing completion.
Five new construction starts are included in the budget of the
Corps of Engineers. First-year outlays for these projects are $8
5-44
THE BUDGET FOR FISCAL YEAR 1984
million and total Federal cost will be $88 million. A substantial
portion of the cost of each new project will be borne by non-Federal
project sponsors.
Construction outlays of $695 million for the Bureau of Reclamation represent a 20% increase over the 1983 estimate, mainly due
to outlays for contracts made in previous years.
The budget includes increased receipts from three user fee proposals. The administration will submit legislation to recover capital
and operating expenses of deep draft and inland waterway projects,
and to permit charging fees at Corps of Engineers recreation facilities.
Conservation and land management—Changes in these programs
reflect the administration's efforts to improve the management and
productivity of the national forests and public lands, to streamline
mineral leasing programs, and to place maximum responsibility
with the States for coal surface mining regulatory and reclamation
programs.
Management of national forests, cooperative forestry, and forestry
research.—Proposed budget authority in 1984 for direct management of national forests is $96 million less than in 1983, after
adjusting for variations in funds for fighting forest fires, and for
changes in financing due to initiation of the reforestation trust
fund in 1983.
The administration proposes to continue efforts to improve the
productivity of national forest management by carefully controlling
costs, adjusting management procedures, and paying close attention to benefit-cost relationships. Proposals are directed at producing timber, recreation, and other outputs at the lowest unit costs.
Careful attention will be given to both market values of resources
and non-market values, such as water quality, and their associated
costs.
Timber sales in 1984 of 11.6 billion board feet (BBF), together
with the 37.9 BBF uncut volume under contract at the end of 1983,
should be adequate to respond to anticipated substantial increases
in housing construction by 1984 and subsequent years. The budget
provides flexibility to further increase sales in future years if necessary through advance work on sale preparation and road construction.
Within a 1984 forestry research level of $101 million of budget
authority, efforts will continue to address high-priority projects
while reducing Federal funding for research projects that directly
support industry.
Budget authority for cooperative forestry programs will be reduced to $25 million in 1984 from $63 million in 1983. Significant
reform is proposed for these programs. General grants to States for
NATURAL RESOURCES AND ENVIRONMENT
5-45
fire protection and technical assistance in forest management will
not be funded in 1984. Funding, however, will be retained to provide for national data collection, information dissemination, and
limited but specialized technical assistance to States on national
problems.
Management of public lands,—These programs provide for administration of approximately 310 million surface acres of public
lands for multiple use and about 370 million acres of federally
owned subsurface mineral rights.
Budget authority decreases in 1984 by $12 million for the administration of the Outer Continental Shelf oil and gas leasing program, due in part to simplified procedures. Leasing programs to
develop tar sands and oil shale are underway. Streamlined leasing
procedures allow about a $3 million reduction for coal leasing while
completing five sales in 1984.
Gross sales of unneeded public lands are estimated to yield about
$300 million in 1984 (included in the undistributed offsetting receipts function). Proceeds will be dedicated to retiring part of the
national debt.
Mining reclamation and enforcement—The 1984 budget includes
budget authority of $232 million for grants to States to regulate
surface coal mining and reclaim abandoned mined lands. Budget
authority for grants to States for reclamation of abandoned strip
mined lands increases by $61 million in 1984, because all coal
mining States will have met eligibility requirements to receive
Federal grants and their reclamation programs will be fully implemented.
Conservation of agricultural lands.—Budget authority for these
programs declines 30% in 1984. Technical and financial assistance
for soil and water conservation will concentrate on high priority
soil and water resource problems. Major emphasis is given to a
greater role for private landowners and State and local governments in establishing soil and water conservation practices on nonFederal lands.
Recreational resources.—The administration's policy is to improve and maintain existing nationally significant recreation resources such as national parks and wildlife refuges, rather than
expand the Federal estate. Grants to States for acquisition of local
recreation lands and facilities and for historic preservation are not
funded in 1984, given the relatively low necessity for recreation
expenditures in a stringent budget year and the tax incentives now
applicable to historic preservation.
The administration again proposes to increase fees for recreational use of national parks, forests, and related facilities, so that
380-000 0 - 83 - 11 : QL 3
5-46
THE BUDGET FOR FISCAL YEAR 1984
those who use them will pay more for their upkeep and maintenance than the general taxpayer who does not use them. Increased
receipts for 1984 are estimated to be about $75 million.
Federal land acquisition.—Federal agencies are budgeted to pay
only for outstanding court awards for recreational land where the
prior administration already had begun the purchase process.
Operation of recreational resources.—An important administration initiative in the operation of recreational resources is a 5-year
effort to improve maintenance and to ensure the quality and accessibility of the national parks to all Americans. The budget proposes
$253 million in budget authority for construction and repair of the
national park system, including $153 million for the administration's park restoration and improvement program in the Department of the Interior and $100 million for park road improvements
in the new Federal lands highways program in the Department of
Transportation. Total budget authority to operate and maintain
the 333 parks, covering 74 million acres, of the National Park
System is proposed at $595 million.
The Fish and Wildlife Service requests $476 million in budget
authority, including an increase of $17 million for the accelerated
refuge maintenance and management program.
Other natural resources.—These activities focus on understanding, conservation, and careful husbandry of the Earth's resources,
structure, and environment through research and development and
information dissemination programs. They comprise elements of
the Geological Survey, the Bureau of Mines, and the National
Oceanic and Atmospheric Administration. The decrease from 1982
is caused primarily by transfer of the Conservation Division from
the Geological Survey to the new Minerals Management Service.
For Geological Survey, 1984 budget authority will total $366 million.
Bureau of Mines 1984 outlays of $133 million are less than prior
years because of reductions in applied research and development
which should be the responsibility of the mining industry.
Funding for NOAA programs reflects a decrease of approximately 10% in budget authority from $939 million in 1983 to $834
million in 1984. Estimated outlays for 1984 are $979 million. This
funding would maintain the priority life-safety resource management and development programs, and atmospheric and oceanic
research and services.
Offsetting receipts.—Offsetting receipts from all parts of the natural resources and environment function are expected to rise from
$3.0 billion in 1983 to $4.2 billion in 1984. Receipts that offset the
functional totals come mostly from rents and royalties from land
5-47
NATURAL RESOURCES AND ENVIRONMENT
and minerals and sales of timber, from fees for miscellaneous services, and from selling other products and publications.
CREDIT PROGRAMS—NATURAL RESOURCES AND ENVIRONMENT
(In millions of dollars)
Actual
1982
Direct loans:
Water resources and other loan programs:
New obligations
Net outlays
Outstandings
Total credit budget (new obligations)
Estimate
1983
1984
1985
1986
25
19
351
35
25
376
40
31
407
32
23
430
29
18
448
25
35
40
32
29
Credit programs.—The credit budget in this function is proposed
to increase by $5 million between 1983 and 1984 in programs
operated by the Bureau of Reclamation and the National Park
Service. These direct loans are made to non-Federal organizations
for construction and rehabilitation of irrigation and municipal or
industrial water systems, and for reconstruction of Wolf Trap Farm
Park, Virginia.
Tax expenditures.—As an incentive to encourage production, certain capital costs associated with exploration and development of
nonfuel minerals may be expensed rather than depreciated over
the life of the asset. In addition, most nonfuel-mineral extractors
use percentage depletion, rather than cost depletion. Percentage
depletion is more generous than cost depletion in that total deductions are not limited to the cost of the investment. The total
estimates for these two provisions are $100 million and $690 million, respectively, in 1984.
Interest on State and local government debt issued to finance the
pollution control facilities of private firms is excluded from income
subject to tax; the resulting estimate for 1984 is $1.2 billion.
A special 25% tax credit is available for expenditures made to
restore certain historic structures. The 1984 estimate of $385 million for this provision includes the remaining tax subsidies from
special depreciation treatment available under prior law.
Tax expenditures for natural resources and environment total
$3.3 billion in 1984.
5-48
THE BUDGET FOR FISCAL YEAR 1984
AGRICULTURE
National Needs Statement
Federal programs help meet domestic and international trade
demands for food and fiber while mitigating the adverse effects
of price fluctuations on farmers and moving toward a marketoriented farm economy.
The administration's farm program for 1984 is a major departure
from the types of price support and credit programs offered over
the past several years. In the forefront of this new program is an
innovation called "PIK"—payment-in-kind—in which farmers are
provided commodities, instead of cash, in return for reducing production. This new program is designed to protect farmers' income
while simultaneously reducing our excess inventories to correct the
current supply/demand imbalance. PIK will be both less costly to
the general taxpayer and less of a restriction on farm producers
than any other course available.
Highlights of the administration's new farm program are:
• In return for reducing their production, farmers of wheat,
feed grains, cotton, and rice would receive, at no cost to them,
some of the surplus commodities now pledged as collateral for
Federal loans or owned by the CCC.
• Target prices for wheat, feed grains, cotton, and rice would
remain at current levels rather than be increased annually as
current law requires. This will reduce subsidy payments and
be consistent with the budget strategy of freezing indexed
entitlements.
• Surplus commodities held by CCC would be made available
for donation through international humanitarian organizations.
• Honey and extra-long staple cotton price support programs
would be changed in order to better achieve market clearing
prices and reduce Federal costs.
The first element above, PIK, is being implemented under current authorities. The remaining three elements are expected to be
implemented after enactment of authorizing legislation.
5-49
AGRICULTURE
NATIONAL NEED: IMPROVED AGRICULTURE
(Functional code 350; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
16,063
425
639
17,858
-2,672
529
682
63
63
54
-2
54
-2
54
-2
17,191
16,460
11,839
8,193
6,646
657
316
708
329
706
287
706
287
706
287
118
125
128
-2
128
-2
128
-2
289
277
168
183
-87
204
-4
187
201
-95
204
_4
161
120
-74
234
-4
188
204
-95
187
201
-95
1,586
1,702
1,647
1,613
1,613
-14
-2
-2
-2
-2
18,763
18,160
13,484
9,804
8,257
11,652
18,859 12,394 13,700 13,400
-604 -3,139 -6,000 -6,800
310
400
439
444
732
781
868
802
1985
estimate
1986
estimate
BUDGET AUTHORITY
Farm income stabilization:
Commodity price support and related programs:
Existing law
Proposed policy and legislation
Crop insurance
Agricultural credit
Other programs and unallocated overhead:
Existing law
Proposed legislation
Subtotal, farm income stabilization..
Agricultural research and services:
Research programs
Extension programs
Marketing programs:
Existing law
Proposed legislation
Animal and plant health programs:
Existing law
Proposed legislation
Economic intelligence
Other programs and unallocated overheadOffsetting receipts
Subtotal, agricultural research and services..
Deductions for offsetting receipts
Total, budget authority
OUTLAYS
Farm income stabilization:
Commodity price support and related programs:
Existing law
Proposed policy and legislation
Crop insurance
Agricultural credit
Other programs and unallocated overhead:
Existing law
Proposed legislation
Subtotal, farm income stabilization..
Agricultural research and services:
Research programs
Extension programs
Marketing programs:
Existing law
Proposed legislation
Animal and plant health programs:
Existing law
Proposed legislation
Economic intelligence
Other programs and unallocated overhead..
219
1,370
10,491 11,000 12,400
- 7 3 -4,200 -7,000
474
510
515
896
831
680
48
64
56
-2
55
-2
54
-2
13,289
19,360
10,490
9,059
7,898
667
307
705
328
705
295
710
287
710
287
123
128
128
-2
128
-2
128
-2
317
281
170
191
212
-4
187
200
204
_4
153
107
246
-4
184
204
187
200
5-50
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: IMPROVED AGRICULTURE—Continued
(Functional code 350; in millions of dollars)
Major missions and programs
Offsetting receipts
Subtotal, agricultural research and services
Deductions for offsetting receipts
Total, outlays
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
-74
-87
-95
-95
-95
1,599
1,716
1,662
1,624
1,616
-14
-2
-2
-2
-2
14,875
21,075
12,150
10,681
9,513
5,380
1,055
4,300
835
5,291
-104
3,994
-163
1,034
-216
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Agricultural credit:
Budget authority
Outlays
The 1984 decline in total outlays for the agriculture function is
due mostly to savings realized by the administration's new farm
program.
Farm income stabilization.—These programs are the major Federal involvement in the agricultural sector, representing 86% of
estimated 1984 outlays in the agriculture function. Over the past 2
years, good weather conditions have resulted in unexpected increases in farm crop production. This increased supply, coupled
with lower demand than anticipated, has reduced prices and created large surpluses of farm goods. If present programs were unchanged, budget outlays for this area would increase to a record
high of $20 billion in 1983 as these programs automatically cushion
the adverse effects of low prices and excess supplies. Because of
this combination of factors, the President's program is proposed for
1983 and 1984, which will reduce outlays by more than $600 million in 1983 and $3.1 billion in 1984.
Commodity price support and related programs,—Price support
and related programs were created to stabilize, support, and protect farm income and prices, and to facilitate the orderly distribution and maintenance of a balanced and adequate supply of agricultural commodities and their products. The Commodity Credit
Corporation (CCC) provides price support to producers of agricultural commodities through loans, purchases, payments, and other
means. The administration's new PIK program will be carried out
through the CCC.
The CCC also provides export assistance. The value of agricultural exports in 1982 was $39.1 billion, while imports totaled $15.4
billion, resulting in a positive trade balance of $23.7 billion. Export
credit assistance is provided by CCC through direct loans and loan
guarantees and is intended for those export sales that would not
AGRICULTURE
5-51
have occurred without the Federal credit. While CCC export credit
has grown tremendously over the past several years, it affects an
extremely small portion, 6%, of total exports. Therefore, continued
reliance on free-market commercial export has been the driving
force in the success of U.S. agricultural trade. Nevertheless, the
Federal Government has provided over $14 billion in export credit
assistance since 1977. Total export credit estimated to be extended
in 1984 is $3.1 billion. This represents 300% growth from 1977 in
total CCC export credit assistance.
Crop insurance.—The Federal Crop Insurance Corporation offers
insurance to producers against crop losses from natural hazards. In
1984, the all-risk crop insurance program will be available in 3,000
counties and will cover 37% of all potentially insurable acreage.
Insurance in force is expected to reach $13.7 billion, an increase of
$2.7 billion over 1983. As the crop insurance program continues to
expand, the Farmers Home Administration (FmHA) emergency
loan program will be reduced correspondingly. Outlays depend primarily on the weather, the number of participants, and crop prices.
Agricultural credit.—At the end of 1982, direct loans outstanding
financed through the agriculture credit insurance fund totaled
$24.4 billion. FmHA has lent 88% of this outstanding amount
during the last 10 years. In 1982 alone, new direct lending totaled
$4.2 billion, with 50% of this amount going for disaster loans.
New direct lending will remain at about $4 billion per year in
1983 and 1984. The 1984 budget proposes to increase the regular
operating loan program by $350 million to provide short- and intermediate-term credit for production purposes to those unable to
obtain credit elsewhere.
Outlays arising from direct loans in the agriculture credit insurance fund are financed off-budget through the Federal Financing
Bank. These outlays are included in the off-budget deficit.
Agricultural research and services.—Research helps to increase
agricultural productivity, and it expands knowledge of human nutrition and food safety. The research program will place higher
priority on basic research with long term, high-risk, high potential
pay-off. Short-term applied research and development will receive
reduced Federal effort, since this is more appropriately financed by
private industry.
Marketing programs.—The Federal Government provides a variety of services to aid in the orderly marketing of farm products
such as grain inspection and weighing; tobacco inspection; cotton
classing; and meat, poultry, and livestock grading. Most of these
services are now provided on a user fee basis. In 1984, the adminis-
5-52
THE BUDGET FOR FISCAL YEAR 1984
CREDIT PROGRAMS—AGRICULTURE
(In millions of dollars)
Actual
1982
Direct loans:
Commodity price support and related loans (CCC):
New obligations
Net outlays
Outstandings
Agricultural Credit Insurance Fund(FmHA):
New obligations*
Net outlays
Outstandings
Agricultural credit insurance fund of FmHA (loans held by
FFB): »
Net outlays
Outstandings
Total, direct loans:
New obligations.
Net outlays
Outstandings
Guaranteed loans:
Export credit (CCC):
New commitments
Net change
Outstandings
Agricultural and emergency credit (FmHA):
New commitments
Net change
Outstandings
Total, guaranteed loans:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
Estimate
1983
1984
1985
11,500 11,877 8,040 5,600
6,325 4,382 -2,025
358
12,484 16,867 14,842 15,200
4,199
-241
795
4,264
-420
375
1,055
835
23,412 24,247
3,979
-132
243
5,600
1,300
16,500
4,065
4,012
243
243
-104 -163
24,143 23,979
-216
23,764
15,699 16,141 12,019 9,665 9,612
7,139 4,797 -2,261
195
1,084
36,691 41,488 39,227 39,422 40,506
1,551
645
2,650
4,800
3,389
6,038
3,000
-412
5,626
3,000
-126
5,500
57
-187
1,132
131
-32
1,100
106
-49
1,051
106
106
862 -1,075
1,913
838
1,608
458
3,782
4,931
3,357
7,138
3,106
-461
6,677
3,106 3,106
735 -1,575
7,413 5,838
17,307 21,072
15,125
12,771
3,000
-500
5,000
12,718
•The direct lending activities of the Farmers Home Administration (FmHA) are financed by the Federal Financing Bank (FFB). Certificates of
beneficial ownership (CBO's) are issued by the FmHA. According to law, these certificates are backed by loans that the agency continues to
service. FmHA guarantees the CBO's, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for REA represent acquisition
of CBO's less repurchases by FmHA. Increases in the volume of sales of CBO's are added to FFB direct loan outstandings, while the FmHA's
direct loan outstandings decrease by the amount of CBO's sold to the FFB.
tration is proposing legislation and administrative changes to implement $8 million in user fees for cotton and tobacco market news
and for administrative costs associated with marketing agreements
and orders.
Animal and plant health.—The Federal Government carries out
a number of programs to prevent the introduction and spread of
plant and animal pests and diseases that can cause severe losses in
crop yields or livestock. The 1984 budget provides for a $51 million
brucellosis control program but reduces or eliminates funding for
several lower priority programs such as range caterpillar, imported
fire ants, witchweed, and scabies.
AGRICULTURE
5-53
Tax expenditures.—Agriculture is promoted by several tax expenditures. The tax code permits farmers to treat certain capital
outlays as current expenses and allows capital gains treatment for
certain types of ordinary income. The 1984 estimates for these two
provisions are $590 million and $745 million, respectively. The tax
expenditures for agriculture total $1.4 billion in 1984.
5-54
THE BUDGET FOR FISCAL YEAR 1984
COMMERCE AND HOUSING CREDIT
National Needs Statement
There is a recognized national need to maximize the private
financing of mortgage credit and to support an environment in
which there are fair and equitable opportunities for business
development and growth.
Commerce and housing credit programs support the business and
housing sectors in the areas of mortgage credit, thrift insurance,
the Postal Service, and other forms of commerce, including small
business assistance.
Direct loan or loan guarantee programs make up most of the
Federal activity in the commerce and housing credit function. The
credit programs table within this section reflects the total credit
budget activity associated with these programs. The 1984 budget
proposes $2.1 billion in direct loan obligations and $42.3 billion in
guaranteed loan commitments.
Slower increases in home prices and lower mortgage interest
rates have resulted in an expansion of housing activity. Starts,
completions, and sales of homes and multifamily projects have all
increased considerably in the past few months. Single and multifamily construction permits—which are usually a good predictor of
future housing activity—have also increased substantially, indicating that housing should continue to expand in 1983.
The administration's emphasis on deregulation and institutional
improvements in financial markets has helped establish more efficient mortgage markets that will be better able to meet the increased credit demands that result from this expanded housing
activity. Depository institutions may now offer money market-type
accounts to all savers. This increases the flow of savings to mortgage lenders, enabling them to compete more effectively for available funds, and enabling savers to receive competitive rates of
return on their investments in these institutions.
To ensure that the private sector has the opportunity to enter
the secondary mortgage market, the administration is considering a
package of regulatory and tax changes that will eliminate unnecessary barriers to the issuance of private mortgage-backed securities.
Known as TIM's (trusts for investments in mortgages), the resulting instruments will make the secondary mortgage market more
accessible to private institutions. This improved competition should
allow the entire secondary mortgage market to keep pace in the
increasingly deregulated financial environment.
COMMERCE AND HOUSING CREDIT
5-55
The administration also remains committed to seeking the total
privatization of two of the housing related Government-sponsored
enterprises, the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation. Because of their Federal Government sponsorship these enterprises receive special advantages in the securities markets that completely private institutions
do not have. An interagency Cabinet-level group will continue to
pursue the goal of complete privatization of these enterprises.
The 1984 credit budget requests reductions in commerce and
housing credit programs from 1983 levels. These reductions in new
direct loan obligations and guaranteed loan commitments should
continue to relieve pressure on interest rates without adversely
affecting the industries involved. Where Federal involvement is
necessary and justified, the principal concern will be to target
scarce Federal resources specifically to those groups with the greatest need. This budget ensures the efficient and effective use of
limited Federal credit resources by:
• targeting rural housing programs to low-income families occupying substandard housing;
• providing greater emphasis on minority, handicapped, and
first-time borrowers with guaranteed credit assistance of the
Small Business Administration, thereby having the Government assume credit risk for these borrowers when the market
may overestimate the risk;
• deregulating the interest rate on FHA-insured mortgages,
thereby allowing it to be determined by the market;
• ensuring a strong private economy by acting only as a lender
of last resort in certain areas; and
• redirecting FHA mortgage insurance programs to those
groups not served by the private mortgage market.
The 1984 budget proposes $7.6 billion in budget authority and
$0.4 billion in estimated budget outlays for commerce and housing
credit. Mortgage credit and thrift insurance programs and activities are the largest portion of the assistance, with $5.7 billion in
proposed budget authority in 1984.
Mortgage credit and thrift insurance.—The most significant con-
tribution the Federal Government can make to both the housing
industry and individual homebuyers is the pursuit of prudent fiscal
and monetary policies that support stable and reasonably low interest rates. Overall Federal credit reductions will continue to
exert downward pressure on interest rates and allow the private
housing sector opportunity for growth. The focus of Government
mortgage credit programs will be on areas the private sector
cannot serve, particularly distressed rural areas and central cities.
5-56
THE BUDGET FOR FISCAL YEAR 1984
Mortgage purchase activities.—The Government National Mortgage Association (GNMA) provides support for the mortgage
market through guarantees of mortgage-backed securities. For
1983, a new commitment limitation of $68.3 billion has been enacted, and guarantees are expected to be issued on about $35.2
billion in securities backed by pools of mortgages that are either
insured by the Federal Housing Administration or the Farmers
Home Administration, or guaranteed by the Veterans Administration. For 1984, the administration proposes a new commitment
limitation of $58.6 billion, although only $39.1 billion of securities
are expected to be guaranteed. This represents a $9.6 billion commitment limitation reduction from the enacted 1982 and 1983
levels. The credit programs table shows the new commitment limitation proposed for GNMA guarantees. Table F-9 of Special Analysis F, "Federal Credit Programs/' shows the estimated guaranteed
loans.
For 1984, the administration proposes no further activity for the
GNMA tandem mortgage subsidy programs. The statutory authority for these programs, which involves making direct loans at large
losses to the Federal Government, is proposed for repeal. Contingent upon successful enactment of this proposal, outstanding Treasury borrowing for these programs will be forgiven, and the remaining fund balances transferred to the GNMA management and liquidating functions fund.
Mortgage credit.—The Federal Housing Administration (FHA)
provides mortgage and loan insurance for families who may be
unable to obtain a mortgage without Federal insurance. FHA mortgage credit is one of the largest programs in the Federal credit
budget.
Many families, particularly first-time - homebuyers, can afford
only a low downpayment when purchasing a home. Mortgage lenders, however, are reluctant to make low downpayment loans unless
the mortgages are insured. Although private mortgage insurers
currently insure more mortgages and charge lower premiums than
FHA, some homebuyers—particularly those able to make only very
low downpayments—may be unable to obtain private mortgage
insurance. Thus, these homebuyers require FHA mortgage insurance in order to purchase a home.
In addition, FHA insurance on mortgages is often sought by
mortgage bankers for use in conjunction with GNMA guarantees of
pools of insured mortgages. These GNMA securities provide mortgage bankers and other lenders with the means to finance portfolios of mortgages without having to use much of their own capital.
The administration is requesting $39.8 billion of new loan guarantee commitment authority for 1984. The request reflects projections of future housing activity and, more importantly, recognizes
5-57
COMMERCE AND HOUSING CREDIT
NATIONAL NEED: COMMERCE AND HOUSING CREDIT
(Functional code 370; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985 1986
estimate
estimate
249
-248
127
436
263
-263
135
507
525
-525
143
558
1,508
3,556
66
5,694
1,820
1,297
40
3,800
1,979
40
2,720
789
707
760
-360
789 400
964
-564
400
985
-585
400
570
739
461
434
275
211
184
631
1,660
BUDGET AUTHORITY
Mortgage credit and thrift insurance:
Department of Housing and Urban Development:
Mortgage purchase activities (GNMA):
Existing law
Proposed legislation
Mortgage credit (FHA)
Housing for the elderly or handicapped
Department of Agriculture—rural housing programs:
Existing law
Proposed legislation
National Credit Union Administration
Subtotal, mortgage credit and thrift insurance..
Postal Service:
Existing law
Proposed legislation..
1,101
203
710
183
564
2,004
1,630
36
4,055
55
2,435
707
Subtotal, Postal Service..
Other advancement of commerce:
Small business assistance
Technology utilization:
Existing law
Proposed legislation
Economic and demographic statistics..
Other
Subtotal, other advancement of commerceDeductions for offsetting receipts
Total, budget authority
211
213
218
524
1,692
193
5
206
561
1,464
213
563
1,447
213
563
1,423
-2
-1
i 6,4194,915
-1
7,556
-1
5,647
-1
4,543
OUTLAYS
Mortgage credit and thrift insurance:
Department of Housing and Urban Development:
Mortgage purchase activities (GNMA):
Existing law
Proposed legislation
Mortgage credit (FHA)
Housing for the elderly or handicapped
Department of Agriculture—rural housing programs:
Existing law
Proposed legislation
Federal Deposit Insurance Corporation
Federal Savings and Loan Insurance Corporation
National Credit Union Administration
Subtotal, mortgage credit and thrift insurancePostal Service:
Existing law
Proposed legislation
Subtotal, Postal Service
1,504
1,019
-237
742
212
1,433
268
-842 -1,038 -1,189
-329 -1,546 -1,586 -1,622
255
51 - 3 8 -260
1,247
1,611
-1,440 -2,300
-588 -898
20
-12
1,216 -622
707
707
1,913 1,943 1,729
325 -495 -83
-2,020 -2,180 -2,410
-716 -934 -976
16
18
16
-1,387 -4,101 -4,525
760
-360
400
789
789
964
-564
400
985
-585
400
5-58
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: COMMERCE AND HOUSING CREDIT—Continued
(Functional code 370; in millions of dollars)
Major missions and programs
Other advancement of commerce:
Small business assistance
Technology utilization:
Existing law
Proposed legislation
Economic and demographic statistics.
Other
Subtotal, other advancement of commerce..
Deductions for offsetting receipts
Total, outlays
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
933
771
455
426
397
249
209
193
216
208
185
577
215
567
210
542
210
558
211
552
1,943
1,761
1,400
1,410
1,368
-2
-1
-1
3,865
1,928
413
-553
341
935
2,586
1,861
174
-212
521
-106
5,170
2,800
5,335
2,650
4,263
333
1,772
-476
-61
-4,263
-333
-1,772
476
61
-1
-2,292 -2,758
ADDENDUM
Off-budget Federal entities:
Postal Service:
Budget authority
Outlays
Federal Financing Bank:
Rural housing insurance fund:
Existing law:
Budget authority
Outlays
Proposed legistation:
Budget authority
Outlays
Small business assistance:
Budget authority
Outlays
Total:
Budget authority..
Outlays
178
142
295
248
340
280
340
270
340
260
5,348
2,389
5,971
3,833
2,926
2,140
514
58
861
154
that private mortgage insurers will be able to adequately serve a
larger share of the housing market.
The administration obtained a $6.1 billion supplement, in the
1983 Continuing Resolution, to the FHA loan guarantee authority
of $39.8 billion for 1983. With the expectation of rapidly falling
interest rates, the demand for FHA insurance has increased considerably. More applications were received in the last two months of
1982 than in any other November-December time period in the 48year history of FHA. Approximately 30-40% of this increase in
demand is to refinance existing mortgages.
In addition, legislation to remove current statutory ceilings on
interest rates for FHA-insured mortgages is being reproposed.
Elimination of the FHA regulation that prohibits FHA-insured
homebuyers from being charged any points directly will be implemented simultaneously. Points are interest charges that are paid at
the time a property is purchased and are used by lenders to increase effective interest rates on FHA-insured mortgages. Each
COMMERCE AND HOUSING CREDIT
5-59
point equals 1% of the mortgage amount. Although the current
regulation prohibits the additional points from being charged to
buyers directly, they are usually paid by buyers indirectly through
increased home prices. The elimination of both ceilings on interest
rates and the regulation that prohibits the buyer from paying
points will allow mortgage markets to operate more effectively and
can benefit buyers by reducing artificially increased home prices.
Finally, FHA will begin two new programs in 1983. One will
allow direct approval of insured single-family mortgages by approved mortgage lenders. Under this program, lenders have the
responsibility for underwriting and closing the mortgage loan.
They then submit the loan to FHA for insurance endorsement
without need of any prior FHA commitment. This new program
will allow FHA to process mortgage insurance applications faster
and reduce the staff needed to process applications.
The administration proposed and Congress enacted a new
method for collecting insurance premiums on insured single-family
mortgages beginning in 1983. Instead of paying monthly premiums
for the life of the mortgages, homebuyers with FHA-insured mortgages will either pay a lump sum at the time of settlement or have
the insurance added to the total mortgage.
All of these factors are expected to result in an increase in net
receipts to the FHA fund from $329 million in 1983 to $1.5 billion
in 1984.
Housing for the elderly or handicapped.—In addition to supporting private market mortgage financing with FHA insurance, HUD
provides direct loans to finance housing for the elderly and the
handicapped. The budget proposes $476 million of new loan obligations in 1984. This funding will support construction of approximately 10,000 units. The administration plans to sell $5.2 billion of
section 202 direct loans between 1983 and 1988, starting with $750
million in 1983. There is no reason for the Federal Government to
continue to hold these loans once the projects have been constructed. Outlays for this program are estimated to be $255 million in
1983 and $51 million in 1984. The decline in 1983 and 1984 outlays
from the 1982 level reflects the estimated receipts from the loan
sales.
Department of Agriculture rural housing programs.—The 1984
budget proposes to replace the categorical direct lending and grant
programs of the Farmers Home Administration (FmHA) rural
housing program with a housing block grant to States. Its proposed
budget authority is $850 million and is included in the income
security function. The block grant will be available in the same
places previously served by the FmHA categorical programs—in
any rural community of 10,000 or less, and in communities of
10,000 to 20,000 outside of a standard metropolitan statistical area.
Eighty percent of the block grant funds is earmarked for families
with incomes less than 50% of the State median income..
5-60
THE BUDGET FOR FISCAL YEAR 1984
For 1984, new obligations of $308 million in direct loans will be
provided primarily to service the existing portfolio of loans (e.g., to
permit sales from the government's inventory). This represents a
reduction of $3.1 billion from the amount of new direct loan obligations available in 1983. This reduction in direct lending is part of a
continuing effort to limit the growth of Federal outlays and to
reduce dependence on the Federal Government as a major source
of credit. To compensate for this reduced direct Federal role in
credit markets, the administration will make FHA mortgage insurance more widely available in rural areas through Farmers Home
Administration county offices.
Rural housing insurance fund outlays are estimated to be $2.2
billion in 1984 when all transactions with the Federal Financing
Bank are included, due to proposed legislation. Corresponding reductions are shown in off-budget Federal financing.
A number of programs enhance the safety and soundness of the
banking system and affect its reponsiveness to the needs of both
savers and borrowers. The Federal Deposit Insurance Corporation
(FDIC) insures the deposits of all federally and many State chartered commercial and savings banks. Receipts of the FDIC are
estimated to exceed expenses by $2.3 billion in 1983 and $2.0 billion
in 1984.
The Federal Savings and Loan Insurance Corporation (FSLIC)
insures deposits in savings and loan associations. As economic conditions improve in 1983 and 1984, receipts are estimated to exceed
costs by $898 million and $716 million, respectively.
The National Credit Union Administration (NCUA) regulates
credit unions and insures depositors' accounts. The insurance fund
of NCUA insures the shares of credit union depositors. Total outlays for the NCUA are estimated to decline from $20 million in
1983 to $16 million in 1984. The NCUA also operates a central
liquidity facility that is intended to serve as a source of financing
only after other sources have been used. It is estimated that the
central liquidity facility, which provides loans to member credit
unions to meet their liquidity needs, will have the same volume of
$95 million in new direct loan obligations in 1984 that it did in
1983.
Postal Service.—The Postal Reorganization Act of 1970 established the U.S. Postal Service as an independent part of the executive branch. Outlays for the general operations of the Postal Service are excluded from Federal budget totals, except for reimbursements for revenue foregone, which subsidize certain classes of mail
at reduced rates. In the past, these reimbursements have also
included payment for certain liabilities of the former Post Office
Department. These payments for 1982 through 1984 were postponed until 1985 by the 1981 Reconciliation Act.
The request for 1984 reflects the administration's belief that
postage costs should be paid by those who incur them, not by the
COMMERCE AND HOUSING CREDIT
5-61
taxpayer. Budget authority of $400 million is requested for 1984,
$389 million below the estimated 1983 level. The administration
will submit legislation to reduce subsidies to preferred-rate mailers,
with the exception of mail for the blind and handicapped.
Other advancement of commerce.—Federal programs attempt to
support an environment for fair and equitable business opportunities by providing technical assistance and loan guarantees, collecting and disseminating information on the economy and population,
encouraging innovation and productivity growth, and providing
export promotion assistance to small and medium sized businesses.
Small business assistance.—Net outlays for assistance to small
business are estimated to total $0.5 billion in 1984, a reduction of
$0.3 billion from the proposed 1983 level. The 1984 budget request
for the Small Business Administration (SBA) calls for elimination
of subsidized direct loans with the exception of $41 million in direct
financing for minority enterprise small business investment companies and $471 million of new direct loan obligations to cover claims
on defaulted SBA guaranteed loans. In addition, $2.4 billion in new
commitments for guaranteed business loans and $0.4 billion of
guaranteed loans financed through the Federal Financing Bank as
direct loans will be proposed. Most of these commitments ($2.4
billion) will be directed to the small business community in general, but small business investment companies and development companies will receive $175 million and $275 million, respectively. As
the credit programs table reflects, the budget proposes phasing
down SBA loan guarantee assistance in order to reach $1.5 billion
by 1986. Handicapped, minority, and first-time borrowers will be
the priority credit assistance recipients.
The reduction in SBA financial assistance is an integral part of
the administration's effort to restrain and reduce Federal credit
programs in order to increase the availability of private credit for
businesses. As a group, small businesses will benefit more from the
administration's efforts to stabilize financial markets, reduce interest rates, eliminate burdensome regulations, and lower inflation
than from direct Federal credit subsidies.
Since the vast majority of small businesses are obtaining financing without Federal assistance, the administration plans to provide
assistance to those businesses for which a valid case can be made
that market imperfections may exist. Consistent with this philosophy, it is anticipated that 17% of SBA's guaranteed business loans
will be made to minority-owned firms in 1984. In addition, the
budget proposes that the non-credit minority business assistance
programs in the Department of Commerce and the SBA will operate at current levels in 1984 with outlays of $98 million.
380-000 0 - 83 - 12 : QL 3
5-62
THE BUDGET FOR FISCAL YEAR 1984
CREDIT PROGRAMS—COMMERCE AND HOUSING CREDIT
(In millions of dollars)
Direct loans:
Mortgage purchase activity (GNMA):
New oblfgations
Net outlays
Outstandings
Mortgage credit (FHA):
New obligations
Net outlays
Outstandings
Housing for the elderly or handicapped:
New obligations
Net outlays
Outstandings
Rural housing (FmHA):
New obligations l
Net outlays
Outstandings
Rural housing of FmHA (loans held by F F B ) : 1 2
Net outlays
Outstandings
Central Liquidity Facility (NCUA):
New obligations
Net outlays
Outstandings
Small business assistance:3
New obligations
Net outlays
Outstandings
Small business assistance (loans made by FFB):
New obligations4
Net outlays
Outstandings
Small business assistance (loans held by FFB): 5
Net outlays
Outstandings
Other commerce and housing credit programs-.
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations.
Net outlays
Outstandings
Guaranteed loans-.
Mortgage purchase activity (GNMA): 6
New commitments
Net change
Outstandings
Mortgage credit (FHA):
New commitments
Net change
Outstandings
Actual
1982
1983
1984
1,985
-259
4,074
504
-640
3,433
3
3
- 6 8 -1,167
3,366 2,199
3
-934
1,264
284
-142
4,150
341
-161
3,990
288
-417
3,572
320
-344
3,228
313
-278
2,950
819
815
3,641
634
65
3,706
476
-175
3,531
500
-249
3,282
525
-421
2,861
3,455
-379
447
3,377
-176
271
308
324
596
669
-495
100
493
-83
18
1985
1986
2,800 2,650
23,921 26,571
82
29
130
95
40
170
95
40
210
100
40
250
100
40
290
682
393
3,096
749
151
3,247
512
-251
2,996
483
-248
2,627
444
-249
2,378
215
151
759
375
258
1,017
375
290
1,306
375
280
1,586
375
270
1,856
-9
66
-10
56
-10
46
-10
36
-10
26
73
134
1,503
34
-86
1,417
20
-210
1,207
18
-413
794
16
-115
679
7,595 6,109
3,533 2,091
41,788 43,878
2,077 2,468 2,270
- 4 7 7 -2,606 -1,780
16,830 14,104 12,323
36,382 68,250 58,650 58,650 58,650
10,901 28,063 30,900 22,833 29,603
115,537 143,600 174,500 197,333 226,936
18,576 45,900 39,800 39,800 39,800
6,807 29,169 26,325 25,266 24,440
142,252 171,422 197,747 223,013 247,453
5-63
COMMERCE AND HOUSING CREDIT
CREDIT PROGRAMS—COMMERCE AND HOUSING CREDIT—Continued
(In millions of dollars)
Actual
1982
Rural housing (FmHA):
New commitments
Net change
Outstandings
Small business assistance:
New commitments
Net change
Outstandings
Chrysler Corporation:
Outstandings
Other commerce and housing credit programs:
New commitments
Net change
Outstandings
Less guaranteed loans held as direct loans by GNMA:'
New commitments
Net change
Outstandings
Total, guaranteed loans:
New commitments
Net change
Outstandings
Estimate
1983
1984
1985
1986
17
-272
1,068
16
-71
998
13
108
1,106
4
388
1,494
4
-241
1,253
1,854
-122
9,428
2,425
-347
9,081
2,425
-520
8,561
2,075
-705
7,856
1,475
1,160
6,696
1,200
1,200
1,200
1,200
1,200
74
-17
296
59
11
308
28
-16
291
26
-21
271
24
-22
248
1,985
-241
4,067
501
-639
3,428
-68
3,360
-1,168
2,192
-934
1,258
18,536 47,898 42,266 41,905 41,303
6,637 29,402 25,965 26,096 23,951
150,178 179,580 205,546 231,642 255,593
Total credit budget, (new obligations and new
commitments)
26,131
54,007
44,343
44,373
43,573
^ h e direct lending activities of the Farmers Home Administration (FmHA) are financed by the Federal Financing Bank (FFB). Certificates of
beneficial ownership (CBO's) are issued by the FmHA. According to law, these certificates are backed by loans that the agency continues to
service. FmHA guarantees the CBO's, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for REA represent acquisition
of CBO's less repurchases by FmHA. Increases in the volume of sales of CBO's are added to FFB direct loan outstandings, while the FmHA's
direct loan outstandings decrease by the amount of CBO's sold to the FFB.
2
Under proposed legislation, the CBO's sold by the rural housing insurance fund of FmHA to the FFB will be treated as agency debt beginning
in 1984. Consistent with this proposal, the CBO transactions with the FFB are removed from the credit programs table.
3
Direct loan obligations for 1983 are repurchases of defaulted guaranteed loans.
4
These are obligations to guarantee loans that the FFB will disburse. In effect, they are obligations for off-budget direct loans and are counted
as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency. The totals for small business assistance
loans made by the FFB in this table are not identical to the entries in the addendum to the national needs table for off-budget Federal entities
due to timing differences between budget authority and new obligations.
5
The direct lending activities of the Small Business Administration are financed by the FFB. Loan assets are issued by the agency. According
to law, these assets are backed by loans that the agency continues to service. The agency guarantees the loan assets, sells them to the FFB,
and repurchases them upon maturity. FFB net outlays for this account represent acquisition of loan assets less repurchases by the agency.
Increases in the volume of sales of loan assets are added to FFB direct loan outstandings, while the agency's direct loan outstandings decrease by
the amount of loan assets sold to the FFB.
6
GNMA guarantees securities that are backed by pools of loans previously insured by the FHA, the Veterans Administration or the Farmers
Home Administration. These secondary guarantees of loans are not added into guaranteed loan totals for the credit budget.
7
When guaranteed loans are acquired by a budget account, they become direct loans and are counted as such in this table. This deduction for
GNMA eliminates overlap with direct loans presented above.
Tax expenditures.—The tax system provides a variety of incentives for investment in equipment, commercial and industrial
structures, and residential housing. For example, the investment
tax credit provides incentives for investment in capital equipment.
Deductions for mortgage interest and property taxes are permitted
on owner-occupied homes. Tax expenditures are also made available for specific types of business. Financial institutions are, for
instance, accorded favorable tax treatment on excess bad debt reserves.
5-64
THE BUDGET FOR FISCAL YEAR 1984
TAX EXPENDITURES IN COMMERCE AND HOUSING CREDIT
(In millions of dollars)
Fiscal years
Description
Commerce and housing credit:
Dividend and interest exclusion
Exclusion of interest on State and local industrial development bonds
Exemption of credit union income
Excess bad debt reserves of financial institutions
Exclusion of interest on life insurance savings
Deducibility of interest on consumer credit
Deducibility of mortgage interest on owner-occupied homes
Deducibility of property tax on owner-occupied homes
Exclusion of interest on State and local housing bonds for owner-occupied
housing
Capital gains (other than agriculture, timber, iron ore and coal)
Deferral of capital gains on homes sales
Exclusion of capital gains on home sales for persons age 55 and over
Carryover basis of capital gains at death
Investment credit, other than employee stock ownership plans, rehabilitation
of structures, energy property, and reforestation expenditures
Safe harbor leasing rules
Amortization of start-up costs
Exclusion of interest on certain savings certificates
Reinvestment of dividends in public utility stock
Total (after interactions), commerce and housing credit
1982
1983
1984
1,530
1,795
225
660
6,625
10,900
23,495
8,405
615
2,250
245
680
6,780
10,710
25,255
8,810
605
2,625
270
1,090
7,310
10,530
28,335
9,645
955
26,590
2,090
710
3,120
1,185
22,865
2,225
765
3,330
1,315
23,465
2,515
865
3,685
19,255 17,170 18,325
3,270
3,035
2,880
195
290
125
105
1,970
840
670
590
400
111,905 108,301 115,635
•The estimate of total tax expenditures for this function reflects interactive effects among the individual items. Therefore, the estimates cannot
simply be added.
The Economic Recovery Tax Act of 1981 (ERTA) liberalized the
rules under which firms may transfer unused investment tax credits and depreciation deductions on new investments to profitable
firms through leasing transactions. The Tax Equity and Fiscal
Responsibility Act of 1982 (TEFRA) repeals these provisions, referred to as safe harbor leases, effective January 1, 1984. For safe
harbor leases entered into before 1984, the Act limits the type of
eligible property and the amount of tax benefit available to the
lessor.
The cost of the total tax expenditures for commerce and housing
credit are estimated to be $115.6 billion in 1984, an increase of $7.3
billion from 1983 estimates.
TRANSPORTATION
5-65
TRANSPORTATION
National Needs Statement
The Federal Government seeks to ensure the maintenance of a
transportation system to provide safe, efficient and economical
movement of people and goods, and to support national defense. This requires private enterprise, State and local governments, and the Federal Government to uphold their responsibilities to the system. Federal support of national priorities for
ground, air, and water transportation is financed substantially
by user fees.
A safe and efficient transportation system is essential for the
Nation's economic health and vitality. It provides mobility to citizens and serves as a distribution network for goods and services.
The administration has placed a high priority on maintaining and
upgrading this vital component of the economy. To this end, the
administration requests increases in Federal funding for the national defense and interstate highway system, primary highways
and bridges, the national air traffic control system, and Coast
Guard operations. Proposed budget authority for transportation
programs is $27.8 billion for 1984, $6.5 billion more than in 1982.
Primary responsibility for other portions of the transportation
system lies outside the Federal purview. The administration looks
to State and local governments to supply the major share of funding for non-interstate highways and public transportation, and to
the private sector for commercial transportation.
The budget reflects the continued effort of the administration to
simplify Federal regulations and reduce the Federal role, where
appropriate. The administration proposes a decrease in budget authority for the Interstate Commerce Commission and for the Civil
Aeronautics Board, which is scheduled to expire in 1985, to reflect
their reduced statutory responsibilities. The administration also
plans to reduce the Federal presence in railroads and pursue legislative or administrative avenues to further deregulate the trucking, airline, and ocean shipping industries.
The administration stresses that those who benefit from Federal
transportation programs should pay their cost through user fees.
The administration has been successful in increasing user fees to
support highway and aviation programs. The budget extends this
policy by proposing user fees for selected Coast Guard services.
Ground transportation.—Proposed budget authority is $19.1 billion for highway, highway safety, mass transit, and railroad pro-
5-66
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: EFFICIENT TRANSPORTATION SYSTEMS
(Functional code 400; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Ground transportation:
Highway systems:
Existing law
Proposed legislation
Highway safety
Mass transit
Railroads
Regulation
Subtotal, ground transportation...
Air transportation:
Airways and airports
Aeronautical research and technology...
Air carrier subsidies
Regulation
Subtotal, air transportationWater transportation:
Marine safety and transportation:
Existing law
Proposed legislation
Coast Guard user fees (proposed legislation)..
Ocean shipping
Regulation
Subtotal, water transportation-
1982
actual
1985
estimate
1986
estimate
14,559 18,869 19,062 19,147 19,868
3,157
516
86
26
4,180
553
48
24
5,031
589
51
21
5,503
620
14
5
5,481
642
3,785
4,806
5,692
6,142
6,123
2,513
2,456
415
11
526
12
2,543
-7
-58
506
11
2,664
-16
-61
504
11
2,797
-18
-61
508
11
2939
2,994
2,995
3,103
3,237
110
116
119
56
121
110
116
175
201
-87
-85
-67
-67
Subtotal, other transportation....
Total, budget authority
1984
estimate
8,723 13,158 13,811 14,549 15,330
80
80
60
213
236
258
213
260
3,584 4,397 3,967 3,488 3,498
1,968 1,013
889
716
716
70
67
58
54
51
Other transportation:
Existing law
Proposed legislation
Deductions for offsetting receipts
1983
estimate
-116
21,256 26,692 27,780 28,500 29,363
grams in 1984, $4.5 billion higher than in 1982. This budget reflects
the recently enacted Surface Transportation Assistance Act of
1982, which increases Federal revenues earmarked for highways
and mass transit significantly over 1982 levels. Some highway programs may be affected by the federalism initiative, described in
Special Analysis H: "Federal Aid to State and Local Governments,"
in the Special Analyses volume of the 1984 Budget.
Highway systems.—The Surface Transportation Assistance Act of
1982 has established the basic thrust and framework for a muchenhanced Federal highway program over the next 4 years. Under
the Act, the highway motor fuels tax increases from four to nine
cents per gallon—the first increase since 1959. Other taxes support-
5-67
TRANSPORTATION
NATIONAL NEED: EFFICIENT TRANSPORTATION SYSTEMS—Continued
(Functional code 400; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
OUTLAYS
Ground transportation:
Highway systems:
Existing law
Proposed legislation....
Highway safety
Mass transit
Railroads
Regulation
Subtotal, ground transportationAir transportation:
Airways and airports
Aeronautical research and technologyAir carrier subsidies
Regulation
Subtotal, air transportationWater transportation:
Marine safety and transportation:
Existing law
Proposed legislation
Coast Guard user fees (proposed legislation)..
Ocean shipping
Regulation
Subtotal, water transportation
7,934
269
3,930
2,126
68
14,326 14,562 17,249 17,875 18,228
2,891
563
84
26
3,576
567
55
24
4,185
587
51
21
4,539
610
18
6
4,816
628
3,564
4,222
4,844
5,173
5,444
2,070
2,453
614
11
594
12
2,570
-7
-58
503
11
2,644
-16
-61
476
11
2,812
-18
-61
478
11
2,696
3,059
3,019
3,054
3,221
120
118
122
51
121
120
118
173
201
-87
-85
-67
-67
Other transportation:
Existing law
Proposed legislation..
Subtotal, other transportation..
Deductions for offsetting receipts...
Total, outlays.
ADDENDUM
Off-budget Federal entities:
U.S. Railway Association:
Budget authority
Outlays
Federal Financing Bank:
Railroads:
Budget authority
Outlays
Total:
Budget authority.
Outlays
8,806 12,263 12,913 13,517
_3
-35 -275 -76
245
247
237
243
3,940 3,797 3,753 3,575
986
839
1,551 1,162
54 _ j > 2
65 _ _5_9
90
-116
20,560 21,876 25,145 26,207 27,027
16
-57
-19
3,180
78
52
22
-13
-13
-13
3,199
55
68
-35
-33
-13
-13
ing the Federal highway program are restructured to improve the
balance between the tax assigned to highway users and the costs
those users impose on the system. The Act also extends the author-
5-68
THE BUDGET FOR FISCAL YEAR 1984
ization for spending from the user-financed highway trust fund to
1988. The administration proposes budget authority of $13.9 billion
for highways in 1984.
The legislation greatly increases budget authority for completing
and preserving the interstate highway system, and for rehabilitating primary highways and bridges. The Act provides for (1) completion of all segments of the interstate system by the early 1990's, (2)
an immediate spending increase of 144% over levels prior to the
Act for rehabilitating and preserving existing segments of the interstate system, and (3) an 88% increase in budget authority from
1982 to 1986 for primary highways and bridges.
All other rural and urban roads remain primarily the responsibility of State and local governments, which must decide the priority of construction, maintenance, and rehabilitation. The budget
reflects spending at approximately the 1983 levels for Federal programs for these roads.
Highway safety.—Proposed budget authority for highway safety
in 1984 is $258 million. The funds would be used to support Federal
vehicle safety research and development, promulgate and enforce
Federal safety and fuel economy standards, and supplement State
highway safety programs.
Two laws increase funding for highway safety in 1984. The Alcohol Traffic Safety Act of 1982 provides incentive grants to States
that have met certain criteria for reducing drunk driving. The
Surface Transportation Assistance Act of 1982 establishes a State
grant program for enforcement of Federal safety standards for
trucks. The program draws on the success of recent State programs
and addresses concerns that existing laws deregulating the trucking industry may reduce attention paid to highway safety.
Mass transit—The Federal Government provides assistance for
mass transit through a variety of formula and discretionary grant
programs. The majority of funds are reserved for capital projects;
grants are also provided for operating assistance, planning activities, demonstration projects, and research.
Budget authority of $4.0 billion is proposed for mass transit in
1984. These funds are to be used primarily for capital projects, such
as construction and rehabilitation of bus and rail facilities and
replacement and repair of rolling stock. The Surface Transportation Assistance Act of 1982 significantly restructures Federal assistance for mass transit. Beginning in 1984, the existing discretionary grant program will be funded with one cent per gallon of the
new motor fuels tax increase and will be used for capital projects.
A new grant program begins in 1983, financed by highway user
taxes in the first year and general funds thereafter, which will
distribute funds on a formula basis for capital and, to a limited
TRANSPORTATION
5-69
extent, operating projects in urban and rural areas. In addition to
these programs, budget authority is requested for existing programs to substitute transit projects for previously planned interstate highway projects and to continue construction of the Washington, D.C. Metro system.
The administration has examined the usefulness of Federal funding of operating costs and determined that State and local governments should assume complete responsibility for operating local
mass transit systems by 1985. In some areas Federal funds support
marginally effective, conventional transit services where transportation needs could be better served by more cost-effective and
innovative alternatives. Shifting financial responsibility to local
authorities should make low-cost alternatives more attractive. Decisions about service levels, equipment, facilities, fares, wage rates,
and management practices are better left to local governments or
to the private sector.
Railroads.—In keeping with the administration's policy of reducing Federal responsibility for rail activities unrelated to safety,
estimated outlays for railroads in 1984 are reduced to $1.2 billion,
$0.4 billion less than in 1983. The decrease is attributable to reductions in Federal assistance programs, the completion of the transfer of Conrail commuter services to local authorities, and the settlement in 1983 of most outstanding litigation against the Government. Federal aid is being phased back or eliminated, in conjunction with the ability of the industry to be self-supporting.
Conrail provides freight service in the Northeast and Midwest.
Operating subsidies have not been requested by Conrail nor proposed by the administration for 1984; Conrail has accomulated cash
reserves sufficient to meet potential emergency requirements. The
Omnibus Budget Reconciliation Act of 1981 stipulated that the
Federal Government should sell Conrail as part of a private
market solution to rail problems in that part of the Nation.
The Federal Government subsidizes intercity rail passenger service throughout the United States by providing grants to the National Railroad Passenger Corporation (Amtrak). In 1982, the Federal Government covered more than 50% of Amtrak's direct operating costs and 100% of its capital and other operating costs. To
reduce competitive inequities, the administration supports decreased funding for Amtrak and increased coverage of costs by
passengers or the States. Proposed budget authority is $682 million
for subsidies to Amtrak in 1984, a reduction of $18 million from
1983. Also proposed are certain cost-saving measures: labor and
management productivity savings, higher State payments for joint
Federal- and State-funded trains, and elimination of all routes that
do not meet legal criteria in existing legislation for Amtrak. In
addition, the administration proposes to alter labor protection for
5-70
THE BUDGET FOR FISCAL YEAR 1984
Amtrak employees to make it similar to the type of protection
provided Conrail employees.
The administration has previously redirected the primary focus
of the northeast corridor improvement program away from developing high speed rail service toward safety and reliability. Many of
the more critical portions of the project are now complete. The
administration proposes budget authority of $100 million in 1984 to
complete the project.
Air transportation.—Budget authority of $5.7 billion is requested
for air transportation in 1984, an increase of $0.9 billion over 1983.
Federal spending for air transportation is for improvement, operation, and maintenance of the national airspace system, airport
grants, aeronautical research and technology, air carrier subsidies,
and operation of two airports (National and Dulles) in the Washington, D.C., area.
Airways and airports.—The safe and efficient movement of air
traffic nationwide is under the direction of the Federal Aviation
Administration (FAA). Budget authority of $5.0 billion is proposed
for the FAA in 1984. The Airport and Airway Improvement Act of
1982 increased aviation user fees for the airport and airway trust
fund. The receipts will finance the multiyear FAA capital modernization program, airport improvement grants, and an increased
share of FAA operations and maintenance costs.
The administration requests budget authority for the second year
of the FAA capital modernization program. The request includes a
72% increase from 1983 to 1984 for research and development and
for procurement of new facilities and equipment. The FAA will
provide to the Congress a revised national airspace system plan
reflecting pertinent project changes since the formulation of the
original plan 1 year ago.
Airport improvement grants will emphasize compliance with airport safety standards, expansion, and noise reduction. The administration proposes to limit obligations in 1984 to $700 million, an
increase of $100 million over the existing 1983 limitation. Funds
will be distributed according to the provisions of the Airport and
Airway Improvement Act of 1982.
The administration proposes increased budget authority for FAA
operations and maintenance activities to permit the lifting by December 1983 of all flight restrictions imposed after the 1981 air
traffic controllers strike.
In compliance with the Airport and Airway Improvement Act of
1982, the request also includes reimbursement from the airport and
airway trust fund to the National Oceanic and Atmospheric Administration for providing aviation weather services.
TRANSPORTATION
5-71
Aeronautical research and technology.—The National Aeronautics and Space Administration (NASA) conducts research in basic
aeronautical sciences and long-term technology development, and
operates unique research and testing facilities—activities that are
unlikely to be funded by the private sector.
The administration proposes $589 million of budget authority for
NASA in 1984 to help maintain U.S. leadership in aeronautical
research and technology. This amount would allow a significant
increase in aeronautical engineering and systems research efforts.
New initiatives proposed for 1984 include a numerical aerodynamic
simulation capability and development of light-weight composite
materials for large aircraft.
Air carrier subsidies.—In conjunction with airline deregulation,
one existing air carrier subsidy program designed to promote general aviation is being replaced with a new program to provide
essential air services to small communities. The administration
expects the older subsidy to be terminated by 1984. Proposed
budget authority for air carrier subsidies is $51 million in 1984.
Water transportation.—To meet its Federal responsibility in
water transportation, the administration requests $3.0 billion in
budget authority for 1984, approximately the same as for 1983.
This will allow the Coast Guard to continue its safety and marine
law enforcement activities. The budget includes a proposal for user
fees to offset the cost of selected Coast Guard services. Estimated
outlays for subsidizing commercial ocean shipping decrease in 1984,
as the administration seeks to reduce the Federal role in this area.
Marine safety and transportation.—Coast Guard services include
search and rescue, maintenance of navigation aids, enforcement of
maritime laws, and other activities.
The administration requests $2.5 billion of budget authority in
1984 for Coast Guard operations and improvement of its shore
facilities and vessels. Two new large cutters and several smaller
ones will be commissioned and fleet modernization will be accelerated, resulting in expanded capabilities and substantial savings
from reduced maintenance costs. The Coast Guard's aircraft operations will be upgraded and expanded by the introduction of new
medium-range jet search aircraft and short-range recovery helicopters. Total flight hours in 1984 will be 36% higher than 1980 levels,
with an emphasis on law enforcement surveillance.
Coast Guard user fees.—Currently, most services rendered by the
Coast Guard to the public are provided without charge. The administration is again proposing that consumers of certain Coast Guard
services pay a user fee to cover some of the costs. These user fees
are estimated to provide $58 million in revenues in 1984.
5-72
THE BUDGET FOR FISCAL YEAR 1984
Ocean shipping.—Programs in ocean shipping are administered
by the Department of Transportation's Maritime Administration,
the Panama Canal Commission, and the Federal Maritime Commission. Outlays for ocean shipping are estimated to be $503 million in
1984, $91 million less than in 1983.
The Maritime Administration has traditionally provided two
types of subsidies to assist the U.S. merchant marine and shipbuilding industry. Operating subsidies offset the higher costs of
operating U.S.-flag vessels while construction subsidies offset the
higher costs of building vessels in U.S. shipyards.
A full review of maritime policies has determined effective methods for revitalizing the maritime industry. The administration supports the policy that subsidized U.S.-flag ship operators be permitted to build or acquire their vessels in foreign countries. Therefore,
the administration proposes to eliminate construction subsidies altogether. The budget provides an estimated $440 million in outlays
for operating subsidies in 1984 to meet the Government's obligations on existing contracts; no new contracts are anticipated. Administrative changes are expected to hold down escalating costs.
Finally, the administration has reaffirmed its support for laws that
provide that a portion of the cargoes shipped by the Federal Government be carried on U.S.-flag vessels.
Credit programs.—The Department of Transportation provides
direct loans and guaranteed loans for water, ground, and air transportation projects as shown in the accompanying table. The total
credit activity in this function is estimated to be $677 million in
1984, $234 million lower than in 1983. The decrease is due largely
to proposed elimination of guarantees of new commitments for the
purchase of aircraft and elimination of new direct loan obligations
for railroads.
The Maritime Administration guarantees construction mortgage
loans to build U.S.-flag vessels in the United States. It also makes
direct loans in the form of advances to operators to avoid defaults
on Government guaranteed loans. The administration is proposing
to limit loan guarantees to $900 million in 1984, $300 million of
which will be used only if needed for national security interests.
CREDIT PROGRAMS—TRANSPORTATION
(In millions of dollars)
Actual
1982
Direct loans:
Highway and mass transportation:
New obligations
Net outlays
Outstandings
69
-37
300
Estimate
1983
50
-22
278
1984
37
3
281
1985
32
23
304
1986
30
304
5-73
TRANSPORTATION
CREDIT PROGRAMS—TRANSPORTATION—Continued
(In millions of dollars)
Aid to railroads:
New obligations
Net outlays
Outstandings
Aid to railroads (loans made by the FFB):
New obligations l
Net outlays
Outstandings
Assistance to ocean shipping:
New obligations
Net outlays
Outstandings
U.S. Railway Association:
New obligations
Net outlays
Outstandings
Other transportation programs:
New obligations
Net outlays
Outstandings
Total, direct loans.New obligations.
Net outlays
Outstandings
Guaranteed loans:
Highways and mass transportation.Net change
Outstandings
Aid to railroads:
New commitments
Net change
Outstandings
Aircraft purchase loan guarantees:
New commitments
Net change
Outstandings
Assistance to ocean shipping:
New commitments
Net change
Outstandings
Total., guaranteed loans:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
Estimate
Actual
1982
1983
1984
1985
1986
44
-30
1,484
102
56
1,540
38
1,578
21
1,599
1,599
16
78
1,052
31
22
1,074
-13
1,061
-13
1,047
-13
1,035
24
12
158
25
19
177
25
20
198
25
20
218
25
20
239
-42
123
-64
58
-21
37
6
16
16
16
16
16
154
-18
3,117
214
26
3,143
62
28
3,171
57
51
3,185
55
8
3,192
-2
1,017
-2
1,015
-2
1,013
-3
1,010
-2
26
-37
214
17
-70
143
15
-10
133
15
-5
128
-130
-2
20
128
733
-32
701
-70
630
-104
527
-71
456
637
609
7,176
600
125
7,301
600
125
7,426
600
125
7,551
600
125
7,676
682
698
9,140
697
20
9,161
615
43
9,203
615
13
9,217
600
-78
9,139
836
911
677
672
655
* $500 thousand or less.
•These are obligations made by the agency to guarantee loans that the FFB will disburse. In effect, they are obligations for off-budget direct
loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency. Totais for loans for
aid to railroads made by FFB in this table are not identical to the entries in the addendum to the national needs table for off-budget Federal
entities due to timing differences between budget authority and new obligations.
5-74
THE BUDGET FOR FISCAL YEAR 1984
Tax expenditures.—In addition to direct Federal funding, two tax
expenditures provide assistance to shipping concerns and mass
transit systems. The 1984 estimates for these two tax expenditures
are $40 million and $15 million, respectively. Total tax expenditures for transportation are estimated to be $55 million in 1984.
5-75
COMMUNITY AND REGIONAL DEVELOPMENT
COMMUNITY AND REGIONAL DEVELOPMENT
National Needs Statement
Federal policy for community and regional development is directed toward promoting the viable economic and social growth
of urban and rural neighborhoods, communities, and regions.
This policy recognizes that private, State, and local decisions
and resources should have the primary role in community and
regional development.
Community and regional development that is effective and longlasting is promoted best by a sound and expanding economy. Such
an economy can be achieved only with reduced inflation and more
resources made available to the private sector. These goals remain
integral parts of administration policy, as is the return of authority, responsibility and flexibility to State and local governments for
the administration of programs. These governments know their
areas' needs best and can devise the most effective means of meeting those needs.
Federal programs supporting community and regional development provide grants, loans, loan guarantees, and technical assistance to States, cities, counties, intergovernmental and regional
organizations, insular areas, and Indian tribes. These programs
help recipients to address essential community, regional, and economic needs, and recover from unexpected disasters.
For 1984, the administration is requesting budget authority of
$6.1 billion for community and regional development, $0.5 billion
below that estimated for 1983. Outlays are estimated to decrease
from $7.4 billion in 1983 to $7.0 billion in 1984. For credit programs, 1984 direct loan obligations are estimated to be $1.0 billion
and guaranteed loan commitments are estimated to be $19 million.
NATIONAL NEED: COMMUNITY AND REGIONAL DEVELOPMENT
(Functional code 450; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Community development:
Community development block grants
Urban development action grants
Rental rehabilitation grants (proposed legislation).
Urban homesteading
Other programs:
Existing law
Proposed legislation
1982
actual
1983
estimate
1984
1985
estimate
1986
estimate
3,456 3,456 3,500 3,500 3,500
474 440 196 440 440
150 150 150
12
12
12
12
361
459
368
-26
385
-37
379
-45
5-76
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: COMMUNITY AND REGIONAL DEVELOPMENT—Continued
(Functional code 450; in millions of dollars)
Major missions and programs
Subtotal, community development
Area and regional development:
Rural development
Economic development assistance
Indian programs
Regional commissions
..
Tennessee Valley Authority
Offsetting receipts
Subtotal, area and regional development
Disaster relief and insurance:
SBA disaster loans
Disaster relief
National flood insurance fund
Other programs
Subtotal, disaster relief and insurance
Deductions for offsetting receipts
Total, budget authority
..
.. . .
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
4,291
4,367
4,200
4,450
4,436
590
224
1,156
159
129
-274
777
34
1,135
158
176
-277
890
18
1,080
964
9
1,196
1,004
7
1,231
75
-286
125
-334
112
-349
1,984
2,003
1,777
1,960
2,004
302
*
62
130
71
55
71
57
325
53
57
325
33
57
363
256
128
435
415
-34
-34
-34
-34
-34
6,604
6,592
6,071
6,812
6,821
3,792
388
3,525
488
3,526
512
12
20
12
3,474
479
75
12
3,497
439
150
12
392
456
412
-38
333
-40
284
-44
4,583
4,490
4,425
4,332
4,337
1,043 1,140
151
129
30
5
11
2
1,125 1,214
212
163
130
120
-2
-2
-286 -334
1,084
54
5
-349
2,437
2,231
OUTLAYS
Community development:
Community development block grants
Urban development action grants
Rental rehabilitation grants (proposed legislation)
Urban homesteading
Other programs:
Existing law
Proposed legislation
Subtotal, community development
Area and regional development:
Rural development
Economic development assistance
Local public works
Coastal energy impact assistance
Indian programs
Regional commissions
Tennessee Valley Authority
Other programs
Offsetting receipts
Subtotal, area and regional development
Disaster relief and insurance.
SBA disaster loans
Disaster relief
National flood insurance fund .
Other programs
Subtotal, disaster relief and insurance
Deductions for offsetting receipts
Total, outlays
917 1,163
412
295
40
30
29
18
1,078 1,076
341
274
192
200
1
-274 -277
2,735
2,779
2,415
-302
-194
-193
115
-18
85
-119
1,235
87
117
173 - 1 5 8
222
44
67
220
63
56
325
47
56
71
138
146
255
250
56
-34
-34
-34
-34
—34
7,165
7,373
6,951
6,990
6,784
5-77
COMMUNITY AND REGIONAL DEVELOPMENT
NATIONAL NEED: COMMUNITY AND REGIONAL DEVELOPMENT—Continued
(Functional code 450; in millions of dollars)
Major missions and programs
ADDENDUM
Off-budget Federal entities:
Rural Telephone Bank:
Budget authority
Outlays
Federal Financing Bank:
Community development:
Budget authority
Outlays
Rural development:
Budget authority
Outlays
Total:
Budget authority
Outlays
1982
actual
1983
estimate
1984
estimate
1985
estimate
estimate
159
79
152
145
150
143
150
143
150
143
90
43
155
119
216
134
1535
1060
1,191
686
1,644
664
1,010
415
278
248
1,784
1,181
1,498
950
2,009
941
1,215
540
427
284
55
- 1 8 -106
Community development—Several Federal programs, most of
which are administered by the Department of Housing and Urban
Development, support community development in both rural and
urban areas.
Community development block grants (CDBG).—The community
development block grant program provides flexible community and
economic development support to cities, counties, Indian tribes, and
U.S. territories. Funds are allocated by formula to large cities and
urban counties. States also receive funds to distribute to their
smaller communities and rural areas by methods they design.
For 1984, the administration proposes two important changes to
this program:
• To provide recipients more flexibility in addressing their individual community and economic development needs, new
housing construction is proposed as an eligible activity.
• To meet more adequately the special community and economic development needs of Indian tribes, the administration is
proposing a demonstration block grant program for Indian
tribes. Proposed budget authority is $75 million, an increase
of $44 million over the amount being allocated to Indian
tribes in 1983 through the current categorical program.
Urban development action grants (UDAG).—This competitive
grant program is designed to generate economic growth and jobs in
distressed areas. Financial assistance is provided to selected localities and Indian tribes and is used with private and local resources
to promote locally designed economic revitalization projects that
380-000
0 - 8 3 - 1 3
: QL 3
5-78
THE BUDGET FOR FISCAL YEAR 1984
could not go forward without Federal assistance. The total budget
resources for 1984 are $440 million, financed with $196 million in
new budget authority and $244 million in excess 1983 resources
deferred until 1984. In addition, any recaptures of earlier obligations (now estimated at $36 million) will also be used in 1984.
Outlays are anticipated to peak at $512 million in 1984.
Rental rehabilitation grants.—The administration is again proposing $150 million in budget authority for this new program,
which Congress failed to approve last year. This program would
help States and localities rehabilitate rental properties, principally
for lower-income households. Designed to leverage private investment capital, passage by Congress would result in the rehabilitation of an estimated additional 30,000 housing units annually.
Housing payments, described in the income security section, would
be provided to eligible low-income renters to help them afford these
rehabilitated units.
Urban homesteading.—Here also, the Congress failed to pass an
important piece of legislation that would allow the administration
to expand its urban homesteading program to test the feasibility of
multifamily homesteading. This expanded program would not only
improve blighted neighborhoods, but also provide additional homeownership opportunities to lower-income households who cannot
afford the higher expenses of single-family homeownership. This
legislation will be reproposed. Outlays for 1984 are estimated to be
$12 million.
Area and regional development—Programs in this category support rural development, American Indian tribal governments, and
multi-State regional development.
Rural development—The Department of Agriculture administers
a variety of programs for developing rural areas. For rural water
and waste disposal systems, the 1984 budget provides $250 million
in direct loan obligations and $90 million in budget authority for
grants. Direct loan obligations of $100 million are provided for 1984
for community facilities. These programs are proposed for inclusion
in the administration's federalism initiative, described in Special
Analysis H. Rural areas can also receive assistance from the Department of Housing and Urban Development's community development block grant program. Outlays for rural development programs are estimated to be $1.2 billion in 1983 and $1.0 billion in
1984.
Economic development assistance.—The Department of Commerce's Economic Development Administration (EDA) provides assistance to States, communities, and Indian tribes that is intended
COMMUNITY AND REGIONAL DEVELOPMENT
5-79
to reduce unemployment in economically distressed areas and to
help overcome problems of economic adjustment.
The administration is maintaining the policy of phasing out all
EDA activities as soon as possible in 1983 and has requested no
program funds in 1984.
Funds for community and economic development programs will
continue to be available in 1984 through the community development block grant and urban development action grant programs.
Specialized assistance for rural areas will continue to be available
through the Farmers Home Administration.
Indian programs,—The three major objectives of Federal Indian
policy are to meet the trusteeship responsibilities of the U.S. Government, to increase self-determination for American Indian tribal
governments, and to encourage economic development on Indian
reservations. To further these objectives, the Federal Government
provides grants, training, technical assistance, direct Federal loans,
loan guarantees, and interest subsidies designed to strengthen
tribal management and encourage a variety of economic and community development activities.
Outlays for the Indian programs and for miscellaneous trust
funds for regional development are estimated to be $1.1 billion in
both 1983 and 1984. The 1984 budget also includes a new demonstration block grant program within the community development
block grant program and sets funds aside specifically for Indian
housing. Total outlays government-wide for special programs for
members of federally recognized Indian tribes amounts to $2.6
billion in 1984. This is in addition to the miscellaneous trust funds
and the funds Indians receive from Federal programs available to
all qualifying U.S. citizens.
Regional commissions.—The Appalachian Regional Commission's
programs are intended to support development in the thirteen
State region.
The Appalachian Regional Commission (ARC) and its nonhighway and access roads programs are proposed for termination at the
end of 1983. The Appalachian development highway system will
continue to be funded from the highway trust fund in the Department of Transportation. The Appalachian system will be terminated by the end of 1986. The system is eligible for funding through
Federal-aid for highways, and continued construction after 1986
would be through this funding mechanism, at the discretion of the
States. This reflects the administration's policy of relying on the
private sector and State and local governments to provide the
stimulus for economic development.
5-80
THE BUDGET FOR FISCAL YEAR 1984
Tennessee Valley Authority (TVA).—TVA programs in this function are aimed primarily at strengthening the economic and natural resource base of the seven State region it serves. Support in
such areas as economic and community assistance; land, water,
forest and agricultural development; and fertilizer research, development and introduction are among the activities sponsored. Outlays for TVA's activities in this function are estimated to be $130
million in 1984.
Disaster relief and insurance.—Insurance against losses from
floods, hurricanes, tornadoes, and other natural disasters is primarily the responsibility of individuals and businesses. State and local
governments aid recovery, when necessary, and Federal insurance
and disaster relief programs are available to supplement State and
local resources when they are insufficient.
SBA disaster loans.—The Small Business Administration (SBA)
provides loans to homeowners and non-agricultural businesses that
suffer losses as a result of physical disasters, such as hurricanes or
floods. Loan repayments for this program are estimated to exceed
gross outlays by $193 million in 1984.
Disaster relief.—The Federal Emergency Management Agency
administers the Federal disaster assistance program. This nationwide program provides supplemental assistance to individuals, and
State and local governments in the event of a Presidentially declared emergency or disaster. In addition, States or Federal agencies may be reimbursed for disaster relief work performed under
this authority.
It is difficult to forecast levels of disaster activity with any
degree of certainty. Demands on the fund were light in 1981 and
1982. As a result, the existing balance in the fund increased to over
$500 million through unused appropriations. This balance is estimated to be sufficient for 1983 and 1984.
National flood insurance fund.—The Federal Emergency Management Agency operates a national program of direct Federal
flood insurance at subsidized rates. Over the past 5 years, the
program has cost the taxpayer approximately $150 million per
year. The proposed 1984 budget continues the plan to phase out
this costly subsidy by 1988 through a series of rate increases. This
plan supports the administration's policy of recovering clearly allocable costs of flood insurance from those who receive the benefits
of this program. The change will eliminate a substantial portion of
the subsidy that the taxpayer now provides and discourage uneconomical development in flood prone areas. Outlays for this program are estimated to be $63 million for 1984.
5-81
COMMUNITY AND REGIONAL DEVELOPMENT
Credit programs.—For a number of programs in this function,
the amount of credit activity is only partially reflected by budget
authority and outlays. As shown in the table, total credit activity is
estimated to be $1.0 billion in 1984, $0.8 billion less than in 1983.
Direct loan obligations are estimated to decrease by $0.4 billion
from 1983 to 1984 primarily due to a proposed reduction in rural
development lending discussed earlier, and guaranteed loan commitments are estimated to decrease by $0.3 billion also in rural
develpment programs.
CREDIT PROGRAMS—COMMUNITY AND REGIONAL DEVELOPMENT
(In millions of dollars)
Actual
1982
Direct loans:
Rural development insurance fund (FmHA):
New obligations 1
Net outlays
Outstandings
Rural development insurance fund (FmHA) (loans held by
FFB): *
Net outlays
Outstandings
Economic development assistance:
New obligations
Net outlays
Outstandings
Small Business Administration disaster loans:
New obligations
Net outlays
Outstandings
Rural Telephone Bank:
New obligations
Net outlays
,
Outstandings
Other:
New obligations
Net outlays
Outstandings
Other (loans made by the FFB): 2
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations
Net outlays
Outstandings
Guaranteed loans:
Rural development insurance fund (FmHA):
New commitments
Net change
Outstandings
Economic development assistance:
New commitments
Net change
Estimate
1983
1984
1985
1986
568
-132
153
518
21
173
360
-108
65
406
362
65
65
1,060
6,403
686
7,089
664
7,753
415
U69
248
8,416
14
-107
782
-36
746
-199
547
-100
447
-100
347
237
-371
6,073
440
-332
5,741
440
-274
5,467
-252
5,215
-234
4,981
185
102
1,173
185
173
1,345
185
171
1,516
185
170
1,686
185
166
1,852
56
-146
1,496
108
9
1,505
16
22
1,527
19
-70
1,457
19
-85
1,372
179
43
150
225
119
269
134
403
-18
352
-106
247
1,239
448
16,230
1,475 1,001
640
409
16,869 17,279
139
-11
3,387
300
-61
3,326
14
-70
-82
-274
3,051
1,049 1,006
145 -111
17,390 17,280
-457
2,595
-80 -
-609
1,986
-80
5-82
THE BUDGET FOR FISCAL YEAR 1984
CREDIT PROGRAMS—COMMUNITY AND REGIONAL DEVELOPMENT—Continued
(In millions of dollars)
Actual
1982
Outstandings
Small Business Administration disaster loans:
New commitments
Net change
Outstandings
Other:
New commitments
Net change
Outstandings
Total, guaranteed loans:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
1983
1984
1985
1986
629
547
467
387
307
6
3
11
-3
8
-3
5
-2
3
-1
2
28
-45
262
21
-52
210
19
1
211
30
-26
218
31
-11
228
186
-122
4,290
321
-198
4,091
19
-357
3,734
30
-565
3,203
31
-678
2,523
1,425
1796
1,020
1,079
1,037
•The direct lending activities of the Farmers Home Administration (FmHA) are financed by the Federal Financing Bank (FFB). Certificates of
beneficial ownership (CBO's) are issued by the FmHA. According to law, these certificates are backed by loans that the agency continues to
service. FmHA guarantees the CBO's, sells them to the FFB, and repurchases them upon maturity. FFB net outlays for REA represent acquisition
of CBO's less repurchases by FmHA. Increases in the volume of sales of CBO's are added to FFB direct loan outstandings, while the FmHA's
direct
loan outstandings decrease by the amount of CBO's sold to the FFB.
2
These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
Tax expenditures.—Congress has not yet approved the President's enterprise zone proposal to test a free-market approach to
our Nation's urban problems. The administration will seek swift
congressional approval this year. Past Federal efforts to revitalize
our distressed urban areas have been largely unsuccessful and
much too expensive, in part because they often neglected to work
with our country's greatest productive force, the private sector. To
rectify this, the enterprise zone legislation would reduce business
tax and regulatory burdens, provide employment incentives, and
increase local services in clearly delineated, distressed areas. Tax
expenditure estimates for enterprise zones are $265 million in 1984.
Direct Federal funding for community and regional development
is supplemented by several other tax expenditures. Under certain
conditions, taxpayers may elect to amortize rehabilitation expenditures for low- and moderate-income rental housing over a 5-year
period. The 1984 tax expenditure for this provision is $70 million.
A tax credit of 15% is also available for rehabilitation of nonresidential buildings 30 to 39 years old and 20% for rehabilition of
nonresidential buildings over 39 years old. For 1984, the estimate
for this program is $460 million. Total tax expenditures for community and regional development for 1984 are estimated to be $535
million.
COMMUNITY AND REGIONAL DEVELOPMENT
5-83
Related programs.—Many programs that fulfill other national
needs as their primary purpose also promote community and regional development. For example, Federal outlays for all civil
public works and grants for local health, education, transportation
and general revenue sharing programs support State and local
development. Community development is also encouraged by other
Federal activities, including defense contracting, management of
public forests and parks, and the operation of Federal facilities,
such as Veterans Administration hospitals, naval shipyards, and
NASA research facilities.
5-84
THE BUDGET FOR FISCAL YEAR 1984
EDUCATION, TRAINING, EMPLOYMENT, AND
SOCIAL SERVICES
National Needs Statement
Federal programs for education, training, employment, and
social services are intended to: (1) assist parents, States, and
localities in providing education, especially for educationally
disadvantaged, low-income, and handicapped persons; (2) assist
economically disadvantaged or dislocated workers in finding
permanent, unsubsidized employment opportunities; (3) help
employers and employees maintain stable and productive relations; and (4) help provide social services for needy children,
families, the elderly, and other groups.
The Federal role in meeting education, training, employment,
and social services needs should be limited to those specific areas
where a demonstrated Federal responsibility exists and is of sufficient priority to warrant scarce Federal budget resources. Historically, the responsibility for meeting most of these needs has rested
with State and local governments and the private sector. Total
outlays for this function are estimated to be $25.3 billion for 1984.
This is a 5.3% decrease from the 1983 level of $26.7 billion.
The major 1984 changes in education, training, employment, and
social services would:
• redesign student financial aid for higher education so families
and students pay their fair share of the costs as a condition
for eligibility for Federal grants; and
• implement the new Job Training Partnership Act, which restructures the delivery system and creates a partnership between government and the private sector in the planning and
providing of job training and employment services.
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-85
NATIONAL NEED: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
(Functional code 500; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Education:
Elementary, secondary, and vocational education:
Education for the disadvantaged
State education block grant
Science and math education (proposed legislation)
Indian education
Impact aid
Education for the handicapped
Vocational and adult education:
Existing law
Proposed legislation
Other
Subtotal, elementary, secondary, and vocational education
Higher education:
Student aid
Self-help grants (proposed legislation)
College work study
Guaranteed student loans:
Existing law
Proposed legislation
Pell grants
Supplemental educational opportunity
grants
State student incentive grants
National direct student loans
Institutional aid
Subtotal, higher education
Research and general education aids..
Subtotal, education
Training, employment, and labor services:
Training and employment:
Block grants to States*
Summer youth employment:
Existing law
Proposed legislation
Assistance to dislocated workers
Job Corps
Older Americans employment
Work incentive program
Other training programs
Federal-State employment service
Forward funding of training and employment
programs
Subtotal, training and employment..
Other labor services
Subtotal, training, employment, and
labor services
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
3,041
442
3,034
451
3,014
451
3,014
451
3,014
451
343
466
1,069
318
475
1,110
50
250
465
1,110
50
255
465
1,108
50
261
465
1,101
742
824
300
190
7
493
190
7
493
189
7
493
188
6,403
6,402
6,030
6,032
6,030
(6,644)
(5,768)
528
540
(5,615)
2,714
850
(5,607)
2,714
850
(5,599)
2,714
850
2,169
-122
2,238
-199
2,161
-130
3,074
2,200
2,419
2,419
355
74
194
757
355
60
194
675
6,444
4
587
6,202
4
583
6,190
4
580
6,178
14,803
1,023
13,869
867
13,099
832
13,054
843
13,051
1,525
2,181
1,886
1,886
1,886
675
725
-85
50
586
282
271
343
824
725
-87
240
586
725
-87
240
586
725
-87
240
586
293
886
279
938
279
992
912
5,441
11
4,578
12
4,632
692
700
5,270
5,332
7,401
999
25
583
277
281
263
757
4,386
5,175
643
4,986
5,818
6,123
5-86
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES—Continued
(Functional code 500; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
Social services:
Social services block grant
Rehabilitation services:
Existing law
Proposed legislation
Community service programs
Family social services
Services for children, youth, and families
Services for the elderly and other special groups.
Domestic volunteer programs
Other social services
Subtotal, social services..
Deductions for offsetting receipts.
Total, budget authority
OUTLAYS
Education:
Elementary, secondary, and vocational education:
Education for the disadvantaged
State education block grant
Science and math education (proposed legislation)
Indian education
Impact aid
Education for the handicapped
Vocational and adult education:
Existing law
Proposed legislation
Other
Subtotal, elementary, secondary, and vocational education
Higher education:
Student aid
Self-help grants (proposed legislation)
College work study
Guaranteed student loans:
Existing law
Proposed legislation
Pell grants
Supplemental
educational
opportunity
grants
State student incentive grants
National direct student loans
Institutional aid
Subtotal, higher education..
Research and general education aids..
Subtotal, education
2,400
2,450
952
1,037
378
465
926
792
132
49
2,500
2,600
2,700
1,037
3
601
1,068
1,125
110
31
6,475
1,037
1,037
359
560
940
827
129
48
6,350
601
1,068
1,125
110
31
6,572
601
1,068
1,125
110
31
6,672
25,854
-42
25,996
-57
25,640
-73
24,823
-84
24,970
2,954
48
3,024
355
3,016
440
3,017
451
3,014
451
339
546
1,141
330
572
1,128
6
270
499
1,160
40
248
478
1,100
50
251
468
1,107
818
773
934
364
781
20
245
236
365
190
42
473
186
6,780
6,546
6,437
6,125
6,042
(5,755)
(5,922)
533"
568"
(5,507)
407
545
(5,788)
2,171
842
(5,601)
2,578
850
3,023
2,284
1,589
'7,408'
2,134
-102
1,991
2,235
-194
730
2,157
-124
136
371
57
182
751
395
63
204
819
6,739
325
14
193
608
6,084
4
475
6,263
4
420
6,021
1,118
14,403
999
13,520
874
13,262
841
12,904
6,094
-29
6,507
1,040
14,327
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-87
NATIONAL NEED: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES—Continued
(Functional code 500; in millions of dollars)
Major missions and programs
Training, employment, and labor services:
Training and employment:
Block grants to States 1
Summer youth employment:
Existing law
Proposed legislation
Assistance to dislocated workers
Job Corps
Older Americans employment
Work incentive program
Other training programs
Federal-State employment service
Expired programs
Subtotal, training and employment
Other labor services
Subtotal, training, employment, and
labor services
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
2,374
2,039
1,851
1,886
1,886
679
7
570
269
235
325
731
274
729
-76
47
605
278
315
387
812
14
725
-87
204
589
211
26
315
886
725
-87
240
586
725
-87
240
586
285
938
280
992
5,464
5,150
4,719
4,572
4,621
589
633
680
6,053
5,783
5,400
5,264
5,321
2,567
2,571
2,500
2,600
2,700
780
1,038
106
964
1,037
387
389
853
784
136
55
421
565
939
814
132
52
213
798
100
590
999
1,033
113
47
608
1,068
1,126
110
33
601
1,068
1,121
110
31
5,950
6,530
6,394
6,615
6,668
691
699
Social services:
Social services block grant
Rehabilitation services:
Existing law
Proposed legislation
Community services programs
Family social services
Services for children, youth, and families
Services for the elderly and other special groupsDomestic volunteer programs
Other social services
Subtotal, social services
Deductions for offsetting receipts
Total, outlays
-29
42
57
-73
84
26,300
26,676
25,256
25,068
24,809
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Student Loan Marketing Association:
Budget authority
Outlays
1
700
700
In 1982, 1983, and 1984 the numbers include programs replaced by the block grant.
EDUCATION
The Federal Government has traditionally played a limited role
in financing education. About 10% of the total national support for
education comes from the Federal Government. However, the Federal Government's actual spending on specific education programs
and its prescriptive regulations increased substantially in the
1960's and 1970's, resulting in a growing and inappropriate influ-
5-88
THE BUDGET FOR FISCAL YEAR 1984
ence on parental, State, and local education decision making. The
administration has moved forcefully to change that trend. Actions
taken to date include: enactment in 1981 of the Education Consolidation and Improvement Act to simplify the largest compensatory
education grant program and to combine some 30 small grant
programs into one flexible State and local block grant; review and
simplification of regulations in several programs; reduction of unnecessary intrusion in local affairs; and slowing of the excessive
growth in spending.
The administration continues to believe that a Cabinet-level
agency for education is inappropriate and unnecessary and will
work with the Congress to develop a different structure more appropriate for the Federal role in education.
In 1984, the budget would continue these broad policies with the
following goals:
• hold education spending in most major programs to current
levels; and
• propose major legislative initiatives for:
—student aid, to restore emphasis on family and student
responsibility in meeting postsecondary education costs
and to provide tax advantages to those who save to pay
education costs;
—tuition tax credits, to help families exercise choice in
obtaining quality education for their children;
—compensatory education, to allow States and localities the
option of using funds to finance vouchers that enhance
the opportunities for choice in the provision of compensatory education services; and,
—science and mathematics learning, to assist States in
training additional teachers.
Federal spending in 1984 is expected to continue the policy of the
last 2 years in stopping the excessive rates of past growth. For
1984, the administration proposes $13.1 billion in budget authority
for education programs, $0.7 billion less than is proposed in 1983.
Outlays are estimated to be $14.4 billion for 1983 and $13.5 billion
for 1984. These estimates assume congressional approval of rescissions of $330 million of 1983 budget authority for discretionary
programs. Another $900 million is proposed for rescission to eliminate unneeded budget authority for the guaranteed student loan
program. This rescission would have no effect on policy or program
activity. Some education programs may be included in the federalism initiative, described in Special Analysis H: "Federal Aid to
State and Local Governments," in the Special Analyses volume of
the 1984 Budget
Elementary, secondary, and vocational education.—The budget
includes an estimated $6.4 billion in outlays in 1984 for these
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-89
programs. Most funds are to assist States and localities educate
students with special needs.
Education for the disadvantaged.—The largest share of the funds
for elementary and secondary education goes to States and localities for supplementary compensatory education services to lowachieving students under Chapter 1 of the Education Consolidation
and Improvement Act (ECIA) of 1981. In the 1984-85 school year,
approximately 13,800 school districts in all 50 States, the District of
Columbia, Puerto Rico, and the outlying areas will participate in
these programs. The 1984 request of $3.0 billion in budget authority is approximately the same as the 1983 request. For 1984, the
administration will propose legislation to give States and local
educational agencies the option of providing compensatory education services through a voucher system.
State education block grant—Chapter 2 of the ECIA combined
about 30 categorical program authorities into one block grant.
State and local education agencies determine which of the authorized activities in the Act most appropriately address local educational priorities. In 1984, $451 million in budget authority is requested for State education block grants, the same amount provided in 1983.
Science and math education.—Legislation is proposed to provide
$50 million in budget authority to States for training additional
teachers in science and mathematics. Combined with National Science Foundation support for science and technical education (see
the discussion in general science, space, and technology), this initiative represents a substantial commitment to helping the States
reverse the disturbing decline in the quality of science and mathematics learning in America.
Indian education.—Education of Indians is largely carried out by
local public schools or the Bureau of Indian Affairs through direct
operation of schools, support of tribally operated schools, and financial assistance to public schools that serve Indian children. The
Indian education program in the Department of Education is proposed to be phased down in 1983 and terminated in 1984; educationally disadvantaged individuals served in this program are eligible for a number of other education programs. Total estimated
outlays for Indian education are $270 million in 1984, compared
with $330 million in 1983.
Impact aid.—This program compensates local school districts
deemed adversely affected by Federal activity. Proposed budget
authority of $465 million in 1984 will be made directly available to
local districts, which will use the funds for operating expenses and,
5-90
THE BUDGET FOR FISCAL YEAR 1984
in some cases, construction. School districts will receive payments
only on behalf of children who live on Federal property including
Indian lands and whose parents work on Federal property. Payments would be made to approximately 1,700 school districts on
behalf of 330,000 children.
Education for the handicapped.—Grants to States and other programs help States and localities educate handicapped children. For
1984, $1.1 billion in budget authority is requested, the same
amount as provided in 1983.
Vocational and adult education.—Vocational education funds
assist youth in preparing for careers and assist adults who need job
training or retraining. The adult education program provides formula grants to States to reduce functional illiteracy. Budget authority of $500 million is requested for 1984, a $324 million decrease from 1983. Federal funds are 10% or less of all vocational
training, a share that has been declining for some time. Legislation
will be proposed to provide States and localities with greater flexibility in the use of these funds.
Higher education.—The administration requests $6.2 billion in
budget authority and $6.1 billion in estimated outlays to support
higher education in 1984.
Student aid.—Student aid grants—in combination with the family's contribution, student work, loans, and other sources of self
help—are intended to support the student's effort to meet the costs
of, and thereby gain access to, postsecondary education. Under
current law, schools and students can assemble monies from as
many as six different Federal programs (plus other sources of aid)
to pay for education costs in ways that require only limited contribution from the family and none from the student before receiving
a Federal grant.
The 1984 budget would restore the primary roles of the family
and the student in meeting the responsibility for postsecondary
educational costs. Legislation will be proposed that will require
every student to contribute to the cost of education before receiving
a Federal grant. This change is essential to re-establish a Federal
system that encourages rather than supplants student self-help
efforts. The proposal provides low-income students with more direct
Federal grant aid than they would receive under current law.
For 1984, $5.6 billion in budget authority is requested, of which
$2.7 billion is for self-help grants, $850 million is for work-study,
and $2.0 billion is for the cost of guaranteed student loans.
Proposed legislation would restructure the Pell grant program
into a self-help grant program that supplements the student's self-help
effort. After taking into account the family contribution, the stu-
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-91
dent would be required to provide at least 40% of educational costs.
Student contributions would be financed preferably through
summer and part-time earnings or through the expanded workstudy program, although loans and other sources of funds may also
be used. Self-help grants would then be available to meet remaining costs. The grant would be increased from the present Pell grant
maximum of $1,800 to a self-help grant maximum of $3,000. This
will provide support to low-income needy students at a wider range
of schools.
College work study budget authority would be increased by more
than 50% to $850 million in 1984 in order to increase opportunities
for students to meet their self-help contribution requirement
through work. The additional funding would expand student employment on campuses, in State and local governments, and in the
private non-profit sector.
The guaranteed student loan (GSL) program, another major
source for the student self-help contribution, would continue as
under current law with two significant changes. First, all applications would be subject to a need analysis to ensure that Federal
interest subsidy benefits do not go to those who do not need them.
Under current law, only applications from students with family
income of more than $30,000 are subject to a need analysis. Second,
graduate and professional students (who would continue to be eligible for regular GSLs) would pay a 10% origination fee (increased
from 5%). This reduction in the interest benefits for these students
recognizes that these students can be expected to earn a substantially higher income than the general population and, therefore,
can afford to pay more toward the interest costs of their subsidized
loans.
The supplemental educational opportunity grants, State student
incentive grants, and new Federal capital contributions to the national direct student loan program would not be funded in 1984.
In addition, administrative actions will continue to improve the
accuracy of student assistance payment determinations; ensure
that student assistance payments are used for educational purposes; and ensure that participating schools employ uniform standards of academic progress. Verification activities will be expanded
to include student loan and campus-based student aid program
applications and awards. Legislation also will be proposed to simplify the overly complex student assistance eligibility and award
determinations.
A major initiative is underway to reduce defaults in student
loans and other education loan programs, to accelerate and improve collection efforts of lenders and State loan guarantee agencies, and to expand and improve the collection effort of the Federal
Government on loans it guarantees or that have been assigned to it
5-92
THE BUDGET FOR FISCAL YEAR 1984
for collection. In 1984, there are expected to be $4.3 billion in
outstanding defaulted education program loans. The debt collection
target for education loans and recovery of overpayments for 1984 is
$1.0 billion, $450 million over the amount collected in 1982 and
$225 million more than the 1983 goal.
Institutional aid.—The administration requests budget authority
in 1984 of $587 million for general institutional assistance. Funding
for the historically black colleges under Title III of the Higher
Education Act provides grants to strengthen the management of
these institutions. For these institutions the administration requests budget authority of $46 million, $3 million more than the
level requested in 1983.
The American Printing House for the Blind (APHB) (classified in
elementary, secondary, and vocational education), Gallaudet College, the National Technical Institute for the Deaf, and Howard
University are private institutions that receive substantial operating and capital subsidies from the Federal Government. The 1984
request for special institutions for higher education is $248 million
in budget authority, an increase of $20 million over 1983. Legislation will be proposed to require States to pay 10% of the costs for
materials now provided at Federal expense by the APHB.
Budget authority of $293 million is requested in 1984 for other
general institutional aid programs such as special services for the
disadvantaged, mandatory payments for certain loan programs,
and Title III Higher Education Act funding for institutions other
than historically black colleges. The administration is proposing no
funding in 1984 and a rescission that would result in no funding for
1983 for a number of the general institutional assistance programs
such as cooperative education, talent search, public service fellowships, and certain special endowments of individual schools. These
actions are proposed because these programs are of lower priority
or were designed to serve special groups that are eligible for assistance under other higher education programs.
Research and general education aids.—The administration requests $0.9 billion in 1984 budget authority for educational research and statistics, cultural activities, and other general education.
The administration is requesting $249 million in budget authority for the three agencies of the National Foundation for the Arts
and Humanities, $179 million for the Library of Congress and $214
million for the Smithsonian Institution. Budget authority of $225
million is requested for other research and general education programs.
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-93
Credit programs.—The total credit budget in this function is
proposed to be $7.8 billion in 1984, $0.5 billion above the 1983 level.
The largest credit program in this function is the guaranteed student loan program. This program subsidizes interest and guarantees the repayment of loans made by commercial and non-profit
institutions to students and their parents for higher education. The
administration is anticipating new commitments of $7.4 billion for
guaranteed loans in 1984. New commitments have increased dramatically from $1.8 billion in 1977. This increase is partially offset
by a proposed decrease for new obligations for direct student loans
for student financial assistance, which is part of the overall policy
to consolidate the student aid programs and emphasize family contributions and student self-help in meeting the expenses of postsecondary education.
CREDIT PROGRAMS—EDUCATION
(In millions of dollars)
Actual
1982
Estimate
1983
1984
1985
1986
289
162
1,525
391
335
1,860
424
230
2,090
524
266
2,356
574
398
2,754
175
466
4,790
179
125
4,915
126
5,042
-56
4,986
-66
4,919
700
700
5,000
5,000
5,000
5,000
5,000
Direct loans.Guaranteed student loans:1
New obligations
Net outlays
Outstanding
Student financial assistance:
New obligations
Net outlays
Outstanding
SLMA obligations (loans made by FFB):
New obligations 2
Net outlays
Outstandings
Other education.New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations....
Net outlays
Outstandings
40
13
3,543
40
10
3,553
-61
3,492
-149
3,343
-124
3,219
1,204
1,341
14,859
570
470
15,329
424
294
15,623
524
62
15,685
574
207
15,892
Guaranteed loans:
Guaranteed student loans-.
New commitments
Net change
Outstandings
6,195 6,778 7,391
4,985 2,900 2,300
22,700 25,600 27,900
Total credit budget (new obligations and new
commitments)
1
These
2
7,399
7,348
7,815
7,858 8,354
1,700
1,600
29,600 31,200
8,382
8,928
are purchases of defaulted guaranteed student loans from lenders, prior to Federal collection efforts.
These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
380-000 O - 83 - li+ : QL 3
5-94
THE BUDGET FOR FISCAL YEAR 1984
Tax expenditures.—The major tax expenditures under current
law that aid higher education are the exclusion of interest on State
and local student loan bonds, the personal income tax exemptions
available to parents of children age 19 and over who are in school,
the deductibility of charitable contributions to educational institutions, and employer educational assistance plans. The tax expenditure estimates for these provisions in 1984 are $240 million, $945
million, $805 million, and $15 million, respectively. Total tax expenditures for education are estimated to be $2.0 billion in 1984.
The administration will again propose legislation for a tuition
tax credit for parents who choose to send their children to qualified
private elementary and secondary schools. This is an essential
measure that supports freedom of educational choice and is expected to help improve all aspects of elementary and secondary education. This tax expenditure is estimated to be $630 million in 1984.
The administration is also proposing educational savings account
legislation that will encourage savings to cover the costs of postsecondary education by making the interest and dividends on such
accounts tax exempt. This proposal would be effective January 1,
1984. The tax expenditure is estimated to be $35 million in 1984.
TRAINING, EMPLOYMENT, AND OTHER LABOR SERVICES
Programs that carry out the training and employment mission
are intended to improve the operation of the labor market and
enhance individuals' long-term employment and earnings prospects. The major programs provide training that is intended to
develop and improve work skills or provide job counseling and
labor exchange services that match workers and jobs. Other labor
services programs include the regulation of employer-employee relations and the publication of labor statistics. The budget includes
$5.4 billion in estimated outlays for these activities in 1984, a
reduction of $0.4 billion from the 1983 estimate of $5.8 billion.
Training and employment—Training and employment activities
are financed through grants to States for training, summer youth
employment programs, assistance to dislocated workers, and the
Employment Service; and through various national programs, including the Job Corps. Legislation enacted in 1982 will enhance the
operation of our Federal system in this area by providing States
with more flexibility in the use of grants for training and the
Employment Service.
Block grants to States.—Under the new Job Training Partnership
Act of 1982 (JTPA), general Federal assistance to States for training has been consolidated into a block grant, providing them the
discretion to use the resources to address their most pressing training and employment problems. Each State, planning and operating
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-95
with the close cooperation of private sector employers, can design
programs and service mix to meet its economic situation. Directing
resources to the States permits increased coordination with other
programs which are intended to provide training and to improve
the operation of the labor market, such as vocational and adult
education and the Employment Service, and which are already
primarily the responsibility of State governments. The cooperation
of private sector employers will ensure that disadvantaged people
are trained for real jobs. Although few restrictions are included in
the Act, 70% of the grant amount must be used for training. In the
past, an average of only 18% of Federal aid went for training, with
the remainder being spent on income transfers, administration,
and various support services. As a result, it is expected that the
$1.9 billion in budget authority requested for 1984 will support
406,000 years of service, compared to 303,000 to be served under
the replaced programs in 1983.
Outlays for the job training block grant are estimated to be $1.9
billion in 1984.
Summer youth employment—The new Job Training Partnership
Act continues the summer youth employment program that subsidizes public sector jobs during the summer months for youth between the ages of 14 and 20. Estimated outlays of $638 million in
1984 will provide approximately 718,000 summer jobs, about the
same as in 1983. Legislation will be proposed to reduce the minimum wage for youth during the summer months to enable employers to afford to hire unskilled youth. Such youth will then be able
to obtain invaluable work experience. The legislation will have the
secondary effect of reducing the cost of these subsidized jobs in
both 1983 and 1984, as reflected in the estimates.
Assistance to dislocated workers.—JTPA also authorizes a new
program of grants to States to help them assist unemployed workers who are unlikely to return to their previous jobs or occupations. Such workers can be helped into new fields of endeavor
through identification of alternative occupations that fit their
skills, training in new skills for which demand exceeds supply,
assistance in finding suitable new jobs, and payment of the costs of
a worker's move to a new location when he has found a long-term
job. States must contribute their own money to the readjustment
effort in a ratio that depends upon each State's unemployment
experience. These matching funds can include amounts provided by
other State or local programs (such as vocational education) and
State unemployment compensation paid to workers undergoing retraining in this program. Proposed budget authority of $240 million
for this program in 1984 will provide for assistance to approximately 96,000 dislocated workers. A previous program of training and
5-96
THE BUDGET FOR FISCAL YEAR 1984
relocation services only to those deemed displaced by increased
imports (for which $25 million was provided in both 1982 and 1983)
expires at the end of 1983.
Job Corps.—The Job Corps residential training program will continue to provide approximately 40,000 years of service in 1984, the
same as in 1983. Outlays are estimated to be $589 million in 1984.
Older Americans employment—Although separate 1984 budget
authority for the program providing part-time public service employment for older workers is not being requested, the authority
for such jobs will continue under the consolidated grants for services to older Americans discussed under social services, below. Estimated outlays of $211 million in 1984 represent the costs of these
jobs financed through June 30, 1984, with separate 1983 budget
authority.
Work incentive program.—This program has financed job services, training, and public service employment to recipients of aid to
families with dependent children (AFDC). This separate categorical
program has not been demonstrated to be cost-effective. The administration proposes mandatory work programs for appropriate
AFDC recipients, discussed in the income security function, and
the Job Training Partnership Act requires that eligible AFDC recipients be served on an equitable basis with others. Therefore, the
need for a separate jobs program for AFDC recipients no longer
exists and no budget authority is requested for the work incentive
program for 1984.
Other training programs.—In 1984 estimated outlays of $315 million will be spent on other national training activities, including
special programs for veterans, native Americans, and migrant and
seasonal farm workers. In addition, new training approaches will
be designed and tested, labor market information development will
be supported, training programs will be evaluated, and technical
assistance, training, and other support and administrative services
will be provided to the State-operated programs.
Federal-State employment services.—The Job Training Partnership Act of 1982 also revised the Wagner-Peyser Act, originally
enacted in 1933 to support State activities designed to match jobs
and workers. The revised law now provides States with greater
flexibility in the planning and operation of the basic employment
services, while enabling a greater coordination by the States between the employment service and Federal training activities.
Grants for these basic employment services will be allocated among
the States by formula. In addition, employment service activities
designed to serve national needs, such as services to veterans and
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-97
collection of general purpose labor market statistics, will be financed through specific agreements between the States and the
Federal Government. Estimated outlays of $886 million in 1984 will
maintain the same overall level of employment services as are
financed in 1983 under the old system.
Forward funding of training and employment programs.—This
proposal for later transmittal would convert financing for most
training and employment services programs to a January through
December program-year basis and does not involve an increase in
program level. The proposal will be transmitted to Congress as
soon as agreement has been reached on the appropriateness of
forward-funding for these programs.
Other labor services.—The Federal Government establishes and
enforces standards affecting the relationship between employers
and employees and between unions and their members. The activities include enforcement of the minimum wage and related laws,
regulation of welfare and pension plans, supervision of labor-management relations, regulation of the equal employment practices of
Federal contractors, and assurances that election of labor union
officials are democratic and that such officials do not abuse their
stewardship. In addition, employment and unemployment statistics
and data on wages, prices, and productivity are collected and disseminated. Outlays for these activities are estimated at $680 million in 1984.
Tax expenditures.—The targeted jobs credit provides incentives
for employers to hire disadvantaged individuals and recipients of
certain welfare benefits. Tax credits are also provided to encourage
individuals with dependents to work by allowing tax credits for
child care expenses. In 1984 the targeted jobs credit and the credit
for child and dependent care expenses result in tax expenditure
estimates of $705 million and $2.4 billion respectively. The proposed tax expenditure to encourage employers to hire the longterm unemployed is discussed in the income security function.
Training and employment-related programs.—A number of Federal programs are related to training and employment, although
their primary purpose is to meet other national needs. Job training
services provided by the Veterans Administration are included in
the veterans function; job safety and health activities are included
in the health function; and activities relating to job discrimination
on the basis of race, age, or sex are included in the administration
of justice function.
5-98
THE BUDGET FOR FISCAL YEAR 1984
SOCIAL SERVICES
The Federal Government makes grants to States and to local
public and private institutions for a variety of social services.
These services are primarily designed to meet the needs of lowincome people, children and youth, the elderly, the disabled, and
other groups with special needs. Outlays for social services are
expected to be $6.5 billion in 1983 and $6.4 billion in 1984. Some of
these programs may be in a block grant to States under the administration's federalism proposal, described in Special Analysis H:
"Federal Aid to State and Local Governments." in the Special
Analyses volume of the 1984 Budget
Social services block grant—The Omnibus Budget Reconciliation
Act of 1981 created a block grant for social services that gives
States wide discretion in determining the types of services offered
and who is eligible to receive them. Services provided by States
may include child day care, foster care, child protective services,
homemaker services, family planning, preparation and delivery of
meals, transportation, counselling, legal services, and substitute
care and day care for adults. Funds may also be used for State and
local administrative costs. The funds are distributed among the
States on the basis of population. States also have the flexibility of
transferring up to 10% of any block grant allotment to other block
grants that support health services, health promotion and disease
prevention activities, or low-income home energy assistance.
Budget authority of $2.5 billion is requested for the social services block grant in 1984, $50 million more than in 1983.
Rehabilitation services.—This program makes grants to States
for vocational rehabilitation of physically and mentally handicapped individuals to help them become gainfully employed and
live more independently. The administration is proposing legislation to reform this program by providing greater State flexibility in
direct service delivery along with stricter State accountability to
objective standards of program performance. Budget authority of
$1.0 billion is being requested in 1984 for rehabilitation services.
The administration's proposal assumes implementation of significant management improvements during 1984. By 1985, up to onethird of the funds allocated to States would be distributed based
primarily on their success in rehabilitating severely disabled individuals.
Community service programs.—In 1984, budget authority of $3
million is requested to close out the community services block
grant. States have the flexibility to fund community services activities under the social services block grant for which a $50 million
increase in budget authority is requested in 1984.
EDUCATION, TRAINING, EMPLOYMENT, SOCIAL SERVICES
5-99
Family social services.—In 1984, budget authority of $601 million
is requested for foster care, adoption assistance, and a consolidated
child welfare services program that combines funding for child
welfare services and training. These funds support State services
that are designed to strengthen and reunite families and place
children promptly and permanently in adoptive homes when they
cannot be reunited with their families.
Services for children, youth, and families.—These programs are
designed to improve the quality of services for low income, neglected, abused, or homeless children. Budget authority of $1.1 billion is
requested for these programs in 1984, an increase of $0.1 billion
from 1983.
Funding in this area is almost entirely for Head Start, which
assists local community groups in providing comprehensive services
for low-income pre-school children and their families. The 1984
funding level will allow the program to increase enrollment from
395,800 to 424,900 children in the most efficient projects and in
projects testing innovative approaches, such as employer-based centers. Beginning in 1984, Head Start projects will receive all funding
directly from the Department of Health and Human Services,
rather than applying to the Department of Agriculture separately
for nutrition funds.
Services for the elderly and other special groups.—For 1984,
budget authority of $1.1 billion is requested for social services for
elderly people and other special groups. Grants are made to State
and area agencies on aging to assist in financing a range of services to older Americans, particularly those with the greatest economic and social need. Services include transportation, information
and referral, legal, and community services in addition to a variety
of services provided in the home. Nutrition projects for the elderly
finance meals served in a group setting or delivered to the homebound elderly. The administration is proposing to broaden the
range of services to include subsidized part-time employment for
low-income elderly persons, thus enabling the continuation of programs previously financed separately.
Domestic volunteer programs.—ACTION, a Federal agency for
volunteer programs, supports Foster Grandparents, the Retired
Senior Volunteer program (RSVP), Senior Companions, and programs to stimulate volunteer services. Authority to fund the Volunteers in Service to America (VISTA) program expires at the end
of 1983. Reauthorization is not requested for 1984 because VISTA is
both more expensive and less effective than other volunteer programs. ACTION will encourage volunteer service through technical
assistance, demonstrations, and small grants and will support
5-100
THE BUDGET FOR FISCAL YEAR 1984
groups of Vietnam veterans to help other veterans of the Vietnam
war with problems stemming from their military service. Outlays
for ACTION are estimated to decrease from $132 million in 1983 to
$113 million in 1984.
Tax expenditures.—The provision of social services by a wide
variety of private charitable and religions institutions is encouraged by the tax deductibility of contributions to those institutions.
The tax expenditure estimate for charitable contributions, other
than to educational and health institutions, is $7.2 billion in 1984.
Total tax expenditures for education, training, employment, and
social services are estimated to be $15.9 billion in 1984.
HEALTH
5-101
HEALTH
National Needs Statement
The Federal Government contributes to meeting the Nation's
health care needs by reducing the rise in health care costs,
financing and providing health care services, promoting preventive health measures, and supporting research and training.
A major problem for both individuals and the Federal Government in meeting health care needs is the rapid inflation of health
care costs. Increasingly expensive health care costs undermine the
American people's ability to purchase needed health care. Federal
policies have contributed significantly to health care cost increases.
The budget contains major initiatives to reduce cost increases.
These include building on reforms recently legislated by Congress
as well as a limit in tax subsidies for employment-based health
insurance, and other steps to control costs in medicare and medicaid.
Health care services.— More than 90% of Federal outlays for
health is devoted to financing or providing health care services
directly to individuals. Federal outlays for health care services are
estimated to rise from $76.5 billion in 1983 to $84.9 billion in 1984
and $94.7 billion in 1985, despite proposed savings of $2.0 billion in
1984, and $3.9 billion in 1985.
Medicare and medicaid.—Medicare and medicaid outlays, which
finance health care services for poor, disabled, and aged Americans, are estimated to be $80.7 billion in 1984 including proposed legislative savings of $2.0 billion. Medicare outlays are
estimated at $59.8 billion in 1984 including proposed legislation of
$1.7 billion in savings. These outlays are expected to finance services for 27 million aged and 3 million disabled Americans. Estimated Federal medicaid outlays of $20.8 billion in 1984, including
proposed savings of $0.3 billion, and an additional $17.8 billion
provided by States, are expected to finance care for 23 million poor
Americans. Together, medicare and medicaid are expected to aid
nearly one in every five Americans in 1984.
5-102
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: HEALTH
(Functional code 550; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Health care services:
Medicare:
Hospital and supplementary medical insurance:
Existing law
Proposed legislation
Premiums and collections:1
Existing law
Proposed legislation
1982
actual
1983
estimate
55,237
3
1984
estimate
1985
estimate
1986
estimate
47,223
-129
65,998
338
74,367
-387
84,990
-134
-4,355
126
42,865
-5,010
160
61,486
-5,843
-260
67,877
-6,264
-1,371
77,221
14,795
0
21,038
-300
23,990
-858
26,068
-722
1,196
1,196
165
1,196
165
1,196
165
3,190
2,943
2,836
-495
3,283
-788
73,469
61,798
85,927
94,866
3,651
-1,046
106,534
Health research:
National Institutes of Health research.
Other research programs
3,450
394
3,791
437
3,868
479
3,850
479
Subtotal, health research
3,844
4,228
4,347
4,328
3,850
479
4,328
192
239
63
211
233
37
209
138
18
209
138
18
209
138
18
494
481
365
365
365
689
717
754
_2
752
-5
747
-4
348
362
366
_4
368
-4
370
-4
1,037
1,079
1,113
1,111
1,109
15
-28
-27
-27
-27
78,859
67,558
91,725
100,643
112,309
50,423
57,360
-100
76,432
-2,781
85,370
-3,220
-3,855
-4,355
126
53,031
66,535
-1,856
-5,010
160
59,829
-5,843
-260
67,548
-6,264
-1,371
74,515
51,382
Subtotal, medicare..
Medicaid:
Existing law 2
Proposed legislation
Health block grants:
Existing law
Proposed legislation
Other health care services-.
Existing law
Proposed legislation
18,014
Subtotal, health care services..
Education and training of the health care work
force:
Research training
Clinical training
Other
Subtotal, education and training of the
health care work force
Consumer and occupational health and safety:
Consumer safety:
Existing law
Proposed legislation
Occupational safety and health:
Existing law
Proposed legislation
Subtotal, consumer and
health and safety...
occupational
Deductions for offsetting receipts....
Total, budget authority
OUTLAYS
Health care services:
Medicare:
Hospital and supplementary medical insurance:
Existing law
Proposed legislation
Premiums and collections:1
Existing law
Proposed legislation
Subtotal, medicare
-3,855
46,568
5-103
HEALTH
NATIONAL NEED: HEALTH—Continued
(Functional code 550; in millions of dollars)
1982
actual
Major missions and programs
Medicaid:
Existing law
Proposed legislation
Health block grants:
Existing law
Proposed legislation
Other health care services:
Existing law
Proposed legislation
Subtotal, health care services
Health research:
National Institutes of Health research
Other research programs
Subtotal, research programs
Education and training of the health care work
force:
Research training
Clinical training
Other
Subtotal, education and training of the
health care work force
Consumer and occupational health and safety:
Consumer safety:
Existing law
Proposed legislation
Occupational safety and health:
Existing law
Proposed legislation
Subtotal, consumer
health and safety
and
Deductions for offsetting receipts
Total, outlays
1983
estimate
1984
estimate
1986
estimate
1985
estimate
17,391
19,333
-7
21,092
-293
23,990
-858
26,068
722
663
1,119
1,196
107
1,196
165
1,196
165
3,730
3,039
3,066
-137
2,892
200
3,113
545
68,350
76,515
84,860
94,734
103,791
3,470
478
3,757
447
3,828
452
3,850
483
3,850
483
3,948
4,204
4,281
4,333
4,333
195
374
101
202
319
59
204
176
35
209
138
18
209
138
18
670
580
414
365
365
698
729
762
-2
764
-5
755
336
361
363
-3
366
-4
370
-4
occupational
1,034
1,090
1,119
1,121
1,116
15
-28
-27
-27
27
74,017
82,362
90,647
100,525
109,577
17
10
16
24
6
5
*
1
-4
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Health care services:
Budget authority
Outlays
1
Includes
2
voluntary enrollee premiums for medicare coverage.
The large decrease in 1983 budget authority is due to a transitional quarter resulting from a technical change in the appropriations language.
'Reflects interfund loans of $12.4 billion in 1983 to OASI.
*$500.000 or less.
Since 1981, the administration has successfully advanced a
number of reforms of the medicare and medicaid programs. In
response, Congress has passed the Omnibus Budget Reconciliation
Act of 1981 (OBRA) and the 1982 Tax Equity and Fiscal Responsibility Act (TEFRA) that institute reforms enhancing medicare and
medicaid program economy and effectiveness.
5-104
THE BUDGET FOR FISCAL YEAR 1984
Under OBRA, excessive reimbursements to medicare providers
were reduced through such measures as imposition of tighter reimbursement limits on hospitals, home health agencies and skilled
nursing facilities, and elimination of an unwarranted reimbursement bonus to hospitals for nursing services to medicare patients.
The medicare benefit structure was improved through such measures as raising the level of the SMI deductible to deter unnecessary
use of services.
Under TEFRA, a major reform of the current medicare hospital
reimbursement system was enacted. Hospitals with excessive rates
of cost increase or with very high costs relative to other hospitals
will experience reimbursement reductions. At the same time, hospitals that control their cost increases effectively can receive reimbursement bonuses.
OBRA reformed the medicaid program by establishing target
amounts for medicaid cost increases to encourage States to limit
the program's explosive growth. Federal matching funds are reduced for States whose spending exceeds targets established by
Congress. TEFRA allowed States to impose additional small copayments on certain medicaid beneficiaries and services. Congress also
adopted a number of administration proposals to increase the ability of States to assure continuation of basic health care services to
welfare recipients and to manage their programs more efficiently
and effectively. The accompanying table displays medicare and
medicaid savings adopted by the Congress in 1982.
The 1984 budget builds on these achievements by Congress and
the administration and proposes additional measures to achieve
savings and improve services in medicaid and medicare. Those
measures are discussed below and displayed in a table in Part 3
and will save $2.0 billion in outlays in 1984.
The administration is proposing four major medicare reforms:
• Catastrophic hospital cost protection and user cost sharing.—In
most cases, the present cost sharing structure provides no
deterrent to avoid unnecessary use of hospital services once a
patient is admitted and pays the deductible. Severely ill patients, however, face a potentially unlimited financial burden.
The administration proposes to protect medicare beneficiaries
against costly hospital stays and establish better incentives
for hospital use by restructuring medicare cost sharing. Currently, beneficiaries pay a deductible (approximately $350 in
1984) for the first day of hospital care for each hospital admission in a spell of illness. The medicare program pays the full
cost for the 2nd through the 60th day of care. From the 61st
to 90th day of care, beneficiaries pay 25% of the deductible
for each day in the hospital; after the 90th day, the benefici-
5-105
HEALTH
OUTLAY SAVINGS AND REVENUE INCREASES ADOPTED IN 1982
(In millions of dollars)
1984
estimate
Medicare:
Reform hospital reimbursement
Institute single reimbursement limit for skilled nursing facilities
Institute single reimbursement limit for home health agencies
Revise reimbursement for hospital-based physicians
Eliminate hospital nursing reimbursement bonus
Eliminate duplicate payment for outpatient physician overhead
Conform radiologist and pathologist reimbursement to other physicians
Reform reimbursement for assistants at surgery
Make medicare reimbursement secondary for the working aged
Reform audit and medical claims review
Institute temporary delay in periodic interim payments
Provide medicare coverage for Federal employees
Provide medicare coverage of hospice care
Subtotal, medicare outlay impact
Medicaid:
Allow nominal copayments
Facilitate liens on beneficiary estates
Reduce Federal matching for State payment errors
Extend medicaid to American Samoa
Reflect medicaid offset due to medicare changes
Reflect medicaid offset due to AFDC proposals
Subtotal, medicaid outlay impact
Offsetting receipts:
Collect employer share of HI tax on postal workers
Maintain SMI premium at a constant share of program costs
Subtotal, offsetting receipts
Total, outlay impact
Revenues:
Collect Federal employee share of HI tax
Total, deficit reduction
1985
estimate
1986
estimate
-1,450 -2,620 -3,980
-53
-62
-69
-6
-6
-7
-80
-100
-110
-115
-144
-128
-135
-210
-175
-189
-213
-240
-75
-90
-100
-315
-365
-410
-88
-116
-144
-100
870
50
75
105
70
140
110
-2,486 -2,820 -5,169
-90
-127
-66
1
25
-18
-275
-103
-141
-78
1
41
-20
-300
-107
-157
-87
1
43
-22
-329
-169
-175
-344
-185
-405
-590
-211
-440
-651
3,105
3,710
6,149
846
927
1,057
-3,951 -4,637 -7,206
ary has unlimited liability for the cost of care, except for 60
lifetime reserve days during which patients pay 50% of the
deductible for each day. Under the administration proposal,
beneficiaries would pay for each spell of illness 8% of the
deductible for the second through 15th day of care and 5% of
the deductible for the 16th through the 60th day of care.
Medicare will pay all costs after the 60th day, without any
limit on covered hospital days; no beneficiary would be liable
for more than a total of 60 days of cost sharing a year,
including not more than two hospital deductibles. In addition,
the beneficiary coinsurance for the 21st through 100th day in
a skilled nursing facility would be reduced from 12.5% to 5%
of the inpatient hospital deductible.
5-106
THE BUDGET FOR FISCAL YEAR 1984
• Supplementary medical insurance (SMI) premiums and deductibles.—SMI is a voluntary program for the aged who want to
buy additional medical outpatient insurance. This proposal
will delay the SMI premium increase from July 1, 1983 to
January 1, 1984, when it would be set at 25% of program
costs. On January 1, 1985 the SMI premium will be set at
27.5% of program costs; it will grow 2.5% annually until it
reaches 35% on January 1, 1988. When the program began,
beneficiary premiums were supposed to finance 50% of SMI
program costs; the remaining 50% was financed by general
revenues. This was the case from 1966 to 1971. From 1972 to
1982, however, the SMI premium increase was limited by the
rate of increase of social security contributions and fell to
under 25% of program costs. Currently, SMI premiums are
scheduled to cover 25% of program costs through 1985, when
they would once again be linked to social security contributions. In view of the economic difficulties confronting the
working population, this proposal would shift more of SMI
financing to those who choose SMI rather than the taxpayer;
this is consistent with the original program design. The SMI
deductible would also be indexed to the medicare economic
index in order to keep its economic value constant.
• Hospital reimbursement reform.—Medicare's cost-based reimbursement system encourages inefficiency in the delivery of
hospital services. The incentives inherent in the current
system have contributed to an excessive rate of growth in
medicare's hospital insurance program, for example, 19.2% in
1982 compared to a GNP increase of 5.6%. Reforms enacted in
TEFRA provided incentives for hospital efficiency, but these
reforms expire in 1985. The administration will propose a new
prospective payment system for hospitals. The system will
establish incentives for hospitals to limit cost increases, and
will produce approximately the same level of savings as would
result from an extension of TEFRA reforms.
• Physician payment freeze and hospital reimbursement
limits.—As part of the overall effort to hold down Federal
spending and the deficit, the target increase in hospital reimbursements scheduled in TEFRA will be limited to the hospital market basket rate—i.e., the percentage increase of goods
and services that hospitals purchase—in 1984. In addition,
medicare payments to physicians will be frozen at 1983 reimbursement rates. Together, these budget proposals will save
$780 million in 1984.
Other proposals for medicare include beginning medicare eligibility with the first full month after the 65th birthday rather than
the beginning of the month in which the birthday occurred, instituting a voluntary voucher progam, selecting medicare contractors
HEALTH
5-107
by competitive bidding, and terminating mandatory hospital utilization review activities.
In addition, beginning in 1984, medicare revenues will be generated through the inclusion of all non-profit organization employees
in the Social Security system.
The administration is also proposing to require States to set
nominal copayments in medicaid beginning in 1984. Nominal copayments can help deter unnecessary use of medical services. The
budget proposal would expand the present copayment provisions
passed by Congress by requiring States to impose nominal copayments on all services except those to nursing home patients. Such
copayments would be $1.00 and $1.50 for physician visits and $1.00
and $2.00 for each day in the hospital. The higher copayments
would apply to medically needy beneficiaries in medicaid. Nursing
home patients would be exempted from mandatory copayments
because they typically have incurred large out-of-pocket costs
before entering nursing homes or gaining medicaid eligibility.
Health block grants.—The budget authority requested for health
block grants increases from $1.2 billion in 1983 to $1.4 billion in
1984. This results from proposed legislation to consolidate additional programs into these grants. The block grants allow States flexibility to coordinate and improve the effectiveness of services for
their citizens. States will be able to streamline program administration because unnecessary Federal regulatory, legal and reporting requirements previously imposed on States and grantees will
no longer apply. The administration's legislative proposal would
expand the primary care block grant to include narrow categorical
programs for black lung clinics, migrant health, and family planning.
Other health care services.—To promote competition in health
care, the budget reflects the continuing the phaseout of the health
planning program t h a t bars market entry to providers, and the
phaseout of direct Federal subsidies for the professional standards
review organization (PSRO) program. Under TEFRA and the administration's proposed prospective payment system, hospitals have
financial incentives to reduce length of stays and the need for PSRO
length-of-stay reviews is diminished. Legislation will also be proposed to assist federally funded health maintenance organizations
(HMOs) to compete with other health care providers by removing
unnecessary Federal requirements, thus allowing a phaseout of
Federal grant and loan subsidies.
For 1984, the administration is requesting $63 million in budget
authority for the direct Federal subsidy to St. Elizabeths Hospital
for the care of District of Columbia residents. This request is a
reduction of $14 million from 1983 and represents the second year
5-108
THE BUDGET FOR FISCAL YEAR 1984
of a ten-year phase-down of direct Federal subsidies for District
residents at St. Elizabeths Hospital. It includes a three-year phasedown of the subsidy for 740 District residents who are currently
inpatients that the District court has ordered to be placed in the
community by the end of December, 1985. Compliance with the
court order will result in less restrictive, less expensive, and more
appropriate care for many patients currently institutionalized at
St. Elizabeths. Legislation will also be proposed to establish a corporation to administer the hospital.
The phase down of direct Federal subsidies for District residents'
mental health care will make Federal policy with regard to the
District of Columbia consistent with the Federal role for other
States and jurisdictions. The District will have increased responsibility for and control over the financing and delivery of mental
health services to its residents, consistent with the principles of
home rule and federalism.
Budget authority is requested for the Indian Health Service
(IHS) at a level of $688 million in 1983 and $653 million in 1984. In
1984, the IHS will embark on an expanded program of seeking $70
million in third-party reimbursements for health services provided
to American Indians and Alaskan Natives. Budget authority for
the National Health Service Corps (NHSC) is requested at a level
of $96 million in 1984. Increased emphasis will be placed on encouraging NHSC scholarship recipients to go into private practice in
areas with a shortage of medical professionals.
As part of the administration's health initiative, legislation reforming the Federal employees health benefits (FEHB) program is
proposed. The proposal will strengthen competition in the program,
encourage a wider range of benefit packages, and assist in moderating the excessive rate of increase in health insurance premiums.
Major features of the proposal include requiring catastrophic protection for all enrollees, changing the method for determining Government contributions to health plan premiums, providing incentives that would encourage cost control by participating plans and
enrollees, and removing current barriers to plan entry into the
program.
• Government contributions would no longer be based on average premiums of the six largest and most comprehensive
plans in the program. Instead, it would be based on average
Government contributions in 1983, indexed in future years to
reflect price increases. Off-budget entities would now have to
make this contribution for their retirees. Disproportionate increases in the premiums for these plans would not automatically result in large increases in Government contributions. This
would enhance incentives for participating plans to control
costs in order to remain competitive.
HEALTH
5-109
• Under existing law, the Government contribution to an enrollee's selected plan cannot exceed 75% of the plan premium.
Under the proposal, the Government contribution would be
fixed, regardless of the percent, and if the employee chose a
plan costing less t h a n the Government contribution, the employee would receive the difference. This enhances incentives
for enrollees to select less costly plans.
• Existing law limits the number of Government-wide plans
eligible to participate in the program. The proposal allows for
entry of additional Government-wide plans.
Health research.—In 1981, the Federal Government provided
more than four-fifths of total to national health expenditures for
research, excluding drug and medical industries' research. The
budget proposes to increase budget authority for health research
from $4.2 billion in 1983 to $4.3 billion in 1984. These funds primarily will support basic biomedical research conducted by the
National Institutes of Health (NIH). Support will be provided for
such activities as research project grants, research centers, training
of biomedical scientists, and the NIH intramural research program.
Funds are also requested for continued support of research on
chemical and related behavioral disorders, such as mental illness
and alcohol and drug abuse, as well as health services research and
health statistical activities.
Education and training of the health care workforce.—In 1984,
$365 million in budget authority is requested for these programs.
As the supply of most health care professionals is now adequate,
direct Federal support for health professions training is no longer
essential. For this reason, budget authority requested for clinical
training of health care professionals decreases from $233 million in
1983 to $138 million in 1984. Support will continue, however for
about 10,000 research trainees. Support will also continue for minority health professions schools and disadvantaged students.
Nearly 22,000 students in health programs will be supported by an
additional $175 million in new loan guarantees under the health
education assistance loan program.
Consumer and occupational health and safety.—Budget authority
of $1.1 billion in 1984 is requested for protecting consumers from
unsafe and defective products and for protecting workers from
occupational hazards.
Consumer safety.—Budget authority for consumer safety activities is proposed to be $752 million in 1984. Funding will support
research, dissemination of information, and regulatory measures to
protect consumers from unreasonable consumer product risks. In380-000 0 - 83 - 15 : QL 3
5-110
THE BUDGET FOR FISCAL YEAR 1984
spections will be continued to assure the safety and efficacy of
drugs, medical devices, and foods.
Occupational safety and health,—The budget includes $362 million in budget authority to improve occupational safety and health
in 1984. The Occupational Safety and Health Administration
(OSHA) and the Mine Safety and Health Administration (MSHA)
in the Department of Labor issue and enforce standards to eliminate workplace hazards causing injury, illness, or death. During
1983 and 1984, both OSHA and MSHA will continue efforts to
revise or eliminate standards that burden employers without providing additional protection for workers. Resources will be focused
on those activities most likely to ensure safe and healthful working
conditions. The 1984 request includes proposed amendments to the
Federal Mine Safety and Health Act of 1977 that would allow
MSHA to concentrate its efforts on mines most likely to be hazardous.
Credit programs.—The health function includes several small
loan and loan guarantee programs, including health-related student loans and assistance to health maintenance organizations. The
proposed credit budget totals for health programs is estimated to
be $83 million below the 1983 level. The decrease is due primarily
to declines in new commitments of guaranteed loans for health
professionals' education.
Tax expenditures.—Federal tax laws help finance health care by
allowing employees to exclude from their taxable income the insurance premiums paid by their employers. The estimate for this
provision is $29 billion for 1984. Individuals also are permitted to
itemize as deductions certain expenses for health care. TEFRA increased the floor under the itemized deduction for medical expenses for calendar year 1983 from 3% to 5% of adjusted gross
income, and eliminated the separate deduction of health insurance
premiums. In 1984, the estimates of these tax deductions are $2.6
billion. In addition, health-related charitable contributions result
in an estimate in 1984 of $1.2 billion, and the exclusion of interest
on State and local hospital bonds results in an estimate of $1.1
billion. After 1982, a tax credit of 50% is allowed for qualified
clinical testing of drugs used to treat certain rare diseases or
conditions. The estimate for this provision is $25 million in 1984.
Estimated tax expenditures for existing health provisions total
$34.3 billion in 1984.
The current tax subsidy for the cost of health insurance premiums paid by employers has artificially increased the value of this
fringe benefit. Thus, it has stimulated excessive health insurance
coverage and contributed to health care cost inflation, because
5-111
HEALTH
CREDIT PROGRAMS—HEALTH
(In millions of dollars)
Actual
1982
Direct loans:
Health programs:
New obligations
Net outlays
Outstandings
Health programs (loans held by the FFB):*
Net outlays
Outstandings
Total, direct loans:
New obligations.
Net outlays
Outstandings
Guaranteed loans:
Health programs:
New commitments..
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
Estimate
1983
1984
1985
1986
27
2
880
47
25
905
16
5
910
13
6
916
9
1
917
10
287
-24
263
263
262
-4
257
27
12
1,166
47
1
1,168
16
5
1,172
13
6
1,178
9
_3
1,174
200
169
1,253
233
155
1,408
181
127
1,535
180
151
1,686
180
159
1,836
193
189
227
280
197
*$500
thousand or less.
J
The direct lending activities of these programs are financed by the FFB. Loan assets are issued by the agency. According to law, these
assets are backed by loans that the agency continues to service. The agency guarantees the loan assets, sells them to the FFB, and repurchases
them upon maturity. FFB net outlays for this account represent acquisition of loan assets less repurchases by the agency. Increases in the volume
of sales of loan assets are added to FFB direct loan outstandings, while the agency's direct loan outstandings decrease by the amount of loan
assets sold to the FFB.
consumers have no incentive to hold down costs if they bear only a
very limited part of the costs directly. The administration proposes
to limit the subsidy to the portion of the monthly premium under
$175 for a family plan and $70 for an individual plan. This proposal
would continue the subsidy at a level sufficient to promote adequate coverage, but one that would make the tax law neutral with
respect to wages and added health insurance. The tax expenditure
estimate of this proposal is $2.4 billion in 1984.
Health-related expenditures.—The Federal Government supports
health-related expenditures that are reported in other budget functions. Among the most important are medical care for veterans and
military personnel, reported in the veterans benefits and services
and national defense functions. Agency contributions to Federal
employees health benefits were described under health care services, but are included in the section on undistributed offsetting
receipts.
5-112
THE BUDGET FOR FISCAL YEAR 1984
INCOME SECURITY
National Needs Statement
Federal programs in the income security function help meet
national needs by insuring against the loss of income resulting
from unemployment, old age, disability, or death of a wage
earner and by assisting the truly needy who are unable to
provide for themselves.
Income security is the largest and traditionally one of the most
rapidly growing functions in the Federal budget. In 1984, income
security outlays are estimated to be $282.4 billion, about 33% of
total Federal budget outlays. The income security function has
grown from 3.7% of gross national product (GNP) in 1960 to an
estimated 8.1% of GNP in 1984. This growth has been, and will
continue to be, dominated by social security. Increases in the
income security programs result largely from cost-of-living adjustments and growth in the number of beneficiaries. Most of the
benefits are paid under entitlement standards established by law.
Reforms enacted in 1981 and 1982 have significantly improved
the focus and administration of Federal entitlement programs. Additional proposals included in this budget will produce further
improvements. The administration's proposals to reduce the budget
deficit include proposals to freeze cost-of-living increases for Federal programs by 6 to 12 months. For social security, a 6-month
freeze is proposed, consistent with the bipartisan National Commission on Social Security Reform proposal. Similar freezes are also
proposed for supplementary security income, railroad retirement,
veterans pensions and compensation, and food stamps and child
nutrition programs. For Federal employee retirement and disability programs and the disabled coal miners program, which is linked
to Federal pay schedules, a 12-month freeze is proposed. Other
proposed reforms are discussed below.
5-113
INCOME SECURITY
NATIONAL NEED: PROVIDING INCOME SECURITY
(Functional code 600; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
BUDGET AUTHORITY
General retirement and disability insurance:
Social security (OASDI):
Existing law
Proposed legislation
Railroad retirement
Benefits for disabled coal miners:
Existing law
Proposed legislation
Other
Subtotal, general retirement and disability insurance.
Federal employee retirement and disability:
Retirement and disability programs:
Existing law
Proposed legislation
Federal employees workers' compensation:
Existing law
Proposed legislation
Subtotal, Federal employee retirement and disabilityUnemployment compensation:
Existing law
Proposed legislation
Subtotal, unemployment compensation.
Housing assistance:
Subsidized housing
Public housing operating subsidies
Indian housing (proposed legislation)
Rural housing block grant (proposed legislation).
Other housing assistance
Subtotal, housing assistance
Food and nutrition assistance:
Food stamps and aid to Puerto Rico:
Existing law
Proposed legislation
Child nutrition and other programs:
Existing law
Proposed legislation
Subtotal, food and nutrition assistance..
Other income security:
Supplemental security income:
Existing law
Proposed legislation
AFDC and child support enforcement:
Existing law
Proposed legislation
Earned income tax credit
Refugee assistance
Low income home energy assistance:
Other
Subtotal, other income security..
Total, budget authority
146,207 161,948 163,047 183,584 203,372
20,500 10,383 16,148 17,389
5,195 5,656 5,913 5,408 6,166
1,878
1,666
1,764
-45
52
1,798
-52
60
153,316 189,808 181,127 206,911
36
39
228,733
1,775
-37
46
31,921
35,104
36,255
1,456
38,148
4,610
40,096
4,298
345
336
228
-17
217
-30
201
-31
32,266 35,440 37,922 42,946 44,564
21,177 30,034 29,892 30,034 30,882
1,850
21,177
31,884
29,892
30,034
30,882
4,267 -2,319 -2,093 2,053
1,282 1,636 1,525 1,481
76
76
76
850
850
850
263
154
215
139
112
13,876 5,660
397
573 4,724
12,245
1,491
11,286 12,815 12,492 12,650 12,906
-766 -1,052 -1,102
4,498
4,932
4,889
-313
5,053
-388
5,287
-460
15,784
17,747
16,302
16,264
16,630
7,769
8,459
85
7,511
341
8,249
329
8,404
307
6,007
8,223
1,201
689
1,875
228
17,770
1,205
578
1,986
252
20,789
8,243 8,357 8,537
- 7 3 2 -1,006 -1,010
1,123 1,004
926
355
288
485
1,300 1,300 1,300
268
268
268
18,539 18,856 19,019
254,188 301,328 284,178 315,583
344,552
5-114
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: PROVIDING INCOME SECURITY—Continued
(Functional code 600; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
OUTLAYS
General retirement and disability insurance:
Social security (OASDI):
Existing law
Proposed legislation
Railroad retirement
Benefits for disabled coal miners:
Existing law
Proposed legislation
Pension Benefit Guaranty Corporation:
Existing law
Proposed legislation
Other
Subtotal, general retirement and disability insurance.
Federal employee retirement and disability:
Retirement and disability program:
Existing law
Proposed legislation
Federal employees workers' compensation:
Existing law
Proposed legislation
Federal employees life insurance fund
Subtotal, Federal employee retirement and disability..
Unemployment compensation:
Existing law
Proposed legislation
Subtotal, unemployment compensation.
Housing assistance:
Subsidized housing
Public housing operating subsidies
Indian housing (proposed legislation)
Rural housing block grant (proposed legislation).
Other housing assistance
Subtotal, housing assistance..
Food and nutrition assistance:
Food stamps and aid to Puerto Rico:
Existing law
Proposed legislation
Child nutrition and other programs:
Existing law
Proposed legislation
Subtotal, food and nutrition assistance-
154,144 170,324 182,388 196,326 210,719
-2,056 -4,140 -4,548 -4,811
5,717 6,127 5,786 5,177 6,093
1,980
1,816
-67
-32
1,780
-37
1,771
-45
1,798
-52
-26
-18
-15
-132 -180 -202
42
48
55
31
37
161,805 176,216 185,661 198,531 213,585
19,616 21,250 22,941 24,720 27,000
-362 -1,116 -1,525
217
228
201
-30
-17
-31
-492 -612 -636 -662 -688
19,388 20,856 22,153 23,129 24,956
264
218
23,756 35,020 28,774 25,867 24,707
1,850
28,774
25,867
24,707
8,532
1,520
40
280
450
257
9,235
1,581
43
561
454
9,690
1,503
45
850
459
11,874
12,547
23,756
36,870
6,880
1,008
7,774
1,551
155
8,043
9,582
10,823
11,014 12,825 12,496 12,648 12,903
-757 -1,049 -1,101
4,565
5,008 4,878 5,042 5,273
- 2 -295 -383 -456
15,579 17,831 16,322 16,258 16,619
Other income security:
Supplemental security income:
Existing law
7,677
8,760
7,509
8,252
8,404
5-115
INCOME SECURITY
NATIONAL NEED: PROVIDING INCOME SECURITY—Continued
(Functional code 600; in millions of dollars)
Major missions and programs
Proposed legislation
AFDC and child support enforcement:
Existing law
Proposed legislation
Earned income tax credit
Refugee assistance
Low income home energy assistanceOther
Subtotal, other income security..
1982
actual
1983
estimate
85
7,990
8,224
1,201
1,011
1,687
206
1,205
632
1,963
249
19,773
21,117
1984
estimate
341
329
1986
307
8,263 8,357 8,537
- 7 3 2 -1,006 -1,010
1,123 1,004
926
521
366
299
1,398 1,351
1,300
267
265
266
18,688
248,343 282,472 282,422
Total, outlays
1985
estimate
18,919
19,029
294,579 311,443
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Housing assistance:
Budget authority
Outlays
732
696
625
591
-37
-27
-29
General retirement and disability insurance.—Sixty-six percent of
income security outlays are for retirement and disability insurance
programs. In almost all cases the beneficiaries during their working years have paid to help support these programs. On the average, however, benefits are substantially higher, even after allowing
for inflation, than the amounts the beneficiaries paid into the
program. Outlays for general retirement and disability insurance
are estimated to increase from $176.2 billion in 1983 to $185.7
billion in 1984 because of:
• benefit increases tied to the Consumer Price Index;
• an increase in the number of aged persons receiving benefits;
and
• increases in individual earnings histories upon which the
benefits are based.
Old-age, survivors, and disability insurance (OASDI) touches the
lives of virtually every American either through benefits received
or through payroll taxes deducted from earnings which finance the
programs. In 1984 estimated outlays are $178.2 billion. However,
without changes to current law, the largest of the social security
trust funds, the old-age and survivors insurance (OASI) trust fund,
would be unable to pay full benefits on a timely basis starting in
July 1983. However, the budget reflects the bipartisan solution to
the social security problem recommended by the National Commission on Social Security Reform and endorsed by the President, the
Speaker of the House, and the Majority Leader of the Senate.
5-116
THE BUDGET FOR FISCAL YEAR 1984
Full OASI benefits will continue to be paid if the bipartisan
solution is enacted. The bipartisan solution recommended by the
National Commission on Social Security Reform is projected not
only to keep social security solvent in the short term but also
correct the long-range actuarial imbalance facing social security.
The main elements of the recommended solution are summarized
below:
—Cover all non-profit employees and new Federal employees
under social security, and ban withdrawal from coverage by
State and local employers;
—Credit to the OASDI trust funds the revenues raised by having
only those taxpayers with adjusted gross incomes in excess of
$20,000 for an individual and $25,000 for a couple pay income
taxes on 50% of their OASDI benefits;
—Shift the automatic increase in benefits to a calendar year
basis, making the increase payable in January instead of July;
-—Move the OASDI tax rate increase scheduled for 1985 to 1984,
reschedule the 1988-89 rate, and provide a refundable tax
credit for the year 1984 for the part of the employee rate that
was rescheduled;
—Improve the equity of social security benefits;
—Make the self-employment OASDI tax rate comparable to the
combined employer-employee rate, allowing one-half of the
combined rate to be deducted as a business expense;
—Reimburse the OASDI trust funds for the full cost of certain
military service credits and uncashed OASDI checks;
—Provide for reallocating the OASDI tax rates between OASI
and DI and for inter-fund borrowing during 1983-87, from
Hospital Insurance to OASDI; and,
—Provide a series of long-range reforms to stabilize the financial
condition of the OASDI trust funds and restore the system to
actuarial balance.
In 1984 the estimated outlay savings of these proposals are $4.1
billion. The unified budget impact of the bipartisan recommendations is discussed in more detail in Part 3.
Railroad retirement—The Railroad Retirement Board (RRB) administers social security equivalent benefits, industry pensions
funded by the rail sector, and windfall payments fully subsidized
by the American taxpayer. In 1984, estimated outlays of $5.8 billion will provide benefits to 976 thousand retired and disabled
railroad employees, their dependents, and survivors.
Rail workers, whose annual income will average over $32,000 in
1984, can expect to receive a pension in excess of their pre-retirement take-home pay. In 1984, the budget includes estimated outlays of $350 million for the Federal windfall subsidy for railroad
retirement, a subsidy of over $800 per active rail worker.
INCOME SECURITY
5-117
The social security benefits administered by RRB remain financially sound. Major changes in the rail industry pension plan
sought by rail labor and management and enacted by the Congress
in 1981, require the Board to adjust industry pensions to the available resources. Section 22 of the Railroad Retirement Act requires
that:
—Full social security benefits be paid;
—Monthly rail pensions be paid during the year at the highest
level rate financed by rail industry contributions; and
—Representatives of rail labor and management may submit
proposals to alter the system's financing or pensions.
Benefits for disabled coal miners.—Benefits are provided to coal
miners disabled from pneumoconiosis (commonly known as "black
lung disease") and to their dependents and survivors. Under the
Black Lung Benefits Act, miners suffering from chronic dust disease of the lungs and meeting specified medical criteria are entitled to benefits. These benefits are set at 50% of the GS-2 Federal
salary level. Total outlays for the black lung program are estimated to be $1.7 billion in 1984. The program has recently undergone
legislative changes to assure that the coal industry pays, through
an excise tax, for claims filed after 1973 and to target benefits to
those who have presented adequate proof that their disability is
due to black lung disease. The proposal to freeze Federal pay
increases for 12 months will also freeze increases in black lung
benefits.
Pension Benefit Guaranty Corporation.—The Pension Benefit
Guaranty Corporation (PBGC) is a Government corporation established under the Employee Retirement Income Security Act
(ERISA) to insure pension benefits promised by private employers.
If a defined benefit pension plan terminates, the Corporation pays
the workers' monthly benefits up to a legal maximum. In addition,
the Corporation may provide loans to financially troubled multiemployer plans to prevent termination and thereby avoid subsequent Corporation responsibility to pay benefits. PBGC costs are
covered by premiums paid by pension plans, assessments of sponsors of terminated plans, and earnings on investments. Terminations of single-employer plans have exceeded expectations. Therefore, the Corporation had accumulated a deficit of $320 million by
the end of 1982, which is expected to rise to $550 million by the end
of 1984. The budget reflects the administration's request that Congress approve an increase of the single-employer premium from the
current level of $2.60 per participant, per year, to a level that
would be sufficient to cover both current and projected claims. In
addition, the administration supports legislation to revise the insurance program for single-employer plans to prevent the unwar-
5-118
THE BUDGET FOR FISCAL YEAR 1984
ranted assignment of unfunded benefit promises to the Corporation.
Federal employee retirement and disability.—Federal employee
retirement and disability programs include a number of Federal
employee retirement programs in the legislative, judicial, and executive branches. The largest program is the civil service retirement and disability program. Outlays for Federal employee retirement and disability are estimated to increase from $20.9 billion in
1983 to $22.2 billion in 1984.
Retirement and disability programs.—The Federal employee retirement system is one of the most generous pension plans available in the United States. Workers' contributions cover only 20% of
the cost of the system; the Federal taxpayer pays the remaining
80%.
Legislation is proposed that would reform the civil service system
to deal with the problems created by these factors. This legislative
package includes:
• Annuity adjustment for early retirement—Current law provides that civil service employees may retire as early as age
55 with 30 years service and receive full benefits. By contrast,
social security provides no retirement benefits before age 62.
The proposal would continue to permit retirement at age 55
with 30 years service, but annuities would be reduced by an
actuarial factor—5% for each year the worker chooses to
retire prior to age 65. This change would be phased in over a
period of 10 years, and employees age 55 or over at enactment
would not be affected. The proposal is a responsible, measured
way to address the early retirement problem. Since the average age at which Federal employees retire is 61, few will
experience the full reduction. In addition, the reduction would
not apply to persons retiring because of disability.
• Cost-of-living adjustments (COLAs).—As part of a proposed
Government-wide COLA policy, this proposal would freeze the
cost-of-living adjustment for 1984. The proposal would also
make permanent the current limitation on cost-of-living adjustments (COLAs) for non-disability retirees under age 62 by
allowing one-half the full COLA increase after 1985. Under
current law, the limitation of one-half of specified COLA
increases expires at the end of fiscal year 1985.
• Increase employee deductions for retirement.—Although retirement costs have skyrocketed, the amount withheld from Federal employees' salaries has remained constant at 7% since
1969. This has resulted in a significant departure from the
principle that employees should pay 50% of the cost of the
INCOME SECURITY
5-119
retirement system. The proposal would increase employee deductions to 9% in 1984 and to 11% in 1985. This represents
approximately one-half of the cost of civil service retirement,
taking into account the other reforms proposed.
• Increase employer deductions for retirement.—Employer contributions for retirement would also increase to match the
increase in employee deductions described above. This would
include matching contributions from other entities including
the U.S. Postal Service, and the District of Columbia Government, for employees who participate in the Civil Service Retirement System.
• Base annuity calculations on the retirees' highest 5 years of
earnings, instead of the current highest 3.—As recently as
1969, the formula for computing annuities was based on the
average of an employee's 5 highest salary years; since then
the three highest salary years have been used. With a return
to more moderate inflation levels, it is sensible to use the
highest 5 years as the base. Employees within 3 years of
retirement eligibility would not be affected by the change.
• Modify replacement rates.— Currently, a formula is used that
determines the percentage of salary that is replaced by retirement benefits. For example, this replacement rate is now
56.25% of the final 3 years' salary for 30 years of service. The
administration would alter this formula to reduce the replacement rate, if necessary in conjunction with other proposals, to
reduce the cost of the system to 22% of payroll and enable
employer contributions to be limited to 11% of salary.
Federal employees workers' compensation.—Federal employees or
their survivors are provided tax-free cash and medical benefits for
job-related injuries, illnesses, or deaths. About 47,000 workers with
long-term disabilities, or their survivors are expected to receive
monthly payments in 1984. This is 1,000 fewer than in 1983 because of increased efforts to return recipients to work and to
remove those no longer eligible from the rolls. Outlays are estimated to decrease from $218 million in 1983 to $211 million in 1984 as
a result of the proposal to delay the cost-of-living increase for 1
year.
Unemployment compensation.—About 97% of wage and salaried
employment in the United States is covered by unemployment
compensation programs that pay benefits to individuals who are
temporarily out of work and are searching for jobs. Based on the
economic assumptions described in Part 2, an estimated average of
5.4 million workers per week will receive unemployment benefits
during 1983 and 4.6 million workers in 1984. Outlays are estimated
to decrease from $36.9 billion in 1983 to $28.8 billion in 1984 due to
5-120
THE BUDGET FOR FISCAL YEAR 1984
a decline in the projected average unemployment rate from 10.7%
in fiscal year 1983 to 10.1% in 1984.
Regular benefits (usually up to 26 weeks) are financed by a State
tax on employers and vary according to benefit levels set by each
State. State and Federal administrative costs are financed by a
Federal tax on employers.
The number of weeks an unemployed worker can receive unemployment insurance is increased by 50%, to a maximum of 39
weeks in any State where the unemployment rate of covered individuals claiming regular benefits averages 5% or more for 13 consecutive weeks and is at least 120% of the rate in the corresponding period in each of the previous 2 years. States may also provide
these extended benefits when their insured unemployment rate
reaches 6% for a 13-week period regardless of the rate in prior
years. Extended benefits are financed in equal portion by State and
Federal taxes on employers.
A temporary program, Federal supplemental compensation
(FSC), pays additional weeks of benefits to those who exhaust their
weeks of regular and, where available, extended benefits. These
benefits are payable for people unemployed between September 11,
1982, and March 31, 1983. As originally enacted, FSC provided up
to 10 additional weeks of benefits, but as recently amended it pays
up to 16 additional weeks. The number of weeks available varies by
State depending on the level of unemployment and whether the
State has paid or is paying extended benefits. It is estimated that
$2.5 billion of FSC benefits will be paid to some 2 million claimants.
The administration proposes a six month extension and modification of
the Federal Supplemental Compensation program with an option for
recipients to receive assistance in securing work through a system of tax
credits to employers. Under the proposal, those with a significant work
history who lost jobs through no fault of their own would have the choice
of receiving up to 16 weeks of unemployment compensation or a set
of vouchers that will give anyone who employs them a wage offset
equal to half the usual unemployment benefits for twice as many
weeks as those who remain unemployed will receive—that is, for
up to 32 weeks. The number of weeks of benefits or vouchers will
depend on the level of unemployment in the worker's State. The
wage offset, provided through a tax credit, will give employers a
strong incentive to hire the long-term unemployed. Workers in the
program would receive full wages, rather than the lower unemployment benefit. The program would provide unemployment benefits
from April 1 through September 30, 1983, with wage offsets remaining available until March 31, 1984. The estimated outlays for
this proposal are $1.8 billion in 1983. The estimates of the tax
INCOME SECURITY
5-121
expenditure for this proposal are $184 million in 1983 and $642
million in 1984.
The program of unemployment compensation for ex-servicemembers pays up to 13 weeks of benefits to ex-servicemembers,
beginning with the fifth week after discharge or release from the
service. Beginning October 1, 1983, the costs of these benefits will
be reimbursed to the unemployment trust fund by the uniformed
services.
In addition to regular unemployment compensation programs,
special extra benefits are available to certain workers under specific circumstances, such as former Conrail employees. Special trade
adjustment assistance benefits for workers deemed unemployed because of increased imports, estimated at $54 million in 1983, are
scheduled to expire at the end of 1983.
Housing assistance.—The Federal Government subsidizes housing
for low-income families and individuals through several programs
in the Department of Housing and Urban Development (HUD) and
the Department of Agriculture (USDA). Budget authority for these
programs is proposed to decline from $5.7 billion in 1983 to $0.4
billion in 1984. Despite this dramatic decline, outlays are estimated
to increase from $9.6 billion in 1983 to $10.8 billion in 1984 due to
commitments from prior years.
Subsidized housing.—Although budget authority for the HUD
subsidized housing programs is projected to decline dramatically—
from $4.3 billion in 1983 to $-2.3 billion in 1984—estimated outlays will continue to rise from $7.8 billion in 1983 to $8.5 billion in
1984. The decline in budget authority being requested results from
proposed rescissions of budget authority no longer needed for the
Rent Supplement and Rental housing assistance programs and the
administration's deferral of $3.1 billion of budget authority from
1983 to 1984. These reductions are partially offset by proposed new
budget authority of $515 million for the public housing and section
8 lower income housing assistance program. By the end of 1982, 3.5
million households lived in housing subsidized by HUD. The Department also had outstanding commitments to build an additional
379,000 units of subsidized housing. This inventory of 3.9 million
subsidized housing units will require Federal subsidies of about
$250 billion over the next 30 to 40 years, in addition to the operating subsidies for the 1.2 million units of public housing.
Under the current section 8 existing rental housing assistance
program low-income households find their own rental housing and
receive rental subsidy payments, provided that the housing unit
meets housing quality standards and does not rent for more than a
maximum amount. Tenants may not contribute more than 30% of
their income for rent, and most current tenants now pay 27% or
5-122
THE BUDGET FOR FISCAL YEAR 1984
less of their income for rent. The Federal subsidy equals the difference between the rent paid by the tenant and the rent charged by
the landlord.
The 1984 budget proposes a major reform of the structure of
Federal housing assistance that would build upon the current Section 8 existing rental housing assistance program. The proposed
modification would eliminate the maximum rent amount. Instead,
HUD will establish a reasonable rent level that a tenant could be
expected to pay for a standard quality unit. The Federal subsidy
would be the difference between this level and 30% of the tenant's
income. Participating households could use this subsidy to shop for
any unit meeting minimum housing quality standards as long as
any rent charges above the section 8 rent subsidy were paid by the
tenant. The initial level of the annual Federal subsidy payment is
estimated to average $2,000 per household, which is roughly equal
to the benefit received by households now entering the section 8
existing housing program. Actual amounts will be based on the
difference between local market rent levels and an assumed tenant
rent contribution.
In 1984, the administration will continue to provide subsidies
under the section 8 new construction/substantial rehabilitation
program for units built for the elderly or handicapped in conjunction with the section 202 direct loan program.
Public housing operating subsidies.—Estimated outlays for public
housing operating subsidies will be $1.5 billion in 1984. The administration proposes to revise the formula that determines the operating subsidy payment. Currently, the payment is determined on the
basis of historic costs. Under the new proposal, private market
rents would be the basis for the payment, consistent with the
proposals for the section 8 housing payment certificate program. In
addition, the separate public housing modernization program would
be gradually consolidated into the operating subsidy program. This
will provide housing authorities with increased flexibility to repair
and renovate their housing units as part of ongoing operations.
Indian housing.—A new program in the Department of Housing
and Urban Development (HUD) is proposed to support the construction of housing for Indians on reservations. This program
would replace the current HUD public housing program procedures
as adapted for Indian reservations. The proposed program would
allow for the construction of housing that is more suitable to the
unique needs and cultural desires of Indian communities than the
present program. Outlays for this new program are estimated to be
$40 million in 1984.
Rural housing block grant.—The administration requests budget
authority of $850 million for a new rural housing block grant to
INCOME SECURITY
5-123
States to provide housing for low-income families. The rental assistance program will continue to provide subsidies to low-income
households living in FmHA financed units. The Department of
Agriculture will also continue to assist farmers in constructing
housing for farm laborers.
Other housing assistance.—The budget includes estimated outlays
of $450 million for other housing assistance administered by the
Farmers Home Administration (FmHA) and HUD.
Other major forms of Federal support for housing are tax expenditures and housing credit programs. The housing credit programs and the tax expenditures for housing in general are discussed under the commerce and housing credit function.
Food and nutrition assistance.—Needy families and individuals
receive food and nutrition assistance through a number of Federal
programs.
Food stamps and aid to Puerto Rico.—Food stamps help lowerincome Americans maintain a nutritious diet. Eligible families receive monthly allotments of stamps based on income and household
size to finance food purchases. These benefits are entirely federally
funded; administrative costs are shared equally by the States and
the Federal Government. Monthly food stamp participation is estimated at 21.5 million individuals in 1984, with associated Federal
outlays of $10.9 billion. A nutrition assistance block grant for Puerto
Rico replaced the food stamp program in Puerto Rico in the last
quarter of 1982. Outlays for the block grant are estimated to be $825
million in 1984.
Efforts to improve program administration highlight this year's
budget proposals for food stamps. Overpayments currently account
for almost 10% of all benefits and cost the American taxpayer
more than $1 billion annually. States lack financial incentives to
improve their administration of the program since benefits are
100% federally financed. To encourage States to improve program
integrity, this budget includes a proposal to hold States liable for
overpayments that exceed 3% of the value of total benefits. The
other major assistance programs, aid to families with dependent
children and medicaid, already operate under a 3% target error
rate. Other budget proposals will help States reduce erroneous
payments by streamlining the calculation of benefits and simplifying the definition of a household.
In addition, the administration is proposing that all States would
be required to adopt a community work experience program, in
which able-bodied food stamp recipients must participate in workrelated activities as a condition of their eligibility. This program
will encourage recipients to find work in the private sector or
5-124
THE BUDGET FOR FISCAL YEAR 1984
perform useful public services when no private job is available.
Another 1984 proposal would freeze cost-of-living adjustments 6
months.
Child nutrition and other programs.—The child nutrition programs subsidize meals for children in schools, child care facilities,
and other institutional settings. Approximately 24.3 million young
Americans will receive federally subsidized meals in 1983. Subsidies consist of both cash and commodity assistance. Federal outlays
in 1984 are estimated to be $4.6 billion for all programs in this
category.
In past years, changes were made in the child nutrition programs to focus assistance on needy youngsters, reduce duplication
in subsidies, and restrain the growth in Federal costs. Several
additional changes are reflected in this budget such as a 6-month
freeze on cost-of-living adjustments. Legislation will be proposed to
consolidate the school breakfast, child care, and summer feeding
programs into a general nutrition assistance grant for the States.
This will reduce costly and complicated Federal regulations and
maximize State flexibility in providing nutrition assistance for
meals consumed away from home outside a school lunch setting.
Outlays for this grant are estimated to be $535 million in 1984.
Other proposals would tie the reimbursement rate for all lunches
to the cost-of-living and relieve schools of the burden of determining eligibility for reduced price and free school lunches.
The special supplemental food program for women, infants, and
children (WIC) will provide nutritious food supplements to an estimated 2.3 million low-income women and their young children in
1984. It lessens health problems associated with inadequate diets
during critical stages of child development. WIC has grown rapidly
since its inception, with outlays rising from $14 million in 1974 to
an estimated $1.1 billion in 1984.
Other income security.—A number of other income security programs assist the poor. Estimated outlays are $18.7 billion in 1984.
Supplemental security income.—The supplemental security
income (SSI) program, administered and financed by the Federal
Government, will make cash payments to about 4 million needy
aged, blind, or disabled individuals in 1984. The basic Federal grant
to recipients is supplemented by State payments in some States.
The recently enacted Tax Equity and Fiscal Responsibility Act of
1982 contained changes for SSI, such as prorating benefits from the
date of application or the date of eligibility and rounding benefit
and income eligibility amounts to the next lower dollar. SSI and
INCOME SECURITY
5-125
social security, cost-of-living increases are coordinated in determining monthly benefit awards.
Federal outlays for SSI in 1984 are estimated at $7.8 billion,
compared to the 1983 level of $8.8 billion. The decrease results in
part because the first 1984 monthly payment date falls on a weekend and therefore will be paid in 1983. In addition, the number of
recipients is expected to decline in 1984 as a result of fewer claims
and fewer new awards. However, proposed legislation is estimated
to increase outlays $341 million in 1984. This is the net effect of
decreases in benefits because of the delay in cost-of-living adjustments and an increase in benefits because an additional $30 of
social security benefits will not be counted as income in calculating
the SSI benefit.
AFDC and child support enforcement—Aid to families with dependent children (AFDC) helps State and local governments finance cash assistance to needy families. States administer the
AFDC program, determining guidelines for eligibility and the level
of benefits within broad Federal rules. The Federal Government
reimburses States, on average, for slightly more than half of benefit costs. Child support enforcement (CSE) finances most State and
local administrative expenses for establishing paternity and collecting support from legally liable absent parents. These collections
offset State and Federal AFDC costs. Federal outlays for AFDC and
CSE are estimated to be $7.5 billion in 1984, compared to $8.2
billion in 1983. About 3.8 million families are expected to receive
AFDC benefits in 1984. Child support collections on behalf of about
900,000 of these families are also anticipated.
Reforms enacted in the Omnibus Budget Reconciliation Act of
1981 and the Tax Equity and Fiscal Responsibility Act of 1982 have
helped refocus AFDC on its original goal: to serve as an aid for
dependent children in families where the resources for complete
self-support do not exist. These reforms created new opportunities
for work and work experience, corrected inequities that provided
higher benefits from receiving welfare than from working, and
retargeted assistance more to the needy by taking into account
resources and income available to the family that were previously
not counted.
Legislation is proposed for 1984 to establish comprehensive programs of work-related activity for AFDC applicants and recipients
in all States; those who are able to work would be required to do so
as a condition of AFDC eligibility. The work incentive (WIN) program, classified in the education, training, employment, and social
services function, which has not been proven successful, would be
replaced by this reform. Legislation is also proposed to improve
equity among similarly situated families by including all related
adults and children in the AFDC assistance unit, and adjusting
380-000 0 - 83 - 16 : QL 3
5-126
THE BUDGET FOR FISCAL YEAR 1984
payments for shelter and utilities costs where costs can be shared
with other household members. Several new incentives are proposed to improve State and local performance in collecting child
support payments. These changes would restructure Federal financing to reward and encourage increased collections and improved cost effectiveness. Tougher State laws and procedures would
also be required. These reforms to AFDC and CSE will save an
estimated $0.7 billion in Federal outlays in 1984 and a comparable
amount in State and local costs. Proposed child support reforms
will also strengthen family responsibility and improve the financial
situation of women.
Earned income tax credit.—Since 1975, the Federal Government
has provided a tax credit for low-income workers that reduces their
income tax liabilities. Where the credit amounts to more than the
income taxes owed, the worker receives the difference. Beginning
in 1979, provision was made for the credit to be received in advance through additions to wages. In 1984, total budget outlays for
these payments are estimated to be $1.1 billion. The tax expenditure is estimated at $340 million in 1984.
Refugee assistance.—The Federal Government provides grants to
States for cash and medical assistance, employment training, social
services, child welfare services, and other assistance to needy refugees and entrants. In 1984, the administration proposes a per
capita grant assistance program to fund State assistance to refugees and entrants not categorically eligible for AFDC, medicaid, or
general assistance. Estimated outlays are $521 million in 1984.
Additional funding for refugee assistance is discussed in the international affairs function.
Low-income home energy assistance.—To assist low-income families with rising heating costs, $1.3 billion in budget authority is
proposed for low-income home energy assistance in 1984. This is a
$686 million reduction from 1983. The program makes grants to
States for aid to low-income persons in the form of direct cash
assistance, direct payments to fuel vendors, or payments to public
housing building operators. In an effort to direct these funds more
to low-income heating needs, legislation is proposed to revise the
State allotment formula. The new formula will target more funds
to States with severe winter climates and large, low-income populations.
Credit programs.—The credit budget totals in this function are
estimated to be $15.7 billion in 1984. Most of the credit activities in
this function finance public housing operation and construction.
For 1984, new direct loan obligations in this function are proposed
to be $1.0 billion and guaranteed loan commitments are proposed
5-127
INCOME SECURITY
to be $14.7 billion. As shown in the credit program table, a portion
of the guaranteed loans for public housing operation and construction are financed as off-budget direct loans by the Federal Financing Bank.
CREDIT PROGRAMS—INCOME SECURITY
(In millions of dollars)
Actual
1982
Direct loans:
Low rent public housing:
New obligations
Net outlays
Outstanding
Low rent public housing (loans made by FFB): 1
Net outlays
Outstandings
Other income security:
New obligations
Net outlays
Outstandings
Estimate
1983
1984
1985
1986
500
-45
75
905
-21
162
162
162
750
-42
120
696
1,624
591
2,216
-37
2,179
-27
2,152
-29
2,122
1
-1
24
5
2
26
2
*
26
2
*
26
3
*
906
674
1,811
1,005
593
2,404
1,002
-37
2,367
752
-70
2,297
503
-74
2,223
13,284
2,552
19,145
14,637
1,628
20,773
14,709
1,915
22,688
16,493
1,688
24,376
18,146
1,461
25,837
Total credit budget (new obligations and new
commitments)
14,191
15,642
15,711
17,245
18,648
Total, direct loans:
New obligations...
Net outlays
Outstandings
Guaranteed loans:
Low rent public housing:
New commitments
Net change
Outstandings
25
'These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency. The totals for
low-rent public housing loans made by FFB in this table are not identical to the entries in the addendum to the National Needs table for offbudget Federal entities due to timing differences between budget authority and new obligations.
Tax expenditures.—A variety of income tax exclusions, deferrals,
and tax credits assist the unemployed, aged, retired, and disabled.
Unemployment compensation benefits received by people with an
annual income, including unemployment compensation, of under
$12,000 (single persons) or under $18,000 (married couples) are
excluded from taxable income. This results in an estimate of $2.9
billion in 1984. The exclusion from income subject to tax of most
social security (including benefits for dependents and survivors)
and most railroad retirement benefits results in estimates of $20.7
billion and $725 million, respectively, in 1984. The exclusion of
workers' compensation benefits and the exclusion from income of
benefits for the disabled result in estimates of $2.1 billion and $1.7
billion, respectively, in 1984. The exclusion of disability pay from
income taxes will result in an estimate of $150 million. The esti-
5-128
THE BUDGET FOR FISCAL YEAR 1984
mates resulting from the extra personal exemption for those over
64, the blind, and from tax credits for the elderly are $2.4 billion,
$35 million, and $135 million, respectively, in 1984.
Special tax provisions also provide incentives for employers to
provide their workers with pensions and other benefits such as life,
accident and disability insurance, and supplemental unemployment
compensation. Excluding the cost of these benefits from taxable
income results in tax expenditures estimates of $78.8 billion, $3.1
billion, $160.0 million, and $5.0 million, respectively, in 1984.
An itemized deduction for up to $1,500 of expenses for adoption
of children with special needs results in a tax expenditure of $15
million in 1984. The cost of all self-employed retirement plans and
the IRA and Keogh Plans is $6.5 billion in 1984. Total tax expenditures for existing income security provisions are estimated to be
$123.3 billion in 1984.
As part of the bipartisan plan to restore social security reserves
to safer levels, the administration supports two tax expenditures
proposals. Half of the social security benefits received by people
whose income is above specified levels would be subject to tax. This
would reduce the present tax expenditure, which excludes all social
security benefits from adjusted gross income. In addition, employees
would receive a refundable tax credit in 1984 that would offset the
additional social security tax they would pay in that year due to an
acceleration of the scheduled increase in the payroll tax rate. The
1984 estimates for these two provisions are $2.7 and $3.2 billion,
respectively.
The new proposal to both extend the Federal supplementary
compensation benefit program and provide incentives for employers to hire the long-term unemployed is discussed under employment compensation.
Related programs.—A number of other programs are related to
income security but have as their primary purpose meeting other
national needs and servicing other major missions. Examples of
such programs are veterans pensions and compensation, military
retirement and a number of health programs, such as medicare
and medicaid, that help the aged or needy.
VETERANS BENEFITS AND SERVICES
5-129
VETERANS BENEFITS AND SERVICES
National Needs Statement
Federal funds for veterans benefits and services are to meet
the Nation's obligation to veterans of military service.
The benefits and services provided to veterans recognize the
special needs of veterans and their survivors that result from sacrifices made in military service. Benefits compensate for loss of
earnings resulting from service-related disabilities, provide medical
care for physical and psychological disabilities suffered in military
service, and assist in preparing returning veterans for civilian life.
In addition, veterans benefits assist needy veterans of wartime
service and their survivors. Outlays for veterans benefits and services are estimated at $24.4 billion in 1983 and $25.7 billion in 1984.
Additional assistance is provided to veterans through loan guarantees and direct loans. The credit budget for veterans benefits and
services is expected to increase dramatically from $6.9 billion in
1982 to $19.5 billion in 1983 and $20.8 billion in 1984.
This budget includes a legislative proposal for a 5.1% cost-ofliving increase in compensation benefits for veterans with servicerelated disabilities to be effective in April 1984.
Funds are included for health care for the growing number of
elderly veterans. During the 1980's, the number of veterans over
age 65 is expected to more than double as virtually all of the 11.4
million veterans of World War II reach that age. In anticipation of
this change, the Veterans Administration's (VA's) medical care and
research activities are devoting more attention to the problems of
aging veterans by increasing the availability of long-term and geriatric care and devoting more research to the illnesses and disabilities of the aged.
This budget also provides construction funds to maintain, renovate, modernize, and systematically replace aging VA medical
structures in order to prevent deterioration of the physical facilities housing VA medical services. Construction projects will focus
especially on correcting fire and safety deficiencies, and minimizing
potential risks from earthquakes.
Several legislative proposals, which are described below, would
offset part of the costs of these improvements.
5-130
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: PROVIDING VETERANS BENEFITS AND SERVICES
(Functional code 700; in millions of dollars)
Major missions and programs
BUDGET AUTHORITY
Income security for veterans:
Compensation and pensions:
Service-connected compensation:
Existing law
Proposed legislation
Non-service-connected pensions:
Existing law
Proposed legislation
Burial and other benefits
Insurance programs:
National service life insurance trust fund....
U.S. Government life insurance trust fund..
All other insurance programs
Insurance program receipts
Subtotal, income security for veterans.
Veterans education, training, and rehabilitation:
Existing law
Proposed legislation
Subtotal, veterans education, training, and rehabilitation.
Hospital and medical care for veterans:
Medical care and hospital services
Construction
Medical administration, research, and other
Subtotal, hospital and medical care for veterans
1982
actual
1983
estimate
9,590
9,463
4,048
3,827
140
Subtotal, other veterans benefits and services.
Deductions for offsetting receipts
Total, budget authority
1985
estimate
1986
estimate
9,856 10,006 10,022
238
663 1,049
3,950 3,967 4,090
-113 -150 -173
164
149
156
141
1,164 1,187 1,209 1,242 1,263
31
26
23
20
18
7
9
6
8
9
-473 -445 -433 -440 -442
14,510 14,205 14,887 15,474 16,000
1,964
1,666
1,392
-20
1,171
-4
991
-2
1,964
1,666
1,371
1,167
989
7,101
490
211
7,695 8,079
886
567
223
212
8,408
928
228
8,720
1,061
233
7,802
8,474
9,188
9,564 10,014
-82
-90
-92
702
732
-1
46
738
-1
45
749
_\
Veterans housing (receipts)
Other veterans benefits and services:
Cemeteries, undistributed VA overhead, and other:
Existing law
Proposed legislation
Non-VA support programs
1984
estimate
672
37
44
709
742
776
782
792
_3
-3
-3
-3
-3
24,982 25,002 26,129 26,891 27,792
5-131
VETERANS BENEFITS AND SERVICES
NATIONAL NEED: PROVIDING VETERANS BENEFITS AND SERVICES—Continued
(Functional code 700; in millions of dollars)
Major missions and programs
OUTLAYS
Income security for veterans:
Compensation and pensions:
Service-connected compensation:
Existing law
Proposed legislation
Non-service-connected pensions:
Existing law
Proposed legislation
Burial and other benefits
Insurance programs:
National service life insurance trust fund....
U.S. Government life insurance trust fundAll other insurance programs
Insurance program receipts
Subtotal, income security for veterans.
Veterans education, training, and rehabilitation:
Existing law
Proposed legislation
Subtotal, veterans education, training and rehabilitation.
Hospital and medical care for veterans:
Medical care and hospital services
Construction
Medical administration, research, and other
Subtotal, hospital and medical care for veterans..
Veterans housing:
Loan guaranty revolving fund
Direct loan revolving fund
Other (HUD participation sales trust fund)..
Housing program receipts
Subtotal, veterans housing.
1982
actual
1983 1984 1985 1986
estimate estimate estimate estimate
9,276
9,687
9,855 10,000 10,020
632 1,016
198
3,879
3,954
-46
141
3,940 3,957 4,079
- 6 8 -150 -173
164
148
156
140
954
925
986 1,014 1,046
61
64
54
50
47
-102 - 8 7 - 8 8 - 6 1 - 4 6
-473 - 4 4 5 - 4 3 3 - 4 4 0 - 4 4 2
13,710 14,219 14,593 15,158 15,710
1,947
1,624
1,350
-20
1,128
-4
948
-2
1,947
1,624
1,329
1,124
946
6,851
444
221
7,563
494
235
7,981
688
231
8,303
808
230
8,607
815
233
7,517
8,292
8,900
9,341
9,656
183 - 1 9 2
- 6 2 -174
-16
-82
261
-25
-16
-90
183
-23
-4
-92
89
-22
-7
102
-464
130
64
60
646
703
739
-1
43
749
-1
42
Other veterans benefits and services:
Cemeteries, undistributed VA overhead, and other:
Existing law
Proposed legislation
Non-VA support programs
Subtotal, other veterans benefits and services.
36
40
733
-1
44
682
744
776
782
791
-3
-3
-3
-3
24,411
25,724
Deductions for offsetting receipts
Total, outlays
23,955
26,466 27,159
5-132
THE BUDGET FOR FISCAL YEAR 1984
Income security for veterans.—In addition to Federal income security programs for the general population, such as social security,
unemployment insurance, and food stamps, several VA programs
help certain veterans and their survivors maintain their income
when the veteran is disabled, aged, or deceased. Outlays for this
mission are estimated to increase from $14.2 billion in 1983 to $14.6
billion in 1984.
Service-connected compensation. —Monthly compensation payments are provided to veterans with disabilities resulting from
military service. The amount of the benefit depends on the degree
to which average earnings of individuals with a particular disability are reduced. Payments also are made to survivors of veterans
who die from service-connected injuries. Legislation effective in
October 1982 increased compensation benefits by an average of
7.4%.
The administration proposes legislation to provide a 5.1% cost-ofliving increase in compensation benefits, effective in April 1984.
The effective date of this increase reflects a 6-month delay from
the past practice of providing cost-of-living increases effective in
October of each year. Estimates for subsequent years assume
annual cost-of-living increases based on the projected increase in
the Consumer Price Index. Beginning in April 1985, the administration proposes to pay compensation cost-of-living increases in
accordance with the following schedule:
Percent of rated disability:
100
60-90
40-50
10-30
Percent of cost-ofliving increase to be
rovided
P
100
85
60
45
Allowances provided to compensate beneficiaries for dependents
and clothing would continue to reflect 100% of the cost-of-living
increase.
An estimated 2.6 million veterans and their survivors are expected to receive compensation benefits in each of the years 1983
through 1986. Outlays for this mission are estimated to increase
from $9.7 billion in 1983 to $10.1 billion in 1984.
Non-service-connected pensions.—Pensions are provided to needy
wartime-service veterans who are 65 or older or who have become
disabled subsequent to their military service. Survivors of wartimeservice veterans also may qualify for pension benefits based on
VETERANS BENEFITS AND SERVICES
5-133
financial need. This program would be subject to a proposed 6month postponement in cost-of-living increases from June to December of each year. The December 1983 cost-of-living increase is
estimated to be 5.1%.
Even though the number of veterans age 65 and over is expected
to double during the 1980's, the number of pension recipients is
expected to decline from 1.8 million in 1982 to 1.7 million in 1984.
This is due to the Veterans and Survivors Pension Improvement
Act of 1978, which sharpened the focus of veterans pension benefits
upon needy, nonservice disabled veterans. Outlays for veterans
pensions are estimated at $3.9 billion in 1983 and 1984.
Burial and other benefits.—Families of deceased wartime veterans who are to be buried in private cemeteries may receive an
allowance to apply toward the purchase of burial plots. Families of
deceased veterans who were in receipt of compensation or pensions
also receive burial benefits to assist in defraying funeral expenses.
Outlays for burial and other allowances are estimated to increase
from $141 million in 1983 to $148 million in 1984.
Insurance programs.—The budget assumes that life insurance
programs for veterans and their survivors will provide an estimated $29.2 billion of coverage on over 4 million policies in 1984.
Direct loan obligations against life insurance policies in 1984 are
expected to be $163 million, 4.5% higher than the $156 million
estimated for 1983.
Veterans education, training, and rehabilitation.—The GI bill provides education benefits ranging from college courses to vocational
and on-the-job training. These benefits help eligible veterans make
the transition from military to civilian life by assisting them to
obtain the education they might have received had they not entered military service. Active duty servicepersons and widows and
children of veterans who have died or been totally disabled in
military service also are eligible for these benefits.
Individuals who entered military service after 1976 are eligible
for the post-Vietnam-era education program, which allows them to
set aside $25 to $100 from their monthly pay to finance future
education. These amounts are matched by the Government on a
two-for-one basis and returned to them in education payments after
they are discharged. The Veterans Administration administers this
program, but it is funded by the Department of Defense and is
classified in the national defense function.
Legislation is being proposed that would eliminate correspondence training and terminate the advance payment of educational
assistance allowances to veterans and dependents under the GI bill.
5-134
THE BUDGET FOR FISCAL YEAR 1984
The anticipated savings in 1984 from enactment of this proposal is
$20 million.
More than 65% of all Vietnam-era veterans have utilized GI bill
benefits. In 1984, nearly 534 thousand GI bill trainees are expected
to participate in the program, compared with 683 thousand in 1983.
The number of GI bill trainees (including dependents) will continue
to drop in the future as the number of eligible veterans becomes
smaller. Thus, outlays for this mission are estimated to decline
from $1.6 billion in 1983 to $1.3 billion in 1984, and to $0.9 billion
by 1986.
Hospital and medical care for veterans.—The Veterans Administration provides hospital and medical care to veterans by operating
a nationwide medical care system consisting of 172 hospitals, 226
outpatient clinics, 101 nursing homes, and 16 domiciliary facilities.
In 1984, it is expected to accommodate over 18.4 million outpatient
medical and dental visits, and to treat nearly 1.4 million patients
in VA and community facilities. Outlays for medical programs are
estimated to be $8.3 billion in 1983 and $8.9 billion in 1984.
Medical care and hospital services.—In 1983 and 1984 the VA
plans to continue to reorder its program of health care services to
provide the most appropriate types of care and to accommodate the
anticipated influx of World War II veterans. Almost all of this
group of about 11.4 million veterans (40% of all veterans) will
reach age 65 during the 1980's. This milestone is especially significant because veterans reaching age 65 become eligible for a wide
variety of medical benefits without regard to financial status. The
VA therefore anticipates a rapid increase in the number of veterans seeking long-term and geriatric care.
The Veterans Administration Health Care Amendments of 1981
require that VA medical facilities provide care for veterans whose
disabilities result from exposure to agent orange and low-level
ionizing radiation. These cases receive outpatient priority second
only to veterans being treated for service-connected disabilities.
Outlays for medical care and hospital services are estimated to be
$8.0 billion in 1984, a 5.5% increase from the $7.6 billion estimated
for 1983.
Construction of hospital and extended care facilities.—Budget authority of $886 million is requested for these programs in 1984.
This includes $868 million for VA medical construction in 1984,
$319 million more than for 1983. The 1984 request recognizes the
critical need for renovation and modification of many of the aging
facilities in which medical services are provided. Funding is included for new nursing homes, projects to remedy health and safety
5-135
VETERANS BENEFITS AND SERVICES
deficiencies, and construction of a replacement hospital in Minneapolis, Minn. Budget authority of $18 million is requested for 1984,
the same as that enacted for 1983, for grants to States for the
construction or repair of State veterans homes for the care of aging
veterans.
Veterans housing.—VA mortgage loan guarantee and direct loan
programs are expected to assist 310 thousand veterans obtain mortgages in 1984. New guaranteed loan commitments and direct loan
obligations for mortgage loans in 1984 are estimated at $19.9 billion and $0.7 billion, respectively. Sales of housing assets (VA
mortgages), estimated at $408 million in 1984, will partially offset
the direct cost of these programs, resulting in net outlays of $130
million.
CREDIT PROGRAMS—VETERANS BENEFITS AND SERVICES
(In millions of dollars)
Direct loans:
Income security programs:
New obligations
Net outlays
Outstandings
Education programs:
New obligations
Net outlays
Outstandings
Mortgage insurance and other housing programs:
New obligations
Net outlays
Outstandings
Total, direct loans:
New obligations
Net outlays
Outstandings
Guaranteed loans:
Mortgage insurance and other housing programs:
New commitments
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
Estimate
Actual
1982
1983
1984
1985
1986
152
-20
1,400
156
-7
1,393
163
-6
1,387
166
-6
1,381
168
-6
1,375
2
-3
62
1
-7
55
1
-9
47
1
-9
38
1
-9
29
720
251
1,906
691
-390
1,516
721
259
1,774
735
234
2,008
753
163
2,171
874
228
3,368
849
-404
2,964
885
244
3,208
902
219
3,427
923
147
3,575
5,983 18,648 19,875 20,355 20,994
5,171 17,075 18,314 18,759 19,391
108,784 125,858 144,172 162,931 182,322
6,857
19,497
20,760
21,257 21,917
Other veterans benefits and services.—The Veterans Administration oversees a national cemetery system for burial of eligible
veterans, servicepersons, and their survivors. Outlays for these
and related programs are estimated to be $744 million in 1983 and
$776 million in 1984.
5-136
THE BUDGET FOR FISCAL YEAR 1984
Credit programs.—The credit budget totals in this function are
estimated to rise dramatically from $6.9 billion in 1982 to $19.5
billion in 1983 and $20.8 billion in 1984. This large increase is due
almost entirely to an increase in demand for new commitments for
guaranteed loans for mortgage insurance and other housing programs, due in large part to the projected decline in market interest
rates. These commitments are estimated to increase from $6.0 billion in 1982 to $18.6 billion in 1983, and $19.9 billion in 1984.
Tax expenditures.—In addition to direct Federal funding, a
number of tax expenditures provide assistance to veterans. Disability compensation, pension, and GI bill benefits for veterans are
excluded from taxable income. The estimates for these exclusions
in 1984 are $1.8 billion, $295 million, and $125 million, respectively.
Total tax expenditures for veterans are estimated to be $2.3 billion
for 1984.
Related programs.—In addition to the assistance provided specifically for veterans by the VA, many veterans receive assistance
from other income security, health, housing, education, training,
employment, and social service programs supported by the Federal
Government and available to the general population. Some of these
programs have components specifically intended to assist veterans.
ADMINISTRATION OF JUSTICE
5-137
ADMINISTRATION OF JUSTICE
National Needs Statement
Federal expenditures for the administration of justice are to
protect persons and their property through enforcement of
Federal laws; to defend the public interest in criminal and civil
proceedings; and to operate detention and correctional facilities for those charged with or convicted of violating Federal
law.
One of the most fundamental responsibilities of the Government
is to provide a means to ensure the safety of the people and to
resolve disputes peacefully and fairly. In 1984, the Federal Government will spend an estimated $5.5 billion in outlays to meet these
needs. State and local governments will spend an estimated seven
times as much, reflecting their more immediate involvement in
this area.
An important theme in the administration of justice is enhancing the Nation's law enforcement abilities, particularly in the
battle against illegal drug trafficking. This effort, carried on by the
task force operating in South Florida and 12 additional task forces
created in 1983 which are located throughout the country, will
continue in 1984.
A second theme is increasing criminal justice assistance to State
and local governments through a new formula and categorical
grant program.
The third theme is providing additional prison space through
construction of new prisons and expansion of existing facilities to
accommodate the rapidly increasing Federal inmate population.
Federal law enforcement activities.—As in the past, over half of
the total Federal resources for the administration of justice are
dedicated to law enforcement activities. Estimated outlays of $3.3
billion in 1984, 9% above the 1983 level, will maintain current
activities and meet the objectives outlined above.
5-138
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: ADMINISTRATION OF JUSTICE
(Functional code 750; in millions of dollars)
1983
estimate
1984
estimate
1985
estimate
1986
estimate
283
733
142
974
204
323
128
310
798
147
1,067
249
345
106
331
1,001
157
1,118
282
354
82
341
963
157
1,104
267
355
80
346
926
160
1,122
265
357
Subtotal, Federal law enforcement activities
2,658
3,045
3,348
3,269
3,255
Federal litigative and judicial activities:
Civil and criminal prosecution and representation
Federal judicial activities
Representation of indigents in civil cases
553
735
241
604
840
241
658
934
678
923
688
941
1,529
1,685
1,592
1,601
1,628
Federal correctional activities
423
404
523
531
496
Criminal justice assistance:
Existing law
Proposed legislation
140
137
72
92
73
92
73
2
140
137
165
165
76
-32
-26
?fi
26
26
4,718
5,245
5,602
5,541
5,429
265
697
137
933
198
299
104
305
801
145
1,064
244
353
103
324
966
155
1,096
276
354
87
336
975
155
1,078
262
353
79
340
938
158
1,095
259
354
Subtotal, Federal law enforcement activities
2,529
3,017
3,276
3,246
3,222
Federal litigative and judicial activities:
Civil and criminal prosecution and representation
Federal judicial activities
Representation of indigents in civil cases
541
716
259
592
835
242
646
924
21
667
913
676
930
1,516
1,669
1,592
1,580
1,607
Federal correctional activities
364
424
466
494
531
Criminal justice assistance:
Existing law
Proposed legislation
294
189
148
36
97
92
73
58
294
189
184
189
131
-32
-26
-26
-26
26
4,671
5,273
5,491
5,483
5,464
Major missions and programs
BUDGET AUTHORITY
Federal law enforcement activities:
Organized crime drug enforcement (OCDE)...
Narcotics violation investigation (DEA and FBI)
Other investigation (FBI)
Alcohol, tobacco, and firearms investigation (ATF)
Border enforcement activities (Customs and INS)
Protection and other activities (Secret Service)
Other enforcement
Subtotal, Federal litigative and judicial activities
Subtotal, criminal justice assistance
Deductions for offsetting receipts
Total, budget authority
OUTLAYS
Federal law enforcement activities:
Organized crime drug enforcement (OCDE)
Narcotics violation investigation (DEA and FBI)
Other investigation (FBI)
Alcohol, tobacco, and firearms investigation (ATF)
Border enforcement activities (Customs and INS)
Protection and other activities (Secret Service)
Other enforcement
Subtotal, Federal litigative and judicial activities
Subtotal, criminal justice assistance
Deductions for offsetting receipts
Total, outlays
1982
actual
ADMINISTRATION OF JUSTICE
5-139
Organized crime drug enforcement (OCDE).—The OCDE program
is a network of 12 regional task forces, in addition to the South
Florida task force, covering the entire United States. Comprising
investigators, prosecutors, and other enforcement experts, these
task forces focus on preventing drug trafficking by prosecuting
high-level organized crime violators. OCDE is an interagency effort
including resources from the U.S. Attorneys, the Federal Bureau of
Investigation (FBI) and the Drug Enforcement Administration
(DEA), as well as the Internal Revenue Service, the Customs Service, the Bureau of Alcohol, Tobacco and Firearms, and the Coast
Guard.
In addition to the prosecutors, investigators, and agents, the
OCDE proposal provides funding for local jail improvements, FBI
and DEA automated information systems, and additional Federal
prison space. The table entries for 1984 show estimated OCDE
outlays and proposed budget authority for the Department of Justice only, while the 1983 OCDE entry includes Justice, Department
of the Treasury, and Coast Guard activities for this program. Total
outlays for this effort in 1984, including those classified in Treasury, are estimated to be $135 million, a 30% increase over 1983.
Narcotics violation investigation (DEA and FBI).—The DEA was
established in 1973 to provide leadership in suppressing the national and international trade of narcotics and dangerous drugs. To
combat the growing menace of drug trafficking, the FBI was given
concurrent jurisdiction in this area in January 1982, and the DEA
now reports to the Director of the FBI. In 1984, DEA will upgrade
its data processing systems and expand its laboratory resources and
foreign investigations. Total outlays for narcotics violation investigation are expected to be $324 million in 1984, a $19 million or 6%
increase above 1983 levels.
Other investigation (FBI).—The FBI enforces a broad range of
Federal criminal statutes, works with State and local authorities to
support FBI missions, and assists States and localities through
training, dissemination of information, and other assistance. Federal law enforcement funds are used primarily for investigating
crimes that are purely Federal, multijurisdictional, or of a unique
nature requiring Federal involvement. Creating a more efficient,
effective investigative organization through major capital invest-
5-140
THE BUDGET FOR FISCAL YEAR 1984
ments is a high priority. A major initiative is to complete the third
phase of the long-planned Automated Identification Division
System (AIDS-III) program which will eventually result in a fully
automated fingerprint identification service. Outlays are estimated
to be $966 million in 1984, an increase of 21% above 1983 levels.
Border enforcement activities (Customs and INS).—The United
States Customs Service administers the Tariff Act of 1930 and
other laws regarding assessment and collection of customs duties,
excise taxes, fees and penalties on imported merchandise; stopping
and seizing contraband; and processing persons, carriers, cargo and
mail into and out of the United States. The 1984 budget proposal
for Customs provides additional support for the OCDE regional
task forces and increases funding for several administration priorities, including "Operation Exodus," a program to control the illegal export of critical technology.
The Immigration and Naturalization Service (INS) administers
laws related to the admission, exclusion, deportation and naturalization of aliens. Increased productivity and better management
will be achieved through additional data processing equipment and
the establishment of a national records center. The budget also
maintains the administration's commitment to strong border enforcement. Outlays for border enforcement are estimated to be $1.1
billion in 1984.
Federal litigative and judicial activities.—The Department of Justice litigates all of the Federal Government's criminal cases and
most of its civil cases. During the past few years, the Department
has been increasing its efforts on the more complex, lengthy criminal cases involving organized crime and drug trafficking.
Civil and criminal prosecution and representation.—Outlays for
civil and criminal prosecution and representation are estimated to
rise from $592 million in 1983 to $646 million in 1984.
Among the administration's priorities in this area are:
• enforcement operations directed at identifying and seizing the
assets and profits of illegal drug trafficking organizations;
• maintaining an active role in civil litigation to protect the
Government's financial interests in court, particularly in the
area of debt collection;
• continued support for the recently established law enforcement coordinating committees, composed of Federal, State
and local law enforcement officials, which help coordinate
joint efforts and help formulate local enforcement cooperation
plans; and
• increased support for civil rights enforcement.
ADMINISTRATION OF JUSTICE
5-141
Federal judicial activities.—Budget estimates from the judiciary
are included in the budget without modification by the executive
branch. The U.S. Courts have estimated outlays of $924 million in
1984 for judicial branch activities in this function, an 11% increase
over the 1983 level.
Representation of indigents in civil cases.—The Legal Services
Corporation is a private non-profit organization that funds State
and local agencies providing free civil legal assistance to the poor.
Grantees are currently involved in cases both for individual clients
and in broader "law reform" activities.
The administration proposes that the Corporation not be reauthorized, and that no further separate Federal funding be provided.
The administration's social services block grant includes adequate
authority to fund legal services activities that States wish to provide for their citizens. In addition, private attorneys are expected
to increase free services to the indigent in accordance with the
legal profession's ethical obligations.
Federal correctional activities.—The Federal Government is responsible for the care and custody of prisoners charged with or
convicted of violating Federal laws.
Those people charged with a Federal crime and not yet convicted
or acquitted come under the jurisdiction of the U.S. Marshals, in
their role as agents of the U.S. Courts. Those not released on bond
or on their own recognizance are detained, usually in State or local
jail facilities, on a reimbursable basis. In some cases, they are held
in one of five Federal jails. In 1984, a sixth new Federal jail is
proposed for the Los Angeles area. In addition, $10 million will be
made available for the renovation, equipping, and, under certain
circumstances, construction of State and local jail facilities through
the Cooperative Agreement Program. If convicted, the offender is
transferred to one of the 37 Federal prison facilities.
In response to the burgeoning Federal prison population, which
has grown 21% since January 1981, full funding for one new prison
and planning funds for a second, both of which will be located in
the Northeast, are proposed in the 1984 budget. Additional funds
will also be made available to renovate and expand existing facilities. Outlays for correctional activities in 1984 are estimated to be
$466 million, 10% above the 1983 level.
Criminal justice assistance.—A new $92 million criminal justice
assistance program is proposed to provide training, technical assistance, and financial assistance to State and local criminal justice
agencies through both formula and discretionary grants. These
grants will support innovative projects or programs of proven effectiveness.
380-000 0 - 83 - 17 : QL 3
5-142
THE BUDGET FOR FISCAL YEAR 1984
The administration is not requesting any new budget authority
for juvenile justice and delinquency prevention programs. The primary objective of these programs was to deinstitutionalize juveniles
whose offense, such as running away from home, would not be a
crime if committed by an adult. This goal has been accomplished.
Resources to deal with serious juvenile offenders will be available
through the new criminal justice assistance program.
Outlays for criminal justice assistance are estimated to be $184
million in 1984, about the same as in 1983.
Related programs.—A number of programs classified in other
functions support the administration of justice. Over 100 agencies
and regulatory commissions perform some type of law enforcement
activity. About 30 Federal agencies, including the Departments of
Agriculture and Labor, the Environmental Protection Agency, and
most independent regulatory commissions, have some litigation authority independent of the Department of Justice.
GENERAL GOVERNMENT
5-143
GENERAL GOVERNMENT
National Needs Statement
Federal funds for general government are to provide central
policy formulation and management that responds effectively
and efficiently to the needs of the Nation.
The general government function includes the central management and policy responsibilities of the Federal Government. The
goals of the President, his staff, the Congress, and other personnel
in this function are to address the needs of the Nation and to
improve the management and efficiency of Federal finances, property, and personnel. Central services include tax collection, fiscal
operations, personnel management, property control, and records
management.
Outlays for general government are estimated to be $6.0 billion
in 1984, compared with $5.8 billion in 1983. Major goals in this
function are to enhance efforts to identify and collect unpaid taxes
and improve productivity in the Federal Government.
Legislative functions.—By law, budget estimates for the legislative branch are included in the President's budget without change
as submitted by the Congress. Estimated outlays for the legislative
branch activities in this function are $1.3 billion in 1984 and include the operation of the Congress, the General Accounting Office,
the Congressional Research Service, and similar activities.
Executive direction and management—Outlays for the White
House, other components of the Executive Office of the President,
and related activities are estimated to be $112 million in 1984, an
increase of $8 million over 1983.
Central fiscal operations.—The mission of central fiscal operations is to collect taxes, administer the public debt, and carry out
certain other financial operations of the Federal Government. Outlays are estimated to be $3.5 billion in 1984, a 7.1% increase over
the 1983 level.
Collection of taxes.—This mission is carried out by the Internal
Revenue Service (IRS), which seeks to improve voluntary compliance with the tax laws. The Tax Equity and Fiscal Responsibility
Act (TEFRA) of 1982, which included new administrative incentives
for compliance, should help in accomplishing this mission.
Major new administrative provisions of the Act authorize:
5-144
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: GENERAL GOVERNMENT
(Functional code 800; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
1,172
1,260
1,328
1,317
1,376
BUDGET AUTHORITY
Legislative functions
Executive direction and management:
Existing law
Proposed legislation
Subtotal, executive direction and management
Central fiscal operations:
Collection of taxes
Federal Financing Bank
Other fiscal operations
Subtotal, central fiscal operations
General property and records management:
Personal property
Records management
Other:
Existing law
Proposed legislation
Subtotal, general property and records management
Central personnel management
95
103
114
-2
121
-2
122
-2
95
103
113
119
120
2,672
-148
323
3,043
-152
402
3,292
-179
424
3,447
-204
425
3,499
-215
444
2,847
3,293
3,537
3,668
3,728
20
81
37
88
61
87
62
89
62
92
285
329
351
2
357
362
386
454
502
509
516
141
142
151
153
155
192
170
150
160
22
9
18
18
141
?n
285
8
406
8
405
34
400
-14
400
-14
507
592
607
564
547
Other general government:
Territories
Indian affairs
Treasury claims....
Other
Subtotal, other general government
Deductions for offsetting receipt
Total, budget authority
-177
-163
-184
-173
-169
4,970
5,682
6,055
6,159
6,273
• withholding of taxes at a rate of 10% on most interest and
dividend payments made after June 30, 1983;
• imposition of new civil penalties on persons who file or prepare false tax returns;
• expansion of reporting requirements and penalties for failure
to comply; and
• a change in the rules regarding the computation of interest
on underpayments and overpayments of tax to require biannual adjustment of the interest rate, daily compounding, and
to limit interest on overpayments claimed on late returns.
These and other compliance provisions of the Act are expected to
increase receipts to the Treasury by an estimated $9 billion in 1984
and by $12 billion annually by 1988. The expected increase of 1,300
IRS personnel in 1984 is primarily to enforce this legislation.
5-145
GENERAL GOVERNMENT
NATIONAL NEED: GENERAL GOVERNMENT—Continued
(Functional code 800; in millions of dollars)
Major missions and programs
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
1,177
1,253
1,324
1,298
1,360
96
104
113
_2
117
-2
118
-2
96
104
112
115
116
2,513 3,031 3,278 3,415
-148 -152 -179 -204
408
417
291
396
3,467
215
432
OUTLAYS
Legislative functions
Executive direction and management:
Existing law
Proposed legislation
Subtotal, executive direction and management
Central fiscal operations:
Collection of taxes
Federal Financing Bank ...
Other fiscal operations
Subtotal, central fiscal operations
General property and records management:
Real property
Personal property
Records management
Other:
Existing law
Proposed legislation
Subtotal, general property and records management
Central personnel management
Other general government:
Territories
Indian affairs
Treasury claims
Other
Subtotal, other general government
Deductions for offsetting receipts
Total, outlays
k
2,656
3,275
3,507
3,629
3,684
-92
70
73
94
37
90
137
61
85
30
62
88
-64
62
90
283
335
354
2
352
357
334
557
365
472
445
136
140
152
152
155
250
18
285
-49
233
13
406
-23
178
18
405
116
180
18
400
61
168
20
400
-63
504
628
717
537
525
-177
-163
-184
-173
-169
4,726
5,794
5,993
6,032
6,116
12
8
-9
-10
10
11
36
*
*
*
*
*
-12
12
48
-5
3
10
-11
-12
ADDENDUM
Off-budget Federal entity:
Federal Financing Bank:
Federal buildings fund:
Budget authority
Outlays
Territories:
Budget authority
Outlays
Other:
Budget authority
Outlays
Total:
Budget authority
Outlays
*$500 thousand or less.
5-146
THE BUDGET FOR FISCAL YEAR 1984
In 1984, IRS will continue a 1983 initiative designed to increase
emphasis on identification and collection of unpaid taxes, which
will yield $2.4 billion in additional receipts in 1984 and $4.5 billion
over the two year period.
Outlays for the collection of taxes are estimated to be $3.3 billion
in 1984, 8% higher than in 1983.
Federal Financing Bank (FFB).—The Federal Financing Bank
(FFB) is an off-budget Federal entity under the supervision of the
Treasury Department. It was created to reduce the cost of Federal
agency and federally assisted borrowing from the public and to
ensure that such borrowing takes place with the least disruption to
financial markets. The FFB neither initiates nor reviews Federal
programs; it is solely a financing vehicle. The Government agency
initiating the program is responsible for its review.
The FFB charges a fee to borrowers. It uses a small portion of
the funds received for administrative expenses. The surplus monies
are transferred to central fiscal operations and shown as offsetting
Treasury receipts. They are estimated to be $179 million in 1984.
Further discussion of the Federal Financing Bank is in Part 6 of
this volume, in Special Analysis E, "Borrowing and Debt," and in
Special Analysis F, "Federal Credit Programs." These sources also
summarize the distribution of FFB activity according to the agencies that use the bank. The tables in each function that show
budget authority and outlays display off-budget activity of the FFB
as addendum items.
Other fiscal operations.—Otherfiscaloperations include manufacturing coins by the Bureau of the Mint and printing currency by
the Bureau of Engraving and Printing. Estimated outlays in 1984
for other fiscal operations are $408 million, slightly higher than
estimated outlays of $396 million in 1983.
General property and records management—The General Services Administration (GSA) is the Government's builder and landlord, wholesaler and retailer, historian and records keeper. These
housekeeping services support the activities of other Federal agencies. Outlays for general property and records management are
estimated to be $365 million in 1984.
Central personnel management—Personnel management functions are carried out by the Office of Personnel Management
(OPM), the Federal Labor Relations Authority and the Merit Systems Protection Board. Estimated outlays for 1984 are $152 million.
The administration, through the Office of Personnel Management and the Office of Management and Budget, plans to analyze
the distribution of the workforce and make whatever changes are
necessary to ensure sound position management and conformance
GENERAL GOVERNMENT
5-147
with classification standards. An OPM study published in 1982, for
example, showed that over 14% of the general schedule workforce
was overclassified. Net savings of nearly $700 million would result
if all positions in the Federal workforce were correctly classified.
Critical review of the ways in which jobs are classified and work is
assigned is expected to produce substantial savings Governmentwide.
Other general government—Other activities in the general government function include payments of claims and judgments
against the Federal Government, funding for the territories, and
other activities. Outlays are expected to be $717 million in 1984,
compared to $628 million in 1983.
Territories.—Budget authority of $62 million is proposed for 1984
for continued support of the U.S. territories of Guam, American
Samoa, the Virgin Islands, and the Northern Marianas. The administration will propose legislation establishing a territorial
lending facility to promote economic development for these areas.
Budget authority of $88 million in 1984 is requested for operations and construction in the Trust Territory of the Pacific Islands. The United States seeks to promote local self-government
through the termination of the trusteeship (begun shortly after
World War II) upon final agreement on a compact of free association with the governments of Palau, the Federated States of Micronesia, and the Marshall Islands.
In addition to these programs funded by the Department of the
Interior, the territories and the Trust Territory receive grants and
payments from many other Federal agencies for programs classified in other functions.
Indian affairs.—Funding for American Indians in this function
includes miscellaneous trust fund payments to tribes and program
support for the Navajo and Hopi Indian Relocation Commission.
Additional assistance to Indian tribes is classified in a number of
functions—health; natural resources and environment; community
and regional development; and education, training, employment,
and social services.
Credit programs.—This function contains two credit programs
financed as direct loans by the Federal Financing Bank (FFB).
These are General Services Administration loans originated for
lease-purchase agreements on some Federal buildings and loans to
the territories. The accompanying table shows the level of operation of these two programs. No new activity is proposed for credit
programs in this function for 1984.
5-148
THE BUDGET FOR FISCAL YEAR 1984
CREDIT PROGRAMS—GENERAL GOVERNMENT
(In millions of dollars)
Actual
1982
Direct loans:
Loans to U.S. territories (loans made by FFB):
Net outlays
Outstandings
Federal buildings fund (loans made by FFB):
New obligations l
Net outlays
Outstandings
Total, direct loans:
New obligations.
Net outlays
Outstandings
Guaranteed loans:
Federal building fund:
Net change
Outstandings
Total credit budget (new obligations and new
commitments)
1984
1983
1985
1986
-18
66
*
*
*
65
65
64
-1
64
12
8
522
-9
513
-10
504
-10
493
-11
48
-9
579
-10
569
-11
558
-12
546
-19
655
-20
635
-22
613
-21
592
12
-11
588
-35
674
L_
12
* $500 thousand or less.
•These are commitments made by the agency to guarantee loans that the FFB will disburse. In effect, they are commitments for off-budget
direct loans, and are counted as such in the credit budget. Policy responsibility for these loans rests with the guaranteeing agency.
Tax expenditures.—In addition to direct Federal funds for general government, the tax code permits individuals to claim a 50% tax
credit on political contributions of up to $100 ($200 for joint returns). The tax expenditure estimate for this provision is $295
million in 1984.
GENERAL PURPOSE FISCAL ASSISTANCE
5-149
GENERAL PURPOSE FISCAL ASSISTANCE
National Needs Statement
Federal funds for general purpose fiscal assistance provide
State and local governments with Federal assistance that has
few or no restrictions.
General purpose fiscal assistance provides financial aid to State
and local governments without major restrictions or matching requirements. This assistance can generally be used for State or local
services, construction, debt retirement, and other purposes of general government. Programs in this category include general revenue sharing, payments and loans to the District of Columbia,
Forest Service receipts paid to the States, payments in lieu of
taxes, and payments to territories and Puerto Rico.
Outlays for this function are estimated to be $7.0 billion in 1984,
compared to $6.4 billion in 1983.
General revenue sharing.—The purpose of the general revenue
sharing program is to provide local governments with Federal
funds that have few restrictions on their use. Outlays for the
program, which the administration proposes to renew in 1983, are
proposed to remain at $4.6 billion in both 1983 and 1984. Under the
administration's federalism initiative, general revenue sharing may
be combined with the entitlement portion of the community development block grant program into one grant to local governments
beginning in 1984.
General revenue sharing provides funds to approximately 39,000
local jurisdictions. The funds are first divided among States on the
basis of total population, urban population, personal and per capita
income, income tax collections, and general tax effort. Local governments' share of the allocation are in turn based primarily on
population, per capita income, and tax effort. This formula helps
target assistance to governments with the greatest needs.
5-150
THE BUDGET FOR FISCAL YEAR 1984
NATIONAL NEED: FISCAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS
(Functional code 850; in millions of dollars)
Major missions and programs
1982
actual
1984
estimate
1983
estimate
1985
estimate
1986
estimate
BUDGET AUTHORITY
General revenue sharing:
General revenue sharing payments
Administration
Subtotal, general revenue sharing
Other general purpose fiscal assistance:
Payments and loans to the District of Columbia....
New York City loan guarantees (administrative
expenses)
Other payments:
Payments to States from Forest Service receipts
Payments to States from receipts under the
Mineral Leasing Act
Payments to States and counties from Federal land management activities
Payments in-lieu-of taxes
Payments to territories and Puerto Rico
Other
4,567
6
4,567
7
4,567
8
4,567
8
4,567
8
4,573
4,574
4,574
4,575
4,575
449
494
544
428
428
145
269
340
375
995
877
1,053
1
243
654
96
368
7
616
96
399
6
73
96
410
6
81
96
422
7
88
96
433
7
Subtotal, other general purpose fiscal assistance
1,819
1,756
2,394
2,250
2,480
Total, budget authority
6,392
6,330
6,969
6,825
7,055
4,569
6
4,567
7
4,567
7
4,567
8
4,567
8
4,575
4,573
4,574
4,574
4,574
439
543
544
428
428
*
*
243
145
269
340
375
995
877
1,053
OUTLAYS
General revenue sharing:
General revenue sharing payments
Administration
Subtotal, general revenue sharing
Other general purpose fiscal assistance:
Payments and loans to the District of Columbia....
New York City loan guarantees (administrative
expenses)
Other payments:
Payments to States from Forest Service receipts
Payments to States from receipts under the
Mineral Leasing Act
Payments to States and counties from Federal land management activities
Payments in-lieu-of taxes
Payments to territories and Puerto Rico
Other
653
96
381
6
615
96
402
7
73
96
410
6
81
96
422
6
88
96
433
7
Subtotal, other general purpose fiscal assistance
1,818
1,809
2,394
2,250
2,480
Total, outlays
6,393
6,382
6,968
6,824
7,054
*$500 thousand or less.
Other general purpose fiscal assistance.—Several other programs
provide funds with minimal restrictions to States and localities.
GENERAL PURPOSE FISCAL ASSISTANCE
5-151
Outlays for these programs are estimated to be $1.8 billion in 1983
and $2.4 billion in 1984.
Payments and loans to the District of Columbia.—The District of
Columbia's operating budget is financed in part by annual payments from the Federal Government in recognition of the costs to
the local government of the Federal presence. The administration
requests $544 million in budget authority for the District of Columbia in 1984, net of loan repayments by the District. An estimated
$386 million is for the Federal payment. Also included in the
request is $52 million for the annual Federal contribution to the
retirement funds for the District's police officers, firefighters,
teachers, and judges as required under the pension reform legislation enacted in 1979.
In anticipation of the District of Columbia's entry into the private capital market, the 1984 estimates assume that the City will
borrow in the private market for short-term, cash management
purposes rather than borrow interest-free from the Treasury. For
long-term borrowing, the 1984 budget requests, for transitional purposes only, $115 million for Federal loans to fund capital projects
in the District. It is expected that the District will make significant
progress in its ability to finance long-term borrowing in the tax
exempt private market. The administration proposes that longterm loans from the Federal Government end after 1984.
New York City loan guarantees.—Under the New York City Loan
Guarantee Act of 1978, the Secretary of the Treasury was authorized to guarantee up to $1.7 billion of New York City obligations. A
total of $1.7 billion was guaranteed under this program, which
ended June 30, 1982.
Other payments.—Some jurisdictions receive payments from the
Federal Government based on a percentage of receipts generated
from the sale of timber, mineral leases, grazing permits, and other
activities on Federal property.
Payments to States from Forest Service receipts will return an
estimated $145 million in 1983, and $269 million in 1984, to States
for distribution to counties in which National forests are located.
These funds are to be used for schools and roads.
Payments to States from receipts under Mineral Leasing Act were
included in payments to States and counties from Federal land
management activities in 1982 and 1983. The increase in payments
made to States out of Mineral Leasing Act receipts in 1984, is due
to the passage of the Federal Oil and Gas Royalty Management Act
of 1982. The Act requires that beginning in 1984, receipts will be
distributed to the States monthly, rather than semi-annually. This
change moves five additional months' payments into 1984 and also
5-152
THE BUDGET FOR FISCAL YEAR 1984
increases 1985-1988 payments. Outlays are estimated to be $1.0
billion in 1984.
Payments to States and counties from Federal land management
activities are estimated to be $615 million in 1983 and $73 million
in 1984 for shared revenues from oil and gas, coal, timber, and
grazing activities on Federal lands. The decrease is caused by the
transfer of the responsibility for collecting and distributing mineral
leasing receipts within the Department of the Interior, from the
Bureau of Land Management to the Minerals Management Service
shown in the previous category.
Payments in lieu of taxes provide fees to local governments for
some Federal lands located within their jurisdictions. Outlays are
estimated to be $96 million for 1984.
Payments to territories and Puerto Rico are made because the
Federal Government returns certain taxes to the territories and
Puerto Rico. These payments comprise (1) annual advance payments of certain income tax withholding and excise tax collections
involving Guam and the Virgin Islands, and (2) excise tax withholding for Puerto Rico. Outlays are estimated at $402 million in
1983 and $410 million in 1984.
Credit programs.—The major credit programs in this function are
direct loans to the District of Columbia and short-term advances to
the District's general fund. Expected levels of new activity, as
shown in the table below, is estimated to be $115 million in 1984,
$180 million below the 1983 level.
CREDIT PROGRAMS—GENERAL PURPOSE FISCAL ASSISTANCE
(In millions of dollars)
Estimate
Actual
1982
1983
1984
1985
1986
Direct loans:
Loans to the District of Columbia:
New obligations
Net outlays
Outstandings
285
117
1,684
295
116
1,799
115
84
1,883
34
1,849
-36
1,813
Guaranteed loans:
Guarantees of New York City loans:
New commitments
Net change
Outstandings
600
507
1,444
-156
1,288
154
1,134
-140
994
133
861
885
295
115
Total credit budget (new obligations and new
commitments)
Tax expenditures.—Interest on State and local government debt
is excluded from the taxable income of both businesses (mainly
commercial banks and casualty insurance companies) and individ-
GENERAL PURPOSE FISCAL ASSISTANCE
5-153
uals. As a result, States and local governments can sell their debt
at lower interest rates than would be possible if such interest were
taxable. Only the effect of excluding interest on general purpose
obligations and revenue bonds for public purposes such as toll
roads is included in this function. The tax expenditure estimate for
the exclusion of interest on general purpose State and local debt is
$9.4 billion in 1984.
A tax credit for certain U.S. corporations doing business in U.S.
possessions results in an estimated tax expenditure of $1.8 billion
in 1984.
Itemized deductions for nonbusiness State and local taxes gives
indirect assistance to these governments of $21.8 billion in 1984.
This tax expenditure is primarily for the deductibility of State and
local income and sales taxes. The deductibility of property taxes on
owner-occupied homes is classified in the commerce and housing
credit function. Total tax expenditures for general purpose fiscal
assistance are estimated to be $33.3 billion in 1984.
Related programs.—In addition to general purpose fiscal assistance, the Federal Government provides States and localities with
assistance through a variety of Federal grant-in-aid programs.
These programs, which range from relatively narrow categorical
programs to broader grant programs, are more restrictive than
general purpose fiscal assistance, and are designed to meet other
national needs and to serve other major missions. Therefore, they
are not included as general purpose fiscal assistance, although they
provide, when taken together, a large source—22% in 1982—of
total State and local expenditures. Total grant-in-aid outlays to
States and localities are estimated to increase from $93.5 billion in
1983 to $95.9 billion in 1984.
Grants are discussed in more detail in Special Analysis H, "Federal Aid to State and Local Governments."
5-154
THE BUDGET FOR FISCAL YEAR 1984
NET INTEREST
Interest is the cost of borrowing or the income from lending
money. This function includes both interest paid by the Federal
Government and, as an offset, interest received. Interest received
by trust funds from the Treasury, which in previous budgets was
included in undistributed offsetting receipts, is included as an
offset to outlays in this function this year.
Net interest outlays are estimated to rise from $88.9 billion in
1983 to $103.2 billion in 1984, or from 11.0% to 12.2% of total
budget outlays. In comparison, net interest outlays averaged 7.5%
of total budget outlays during the 1970's.
Interest on the public debt—This subfunction includes all interest paid on the public debt. The public debt consists of Treasury
securities sold to the public and to trust funds, revolving funds, and
deposit funds within the Federal Government. Outlays for interest
on the public debt are estimated to be $144.5 billion in 1984.
Estimates of interest on the public debt are highly sensitive to
assumptions about interest rates and the amount of public debt
outstanding. It is assumed that the 91-day bill rate will decline
steadily from an average of 10.8% in calendar year 1982, to 7.9% in
1984, and to 6.8% by 1986.
Despite the estimated decline in interest rates, interest on the
public debt is estimated to increase by $10.9 billion in 1983 and an
additional $16.4 billion in 1984. These increases are because of
higher debt outstanding due to higher Treasury borrowing required
to finance the Federal deficit.
Interest received by trust funds.—Most trust fund balances are
required by law to be invested in Federal securities. The interest
outlays on this debt are included in interest on the public debt.
Interest earned by the trust funds on the Federal securities they
hold is deducted in this subfunction so that the budget totals
include only net transactions with the public, not payments between Government accounts. These interest earnings are estimated
to be $16.3 billion in 1983 and $16.9 billion in 1984.
5-155
NET INTEREST
NET INTEREST
(Functional code 900; in millions of dollars)
Programs
BUDGET AUTHORITY
Interest on the public debt
Interest received by trust funds:
Existing law
Proposed legislation
Subtotal, interest received by trust funds
Other interest:
Interest on refunds of tax collections
Interest on loans to the Federal Financing Bank
Other:
Existing law
Proposed legislation
Subtotal, other interest
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
117,190
128,063
144,500
164,700
179,400
-16,067 -15,752 -15,992 -18,269 -21,023
-597
- 8 7 0 -4,763 -7,045
^-16,067 -16,349 -16,862 1-23,032 -28,068
1,789
1,904
1,586
1,285
1,443
-12,235 -14,129 -15,141 -16,958 -17,753
- 5 , 9 8 1 -10,565 -11,031 -12,265 -13,208
11
128
480
877
-16,427 -22,779 -24,458 -27,458
28,641
Total, budget authority
84,697
88,935
103,180
114,210
122,692
OUTLAYS
Interest on the public debt
117,190
128,063
144,500
164,700
179,400
Interest received by trust funds:
Existing law
Proposed legislation
,
Subtotal, interest received by trust funds
Other interest:
Interest on refunds of tax collections
Interest on loans to the Federal Financing Bank
Other:
Existing law
Proposed legislation
Subtotal, other interest
Total, outlays
-16,067 -15,752 -15,992 -18,269 -21,023
-597
- 8 7 0 -4,763 -7,045
-16,067 -16,349 -16,862 -23,032 -28,068
1,904
1,586
1,285
1,789
1,443
-12,235 -14,129 -15,141 -16,958 -17,753
- 5 , 9 8 1 -10,564 -11,031 -12,265 -13,208
877
11
128
480
-16,427 -22,778
24,458 -27,458
28,641
84,697
88,936
103,180
114,210
122,692
84,697
15,186
88,936
13,406
103,180
12,819
114,210
13,326
122,692
13,573
69,511
75,530
90,361
100,884
109,119
ADDENDUM
Net interest function
Deposits of earnings by the Federal Reserve System 1
Net budgetary effect 2
'Shown as budget receipts.
2
Net effect on the budget deficit. See text for discussion.
More than half of these interest earnings is received by the civil
service retirement and disability fund, and about one-fourth is
received by social security and medicare. Several of the proposed
legislation items discussed in the other functions, such as proposals
for the medicare and social security trust funds, change trust fund
balances invested in public debt and thereby affect interest earnings. The total effect of these proposals is to increase interest
received by trust funds by $0.9 billion in 1984 from the levels that
would otherwise exist.
5-156
THE BUDGET FOR FISCAL YEAR 1984
Other interest—This subfunction includes interest payments on
tax refunds and, as an offset, interest collections from Federal
agencies and the public.
Interest on refunds of tax collections.—Interest payments by the
Treasury on tax refunds are estimated to be $1.9 billion in 1983
and $1.6 billion in 1984. Under current law, the rate paid on
refunds of tax collections is set at the prime rate. As projected
interest rates decline for later years, projected outlays also decline.
Interest on loans to the Federal Financing Bank (FFB).—The off-
budget Federal Financing Bank is the major source of funds for
many Government programs. The FFB borrows directly from the
Treasury and uses these funds to purchase agency debt and financial assets from various Government programs and to make direct
loans to the public at the request of different agencies. It then pays
interest to the Treasury on its borrowings. Interest payments from
the FFB to the Treasury are estimated to be $14.1 billion in 1983
and $15.1 billion in 1984.
Other.—Offsetting interest collections other than from the FFB
are estimated to be $10.6 billion in 1983 and $10.9 billion in 1984.
These come from two principal sources: interest charged by Treasury to Federal agency revolving funds, which is by far the largest
source, and interest collected from the public by funds other than
revolving funds. Revolving funds borrow from the Treasury primarily to finance direct loans to the public, and then pay interest to
the Treasury on their borrowings. Other interest collections are
received from loans made to the public by non-revolving funds and
interest paid by banks on Federal tax collections deposited in those
banks.
Net budgetary effect—The Federal Reserve System owns Government securities for the purpose of carrying out monetary policy.
Most of the interest it receives on these securities is paid to the
Treasury as deposits of earnings, which are classified as budget
receipts. As shown in the addendum to the preceding table, these
deposits are projected to be $13.4 billion in 1983 and $12.8 billion in
1984. Deducting these receipts from the function total shows the
net effect on the budget deficit, which is $75.5 billion in 1983 and
$90.4 billion in 1984.
Tax expenditures.—A tax expenditure arises from the optional
deferral of interest income on U.S. savings bonds. Interest is normally taxed each year as it is earned, but the holder of savings
bonds may defer paying tax until the bond is redeemed. The tax
expenditure estimate for this provision is $500 million in 1984.
5-157
ALLOWANCES
ALLOWANCES
The budget includes allowances to cover certain forms of budgetary transactions that are expected to occur, but that are not reflected in the program details shown in the preceding functions.
When these transactions actually take place, they are reported as
outlays or receipts for the appropriate agencies and functions
rather than as allowances. For this reason, allowances for completed years are always zero.
The allowances included in the current budget fall into three
groupings—civilian agency pay raises; increased employing agency
payments for employee retirement; and allowances for contingencies.
ALLOWANCES
(Functional code 920; in millions of dollars)
1982
actual
Program
1983
estimate
1984
estimate
1985
estimate
1986
estimate
BUDGET AUTHORITY
Civilian agency pay raises
Increased employing agency payments for employee
retirement* Proposed legislation
Allowances for contingencies:
Relatively uncontrollable programs
Other requirements
Total, budget authority
1,881
3,894
949
1,898
1898
949
3,779
5,792
1,806
3,814
949
1,898
1,898
949
3,704
5,712
OUTLAYS
Civilian agency pay raises
Increased employing agency payments for employee
retirement: Proposed legislation
Allowances for contingencies:
Relatively uncontrollable programs
Other requirements
Total, outlays
Civilian agency pay raises.—This allowance covers the costs of
future civilian agency pay raises. In addition to this allowance, two
pay raise allowances are included in the national defense function
and an allowance for Coast Guard military pay is included in the
transportation function. The undistributed pay allowance included
in this section is for all other employees of civilian agencies.
Because of the need for budget austerity, this budget anticipates
that there will not be an October 1983 pay increase for Federal
civilian employees. It does, however, anticipate that in October
1984 and annually thereafter, there will be civilian pay increases
that match the average of those granted to non-Federal employees
during the previous year. The final decision on the amount of the
fiscal year 1984 pay increase will be made in the late summer, as
380-000
0 - 8 3 - 1 8
: QL 3
5-158
THE BUDGET FOR FISCAL YEAR 1984
the law provides, after Presidential review of the recommendations
of the President's Pay Agent, the Federal Employees Pay Council,
and the Advisory Committee on Federal Pay, and after a review of
the economic conditions prevailing at that time.
Increased employing agency payments for employee retirement—
The administration is proposing to move toward civilian retirement
systems whose costs are shared equally by employee and employer.
To achieve this objective, legislation is being proposed to increase
the payments contributed by both Federal employees and employing agencies to these funds from the current 7% of payroll to 9%
in 1984 and 11% in 1985 and beyond. This allowance covers the full
amount of the increased contribution by employing agencies. Upon
enactment of the legislation, the allowance will be distributed to the
agency budgets. The increased contribution by employees is
described in the income security function.
Allowances for contingencies.—The Congressional Budget Act of
1974 requires that the budget include two allowances—one for
unanticipated spending or savings in relatively uncontrollable programs (such as social security) that would occur under current law
and without any new appropriations; and the other for additional
spending or reductions in discretionary programs, which would
require appropriations for the coming year.
The estimates for each of these contingency allowances are zero
in this budget. The contingency allowance for relatively uncontrollable programs is estimated to be zero because the chances of these
outlays being lower than the estimates are as great as their
chances of being higher. The contingency allowance for other requirements is also assumed to net to zero, with probable increases
being offset by anticipated decreases.
5-159
UNDISTRIBUTED OFFSETTING RECEIPTS
UNDISTRIBUTED OFFSETTING RECEIPTS
Offsetting receipts are generally deducted from outlays and
budget authority at the function, subfunction, and agency levels. In
three instances, however, such payments are deducted from the
budget totals as undistributed offsetting receipts. These are for the
employer share of employee retirement, rents and royalties on the
Outer Continental Shelf, and Federal surplus property disposition.
Interest received by trust funds, which was previously displayed
in this function, is now included in the net interest function.
Undistributed offsetting receipts are estimated to be $20.4 billion
in 1983 and $22.8 billion in 1984. Details of all offsetting receipts
are shown in table 13 in Part 9 of this Budget.
UNDISTRIBUTED OFFSETTING RECEIPTS
(Functional code 950; in millions of dollars)
Offsetting Receipts
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
-7,020
-8,214
-8,648
-1,205
-9,011
-2,493
-9,395
-2,640
-7,020
-8,214
-9,853 -11,504 -12,035
BUDGET AUTHORITY AND OUTLAYS
Employer share, employee retirement:
Existing law
Proposed legislation
Subtotal, employer share, employee retirement
Rents and royalties on the Outer Continental Shelf
Federal surplus property disposition:
Proposed legislation
Total
- 6 , 2 5 0 -11,793 - 1 1 , 8 9 5 - 1 2 , 2 0 0 - 1 3 , 4 0 0
-408
-1,003
-925
-981
- 1 3 , 2 7 0 - 2 0 , 4 1 4 - 2 2 , 7 5 0 - 2 4 , 6 2 8 -26,416
Employer share, employee retirement—The payments by Federal
agencies to employee retirement funds are counted as outlays of
the agencies and as receipts of the respective retirement funds. A
deduction equal to the total amount of these payments is included
as undistributed offsetting receipts in order to measure properly
the transactions of the Government with the public. About twothirds of these payments are to the civil service retirement fund.
Most of the remainder is paid to the social security trust funds,
including medicare.
Effective on January 1, 1983, all Federal employees were covered
under medicare. This requires the collection of employee contributions (governmental receipts) and matching employer contributions
(offsetting collections) at the same rates paid by all other participants. Collections for this purpose are estimated to be $1.1 billion
in 1983 and $1.3 billion in 1984.
The amounts for proposed legislation in this subfunction contain
two elements: the offsetting collections for the increased employing
agency payments for employee retirement, discussed in the allow-
5-160
THE BUDGET FOR FISCAL YEAR 1984
ances section, and similar collections from the off-budget Postal
Service, discussed in the income security function. Total offsetting
collections for the employer share of employee retirement are estimated to be $8.2 billion in 1983 and $9.9 billion in 1984.
Rents and royalties on the Outer Continental Shelf (OCS).— Payments to the Government for rents and royalties on the Outer
Continental Shelf are large, and their inclusion in a particular
function would distort the display of Federal program budget authority and outlays. These estimates include cash bonuses received
from the leasing of OCS lands that have the promise of containing
oil and gas; annual rents on existing leases, based on a percentage
share of profits; and royalties, based on a percentage of the value
of production. OCS collections from certain lands immediately adjoining State lands or from disputed lands are recorded in deposit
funds rather than as offsetting receipts until the title to these
amounts is settled. On September 30, 1982, such deposit funds held
$4.8 billion.
The 5-year OCS leasing program now in effect significantly accelerates leasing by offering larger areas and by streamlining leasing
procedures. The current estimates of $11.8 billion in 1983 and $11.9
billion in 1984 assume that 10 OCS sales will be conducted in 1983
and 7 sales in 1984. No final decision will be made on any of these
sales until environmental studies and other requirements under
the National Environmental Policy Act have been completed.
Federal surplus property disposition.—The General Services Administration (GSA) manages 36 million acres of property, much of
which is developed and is owned to carry out Federal programs.
The Departments of the Interior and Agriculture manage about
665 million acres of public lands, much of which is undeveloped
and some of which has been set aside to protect its unique characteristics and national value. These protected areas include national
parks, monuments, historic sites, refuges, and wilderness areas.
The administration has established a Cabinet level Property
Review Board to review Federal asset management policies and
practices and to identify unneeded Federal properties for disposal.
These surplus assets include those that are in excess of the needs
of the agencies holding them, properties not fully or efficiently
utilized, public lands too small or widely scattered to be efficiently
managed, and public lands hindering local growth and economic
development. Property integral to agency operations or of unique
national value will not be sold.
Offsetting collections from the disposition of surplus property are
estimated to be $0.4 billion in 1983 and $1.0 billion in 1984. The
administration is proposing legislation to earmark the receipts
from these sales into a special fund for the purpose of retiring
public debt.
PART 6
PERSPECTIVES ON
THE BUDGET
6-1
PERSPECTIVES ON THE BUDGET
This part of the budget explains several topics that help to
interpret the budget totals and to place the budget in perspective:
• the relationship of budget authority to outlays;
• fiscal activities outside the Federal budget:
—outlays of off-budget Federal entities,
—Government-sponsored enterprises,
—loan guarantees, and
—tax expenditures;
• Federal budgeting for capital expenditures:
—the basic role of the budget, and
—capital budgeting issues;
• Federal debt and the relationship of budget funds to changes
in Federal debt;
• the difference between this Administration's initial 1982
budget estimate and the actual outcome for:
—total outlays,
—outlays of relatively uncontrollable programs, and
—total receipts; and
• the allocation of windfall profit tax receipts.
RELATIONSHIP OF BUDGET AUTHORITY TO OUTLAYS
The Congress must usually provide budget authority, generally
in the form of appropriations, before Federal agencies can obligate
the Government to make outlays. For 1984, $900.1 billion of new
budget authority is proposed for those Federal agencies included in
the budget. In addition, $27.1 billion in new budget authority is
proposed for those Federal entities that are excluded from the
budget.*
Of the total new budget authority proposed for budget agencies
in 1984, $528.5 billion will require congressional action. New
budget authority of $519.2 billion will be available through permanent appropriations under existing law. This consists mainly of
trust fund receipts, which in most trust fund programs are automatically appropriated under existing law, and interest on the
public debt, for which budget authority is automatically provided
under a permanent appropriation enacted in 1847. This gross new
budget authority is offset by $147.6 billion of deductions for offset1
Budget authority is discussed further in Part 7 of this volume.
6-2
6-3
PERSPECTIVES ON THE BUDGET
BUDGET AUTHORITY
(In billions of dollars)
1982
actual
Description
Available through current action by the
Congress:
Enacted and pending appropriations
Proposed in this budget:
Appropriations
Supplemental requests
Rescission proposals
To be requested separately:
Upon enactment of proposed legislation..
Allowances:
Civilian agencies*
Department
of
DefenseMilitary 2
Other allowances3
Subtotal, available through current action by the Congress
Available without current action by the
Congress (permanent appropriations):
Trust funds (existing law)
Interest on the public debt
Other
Subtotal, available without
action by the Congress
1983
estimate
457.1
1984
estimate
1985
estimate
1986
estimate
495.6
12.9
-1.5
513.4
*
565.5
606.6
14.2
14.7
11.3
1.9
4.0
0.9
5.9
1.9
9.9
1.9
41.1
1.0
457.1
549.1
528.5
589.9
633.6
285.2
117.4
33.6
309.2
128.2
23.9
346.1
144.5
28.5
377.6
164.7
25.5
414.3
179.4
25.3
436.2
461.3
519.2
567.8
619.0
-113.4
-163.0
147.6
-160.2
-173.0
779.9
847.4
900.1
997.4
1,079.6
3.7
2.1
0.6
1.4
1.5
30.2
27.6
26.5
22.1
18.7
34.0
29.7
27.1
23.5
20.2
813.9
877.1
927.2
1,020.9
1,099.7
current
Deductions for offsetting receipts
Total, budget authority
ADDENDUM
Budget authority for off-budget Federal
entities:
Available through current action by the
Congress
Available without current action by the
Congress
Total, off-budget Federal entities
Total, budget authority including offbudget Federal entities
*$50 million or less.
1
Includes allowances for civilian agency pay raises, Coast Guard military pay raises, and contingencies.
2
Includes allowances for civilian and military pay raises for Department of Defense.
3
Allowance for increased employing agency payments for employee retirement.
ting receipts, which consist of transactions within the Government
and proprietary receipts from the public. Most of the budget authority proposed for off-budget Federal entities will be available
under existing law.
Not all of the new budget authority for 1984 will be obligated or
spent in that year: 2
2
This subject is also discussed in a separate OMB report, "Balances of Budget Authority," which can be
purchased from the National Technical Information Service shortly after the budget is transmitted.
6-4
THE BUDGET FOR FISCAL YEAR 1984
• Budget authority for most trust funds comes from the authority of these funds to spend their receipts from special taxes
and contributions and from Federal fund payments. Any balances arising from these receipts remain available to these
trust funds indefinitely in order to finance benefits and other
purposes specified by law.
• Budget authority for most major construction and procurement projects covers the entire cost estimated when the projects are initiated, even though costs will be incurred and
outlays made over a period extending beyond the year for
which the budget authority is enacted. An exception to this
policy is made for water resource programs.
• Government enterprises are occasionally given budget authority for standby reserves that will be used only in the event of
special circumstances.
• Budget authority for the subsidized housing programs is equal
to the Government's estimated obligation to pay subsidies
under contracts, which may extend for periods of up to 40
years.
• Budget authority for most other long-term contracts also
covers the estimated maximum obligation of the Government.
For example, budget authority for many direct loan programs
provides financing for a number of years; budget authority for
many insurance and loan guarantee programs consists of
amounts to be used only in the event of defaults or other
claims made upon the programs.
As a result of these factors, a substantial amount of budget
authority carries over from one year to the next. Most of this is
earmarked for specific uses and is not available for new programs.
A small part may never be obligated or spent, because it is primarily for contingencies that do not occur or reserves that never have
to be used.
As shown in the chart on the next page, $123.7 billion of the
budget outlays in 1984, 15% of the total, will be made from budget
authority enacted in previous years. At the same time, $175.3
billion of the new budget authority proposed for 1984, which is
19% of the total amount proposed, will not lead to budget outlays
until future years. Thus, the total budget authority for a particular
year is not useful for the analysis of that year's outlays, since it
combines various types of budget authority that have different
short-term and long-term implications for budget obligations and
outlays. The relationship between budget authority, obligations,
and outlays is discussed further in Part 7 of the Budget and displayed in table 7 of Part 9.
PERSPECTIVES ON THE BUDGET
6-5
New Authority
Recommended
for 1984
900.1
Unspent Authority
Enacted in
Prior Years
881.3
To be spent in
Future Years
746.3
Unspent Authority
for Outlays in
Future Years
921.6
FISCAL ACTIVITIES OUTSIDE THE FEDERAL BUDGET
The budget does not include a number of fiscal activities of the
Federal Government that result in spending similar to budget outlays. These activities, nevertheless, channel economic resources
toward particular uses in ways that are analogous to the effects of
budget spending.
The outlays of off-budget Federal entities are a major exclusion
from the budget. They are discussed in some detail below. This is
followed by a description of the Government-sponsored enterprises,
which are outside the budget because of their private ownership.
Loan guarantees, which are discussed next, allocate economic resources toward particular uses by providing credit to borrowers at
more favorable terms than would otherwise be available in the
private market. Taxation and tax expenditures, which also have
significant allocative effects on the economy, are discussed subsequently.
The regulation of economic activity changes resource allocation
in different ways. Some types of regulation have economic effects
that in certain respects are similar to budget outlays by requiring
the private sector to make expenditures for specified purposes such
as safety and pollution control. The effects of this spending are
6-6
THE BUDGET FOR FISCAL YEAR 1984
very important, but many of them have not been quantified satisfactorily and therefore cannot be clearly related to the budget.
Outlays of off-budget Federal entities.—Off-budget Federal entities are federally owned and controlled, but their transactions have
been excluded from the budget totals under provisions of law.3' 4
Therefore, their spending is not reflected in either budget outlays
or the budget surplus or deficit; appropriation requests for their
programs are not included in the totals of budget authority for the
budget; and their outlays are not subject to the targets set by the
congressional budget resolutions. As shown in the table on page 630, the outlays of the off-budget Federal entities are added to the
budget deficit to derive the total Government deficit, which for the
most part has to be financed by borrowing from the public. When
off-budget outlays are financed by Treasury borrowing, as is usual,
the additional debt is subject to the statutory debt limitation; when
financed by the entities' own borrowing, it is not. In either case the
additional debt is part of the gross Federal debt.
Since the 1969 budget, the Federal Government has used the
unified budget concept as the foundation for its budgetary analysis
and presentation. This concept measures the Government's cash
payments to and from the public. The first departure from the
unified budget concept occurred in August 1971, when the ExportImport Bank was excluded by statute from the budget. Further
departures followed in the next few years under various statutes.
The Postal Service fund, the Rural Telephone Bank, the lending
transactions that became the Rural Electrification and Telephone
revolving fund, and the Housing for the Elderly or Handicapped
fund were removed from the budget. The Federal Financing Bank,
the U.S. Railway Association, and the Pension Benefit Guaranty
Corporation were established off-budget. The Exchange Stabilization Fund had always been outside the unified budget, although it
was initially classified as a deposit fund instead of an off-budget
Federal entity.
In the past few years the trend toward steadily increasing the
number of off-budget Federal entities has been changed. The
Export-Import Bank, the Housing for the Elderly or Handicapped
fund, and the Pension Benefit Guaranty Corporation were put onbudget by statute in different years. The operations of the Exchange Stabilization Fund were put on-budget in a series of legislative and administrative actions. Most of the transactions of the
U.S. Railway Association were brought into the budget by legislation that required its purchases of Conrail securities to be included
3
Financial statements for off-budget entities are published in the Appendix, Budget of the United States
Government, Fiscal Year 1981 See Part IV, "Off-Budget Federal Entities."
"The Board of Governors of the Federal Reserve System is a Federal organization. It is excluded from the
budget and from this discussion.
PERSPECTIVES ON THE BUDGET
6-7
in the budget. Whenever a former off-budget entity was put onbudget, the budget outlays and deficits of previous years were
revised to include the entity to the extent feasible so that the
historical series measuring budget transactions would be as accurate and consistent as possible.
Two new off-budget Federal entities, however, were established
to carry out energy programs. The Synthetic Fuels Corporation was
created outside of the budget in 1980, although all of its funding is
provided in the budget totals of the Treasury Department. The cost
of purchasing oil for the strategic petroleum reserve was put offbudget beginning in 1982. The costs of operations, maintenance,
construction, and administration, however, remain in the budget.
Despite the exclusion of the off-budget entities from the budget,
some of the outlays related to their operations are nonetheless
included in the budget totals. The budget totals include the funding
of the Synthetic Fuels Corporation, the operating costs and certain
other expenses of the strategic petroleum reserve, the Federal payment to the Postal Service fund, and the administrative expenses
of the Rural Electrification Administration lending programs and
the U.S. Railway Association. Moreover, while the budget authority
and outlays of off-budget Federal entities are excluded from the
budget totals, some of their activities are subject to Presidential
and congressional review. For example, the credit budget, discussed
in Part 7 of this volume, includes the direct loans and loan guarantees of off-budget entities as well as budget agencies; and the
outstanding debt and annual borrowing of the Postal Service are
limited by statute.
Even though the exclusion of off-budget Federal entities from the
budget results from provisions of law, the executive and the Congress have on several occasions expressed concern about this practice and have taken actions to control off-budget spending. This
Administration has been very concerned about the effects of offbudget direct loans in allocating credit toward particular uses and
about the necessity of financing these loans by additional Federal
borrowing from the public. It has used the credit budget process to
reduce off-budget direct loans from $20.9 billion in 1981 to an
estimated $10.1 billion in 1984 and still lower levels in later years.
Within Congress, the House Budget Committee held hearings on
off-budget entities in 1976 and subsequently recommended that
they all be included in the budget.5 The congressional budget resolutions for 1980 recommended that the congressional budget process should accurately relate the off-budget outlays to the budget.
Following this procedural recommendation, the budget resolutions
5
House of Representatives, Committee on the Budget, Off-Budget Activities of the Federal Government, Report
No. 94-1740 (1976); First Concurrent Resolution on the Budget—Fiscal Year 1978, Report No. 95-189 (1977), pp.
11-12 and 135; and First Concurrent Resolution on the Budget—Fiscal Year 1979, Report No. 95-1055 (1978), p.
23.
6-8
THE BUDGET FOR FISCAL YEAR 1984
for 1981 and 1982 recommended separate aggregate limits on obligations for new direct loans made by the off-budget entities and by
the budget agencies. The 1981, 1982, and 1983 resolutions all recommended aggregate limits on direct loan obligations and loan
guarantee commitments whether made on-budget or off-budget.
The off-budget Federal entities, except for the strategic petroleum reserve account and the Postal Service, incur their outlays in
order to carry out direct loan programs. These programs have the
same general characteristics as the direct loan programs in the
budget. The outlays of the off-budget loan programs are approximately equal to the difference between the new loans disbursed
and the repayments of principal. The difference is due to such
factors as administrative expenses and interest paid and received.
Like direct loans in the budget, the loans of the off-budget entities are designed to allocate economic resources toward particular
purposes. Part 5 of the Budget, "Meeting National Needs: the Federal Program by Function," shows the outlays of the off-budget
Federal entities by function and discusses some of their more significant activities.
OUTLAYS OF OFF-BUDGET FEDERAL ENTITIES
(In billions of dollars)
Off-budget Federal entity
Federal Financing Bank
Rural Electrification and Telephone revolving fund
Rural Telephone Bank
Strategic Petroleum Reserve account
Postal Service fund
U S Railway Association
Synthetic Fuels Corporation
Total
1982
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
14.1
*
14.3
10.2
9.1
8.0
.1
3.7
-.6
.1
1.8
.9
-.1
.1
1.9
1.9
*
.1
1.4
-.2
.1
1.4
-.1
17.3
17.0
14.0
10.5
9.4
*$50 million or less.
As the table above shows, the Federal Financing Bank (FFB)
accounts for most of the off-budget outlays and also for most of the
decline estimated in off-budget outlays from 1982 to 1986. Among
the other off-budget Federal entities, only the strategic petroleum
reserve account and, in some years, the Postal Service fund have
comparatively large outlays. The outlays of the Postal Service fund
and the Synthetic Fuels Corporation are calculated with offsets for
the payments they receive from accounts in the budget. These
offsets are estimated to be $0.4 billion and $0.1 billion, respectively,
in 1984. The payment to the Postal Service fund is for revenue
forgone from carrying certain mail at free or reduced rates; the
payment to the Synthetic Fuels Corporation is to provide its entire
funding.
PERSPECTIVES ON THE BUDGET
6-9
The outlays of the Federal Financing Bank do not come from
programs that the FFB operates itself. Rather, the FFB finances
other programs within the Government by purchasing their debt
securities, making direct loans on their behalf, or purchasing their
loan assets. FFB obtains the funds for these transactions by borrowing an equal amount from Treasury. The operation of the assisted programs remains with the agencies that FFB finances.
FFB outlays are generated by its direct loans and its purchases
of loan assets. Both types of transaction involve loan guarantees by
another agency. FFB makes direct loans to the public upon the
request of an agency, with the repayment of the loan to the FFB
being guaranteed by that agency. These direct loans are outlays
outside the budget.
FFB purchases loan assets from various agencies, also upon
agency request. Loan assets are loans that an agency has made to
the public and for which repayments are still owed. The agency
guarantees the loan assets sold to the FFB in order to ensure that
the FFB will be paid in the event of default. Loan asset sales are
offsets to the outlays of the agency that sells them. Therefore, if
the selling agency is in the budget, the budget outlays caused by its
direct loans are offset by the amount of its sales of loan assets.
When the FFB buys loan assets, it in effect converts direct loans
that have already been made by another agency into off-budget
direct loans of the FFB.
According to law, the category of loan assets also includes certificates of beneficial ownership issued by the Farmers Home Administration and the Rural Electrification and Telephone revolving
fund. These certificates are securities backed by loans that the
agency continues to hold and service, and they comprise almost all
of the loan assets bought by FFB. The President's Commission on
Budget Concepts recommended that the sale of such securities (also
known as participation certificates) be treated as borrowing, since
as a means of financing outlays there is no difference between an
agency selling securities labeled "certificates of beneficial ownership," the same agency selling securities labeled "debt," and the
Treasury selling securities labeled "debt."6 Under proposed legislation of this Administration, the certificates sold by the Rural Housing Insurance Fund—which is part of the Farmers Home Administration—will be treated as agency debt beginning in 1984. Upon
enactment of this legislation, outlays for previous years will be
revised retroactively to be consistent with this treatment and to
accord with budget concepts.
FFB purchases of agency debt securities do not increase FFB
outlays. An agency incurs outlays when it spends the proceeds of
6
See Report of the President's Commission on Budget Concepts (Washington: U.S. Government Printing Office,
1967), pp. 8, 47-48, and 54-55.
6-10
THE BUDGET FOR FISCAL YEAR 1984
borrowing from the FFB, so FFB outlays must exclude this borrowing transaction in order to prevent double counting. The remainder
of FFB outlays consists of the interest that it pays on its borrowings from Treasury, its administrative expenses, and its payment of
surplus income to the general fund, the sum of which is offset by
the interest that it receives on its holdings of loans and debt.
However, under current policy the net interest received (less administrative expenses) is paid in the same year to the general fund.
Therefore, this remainder is approximately zero, and FFB outlays
approximately equal direct loans to the public plus purchases of
loan assets from other agencies, less repayments.
In order to present the effects of the FFB's transactions for
different programs, the budget documents attribute the FFB outlays that are made on behalf of an agency to that agency itself.
The following table summarizes this attribution, showing the direct
loans to the public or purchases of loan assets, less repayments, for
selected agencies or programs. The attribution of FFB outlays by
function is shown as an addendum to the tables throughout Part 5,
and a complete listing is given in Part 8 in the section that displays the off-budget entities.
ATTRIBUTION OF FEDERAL FINANCING BANK OUTLAYS
(In millions of dollars)
Description
Outlays from loans, by agency or program:
Farmers Home Administration: certificates
of beneficial ownership
Rural Electrification and Telephone revolving fund:
Certificates of beneficial ownership
Direct loans to public
Foreign military sales credit
Education activities: Student Loan Marketing Association. .
Energy activities-. Alternative fuels production
Housing and Urban Development:
Section 108 loan guarantees
Low-rent public housing
Transportation: Railroad programs
National Aeronautics and Space Administration
Small Business Administration
Tennessee Valley Authority: Seven States
Energy Corporation
Other
Subtotal, outlays from loans
Interest, administrative expenses, and payment of surplus income
Total, FFB outlays
1982
actual
1984
estimate
1983
estimate
1985
estimate
1986
estimate
4,915
4,171
560
252
32
528
3,939
2,288
565
5,345
2,848
465
4,591
4,187
480
4,707
3,495
488
3,958
3,436
43
696
78
119
591
22
134
-37
13
-18
-27
13
-105
-29
-13
120
142
175
248
-140
280
-90
270
91
260
336
30
193
-39
181
-16
116
-23
86
-32
14,155
14,239
10,192
9,145
7,990
10,192
9,145
7,990
700
340
12
12
14,142
14,251
PERSPECTIVES ON THE BUDGET
6-11
As shown in this table, FFB finances a wide variety of programs.
Since its inception, over half of its outlays have been for the
purchase of certificates of beneficial ownership from the Farmers
Home Administration. This proportion was lower in 1982 and is
estimated to decline much further in the next few years, as FFB's
purchase of new certificates decreases and the repayment of old
certificates rises. Direct loans to the public guaranteed by the
Rural Electrification and Telephone revolving fund and the foreign
military sales credit program now account for the greater part of
FFB's outlays and are estimated to account for most of FFB's
outlays beginning in 1984. Total FFB outlays are estimated to
decrease substantially from 1982 to 1986 due to restraint on the
credit programs that FFB finances, less use of the FFB by some of
these programs, a rise in the repayment of past loans, and the
proposal that the securities of the Rural Housing Insurance Fund
be treated as agency debt.
Since the Farmers Home Administration is on-budget, FFB's purchase of its certificates of beneficial ownership reduces total budget
outlays as well as Farmers Home outlays. The total outlays of the
Federal Government are not affected, since the decrease in budget
outlays equals the increase in off-budget outlays. FFB's purchase of
certificates of beneficial ownership from the off-budget Rural Electrification and Telephone revolving fund reduces the outlays of this
fund to a very small amount, as shown in the preceding table on
the outlays of off-budget entities. The purchases by FFB reduce this
fund's off-budget outlays and augment the off-budget outlays of the
FFB by an equal amount.
The table on the next page compares the outlays of the offbudget Federal entities with budget outlays.7 The outlays of the
entities that are now off-budget were negligible in 1973 but grew
rapidly afterwards, especially due to the Federal Financing Bank.
The outlays of the off-budget Federal entities decreased from 3.2%
of budget outlays in 1981 to 2.4% in 1982 and are estimated to
decrease further to 1.7% in 1984 and 1.0% in 1986.
Government-sponsored enterprises.—Several
Government-spon-
sored enterprises have been established and chartered by the Federal Government to perform specialized credit functions. The earlier enterprises were all created with partial or full Government
ownership and with direct Government control. In time, however,
they were converted to private ownership and some new enterprises were created as privately owned institutions.
7
The historical data for budget outlays include Federal entities that are now off-budget for any period when
they were in the budget, and include Government-sponsored enterprises for periods when they had any
Government ownership. The outlays of former off-budget entities are included in the budget totals for all years
to the extent practicable.
6-12
THE BUDGET FOR FISCAL YEAR 1984
COMPARISON OF OUTLAYS FOR THE BUDGET, OFF-BUDGET FEDERAL ENTITIES, AND GOVERNMENTSPONSORED ENTERPRISES
(In billions of dollars)
Outlays
Federal Governmentx
Fiscal year
Budget
Off-budget
Federal entities
Total
Governmentsponsored
enterprises 2
1965
1966
1967
1968
1969
118.4
134.7
157.6
178.1
183.6
118.4
134.7
157.6
178.1
183.6
1.2
1.9
-2.9
1.7
4.3
1970
1971
1972
1973
1974
195.7
210.2
230.7
245.6
267.9
0.1
1.4
195.7
210.2
230.7
245.7
269.4
9.6
*
4.4
11.4
14.5
1975
1976
TQ
1977
1978
1979
324.2
364.5
94.2
400.5
448.4
491.0
8.1
7.3
1.8
8.7
10.4
12.5
332.3
371.8
96.0
490.2
458.7
503.5
7.0
4.6
2.3
9.7
24.5
25.9
1980
1981...
1982
1983 estimate
1984 estimate
576.7
657.2
728.4
805.2
848.5
14.2
21.0
17.3
17.0
14.0
590.9
678.2
745.7
822.2
862.5
25.3
33.4
42.4
55.4
55.5
1985 estimate
1986 estimate
918.5
989.6
10.5
9.4
929.0
999.0
(3)
. .
*$50 million or less.
•The 1972-80 data have been revised to include the Export-Import Bank, the Housing for the Elderly or Handicapped fund, and the Pension
Benefit Guaranty Corporation in the budget instead of with the off-budget Federal entities. The administrative expenses and interest collections of
the Exchange Stabilization Fund are included in the budget beginning in 1976, and the actual profits and losses realized from foreign exchange
transactions are included beginning in 1979. Earlier data for the ESF are not available on a comparable basis.
2
To prevent double counting, outlays of Government-sponsored enterprises exclude loans to other Government-sponsored enterprises and loans to
or from Federal agencies and off-budget Federal entities.
3
Not available.
The rule governing the budget treatment of these enterprises
was established in 1967 in accordance with a recommendation by
the President's Commission on Budget Concepts. The Commission
basically recommended that the budget exclude those Governmentsponsored enterprises that are entirely privately owned. However,
the Commission recommended that financial statements of their
operations be included in the budget documents, because the enterprises carry out federally designed programs and receive benefits
from their close association with the Government8' 9. These benefits differ from one enterprise to another and from one type of debt
8
Report of the President's Commission on Budget Concepts, pp. 29-30.
Financial statements for the Government-sponsored enterprises are published in the Appendix, Part VI,
"Government-Sponsored Enterprises." Their borrowing and lending are discussed in Special Analysis E, "Borrowing and Debt," and Special Analysis F, "Federal Credit Programs."
9
PERSPECTIVES ON THE BUDGET
6-13
security to another, but they generally include such advantages as
that: the debt securities can be held by federally regulated financial institutions in a number of cases where other private securities
or State and local securities are not eligible; the enterprises are
exempt from Federal income taxation; the interest on their debt
securities is exempt from State and local income taxation; and the
enterprises are perceived to have a special relationship with the
Federal Government. Because of these benefits, the Governmentsponsored enterprises can borrow at interest rates only slightly
higher than the interest rates paid by Treasury on Federal debt.
The Federal Land Banks and Federal Home Loan Banks had
both become entirely privately owned a number of years before the
unified budget was adopted and therefore have always been excluded. The Federal National Mortgage Association, the Banks for
Cooperatives, and the Federal Intermediate Credit Banks became
wholly privately owned by repaying their Federal equity capital
late in calendar year 1968 and were accordingly removed from the
budget for all later periods. The Federal Home Loan Mortgage
Corporation and the Student Loan Marketing Association were
later established with full private ownership. The Federal Home
Loan Mortgage Corporation is not privately operated, however,
because its board of directors consists entirely of members of the
Federal Home Loan Bank Board, who are Federal Government
officials appointed by the President.
The Government-sponsored enterprises were all created to carry
out loan programs, either lending their funds directly for specifically authorized purposes, or buying loans originated by the private
groups that they were established to assist. The loans of these
enterprises primarily support housing, but also support agriculture
and higher education. As shown in the previous table, their outlays
have grown considerably—from relatively small amounts in the
latter 1960's to over $20 billion in 1978, over $30 billion in 1981,
and $42.4 billion in 1982.
The operations of the Government-sponsored enterprises are not
subject to the normal Federal budget review process, and the economic assumptions on which their estimates are based are not
necessarily the same as the Administration's economic assumptions
shown in Part 2. These enterprises estimate that they will increase
their spending to $55.5 billion in 1984, which equals 6.4% of total
Federal outlays in that year. The following table shows the total
amounts of Government-sponsored loans outstanding and net loans
(i.e., the change in loans outstanding) during 1982-84, in billions of
dollars: 10
10
In order to prevent double counting in adding Government-sponsored loans to Federal direct loans and
guaranteed loans, this table excludes loans from one Government-sponsored enterprise to another, loans from
the Federal Government, and guaranteed loans acquired.
380-000 0 - 83 - 19 : QL 3
6-14
THE BUDGET FOR FISCAL YEAR 1984
actual
Loans outstanding, end of year
Net loans
225.6
43.4
1983 estimate
1984 estimate
281.1
55.5
337.3
56.2
Loan guarantees.—Government-guaranteed loans are loans for
which the Government guarantees the payment of the principal
and the interest in whole or in part. Loan guarantees are contingent liabilities of the Federal Government. They generally do not
result in budget outlays except in case of default.
Loan guarantees are designed to allocate economic resources to
particular uses by providing credit at more favorable terms than
would otherwise be available in the private market. If loan guarantee recipients would not have been sufficiently creditworthy to
borrow without Federal assistance, the guarantee reallocates credit
toward federally selected uses, increasing the total volume of credit
channeled into these uses. This leaves a smaller supply of credit to
be allocated to those potential borrowers who do not receive assistance, and increases the interest rate to these borrowers. However,
the guarantee does not always change the allocation of credit.
Some beneficiaries of loan guarantee programs would have been
PERSPECTIVES ON THE BUDGET
6-15
====• Held by Federal Financing Bank
Government-Sponsored
Enterprises
le Public
able to secure the funds privately, without Government support.
For example, guaranteed mortgage credit might be used to finance,
at a lower cost, a house that would have been purchased anyway,
although there is a marginal interest rate at which the house
would not be bought and, therefore, the loan would not be made. In
such a case, the guarantee does not alter the allocation of credit
resources, but does provide a subsidy which benefits the borrower
to a greater or lesser degree depending on market conditions.
Most of the guarantee programs operated by the Federal Government began in efforts to revive the economy during the depression
of the 1930^. The Reconstruction Finance Corporation, created in
1932, was the forerunner of the Export-Import Bank, the Small
Business Administration, and other credit programs. The Nation's
single largest credit program, the Federal Housing Administration's (FHA) home mortgage insurance program, was created in
1934 to stimulate housing construction.
During the 1950s and 1960s housing credit dominated Federal
credit activities. The home mortgage programs of the FHA and
Veterans Administration, which comprised most of these agencies'
guarantees, accounted for 81% of the total volume of new commitments for guaranteed loans in 1956. As the chart on the previous
page shows, the range of activities financed with Federal guarantees has widened since that time. Guarantees are now offered for
business, agriculture, energy, and education, though housing con
6-16
THE BUDGET FOR FISCAL YEAR 1984
tinues to dominate. For the 1984 budget, home mortgage programs
account for about 60% of all new guarantees. Assistance for public
housing accounts for about 15%, and aid to business accounts for
about 13%. The remaining 12% is primarily for the guaranteed
student loan program and guarantees for agriculture.
Guaranteed loans may be made to many types of borrowers:
individuals, businesses, State and local governments, and foreign
governments. The guarantees may be full or partial, and in some
programs, such as the guaranteed student loan program, they are
supplemented by explicit subsidies or other forms of assistance.
Most guaranteed loans are made by banks or other private institutional lenders, and may take the form of mortgages or bank loans.
Others are sold in securities markets. An increasing portion of
guaranteed loans is disbursed by the Federal Financing Bank
(FFB), which is described above on pages 6-8 to 6-11. Since the
FFB is an off-budget Federal entity, these disbursements are offbudget direct loans. An additional amount of guaranteed loans
originally made by private institutions is purchased and held by
privately owned, Government-sponsored enterprises, as the accompanying chart shows.
Because loan guarantees are not included in the outlay totals or,
usually, in the budget authority totals, they were formerly excluded as well from normal budget discipline. In 1980 the credit
budget was instituted to subject guaranteed and direct loans to
greater scrutiny throughout the budget process. The credit budget
covers all direct and guaranteed loans by Federal agencies, whether on- or off-budget. Control is effected through appropriation bill
limitations, which cover about two-thirds of all new loan guarantee
commitments to be extended in 1984. (See Part 5 for a discussion of
credit programs by function, Part 7 for a more complete description
of the credit budget and credit control system, and Special Analysis
F, "Federal Credit Programs/' for a detailed discussion of Federal
credit activities.)
Taxation and tax expenditures.—Taxation provides the Government with receipts, which withdraw purchasing power from the
private sector in order to finance direct Government expenditure.
The structure of the tax system that raises these receipts has
important effects on the allocation of resources among private uses
and the distribution of income among individuals. These effects are
caused by the choice of taxes and by the structural characteristics
of each different tax—for example, by the rate schedules, exemptions, deductions, and exclusions of the individual income tax. The
effects of taxation on resource allocation and income distribution
are analogous to the effects of outlays.
Some features of the tax structure have been defined as "tax
expenditures" and receive special attention in the budget. Tax
PERSPECTIVES ON THE BUDGET
6-17
expenditures are defined as amounts attributable to provisions of
the Federal income tax laws that allow a special exclusion, exemption, or deduction from gross income or that provide a special
credit, a preferential rate of tax, or a deferral of tax liability. For a
tax provision to cause a tax expenditure under this definition, two
conditions are necessary: the provision must be "special" in that it
applies to a narrow class of transactions or transactors; and there
must be a "general" provision to which the special provision is an
exception. The Congressional Budget Act requires that estimates of
tax expenditures be published in the budget.
Tax expenditures are so designated because they are one means
by which the Federal Government pursues public policy objectives,
and because in many cases they can be regarded as an alternative
means of achieving the same objectives as direct expenditures.
They can also be regarded as an alternative means of achieving the
same objectives as other instruments of Government policy, such as
loan guarantees, regulations, and provisions of the tax law other
than those that give rise to tax expenditures. There are numerous
examples of the similarity in objective between tax expenditures
and direct outlays. For instance, direct expenditures and tax expenditures both reduce the cost of ship acquisition by shipping
companies; and direct loans and the use of tax-exempt bonds both
lower the cost of borrowing for eligible persons. Similarly, State
and local governments benefit both from direct grants and from
the ability to borrow funds at tax-exempt rates; and individuals
benefit both from social security payments and from the tax exemption of these payments.
Tax expenditures ordinarily result from permanent legislation
and therefore are not submitted to the Congress each year and do
not routinely receive a formal and systematic annual review. In
this sense they share a legislative status with entitlement programs, such as social security, which do not require annual appropriations. However, tax expenditures, other provisions of the
income tax, and other tax laws are generally reviewed whenever
fiscal policy decisions are considered regarding the overall level of
tax receipts. During the last two years the Administration and the
Congress reviewed entitlement programs, tax expenditures, and
other provisions of tax law. Part of this work led to the Tax Equity
and Fiscal Responsibility Act of 1982, which changed a number of
tax expenditures and other tax law provisions. This act, furthermore, was passed in accordance with a reconciliation directive in
the congressional budget resolution that called on various committees of the Congress to increase receipts or decrease outlays by
specified amounts in order to achieve overall budget targets.
The classification of certain provisions of law as resulting in tax
expenditures requires some reference tax structure against which
6-18
THE BUDGET FOR FISCAL YEAR 1984
the actual tax law can be compared. Deviations of the law from
this standard are deemed to cause tax expenditures. The reference
tax structure that is used for this purpose consists of the general
provisions of the Internal Revenue Code that deal with basic structural features of the income tax. For the individual income tax,
this standard includes those provisions that exist under current
law for graduated rate schedules, personal exemptions, zero-bracket amounts (standard deductions), and basic accounting rules. By
definition, therefore, these characteristics of the tax structure do
not cause tax expenditures.
The explicit use of the general provisions of the Internal Revenue Code as the reference tax structure makes it clear that listing
an item as a tax expenditure does not imply that it is either a
desirable or an undesirable provision. If the general provisions of
the Code were different, the estimated amounts for particular provisions would be different and the list of tax expenditures might be
different. Similarly, if the reference tax structure was different
from the general provisions of the Internal Revenue Code, the list
of tax expenditures and the estimated amounts would also be different from what they are now. A reference tax structure could be
defined differently with respect to particular provisions of the law.
For example, it might exclude the zero-bracket amount (standard
deduction) and thus classify this provision as causing a tax expenditure. Alternatively, a different reference tax structure might be
based upon a normative judgment about an "ideal" income tax
base. Such a standard might, for example, adjust incomes for inflation, or it might integrate the individual and corporation income
taxes rather than regarding the separate tax treatment of individuals and corporations as part of the reference tax structure. This
would alter the estimates of tax expenditures.
Regardless of how the reference tax structure is defined, the
provisions of tax law that do not result in tax expenditures deserve
as much scrutiny as the provisions of tax law that do. This is
because the other provisions also have major effects on the allocation of resources and the distribution of income, and because they
may be alternative means of achieving the same objectives or
analogous objectives as tax expenditures achieve. For example,
investment in equipment may be stimulated by either an increase
in the investment tax credit or a decrease in the corporation
income tax rate; the former is a change in a tax expenditure, but
the latter is not. Similarly, income support may be provided by
either the exclusion of social security benefits from taxable income
or by the zero-bracket amount (standard deduction); the former
causes a tax expenditure, but the latter does not.
Tax expenditures are presented at two places in the budget. Part
5, "Meeting National Needs: the Federal Program by Function/'
PERSPECTIVES ON THE BUDGET
6-19
discusses the major tax expenditures in each functional category,
together with outlays and guaranteed loans, in order to describe
more fully the Government's policy for meeting each national need.
Special Analysis G, "Tax Expenditures," analyzes the concept and
measurement of tax expenditures and presents a complete list of
tax expenditure estimates for 1982-84.
Tax expenditures were originally estimated as revenue losses.
They were defined as the difference between tax receipts and what
tax receipts would be if the tax law were different. If removing a
tax provision would increase taxable income, for example, the tax
expenditure was estimated as the increase in taxable income multiplied by the tax rate that would be paid on the additional income.
The present concept of tax expenditures has been modified in
order to make tax expenditures more comparable with direct outlays and therefore more useful in analyzing Federal programs. Tax
expenditures are estimated as outlay equivalents, i.e., as the
amount of outlays that would be required to provide an equal aftertax income to the taxpayer (and thereby an equal incentive) as the
special tax provision provides. In many cases the required outlays
are greater than the revenue loss, because taxpayers would have to
pay taxes on the higher income derived from the outlays. For
example, one tax expenditure provision is the exclusion from taxable income of the value of housing and meals supplied to military
personnel. If the Government were to repeal this tax exclusion and
instead pay higher salaries, the increase in salaries would be taxed.
Consequently, if the Government were to use taxable direct expenditures rather than tax expenditures and were to provide the
same total after-tax compensation, the increase in direct outlays
for higher salaries would have to be greater than the revenue loss
under the special tax provision. The Federal deficit would be the
same in either case, however, because higher outlays would be
required only to the extent that tax receipts were higher.
Therefore, in order to make the tax expenditure equivalent to a
direct outlay in such cases, the revenue loss is adjusted so that the
taxpayer's after-tax income is the same regardless of whether the
Government uses a direct outlay or a tax expenditure to achieve its
objectives. For some tax expenditures, though, the revenue loss is
equivalent to a direct outlay without any adjustment. Special Analysis G presents estimates according to both concepts, but for program analysis in this budget only the outlay equivalent estimates
are used.
The size of a particular tax expenditure depends not only on the
tax provision in question but also on the interaction of this provision with the rest of the tax structure. The reductions in the
income tax rate schedule enacted in 1981, for example, automatically decreased many tax expenditures below what they otherwise
6-20
THE BUDGET FOR FISCAL YEAR 1984
would have been. A tax rate reduction decreases the amount of
receipts that would be gained by repealing deductions, exemptions,
and exclusions, because lower tax rates are applied to the increase
in taxable income.
The interaction among tax provisions means that special calculations are generally needed to add tax expenditures together. For
example, if more than one exclusion from individual income were*
ended, the gain in receipts would generally be greater than the
sum of the separate tax expenditures, because some taxpayers
would move into higher tax rate brackets. If more than one personal deduction were ended, the gain in receipts would generally be
smaller than the sum of the separate tax expenditures, because
some taxpayers would switch to using the zero-bracket amount
(standard deduction). Consequently, adding together separate tax
expenditures would usually be misleading, and they are not aggregated in this budget except for specially computed totals by functional category.
As discussed in Part 4 of this volume, "Budget Receipts," the
principal tax change enacted last year was the Tax Equity and
Fiscal Responsibility Act of 1982. This act raised receipts through a
large number of separate provisions, several of which repealed or
reduced tax expenditures. For example, safe-harbor leasing is to be
phased-out by December 31, 1983, thereby restricting the conditions
under which firms that have no tax liability can use leasing transactions to transfer unused investment tax credits and depreciation
deductions to profitable firms; and the personal deductions for
medical expenses and casualty losses were reduced. Many other
provisions that raised receipts, such as the withholding of taxes on
interest and dividends and a higher excise tax on cigarettes, had no
effects on tax expenditures.
As part of the bipartisan plan to restore social security reserves
to safer levels, the Administration supports several changes in the
payroll tax and the individual income tax. Two of the income tax
changes would affect tax expenditures. Half of the social security
benefits received by people whose income is above specified levels
would be subject to tax, which would reduce the present tax expenditure from not including any social security benefits in adjusted gross income; and employees would receive a refundable tax
credit in 1984 that would offset the additional social security tax
they would pay in that year due to an acceleration of the scheduled
increase in the payroll tax rate.
The Administration also proposes to reduce the tax expenditure
from not taxing the health insurance premiums that employers
pay as part of the total compensation of their employees. Premiums above a specified level would be subject to individual income
tax. Several new tax expenditures are proposed for diverse pur-
PERSPECTIVES ON THE BUDGET
6-21
poses: a group of incentives for the redevelopment of depressed
areas designated as "enterprise zones"; a jobs tax credit for employers who hire the long-term unemployed; a tuition tax credit for
students of qualified elementary and secondary schools; and education savings accounts for college and university expenses.
FEDERAL BUDGETING FOR CAPITAL EXPENDITURES
A preceding section discusses a group of Federal outlays—largely
loan programs—that are excluded from the Federal budget under
terms of law. In recent years a number of proposals have been
made to expand greatly the range of activities that are excluded
from the budget. Several different reasons have been articulated to
justify the exclusion of some types of spending (or taxes and spending) from the budget. The principal arguments are that:
• The program is separate and autonomous from the general
fund and, therefore, should not be included in the budget.
(This argument is frequently raised when proposals are made
to exclude trust or other earmarked funds from the budget.)
• The program is of a nature that should not be reflected as
current budget outlays. (This argument is used by proponents
of excluding Federal capital investments and Federal loans or
other business-type spending.)
• The program is too important to be limited by the budget
ceilings and, therefore, should be excluded from the budget.
(This rationale was used for the exclusion of the petroleum
purchases for the strategic petroleum reserve.)
• The program operates under independent management and
should be left out of the budget in order to preserve its
independence. (This is the argument for excluding the Postal
Service.)
It should be recognized that budget concepts are not sacrosanct.
From time to time changes have been made in them in order to
cope with new conditions and perceptions, and in the future other
changes will need to be made.
The most recent comprehensive review of budget usages occurred
in 1967 and was conducted by a temporary study commission entitled the President's Commission on Budget Concepts. The recommendations of that commission were largely incorporated in the
1969 budget and still constitute the dominant guidance for establishing and maintaining consistent budget usages.
Because of the increasing range of proposals for major new exclusions from the coverage of the budget, this section describes the
nature and purposes of the budget and analyzes one of the most
important of the current proposals for further exclusions—Federal
capital investments—in light of how this proposal would affect the
Federal budget.
6-22
THE BUDGET FOR FISCAL YEAR 1984
Basic role of the budget—The Federal budget serves many purposes. It is a tool for Presidential review and policy formation, for
congressional action, for agency financial operations, for public
understanding, and for a public accounting for the use of public
monies. It is the primary mechanism for the President and the
Congress to exercise control over Federal finances. To serve these
purposes adequately several conditions must be met:
• The Federal budget must be comprehensive: all Federal taxes
and spending must be included.
• Federal budgetary transactions must be arrayed into categories that reflect the sources or types of receipts and the purposes for which outlays have been or are proposed to be spent.
• The budget must link legal responsibility for the use of funds
with program operations so that the funds are used for the
purposes and under the conditions specified by law.
• Budget transactions must be linked to accounting systems
that permit auditing.
• It is important for both economic analysis and for budget
control that periodic and reliable data on actual budgetary
transactions be available. Hence, budgetary transactions must
be susceptible to reliable monthly reporting, so that it is
possible to determine the composition and magnitude of Federal receipts and spending as the year progresses.
• Budget presentation must be logical and clear so that programs, proposals, and results can be understood and analyzed
by the general public as well as by budget technicians.
• Budget transactions must link the net budget results (the
surplus or deficit) to changes in the Federal debt.
• Budget practices must be consistent with the concepts and
principles that govern them. The concepts and principles, in
turn, must be sound operationally as well as in theory.
One of the most critical elements in the design of the Federal
budget is comprehensiveness. A fundamental rule under current
Federal budget concepts is that if a tax or spending activity is
carried out by the Federal Government it belongs in the budget;
the only existing exceptions are under terms of law and are inconsistent with budget concepts. As the 1967 Report of the President's
Commission on Budget Concepts states:
"Flowing from the definition of a budget as a basic part of a
comprehensive financial plan, the budget should include all
programs of the Federal Government and its agencies/' n
By having a budget that is comprehensive of all Federal taxes
and spending, it is possible for the President, the Congress, and the
public to assess the relative importance of different programs and
11
Report of the President's Commission on Budget Concepts (Washington, D.C.: U.S. Government Printing
Office, 1967), p. 7.
PERSPECTIVES ON THE BUDGET
6-23
thereby make policy judgments about the proper size and composition of Federal taxation and spending. Programs that are omitted
from the budget almost inevitably receive less scrutiny in the
process of setting priorities, even though they are financed from
Federal taxes or borrowing. Even when a program is relatively
autonomous and not normally constrained by the annual budget
process—such as unemployment taxes and benefits—it is important
that the program be included in the budget so that overall Federal
budget policy can take all Federal taxes and spending into account,
and so that legislation affecting such programs can be judged in
the light of its effect on the overall budget and the economy as well
as its program implications.
Capital budgeting issues.—In recent years proposals have been
made that the Federal Government adopt a capital budget. In
evaluating this proposal, it is important to distinguish between
capital budgeting and capital planning. Under a capital budget the
basic system of accounting for capital investments would be
changed. Outlays for new capital would be recorded in the capital
budget while all other spending would be reflected in an operating
budget.
Capital planning, on the other hand, involves systematic analysis
of the optimum use of capital resources in combination with other
resources to meet perceived needs in the most cost-effective
manner. This is a standard practice within the Federal Government under the present budget system. For example, the Veterans
Administration projects medical caseload needs and assesses the
adequacy of present and possible future physical facilities and
other resources to meet them. The Department of Defense has a
systematic procedure for analyzing weapons systems needs and
costs. Because resources are finite, the Department must make
tradeoffs between research and development, systems acquisition,
and operating expenses in deciding how best to meet these needs.
Even for areas where the Federal Government finances major investments but generally does not own the resulting facilities—such
as highways and pollution control facilities—the Federal Government normally has planning processes designed to match the available resources and needs. Hence, the Government's capital planning processes are integrated into agency budget planning processes, where they can be evaluated in the context of program goals,
and alternative means of achieving those goals.
The argument for creation of a Federal capital budget and exclusion of capital spending from the budget is commonly defended by
application of business accounting practices to the Federal Government, and by analogies to State and local financial practices. In
business accounting, capital investment is clearly separated from
operating costs, but operating costs include a charge for the use (or
6-24
THE BUDGET FOR FISCAL YEAR 1984
depreciation) of capital. It is argued that failure to apply similar
accounting conventions to the Federal budget creates perverse incentives that discriminate against capital investments. To examine
this argument it is necessary to study both the applicability of
business accounting conventions to the Federal budget and whether the current budget conventions do, in fact, discriminate against
Federal capital investments.
Applicability of business capital accounting conventions to the
budget.—Accounting conventions must be related to the needs and
nature of the organization served. It cannot automatically be presumed that accounting practices used in the private sector should
also be used by the Federal Government, because the nature, purposes, legal constraints, and power of the Federal Government
differ substantially from those of private business enterprises. In
the private sector, accounting is focused on identifying profitability, net worth, unit cost, and tax liabilities—factors that are critical for business success. Of these factors, only unit cost measures
are generally relevant to the Federal Government, and they are
provided by accounting systems, not the budget system.
• Profitability: The Federal Government is inherently not run
for profit. Indeed, any activity that is profitable raises the
question of whether it should be divested so as to become part
of the private sector. While some essentially self-supporting
activities (such as the Postal Service) are permanently Federal operations, most Federal operations involve tax and spending programs, not operations designed to generate profits.
• The true net worth of the Federal Government is based on
the strength of the American economy, not on what the Government owns as physical or financial assets. Most Federal
physical assets—defense installations, public facilities, public
parks, national forests, etc.—are held as public trusts, not as
a source of profit. The primary financial asset of the Government is an asset not available to any private business: the
ability to tax. Similarly, the primary responsibilities of the
Government—to defend the nation and to promote the general welfare—have no counterpart in the private sector.
• Unit cost data in manufacturing and other businesses are
critical factors in setting prices. In the Federal Government
they are used mostly in controlling the cost of operations, and
only occasionally in price setting. This follows from the fact
that the central core of Federal operations is the provision of
tax financed services (such as national defense) and of income
transfers (such as social security).
Additionally, in private business practice capital budgeting is
used to determine financing, whereas financing of the budget is
determined by basic fiscal policy considerations that are unrelated
PERSPECTIVES ON THE BUDGET
6-25
to Federal capital investment. Hence, it is clear that the true test
of the appropriateness of business accounting principles to the
Government lies in examining how their adoption would affect the
Federal budget.
Effect of capital budgeting based on normal business accounting
on the Federal budget.—If the Federal Government were to adopt a
capital budget, a series of changes would occur:
• It would be necessary to create two budgets, dividing Federal
capital expenditures and operating costs into two separate
budgets.
• The dividing line between which spending components are
deemed operating costs and which components are capital
expenditures is vague and subject to manipulation, thereby
weakening effective control over the budget.
• It would be necessary to compute depreciation charges for
Federal capital facilities and equipment and to develop a
method of charging the operating budget for them.
• There would be a major difference between Federal borrowing
(and changes in Federal debt) and the budget deficit. Capital
investments would be financed by borrowing or taxes at the
time when the facilities and equipment were acquired and
paid for, regardless of when they were charged to the operating budget. Conversely, depreciation would be charged to the
operating budget even though it would have no effect on cash
payments or borrowing.
• Creation of this dual budget structure would further complicate the Congressional appropriations and budget control
processes.
• The budget outlays and surplus or deficit totals would be
much less useful than now as a measure of current demands
made by the Government on the economy.
Capital budgeting would change the recorded levels of spending
in the regular budget by (a) excluding spending for new capital
facilities while (b) including estimates for depreciation. The exclusion of new spending would make the regular budget far less useful
as a measure of the current level of Federal demands upon the
economy, while introduction of depreciation accounting (a necessary corollary to a capital budget based on a business accounting
model) would greatly weaken the reliability of recorded outlay
totals, since depreciation estimates are necessarily arbitrary. The
problem of Federal depreciation accounting is clearly one of the
weakest links in the argument for a Federal capital budget. This
problem can be illustrated by analyzing the table below.
As the table shows, the dominant form of Federal investment in
physical assets is for national defense. In the case of defense spending:
6-26
THE BUDGET FOR FISCAL YEAR 1984
FEDERAL OUTLAYS FOR MAJOR NEW PHYSICAL CAPITAL INVESTMENT
(In billions of dollars)
1942 -
Direct Federal acquisitions:
National defense
Nondefense
Grants to State and local governments for capital acquisition
Total
1952
1962
1972
1982
19.9
1.4
14.2
1.5
17.8
2.3
19.1
3.6
48.8
8.5
0.2
0.6
3.2
8.4
20.2
21.5
16.2
23.4
31.1
77.4
• The economic burden occurs when the defense goods are built,
not when they are used.
• There are no known standards for depreciating defense spending; the very time when the greatest losses occur (wartime) is
the very time when depreciation estimates would be least
valid. While it would be possible in theory to develop depreciation guidelines for defense, any such accounting system
would clearly break down in times of war.
• There is no evidence that within the defense budget physical
investment is being shortchanged in favor of operating costs.
While total defense spending clearly fluctuates significantly
over time, both defense investment and operating costs generally move in tandem.
Hence, it is clear that moving to a capital budget and depreciation accounting for defense spending would be counterproductive.
It would make the budget significantly less reliable with no compensating benefits.
As the preceding table shows, the second largest component of
Federal capital investment is for grants to State and local governments. It is frequently assumed by capital budgeting advocates that
Federal grants for State and local capital investment would be
included in a Federal capital budget, but there is no accounting
logic for excluding Federal outlays to finance such grants from
operating budget outlays. Business accounting has no exact counterpart to the Federal-State-local relationships involved in grants.
If a business donates money to another entity—whether for operating or capital expenses of that entity—such donations are current
expenses of the business. There does not exist a set of accounting
standards that would justify the use of Federal depreciation accounting for physical assets that the Federal Government paid for
but gave away.
The component that most nearly resembles private capital investment—nondefense direct capital investment—is the smallest of
the three components, and clearly is not sufficiently large to warrant major changes in the budgetary presentation and control processes.
PERSPECTIVES ON THE BUDGET
6-27
Capital budgeting and Federal priorities.—One of the principal
arguments currently being made in favor of Federal capital budgeting is that it would change the priorities of Federal spending—that
it would increase Federal capital spending relative to operating
expenditures. If this were so, it would not by itself justify a Federal
capital budget. No legitimate public purpose is served by adopting
accounting conventions designed to promote certain programmatic
goals rather than to afford the President and the Congress a means
of making the choices that reflect their goals and the costs of
achieving these goals.
However, it is not even clear whether adoption of a Federal
capital budget would expand the magnitude of public physical
spending. Generally, State and local governments operate using
capital budgets. Yet, most of the expressed concern about perceived
inadequate public capital investment is a concern about the adequacy of State and local facilities. Furthermore, during recent
years State and local capital spending from their own funds—
despite capital budgets—has declined precipitously relative to
grants to finance State and local capital investment spending.
Applicability of capital budgeting based on State and local government accounting.—Most State and local governments have capital budgets, and it is frequently assumed that if this two-part
budgetary system is appropriate for them, it would also be appropriate for the Federal Government. However, both the powers and
responsibilities and the legal and constitutional constraints on the
Federal Government differ significantly from those of State and
local governments.
• Most State constitutions prohibit borrowing except under restricted circumstances, generally related to capital purposes.
Similarly, State constitutions and/or laws generally constrain
local government borrowing. These constraints generally lead
State and local governments to separate their operating and
capital expenditures. No such constraints apply to the Federal
Government. Except for specific public enterprise capital formation (such as for the Tennessee Valley Authority), there is
no relationship between Federal capital formation and Federal borrowing.
• State and local government financing of capital projects
through bond funds is commonly justified on the basis of
equity. It is argued that it is only fair for the users to pay a
proportionate share of the facilities for each year they live in
a particular locality. Similar arguments are not applicable to
the country as a whole, which the Federal Government encompasses. This is particularly true for spending for defense
facilities and equipment.
6-28
THE BUDGET FOR FISCAL YEAR 1984
It should be noted that capital budgeting practices of State and
local governments (except some governmental business enterprises)
are different from the business accounting model discussed above.
As a normal rule the State or local operating budget is charged for
the amortization on bonds (i.e., the amount needed to pay off
principal and interest on the bonds) rather than depreciation on
the assets. While some bond repayment schedules may closely
match depreciation, it is common for such schedules to be more
rapid or slower than the rates of depreciation. Since Federal borrowing is not related to capital spending but to the general Federal
deficit, there is no need or provision for Federal debt sinking funds
akin to those common to State and local government financing.
Improved Budgetary Data on Federal Physical Capital Investments.—Even though the analysis above leads to the conclusion
that a Federal capital budget would be undesirable, there is a need
for more information on Federal capital spending. For several decades the budget documents have included Special Analysis D ("Investment, Operating, and Other Federal Outlays") as the primary
budget source for data on Federal physical capital investment.
However, the analysis has never contained a historical data base
to facilitate analysis of trends in Federal investment. To remedy
this deficiency, Special Analysis D has been significantly revised
this year to provide such a perspective, and a new set of historical
tables entitled "Federal Outlays for Major Physical Capital Investment" has been developed to supply a great deal of supplementary
historical data. These additional tables, which are available upon
request, show the size and composition of Federal physical capital
investment in current and constant prices and as a percent of gross
national product for a period of over three decades, thereby facilitating evaluation of the adequacy and priorities of Federal capital
spending.
BUDGET FUNDS AND THE FEDERAL DEBT
The budget consists of two major groups of funds: Federal funds
and trust funds.
The Federal funds are derived mainly from taxes and borrowing
and are used for the general purposes of the Government. Most of
these funds are not restricted by law to any specific Government
program. The trust funds, on the other hand, collect certain taxes
and other receipts for specified purposes, such as paying social
security and unemployment insurance benefits.
The budget includes the receipts and outlays of both the Federal
funds and the trust funds and, as shown in the next table, deducts
the various transactions that occur between them. The budget
totals for receipts and outlays therefore generally display the net
transactions of the Federal Government with the public. The
6-29
PERSPECTIVES ON THE BUDGET
BUDGET TOTALS BY FUND GROUP
(In billions of dollars)
1982 actual
Budget receipts:
Federal funds
Trust funds
Interfund transactions
Total, budget receipts
Budget outlays:
Federal funds
Trust funds
Interfund transactions
Total budget outlays
Budget surplus or deficit ( - ) :
Federal funds
Trust funds
....
Total, budget surplus or deficit (—)
Addendum-.
Deficit (-),
x
off-budget Federal entities
Total, surplus or deficit (—) including
off-budget Federal entities
1983
estimate
1984
estimate
1985
estimate
1986
estimate
409.3
268.4
-59.9
376.9
314.8
94.2
404.7
330.2
-75.3
436.7
369.2
-81.6
525.9
404.7
-88.7
617.8
597.5
659.7
724.3
841.9
526.1
262.2
-59.9
603.0
296.4
94.2
610.5
313.3
-75.3
666.2
333.9
81.6
719.3
359.0
-88.7
728.4
805.2
848.5
918.5
989.6
-116.9
6.3
-226.1
18.4
-205.7
16.9
229.5
35.3
-193.4
45.7
-110.6
-207.7
-188.8
-194.2
-147.7
17.3
17.0
14.0
10.5
-9.4
-127.9
-224.8
202.8
-204.7
-157.1
1
No off-budget Federal entities collect governmental receipts, so receipts are not adjusted when on and off-budget totals are consolidated.
The off-budget outlays would be classified as Federal funds outlays if they were included in the budget.
budget does not, however, include the net transactions with the
public of the Federal Financing Bank and the other off-budget
Federal entities, which have been excluded from the budget under
provisions of law.
Thus, as shown in the table on the next page, the combined deficit or
surplus of the budget and the off-budget entities is the principal
determinant of the change in the Federal debt held by the public.12
The budget and off-budget deficits, together with the other factors
noted in this table, are estimated to increase the Federal debt held
by the public from $929.4 billion at the end of 1982 to $1,347.4
billion at the end of 1984, with the increase in 1984 being a little
smaller than in 1983. Borrowing is projected consistently with the
economic assumptions that are explained in Part 2 of this volume.
The projected change in debt held by the public in 1985 and 1986
continues to be large each year but declines in 1986, when the total
Government deficit diminishes.
Gross Federal debt is the sum of the debt held by the public and
the debt held by the Government itself, which includes such investments as the Treasury debt held by the social security and other
trust funds. At the end of 1984 gross Federal debt is estimated to
be $1,606.3 billion, of which debt held by the Government itself is
12
Table 11 in Part 9 of this Budget contains more detail on budget financing through 1984 and shows the
levels of debt from 1981 to 1984. Federal debt is discussed further in Special Analysis E, "Borrowing and Debt."
380-000
0 - 8 3 - 2 0
:
QL
3
6-30
THE BUDGET FOR FISCAL YEAR 1984
BUDGET FINANCING AND CHANGE IN DEBT OUTSTANDING '
(In billions of dollars)
Description
1982 actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
Budget surplus or deficit (—)
Deficit (—) of off-budget Federal entities
-110.6
-17.3
-207.7
-17.0
-188.8
-14.0
-194.2
-10.5
-147.7
-9.4
Total, surplus or deficit ( — )
-127.9
-224.8
-202.8
-204.7
-157.1
-11.9
7.2
4.1
.3
.4
1.5
.6
.5
.4
-1.2
.6
.8
.9
-7.1
9.8
.2
.8
.9
-135.0
-215.0
-203.0
-203.8
-156.3
135.0
215.0
203.0
203.8
156.3
1.0
5.7
.6
.7
2.0
19.5
-1.0
1.4
3.2
17.8
-1.0
.4
35.3
45.7
8.1
21.8
19.6
35.3
45.7
143.0
236.8
222.6
239.1
201.9
Means of financing other than borrowing from
the public:
Decrease or increase ( - ) in cash and other
monetary assets
Increase or decrease ( —) in liabilities for:
Checks outstanding, etc
Deposit fund balances ..
Seigniorage on coins
Total, means of financing other than
borrowing from the public
Total, requirements for borrowing from
the public
Change in debt held by the public
Change in Federal agency investments
in Federal debt:
Federal funds
Trust funds 2
Off-budget Federal entities
Deposit funds 3
Total, change in Federal agency investments in Federal debt
Change in gross Federal debt
'Several amounts have been assumed to be zero in 1985 and 1986 because they are usually small and cannot be estimated accurately.
2
Estimates for 1985 and 1986 are equal to the total trust fund surplus.
3
Certain deposit funds only.
$258.9 billion. Thus, gross Federal debt is much larger than the
Federal debt held by the public.
Gross Federal debt is estimated to rise by $222.6 billion during
1984. As indicated in the lower section of the table above,
$19.6 billion of this increment will be held in trust funds and other
Federal accounts. This is mainly due to the investment of trust
fund surpluses in Treasury debt.
The gross Federal debt consists almost entirely of securities
issued by the Treasury Department. However, a few Government
agencies are authorized to issue their own debt instruments to the
public or to other Government agencies and funds. These securities
are part of the gross Federal debt. At the end of 1982 the public
held $3.8 billion of agency debt, most of which was issued some
years ago. The greater part consists of revenue bonds issued by the
Tennessee Valley Authority and participation certificates in pools
of loans issued by the Government National Mortgage Association
6-31
PERSPECTIVES ON THE BUDGET
on behalf of several agencies. Agency debt is expected to fall by
small amounts each year as existing agency debt matures and most
new agency borrowing is from the Federal Financing Bank (FFB).
The FFB finances its purchases of agency debt by borrowing from
Treasury, which in turn borrows from the public. To prevent
double counting, FFB's holdings of agency debt are not included in
gross Federal debt.
Almost all Treasury securities are covered by a general statutory
debt limitation. The limit through September 30, 1983, is $1,290.2
billion. However, to permit the Federal Government to meet its
obligations, the limit will have to be raised before that time.
Debt subject to the general statutory limit, like gross Federal
debt, includes debt held internally within the Government, such as
the Treasury issues held by the social security trust funds. Debt
subject to the statutory limit is therefore much larger than the
debt held by the public and is nearly as large as gross Federal debt.
It is a little less than gross Federal debt primarily because most
agency debt is excluded from the general statutory limitation.
FEDERAL FUNDS FINANCING AND CHANGE IN DEBT SUBJECT TO LIMIT
(In billions of dollars)
1982
actual
1983
estimate
1984
estimate
Federal funds surplus or deficit (—)
Deficit (—) of off-budget Federal entities
-116.9
-17.3
-226.1
-17.0
-205.7
-14.0
Total, amount to be financed
-134.2
-243.1
-219.8
-11.9
7.2
4.7
.3
.4
.4
.6
.5
-.5
-1.2
.6
-6.5
8.7
-1.1
-2.3
2.3
1.8
-1.0
-.2
-.1
-144.1
-237.0
222.7
144.1
237.0
222.7
Description
Means of financing other than borrowing:
Decrease or increase ( —) in cash and monetary assets
Increase or decrease ( - ) in liabilities for:
Checks outstanding, etc
Deposit fund balances
Seigniorage on coins
Total, means of financing other than borrowing
Decrease or increase ( - ) in investments in Federal debt by Federal
funds, off-budget entities, and deposit funds 1
Increase or decrease ( — ) in Federal funds and off-budget entity debt
not subject to limit
Total, requirements for borrowing subject to debt limit
Change in debt subject to limit
* $50 million or less.
•Certain deposit funds only.
Since trust fund surpluses for the most part have been invested
in debt securities, rather than being held as cash assets, the Federal funds deficit and the deficit of the off-budget Federal entities
must be financed primarily by selling Federal debt. This debt is
almost entirely subject to the statutory limit. As shown in the
table above, the Federal funds deficit plus the off-budget deficit
6-32
THE BUDGET FOR FISCAL YEAR 1984
was $134.2 billion in 1982, and the increase in debt subject to
statutory limit was $144.1 billion. Thus, these deficits approximately accounted for the increase in the debt subject to limit.
THE INCREASE IN TOTAL 1982 OUTLAYS OVER THE
MARCH 1981 BUDGET ESTMATE
Budget outlays for 1982 were $728.4 billion, which is $40.4 billion
higher than the initial proposals made by this Administration in
its revised budget transmitted to Congress in March 1981.13 This
increase is the smallest that has occurred between the proposal of
a budget and its outcome in the past three years, both in absolute
dollars and as a percent of total spending. The average difference
in 1980 and 1981 was 8.1%, while in 1982 it was 5.9%. This section
reviews the major causes of the 1982 increase.
The table below compares the March 1981 outlay estimate
and the actual totals in current and constant (fiscal year 1972)
dollars and as a percent of GNP. It also compares defense and
nondefense outlays in current dollars. The actual outlays for defense were 0.7% below the estimate. Outlays for nondefense programs were 8.4% higher than the estimate.
1982 OUTLAY INCREASES
(Dollars in billions)
March 1981
estimate*
Budget outlays:
Current dollars
National defense
Nondefense
Constant (fiscal year 1972) dollars
As a percent of GNP
Off-budget outlays (current dollars)
688.0
188.8
499.2
319.3
22.7
20.2
Actual
728.4
187.4
541.0
338.7
24.0
17.3
Percent change
5.9
-0.7
8.4
6.1
5.7
-14.4
'The March 1981 outlay estimate has been adjusted for two account ^classifications in the budget, as explained in footnote 13 in the
accompanying text.
Spending increased throughout most of the budget and in different kinds of programs. Outlays were larger than initially estimated
in most of the 17 budget functions except defense. Relatively uncontrollable programs increased 5.3%, and relatively controllable
programs increased 7.8%. The chronology and causes of the specific
changes are described below.
Chronology of outlay increases.—The chronology of outlay in-
creases is displayed in the following table. This Administration's
initial outlay estimate for 1982, adjusted for comparability to cur13
The outlay estimate published in the Fiscal Year 1982 Budget Revisions has been adjusted retroactively for
comparability to reflect the reclassification of two types of transactions. (1) Noncompulsory premiums from
individuals insured under medicare were reclassified from being budget (governmental) receipts to being offsetting collections. This reduced estimated budget receipts and outlays by an equal amount ($3.9 billion for 1982).
(2) P.L. 97-35 provides that the outlays for the purchase of petroleum for the strategic petroleum reserve shall
be classified off-budget. Therefore, the estimated amount for 1982 ($3.5 billion) was removed from the totals.
PERSPECTIVES ON THE BUDGET
6-33
rent data, was $688.0 billion. In July 1981, the estimate increased
$10.1 billion due primarily to changed economic assumptions. In
September 1981, the Administration proposed additional budget
savings of $13.0 billion for discretionary, defense, and entitlement
programs. These reductions, however, were more than offset by
upward economic and technical reestimates and by congressional
action for entitlement programs that differed from Administration
proposals. Between September 1981 and July 1982, there were
more upward revisions, mainly for economic and technical reestimates. Actual outlays were slightly below the final estimate, made
in July 1982.
CHRONOLOGY OF THE 1982 OUTLAY INCREASE
(In billions of dollars)
March 1981 (1982 Budget Revisions)
Accounting changes:
Shift medicare premiums to outlay side of budget
Shift petroleum purchases for strategic petroleum reserve off-budget
Subtotal, adjustments
Adjusted outlay estimate
Other changes:
July 1981 (Mid-Session Review): The largest increases were due to net interest
($8.7 billion) and other interest-related costs ($1.6 billion)
September 1981 (September Update): Increases for net interest ($6.4 billion), farm
price supports ($2.4 billion), and policy changes ($6.9 billion) were offset in part
by reductions proposed by the Administration ($13.0 billion)
February 1982 (1983 Budget): The largest increases were for net interest ($6.6
billion), unemployment compensation ($5.7 billion), and social security ($4.4
billion)
April 1982 (April Update): The largest increase was for farm price supports ($4.1
billion) and the largest decrease was for unemployment compensation ($1.8
billion)
July 1982 (Mid-Session Review): The largest increases were for farm price supports
($1.2 billion) and OCS offsetting receipts ($1.0 billion)
October 1982 (Year-end Statement)
Total increase
Actual
695.3
-3.9
-3.5
-7.4
688.0
10.1
4.6
22.7
3.5
2.1
-2.6
40.4
728.4
Major Causes of the Increase.—The following table summarizes
the reasons for the increase in budget outlays according to three
categories: (1) economic conditions that were different from the
original assumptions; (2) policy changes; and (3) estimating and
other differences. The amounts in the first two categories include
only the major items. The third category is a residual. The figures,
therefore, are approximations.
Changes in economic conditions explain 55% of the total increase. The net effect of policy changes was negligible. Estimating
and other changes account for the remainder.
6-34
THE BUDGET FOR FISCAL YEAR 1984
SUMMARY OF REASONS FOR CHANGES IN 1982 OUTLAYS
(in billions of dollars)
Total
Reasons for change (net):
Economic conditions
22.4
-0.9
18.9
Policy
Estimating differences and other changes
Total
40.4
Economic conditions differed from those forecast in March 1981,
as shown in the table below. Growth in real GNP was 0.7 percentage points lower than projected for 1981, and 6.4 percentage
points lower for 1982. Inflation as measured by the GNP deflator
was 0.5 percentage points lower than originally projected for 1981,
and 2.3 percentage points lower for 1982. As measured by the
Consumer Price Index (CPI), inflation was 0.8 percentage points
lower than projected for 1981 and 2.3 percentage points lower for
1982. The unemployment rate was slightly lower than projected for
1981, but 2.5 percentage points higher for 1982. Interest rates were
higher than the original assumptions. The 91-day Treasury bill rate
during 1981 averaged 3.0 percentage points more than the March
1981 assumption, and the 1982 rate was 1.8 percentage points
higher.
COMPARISON OF ECONOMIC ASSUMPTIONS: MARCH 1981 AND ACTUAL
(Calendar years)
March 1981 estimate
1981
Percent change:
GNP (constant 1972 dollars): 4th quarter over 4th quarter
Inflation (year over year):
GNP deflator
Consumer Price Index (CPI)
Unemployment rate (annual average)
Interest rate (91-day bills, annual avsrage)
1982
Difference
Actual
1981
1982
1981
1982
1.4
5.2
0.7
-1.2
-0.7
-6.4
9.9
11.1
7.8
11.1
8.3
8.3
7.2
8.9
9.4
10.3
7.6
14.1
6.0
6.0
9.7
10.7
-0.5
-0.8
-0.2
3.0
-2.3
-2.3
2.5
1.8
These differences in economic assumptions resulted in a net
increase in outlays of $22 billion. Higher interest rates and increases in borrowing accounted for $17 billion—or about 80%—of
the increase. Higher unemployment increased outlays by more
than $6 billion, primarily for unemployment benefits. Lower inflation reduced outlays for indexed programs by $1 billion. These
changes are shown in more detail in the following table.
Policy changes that differed from proposals in the 1982 Budget
Revisions reduced 1982 outlays by about $1 billion. The largest
decrease occurred for nondefense discretionary programs. In Sep-
PERSPECTIVES ON THE BUDGET
6-35
EFFECT OF CHANGES IN ECONOMIC ASSUMPTIONS ON 1982 OUTLAYS
(In billions of dollars)
Description
Interest rates and change in borrowing: 1
Net interest:
Interest rates
Change in borrowing
Higher education, housing (GNMA), Export-Import Bank, and other
Subtotal, interest rates and changes in borrowing
Inflation:
Indexed programs:
Social security and railroad retirement
Military pay
Military retirement
Civil service retirement
Other
Subtotal, inflation
Difference
12.2
3.3
L8
17.3
-0.6
-0.2
-0.1
-0.1
-0.1
-1.1
Unemployment
6.2
Total
22.4
•Change in borrowing for all reasons, including causes other than economic assumptions.
tember 1981, the Administration proposed a 12% across-the-board
reduction in the 1982 appropriations request for nondefense discretionary programs. Congress enacted about half of these savings,
reducing 1982 outlays $4 billion from the March request. Outlays
for defense programs were also reduced $2 billion due to a revised
appropriation request proposed by the Administration in September. These decreases were almost entirely offset by congressional
action or inaction on Administration proposals for reductions in
entitlement programs, for new or increased user fees, and for other
budget savings. Congress failed to enact $3 billion in entitlement
savings and $2 billion in savings from user fees and other proposals.
Estimating differences and other changes increased 1982 outlays
by $19 billion. Most of this increase was due to two reasons. The
Commodity Credit Corporation spent $10 billion more for the support of agricultural commodities than expected mainly because of
unanticipated increases in farm crop production and lower than
expected demand for farm goods. Outer Continental Shelf offsetting
receipts were less by $5 billion, due to lower than expected bids for
leases and a delay in two sales from late 1982 until 1983.
COMPARISON OF RELATIVELY UNCONTROLLABLE
OUTLAYS AND OF RECEIPTS
The Congressional Budget Act requires that the budget contain
two comparisons between the initial budget estimates and the
actual amounts for the last completed fiscal year: a comparison of
6-36
THE BUDGET FOR FISCAL YEAR 1984
the differences in relatively uncontrollable outlays by major program, and a comparison of the differences in receipts by major
source. These comparisons are made for the 1982 budget in the
following two sections. They are based on the Fiscal Year 1982
Budget Revisions, which this Administration transmitted to the
Congress in March 1981 as its initial proposals for the fiscal year
ending on September 30, 1982.
Comparison of relatively uncontrollable outlays.—Outlays in any
one year are considered to be relatively uncontrollable when the
program level is determined by existing statutes or by contracts or
other obligations. Outlays for these programs generally depend on
factors that are beyond administrative control under existing law
at the start of the fiscal year. For example, the definition of
beneficiaries eligible for programs like medicaid and social security
is established by law. Prior-year contracts and obligations are also
legally binding.
Relatively uncontrollable outlays are grouped into two major
categories: open-ended programs and fixed costs, for which outlays
are generally mandated by law; and payments from prior-year
contracts and obligations, for which outlays are required because of
previous action, such as entering into contracts. Budget estimates
of relatively uncontrollable outlays do not include the effects of
proposed legislation.
For a number of reasons, the amounts estimated in the budget
may differ from the actual outlays that are subsequently realized.
For example, legislation may change benefit rates or coverage; the
actual number of beneficiaries may differ from the number estimated; and economic conditions (such as interest rates) may differ
from what was assumed in making the estimates.
The following table shows the differences between actual outlays
for relatively uncontrollable programs in 1982 and the amounts
estimated in the 1982 budget revisions. The list of programs is the
same as in table 18 (Controllability of Budget Outlays) in Part 9.
Several categories include revisions in the program classifications,
which are shown retroactively for the March 1981 estimates.
Actual outlays for relatively uncontrollable programs in 1982
were $548.4 billion, which is $27.4 billion, or 5.3%, higher than the
estimates based on existing law in March 1981. Outlays for openended programs and fixed costs were $24.4 billion higher, and
outlays from prior-year contracts and obligations were $3.0 billion
above the initial estimate.
Payments for individuals were 77% of all open-ended programs
and fixed costs in 1982. These outlays are essentially income transfers rather than payments for direct Federal operations. Actual
outlays for this grouping were $1.3 billion lower than estimated.
This was caused by legislative savings, partly offset by the net
6-37
PERSPECTIVES ON THE BUDGET
RELATIVELY UNCONTROLLABLE OUTLAYS FOR 1982
(In billions of dollars)
Relatively uncontrollable under present law
Open-ended programs and fixed costs:
Payments for individuals-.
Social security and railroad retirement
Federal employees' retirement and insurance
(Military retired pay)
(Other)
Unemployment assistance
Medical care
Assistance to students
Food and nutrition assistance
Public assistance and related programs
All other relatively uncontrollable payments for individuals
March 1981
estimate
(existing law) *
Change
Actual
163.1
45.5
(15.7.)
(29.8)
21.6
66.5
3.5
4.0
21.0
3.0
-3.8
-1.0
(-0.8)
(-0.3)
2.0
1.3
1.6
1.0
-0.3
-0.1
159.3
44.5
(14.9)
(29.5)
23.6
67.8
5.1
3.0
20.7
2.9
Subtotal, payments for individuals
328.3
-1.3
327.0
Net interest.. .
General revenue sharing
Farm price supports (CCC)
Other open-ended programs and fixed costs
68.4
4.6
2.1
-0.8
16.3
*
9.5
0.1
84.7
4.6
11.6
-0.9
402.5
24.4
426.9
51.4
67.1
5.5
-2.6
56.9
64.5
Total, outlays from prior-year contracts
and obligations
118.5
3.0
121.5
Total, relatively uncontrollable outlays
521.0
27.4
548.4
Total, open-ended programs and fixed costs
Outlays from prior-year contracts and obligations:
National defense
Civilian programs
*50 million or less.
•In 1982, a revision of the controllability classification resulted in some major rectifications in the 1983 budget. This table has been
adjusted to reflect these changes so that the comparisons from the original estimates to the actuals are meaningful. The principal changes were:
—housing assistance was reclassified from being in open-ended programs to being in prior-year contracts and obligations;
—food stamps, food donations, and section 32 commodities were classified as food and nutrition assistance and are now classified as relatively
controllable outlays;
—social services and human development services were classified as public assistance and related programs and are now classified as relatively
controllable, although part of their outlays are included under prior-year contracts and obligations;
—supplementary medical insurance premiums were reclassified from being budget (governmental) receipts to being offsetting collections and are
included under other open-ended programs and fixed costs.
—outlays for the purchase of petroleum for the strategic petroleum reserve are now classified off-budget and are no longer included under
prior-year contracts and obligations.
impact of differences between actual and assumed economic conditions and the number of beneficiaries. Actual payments for individuals were below the estimate for the first time in 3 years. In 1980
and 1981, actual outlays for these programs were above the estimate by $15.6 billion and $11.7 billion, respectively.
Outlays for social security and railroad retirement, the largest
category of payments for individuals, were $3.8 billion lower than
estimated. The orginal estimate assumed automatic benefit increases (based on inflation as measured by the Consumer Price
Index) of 11.2 percent in July 1981 and 9.3 percent in July 1982.
The actual increases were 11.2 percent and 7.4 percent, respectively. The original estimate also assumed that 36.5 million people
6-38
THE BUDGET FOR FISCAL YEAR 1984
would collect social security benefits in 1982. At mid-year the program was making monthly payments to only 36.2 million people.
Congressional enactment of changes in both the social security
and railroad retirement programs also reduced outlays in 1982.
Major changes in the social security program were the phase-out of
post-secondary social security student benefits and restrictions on
the lump sum death payment. The changes in the railroad retirement program included a provision to restructure industry pension
benefits.
Outlays for Federal employees' retirement and disability insurance programs were $1.0 billion below the budget estimate. These
programs consist of military retired pay, civilian employee retirement and disability, and veterans service-connected compensation.
Except for veterans service-connected compensation, these benefits
are indexed to the consumer price index. Outlays for the indexed
programs were below the initial estimate, mainly because inflation
was lower than expected in 1982. In addition, Congress adopted an
Administration proposal limiting cost-of-living adjustments for military and civil service retirees to once each year.
Outlays for unemployment compensation programs were $2.0 billion above the initial estimate. This increase was the net result of a
higher than assumed rate of unemployment and savings from enacted legislation. Higher than expected unemployment raised outlays by $4.5 billion but this increase was partially offset by congressional enactment of Administration proposals to concentrate extended benefits on States with high unemployment and to limit
trade adjustment assistance to workers displaced for long periods
by increased imports.
Outlays for medical care were $1.3 billion higher than estimated.
Medicare outlays were $2.1 billion above the initial estimate largely because hospital costs increased at a rate faster than anticipated. Outlays for the medicaid program were $0.8 below the initial
estimate because Congress enacted an Administration proposal to
limit the growth in medicaid expenditures beginning in 1982.
Assistance to students consists of GI bill benefits and the guaranteed student loan program. Outlays for the guaranteed student
loan program were $1.3 billion higher than the estimate due to the
effect of higher interest rates than expected on the interest subsidy
for student loans. A proposal enacted by Congress to restrict the
benefits of this program to students from low-income families offset
this increase by $0.1 billion in 1982. Use of GI benefits was greater
than anticipated and accounts for $0.4 billion of the total $1.6
billion increase over estimated outlays for these programs.
Food and nutrition assistance includes the child nutrition and
special milk programs. Outlays for these programs were $1.0 billion
lower than estimated due to congressional enactment of legislation
PERSPECTIVES ON THE BUDGET
6-39
proposed by the Administration to reduce subsidies for middle and
upper income students.
Public assistance and related programs include public assistance
payments, supplemental security income, outlays for earned
income tax credits, and veterans non-service-connected pensions.
Outlays for these programs were $0.3 billion below the March 1981
estimate.
Uncontrollable outlays for all other payments for individuals
were $0.1 billion lower than estimated, mostly because of lower
than expected payments for black lung disabilities.
Open-ended programs and fixed costs, other than payments for
individuals, account for most of the difference between estimated
and actual relatively uncontrollable outlays. The largest difference
was for net interest, where outlays were $16.3 billion—or 24%—
higher than the original estimate. Interest on the public debt was
$19.3 billion higher than assumed, largely because interest rates
and Federal borrowing were higher than anticipated. The budget
estimate assumed a 8.9% interest rate on 91-day Treasury bills for
fiscal year 1982 whereas the actual 91-day rate averaged 11.8%.
Interest received by trust funds, which is offset against interest
costs to measure transactions with the public, was also $1.7 billion
higher than the budget estimate due to higher than anticipated
interest rates and despite lower trust fund balances.
Outlays for farm price supports were $9.5 billion above the initial estimate. This change was largely due to unanticipated increases in farm production and lower than expected prices for
agricultural commodities.
Outlays for prior-year contracts and obligations for civilian and
national defense programs were $3.0 billion above the initial estimate. National defense outlays were $5.5 billion—or 10.7%—above
the estimate because of faster than anticipated spending in nearly
all defense appropriation categories. Outlays for civilian programs
were $2.6 billion, or 3.9%, lower than the initial estimate. The
largest decreases from estimated to actual outlays for civilian programs were for the Export-Import Bank, and the Environmental
Protection Agency's program for construction of sewage treatment
plants.
Comparison of actual and estimated receipts.—Budget receipts in
1982 were $617.8 billion, which is $28.7 billion less than the $646.5
billion estimated in the revised budget transmitted to Congress in
March 1981.
Lower than anticipated incomes and oil prices, and higher than
expected interest rates, reduced receipts by a net $47.6 billion. This
decrease was partially offset by changes in collections patterns and
effective tax rates, which increased receipts by $5.1 billion. Differences in tax law from the legislation proposed in the budget revi-
6-40
THE BUDGET FOR FISCAL YEAR 1984
sions increased receipts by an additional $13.8 billion. These differences in tax law consist primarily of modifications of the proposals
reflected in the revised budget and also of changes in law that were
not proposed at that time.
Substantial reductions in individual income tax rates and business taxes were proposed in March 1981. These proposals, which
included a 30% reduction in marginal tax rates for individuals and
a system of accelerated depreciation, were expected to reduce 1982
receipts by $53.9 billion. Other proposals, which were estimated to
increase 1982 receipts by $2.6 billion, included an increase in railroad retirement payroll taxes; increases in passport and visa fees;
and increases in user fees for aviation and barge operators. Together, the March 1981 proposals were estimated to reduce 1982 receipts by $51.3 billion.
The Economic Recovery Tax Act of 1981 (ERTA), enacted on
August 13, 1981, was the only major legislated tax change affecting
1982 receipts. The provisions of this Act included across-the-board
reductions in marginal tax rates for individuals, an accelerated
cost recovery system for capital investment, reductions in estate
and gift taxes, and saving incentives. This Act and several minor
legislated changes reduced 1982 receipts by $13.8 billion less than
the Administration proposed.
COMPARISON OF ACTUAL 1982 BUDGET RECEIPTS WITH THE MARCH 1981 ESTIMATES
(In billions of dollars)
March
1981
estimate
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions...
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts
Total.
288.2
62.4
^210.6
55.7
7.6
7.8
14.2
1
646.5
Differences
in tax law
from 1981
proposals
Revised
Technical
adjustments
Net change
5.5
0.6
*
-13.2
Actual
1.9
-3.1
0.7
1.2
0.2
-9.1
-19.4
0.4
1.1
1.9
297.7
49.2
201.5
36.3
8.0
8.9
16.2
-47.6
5.1
-28.7
617.8
16.9
0.8
-0.4
-3.4
-0.2
0.2
-0.2
-12.8
-14.7
-8.8
-12.9
13.8
-0.1
-0.2
9.6
*$50 million or less.
^ h e data have been revised to reflect the retroactive rectification of supplemental medical insurance (SMI) premiums and voluntary hospital
insurance premiums, formerly classified as budget receipts, as offsets to outlays. These changes reduce the March 1981 receipts and outlays
estimates by $3.9 billion, this having no impact on the deficit.
Individual income taxes were $297.7 billion in 1982, $9.6 billion
greater than the budget estimate of $288.2 billion. Differences in
tax law from the legislation proposed in March 1981 increased
individual income tax receipts by $16.9 billion. This was partially
offset by lower than anticipated personal incomes, which reduced
individual income taxes by $12.8 billion. Different collection patterns and effective tax rates increased receipts by $5.5 billion.
Corporation income taxes were $13.2 billion below the March
1981 estimate. Substitution of the Economic Recovery Tax Act of
PERSPECTIVES ON THE BUDGET
6-41
1981 for the revised budget proposals increased corporation income
taxes by $0.8 billion. This increase was more than offset by a $14.7
billion decline in corporation income taxes due to lower than anticipated corporate profits.
Social insurance taxes and contributions (which are composed of
employment taxes and contributions, unemployment insurance receipts, and other retirement contributions) were $9.1 billion less
than the March 1981 estimate of $210.6 billion. A decline in employment taxes and contributions, due in large part to lower than
anticipated wages and salaries, accounts for $7.0 billion of the
reduction in social insurance receipts. Lower than anticipated collections of unemployment insurance receipts, primarily due to an
overestimate of State taxes deposited in the Treasury to finance
unemployment benefits, reduced social insurance taxes and contributions by an additional $2.1 billion.
Reductions in the windfall profit tax, due in large part to lower
oil prices than expected, accounted for $15.9 billion of the $19.4
billion decline in excise tax receipts. Inaction on the proposed
increase in airport and airway user taxes until August 1982, and a
reclassification of the proposed increase in inland waterway user
fees as an offset to outlays, reduced other excise taxes by $2.1
billion.
Estate and gift taxes and customs duties were above the March
1981 estimates by $0.4 billion and $1.1 billion, respectively. An
underestimate of imports accounted for most of the increase in
customs duties receipts.
An increase in deposits of earnings by the Federal Reserve
System, primarily reflecting higher interest rates than anticipated
in March 1981, accounted for most of the $1.9 billion rise in miscellaneous receipts.
ALLOCATION OF WINDFALL PROFIT TAX RECEIPTS
Section 102 of the Crude Oil Windfall Profit Tax Act of 1980
requires that each year the President propose the allocation of net
receipts from the tax in his budget.
This act establishes a Windfall Profit Tax Account in the Treasury "for accounting purposes only." After the Secretary of the
Treasury has determined the amount of net receipts from the tax,
they are to be allocated to the Windfall Profit Tax Account. Since
the Conference Report accompanying the act stated explicitly that
the net receipts from the tax "shall not be earmarked or invested
separately from general revenues . . .", the allocations referred to
in section 102 cannot be interpreted as earmarking funds for specific purposes.
The method for these allocations is prescribed by three formulas
in subsections b(l), b(2), and b(3) of section 102. The allocations for
6-42
THE BUDGET FOR FISCAL YEAR 1984
1984 are compared in the following table with the amounts included in this budget for the functional categories referred to in the
formula.
ALLOCATION OF WINDFALL PROFIT TAX, NET RECEIPTS, 1984
(In millions of dollars)
Section 102 Formula
Total net receipts
Allocation:
Low-income assistance
Energy and transportation programs
Income tax reductions
Total
1
1984 Budget
6,374
6,374
1,594
956
3,824
1
18,688
-20,555
6,374
39,243
This amount is the total outlays for the other income security subfunction (609).
2
This amount is the total outlays for all programs in the energy function (270) and the ground transportation subfunction (401).
PART 7
THE BUDGET SYSTEM
AND CONCEPTS
7-1
THE BUDGET SYSTEM AND CONCEPTS
The budget system of the U.S. Government provides the framework within which decisions on resource allocation and program
management are made in relation to the requirements of the
Nation, availability of Federal resources, effective financial control,
and accountability for use of the resources.
THE BUDGET PROCESS
The budget process has three main phases: (1) executive formulation and transmittal; (2) congressional action; and (3) budget execution and control. Each of these is interrelated with the others.
Executive formulation and transmittal.—The budget sets forth
the President's financial plan and indicates his priorities for the
Federal Government. The President's transmittal of his budget to
the Congress early in each calendar year is the culmination of
many months of planning and analysis throughout the executive
branch.
Formulation of the 1984 budget began in the spring of 1982. The
budget is formulated in the context of a multi-year budget planning and tracking system that extends coverage to the 4 years
following the budget year and integrates long-range planning into
the executive budget process. This multi-year budget planning
system requires that broad fiscal goals and agency spending and
employment targets be established beyond the budget year.
During the period when a budget is formulated in the executive
branch, there is a continual exchange of information, proposals,
evaluations, and policy decisions among the President, the Office of
Management and Budget (OMB) and other Executive Office units,
and the various Government agencies.
In the spring, program and policy issues are identified and budgetary projections are made, giving attention both to important
modifications and innovations in programs and to alternative longrange program plans. These budgetary projections, including projections of estimated receipts prepared by the Department of the
Treasury, are then presented to the President for his consideration,
and the major issues are discussed. At about the same time, the
President receives projections of the economic outlook that are
prepared jointly by the Council of Economic Advisers, OMB, and
the Treasury.
7-2
THE BUDGET SYSTEM AND CONCEPTS
7-3
Following a review of these projections, the President establishes
general budget and fiscal policy guidelines. General policy directions and planning ceilings for both the fiscal year that will begin
about 15 months later and for the 4 years beyond are then given to
the agencies to govern the preparation of their budget requests.
Throughout the fall and early winter, the executive branch is
involved in the development of the President's budget. The primary
phase of the budget process involves the formulation and preparation of the President's budget for transmittal to the Congress.
Budget determinations are made after detailed reviews of agency
budget requests. These determinations are then provided to the
agencies but may be revised as a result of later Presidential decisions. Fiscal policy issues—relating to total budget outlays and
receipts—are reexamined. The effects of budget decisions on budget
authority and outlays in the years that follow are also considered
and are explicitly taken into account, consistent with the multiyear budget planning system. Thus, the budget formulation process
involves the simultaneous consideration of the resource needs of
individual programs and the total outlays and receipts that are
appropriate in relation to current and prospective economic conditions.
The Congressional Budget Act of 1974 requires that current services estimates be transmitted to provide the Congress with a basis
for reviewing the President's budget. These estimates are projections of budget authority and outlays required to continue Federal
programs and activities in the upcoming fiscal year, without policy
changes from the fiscal year in progress. The current services
estimates are included in the President's budget to facilitate comparison with the budget estimates. *
Congressional action.—The Congress can act to approve, modify,
or disapprove the President's budget proposals. It can change funding levels, eliminate proposals, or add programs not requested by
the President. It also enacts legislation affecting taxes and other
sources of receipts.
In making appropriations, the Congress does not vote on the
level of outlays directly, but rather on budget authority. The Congress first enacts legislation that authorizes an agency to carry out
a particular program and, in some cases, includes limits on the
amount that can be appropriated for the program. Many programs
are authorized for a specified number of years or indefinitely; other
programs, such as most nuclear energy, space exploration, defense
procurement, foreign affairs, and some construction programs, require annual authorizing legislation.
'See Special Analysis A, "Current Services Estimates."
380-000 0 - 83 - 21 : QL 3
7-4
THE BUDGET FOR FISCAL YEAR 1984
Provision of budget authority is usually a separate, subsequent
action. Generally, budget authority becomes available each year
only as voted by the Congress in appropriation acts. However, in a
number of cases the Congress has voted permanent budget authority, under which funds become available annually without further
Congressional action. Many trust fund appropriations are permanent, as are a number of Federal fund appropriations, such as the
appropriation to pay interest on the public debt.
Congressional review of the budget begins when the President
transmits his budget estimates to the Congress within 15 days after
the start of each new session in January, as required by law.
Occasionally, the transmittal date is modified by a joint resolution
of the Congress. Under the procedures established by the Congressional Budget Act of 1974, the Congress considers budget totals
before completing action on individual appropriations. The act requires each standing committee of the Congress to report on budget
estimates to the House and Senate Budget Committees by March
15. It also requires the Congressional Budget Office to submit a
fiscal policy report to the two budget committees. The Congress
adopts the first concurrent budget resolution to guide the Congress
in its subsequent consideration of appropriations and revenue
measures. The first budget resolution, which is scheduled to be
adopted by May 15, sets targets for total receipts and for budget
authority and outlays, in total and by functional category. For the
past three years, the Congress has enacted omnibus reconciliation
legislation that reduced budget authority and outlays or increased
revenues in response to directives in the concurrent budget resolution.
Congressional consideration of requests for appropriations and
for changes in revenue laws occurs first in the House of Representatives. The Appropriations Committee, through its subcommittees, studies the proposals for appropriations and examines in
detail each agency's performance. The Ways and Means Committee
reviews proposed revenue measures. Each committee then recommends the action to be taken by the House of Representatives.
When the appropriation and tax bills are approved by the House,
they are forwarded to the Senate, where a similar review process is
followed. In case of disagreement between the two Houses of the
Congress, a conference committee (consisting of Members of both
bodies) meets to resolve the differences. The report of the conference committee is returned to both Houses for approval. When the
measure is agreed to, first in the House and then in the Senate, it
is ready to be transmitted to the President as an enrolled bill, for
his approval or veto.
The Congressional Budget Act also calls for the Congress to
adopt a second concurrent budget resolution by September 15. In
THE BUDGET SYSTEM AND CONCEPTS
7-5
1981, however, the second resolution simply endorsed the totals in
the first resolution. In 1982, the first resolution provided that its
amounts would remain in effect if Congress did not pass a second
resolution. The September 15 target was originally set in anticipation of the enactment of all regular appropriations bills by that
time.
After the second budget resolution is adopted, the Congressional
Budget Act provides that Congress may not consider any spending
or revenue legislation that would breach the totals specified in this
resolution. The Congress may, however, adopt a new budget resolution changing the levels previously set or waive the requirement
not to exceed the resolution totals.
If action on appropriations is not completed by the beginning of
the fiscal year, the Congress enacts a continuing resolution to
provide authority for the affected agencies to continue operations
up to a specified date or until their regular appropriations are
enacted.
Budget execution and control—Once approved, the President's
budget, as modified by the Congress, becomes the basis for the
financial plan for the operations of each agency during the fiscal
year. Under the law, most budget authority and other budgetary
resources are made available to the agencies of the executive
branch through an apportionment system. The Director of OMB
apportions (distributes) appropriations and other budgetary resources to each agency by time periods or by activities, to ensure
the effective use of available resources and to preclude the need for
additional appropriations.
Changes in laws or other factors may indicate the need for
additional appropriations during the year, and supplemental requests may have to be sent to the Congress. On the other hand,
reserves may be established under certain circumstances to provide
for contingencies or to effect savings made possible by changes in
requirements or greater efficiency of operations. Amounts may also
be withheld from obligation for policy or for other reasons. The
Impoundment Control Act of 1974 provides that the executive
branch, in regulating the rate of spending, must report to the
Congress any deferrals or proposed rescissions of budget authority;
that is, any effort through administrative action to postpone or
eliminate spending provided by law.
COVERAGE OF THE BUDGET TOTALS
Agencies and programs.—The budget totals cover agencies and
programs (including Government corporations) no matter how
funded, except for the following off-budget Federal entities:
Rural electrification and telephone revolving fund
7-6
THE BUDGET FOR FISCAL YEAR 1984
Rural Telephone Bank
Board of Governors of the Federal Reserve System
SPR Petroleum Account
Federal Financing Bank
Postal Service fund
United States Railway Association 2
United States Synthetic Fuels Corporation3
The off-budget Federal entities listed above are discussed in Part
6 of the Budget. Schedules and financial statements are presented
in Part IV of the Budget Appendix. Except for the Federal Reserve
Board, these data are also presented in selected tables throughout
the budget documents.
The budget totals do not include transactions of privately owned,
Government-sponsored enterprises, such as the Federal land banks
and Federal home loan banks. However, these enterprises are discussed in Part 6 of the Budget, and financial statements are presented in Part VI of the Budget Appendix.
Functional classification.*—The functional classification arrays
budgetary data according to the major purpose served by the unit
being classified. In accordance with the Congressional Budget Act
of 1974, the Congress must pass resolutions establishing budget
targets by these functional categories.
The following criteria are used in establishing and in assigning
activities to functional categories:
• A function must have a common end or ultimate purpose
addressed to an important national need. (The emphasis is on
what the Federal Government seeks to accomplish rather
than the means of accomplishment, what is purchased, or the
clientele or geographic area served.)
• A function must be of continuing national importance and the
amounts attributable must be significant.
• Each basic unit of classification (generally the appropriation
or fund account) is classified into the single best or predominant purpose and assigned to only one subfunction. However,
when an account is large and serves more than one major
purpose, it may be subdivided into two or more subfunctions.
• Activities and programs are normally classified by common
purpose (or function) regardless of which agencies conduct the
activities.
2
Amounts made available for investments in Conrail securities, which comprise almost all of the Association's
activity after 1977, are included in the budget totals.
3
Cash requirements of the Corporation are met by borrowing from the Secretary of the Treasury. Such
borrowing is financed by appropriations to the Secretary, and thus is reflected as budget authority and outlays
within the budget totals.
4
A complete discussion of this subject is also found in Part 5 of this volume.
THE BUDGET SYSTEM AND CONCEPTS
7-7
National needs presentation.— Section 601 of the Congressional
Budget Act of 1974 requires that the budget for each fiscal year
shall contain a presentation of budget authority, proposed budget
authority, outlays, proposed outlays, and descriptive information in
terms of—
(1) a detailed structure of national needs, which shall be used
to reference all agency missions and programs;
(2) agency missions; and
(3) basic programs.
To meet that requirement of law, the functional classification
was refined to focus more sharply on end purposes and accomplishments. Each major function is described in the context of national
needs being served, and subfunctions are described in the context
of major missions devoted to serving national needs. The national
needs presentation can be found in Part 5 ("Meeting National
Needs: the Federal Program by Function").
Types of funds.—Agency activities are financed through Federal
funds and trust funds.
Federal funds are of several types. The general fund is credited
with receipts not earmarked by law for a specific purpose and with
the proceeds of general borrowing. It is charged with payments
from appropriations. Special funds contain Federal receipts earmarked for specific purposes, other than for carrying out a cycle of
operations. Public enterprise (revolving) funds finance a cycle of
business-type operations in which outlays generate collections, primarily from the public. Intragovernmental funds, including revolving and management funds, finance operations within and between
Government agencies and are credited with collections from other
Government accounts. Intragovernmental revolving funds are credited with collections earmarked by law to carry out a cycle of
business-type operations within and between Government agencies.
Trust funds are established to account for the receipt and expenditure of monies by the Government for carrying out specific
purposes and programs in accordance with the terms of a statute
or trust agreement. These monies are not available for the general
purposes of the Government. Trust revolving funds are credited
with trust-type collections earmarked by law to carry out a cycle of
business-type operations.
Current expense and capital investment—The budget includes
spending for both current operating expenses and capital investment, such as the purchase of lands, structures, and equipment. It
7-8
THE BUDGET FOR FISCAL YEAR 1984
also includes capital investment in the form of lehding and the
purchase of investments.5
BUDGET AUTHORITY AND RELATED TRANSACTIONS
Budget authority.—Government agencies—whether or not they
are included in the budget totals—are permitted to enter into
obligations requiring either immediate or future payment of money
only when they have been granted authority to do so by law. This
authority is usually provided as budget authority. Collections specifically authorized to be credited to appropriation and fund accounts, while not scored as budget authority, are also available for
obligation.
Budget authority permits obligations to be incurred. The
amounts of budget authority requested are determined by the
nature of the programs or projects being financed and the amount
of other resources available for the purpose.
For activities such as operations and maintenance, entitlement
programs, and continuing research programs, for which the cost
depends upon the program level planned for a fiscal year, the
amount of budget authority requested covers the obligations expected to be incurred during the year.
For most projects that are separate and distinct units, particularly direct Federal major procurement and construction projects,
"full funding" is requested. That is, budget authority is requested
in sufficient amounts at the time the project is initiated to complete it, regardless of the expected time of completion.
Budget authority usually takes the form of appropriations, which
permit obligations to be incurred and payments to be made. Some
budget authority is in the form of contract authority, which permits
obligations in advance of appropriations but requires a subsequent
appropriation or the collection of revenues to liquidate (pay) these
obligations. There is also authority to borrow; such budget authority permits obligations to be incurred and liquidated by using funds
that are borrowed, generally from the Treasury.
It is not in order for either House of the Congress to consider any
bill, with certain exceptions, that provides new borrowing or contract authority unless that bill also provides that such new spending authority will be effective only to the extent or in such
amounts as provided in appropriations acts.
Most appropriations for current operations are made available
for obligation only during a specified fiscal year (annual appropriations). Some are for a specified longer period (multiple-year appropriations). Others, including most of those for construction, some
5
Federal budgeting for capital purposes is discussed in Part 6 of this volume and additional information on
these categories of outlays is provided in Special Analysis D, "Investment, Operating and Other Federal
Outlays."
THE BUDGET SYSTEM AND CONCEPTS
7-9
for research, and many trust fund appropriations, are made available for obligation until the amount appropriated has been expended or until the objectives have been attained (no-year appropriations).
Budget authority can be made available by the Congress for
obligation and disbursement during a fiscal year from a succeeding
year's appropriation (advance funding). For many education programs, Congress provides forward funding—budget authority made
available for obligation in one fiscal year for the financing of
ongoing grant programs during the succeeding fiscal year. When
advantageous to the Federal Government, an appropriation is provided by the Congress for use in a fiscal year, or more, beyond the
fiscal year for which the appropriation act is passed (advance appropriations). Accounts in which budget authority is made available on these bases are listed in Part V of the Budget Appendix.
When budget authority is made available by the Congress for a
specific period of time, any part that is not obligated during that
period expires and cannot be used later. Congressional actions that
continue the availability of unobligated amounts that have expired
or would otherwise expire are known as reappropriations. The
amounts involved are counted as new budget authority in the fiscal
year of the legislation in which the reappropriation action is included, regardless of when the amounts were originally appropriated or when they would otherwise lapse.
A rescission is a legislative action that cancels new budget authority or unobligated balances previously available, prior to the
time the authority would otherwise have expired. Rescissions are
offset against new budget authority becoming available in arriving
at the total of budget authority for each year. A deferral is an
executive branch action or inaction—including the establishment
of reserves under the Antideficiency Act—that delays the obligation and expenditure of funds within the year that the action is
taken. Deferrals are not separately identified in the budget.
Most authority to obligate funds is enacted by the Congress
during or immediately preceding the fiscal year in which it becomes available (current authority). Most current authority is
granted year by year. Some budget authority in Federal funds and
most budget authority in trust funds becomes available as the
result of previously enacted legislation and does not require current action by the Congress (permanent authority). Such authority
is presented as "current" in the year in which the legislation is
enacted and "permanent" in succeeding years.
The amount of budget authority is usually stated specifically or
in an amount stated as "not to exceed" a specific aggregate sum in
the legislation that makes it available (definite authority). In some
cases the legislation permits the amount to be determined by sub-
7-10
THE BUDGET FOR FISCAL YEAR 1984
sequent circumstances (indefinite authority). Examples of the latter
type are authority to borrow that is limited only to the amount of
borrowing that may be outstanding at any time, the appropriation
for interest on the public debt, and the trust fund appropriation
equal to receipts under the Federal Insurance Contributions Act
(social security). Indefinite budget authority is recorded in the
amount of receipts collected or estimated to be collected each year
in the case of special and trust funds, and in the amount needed to
finance obligations incurred or estimated to be incurred in the case
of certain appropriations, contract authority, and authority to
borrow.
Obligations incurred.—Following the enactment of budget authority and the completion of required apportionment action, obligations are incurred by Government agencies. Such obligations
include the current liabilities for salaries, wages, and interest;
agreements to make loans; contracts for the purchase of supplies
and equipment, construction, and the acquisition of land; and other
arrangements requiring the payment of money.
Outlays.—Obligations generally are liquidated by the issuance of
checks or the disbursement of cash; such payments are called
outlays. In lieu of issuing checks, obligations may also be liquidated
(and outlays recorded) by the accrual of interest on Treasury debt
securities held by the public; or by the issuance of bonds, debentures, or notes (or by increases in the redemption value of bonds or
debentures outstanding). Payments for tax credits in excess of tax
liabilities are treated as outlays rather than as an adjustment to
budget receipts. Outlays during a fiscal year may be for payment of
obligations incurred in prior years or in the same year. Outlays,
therefore, flow in part from unexpended balances of prior year
budget authority and in part from budget authority provided for
the year in which the money is spent. Total budget outlays are
stated net of offsetting collections and exclude outlays of off-budget
Federal entities.
Balances of authority.6—Not all budget authority enacted for a
fiscal year is obligated and paid out in the same year. In multipleyear or no-year accounts, budget authority that is still available for
obligation (unobligated balances) may be carried forward for obligation in the following year. The obligated balance is that portion of
the budget authority that has been obligated but not yet liquidated
(paid). For example, in the case of salaries and wages, 1 to 3 weeks
elapse between the time of obligation and the time of payment. In
the case of major procurement and construction, payment may
8
These balances may also include collections credited directly to appropriation or fund accounts.
THE BUDGET SYSTEM AND CONCEPTS
7-11
occur over several years. Obligated balances of budget authority
are carried forward until the obligations are subsequently paid.7
Therefore, a change in the amount of budget authority for a
given year does not necessarily result in a similar change in either
the obligations incurred or the budget outlays of that same year. A
change in budget authority in any one year may have an effect on
obligations for 2 or more years, and may affect budget outlays for
an even longer period.
Allocations between agencies.—In some cases, an agency may
share in the administration of a program for which appropriations
are made to another agency or to the President. This is made
possible by the establishment of allocations from the "parent" account, that is, the account to which the appropriation was made.
Obligations incurred under such allocations are included with the
parent account in the Budget (without separate identification) and
in the Budget Appendix (where the total obligations of each participating agency are identified separately under the parent account).
THE CREDIT BUDGET8
The credit budget is a presentation of direct loan obligations and
guaranteed loan commitments that provides a framework for
making planning and policy decisions on the amount of Federal
credit to be extended. It also provides a means to analyze, evaluate,
and control Federal credit activity. Development of the credit
budget is integrated thoroughly with the executive budget process.
The credit budget totals and the limitations on credit activity
proposed for enactment in appropriations language are transmitted
to the Congress as part of the President's budget.
Concepts used in the credit budget—The credit budget totals are
presented in two parts: total direct loan obligations and total guaranteed loan commitments. These totals are based on the following
concepts:
• All direct loan and guaranteed loan activities of the Government are included. The credit budget makes no distinction
between on-budget and off-budget Federal entities.
• The credit budget totals represent gross levels of credit activity, without offsets for repayments and other recoveries. By
excluding recoveries, the credit budget measures the current
level of program activity and enables control to be based on a
7
Additional information on balances of budget authority is provided in a separate report, "Balances of Budget
Authority," which is available from the National Technical Information Service, Department of Commerce,
shortly after the budget is transmitted.
9
The credit budget is shown by function in Part 5 and guaranteed loans are discussed in Part 6 of this
volume. Credit schedules and proposed credit limitations in appropriations language are included in the Budget
Appendix. Additional information is provided in Special Analysis F, "Federal Credit Programs."
7-12
THE BUDGET FOR FISCAL YEAR 1984
measure over which the Government has discretion—new extensions of credit.
• The credit budget is based on the amount of obligations incurred for direct loans and the amount of commitments for
guaranteed loans. Obligations for direct loans result from
agreements requiring the Government to disburse a loan immediately or at some future time. Commitments for guaranteed loans are agreements entered into by the Government to
guarantee the repayment of outstanding principal and/or interest. Since guaranteed loan commitments, unlike direct loan
obligations, do not require budget authority and do not require disbursements, the amounts are not included in the
President's budget totals. They create Government liabilities
of a contingent nature that generally result in obligations and
outlays only in the event of a borrower default. Direct loan
obligations and guaranteed loan commitments represent
points at which control can most logically be exercised.
• The amount of guaranteed loans presented in the budget is
calculated on the basis of the full principal amount of the
loan involved, even though the guaranteed loan may extend
to only a portion of the principal. This is done in order to
represent the full amount of credit allocated to a particular
purpose through a Federal lending program.
Limits on Federal credit programs.—Separate limitations on the
amount of new direct loan obligations and commitments for guaranteed loans are proposed for enactment in the appropriations
language for the accounts that support credit activities. These limitations, if enacted, place annual ceilings on credit programs that,
in most cases, are otherwise relatively unlimited.
Appropriation bill limitations are proposed for about two-thirds
of the credit budget totals. Exemptions are primarily for entitlements, emergency and disaster programs. These programs can be
controlled, however, through changes in authorizing legislation.
Since initiation of the credit budget, Congress has voted nonbinding targets in the concurrent budget resolutions for total direct
loan obligations and total guaranteed loan commitments. Actual
control of credit program levels, however, remains with authorizing
legislation and appropriations acts.
COLLECTIONS
In general—Amounts collected by the Government are classified
into two major categories:
• Budget receipts, which are compared with budget outlays in
calculating the budget surplus or deficit.
THE BUDGET SYSTEM AND CONCEPTS
7-13
• Offsetting collections, which are deducted from gross disbursements in calculating budget outlays.
Budget receipts.—These are collections from the public that
result from the exercise of the Government's sovereign or governmental powers. These collections, also called governmental receipts,
consist primarily of tax receipts (including social insurance taxes),
but also include receipts from court fines, certain licenses, and
deposits of earnings by the Federal Reserve System. Gifts and
contributions (as distinguished from payments for services or costsharing deposits by State and local governments) are also counted
as budget receipts.
Offsetting collections.—These are collections from other Government accounts or the public that are of a business-type or marketoriented nature. They are classified into two major categories: offsetting collections credited to appropriation or fund accounts and
offsetting receipts (that is, amounts deposited in receipt accounts).
In general, the distinction between these two major categories is
that collections credited to appropriation or fund accounts can be
used, generally, without further action by the Congress, whereas
amounts in receipt accounts cannot be used without being appropriated.
Offsetting collections are credited to appropriation or fund accounts in two circumstances:
• Reimbursements.—When authorized by law, amounts collected
in advance or after materials or services are furnished (for
example, advances received from the public to pay expenses of
providing information under the Freedom of Information Act)
are treated as reimbursements to appropriations. These collections are netted against obligations in determining outlays
from such appropriations.
• Revolving funds.—In the three types of revolving funds—
public enterprise, intragovernmental, and trust revolving—
collections are netted against obligations, and outlays are determined accordingly.
Offsetting receipts, generally, are deducted from budget authority
and outlays by function or subfunction and by agency. Offsetting
receipts are subdivided into two categories, as follows:
• Proprietary receipts from the public.—These are collections
from the public—deposited in receipt accounts of the general
fund, special funds, or trust funds—that arise out of the business-type or market-oriented activities of the Government (for
example, loan repayments, interest, sale of property and products, charges for nonregulatory services, and rents and royalties). Such collections are not counted as budget receipts but,
rather, are offset against budget authority and outlays by
7-14
THE BUDGET FOR FISCAL YEAR 1984
agency and by function. However, in two cases—receipts from
rents and royalties from Outer Continental Shelf lands and
receipts from the sale of Federal surplus real property used to
retire public debt—the deduction is from total budget authority and outlays for the Government as a whole rather than
from any single agency or function.
• Intragovernmental transactions.—These are payments into receipt accounts from governmental appropriation or fund accounts. They are treated as offsets to budget authority and
outlays, rather than as budget receipts. Intragovernmental
transactions may be intrabudgetary (where the payment and
receipt both occur within the budgetary universe) or result
from receipts from off-budget Federal entities in those cases
where the payment is made by a Federal entity whose budget
authority and outlays are excluded from the budget totals.
Intragovernmental transactions are deducted from both the
outlays and the budget authority for the agency receiving the
payment, with two exceptions. Intragovernmental transactions that involve agencies' payments (including payments by
off-budget Federal entities) as employers into employee retirement trust funds and interest received by trust funds appear
as special deduct lines in computing total budget authority
and outlays for the Government.
Intrabudgetary transactions are subdivided into three categories: (1) interfund transactions, where the payment is from
one fund group (either Federal funds or trust funds) to a
receipt account in the other fund group; (2) Federal intrafund
transactions, where the payment and receipt both occur
within the Federal fund group; and (3) trust intrafund transactions, where the payment and receipt both occur within the
trust fund group.
OTHER TRANSACTIONS
Borrowing and repayments.—Borrowing and debt repayments are
not treated as receipts or outlays. If they were, the budget could be
balanced simply by borrowing. This rule applies both to borrowing
in the form of public debt securities and to specialized borrowing in
the form of agency securities, including the sale of certificates
representing participation in a pool of loans. However, some sales
of participation certificates, which otherwise would be treated as
borrowing, are required by law to be treated as a sale of assets.
This results in the proceeds of such sales being credited to an
appropriation or fund account with a corresponding reduction in
outlays and in the requirement for new budget authority.
THE BUDGET SYSTEM AND CONCEPTS
7-15
Exercise of the monetary power.—Seigniorage is the profit from
coining money. It is the difference between the value of coins as
money and their cost of production. Seigniorage on coins arises
from the exercise of the Government's monetary powers and differs
from receipts coming from the public, since there is no corresponding payment by another party. Therefore, seigniorage is excluded
from receipts and treated as a means of financing a deficit or as a
supplementary amount to be applied to reduce debt or to increase
the cash in the Treasury in a year with a surplus. The increment
(profit) resulting from the sale of gold as a monetary asset is
treated like seigniorage, since the value of gold is determined by its
value as a monetary asset rather than as a commodity.
Liabilities in deposit fund accounts.—Certain accounts outside
the budget, known as deposit funds, are established to record
amounts held in suspense temporarily (for example, proceeds from
mineral leases on the Outer Continental Shelf to which title is in
dispute) or held by the Government as agent for others (for example, State and local income taxes withheld from Federal employees'
salaries and payroll deductions for the purchase of savings bonds
by civilian employees of the Government). To the extent that transactions are conducted with nongovernment entities, Treasury's
cash balances are affected, even though they are not a part of the
budget. To the extent that deposit fund balances are not invested,
changes in the amounts are treated as a means of financing.
Exchange of cash.—The Government's deposits with the International Monetary Fund are considered to be similar to cash assets.
Therefore, the movement of money between the IMF and the Department of the Treasury is not considered in itself a receipt or an
outlay, borrowing or lending. In a similar manner, the holdings of
foreign currency by the Exchange Stabilization Fund are considered to be cash assets. Changes in these holdings are outlays only
to the extent there is a realized loss and offsetting collections only
to the extent there is a realized profit on the exchange.
BASIS FOR BUDGET FIGURES
In general.—Outlays usually are stated in terms of checks issued,
including cash paid in lieu of checks, net of offsetting collections
received. The accrual basis is used generally for interest on the
public debt held by private investors; however, interest on the
public debt held by trust and other Government accounts is stated
on a cash basis. When debt securities are issued at a discount (or at
a premium), the difference between the sales price and the redemption value is treated as interest and is accrued evenly over time in
the account that issued the securities.
7-16
THE BUDGET FOR FISCAL YEAR 1984
Data for 1982.—The 1982 column of this budget generally presents the actual transactions and balances as recorded in agency
accounts and as summarized in the central financial reports prepared by the Department of the Treasury.
Data for 1983.—Many of the regular appropriations acts for 1983
have been enacted. However, funding for activities covered by six
appropriations bills (Labor, Health and Human Services, and Education and related agencies; Commerce, Justice, and State, the
Judiciary, and related agencies; Treasury, Postal Service and General Government; Foreign Assistance and related programs; Energy
and Water Development; and Department of Defense) was provided
in a continuing resolution that is effective through September 30,
1983. Supplemental appropriations are proposed in the 1984 budget
for various civilian agency pay raises, principally those of October
1982, and for additional amounts requested to meet unforseen program requirements.
Where the word "enacted" is used with reference to 1983 as in
tables 1 and 5 of Part 9 of the Budget, the amount generally
represents budget authority already voted by the Congress. For the
budget accounts covered by the final 1983 continuing resolution,
the amount is based on the full year effect of appropriations made
available. In the case of indefinite appropriations, the enacted
sums include the amounts likely to be required. Where the word
"estimate" is used, the amounts include enacted budget authority
and requested supplementals.
Data for 1984.—This budget includes complete estimates for
1984. Part I of the Budget Appendix generally includes the proposed appropriation language for the various items identified in
the budget. In some instances, estimates are included in the budget
schedules without appropriation language for 1983 and 1984. For
these, proposed legislation may be required or the estimated
amounts will be requested later when the requirements are known.
In certain tables of the budget, the items for later transmittal and
the related outlays are separately identified. Estimates of the total
requirements for 1983 and 1984 include both the amounts formally
requested and the amounts planned for later transmittal.
Data for 1985 through 1988.—To place emphasis on longer term
objectives and plans consistent with the multi-year budget planning system, this budget presents estimates through 1988. These
data often reflect specific Presidential policy determinations and
are shown in a number of budget tables.
Allowances.—Lump sum allowances are included in the tables to
cover expected additional changes.
THE BUDGET SYSTEM AND CONCEPTS
7-17
There are no allowances for civilian or military pay raises for
1984. For 1985 through 1988, allowances are included for pay raises
for the civilian agencies. Separate allowances for pay raises, for
1985-1988, are shown for civilian and military personnel of the
Department of Defense and for military personnel of the Coast
Guard and are included in the figures for the Departments of
Defense and Transportation, respectively.
An allowance for relatively uncontrollable programs is shown
separately, as required by the Congressional Budget Act. The estimates for such programs are zero because the probability of net
decreases or net increases for such programs is believed to be
equal. Another allowance entitled, "Increased employing agency
payments for employee retirement," contains an estimate of the
cost of increasing the employer share of contributions to the civil
service retirement trust fund.
Budget authority and outlays included in the allowance section
are never appropriated as undistributed allowances, but rather
indicate the estimated budget authority and outlays that may be
requested.
PART 8
THE FEDERAL PROGRAM
BY AGENCY AND ACCOUNT
380-000 0 - 83 - 22 : QL 3
EXPLANATORY NOTE
This tabulation contains information on budget authority (BA) and outlays (O) for each appropriation and fund
account. The budget authority in this tabulation takes account of certain transfers between appropriations. All
budget authority items are definite appropriations except
where otherwise indicated. Also, budget authority and
outlay data for off-budget Federal entities are presented at
the end of this table. Within the Federal Financing Bank
(FFB) presentation, there is a distribution of its budget
authority and outlays to the accounts in the various agencies that are provided credit services by the FFB.
Functional code numbers are shown for each account as
a cross reference to table 14, where the figures are summarized by functional classification. Types of funds in the
budget and the deduct entries at the end of each chapter
of this tabulation are explained in Part 7.
Congressional action in the appropriation process occasionally takes the form of a limitation on the use of a trust
fund or other fund, or of an appropriation to liquidate
contract authority. Amounts for such items, which do not
affect budget authority, are included here in parentheses
and identified in the stub column, but are not included in
the totals.
8-2
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-3
BUDGET ACCOUNTS LISTING (in thousands of dollars)
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch
Senate
Federal funds
General and Special Funds:
Compensation of Members, Senate
Appropriation, current
Appropriation, permanent, indefinite
Outlays
801
Total Compensation of Members, Senate
Mileage of the Vice President and Senators
801
Appropriation, current
Outlays
Expense allowances of the Vice President, President
Pro Tempore, Majority and Minority Leaders and
Majority and Minority Whips
801
Appropriation, current
Outlays
Salaries, officers and employees
801
Appropriation, current
Outlays
Total Salaries, officers and employees
BA
BA
0
6,932
6,790
8,431
8,431
8,793
8,793
BA
0
6,932
6,790
8,431
8,431
8,793
8,793
60
60
60
60
45
45
45
45
BA
0
BA
0
;
45
35
BA
140,116
0
BA
0
Office of the Legislative Counsel of the Senate 801
Appropriation, current
BA
128,819
144,792
D
6,989
151,781
160,763
140,116
128,819
151,781
151,781
160,763
160,763
1,087
1,155
160,763
1,314
z> 47
Outlays
0
944
1,202
1,314
1,087
944
1,202
1,202
1,314
1,314
• BA
508
508
555
0
335
520
555
BA
0
508
335
520
520
555
555
BA
0
8
6
8
8
BA
0
5
5
Total Office of the Legislative Counsel of the
Senate
BA
0
Office of Senate Legal Counsel
Appropriation, current
801
Outlays
Total Office of Senate Legal Counsel
Expense allowance for the Secretary of the Senate,
Sergeant at Arms, and Doorkeeper of the Senate
and secretaries for the majority and
801
Appropriation, current
Outlays
Senate procedure
801
Appropriation, current
Outlays
See footnotes at end of table.
8
8
8-4
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Legislative Branch—Con.
Senate—Con.
Senate policy committees
Appropriation, current
801
Outlays
Total Senate policy committees
Automobiles and maintenance
Appropriation, current
Outlays
Inquiries and investigations
Appropriation, current
0
1,715
1,592
1,634
^78
1,712
BA
0
1,634
• 1,592
1,712
1,712
1,715
1,715
BA
0
75
70
90
90
90
BA
43,200
45,698
0
39,803
43,199
D
1,764
44,963
BA
0
43,200
39,803
44,963
44,963
45,698
45,698
45,698
BA
0
134
121
51
BA
32,734
0
33,887
BA
0
1,715
90
801
Total Inquiries and investigations
801
801
Outlays..
Total Miscellaneous items
Postage stamps
Appropriation, current
Outlays
Stationery (revolving fund)
Appropriation, current
Outlays
Congressional use of foreign currency, Senate
Appropriation, permanent
Outlays
1,634
801
Outlays..
Folding documents
Appropriation, current
Outlays
Miscellaneous items
Appropriation, current
BA
37,900
M65
37,900
M65
40,981
32,734
33,887
38,065
38,065
40,981
40,981
BA
O
9
9
11
11
11
11
BA
0
43
60
131
131
39
39
BA
0
500
571
0
329
0
-137
247,019
247,070
260,072
260,072
40,981
801
801
801
Public Enterprise Funds:
Senate restaurant fund (revolving fund)
Outlays
Recording studio (revolving fund)
Outlays
Senate barber shops (revolving fund)
Outlays
Total Federal funds Senate
See footnotes at end of table.
801
801
801
0
BA
O
- 1 0 ..
227,030
213,229
8-5
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
House of Representatives
Federal funds
General and Special Funds:
Payments to widows and heirs of deceased members
of Congress
801
Appropriation, current
Outlays
Compensation of Members and related administrative
expenses
801
Appropriation, current
Appropriation, permanent
Outlays
BA
0
121
121
BA
BA
0
29,382
29,000
33,155
33,155
34,100
34,100
29,382
29,000
33,155
33,155
34,100
34,100
BA
0
210
112
210
202
210
210
BA
2,705
2,915
0
2,423
2,726
^167
2,784
BA
0
2,705
2,423
2,893
2,784
2,915
2,907
BA
40,897
44,639
Total Compensation of Members and related administrative expenses
BA
0
Mileage of Members
Appropriation, current
Outlays
House leadership offices
Appropriation, current
801
801
Outlays..
Total House leadership offices
Salaries, officers and employees
Appropriation, current
61
61
2,907
801
0
39,305
41,959
1,753
42,034
BA
0
40,897
39,305
43,712
42,034
44,639
44,531
BA
31,005
34,734
0
30,540
32,035
1,674
32,428
BA
0
31,005
30,540
33,709
32,428
34,734
34,625
BA
0
3,701
3,408
3,750
3,600
3,700
3,700
BA
O
218
213
276
265
299
298
D
Outlays
Total Salaries, officers and employees
Committee employees
Appropriation, current
801
Outlays
Total Committee employees
Committee on Appropriations (Studies and Investigations)
801
Appropriation, current
Outlays
Committee on the Budget (Studies)
801
Appropriation, current
Outlays
See footnotes at end of table.
44,531
D
34,625
8-6
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
House of Representatives—Con.
Members' clerk hire
Appropriation, current
801
Outlays
Total Members' clerk hire
Allowances and expenses
Appropriation, current
BA
143,890
0
BA
0
143,868
143,890
143,868
BA
86,122
0
89,462
BA
0
86,122
89,462
143,953
D
5,966
147,040
149,919
147,040
150,233
150,107
150,233
150,107
801
Outlays
Total Allowances and expenses
Stationery (revolving fund)
801
Outlays
0
Special and select committees
801
Appropriation, current
BA
Outlays
0
Congressional use of foreign currency, House of Representatives
801
Appropriation, permanent
BA
Outlays
0
588
42,135
35,613
81,866
11,946
D
3,360
81,951
^ 11,946
103,392
97,172
93,897
103,392
102,531
-262
-262
A
42,000
40,000
102,531
44,000
44,000
1,900
1,210
1,500
1,500
1,500
1,500
135
255
255
-751
167
167
-10
10
10
4
—4
—4
-1
-1
Public Enterprise Funds:
House of Representatives restaurant fund (revolving
fund)
801
Outlays
0
Recording studio (revolving fund)
801
Outlays
0
Beauty shop (revolving fund)
801
Outlays
0
House barber shops (revolving fund)
801
Outlays
0
Office of the attending physician (revolving fund)
801
Outlays
0
Total Federal funds House of Representatives
BA
0
382,286
375,241
408,357
397,131
419,722
418,674
BA
2,305
2,487
0
2,127
2,327
^60
2,387
BA
0
2,305
2,127
2,387
2,387
2,487
2,487
Joint Items
Federal funds
General and Special Funds:
Joint Economic Committee
Appropriation, current
Outlays
Total Joint Economic Committee
See footnotes at end of table.
801
2,487
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-7
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
Joint Items—Con.
Joint Committee on Printing
Appropriation, current
801
Outlays
Total Joint Committee on Printing
Statements of appropriations, Senate
Appropriation, current
Outlays
Joint Committee on Taxation
Appropriation, current
Total Office of the Attending Physician
See footnotes at end of table.
767
855
855
BA
0
816
767
855
855
855
855
BA
0
6
6
6
6
6
3,395
3,395
3,392
BA
3,136
0
2,569
3,233
D
144
3,248
BA
0
3,136
2,569
3,377
3,248
BA
603
0
577
BA
0
3,392
633
A
Z
608
A
_3
646
603
577
636
611
646
645
BA
0
887
919
945
907
1,612
1,586
BA
0
628
288
305
305
213
213
BA
255
295
0
226
271
z>22
282
BA
0
255
226
293
282
295
295
645
801
801
Total Education of pages
Total Official mail costs
0
801
Outlays
Outlays
855
801
Outlays
Official mail costs
Appropriation, current
816
801
Total Joint Committee on Taxation
General expenses, Capitol police
Appropriation, current
Outlays
Capitol Police Board
Appropriation, current ,
Outlays
Education of pages
Appropriation, current
816
801
Outlays
Office of the Attending Physician
Appropriation, current
BA
295
801
BA
75,095
0
96,990
BA
0
75,095
96,990
55,196
25,042
55,196
A
25,042
A
80,238
80,238
107,077
102,794
107,077
102,794
8-8
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
Joint Items—Con.
Capitol Guide Service
801
Appropriation, current
BA
Outlays
0
BA
0
BA
0
Totai Capitol Guide Service
Statements of appropriations, House of Representatives
801
Appropriation, current
Outlays
Total Federal funds Joint Items
BA
0
734
775
660
734
*31
765
734
660
765
765
775
775
7
7
7
7
7
775
84,472
89,814
117,368
105,123
89,611
113,055
13,226
16,751
Congressional Budget Office
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
801
BA
Outlays
Total Salaries and expenses
0
13,632
14,825
D
448
14,963
BA
13,226
15,273
16,751
0
13,632
14,963
16,390
3,897
4,829
16,390
Architect of the Capitol
Federal funds
General and Special Funds:
Office of the Architect of the Capitol: Salaries
Appropriation, current
801
BA
Outlays
Total Office of the Architect of the Capitol
Contingent expenses
Appropriation, current
Outlays
Capitol buildings
Appropriation, current
Outlays
Total Capitol buildings
0
3,755
4,301
C
26
^191
4,514
BA
3,897
4,518
4,829
0
3,755
4,514
4,775
801
BA
0
210
150
210
480
210
210
BA
10,330
11,100
8,380
9,998
C
221
°40
11,292
10,330
10,259
11,100
8,380
11,292
11,270
801
0
BA
0
See footnotes at end of table.
4,775
11,270
8-9
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
estimate
1982
actual
Account and functional code
Legislative Branch—Con.
Architect of the Capitol—Con.
Capitol grounds
Appropriation, current
801
BA
OutlaysTotal Capitol grounds
West central front of the Capitol
801
Outlays
Congressional cemetery
801
Appropriation, current
Outlays
Master plan for future development of the Capitol
grounds and related areas
801
Outlays
Acquisition of property as an addition to the Capitol
grounds
801
Appropriation, current
Outlays
Senate office buildings
801
Appropriation, current
BA
0
300
200
0
0
BA
0
11,300
BA
15,051
BA
0
BA
0
6
4,121
...
100
...
4,500
4,698 ..
12,734
20,308
^8,000
C
531
21,652
15,051
12,734
28,839
21,652
17,540
27,432
23,271
13,549
2,934
99
95
2
20,099
19,077
Acquisition of property, construction, and equipment,
additional House Office Building
801
Outlays
0
Installation of solar collectors in House office buildings
801
Outlays
0
3,199
4,121
BA
0
Outlays..
;e footnotes at end of table.
5,011
4,092
124
Construction of an extension to the New Senate Office
Building
801
Outlays
0
Senate garage
801
Appropriation, current
BA
Outlays
0
House office buildings
801
Appropriation, current
BA
Total House office buildings
2,480
2,454
0
Outlays..
Total Senate office buildings
3,199
2,454
4,921
C
87
D
Z
4,092
2,480
20,099
19,077
17,540
19,432
8,000
A
20,367
A
275
c
707
22,837
^275
22,181
21,349
23,112
22,181
20,979
20,979
79
359
1.029
...
8-10
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
Architect of the Capitol—Con.
Capitol Power Plant
Appropriation, current
801
BA
Outlays
Total Capitol Power Plant
Expansion of facilities, Capitol Power Plant
801
Outlays
Modifications and enlargement, Capitol Power
Plant
801
Outlays
Alterations and improvements, buildings and grounds,
to provide facilities for the physically handicapped
801
Outlays
Structural and mechanical care, Library buildings and
grounds
801
Appropriation, current
Outlays
0
18J92
23,100
C
138
24,906
BA
0
22,222
18,792
23,238
24,906
0
0
0
26
2,803
61
2,397
24,149
825
700
5,260
6,204
5,260
6,204
0
5,303
5,071
C
157
8,159
8,785
5,303
5,228
8,159
1,317
23,867
24,149
736
8,785
Library of Congress James Madison Memorial Building
801
Outlays
O
23,867
97
BA
Total Structural and mechanical care, Library
buildings and grounds
BA
O
Total Federal funds Architect of the Capitol
22,222
702
BA
O
83,173
109,879
103,452
121,826
88,186
103,699
BA
115,301
129,998
130,378
Library of Congress
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
503
Outlays
Total Salaries and expenses
Copyright Office: Salaries and expenses
Appropriation, current
Outlays
Total Copyright Office
See footnotes at end of table.
0
109,235
120,303
C
225
D
4,212
130,681
BA
0
115,301
109,235
124,740
130,681
129,998
130,378
BA
9,627
10,999
0
9,221
10,477
D
680
10,890
10,987
BA
0
9,627
9,221
11,157
10,890
10,999
10,987
376
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-11
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
Library of Congress—Con.
Congressional Research Service: Salaries and expenses
801
Appropriation, current
Outlays
Total Congressional Research Service
Books for the blind and physically handicapped: Salaries and expenses
503
Appropriation, current
Outlays
Total Books for the blind and physically handicapped
Collection and distribution of library materials (special
foreign currency program)
503
Appropriation, current
Outlays
Total Collection and distribution of library materials (special foreign currency program)....
Furniture and furnishings
Appropriation, current
33,851
38,950
38,673
D
0
30,876
1,689
35,174
BA
31,605
35,540
38,950
0
30,876
35,174
38,673
BA
33,221
33,384
35,691
0
29,592
32,938
33,662
BA
33,221
33,554
35,691
0
29,592
32,938
33,662
4,405
4,438
4,462
0
3,364
18
4,980
5,669
BA
D
BA
4,405
4,456
4,462
0
3,364
4,980
5,669
BA
1,089
1,226
1,657
0
2,720
1,552
1,691
376
Outlays
Oliver Wendell Holmes devise fund
Appropriation, permanent, indefinite
31,605
503
Outlays
Payments to copyright owners
Appropriation, permanent, indefinite
BA
BA
33,768
36,239
37,758
0
17,996
53,643
36,396
503
BA
Outlays
0
3
5
6
10
10
10
Trust funds
Gift and trust fund accounts
Appropriation, permanent, indefinite
Outlays
Total Federal funds Library of Congress
Total Trust funds Library of Congress
See footnotes at end of table.
503
BA
6,954
7,606
0
6,360
8,014
7,452
7,701
BA
229,019
246,917
259,521
0
203,014
269,868
257,466
BA
6,954
7,606
0
6,360
8,014
7,452
7,701
8-12
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
Government Printing Office
Federal funds
General and Special Funds:
Printing and binding
801
Appropriation, current
Outlays
Congressional printing and binding
801
Appropriation, current
Outlays
Office of Superintendent of Documents: Salaries and
expenses
806
Appropriation, current
Outlays
Acquisition of site and general plans and designs of
buildings
806
Outlays
0
4,600
Intragovernmental Funds:
Government Printing Office revolving fund
Outlays
0
BA
0
17,888
16,820
12,791
14,406
14,571
14,505
BA
0
84,843
72,920
81,747
69,698
89,537
80,153
BA
0
27,120
25,315
27,291
27,014
25,738
26,650
-28,418
-1,335
-2,237
129,851
121,829
129,846
91,237
109,783
119,071
BA
236,000
269,625
0
229,827
244,900
D
9,350
249,957
BA
236,000
254,250
269,625
0
229,827
249,957
265,248
12,471
14,000
16,871
0
11,360
^517
14,471
16,818
BA
12,471
14,517
16,871
0
11,360
14,471
16,818
187
39
205
76
225
79
806
Total Federal funds Government Printing Office...
BA
0
General Accounting Office
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
801
Outlays
Total Salaries and expenses
265,248
United States Tax Court
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
BA
Outlays
Total Salaries and expenses
Trust funds
Tax Court judges survivors annuity fund
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
602
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-13
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
Other Legislative Branch Agencies
Federal funds
General and Special Funds:
Commission on Security and Cooperation in Europe:
Salaries and expenses
801
Appropriation, current
BA
Outlays
0
Botanic Garden-. Salaries and expenses
801
Appropriation, current
BA
404
472
550
552
550
630
2,351
2,043
0
1,801
1,827
c
70
2,383
BA
0
2,351
1,801
1,897
2,383
2,043
2,029
Appropriation, current
BA
487
480
Outlays
0
470
449
35
470
BA
0
487
470
484
470
480
478
Outlays
Total Botanic Garden
2,029
Copyright Royalty Tribunal: Salaries and expenses
376
Total Copyright Royalty Tribunal
Cost-Accounting Standards Board: Salaries and expenses
801
Outlays
0
Temporary Commission on Financial Oversight of the
District of Columbia: Salaries and expenses
801
Outlays
0
Office of Technology Assessment: Salaries and expenses
801
Appropriation, current
BA
D
478
1
-229
12,169
6
12,575
14,600
°346
Outlays
0
11,394
13,688
14,810
BA
0
12,169
11,394
12,921
13,688
14,600
14,810
Trust funds
Office of Technology Assessment: Contributions and
donations
801
Appropriation, permanent, indefinite
BA
Outlays.
0
2
2
2
2
3
3
Total Federal funds Other Legislative Branch
Agencies
BA
0
15,411
13,909
15,852
17,099
17,673
17,947
Total Trust funds Other Legislative Branch Agencies
BA
0
2
2
2
2
3
3
Total Office of Technology Assessment
See footnotes at end of table.
8-14
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Legislative Branch—Con.
Summary
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Intrafund transactions
803
Proprietary receipts from the public
f
503
Total Federal funds
Trust funds:
(As shown in detail above)
—HOD
—4oU
-524
-2,844
-2,964
—bZo
—bZo
QA
-3,893
-3,616
BA
1,407,337
1,509,807
1,587,986
0
1,360,849
1,524,306
1,580,791
503
7,143
6,401
7,813
8,092
-3,677
7,680
7,783
BA
t\
908
— b Do
—bcif
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public
1,595,635
1,588,440
BA
«
801
1,517,280
1,531,779
BA
Q
908
1,412,939
1,366,451
BA
Q
Total Trust funds
BA
Total Legislative Branch
0
BA
0
— 4/ DOo
— O, U/L1
— O, / T O
-221
-322
-145
2,383
2,470
2,287
2,749
1,512,277
1,527,055
2,390
1,590,273
1,583,181
13,678
1,641
1,409,720
1,362,490
The Judiciary
Supreme Court of the United States
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
Outlays
Total Salaries and expenses
Care of the building and grounds
Appropriation, current
Outlays
Total Care of the building and grounds
See footnotes at end of table.
BA
11,635
0
11,702
12,675
D
480
12,593
BA
0
11,635
11,702
13,155
12,593
13,678
13,178
1,971
1,971
1,952
13,178
752
BA
1,654
0
1,759
2,000
C
36
2,805
BA
0
1,654
1,759
2,036
2,805
1,952
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-15
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
The Judiciary—Con.
Supreme Court of the United States—Con.
Acquisition of property as an addition to the grounds
of the Supreme Court building
752
Outlays
0
613
Total Federal funds Supreme Court of the United
States
BA
0
32
13,289
14,074
15,191
15,430
15,649
15,130
5,994
^
4,309
^146
4,244
5,911
4,455
4,244
5,994
5,911
United States Court of Appeals for the
Federal Circuit
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
BA
Outlays
0
Total Salaries and expenses
=
=
=
BA
0
Court of Customs and Patent Appeals
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
752
BA
0
2,008
1,979
BA
5,286
5,372
5,900
0
5,086
5,489
5,880
BA
0
5,286
5,086
5,552
5,489
5,900
5,880
BA
0
6,170
5,768
79
United States Court of International Trade
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
Outlays
Total Salaries and expenses
Court of Claims
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
See footnotes at end of table.
752
381
8-16
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
The Judiciary—Con.
Courts of Appeals, District Courts, and
other Judicial Services
Federal funds
General and Special Funds:
Salaries of judges
Appropriation, current
752
Outlays
Total Salaries of judges
Salaries of supporting personnel
Appropriation, current
62,300
Total Salaries of supporting personnel
0
62,236
BA
0
62,300
62,236
68,410
68,410
69,880
69,880
BA
276,300
330,420
0
273,791
294,000
A
2,450
D
16,800
308,827
A
2,356
BA
0
276,300
273,791
313,250
311,183
330,420
329,742
BA
28,670
38,290
0
28,459
32,215
^2,400
°700
31,436
-* 1,653
BA
0
28,670
28,459
35,315
33,089
38,290
36,905
39,000
39,416
42,500
43,220
43,500
44,355
55,600
49,576
65,000
66,648
76,540
75,040
Total Defender services
Fees of jurors and commissioners
752
Appropriation, current
BA
Outlays
0
Expenses of Operation and Maintenance of the
Courts
752
Appropriation, current
BA
Outlays
0
Salaries and expenses of magistrates
752
Outlays
0
Bankruptcy courts, salaries and expenses
752
Appropriation, current
BA
Outlays
0
Total Bankruptcy courts, salaries and expenses... BA
0
See footnotes at end of table.
69,880
329,648
^94
752
Outlays
Services for drug dependent offenders
Appropriation, current
Outlays
64,500
1,400
D
2,510
67,010
A
1,400
A
752
Outlays
Defender services
Appropriation, current
BA
1,175
84,700
80,813
84,700
80,813
36,158
A
747
-20
89,000
2,000
D
4,100
92,813
^750
104,280
95,100
93,563
104,280
103,748
4,000
3,840
5,000
4,827
A
102,498
A
1,250
752
BA
0
3,750
2,931
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-17
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
The Judiciary—Con.
Courts of Appeals, District Courts, and
other Judicial Services—Con.
Space and facilities
Appropriation, current
Outlays
Furniture and furnishings
Outlays
Court security
Appropriation, current
Outlays
Speedy trial planning
Outlays
Special rail reorganization court
Outlays
752
BA
0
116,950
112,049
132,412
131,169
168,490
163,620
752
0
347
611
125
752
BA
0
12,000
12,000
16,250
16,250
752
0
3
0
192
752
Total Federal funds Courts of Appeals, District
Courts, and other Judicial Services
BA
0
548
242
667,270
650,988
767,987
764,261
852,650
844,734
BA
20,750
27,550
0
19,832
23,406
"860
23,547
27,092
BA
0
20,750
19,832
24,266
23,547
27,550
27,092
BA
7,770
0
BA
0
Administrative Office of the United States
Courts
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
Outlays
Total Salaries and expenses
Federal Judicial Center
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
752
Outlays
Total Salaries and expenses
7,107
7,618
171
7,420
8,913
7,770
7,107
7,789
7,420
9,282
8,913
D
9,282
Bicentennial Expenses, The Judiciary
Federal funds
General and Special Funds:
Bicentennial activities
Outlays
See footnotes at end of table.
380-000 O - 83 - 23 : QL 3
806
0
16
40
40
8-18
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
The Judiciary—Con.
Judiciary Trust Funds
Trust funds
Judicial survivors' annuities fund
Appropriation, permanent, indefinite
Outlays
602
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts.Proprietary receipts from the public
BA
0
10,200
4,068
11,466
4,268
12,317
4,444
BA
0
722,543
704,850
825,240
820,891
917,025
907,700
_4m
_4m
750 BA
_^^
908 BA
-383
-380
BA
717,962
820,567
912,292
0
700,269
816,218
902,967
10,200
4,068
11,466
4,268
12,317
4,444
832,033
820,486
924,609
907,411
Q
Total Federal funds
Trust funds:
(As shown in detail above)
BA
0
Interfund transactions
602 BA
0
Total The Judiciary
BA
0
-380
»
728,892
705,067
Executive Office of the President
Compensation of the President
Federal funds
General and Special Funds:
Compensation of the President
Appropriation, current
Outlays
802
BA
0
250
244
250
282
250
250
The White House Office
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
802
BA
19,652
23,413
19,709
21,300
"640
21,898
0
BA
0
19,652
19,709
21,940
21,898
23,413
23,455
23,455
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-19
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Executive Office of the President—Con.
Executive Residence at the White House
Federal funds
General and Special Funds:
Operating expenses
Appropriation, current
802
BA
Outlays
Total Operating expenses
3,650
0
3,586
3,800
C
63
D
86
3,850
BA
0
3,650
3,586
3,949
3,850
4,550
4,500
4,550
4,500
Official Residence of the Vice President
Federal funds
General and Special Funds:
Operating expenses
Appropriation, current
Outlays
802
BA
0
178
84
281
361
262
275
BA
1,433
1,593
0
1,498
1,475
*31
1,460
BA
0
1,433
1,498
1,506
1,460
1,593
1,546
BA
1,985
2,100
2,464
0
BA
0
2,103
1,985
2,103
2,172
2,177
2,172
2,469
2,464
2,469
Federal funds
General and Special Funds:
Council on Environmental Quality and Office of Environmental Quality
802
Appropriation, current
BA
Outlays
0
936
1,957
926
1,912
913
915
Special Assistance to the President
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
Outlays
Total Salaries and expenses
1,546
Council of Economic Advisers
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
D
n
Outlays
Total Salaries and expenses
Council on Environmental Quality and Office
of Environmental Quality
See footnotes at end of table.
8-20
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Executive Office of the President—Con.
Council on Wage and Price Stability
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
802
0
80
1
Office of Policy Development
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
Outlays
Total Salaries and expenses
BA
2,604
2,600
2,861
0
2,753
2,731
2,891
BA
0
2,604
2,753
2,712
2,731
2,861
2,891
BA
3,557
3,900
4,497
0
3,488
3,985
4,420
BA
0
3,557
3,488
4,064
3,985
4,497
4,420
BA
11,912
12,904
14,900
0
11,965
12,714
14,454
BA
0
11,912
11,965
13,108
12,714
14,900
14,454
BA
33,522
33,000
4
669
1,318
39,643
National Security Council
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
Outlays
Total Salaries and expenses
Office of Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
Outlays
Total Salaries and expenses
Office of Management and Budget
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
D
Outlays
0
34,142
34,579
*669
'-675
39,193
•^ —675
Total Salaries and expenses
See footnotes at end of table.
BA
0
33,522
34,142
34,987
35,248
38,968
38,518
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-21
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Executive Office of the President—Con.
Office of Management and Budget—Con.
Office of Federal Procurement Policy: Salaries and
expenses
802
Appropriation, current
BA
2,429
2,400
2,714
0
2,635
2,823
'-969
2,770
'-959
BA
0
2,429
2,635
2,495
2,823
1,745
1,811
BA
0
35,951
36,777
37,482
38,071
40,713
40,329
802 BA
_55
_20
_2n
BA
0
35,896
36,722
37,462
38,051
40,693
40,309
Outlays
Total Office of Federal Procurement Policy
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Office of Management and Budget
Office of Science and Technology Policy
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
BA
Outlays
Total Salaries and expenses
1,576
0
1,501
1,839
D
73
1,982
BA
0
1,576
1,501
1,912
1,982
BA
9,188
2,088
2,091
2,088
2,091
Office of the United States Trade
Representative
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
802
10,100
* 11,647
D
Outlays
Total Salaries and expenses
0
8,984
409
10,300
BA
0
9,188
8,984
10,509
10,300
11,400
11,647
11,400
Property Review Board
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
See footnotes at end of table.
802
BA
0
445
413
415
386
8-22
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Executive Office of 1the President—Con
Special Action Office for Drug Abuse
Prevention
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
Special fund for drug abuse
Outlays
554
o
554
.
12
0
1
66
Total Federal funds Special Action Office for
0
Drug Abuse Prevention
1
78
BA
0
92,872
94,730
101,261
102,210
110,566
109,381
802 BA
0
-55
-20
-20
BA
0
92,817
94,675
101,241
102,190
110,546
109,361
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Executive Office of the President
Funds Appropriated to the President
Appalachian Regional Development Programs
Federal funds
General and Special Funds:
Appalachian regional development programs
Appropriation, current
452
Outlays
BA
150,000
0
311,329
165,133
—15,133
253,000
150,000
311,329
150,000
253,000
477
1,219
150,000
311,806
150,000
254,219
205,000
301,694
115,439
130,000
221,804
220,047
Total Appalachian regional development programs
BA
0
w
H
209,000
-4,000
205,000
Public Enterprise Funds:
Appalachian housing fund
Outlays
452
Total Federal funds Appalachian Regional Development Programs
BA
0
Disaster Relief
Federal funds
General and Special Funds:
Disaster relief
Appropriation, current..
Outlays
See footnotes at end of table.
453
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-23
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Funds Appropriated to the President—Con.
Disaster Relief—Con.
Trust funds
Bequests and gifts
Appropriation, permanent, indefinite
Outlays
453
BA
0
-105
BA
0
845
227
93
30
91
20
Unanticipated Needs
Federal funds
General and Special Funds:
Unanticipated needs
Appropriation, current
Outlays
802
1,000
996
1,000
990
Expenses of Management Improvement
Federal funds
General and Special Funds:
Expenses of management improvement
Outlays
802
0
43
91
10
International Security Assistance
Federal funds
General and Special Funds:
Foreign military sales credit
Appropriation, current
152
Outlays
Total Foreign military sales credit
Economic support fund
Appropriation, current
BA
800,000
1,175,000
0
501,496
880,100
1,000,000
1,006,500
BA
0
800,000
501,496
1,175,000
880,100
1,000,000
1,006,500
BA
2,919,300
2,661,000
152
* 2,949,000
B
Outlays
Total Economic support fund
Military assistance
Appropriation, current
0
2,299,055
294,500
2,683,749
B
147,500
BA
0
2,919,300
2,299,055
2,955,500
2,831,249
BA
178,512
290,000
Total Military assistance
See footnotes at end of table.
2,844,202
B
99,375
2,949,000
2,943,577
152
* 747,000
B
Outlays
A
0
175,783
167,000
205,740
B
36,740
BA
0
178,512
175,783
457,000
242,480
429,610
60,120
B
747,000
489,730
8-24
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Funds Appropriated to the IPresident—Con.
International Security Assistance—Con.
International military education and training
Appropriation current
152
BA
42,000
45,000
* 56,532
B
Outlays
Total International military education and training
0
30,818
1,000
45,400
B
550
BA
0
42,000
30,818
46,000
45,950
BA
145,700
31,100
0
141,709
43,990
48,710
BA
0
145,700
141,709
31,100
43,990
46,200
48,710
BA
0
33,000
15,684
151
141,882
131,000
164,000
4,118,512
3,306,427
4,664,600
4,174,920
4,798,732
4,705,752
-186,835
-142,000
-98,300
-67,370
-72,300
-65,700
3,864,307
3,052,222
4,450,300
3,960,620
4,634,732
4,541,752
146,889
24,526
126,042
33,591
109,721
36,855
52,985
B
250
56,532
53,235
152
Peacekeeping operations
Appropriation current
M6,200
Outlays
Total Peacekeeping operations
Assistance for relocation of facilities in Israel
Contract authority permanent indefinite
Outlays
Public Enterprise Funds:
Guarantee reserve fund
Outlays
152
152
0
Summary
Federal funds:
(As shown in detail above)
.
.
.
.
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
152
908
Total International Security Assistance
BA
0
BA
0
BA
0
International Development Assistance
Multilateral Assistance
Federal funds
General and Special Funds:
Contribution to the International Bank for Reconstruction and Development
151
Appropriation, current
BA
Outlays
See footnotes at end of table.
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-25
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Multilateral Assistance—Con.
Contribution to the International Development Association
151
Appropriation, current
BA
1,095,000
747,136
700,000
245,000
820,650
^ 7,350
700,000
747,136
945,000
828,000
1,095,000
909,000
700,000
A
Outlays
0
Total Contribution to the International Development Association
BA
0
886,950
^ 22,050
Contribution to the International Finance Corporation
151
Appropriation, current
BA
Outlays
0
Contribution to the Inter-American Development
Bank
151
Appropriation, current
BA
221,230
284,100
0
217,805
269,254
41,123
* 150,501
294,189
Total Contribution to the Inter-American Development Bank
BA
0
221,230
217,805
284,100
269,254
191,624
294,189
BA
120,812
131,882
0
58,718
103,482
17,116
* 136,944
110,063
Total Contribution to the Asian Development
Bank
BA
0
120,812
58,718
131,882
103,482
154,060
110,063
Contribution to the African Development Fund 151
Appropriation, current
BA
58,333
* 50,000
21,475
* 50,000
38,500
50,000
21,475
50,000
38,500
17,987
17,987
17,987
35,000
50,000
41,500
Outlays..
Contribution to the Asian Development Bank
Appropriation, current
Outlays..
Outlays..
151
0
Total Contribution to the African Development
Fund
BA
0
Contribution to the African Development Bank 151
Appropriation, current
BA
Outlays
0
Payment to the International Fund for Agricultural
Development
151
Appropriation, current
BA
Outlays
0
See footnotes at end of table.
14,448
14,448
58,333
23,446
8-26
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Multilateral Assistance—Con.
International organizations and programs
Appropriation, current
151
BA
215,438
249,002
H89,950
B
Outlays..
237,790
4,500
205,276
253,502
205,276
1,790,526
1,514,065
200,872
B
4,500
Total International organizations and programs....
BA
0
Total Federal funds Multilateral Assistance
BA
0
215,438
237,790
1,477,150
1,323,869
BA
1,295,155
1,298,243
0
1,094,722
1,188,510
1,342,000
1,236,200
BA
0
1,295,155
1,094,722
1,298,243
1,188,510
1,342,000
1,236,200
BA
93,758
93,757
0
60,089
78,726
BA
0
93,758
60,089
93,757
78,726
BA
20,000
20,000
0
30,175
20,091
7,500
17,537
BA
0
20,000
30,175
20,000
20,091
7,500
17,537
BA
107,000
25,000
0
27,693
63,400
BA
0
107,000
27,693
25,000
63,400
189,950
205,372
1,858,342
1,653,466
Agency for International Development
Federal funds
General and Special Funds:
Functional development assistance program
Appropriation, current
151
Outlays
Total Functional development assistance program
Sahel development program
Appropriation, current
151
Outlays
Total Sahel development program..
American schools and hospitals abroad
Appropriation, current
Total American schools and hospitals abroad
Outlays
Total International disaster assistance.
See footnotes at end of table.
K
103,000
85,637
103,000
85,637
151
Outlays
International disaster assistance
Appropriation, current
K
K
151
K
25,000
44,253
25,000
44,253
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-27
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Agency for International Development—Con.
Operating expenses Agency for International Development
151
Appropriation, current
BA
331,000
335,000
* 378,512
D
312,796
9,938
349,446
374,272
Total Operating expenses Agency for International Development
BA
0
331,000
312,796
344,938
349,446
378,512
374,272
Payment to the Foreign Service retirement and disability fund
153
Appropriation, current
BA
33,583
Outlays
0
Outlays..
42,948
35,403
1,134
39,316
A
35,403
^ 1,134
J
-5,412
39,316
' -5,412
Total Payment to the Foreign Service retirement
and disability fund
BA
0
Miscellaneous appropriations
Outlays
33,583
42,948
36,537
36,537
33,904
33,904
4,631
5,000
3,898
8,457
3,397
151
Public Enterprise Funds:
Development loans-revolving fund
Outlays
Housing and other credit guaranty programs
Outlays
151
-22,172
151
130
Intragovernmental Funds:
Advance acquisition of property-revolving fund
151
Outlays
Office of the Inspector General of Foreign Assistance
151
0
Outlays
Trust funds
Miscellaneous trust funds
151
Appropriation, permanent, indefinite
BA
Outlays
0
413
139
151
-1,058
15,000
15,000
15,000
15,000
1,880,496
1,551,425
1,818,475
1,750,306
1,889,916
1,799,098
-593
-413
-413
-345,768
-401,600
-431,945
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
See footnotes at end of table.
BA
0
150 BA
0
151 BA
0
8-28
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
Agency for International Development—Con.
we
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
DM
_325j66
-377,948
-414,483
BA
0
1,208,369
879,298
1,038,514
970,345
1,043,075
952,257
15,000
15,000
15,000
15,000
BA
0
151 BA
151
-1,058
_m
^ ^
_J5m
Total Trust funds
BA
0
51
-1,158
Total Agency for International Development
BA
0
1,208,420
878,140
1,038,514
970,345
BA
6,907
10,500
0
1,876
5,522
22,000
10,301
BA
0
6,907
1,876
10,500
5,522
22,000
10,301
:
1,043,075
952,257
Trade and Development Program
Federal funds
General and Special Funds:
Trade and development program
Appropriation, current
151
Outlays
Total Trade and development program
K
Peace Corps
Federal funds
General and Special Funds:
Peace Corps operating expenses
Appropriation, current
151
Outlays
Total Peace Corps operating expenses
Trust funds
Peace Corps miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
BA
105,000
109,000
0
103,387
108,600
* 108,500
108,250
BA
0
105,000
103,387
109,000
108,600
108,500
108,250
151
BA
0
-122
210
210
210
210
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
150 BA
Q
See footnotes at end of table.
105,000
103,387
0AA
— 244
109,000
108,600
AQ
—48
108,500
108,250
.0
—48
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-29
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Funds Appropriated to the 1President—Con.
International Development Assistance—Con.
Peace Corps—Con.
908
BA
-15
0
BA
0
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
151
Total Trust funds
Total Peace Corps
-9
104,741
103,128
108,943
108,543
108,443
108,193
-122
210
210
210
210
.
BA
0
'
BA
0
.
-9
-80
-70
-122
130
130
140
140
104,741
103,006
109,073
108,673
108,583
108,333
-88,198
-81,973
-84,566
BA
12,000
12,000
0
10,505
10,709
10,705
14,035
BA
0
12,000
10,505
12,000
10,709
10,705
14,035
BA
21
19
BA
0
Overseas Private Investment Corporation
Federal funds
Public Enterprise Funds:
Overseas Private Investment Corporation
Outlays
151
0
inter-American Foundation
Federal funds
Public Enterprise Funds:
Inter-American Foundation
Appropriation current
151
K
Outlays
Total Inter-American Foundation
Trust funds
Gifts and contributions, Inter-American Foundation
151
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
0
.
3
.
8-30
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Funds Appropriated to the President—Con.
International Development Assistance—Con.
African Development Foundation
Federal funds
General and Special Funds:
African Development Foundation
Appropriation, current
Outlays
151
BA
0
Total Federal funds International Development
Assistance
BA
0
Total Trust funds International Development Assistance
BA
0
'3,000
1,250
/
2,809,167
2,230,478
72
-1,261
2,960,483
2,527,211
130
133
3,045,565
2,654,936
140
140
International Commodity Agreements
Federal funds
General and Special Funds:
Contributions to international buffer stocks
Outlays
155
0
40,402
20,000
0
323,230
0
-1,782
-1,483
-500
0
-203,622
-196,459
-146,542
Trust funds
Foreign military sales trust fund
155
Contract authority, permanent, indefinite
BA 13,263,128
Liquidation of contract authority, permanent
(11,839,332)
Outlays
0
12,027,639
15,000,000
(12,300,000)
12,800,000
15,500,000
(13,400,000)
13,800,000
International Monetary Programs
Federal funds
General and Special Funds:
United States quota, International Monetary Fund
155
Outlays
Military Sales Programs
Federal funds
Public Enterprise Funds:
Liquidation of foreign military sales fund
Outlays
Special defense acquisition fund
Outlays
155
155
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
See footnotes at end of table.
0
- 205,404
-197,942
-147,042
BA
0
13,263,128
12,027,639
15,000,000
12,800,000
15,500,000
13,800,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-31
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Funds Appropriated to the President—Con.
Military Sales Programs—Con.
Deductions for offsetting receipts:
Proprietary receipts from the public
155
Total Trust funds
BA
BA
1,423,796
2,700,000
188,307
500,000
400,000
BA
1,423,796
2,700,000
2,100,000
0
-17,097
302,058
252,958
0
17,725
2
8,052,604
6,812,759
8,686,101
7,781,319
0
Total Military Sales Programs
2,100,000
Petroleum Reserves
Federal funds
General and Special Funds:
Petroleum reserves
Outlays
271
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
150 BA
r,
fl__
—83/
8,692,195
8,486,591
.C1
,_,
—461
—461
151
QA
-345,768
-401,600
-431,945
152
jj A
-186,835
-142,000
-98,300
Q
-393,151
-450,257
-480,192
BA
7,126,013
7,691,783
7,681,297
0
5,886,168
6,787,001
7,475,693
13,263,300
12,026,373
15,015,303
12,815,243
15,515,301
13,815,230
908 RA
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts.Proprietary receipts from the public
BA
0
151 BA
155
Total Trust funds
QA
BA
See footnotes at end of table.
-11,839,332
_
^
_mQ
-12,300,000
-13,400,000
y
1,423,868
2,700,223
186,941
500,163
400,160
BA
8,549,881
10,392,006
9,781,528
0
6,073,109
7,287,164
7,875,853
0
Total Funds Appropriated to the President
_m
2,100,231
8-32
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture
Office of the Secretary
Federal funds
General and Special Funds:
Office of the Secretary
Appropriation, current
352
Outlays
Total Office of the Secretary
BA
4,999
5,045
5,227
4,377
D
318
4,618
0
BA
0
4,999
5,227
4,695
4,618
5,045
5,045
BA
14,948
0
BA
0
5,045
Departmental Administration
Federal funds
General and Special Funds:
Departmental administration
Appropriation, current
352
Outlays
Total Departmental administration
Standard level user charges
Appropriation, current
Outlays
Advisory committees
Appropriation, current
Outlays
17,819
16,480
12,911
C
7
"517
13,427
14,948
16,480
13,435
13,427
17,819
17,819
56,377
56,377
69,402
69,402
17,819
352
BA
0
352
BA
0
1,398
1,398
1,398
1,398
689
143
Intragovernmental Funds:
Working capital fund
Outlays
352
0
Total Federal funds Departmental Administration. BA
0
-9,238
14,948
7,242
71,210
71,891
88,619
88,762
Office of Governmental and Public Affairs
Federal funds
General and Special Funds:
Governmental and Public Affairs
Appropriation, current
Outlays
Total Governmental and Public Affairs
See footnotes at end of table.
352
BA
8,628
0
11,316
7,166
D
216
7,379
BA
0
8,628
11,316
7,382
7,379
7,569
7,569
7,569
7,569
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Office of the Inspector General
Federal funds
General and Special Funds:
Office of the Inspector General
Appropriation, current
352
Outlays
Total Office of the Inspector General
44,579
0
40,170
42,213
D
273
G
555
42,349
BA
0
41,906
40,170
43,041
42,349
44,579
43,893
BA
13,997
14,976
0
BA
41,906
43,893
Office of the General Counsel
Federal funds
General and Special Funds:
Office of the General Counsel
Appropriation, current
352
Outlays..
Total Office of the General Counsel.
14,310
13,238
°686
13,795
BA
0
13,997
14,310
13,924
13,795
14,976
14,930
BA
425,938
472,410
472,410
470,272
14,930
Agricultural Research Service
Federal funds
General and Special Funds:
Agricultural Research Service
Appropriation, current
352
Outlays
Total Agricultural Research Service
Buildings and facilities
Appropriation, current
Outlays
Total Buildings and facilities
0
436,075
454,184
'668
D
5,774
463,703
BA
0
425,938
436,075
460,626
463,703
BA
8,596
0
9,087
1,927
"-1,927
11,408
"-1,927
BA
0
8,596
9,087
352
Trust funds
Miscellaneous contributed funds
352
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Agricultural Research Service BA
0
Total Trust funds Agricultural Research Service... BA
0
See footnotes at end of table.
380-000
0 - 8 3- " 2 4 : QL 3
470,272
1,421
1,674
434,534
445,162
1,421
1,674
9,481 ..
2,000
1,820
460,626
473,184
2,000
1,820
2,000
2,082
472,410
470,272
2,000
2,082
8-34
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Cooperative State Research Service
Federal funds
General and Special Funds:
Cooperative State Research Service
Appropriation, current
Outlays
352
BA
0
221,216
219,846
244,949
230,438
231,715
232,322
BA
0
315,702
306,965
328,654
327,917
287,082
295,054
BA
8,053
8,621
0
BA
0
8,488
8,053
8,488
9,096
8,732
9,096
9,714
9,873
9,714
BA
51,446
55,778
0
43,864
50,845
1,061
51,599
BA
0
51,446
43,864
51,906
51,599
55,778
55,548
Extension Service
Federal funds
General and Special Funds:
Extension Service
Appropriation, current
Outlays
352
National Agricultural Library
Federal funds
General and Special Funds:
National Agricultural Library
Appropriation, current
352
D
9,873
n\
Outlays
Total National Agricultural Library
Statistical Reporting Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
352
Outlays
Total Salaries and expenses
Trust funds
Miscellaneous contributed funds
Appropriation, permanent, indefinite
Outlays
D
352
BA
0
146
11
145
164
Economics and Statistics Service
Federal funds
General and Special Funds:
Salaries and expenses
Outlays
Trust funds
Miscellaneous contributed funds
Outlays
See footnotes at end of table.
55,548
352
0
9,787
0
4
2,301
352
2
145
145
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-35
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Economic Research Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
352
Outlays
Total Salaries and expenses
Trust funds
Miscellaneous contributed funds
Appropriation, permanent, indefinite
Outlays
BA
39,360
45,024
36,981
37,936
1,028
38,671
0
BA
0
39,360
36,981
38,964
38,671
45,024
41,320
D
41,320
352
BA
0
50
47
64
76
64
64
BA
1,491
1,522
0
1,738
1,403
D
60
1,461
BA
0
1,491
1,738
1,463
1,461
1,522
1,522
World Agricultural Outlook Board
Federal funds
General and Special Funds:
World agricultural outlook board
Appropriation, current
352
Outlays
Total World agricultural outlook board
1,522
Foreign Agricultural Service
Federal funds
General and Special Funds:
Foreign Agricultural Service
Appropriation, current
Outlays
Total Foreign Agricultural Service
352
BA
68,236
0
BA
0
Salaries and expenses (special foreign currency program)
352
Outlays
0
Total Federal funds Foreign Agricultural Service.. BA
0
See footnotes at end of table.
85,217
60,081
74,415
^605
75,020
68,236
60,081
75,020
75,020
85,217
85,217
247
68,236
60,328
85,217
388
75,020
75,408
85,217
85,217
8-36
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Office of International Cooperation and
Development
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
352
BA
Outlays
0
Total Salaries and expenses
3,627
227
BA
0
3,627
227
Scientific activities overseas (foreign currency program)
352
Appropriation, current
BA
238
Outlays
0
Total Scientific activities overseas (foreign currency program)
BA
0
Trust funds
Miscellaneous contributed funds
Appropriation, permanent, indefinite
Outlays
3,938
238
3,938
A
3,617
4,016
3,662
^500
4,016
4,162
4,162
4,016
4,016
2,977
3,172
4,728
^634
6,149
6,149
5,362
6,149
6,292
5,658
^634
352
BA
0
6,649
7,169
8,826
12,819
10,095
10,095
Total Federal funds Office of International Cooperation and Development
BA
0
3,865
4,165
10,311
9,524
10,165
10,308
Total Trust funds Office of International Cooperation and Development
BA
0
6,649
7,169
8,826
12,819
10,095
10,095
1,000,000
929,403
1,028,000
1,035,150
1,052,000
1,052,000
70,597
-7,150
1,000,000
1,000,000
1,028,000
1,028,000
Foreign Assistance Programs
Federal funds
General and Special Funds:
Expenses, Public Law 480, foreign assistance programs, Agriculture
151
Appropriation, current
BA
Outlays
0
Increase (-) or decrease in amount owed by the
Public Law 480 account to the Commodity
Credit Corportation
351
Outlays
0
Total Federal funds Foreign Assistance Programs
See footnotes at end of table.
BA
0
1,052,000
1,052,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-37
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Agricultural Stabilization and Conservation
Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
351
BA
Outlays..
Total Salaries and expenses..
Rural clean water program
Outlays
Agricultural conservation program
Appropriation, current
Outlays
Colorado river basin salinity control program
Appropriation, current
Outlays
Water Bank program
Appropriation, current
Outlays
Emergency conservation program
Appropriation, current
Outlays
Dairy and beekeeper indemnity programs
Appropriation, current
Outlays
Forestry incentives program
Appropriation, current
Outlays
54,346
-2,360
56,283
*-2,360
63,077
55,962
0
50,338
56,061
BA
0
63,077
50,338
55,962
56,061
51,986
53,923
0
5,372
7,000
9,000
190,000
167,828
190,000
180,000
56,000
193,600
L
304
302
BA
0
304
y
BA
0
12,550
' 6,275
302
BA
0
10,491
10,134
BA
0
8,800
4,400
15,000
BA
0
176
15
7,000
7,162
BA
0
12,500
13,517
12,500
13,500
Total Federal funds Agricultural Stabilization and
Conservation Service
BA
0
283,353
251,961
274,262
288,857
120,536
262,798
117,600
278,987
115,848
235,200
D
991
236,191
117,600
115,848
236,191
236,191
278,987
278,987
453
351
302
Federal Crop Insurance Corporation
Federal funds
General and Special Funds:
Administrative and operating expenses
Appropriation, current
351
BA
OutlaysTotal Administrative and operating expenses
See footnotes at end of table.
BA
0
278,987
8-38
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Federal Crop Insurance Corporation—Con.
Public Enterprise Funds:
Federal Crop Insurance Corporation fund
Appropriation, current
Outlays
351
BA
0
307,456
103,610
293,233
73,332
194,883
121,122
Total Federal funds Federal Crop Insurance Corporation
BA
0
425,056
219,458
529,424
309,523
473,870
400,109
10,466,057
5,707,457
'-1,042,218
7,685,886
4,671,661
^-5,707,457
J
1,035,796
1,292,218
2,666,064
J
-2,666,064
J
(1,042,218)
11,598,282
18,770,949
'-604,101
10,173,636
Commodity Credit Corporation
Support and Related Activities
Federal funds
Public Enterprise Funds:
Price support and related programs: Reimbursement
for net realized losses
351
Appropriation, current
BA
Authority to borrow, permanent
BA
Contract authority, permanent, indefinite
BA
Liquidation of contract authority, current
Outlays
0
Total Price support and related programs
7,043,229
A
J
156,022
229,188
-229,188
(83,333)
12,305,470
'-3,138,973
J
J
BA
0
16,021,333
11,598,282
15,131,296
18,166,848
10,329,658
9,166,497
BA
0
42,078
53,855
53,855
87,694
87,694
89,022
Special Activities
Federal funds
General and Special Funds:
National Wool Act (special fund)
Appropriation, permanent, indefinite
Outlays
351
Intragovemmental Funds:
Increase or decrease (-) in amount owed to the
Corporation by the Public Law 480 account
351
Outlays
0
Total Federal funds Special Activities
-70,597
7,150
BA
0
42,078
-16,742
53,855
94,844
87,694
89,022
Total Federal funds Commodity Credit Corporation
BA
0
16,063,411
11,581,540
15,185,151
18,261,692
10,417,352
9,255,519
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-39
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Office of Rural Development Policy
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
452
Outlays
Total Salaries and expenses
Rural development planning grants
Outlays
BA
1,913
2,388
1,262
2,000
°30
2,155
0
BA
0
1,913
1,262
2,030
2,155
2,388
2,340
0
2,919
1,073
81
1,913
4,181
2,030
3,228
2,388
2,421
29,585
29,585
29,564
2,340
452
Total Federal funds Office of Rural Development
Policy
BA
0
Rural Electrification Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
271
BA
Outlays
Total Salaries and expenses
30,273
0
28,944
28,945
*581
29,495
BA
0
30,273
28,944
29,526
29,495
29,564
Public Enterprise Funds:
Rural communication development fund
Appropriation, current
Authority to borrow, permanent, indefinite
Outlays
452
Total Rural communication development fund
BA
BA
0
375
3,478
91
646
6,543
375
740
6,115
BA
0
375
3,478
737
6,543
1,115
6,115
Total Federal funds Rural Electrification Administration
BA
0
30,648
32,422
30,263
36,038
30,700
35,679
125,000
209,635
125,000
207,502
90,000
165,024
5,579
4,728
2,496
Farmers Home Administration
Federal funds
General and Special Funds:
Rural water and waste disposal grants
Appropriation, current
Outlays
Rural development grants
Outlays
See footnotes at end of table.
452
BA
0
452
0
8-40
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Agriculture—Con.
Farmers Home Administration—Con.
Salaries and expenses
Appropriation, current
452
BA
318,445
280,065
289,238
C
12
D
9,779
296,304
BA
0
279,597
280,065
299,029
296,304
318,445
317,980
BA
0
3,250
2,743
3,250
3,148
1,938
BA
0
13,750
20,036
19,740
4,393
14,938
BA
0
3,950
8,084
12,500
6,815
7,508
0
1,309
801
BA
0
15,000
12,716
12,500
14,114
OutlaysTotal Salaries and expenses
Rural community fire protection grants
Appropriation, current
Outlays
Rural housing for domestic farm labor
Appropriation, current
Outlays
Mutual and self-help housing
Appropriation, current
Outlays.
Rural housing supervisory assistance grants
Outlays
Very low income housing repair grants
Appropriation, current
Outlays
Rural rental assistance payments
Appropriation, current
Outlays
Compensation for construction defects
Appropriation, current
Outlays
Rural housing block grants
Appropriation, current
Outlays
279,597
317,980
452
604
604
371
604
250
604
BA
0
62,000
184,850
371
BA
O
2,000
2,000
604
J
BA
0
850,000
'280,500
Public Enterprise Funds:
Self-help housing land development fund
Outlays
371
0
Total Self-help housing land development fund.... 0
Rural housing insurance fund
Appropriation, current
Indefinite
Authority to borrow, permanent, indefinite
Outlays..
Total Rural housing insurance fund
See footnotes at end of table.
-727
111
264
-782
'782
264
371
BA
BA
BA
575,087
82,830
1,345,626
1,109,722
173,026
345,014
0
1,246,276
1,607,771
'3,556,109
1,913,757
'324,368
BA
0
2,003,543
1,246,276
1,627,762
1,607,771
5,064,191
2,238,125
1,508,082
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-41
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Farmers Home Administration—Con.
Agricultural credit insurance fund
Appropriation, current
Authority to borrow, permanent, indefinite
Outlays
351
BA
BA
0
464,083
174,717
1,370,287
682,074
732,203
780,600
BA
0
638,800
1,370,287
682,074
732,203
895,522
780,600
BA
BA
0
180,040
477,829
411,689
336,217
11,103
641,284
BA
0
180,040
411,689
347,320
641,284
477,829
547,226
Total Federal funds Farmers Home Administration
BA
0
3,262,930
3,567,692
3,111,435
3,536,674
7,762,380
4,541,435
BA
310,809
341,313
0
330,480
326,198
G
9,776
340,247
BA
0
310,809
330,480
335,974
340,247
341,313
341,832
BA
15,500
13,264
0
15,594
16,068
G
351
16,369
BA
O
15,500
15,594
16,419
16,369
13,264
13,975
BA
8,690
7,715
0
9,642
8,675
G
202
8,902
BA
0
8,690
9,642
8,877
8,902
7,715
7,809
Total Agricultural credit insurance fund
Rural development insurance fund
Appropriation, current
Authority to borrow, permanent, indefinite
Outlays
895,522
452
Total Rural development insurance fund
547,226
Soil Conservation Service
Federal funds
General and Special Funds:
Conservation operations
Appropriation, current
302
Outlays
Total Conservation operations
River basin surveys and investigations
Appropriation, current
301
Outlays
Total River basin surveys and investigations
Watershed planning
Appropriation, current
Outlays
Total Watershed planning
See footnotes at end of table.
341,832
13,975
301
7,809
8-42
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Soil Conservation Service—Con.
Watershed and flood prevention operations
Appropriation, current
301
BA
194,045
194,925
-10,329
-68,995
175,655
"-34,498
96,593
143,242
* -34,497
194,045
197,024
115,601
141,157
96,593
108,745
BA
0
21,500
22,860
21,315
21,111
15,521
20,862
BA
26,500
0
30,393
BA
0
26,500
30,393
F
H
Outlays
0
Total Watershed and flood prevention operations. BA
0
Great plains conservation program
Appropriation, current
Outlays
Resource conservation and development
Appropriation, current
302
302
Outlays
Total Resource conservation and development
Trust funds
Miscellaneous contributed funds:
(Water resources)
(Appropriation, permanent, indefinite)
(Outlays)
(Conservation and land management)
(Appropriation, permanent, indefinite)
(Outlays)
197,024
25,744
-5,600
26,861
»-1,195
H
H
20,144
25,666
12,236
-4,405
7,831
301
BA
0
1,029
846
600
632
460
634
BA
0
100
104
100
104
100
102
Total Miscellaneous contributed funds
BA
0
1,129
950
700
736
560
736
Total Federal funds Soil Conservation Service
BA
0
Total Trust funds Soil Conservation Service
BA
0
302
577,044
605,993
1,129
950
518,330
553,452
474,406
501,054
700
736
560
736
Animal and Plant Health Inspection Service
Federal funds
General and Special Funds:
Animal and Plant Health Inspection Service
Appropriation, current
Outlays
352
BA
0
Total Animal and Plant Health Inspection Service
BA
0
See footnotes at end of table.
281,967
,268,034
D
3,600
228,340
L
311,194
271,510
-3,600
238,046
L
-3,600
281,967
311,194
271,634
271,510
224,740
234,446
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-43
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Animal and Plant Health Inspection
Service—Con.
Buildings and facilities
Appropriation, current
Outlays
352
BA
0
3,000
1,793
2,386
6,327
2,386
4,932
Trust funds
Miscellaneous trust funds
352
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Animal and Plant Health
Inspection Service
BA
0
3,759
4,434
2,878
2,878
2,878
2,878
284,967
312,987
274,020
277,837
227,126
239,378
Total Trust funds Animal and Plant Health Inspection Service
BA
0
3,759
4,434
2,878
2,878
2,878
2,878
5,600
5,369
6,861
Federal Grain Inspection Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
352
BA
D
m
Outlays
Total Salaries and expenses
0
BA
0
11,162
5,600
11,162
5,540
5,548
5,540
6,869
6,861
6,869
Public Enterprise Funds:
Inspection and weighing services
Outlays
352
0
Total Federal funds Federal Grain Inspection
Service
BA
0
1,358
2,000
5,600
12,520
5,548
7,540
6,861
6,869
31,793
3,032
30,731
Agricultural Marketing Service
Federal funds
General and Special Funds:
Marketing services
Appropriation, current
352
Outlays
Total Marketing services
Payments to States and possessions
Appropriation, current
Outlays
See footnotes at end of table.
BA
39,033
0
44,252
34,825
-1,806
30,731
*-1,806
BA
0
39,033
44,252
34,825
34,825
28,925
28,925
D
352
BA
0
1,000
1,203
1,000
1,735
L
8-44
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Agricultural Marketing Service—Con.
Perishable Agricultural Commodities Act fund 352
Appropriation, permanent, indefinite
Outlays
Funds for strengthening markets, income, and supply
(section 32)
605
Appropriation, permanent, indefinite
Outlays
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
Milk market orders assessment fund
Outlays
BA
0
2,678
2,868
3,272
3,255
3,272
3,255
BA
0
462,701
384,885
400,433
421,240
410,346
365,400
BA
0
60,212
54,358
71,676
71,869
78,509
78,509
352
351
0
Total Federal funds Agricultural Marketing Service
BA
-50
505,412
439,530
442,543
433,208
461,055
397,580
BA
60,212
71,676
78,509
0
52,033
71,819
78,509
2,400
2,367
2,523
0
Total Trust funds Agricultural Marketing Service.
-2,325
Office of Transportation
Federal funds
General and Special Funds:
Office of Transportation
Appropriation, current
352
BA
z> 4 9
Outlays
Total Office of Transportation
0
2,042
2,413
2,526
BA
2,400
2,416
2,523
0
2,042
2,413
2,526
Food Safety and Inspection Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
554
BA
318,250
315,557
D
335,696
12,520
L
Outlays
Total Salaries and expenses
321,307
327,998
336,176
* -2,000
BA
318,250
328,077
333,696
0
321,307
327,998'
334,176
719
719
719
719
Trust funds
Expenses and refunds, inspection and grading of farm
products
352
Appropriation, permanent, indefinite
BA
Outlays
0
See footnotes at end of table.
-2,000
0
659
-1,580
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-45
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
1984
Department of Agriculture—Con.
Food and Nutrition Service
General and Special Funds:
Food program administration
Appropriation, current
605
Outlays
Total Food program administration
Food stamp program
Appropriation, current
BA
86,461
82,146
80,387
0
88,231
86,843
80,572
BA
0
86,461
88,231
82,459
86,843
80,387
80,572
BA
11,285,841
10,800,759
1,189,484
'-555
11,667,252
605
A
Outlays
Total Food stamp program
Nutrition assistance for Puerto Rico
Appropriation, current
Outlays
Special milk program
Appropriation, current
0
11,014,140
10,869,929
^ 1,175,210
-766,000
11,656,778
* 14,274
L
-756,808
BA
0
11,285,841
11,014,140
11,989,688
12,045,139
10,901,252
10,914,244
825,000
779,600
825,000
825,000
605
BA
0
605
Outlays
Total Special milk program
Child nutrition programs
Appropriation, current
L
BA
28,100
20,100
11,920
0
22,884
20,093
20,371
^ —171
BA
0
28,100
22,884
20,100
20,093
11,720
20,200
BA
1,082,890
896,324
605
L
Appropriation, permanent
Outlays
BA
0
Total Child nutrition programs
Special supplemental food programs (WIC)
Appropriation, current
Outlays
See footnotes at end of table.
1,763,948
3,019,724
2,281,676
3,198,912
^-2,406
L
937,417
-312,848
2,307,295
3,243,181
-295,011
BA
0
2,846,838
3,019,724
3,178,000
3,196,506
2,931,864
2,948,170
BA
0
934,080
929,757
1,092,600
1,117,660
1,092,600
1,093,251
605
8-46
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Food and Nutrition Service—Con.
Food donations program
Appropriation, current
Reappropriation
Outlays
605
50,061
121,160
156,266
" A 3,462
165,099
BA
0
141,420
121,160
159,728
165,099
50,061
76,742
Total Federal funds Food and Nutrition Service.... BA
0
15,322,740
15,195,896
17,347,575
17,410,940
15,892,884
15,958,179
BA
9,203
6,564
0
3,767
8,096
D
56
12,543
6,613
BA
0
9,203
3,767
8,152
12,543
6,564
6,613
BA
9,183
9,013
0
7,519
8,668
°166
8,824
BA
0
9,183
7,519
8,834
8,824
9,013
9,023
BA
4,639
0
4,572
BA
0
4,639
4,572
3,860
4,099
7
2
Total Food donations program
BA
BA
0
141,420
76,742
Human Nutrition Information Service
Federal funds
General and Special Funds:
Human Nutrition Information Service
Appropriation, current
352
Outlays
Total Human Nutrition Information Service
Packers and Stockyards Administration
Federal funds
General and Special Funds:
Packers and Stockyards Administration
Appropriation, current
352
Outlays
Total Packers and Stockyards Administration
9,023
Agricultural Cooperative Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
352
Outlays
Total Salaries and expenses
Trust funds
Miscellaneous contributed funds
Outlays
See footnotes at end of table.
4,639
"-779
4,761
"-662
352
0
3,677
4,203
"-117
3,677
4,086
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-47
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Forest Service
Federal funds
General and Special Funds:
Forest research
Appropriation, current
302
Outlays
Total Forest research
State and private forestry
Appropriation, current
Total State and private forestry
Total National forest system
100,647
BA
0
112,145
113,245
106,672
107,269
100,766
100,647
BA
65,555
25,058
0
67,362
62,328
»357
62,624
BA
0
65,555
67,362
62,685
62,624
25,058
29,415
BA
1,049,097
872,841
0
1,038,981
1,013,836
A
59,000
C
552
D
18,389
1,036,153
* 53,100
877,616
* 5,900
BA
0
1,049,097
1,038,981
1,091,777
1,089,253
872,841
883,516
10,123
17,042
261,095
266,428
242,291
266,428
29,415
0
302
Total Construction
Youth Conservation Corps
302
Outlays
Other general appropriations
302
Outlays
Acquisition of lands for national forests, special
acts
302
Appropriation, current
Outlays
Acquisition of lands to complete land exchanges
302
Appropriation, current, indefinite
Outlays
Range betterment fund
302
Appropriation, current, indefinite
Outlays
0
100,766
302
Outlays
See footnotes at end of table.
113,245
105,021
D
1,651
107,269
302
Outlays
Forest management, protection and utilization
Outlays
Construction
Appropriation, current
112,145
302
Outlays
National forest system
Appropriation, current
BA
BA
0
420,844
281,431
C
562
* 3,573
273,861
BA
0
261,095
420,844
285,566
273,861
0
276
0
242,291
13
279
BA
0
724
622
753
753
780
780
BA
0
151
90
147
147
20
20
BA
0
6,583
7,398
5,800
5,800
5,200
5,200
8-48
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Agriculture—Con.
Forest Service—Con.
Land acquisition
Appropriation, current
Outlays
Forest Service permanent appropriations
Appropriation, permanent, indefinite
Outlays
Forest Service permanent appropriations
Appropriation, permanent, indefinite
Outlays
303
BA
0
26,262
10,906
56,877
56,342
10,070
9,580
BA
0
122,020
148,471
149,760
141,032
159,000
154,598
BA
0
243,434
243,434
144,678
144,678
268,946
268,946
146,600
128,625
150,000
149,864
140,439
109,133
31,400
62,706
302
852
Intragovernmental Funds:
Working capital fund
Outlays
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
Reforestation trust fund
Appropriation, permanent, indefinite
Outlays
Highland scenic highway
Outlays
302
0
302
BA
0
BA
0
0
Summary
Federal funds:
(As shown in detail above)
36
1,887,066
2,072,757
105,902
113,860
1,904,715
1,899,093
287,039
237,853
1,684,972
1,719,130
181,400
212,570
BA
0
41,222,196
36,845,411
42,362,499
45,789,437
40,303,065
36,090,051
302 BA
270 BA
0
300
QA
'
lk
302
QA
~27
-291,201
-311,656
-404,365
'39
-176,401
-435,821
350
j*
450
BA
'53
-608,610
A
'-25,000
A
Q
550 BA
0
95
BA
0
BA
0
Q
See footnotes at end of table.
1,098
1,098
401
Total Trust funds Forest Service
Proprietary receipts from the public
104,804
112,726
302
Total Federal funds Forest Service
Deductions for offsetting receipts:
Intrafund transactions
11,005
-13,638
-1,849
ni
— 111
~5
.
-1,849
as
—88
c
~6
M
—bo
c
~6
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-49
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
estimate
1982
actual
Account and functional code
1984
estimate
Department of Agriculture—Con.
Summary—Con.
605
806
908
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
302
352
BA
0
BA
0
BA
0
-1,632
-1,454
-1,454
-237
-267
-1
-393
BA
0
40,589,773
36,212,988
41,493,143
44,920,081
39,145,694
34,932,680
BA
0
179,927
178,609
374,047
328,888
276,370
307,798
BA
0
BA
0
-104,804
-146,600
-150,000
-74,024
-87,008
-94,970
Total Trust funds
BA
.0
1,099
-219
140,439
95,280
31,400
62,828
Total Department of Agriculture
BA
0
40,590,872
36,212,769
41,633,582
45,015,361
39,177,094
34,995,508
33,200
33,200
33,165
Department of Commerce
General Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
0
31,487
32,038
C
3
1,229
33,221
BA
0
28,232
31,487
33,270
33,221
BA
28,232
D
Outlays
Total Salaries and expenses
White House conference on productivity
Appropriation, current
Outlays
Special foreign currency program
Appropriation, current
376
376
380-000 0 - 83 - 25 : QL 3
700
BA
Total Special foreign currency program
See footnotes at end of table.
1,500
1,500
BA
0
Outlays..
Intragovernmental Funds:
Working capital fund
Outlays
33,165
BA
0
242
^500
150
^ 150
300
^ 150
242
500
300
700
450
376
-163
...
8-50
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Commerce—Con.
General Administration—Con.
Trust funds
Miscellaneous trust funds
376
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds General Administration
BA
0
Total Trust funds General Administration
BA
0
443
309
28,232
31,566
200
200
35,270
35,021
300
300
33,900
33,615
443
309
200
200
300
300
Bureau of the Census
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
0
67,468
66,552
2,685
69,079
BA
0
57,200
67,468
69,237
69,079
78,200
76,689
BA
87,898
78,000
0
92,183
97,294
1,651
96,078
83,641
BA
0
87,898
92,183
98,945
96,078
78,000
83,641
Trust funds
Special studies, services, and projects
376
Appropriation, permanent
BA
Outlays
0
Total Federal funds Bureau of the Census
BA
0
9,459
-3,170
145,098
159,651
10,750
10,750
168,182
165,157
10,800
10,800
156,200
160,330
BA
0
9,459
-3,170
10,750
10,750
10,800
10,800
BA
28,771
38,900
0
28,337
37,117
1,333
38,368
BA
0
28,771
28,337
38,450
38,368
38,900
38,370
Outlays
Total Salaries and expenses
Periodic censuses and programs
Appropriation, current
57,200
D
78,200
76,689
376
Outlays
Total Periodic censuses and programs
Total Trust funds Bureau of the Census
D
Economic and Statistical Analysis
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
Outlays
Total Salaries and expenses
D
38,370
Public Enterprise Funds:
Technical information clearinghouse fund
Appropriation, current
See footnotes at end of table.
376
BA
J
5,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-51
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Commerce—Con.
Economic and Statistical Analysis—Con.
Trust funds
Information products and services
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
376
J
BA
BA
0
24,015
21,871
27,000
27,000
BA
0
24,015
21,871
27,000
27,000
BA
0
202
105
250
250
338
338
Total Federal funds Economic and Statistical
BA
Analysis
0
28,771
28,337
38,450
38,368
43,900
38,370
Total Trust funds Economic and Statistical Analysis
BA
0
24,217
21,976
27,250
27,250
338
338
25,000
23,602
24,842
18,100
19,260
337,293
168,500
—158,500
270,093
—23,590
206,709
—50,550
198,500
337,293
10,000
246,503
156,159
0
39,687
30,000
30,000
0
-282
0
123
0
1,389
Total Information products and services..
-29,000
29,000
29,000
J
- 29,000
376
Special studies, services, and projects
Appropriation, permanent
Outlays
Economic Development Assistance
Economic Development Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Economic development assistance programs
Appropriation, current
452
BA
0
452
29,308
BA
198,500
Outlays..
0
Total Economic development assistance programs
BA
0
Local public works program
Outlays
Drought assistance program
Outlays
Financial and technical assistance
Outlays
Job opportunities program
Outlays
See footnotes at end of table.
452
453
376
504
8-52
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Commerce—Con.
Economic Development Assistance—Con.
Economic Development Administration—Con.
Public Enterprise Funds:
Economic development revolving fund
Outlays
452
0
Total Federal funds Economic Development Administration
BA
0
45,746
24,000
-24,000
223,500
453,264
33,602
325,345
18,100
181,419
5,877
8,633
3,205
Regional Development Program
Federal funds
General and Special Funds:
Regional development programs
Outlays
Trust funds
Regional development commissions
Appropriation, permanent, indefinite
Outlays
452
0
452
BA
0
Total Federal funds Economic Development Assistance
Total Trust funds Economic Development Assistance
BA
0
BA
0
72
15,583
3,316
223,500
459,141
1,360
33,602
333,978
72
15,583
18,100
184,624
3,316
1,360
Promotion of Industry and Commerce
International Trade Administration
Federal funds
General and Special Funds:
Operations and administration
Appropriation, current
376
BA
151,995
0
123,170
168,133
A
Outlays
Total Operations and administration
Participation in United States expositions
Appropriation, current
Outlays
See footnotes at end of table.
-20,100
169,429
*-7,640
131,815
* 13,085
A
156,430
-9,260
BA
0
151,995
123,170
148,033
161,789
144,900
147,170
BA
0
10,000
10,918
5,700
3,759
376
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-53
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Commerce—Con.
Promotion of Industry and Commerce—Con.
International Trade Administration—Con.
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
376
BA
0
Total Federal funds International Trade Administration
Total Trust funds International Trade Administration
8,251
7,984
9,723
9,723
9,028
9,028
BA
161,995
148,033
144,900
0
134,088
167,489
150,929
BA
0
8,251
9,723
9,028
7,984
9,723
9,028
56,641
47,265
54,000
Minority Business Development Agency
Federal funds
General and Special Funds:
Minority business development
Appropriation, current
376
BA
D
Outlays
Total Minority business development
0
49,596
446
57,691
BA
56,641
47,711
54,000
0
49,596
57,691
57,000
57,000
United States Travel and Tourism
Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
7,600
8,189
0
7,044
7,932
BA
7,600
8,189
0
7,044
7,932
5,117
309
219
375
375
375
375
* 5,400
Outlays
Total Salaries and expenses
5,117
5,400
Trust funds
Special studies, services, and projects
Appropriation, permanent
Outlays
376
Total Federal funds Promotion of Industry and
Commerce
Total Trust funds Promotion of Industry and
Commerce
See footnotes at end of table.
BA
0
BA
226,236
203,933
204,300
0
190,728
233,112
213,046
BA
8,560
10,098
9,403
0
8,203
10,098
9,403
8-54
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
Department of Commerce—Con.
Science and Technology
National Oceanic and Atmospheric
Administration
Federal funds
General and Special Funds:
306
Operations, research, and facilities
Appropriation, current
BA
855,868
885,354
B
20,000
2,000
300
876,863
B
20,000
772,185
* 43,315
G
Indefinite..
Outlays
Total Operations, research, and facilities
Construction
Appropriation, current
BA
0
90
783,028
BA
0
855,958
783,028
907,654
896,863
19,202
'-2,000
"-2,000
12,000
» -2,000
19,202
-4,000
10,000
11,000
833,080
815,500
833,080
306
BA
OutlaysTotal Construction..
BA
0
11,000
Coastal zone management
302
Appropriation, current
BA
Outlays
0
Promote and develop fishery products and research
pertaining to American fisheries
376
Appropriation, current
BA
Appropriation, permanent, indefinite
BA
Outlays
0
7,415
65,132
8,409
31,647
23,741
10,000
26,186
18,704
-22,600
30,623
20,542
-31,500
31,500
2,186
Total Promote and develop fishery products and
research pertaining to American fisheries... BA
0
16,186
18,704
8,023
20,542
2,186
BA
0
4,710
1,140
1,750
1,637
1,750
1,750
BA
0
307
250
221
250
250
BA
0
3,046
1,742
6,950
8,009
12,000
12,000
BA
0
1,416
10,000
9,000
-1,109
BA
0
1,800
2,647
1,800
1,800
1,800
1,800
Fishing vessel and gear damage
fund
Appropriation, current, indefinite
Outlays
Fishermen's contingency fund
Appropriation, current
Outlays
Foreign fishing observer fund
Appropriation, current
Outlays
Fisheries loan fund
Appropriation, current
Outlays
Fishermen's guaranty fund
Appropriation, current
Outlays
See footnotes at end of table.
compensation
376
376
376
376
376
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-55
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Commerce—Con.
Science and Technology—Con.
National Oceanic and Atmospheric
Administration—Con.
Public Enterprise Funds:
Coastal energy impact fund
452
Outlays
0
Federal ship financing fund, fishing vessels
Authority to borrow, current, indefinite
Outlays
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
29,098
18,384
10,700
376
BA
0
1,900
2,473
3,100
2,747
-4,200
306
Outlays
BA
18,865
20,360
3,764
0
17,590
20,360
3,764
891,015
943,936
831,300
924,889
1,000,850
891,198
18,865
20,360
3,764
17,590
20,360
3,764
73,801
82,500
Total Federal funds National Oceanic and Atmospheric Administration
BA
0
Total Trust funds National Oceanic and Atmospheric Administration
BA
0
Patent and Trademark Office
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
376
BA
125,335
C
D
1O
4,648
Reappropriation
BA
Outlays
0
128,946
74,720
78,457
Total Salaries and expenses
8,200
BA
133,535
78,459
82,500
0
128,946
74,720
78,457
BA
117,822
111,575
National Bureau of Standards
Federal funds
General and Special Funds:
Scientific and technical research and services
Appropriation, current
376
* 94,893
C
Outlays
0
Total Scientific and technical research and services
BA
0
See footnotes at end of table.
107,478
211
» 2,526
114,531
97,490
117,822
114,312
94,893
107,478
114,531
97,490
8-56
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Commerce—Con.
Science and Technology—Con.
National Bureau of Standards—Con.
Intragovemmental Funds:
Working capital fund
Appropriation, current
376
BA
7,228
6,286
0
-2,533
5,943
* 3,807
5,060
BA
0
7,228
-2,533
6,286
5,943
3,807
5,060
Total Federal funds National Bureau of Standards
BA
0
125,050
104,945
120,598
120,474
93,700
102,550
BA
0
16,483
17,140
12,190
13,876
12,200
12,346
BA
0
18,000
12,294
15,000
23,800
23,150
Total Federal funds National Telecommunications
and Information Administration
BA
0
34,483
29,434
27,190
37,676
12,200
35,496
Outlays
Total Working capital fund
National Telecommunications and
Information Administration
Federal funds
General and Special Funds:
Salaries and expenses
376
Appropriation, current
Outlays
Public telecommunications facilities, planning and construction
503
Appropriation, current
Outlays
Total Federal funds Science and Technology
BA
0
1,184,083
1,188,214
1,170,183
1,233,720
1,024,700
1,107,701
Total Trust funds Science and Technology
BA
0
18,865
17,590
20,360
20,360
3,764
3,764
BA
0
1,835,920
2,057,637
1,649,620
2,039,356
1,481,100
1,737,686
908 BA
__m
__m
_m
_jggjj
-25482
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
Proprietary receipts from the public
300 BA
_2m
QA
370
Q
A
-1,654
376
j*A
-2,087
450
See footnotes at end of table.
J
§A
_358
-870
-52,110
_145
-37,779
-870
-2,110
_m
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-57
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Commerce—Con.
Summary—Con.
908 BA
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts.Intrafund transactions
Proprietary receipts from the public
BA
0
1,824,256
2,045,973
1,575,882
1,965,618
1,410,729
1,667,315
BA
0
61,616
68,658
71,974
24,605
25,965
-1016
-914
-914
-18,866
-20,360
-3,764
-37,157
-41,341
-42,508
60,491
376 BA
306 BA
376
A
jj
J
24,070
Total Trust funds
Interfund transactions
BA
0
4,577
3,452
376 BA
. tco
6,043
9,359
1,489
2,849
—3,0/0
— o,Z19
BA
0
^4,930
452 BA
0
Total Department of Commerce
BA
0
1,824,603
2,045,195
1,576,052
1,969,104
1,410,929
1,668,875
Department of Defense-Military
Military Personnel
Federal funds
General and Special Funds:
Military personnel, Army
Appropriation, current
Outlays
Military personnel, Navy
Appropriation, current
Outlays
Military personnel, Marine Corps
Appropriation, current
Outlays
Military personnel, Air Force
Appropriation, current
Outlays
Reserve personnel, Army
Appropriation, current
Outlays
See footnotes at end of table.
051
BA
0
14,024,000
13,933,948
14,604,848
14,566,200
15,214,700
15,168,100
BA
0
10,324,774
10,097,804
10,661,208
10,735,700
11,293,600
11,247,100
BA
0
3,120,745
3,042,104
3,330,977
3,346,600
3,462,900
3,447,300
BA
0
11,477,572
11,448,592
12,195,950
12,074,900
12,757,900
12,687,800
BA
0
1,081,000
1,054,115
1,247,250
1,233,400
1,386,500
1,374,700
051
051
051
051
8-58
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Defense-Military—Con.
Military Personnel—Con.
Reserve personnel, Navy
Appropriation, current
Outlays
Reserve personnel, Marine Corps
Appropriation, current
Outlays
Reserve personnel, Air Force
Appropriation, current
Outlays
National Guard personnel, Army
Appropriation, current
Outlays
National Guard personnel, Air Force
Appropriation, current
Outlays
051
BA
0
374,600
360,960
664,325
630,700
743,200
728,500
BA
0
152,500
142,781
170,900
165,600
177,300
172,700
BA
0
327,250
323,109
362,125
356,200
383,300
379,700
BA
0
1,512,900
1,468,483
1,698,800
1,658,000
1,914,800
1,881,400
BA
0
BA
0
479,900
468,749
42,875,241
42,340,645
548,425
540,800
45,484,808
45,308,100
593,000
588,200
47,927,200
47,675,500
BA
14,986,000
16,154,800
14,937,897
16,130,300
17,087,800
-282,000
17,052,400
^-282,000
BA
0
14,986,000
14,937,897
16,154,800
16,130,300
16,805,800
16,770,400
BA
15,043,101
15,666,339
0
14,102,785
15,587,000
BA
0
15,043,101
14,102,785
15,666,339
15,587,000
BA
19,728,489
21,055,557
051
051
051
051
Total Federal funds Military Personnel
Retired Military Personnel
Federal funds
General and Special Funds:
Retired pay, Defense
m, current
051
OutlaysTotal Retired pay, Defense-
L
Operation and Maintenance
Federal funds
General and Special Funds:
Operation and maintenance, Army
Appropriation, current
051
Outlays
Total Operation and maintenance, Army
Operation and maintenance, Navy
Appropriation, current
* 17,867,800
17,242,900
17,867,800
17,242,900
051
* 23,225,600
Liquidation of contract authority, current..
(43,641)
A
Outlays
Total Operation and maintenance, Navy
See footnotes at end of table.
BA
0
19,291,491
(25,000)
20,050,900
* 25,000
22,398,700
19,728,489
19,291,491
21,055,557
20,075,900
23,225,600
22,398,700
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-59
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Defense-Military—Con.
Operation and Maintenance—Con.
051
BA
1,200,040
1,460,947
0
Total Operation and maintenance, Marine Corps.. BA
0
1,103,436
1,373,300
1,575,900
1,514,800
1,200,040
1,103,436
1,460,947
1,373,300
1,575,900
1,514,800
BA
16,135,519
16,901,103
0
BA
0
15,494,144
16,653,900
* 18,999,100
18,453,800
16,135,519
15,494,144
16,901,103
16,653,900
18,999,100
18,453,800
BA
5,268,630
5,851,800
0
4,991,975
5,730,100
* 6,871,900
6,678,200
CD OD
Operation and maintenance, Marine Corps
Appropriation, current
5,268,630
4,991,975
5,851,800
5,730,100
6,871,900
6,678,200
BA
666,661
705,081
0
Total Operation and maintenance, Army Reserve. BA
0
595,428
705,500
* 662,800
656,800
666,661
595,428
705,081
705,500
662,800
656,800
BA
574,387
637,475
0
545,320
621,100
* 693,000
654,000
637,475
621,100
693,000
654,000
Outlays
Operation and maintenance, Air Force
Appropriation, current
051
Outlays
Total Operation and maintenance, Air Force
Operation and maintenance, Defense agencies
Appropriation, current.
051
Outlays
Total Operation and maintenance, Defense agencies
Operation and maintenance, Army Reserve
Appropriation, current
051
Outlays
Operation and maintenance, Navy Reserve
Appropriation, current
K
051
CD OD
Outlays
574,387
545,320
Appropriation, current
BA
40,444
51,112
Outlays
0
33,052
46,100
* 53,629
50,400
BA
0
40,444
33,052
51,112
46,100
53,629
50,400
Total Operation and maintenance, Navy Reserve..
Operation and maintenance, Marine Corps Reserve
051
Total Operation and maintenance, Marine Corps
Reserve
See footnotes at end of table.
8-60
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Military—Con.
Operation and Maintenance—Con.
Operation and maintenance, Air Force Reserve
Appropriation, current
051
BA
679,254
765,048
0
671,567
741,900
815,000
802,500
679,254
671,567
765,048
741,900
815,000
802,500
BA
1,109,697
1,191,174
0
1,025,094
1,198,300
* 1,135,000
1,133,600
1,109,697
1,025,094
1,191,174
1,198,300
1,135,000
1,133,600
BA
BA
1,671,218
1,822,107
0
1,653,359
1,769,800
* 1,824,700
1,804,800
Total Operation and maintenance, Air National
BA
Guard..
0
1,671,218
1,653,359
1,822,107
1,769,800
1,824,700
1,804,800
861
887
0
787
800
*899
900
Total National Board for the Promotion of Rifle
Practice, Army
BA
0
861
787
887
800
899
900
155,700
147,500
163,464
136,500
BA
0
155,700
163,464
147,500
136,500
BA
2,700
3,258
1,999
3,100
2,700
1,999
3,258
3,100
Outlays
Total Operation and maintenance, Air Force Reserve
BA
0
A
Operation and maintenance, Army National Guard
051
Appropriation, current
Outlays
Total Operation and maintenance, Army National
Guard
BA
0
Operation and maintenance, Air National Guard
051
Appropriation, current
Outlays
National Board for the Promotion of Rifle Practice,
Army
051
BA
Appropriation, current
BA
Outlays
Claims, Defense
Appropriation, current
051
BA
Outlays..
Total Claims, Defense
Court of Military Appeals, Defense
Appropriation, current
051
Outlays..
Total Court of Military Appeals, Defense
Foreign currency fluctuations, Defense
Appropriation, current
See footnotes at end of table.
* 222,900
214,100
222,900
214,100
BA
0
051
BA
189,170 .
* 3,372
3,300
3,372
3,300
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-61
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1983
estimate
1982
actual
Account and functional code
1984
estimate
Department of Defense-Military—Con.
Operation and Maintenance—Con.
Summer Olympics
Appropriation, current
Outlays
XIII Olympic winter games
Outlays
051
K
BA
0
50,000
* 40,000
051
0
Total Federal funds Operation and Maintenance... BA
0
71
62,465,871
59,673,972
66,259,388
64,643,300
74,001,600
71,648,800
Procurement
Federal funds
General and Special Funds:
Aircraft procurement, Army
Appropriation, current
051
BA
* 3,472,100
BA
0
13,396
1,296,516
1,436,000
2,368,500
BA
0
1,972,792
1,296,516
2,487,072
1,436,000
3,472,100
2,368,500
BA
2,118,500
2,266,600
0
1,268,507
1,866,800
* 3,088,500
2,363,700
BA
0
2,118,500
1,268,507
2,266,600
1,866,800
3,088,500
2,363,700
Procurement of weapons and tracked combat vehicles,
Army
051
Appropriation, current
BA
3,805,100
4,500,346
BA
0
2,143,686
198,200
3,532,600
4,109,600
Total Procurement of weapons and tracked
combat vehicles, Army
BA
0
3,805,100
2,143,686
4,698,546
3,532,600
4,934,416
4,109,600
2,332,500
2,116,394
1,646,825
1,934,300
* 2,334,189
2,117,100
2,332,500
1,646,825
2,116,394
1,934,300
2,334,189
2,117,100
Reappropriation
Outlays
Total Aircraft procurement, Army
Missile procurement, Army
Appropriation, current
051
Outlays..
Total Missile procurement, Army
* 4,934,416
Reappropriation
Outlays
Procurement of ammunition, Army
Appropriation, current
051
BA
Outlays..
Total Procurement of ammunition, Army
See footnotes at end of table.
BA
0
8-62
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS
LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Defense-Military—Con.
Procurement—Con.
CD
3,718,171
CD CD
28,200
2,027,503
2,982,000
3,706,900
CD CO
3,746,371
2,027,503
4,108,304
2,982,000
5,362,870
3,706,900
BA
9,027,700
10,268,327
0
5,872,193
7,552,500
* 11,127,300
9,317,800
BA
0
9,027,700
5,872,193
10,268,327
7,552,500
11,127,300
9,317,800
CO
3,165,600
3,435,100
CD
051
2,444,315
2,775,700
* 4,028,600
3,233,200
CD CO
Other procurement, Army
Appropriation, current
3,165,600
2,444,315
3,435,100
2,775,700
4,028,600
3,233,200
BA
8,402,400
16,036,900
4,108,304
* 5,362,870
Reappropriation
Outlays
Total Other procurement Army
Aircraft procurement, Navy
Appropriation, current
051
Outlays
Total Aircraft procurement, Navy
Weapons procurement, Navy
Appropriation, current
051
Outlays
Total Weapons procurement, Navy
Shipbuilding and conversion, Navy
Appropriation current
051
Other procurement, Navy
Appropriation, current
Total Other procurement Navy
Outlays
Total Procurement, Marine Corps
See footnotes at end of table.
211,200
7,248,900
8,506,100
BA
0
8,638,900
6,738,627
16,248,100
7,248,900
12,698,800
8,506,100
3,629,577
3,653,275
2,696,818
3,240,100
* 5,001,838
3,616,700
BA
0
3,629,577
2,696,818
3,653,275
3,240,100
5,001,838
3,616,700
BA
1,709,456
1,977,383
0
381,615
771,700
* 1,852,049
1,237,500
1,709,456
381,615
1,977,383
771,700
1,852,049
1,237,500
051
Outlays
Procurement, Marine Corps
Appropriation, current
236,500
6,738,627
CD
Total Shipbuilding and conversion, Navy
12,698,800
BA
0
QO
ReaDDroDriation
Outlays
CD CO
K
051
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-63
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Military—Con.
Procurement—Con.
Aircraft procurement, Air Force
Appropriation, current
051
,
BA
13,738,898
17,425,300
BA
0
BA
0
89,700
9,624,364
13,828,598
9,624,364
170,000
12,446,500
17,595,300
12,446,500
BA
4,532,550
4,943,700
BA
0
3,069,199
4,532,550
3,069,199
15,000
3,927,900
4,958,700
3,927,900
Appropriation, current
BA
5,385,333
5,535,977
Reappropriation..
Outlays
BA
0
BA
0
800
3,662,368
5,386,133
3,662,368
4,963
4,978,600
5,540,940
4,978,600
7,626,302
6,418,900
BA
O
518,000
384,042
823,545
485,100
1,082,791
727,000
BA
O
50,000
125,000
19,300
60,600
* 22,707,190
Reappropriation..
Outlays
Total Aircraft procurement, Air Force..
Missile procurement, Air Force
Appropriation, current
15,379,400
22,707,190
15,379,400
051
* 8,570^34
Reappropriation..
Outlays
BA
0
Total Missile procurement, Air ForceOther procurement, Air Force
5,063,600
8,570,834
5,063,600
051
* 7,626,302
Total Other procurement, Air Force..
Procurement, Defense agencies
Appropriation, current
Outlays
National guard and reserve equipment
Appropriation, current
Outlays
Defense production act purchases
Appropriation, current
Procurement of aircraft and missiles, Navy
Outlays
Procurement of equipment and missiles, Army
Outlays
Total Federal funds Procurement.
See footnotes at end of table.
6,418,900
051
051
051
K
BA
200,000
051
0
11,040
10,000
9,000
0
3,358
2,500
2,500
64,461,777
43,270,976
80,302,586
55,210,500
94,087,779
68,238,100
051
BA
0
8-64
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Military—Con.
Research, Development, Test, and
Evaluation
Federal funds
General and Special Funds:
Research, development,
Army
Appropriation, current
test,
and evaluation,
051
BA
3,609,535
3,884,783
0
3,229,713
3,666,000
"4,792,200
4,364,400
Total Research, development, test, and evaluation, Army
BA
0
3,609,535
3,229,713
3,884,783
3,666,000
4,792,200
4,364,400
6,086,031
Outlays..
Research, development, test, and evaluation, Navy
051
Appropriation, current
BA
5,808,231
Reappropriation
Outlays
BA
0
19,495
5,240,315
5,900,700
Total Research, development, test, and evaluation, Navy
BA
0
5,827,726
5,240,315
6,086,031
5,900,700
Research, development, test, and evaluation, Air
Force
051
Appropriation, current
BA
8,859,710
10,625,561
Reappropriation
Outlays
* 8,181,043
8,181,043
7,138,900
* 13,652,273
BA
0
12,358
7,794,204
9,870,300
12^257^000
Total Research, development, test, and evaluation, Air Force
BA
0
8,872,068
7,794,204
10,625,561
9,870,300
13,652,273
12,257,000
Research, development, test, and evaluation, Defense
agencies
051
Appropriation, current
BA
1,697,646
2,153,189
1,419,975
1,943,200
"2,939,900
2,518,800
1,697,646
1,419,975
2,153,189
1,943,200
2,939,900
2,518,800
BA
53,000
55,000
0
44,781
49,800
BA
0
53,000
44,781
55,000
49,800
"56,800
53,000
56,800
53,000
Total Federal funds Research, Development,
Test, and Evaluation
BA
0
20,059,975
17,728,988
22,804,564
21,430,000
29,622,216
26,332,100
Outlays..
Total Research, development, test, and evaluation, Defense agencies
BA
0
Director of test and evaluation, Defense
Appropriation, current
051
Outlays..
Total Director of test and evaluation, Defense
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-65
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Military—Con.
Military Construction
Federal funds
General and Special Funds:
Military construction, Army
Appropriation, current
051
BA
950,701
929,720
0
802,345
905,900
BA
0
950,701
802,345
929,720
905,900
BA
1,451,393
1,080,750
0
777,926
1,196,700
118,000
^ 1,225,700
1,121,600
BA
0
1,451,393
777,926
1,080,750
1,196,700
1,343,700
1,121,600
BA
1,558,451
1,551,414
0
809,302
1,307,400
68,990
* 2,231,910
1,548,000
BA
0
1,558,451
809,302
1,551,414
1,307,400
2,300,900
1,548,000
BA
299,490
339,770
0
220,690
260,700
BA
0
299,490
220,690
339,770
260,700
Appropriation, current
BA
345,000
325,000
Outlays
O
111,452
180,000
* 150,000
240,000
345,000
111,452
325,000
180,000
150,000
240,000
BA
67,658
54,958
0
29,929
58,900
Total Military construction, Army National Guard. BA
0
67,658
29,929
54,958
58,900
Outlays
Total Military construction, Army
Military construction, Navy
Appropriation, current
41,890
*l,333,110
940,300
1,375,000
940,300
051
Outlays
Total Military construction, Navy
Military construction, Air Force
Appropriation, current
051
Outlays
Total Military construction, Air Force
Military construction, Defense agencies
Appropriation, current
051
Outlays
Total Military construction, Defense agencies
* 398,400
260,400
398,400
260,400
North Atlantic Treaty Organization infrastructure
051
Total North Atlantic Treaty Organization infrastructure
BA
0
Military construction, Army National Guard
Appropriation, current
Outlays
See footnotes at end of table.
380-000
0 - 8 3 - 2 6
: QL 3
051
* 55,300
60,700
55,300
60,700
8-66
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Military—Con,
Military Construction—Con.
Military construction, Air National Guard
Appropriation, current
051
BA
105,140
127,900
0
73,032
100,300
* 79,900
109,600
Total Military construction, Air National Guard.... BA
0
105,140
73,032
127,900
100,300
79,900
109,600
BA
65,173
41,800
0
47,972
51,500
* 52,700
46,300
BA
0
65,173
47,972
41,800
51,500
52,700
46,300
BA
36,000
25,200
0
29,881
30,700
* 24,800
27,700
BA
0
36,000
29,881
25,200
30,700
24,800
27,700
BA
37,400
35,600
19,951
31,800
* 42,200
38,100
Outlays..
Military construction, Army Reserve
Appropriation, current
051
Outlays..
Total Military construction, Army Reserve
Military construction, Naval Reserve
Appropriation, current
051
Outlays
Total Military construction, Naval Reserve
Military construction, Air Force Reserve
Appropriation, current
051
Outlays..
Total Military construction, Air Force Reserve
BA
0
37,400
19,951
35,600
31,800
42,200
38,100
Total Federal funds Military Construction
BA
0
4,916,406
2,922,480
4,512,112
4,123,900
5,822,900
4,392,700
Family Housing
Federal funds
General and Special Funds:
Family housing, Army
Appropriation, current
051
Outlays..
Total Family housing, Army
Family housing, Navy
Appropriation, current
Outlays..
Total Family housing, Navy
See footnotes at end of table.
BA
966,686
0
913,400
* 1,240,939
1,125,700
BA
0
966,686
913,400
1,240,939
1,125,700
BA
708,293
0
641,000
* 675,744
652,200
BA
0
708,293
641,000
675,744
652,200
051
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-67
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Defense-Military—Con.
Family Housing—Con.
Family housing, Air Force
Appropriation, current
051
BA
Outlays
Total Family housing, Air Force
Family housing, Defense agencies
Appropriation, current
783,800
895,800
836,100
BA
0
839,636
783,800
895,800
836,100
BA
14,313
0
16,400
* 19,744
18,100
BA
0
14,313
16,400
19,744
18,100
051
Outlays
Total Family housing, Defense agencies
Family housing, Defense
Appropriation, current
Reappropriation
Outlays
A
0
051
Total Family housing, Defense
BA
BA
0
2,198,745
1,992
1,990,601
BA
0
2,200,737
1,990,601
BA
BA
0
2,000
427
2,283
2,000
800
3,300
600
3,300
BA
0
BA
0
2,427
2,283
2,203,164
1,992,884
2,800
3,300
2,531,728
2,357,900
600
3,300
2,832,827
2,635,400
BA
3,083
3,800
3,522
700
* 3,050
900
3,083
3,522
3,800
700
3,050
900
-4
-3
_2
Public Enterprise Funds:
Homeowners assistance fund, Defense
Appropriation, current
Authority to borrow, permanent, indefinite
Outlays
051
Total Homeowners assistance fund, Defense
Total Federal funds Family Housing
Special Foreign Currency Program
Federal funds
General and Special Funds:
Special foreign currency program
Appropriation, current
051
Outlays..
Total Special foreign currency program
BA
0
Revolving and Management Funds
Federal funds
Public Enterprise Funds:
Defense production guarantees
Outlays
Laundry service, Naval Academy
Outlays
See footnotes at end of table.
051
051
70
8-68
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Defense-Military—Con.
Revolving and Management Funds—Con.
Intragovernmental Funds:
Army stock fund
Appropriation, current
Contract authority, permanent, indefinite
Outlays
051
Total Army stock fund
Navy stock fund
Appropriation, current
Contract authority, permanent, indefinite
Outlays
See footnotes at end of table.
408,600
183,200
388,400
BA
0
291,520
75,103
221,138
183,200
408,600
388,400
BA
BA
0
9,435
541,254
160,907
354,372
682,869
853,600
356,700
BA
0
550,689
160,907
354,372
853,600
682,869
356,700
BA
BA
0
13,334
68,019
10,494
11,812
22,280
26,800
14,200
BA
0
81,353
10,494
11,812
26,800
22,280
14,200
BA
0
78,800
158,748
161,600
329,300
1,638,325
404,000
BA
BA
0
69,000
1,422,701
61,072
160,500
47,000
-1,074,000
377,100
BA
0
1,491,701
61,072
160,500
-1,074,000
47,000
377,100
0
-21,566
-9,200
-76,500
0
41,194
20,800
-175,600
0
-7,911
-3,000
7,300
0
182,275
-110,400
-216,100
0
79,507
6,400
6,000
o
o
7,394
-6,400
-12,880
12,900
051
051
Total Defense stock fund
Army industrial fund
Outlays
Navy industrial fund
Outlays
Marine Corps industrial fund
Outlays
Air Force industrial fund
Outlays
Defense industrial fund
Outlays
Army management fund
Outlays
Navy management fund
Outlays
Air Force management fund
Outlays
221,138
051
Total Marine Corps stock fund
Air Force stock fund
Appropriation, current
Outlays
Defense stock fund
Appropriation, current
Contract authority, permanent, indefinite
Outlays
176,300
115,220
75,103
051
Total Navy stock fund
Marine Corps stock fund
Appropriation, current
Contract authority, permanent, indefinite
Outlays
BA
BA
0
051
051
051
051
051
051
051
051
0
2
103
2
.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-69
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Military—Con.
Revolving and Management Funds—Con.
Army conventional ammunition working capital
fund
051
Outlays
0
Total Federal funds Revolving and Management
Funds
BA
0
-40,910
-106,700
-65,500
2,494,063
693,495
909,422
123,400
2,799,074
1,020,000
Allowances
Federal funds
General and Special Funds:
Other legislation
Appropriation, current
Outlays
Supplemental for later transmittal
Appropriation, current
Outlays
Proposed rescissions for later transmittal
Appropriation, current
Outlays
051
y
BA
0
22,100
'22,100
051
BA
0
'1,607,800
'231,800
'679,800
BA
0
' -650,000
'-124,500
'-295,300
BA
0
957,800
107,300
22,100
406,600
051
Total Federal funds Allowances
Trust Funds
Trust funds
Department of the Army trust funds
051
Appropriation, permanent, indefinite
Outlays
Department of the Navy trust funds
051
Appropriation, permanent, indefinite
Outlays
Department of the Air Force general gift fund 051
Appropriation, permanent, indefinite
Outlays
Surcharge collections, sales of commissary stores,
Army
051
Outlays
Department of the Navy trust revolving funds 051
Outlays
Department of the Air Force trust revolving funds
051
Outlays
Total Trust funds Trust Funds
Summary
Federal funds:
(As shown in detail above)
See footnotes at end of table.
BA
0
BA
0
BA
0
313
119
18,807
17,063
78
49
100
80
18,340
18,270
60
50
100
90
19,335
19,355
65
55
0
-4,736
2,400
3,600
0
6,363
5,800
-1,900
0
2,700
2,200
BA
0
19,198
18,962
104
18,500
29,300
19,500
23,400
BA
0
214,465,580
183,564,859
239,921,008
209,435,400
273,924,546
239,120,500
8-70
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Military—Con.
Summary—Con.
Deductions for offsetting receipts:
Intrafund transactions
051
BA
43
0
Proprietary receipts from the public
051
Total Federal funds
Trust funds:
(As shown in detail above)
Interfund transactions
BA
BA
0
213,749,579
182,848,858
239,406,108
208,920,500
273,399,146
238,595,100
BA
0
19,198
18,962
18,500
29,300
19,500
23,400
213,751,284
182,850,327
239,407,108
208,932,300
273,400,146
238,600,000
051 BA
Total Department of Defense-Military
BA
0
Department of Defense-Civil
Cemeterial Expenses, Army
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
705
Outlays
Total Salaries and expenses
BA
4,555
6,682
C
45
8>203
0
7,268
6,650
8,100
BA
0
4,555
7,268
6,750
6,650
8,203
8,100
BA
0
137,225
130,385
129,042
129,000
110,400
110,400
BA
1,429,992
905,700
0
1,452,572
1,421,405
^-140,000
1,218,550
BA
0
1,429,992
1,452,572
1,281,405
1,218,550
905,700
945,800
Corps of Engineers-Civil
Federal funds
General and Special Funds:
General investigations
Appropriation, current
Outlays
Construction, general
Appropriation, current
Outlays
Total Construction, general
See footnotes at end of table.
301
301
945,800
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-71
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
1,023,667
110,000
c
6,205
D
7,415
£
80
1,037,700
^110,000
1,161,300
Department of Defense-Civil—Con.
Corps of Engineers-Civil—Con.
Operation and maintenance, general
Appropriation, current
301
BA
Outlays..
980,797
Total Operation and maintenance, general
Flood control and coastal emergencies
Appropriation, current
Outlays
General expenses
Appropriation, current
1,025,355
980,797
1,147,367
1,147,700
1,161,300
1,161,300
BA
0
40,000
36,806
29,877
27,000
10,000
20,000
BA
96,000
96,000
3,900
103,000
0
83,850
100,100
103,000
BA
0
96,000
83,850
100,100
100,100
103,000
103,000
BA
256,310
290,000
0
246,755
263,052
30,000
263,052
^ 30,000
256,310
246,755
293,052
293,052
290,000
276,000
BA
0
4,784
4,873
4,942
4,942
6,000
6,000
BA
0
5,849
1,564
1,848
6,015
1,948
1,848
BA
0
6,342
5,207
5,552
6,342
5,752
5,552
BA
0
12,191
6,771
7,400
12,357
7,700
7,400
0
30,641
2,000
BA
0
191
191
D
301
Outlays
Total Flood control, Mississippi River and tributaries
BA
0
A
301
852
Intragovernmental Funds:
Trust funds
Inland waterways trust fund
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
276,000
303
Total Permanent appropriations..
Revolving fund
Outlays
1,161,300
BA
0
301
Total General expenses
Special recreation use fees
Appropriation, current
Outlays
Permanent appropriations:
(Water resources)
(Appropriation, permanent, indefinite)
(Outlays)
(Other general purpose fiscal assistance)
(Appropriation, permanent, indefinite)
(Outlays)
A
301
Outlays
Flood control, Mississippi River and tributaries
Appropriation, current
1,025,355
301
301
8-72
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Civil—Con.
Corps of Engineers-Civil—Con.
Rivers and harbors contributed funds
Appropriation, permanent, indefinite
Outlays
301
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
62,876
65,380
70,000
70,000
71,000
71,000
BA
0
3,001,857
2,973,450
2,993,185
2,934,701
2,594,100
2,629,900
~~]
~4
~5
-28,021
-30,070
271
BA
0
qnn
DA
Q
301
JA
'-225,000
303
BA
0
'-18,000
908
f
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
-26,398
-5,406
-6,975
BA
0
2,970,052
2,941,645
2,958,188
2,899,704
2,315,108
2,350,908
BA
0
63,067
65,571
70,000
70,000
71,000
71,000
301 BA
_
^
_
^
QA
Total Trust funds
BA
0
Total Corps of Engineers-Civil
BA
0
-7,925
_
J
191
2,695
2,970,243
2,944,340
/ j m
-213,000
-213,000
-213,000
2,958,188
2,899,704
2,102,108
2,137,908
Ryukyu Islands, Army
Summary
Federal funds:
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Ryukyu Islands, Army
See footnotes at end of table.
800
BA
Q
—410
—410
—410
BA
0
-410
-410
-410
-410
-410
-410
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-73
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Defense-Civil—Con.
Soldiers' and Airmen's Home
Trust funds
Operation and maintenance
Appropriation, current
705
Outlays
Total Operation and maintenance
Capital outlays
Appropriation, current
Outlays
Payment of claims
Appropriation, permanent, indefinite
Outlays
Soldiers' and Airmen's Home revolving fund
Outlays
Summary
Federal funds:
Deductions for offsetting receipts:
Proprietary receipts from the public
24,421
29,524
23,359
26,718
D
341
26,073
0
BA
24,421
27,059
29,524
0
23,359
26,073
28,440
28,440
705
BA
0
953
953
1,250
1,250
5
5
5
5
705
BA
0
705
0
-38
705 BA
0
~J
~1
~]
BA
- 1
- 1
- 1
0
-1
-1
-\
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
BA
0
25,374
23,321
27,064
27,031
30,779
29,695
705 BA
r\
' Total Trust funds
Total Soldiers' and Airmen's Home
—0,0/J
—Qflijir
—QfdcD
BA
21,795
22,925
26,454
0
19,742
22,892
25,370
BA
21,794
22,924
26,453
0
19,741
22,891
25,369
Wildlife Conservation, Military Reservations
Federal funds
General and Special Funds:
Wildlife conservation
Appropriation, permanent, indefinite
Outlays
Summary
Federal funds:
(As shown in detail above)
See footnotes at end of table.
303
BA
0
1,244
1,172
1,514
1,475
1,570
1,580
BA
1,244
1,514
1,570
0
1,172
1,475
1,580
8-74
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department o f Defense-Civil—Con.
Wildlife Conservation, Military
Reservations—Con.
Deductions for offsetting receipts:
Proprietary receipts from the public
300 BA
0
Total Wildlife Conservation, Military Reservations
0
-1,244
-1,514
-1,570
-72
-39
10
3,007,656
2,981,890
3,001,449
2,942,826
2,603,873
2,639,580
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts.Proprietary receipts from the public
BA
0
271 BA
0
300 BA
0
BA
O
301 BA
O
303 BA
0
705 BA
0
800 BA
0
908 BA
0
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
-4
-5
-27,642
-29,535
-31,640
J
J
3
8
J
-225,000
J
-16,000
-1
-1
-1
-410
-410
-410
-5,406
-6,975
-7,925
BA
0
2,974,196
2,948,430
2,964,527
2,905,904
2,322,900
2,358,607
BA
0
88,441
88,892
97,064
97,031
101,779
100,695
301 BA
705
_l
0
BA
0
BA
0
-62,876
-70,000
-71,000
J
-3,579
-4,139
-213,000
-4,325
Total Trust funds
BA
0
21,986
22,437
22,925
22,892
-186,546
-187,630
Total Department of Defense-Civil
BA
O
2,996,182
2,970,867
2,987,452
2,928,796
2,136,354
2,170,977
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-75
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Education Activities
Office of Elementary and Secondary
Education
Federal funds
General and Special Funds:
Compensatory education for the disadvantaged 501
Appropriation, current
BA
3,167,894
^ —133,925
3,031,447
"-7,885
3,121,918
"-105,812
3,040,980
2,954,438
3,033,969
3,023,562
3,013,969
3,016,106
BA
456,200
480,200
"-5,000
465,000
BA
0
9,600
546,299
576,220
"-3,800
499,845
"-1,150
BA
0
465,800
546,299
475,200
572,420
465,000
498,695
BA
536,880
534,500
"-56,639
478,879
0
751,130
514,107
"-6,230
50,000
537,347
"-39,082
^5,500
BA
0
536,880
751,130
477,861
507,877
528,879
503,765
BA
77,852
1,243
0
78,353
67,247
"-16,128
81,085
"-7,258
38,787
"-8,064
BA
0
77,852
78,353
51,119
73,827
1,243
30,723
Total Federal funds Office of Elementary and
Secondary Education
BA
0
4,121,512
4,330,220
4,038,149
4,177,686
4,009,091
4,049,289
Outlays
0
Total Compensatory education for the disadvantaged
BA
0
Impact aid
Appropriation, current
Total Impact aid
501
Outlays
Total Special programs and populations
Indian education
Appropriation, current
Outlays
Total Indian education
See footnotes at end of table.
2,954,438
3,013,969
501
Reappropriation
Outlays
Special programs and populations
Appropriation, current
3,040,980
J
501
8-76
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Education Activities—Con.
Office of Bilingual Education and Minority
Languages Affairs
Federal funds
General and Special Funds:
Bilingual education
Appropriation, current
501
BA
138,058
0
167,114
BA
0
138,058
167,114
94,534
139,346
94,534
122,255
BA
1,068,580
1,110,252
0
1,141,444
1,128,274
1,035,180
K
75,072
1,160,006
BA
0
1,068,580
1,141,444
1,110,252
1,128,274
1,110,252
1,160,006
Appropriation, current
BA
952,171
1,036,727
Outlays
0
779,699
1,037,651
1,036,727
213,466
^ 798,280
Total Rehabilitation services and handicapped
research
BA
0
952,171
779,699
1,036,727
1,037,651
1,036,727
1,011,746
Total Federal funds Office of Special Education
and Rehabilitative Services
BA
0
2,020,751
1,921,143
2,146,979
2,165,925
2,146,979
2,171,752
BA
735,025
816,500
BA
0
7,161
817,544
7,161
772,820
492,839
7,161
780,700
^ 19,714
BA
0
742,186
817,544
823,661
772,820
500,000
800,414
Outlays
Total Bilingual education
138,057
-43,523
141,063
^ —1,717
94,534
H
H
154,039
-31,784
Office of Special Education and
Rehabilitative Services
Federal funds
General and Special Funds:
Education for the handicapped
Appropriation, current
501
Outlays
Total Education for the handicapped
Rehabilitation services and handicapped research
506
J
Office of Vocational and Adult Education
Federal funds
General and Special Funds:
Vocational and adult education
Appropriation, current
Appropriation, permanent
Outlays
Total Vocational and adult education
See footnotes at end of table.
501
J
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-77
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Education Activities—Con.
Office of Postsecondary Education
r
funds
General and Special Funds:
Student financial assistance
Appropriation, current
502
Outlays
Total Student financial assistance
Guaranteed student loans
Appropriation, current
BA
3,569,480
3,567,800
0
2,732,467
3,635,231
BA
0
3,569,480
2,732,467
3,567,800
3,635,231
BA
3,073,846
3,100,500
"-900,000
J
854,000
2,713,800
3,037,973
M07,070
3,567,800
3,445,043
502
2,168,600
L
3,023,463
2,284,255
-121,500
2,133,547
L
-102,390
BA
0
3,073,846
3,023,463
2,200,500
2,284,255
2,047,100
2,031,157
BA
382,156
204,716
BA
BA
0
2,800
8,067
379,281
394,525
A
4,816
" -68,941
2,800
335
429,733
*385
" -5,515
BA
0
393,023
379,281
333,535
424,603
Higher education facilities loans and insurance 502
Appropriation, current
Appropriation, permanent, indefinite
BA
Outlays
0
11,096
37,783
25,201
20,143
134
21,366
19,846
Total Higher education facilities loans and insurance
BA
0
48,879
25,201
20,277
21,366
19,846
6,119
BA
0
232
36,531
40
21,994
BA
0
232
36,531
40
21,994
-74,205
Total Federal funds Office of Postsecondary Education
BA
0
7,085,460
6,196,943
6,122,152
6,387,449
5,839,462
5,737,180
Outlays..
... 0
Total Guaranteed student loans
Higher education
Appropriation, current
502
Appropriation, permanent
Reappropriation
Outlays
Total Higher education..
373,954
* 3,371
« -48,259
204,716
329,066
Public Enterprise Funds:
College housing loans
Appropriation, permanent, indefinite..
Outlays
Total College housing loans..
See footnotes at end of table.
502
-67,205
*-7,000
8-78
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Education Activities—Con.
Office of Educational Research and
Improvement
Federal funds
General and Special Funds:
Educational research and statistics
Appropriation, current
503
82,201
,
64,203
"-6,225
101,346
H
-3,486
74,222
"-2,490
BA
0
61,979
82,201
57,978
97,860
56,978
71,732
BA
0
80,080
101,437
80,320
135,426
48,347
Total Federal funds Office of Educational Research and Improvement
BA
0
142,059
183,638
138,298
233,286
56,978
120,079
21,818
23,090
17,775
23,064
23,570
^-550
21,818
17,775
23,090
23,064
23,040
23,020
BA
0
206,682
207,700
205,410
243,277
225,220
230,911
Total Payments to special institutions
BA
0
228,500
225,475
228,500
266,341
248,260
253,931
Total Federal funds Special Institutions
BA
0
228,500
225,475
228,500
266,341
248,260
253,931
Salaries and expenses:
(Elementary, secondary and vocational education)
501
(Appropriation, current)
BA
(Outlays)
0
45,682
45,045
45,874
48,737
43,639
42,450
Outlays
Total Educational research and statistics
Libraries
Appropriation, current
Outlays
BA
61,979
0
56,978
503
Special Institutions
Federal funds
General and Special Funds:
Payments to special institutions:
(Elementary, secondary, and vocational education)
501
(Appropriation, current)
BA
(Outlays)
0
Total (Elementary, secondary, and vocational
education)
BA
0
(Higher education)
(Appropriation, current)
(Outlays)
y
23,590
-550
502
Departmental Management
Federal funds
General and Special Funds:
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-79
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Education Activities—Con.
Departmental
Management—Con.
(Higher education)
(Appropriation, current)
(Outlays)
(Research and general education aids)
(Appropriation, current)
(Outlays)
(Social services)
(Appropriation, current)
(Outlays)
(Federal law enforcement activities)
(Appropriation, current)
(Outlays)
502
BA
0
105,138
102,960
111,904
116,039
133,253
132,068
BA
0
45,683
45,046
44,038
46,416
41,654
42,451
BA
0
21,927
21,450
20,184
20,887
19,836
18,867
BA
0
57,032
51,225
275,462
265,726
57,708
57,901
279,708
289,980
56,453
56,929
294,835
292,765
960
943
516
939
1,750
1,110
379
1,922
1,515
960
1,322
516
2,861
1,750
2,625
97
18
276,422
267,048
53
99
280,224
292,841
90
296,585
295,390
BA
0
97
147
53
99
90
BA
0
14,754,948
14,109,125
13,872,497
14,435,694
13,191,889
13,550,290
-28,141
-37,226
-52,517
-822
-2,299
-1,602
13,832,972
14,396,169
13,137,770
13,496,171
503
506
751
Total Salaries and expenses
BA
0
Education and research overseas:
(Special foreign currency program) (Research and
general education aids)
503
(Appropriation, current)
BA
(Outlays)
0
(Special foreign currency program)
(Social
services)
506
(Outlays)
0
Total Education and research overseas
BA
0
Trust funds
Special statistical compilations and surveys
Outlays
Contributions
Appropriation, permanent, indefinite
Outlays
503
0
129
503
BA
0
Total Federal funds Departmental Management... BA
0
Total Trust funds Departmental Management
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts.Proprietary receipts from the public
Total Federal funds
... .
500 BA
0
908 BA
0
BA
0
See footnotes at end of table.
14,725,985
14,080,162
8-80
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional cocki
1984
estimate
1983
estimate
Education Activities—Con.
Summary—Con.
Trust funds:
(As shown in detail above)
Total Education Activities
BA
0
97
147
53
99
90
BA
0
14,726,082
14,080,309
13,833,025
14,396,268
13,137,770
13,496,261
Energy Activities
Atomic Energy Defense Activities
Federal funds
General and Special Funds:
Atomic energy defense activities
Appropriation, current
Outlays
053
BA
0
4,737,454
4,308,558
5,700,000
5,471,035
6,778,075
6,422,180
BA
0
529,360
507,443
535,358
547,123
645,250
633,550
BA
0
2,302,586
2,560,234
2,432,737
2,379,215
2,094,645
2,251,619
BA
0
1,806,000
1,248,420
1,834,319
1,866,150
40,000
BA
0
417,737
652,459
217,514
450,000
94,000
277,000
BA
0
213,142
259,081
222,000
257,110
266,100
268,171
BA
0
145,800
517,824
279,290
661,900
74,377
320,000
0
10,178
BA
0
145,800
528,002
279,290
661,900
74,377
320,000
BA
0
191,432
190,700
242,118
283,857
158,770
227,600
Energy Programs
Federal funds
General and Special Funds:
General science and research activities
Appropriation, current
Outlays
Energy supply, R&D activities
Appropriation, current
Outlays
Uranium supply and enrichment activities
Appropriation, current
Outlays
Fossil energy research and development
Appropriation, current
Outlays
Naval petroleum and oil shale reserves
Appropriation, current
Outlays
Energy conservation:
(Energy conservation)
(Appropriation, current)
(Outlays)
(Area and regional development)
(Outlays)
251
271
271
271
271
272
452
Total Energy conservation
Strategic petroleum reserve
Appropriation, current
Outlays
See footnotes at end of table.
274
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-81
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional c<xJe
1983
estimate
1984
estimate
Energy Activities—Con.
Energy Programs—Con.
Energy Information administration
Appropriation, current
276
BA
78,919
0
50,800
75,170
56,400
fl
946
60,386
BA
0
78,919
75,170
57,346
60,386
50,800
51,200
Appropriation, current
BA
21,416
35,106
"875
22,591
Reappropriation
Outlays
BA
0
3,000
65,037
51,592
25,176
Total Emergency preparedness and energy regulation
BA
0
24,416
65,037
35,981
51,592
22,591
25,176
34,582
Outlays..
Total Energy information administration
51,200
Emergency preparedness and energy regulation
276
Federal Energy Regulatory Commission
Appropriation, current
276
BA
Outlays..
Total Federal Energy Regulatory Commission
Geothermal resources development fund
Appropriation, current
Outlays
Alternative fuels production
Outlays
Payments to states under Federal Power Act
Appropriation, permanent
Outlays
Nuclear waste disposal fund
Appropriation, current
Outlays
852
Trust funds
Advances for cooperative work
Appropriation, permanent, indefinite
Outlays
271
76,177
0
79,917
76,839
2,988
80,890
BA
0
76,177
79,917
79,827
80,890
34,582
33,314
BA
0
2,200
2,200
2,100
2,100
D
33,314
271
271
0
BA
0
271
1,789
39,213
1,039
385
BA
0
23,491
544
1,045
570
544
145,677
306,675
277,271
BA
0
-1,100
22,148
24,000
34,000
Total Federal funds Energy Programs
BA
0
5,788,808
6,207,850
5,937,034
6,810,636
3,750,460
4,407,545
Total Trust funds Energy Programs
BA
0
-1,100
22,148
24,000
34,000
See footnotes at end of table.
380-000 0 -
83 -
2 7 : QL 3
8-82
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Energy Activities—Con.
Power Marketing Administration
Federal funds
General and Special Funds:
Operation and maintenance, Alaska Power Administration
271
Appropriation, current
BA
Outlays
0
3,538
3,720
3,945
3,090
3,210
3,210
BA
BA
0
275,570
56,393
249,500
205,500
50,900
324,500
-60,500
BA
0
275,570
56,393
455,000
50,900
324,500
-60,500
BA
0
7,237
3,748
3,964
7,090
20,594
19,566
Public Enterprise Funds:
Bonneville Power Administration fund
Authority to borrow, current
Authority to borrow, permanent, indefinite
Outlays
271
Total Bonneville Power Administration fund
General and Special Funds:
Operation and maintenance, Southeastern Power Administration
271
Appropriation, current
Outlays
Continuing fund, Southeastern Power Administration
271
Appropriation, permanent
Outlays
BA
0
50
104
General and Special Funds:
Operation and maintenance, Southwestern Power Administration
271
Appropriation, current
Outlays
Construction, rehabilitation, operation and maintenance, Western Area Power Administration
271
Appropriation, current
Outlays
Emergency fund, Western Area Power Administration
271
Appropriation, current
Outlays
BA
0
12,269
22,667
20,756
36,690
36,229
36,229
BA
0
210,774
112,511
149,750
216,463
219,630
186,500
BA
0
500
71
337
337
500
500
Public Enterprise Funds:
Colorado river basins power marketing fund, Western
Area Power Administration
271
Outlays
0
Total Federal funds Power Marketing Administration
BA
0
-3,331
-5,000
-5,000
509,938
195,883
633,752
309,570
604,663
180,505
362,139
345,496
379,902
351,405
141,872
141,872
Departmental Administration
Federal funds
General and Special Funds:
Departmental administration
Appropriation, current
Outlays
See footnotes at end of table.
276
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-83
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Energy Activities—Con.
Departmental Administration—Con.
Special foreign currency program
Outlays
271
0
312
Total Federal funds Departmental Administration. BA
0
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
270 BA
379,902
351,405
141,872
141,872
11,398,339
11,058,099
12,650,688
12,942,646
11,275,070
11,152,102
_mQ
_JJJg5
_g]m
-3,993,849
-2,230,599
271
Q A -3,261,406
276
JA
-136,350
-142,541
300
JA
-11,052
-16,942
908
I"
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
362,139
345,808
-611
-611
-611
BA
0
7,918,110
7,577,870
8,418,960
8,710,918
8,944,557
8,821,589
BA
0
-1,100
22,148
24,000
34,000
271
BA
«
Total Trust funds
0
Total Energy Activities
BA
0
See footnotes at end of table.
-18,018
—24,000
-1,100
22,148
10,000
7,918,110
7,576,770
8,418,960
8,733,066
8,944,557
8,831,589
8-84
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services
Health Programs
Public Health Service
Food and Drug Administration
Federal funds
General and Special Funds:
Program expenses
Appropriation, current
554
Outlays
Total Program expenses
Buildings and facilities
Outlays
BA
338,332
0
339,793
BA
0
338,332
339,793
349,130
4
5,000
G
714
356,613
*500
354,844
357,113
385,933
378,995
385,933
378,995
554
0
3,951
0
-290
8,153
12,000
Public Enterprise Funds:
Revolving fund for certification and other services
554
Outlays
Total Federal funds Food and Drug Administration
BA
0
338,332
343,454
354,844
365,266
385,933
390,995
1,231,444
1,082,163
D
4,075
G
1,370
155,040
Health Resources and Services
Administration
Federal funds
General and Special Funds:
Health resources and services:
(Health care services)
(Appropriation, current)
551
BA
L
(Outlays)
0
1,545,563
1,256,884
-720
609,314
^ —720
Total (Health care services)
BA
0
1,231,444
1,545,563
1,087,608
1,256,884
154,320
608,594
(Health research)
(Outlays)
. See footnotes at end of table.
552
0
171
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-85
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
Total Health resources and services
Indian health
Appropriation, current..
0
378,144
321,005
135,486
K
2,638
178,001
BA
0
238,558
378,144
233,063
321,005
138,124
178,001
BA
0
1,470,002
1,923,878
1,320,671
1,577,889
292,444
786,595
617,805
652,706
588,743
645,583
C
764
D
6,810
G
6,700
654,431
BA
0
617,805
588,743
659,857
654,431
652,706
655,466
65,185
34,700
- 6,700
72,269
47,196
58,352
65,185
28,000
72,269
47,196
551
Outlays
Total Indian health..
655,466
551
DO
Indian health facilities
Appropriation, current..
233,063
DO
Total (Education and training of health care
work force)
238,558
CD
(Outlays)
BA
CQ CD
(Education and training of health care work
force)
553
(Appropriation, current)
CD
Health Resources and Services
Administration—Con.
Outlays
Total Indian health facilitiesEmergency health
58,352
F
054
Outlays
Public Enterprise Funds:
Health professions graduate student loan insurance
fund
553
Outlays
Health education loans
553
Outlays
Nurse training fund
553
Outlays
Medical facilities guarantee and loan fund
551
Appropriation, current
Outlays
See footnotes at end of table.
0
3
0
-208
0
-3,176
0
BA
0
.
-1,950
-1,953
-380
-15
-16
22,000
35,002
32,000
32,840
32,000
31,971
8-86
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
Health Resources and Services
A dministration—Con.
Health maintenance organization loan and loan guarantee fund
551
Appropriation, current, indefinite
BA
Outlays
0
17,500
-701
17,995
1,379
2,185,659
2,608,343
2,040,528
2,353,462
977,150
1,520,638
BA
237,880
215,403
(Outlays)
0
236,376
273,420
D
2,166
G
1,221
300,480
Total (Health care services)
BA
0
237,880
236,376
276,807
300,480
215,403
226,096
BA
62,062
54,620
(Outlays)
0
86,761
56,281
D
770
G
433
67,614
43,534
Total (Health research)
BA
0
62,062
86,761
57,484
67,614
54,620
43,534
Total Disease control
BA
0
299,942
323,137
334,291
368,094
270,023
269,630
Total Federal funds Centers for Disease Control.. BA
0
299,942
323,137
334,291
368,094
270,023
269,630
963,888
996,550
958,135
987,928
965,393
967,782
22,729
19,423
25,441
22,087
23,870
22,213
986,617
1,015,973
983,576
1,010,015
989,263
989,995
Total Federal funds Health Resources and Services Administration
BA
0
Centers for Disease Control
Federal funds
General and Special Funds:
Disease control:
(Health care services)
(Appropriation, current)
(Health research)
(Appropriation, current)
551
226,096
552
National Institutes of Health
Federal funds
General and Special Funds:
National Cancer Institute:
(Health research)
552
(Appropriation, current)
BA
(Outlays)
0
(Education and training of health care work
force)
553
(Appropriation, current)
BA
(Outlays)
0
Total National Cancer Institute
See footnotes at end of table.
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-87
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
'
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
National Institutes of Health—Con.
National Heart, Lung
(Health research)
(Appropriation,
(Outlays)
(Education and
force)
(Appropriation,
(Outlays)
and Blood Institute:
552
current)
training of health care work
553
current)
Total National Heart, Lung and Blood Institute....
National Institute of Dental Research:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute of Dental Research
National Institute of Arthritis, Diabetes, and Digestive
and Kidney Diseases:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute of Arthritis, Diabetes,
and Digestive and Kidney Diseases
National Institute of Neurological and Communicative
Disorders and Stroke:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute of Neurological and Communicative Disorders and Stroke
See footnotes at end of table.
BA
0
534,296
558,856
592,202
583,063
596,446
593,426
BA
0
25,341
26,507
30,543
30,072
31,582
31,385
BA
559,637
622,745
628,028
0
585,363
613,135
624,811
68,071
64,120
74,417
69,353
76,539
74,018
4,443
4,427
4,044
4,725
BA
0
BA
0
3,912
4,311
BA
71,983
78,860
80,583
0
68,431
73,780
78,743
BA
0
349,549
335,431
392,252
391,579
399,286
396,195
BA
0
18,642
20,151
19,930
18,960
20,312
20,074
BA
368,191
412,182
419,598
0
355,582
410,539
416,269
BA
0
257,246
233,346
285,404
277,941
290,827
286,668
BA
0
8,655
9,578
10,315
9,042
10,195
10,265
BA
265,901
295,719
301,022
0
242,924
286,983
296,933
8-88
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
National Institutes of Health—Con.
National Institute of Allergy and Infectious Diseases:
(Health research)
552
(Appropriation, current)
BA
(Outlays)
0
(Education and training of health care work
force)
553
(Appropriation, current)
BA
(Outlays)
0
264,277
249,906
272,175
266,313
9,304
8,798
9,230
9,011
235,895
201,244
273,581
258,704
281,405
275,324
BA
0
292,365
320,851
319,151
314,140
327,361
324,284
BA
0
47,497
52,224
50,410
49,623
47,471
47,058
Total National Institute of General Medical Sciences
BA
0
339,862
373,075
369,561
363,763
374,832
371,342
216,518
234,341
243,410
233,351
246,682
243,918
10,245
9,720
10,666
9,800
226,309
243,678
253,655
243,071
257,348
253,718
123,718
135,019
137,441
133,310
139,107
138,418
Total National Institute of Allergy and Infectious
Diseases
BA
0
National Institute of General Medical Sciences:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
National Institute of Child Health and Human Development:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
BA
0
BA
0
Total National Institute of Child Health and
Human Development
BA
0
National Eye Institute:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Eye Institute
See footnotes at end of table.
BA
0
BA
0
BA
0
228,214
194,698
7,681
6,546
9,791
9,337
3,656
3,140
127,374
138,159
4,120
3,535
141,561
136,845
4,169
3,216
143,276
141,634
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-89
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
National Institutes of Health—Con.
National Institute of Environmental Health Sciences:
(Health research)
552
(Appropriation, current)
(Outlays)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
BA
99,672
157,340
161,679
0
62,298
153,534
159,909
BA
6,598
7,027
5,042
0
4,124
6,857
4,981
Total National Institute of Environmental Health
Sciences
National Institute on Aging:
(Health research)
(Appropriation, current)
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total National Institute on Aging
(Education and training of health care work
force)
553
(Appropriation, current)
(Outlays)
Total Research resources
(Education and training of health care work
force)
553
(Appropriation, current)
Total National Library of Medicine
See footnotes at end of table.
BA
79,422
91,378
93,147
0
86,724
86,880
91,788
BA
2,481
2,618
2,523
0
2,710
2,499
2,338
BA
81,903
93,996
95,670
0
89,434
89,379
94,126
BA
183,473
213,072
227,771
0
181,233
219,079
221,696
BA
0
704
694
732
747
771
756
BA
184,177
213,804
228,542
0
181,927
219,826
222,452
BA
9,205
10,147
11,588
0
9,957
8,348
10,102
552
(Outlays)
(Outlays)
166,721
164,890
552
Outlays
National Library of Medicine:
(Health research)
(Appropriation, current)
164,367
160,391
552
(Outlays)
John E. Fogarty International Center
Appropriation, current
106,270
66,422
552
(Outlays)
Research resources:
(Health research)
(Appropriation, current)
BA
0
BA
12,229
12,267
12,770
0
12,665
11,898
12,453
BA
32,806
33,776
36,846
0
33,975
33,798
35,931
BA
45,035
46,043
49,616
0
46,640
45,696
48,384
8-90
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
National Institutes of Health—Con.
Office of the Director:
(Health research)
552
(Appropriation, current)
BA
(Outlays)
0
(Education and training of health care work
force)
553
(Appropriation, current)
BA
(Outlays)
0
Total Office of the Director
Buildings and facilities
Appropriation, current
Outlays
21,813
22,439
1,805
1,846
22,754
23,938
1,929
1,884
24,782
24,771
2,038
2,034
BA
0
23,618
24,285
24,683
25,822
26,820
26,805
BA
0
9,898
24,830
17,500
13,038
22,780
16,552
3,641,875
3,664,695
4,001,980
3,959,335
4,077,092
4,032,080
432,000
656,017
439,000
492,398
110,311
265,730
291,942
301,126
297,443
340,124
. 323,770
63,277
100,676
37,430
59,264
17,702
34,659
761,007
1,048,635
777,556
849,105
357,826
468,740
6,240
11,880
10,021
552
Intragovernmental Funds:
National Institutes of Health management fund
552
Outlays
Service and supply fund
Outlays
0
-4,891
552
0
Total Federal funds National Institutes of Health. BA
0
1,662
Alcohol, Drug Abuse, and Mental Health
Administration
Federal funds
General and Special Funds:
Alcohol, drug abuse, and mental health:
(Health care services)
551
(Appropriation, current)
BA
(Outlays)
0
(Health research)
552
(Appropriation, current)
BA
(Outlays)
0
(Education and training of health care work
force)
553
(Appropriation, current)
BA
(Outlays)
0
Total Alcohol, drug abuse, and mental health
BA
0
Construction and renovation, Saint Elizabeths Hospital
551
Outlays
:
0
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-91
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
Alcohol, Drug Abuse, and Mental
Health Administration—Con.
Federal subsidy for Saint Elizabeths Hospital
Appropriation, current
Outlays
551
BA
0
95,418
63,120
76,505
86,576
62,744
64,614
Total Federal funds Alcohol, Drug Abuse, and
Mental Health Administration
BA
0
856,425
1,117,995
854,061
947,561
420,570
543,375
78,535
59,162
Office of Assistant Secretary for Health
Federal funds
General and Special Funds:
Public health service management:
(Health care services)
(Appropriation, current)
551
(Outlays)
0
106,680
35,279
G
981
53,815
Total (Health care services)
BA
0
78,535
106,680
36,260
53,815
59,162
57,294
BA
54,807
63,770
65,566
56,715
1,281
57,016
54,807
65,566
133,342
172,246
57,996
57,016
94,256
110,831
63,770
60,628
122,932
117,922
(Health research)
(Appropriation, current)
BA
552
(Outlays)
0
Total (Health research)
BA
0
BA
0
Total Public health service management
Grants to States for health
Appropriation, current
Outlays
Total Grants to States for health
G
BA
1,196,417
165,312
849,781
L
107,452
L
0
BA
0
1,361,729
957,233
BA
0
105,941
98,600
77,102
80,921
Total Retirement pay and medical benefits for
commissioned officers
BA
0
105,941
98,600
77,102
80,921
See footnotes at end of table.
60,628
551
Retirement pay and medical benefits for commissioned
officers
551
Appropriation, current
BA
Indefinite
Outlays
57,294
L
81,777
-2,894
L
84,467
-2,894
78,883
81,573
8-92
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Public Health Service—Con.
Office of Assistant Secretary for
Health—Con.
Scientific activities overseas (special foreign currency
program)
552
Outlays
Intragovernmental Funds:
Service and supply fund
Outlays
0
3,823
0
-1,353
5,364
5,085
551
Trust funds
Miscellaneous trust funds
Appropriation, permanent, indefinite
551
Outlays
Total Federal funds Office of Assistant Secretary
for Health
Total Trust funds Office of Assistant Secretary
for Health
Total Federal funds Public Health Service
BA
8,545
8,124
8,124
0
6,918
8,303
8,196
BA
239,283
171,358
1,563,544
0
273,316
197,116
1,161,813
BA
8,545
8,124
8,124
0
6,918
8,303
8,196
7,561,516
8,330,940
7,757,062
8,190,834
7,694,312
7,918,531
BA
8,545
8,124
8,124
0
6,918
8,303
8,196
BA
0
Total Trust funds Public Health Service
Other Health Programs
Health Care Financing Administration
Federal funds
General and Special Funds:
Grants to States for Medicaid
Appropriation, current
551
BA
18,013,821
14,794,512
L
Outlays
Total Grants to States for Medicaid
Payments to health care trust funds
Appropriation, current
Outlays
Total Payments to health care trust funds
See footnotes at end of table.
21,037,878
-300,300
0
17,390,734
19,333,069
^-7,000
21,092,233
^ —293,300
BA
18,013,821
14,794,512
20,737,578
0
17,390,734
19,326,069
20,798,933
BA
14,338,000
15,347,000
17,291,000
0
14,338,012
15,347,000
J
82,000
17,291,000
^82,000
BA
14,338,000
15,347,000
17,373,000
0
14,338,012
15,347,000
17,373,000
551
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-93
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Health Programs—Con.
Other Health Programs—Con.
Health Care Financing
Con.
Administration-
Program management:
(Health care services)
(Appropriation, current)
551
BA
69,795
0
54,798
72,905
1,654
74,559
63,038
D
(Outlays)
Total (Health care services)
(Health research)
(Appropriation, current)
(Outlays)
63,038
BA
69,795
74,559
63,038
0
54,798
74,559
63,038
BA
0
11,500
30,305
20,000
20,000
20,000
20,000
BA
81,295
94,559
83,038
0
85,103
94,559
83,038
552
Total Program management
Trust funds
Federal hospital insurance trust fund
Appropriation, current
Appropriation, permanent, indefinite
Outlays
551
BA
BA
0
J
37,610,687
34,864,031
360,000
44,103,000
45,342,561
28,025,700
39,297,352
J
~ 1,031,227
Total Federal hospital insurance trust fund
Federal supplementary medical insurance
fund
Appropriation, current
Appropriation, permanent, indefinite
Total Federal supplementary medical insurance
trust fund
Total Federal funds Health Care Financing Administration
Total Trust funds Health Care Financing Administration
Total Trust funds Health Programs
See footnotes at end of table.
37,610,687
28,025,700
44,463,000
34,864,031
39,297,352
44,311,334
BA
BA
17,626,989
0
15,558,821
trust
551
Outlays
Total Federal funds Health Programs
BA
0
J
-129,000
19,199,000
18,065,024
~ 100,000
J
J
-22,000
21,897,000
J
21,194,115
-824,819
BA
17,626,989
19,070,000
21,875,000
0
15,558,821
17,965,024
20,369,296
BA
32,433,116
30,236,071
38,193,616
0
31,813,849
34,767,628
38,254,971
BA
0
55,237,676
50,422,852
47,095,700
57,262,376
66,338,000
64,680,630
BA
39,994,632
37,993,133
45,887,928
0
40,144,789
42,958,462
46,173,502
BA
55,246,221
47,103,824
66,346,124
0
50,429,770
57,270,679
64,688,826
8-94
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Social Security Administration
Federal funds
General and Special Funds:
Payments to social security trust funds
Appropriation, current
601
Outlays
Total Payments to social security trust funds
Special benefits for disabled coal miners
Appropriation, current
Outlays
Supplemental security income program
Appropriation, current
Total Assistance payments program
Total Child support enforcement
Total Low income home energy assistance
See footnotes at end of table.
843,515
BA
0
843,658
843,515
20,755,213
20,755,213
418,583
418,583
BA
0
1,099,065
1,091,774
1,093,000
1,088,000
1,027,047
1,032,047
BA
7,769,436
0
7,676,650
8,458,616
L
85,000
8,760,297
L
85,000
BA
0
7,769,436
7,676,650
8,543,616
8,845,297
7,851,518
7,850,118
BA
6,006,179
7,751,448
G
500
7,816,406
0
7,989,656
7,766,790
-722,000
7,816,406
^ —722,000
BA
0
6,006,179
7,989,656
7,751,948
7,766,790
7,094,406
7,094,406
7,510,618
340,900
7,509,218
^340,900
L
L
609
Outlays
Outlays
838,583
-420,000
838,583
^-420,000
J
609
Outlays
Low income home energy assistance
Appropriation, current
0
855,213
19,900,000
855,213
•'19,900,000
J
609
Total Supplemental security income program
Child support enforcement
Appropriation, current
843,658
601
Outlays
Assistance payments program
Appropriation, current
BA
BA
471,000
426,463
-10,000
445,650
L
-10,000
0
456,377
BA
0
471,000
456,377
416,463
435,650
1,975,000
A
11,000
1,960,284
A
2,750
1,300,000
1,986,000
1,963,034
1,300,000
1,398,250
L
609
BA
1,875,000
0
1,687,147
BA
0
1,875,000
1,687,147
1,390,000
^8,250
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-95
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Social Security Administration—Con.
Refugee and entrant assistance
Appropriation, current
609
BA
Outlays
Total Refugee and entrant assistance
0
1,011,251
585,000
-6,500
631,552
BA
0
689,070
1,011,251
578,500
631,552
Payments to states from receipts for child support
609
Appropriation, permanent
BA
Outlays
0
689,070
F
571
526
485,328
485,328
520,676
520,676
450
566
450
450
Trust funds
Federal old-age and survivors insurance trust fund
601
Appropriation, current
Appropriation, permanent, indefinite
Outlays
BA
BA
0
J
20,500,000
145,502,521
154,443,217
126,629,045
137,928,747
J
-1,856,000
Total Federal old-age and survivors insurance
trust fund
BA
0
Federal disability insurance trust fund
Appropriation, permanent, indefinite
Outlays
J
10,383,117
139,163,780
142,768,375
' 23,764,713
J
-3,716,000
126,629,045
137,928,747
166,002,521
152,587,217
149,546,897
162,817,088
21,398,044
18,035,351
18,667,992
18,103,296
J
- 200,000
(3,408,451)
D
(103,434)
26,395,803
18,367,473
'-424,000
(3,723,317)
601
BA
0
Limitation on administrative expenses
(3,131,000)
Total Federal disability insurance trust fund
BA
0
21,398,044
18,035,351
18,667,992
17,903,296
26,395,803
17,943,473
Total Federal funds Social Security Administration
BA
O
18,282,979
20,300,519
41,179,727
41,506,829
18,593,795
18,750,180
Total Trust funds Social Security Administration.. BA
0
148,027,089
155,964,098
184,670,513
170,490,513
175,942,700
180,760,561
2,400,000
2,567,499
2,450,000
2,570,664
2,500,000
2,500,000
Human Development Services
Federal funds
General and Special Funds:
Social services block grant
Appropriation, current
Outlays
See footnotes at end of table.
506
BA
0
8-96
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Human Development Services—Con.
Human development services
Appropriation, current
506
Outlays
Total Human development services
Human resources research and demonstration
Appropriation, current
Outlays
Family social services
Appropriation, current
Outlays
Work incentives
Appropriation, current
Outlays
Community services
Appropriation, current
BA
1,717,740
2,193,446
1,636,672
1,717,740
1,636,672
1,765,535
G
1,414
1,752,624
1,766,949
1,752,624
0
BA
0
BA
0
21,999
28,525
21,999
23,193
9,250
21,225
BA
0
464,949
389,450
560,149
565,104
601,496
589,805
BA
0
280,760
234,541
270,760
314,668
26,376
BA
365,817
100,309
2,852
100,309
2,032,050
2,193,446
2,032,050
506
506
504
506
Outlays
Total Community services
0
253,038
360,500
^ —1,414
370,325
BA
0
365,817
253,038
359,086
370,325
2,852
Public Enterprise Funds:
Rural development loan fund
452
Outlays
0
Community development credit union revolving loan
fund
452
Outlays
0
Total Federal funds Human Development Services
BA
0
-10,503
896
-148
-1,000
-900
-1,000
5,251,265
5,100,118
5,428,943
5,595,530
5,307,044
5,267,765
BA
0
146,601
133,518
158,143
156,543
169,963
168,298
BA
0
69,983
52,542
81,267
79,870
88,263
86,137
BA
0
17,460
17,051
19,163
19,625
19,363
19,584
Departmental Management
Federal funds
General and Special Funds:
General Departmental management
Appropriation, current
Outlays
Office of the Inspector General
Appropriation, current
Outlays
Office for Civil Rights
Appropriation, current
Outlays
Office of Consumer Affairs
Appropriation, current
Outlays
Policy research
Appropriation, current
Outlays
See footnotes at end of table.
609
609
751
506
BA
0
1,848
1,934
1,947
1,952
2,011
2,006
609
BA
0
13,440
21,560
14,718
14,082
11,000
12,681
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-97
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Healtl1 and Human Services—Con.
Departmental Management—Con.
Total Federal funds Departmental Management...
0
-668
824
CD OO
506
249,332
225,937
275,238
272,896
290,600
288,706
CD CO
Intragovernmental Funds:
Working capital fund
Outlays
63,778,208
65,771,363
84,877,041
90,333,717
70,079,367
70,480,153
Deductions for offsetting receipts:
Proprietary receipts from the public
500
CD CO
Summary
Federal funds:
(As shown in detail above)
CD CO
908
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
BA
0
601 BA
908
551
0
BA
0
BA
0
-67
554
601
908
BA
0
BA
0
BA
0
BA
-581
-571
J
J
554
14,889
554
-27,304
-26,724
-4,554
-3,754
-6,691
63,786,339
65,779,494
84,845,156
90,301,832
70,048,872
70,449,658
203,273,310
206,393,868
231,774,337
227,761,192
242,288,824
245,449,387
-1,819,634
-2,223,000
-2,513,000
-42,480
-1,028,000
-1,931,000
-3,855,632
-4,357,000
-5,012,000
CD CO
Proprietary receipts from the public
CD CO
BA
0
550 BA
0
J
-7,219
J
126,000
-7,219
-7,219
-24,000
-14,000
-156
-2
J
CD OO
0
Total Trust funds
Interfund transactions
551
601
See footnotes at end of table.
380-000 O - 83 - 28 : QL 3
BA
0
BA
0
BA
0
160,000
-3,000
197,548,187
200,668,745
224,261,118
220,247,973
232,968,605
236,129,168
-14,338,022
-15,347,000
-17,291,000
J
-843,515
-855,213
-82,000
-838,583
8-98
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Health and Human Services—Con.
Summary—Con.
BA
0
Total Department of Health and Human Services
BA
0
-19,900,000
246,152,989
251,266,702
273,004,061
274,447,592
J
420,000
285,225,894
288,787,243
Department of Housing and Urban Development
Housing Programs
Federal funds
General and Special Funds:
Subsidized housing programs
Contract authority, current
Indefinite
Contract authority, permanent
Liquidation of contract authority, current
Outlays
604
BA
BA
BA
Total Subsidized housing programs
0
30,258
(8,379,758)
6,880,150
5,821,116
-1,579,231
24,666
(9,538,000)
7,774,000
23,800
(10,697,000)
8,532,000
BA
0
12,245,387
6,880,150
4,266,551
7,774,000
-2,319,389
8,532,000
Indian housing
604
Appropriation, current
BA
Outlays
0
Payments, for operation of low income housing projects
604
Appropriation, current
BA
12,215,129
A
'76,000
'40,357
1,490,906
1,350,000
* 1,636,500
H
Reappropriation
Outlays
-2,343,189
-69,000
597
1,582,000
H
-31,000
1,558,000
"-38,000
BA
0
1,007,558
Total Payments for operation of low income
housing projects
BA
0
1,490,906
1,007,558
1,281,597
1,551,000
1,636,500
1,520,000
BA
0
4,000
28,644
23,000
13,000
BA
0
3,073
4,000
4,600
6,200
BA
0
3,520
3,009
Troubled projects operating subsidy
Appropriation, current
Outlays
Congregate services program
Appropriation, current
Outlays
Housing counseling assistance
Appropriation, current
Outlays
Mobile home standards program
Outlays
Manufactured home inspection and monitoring
Appropriation, permanent, indefinite
Outlays
See footnotes at end of table.
604
604
506
376
0
3,000
3,000
8
198
376
BA
0
3,500
3,539
4,431
5,016
7,847
5,700
5,700
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-99
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Housing and Urban Development—Con.
Housing Programs—Con.
Interstate land sales
Appropriation, permanent, indefinite
Outlays
376
BA
0
183
180
363
180
180
BA
BA
0
117,148
86,123
-236,648
111,630
71,800
-328,663
79,640
46,940
-1,546,251
BA
0
203,271
-236,648
183,430
-328,663
126,580
-1,546,251
0
-21,118
101,973
135,648
BA
0
710,014
742,379
564,358
255,277
436,102
50,677
0
-78
250
150
0
-327
-278
-248
0
29
2,513
BA
0
84
-27,872
962
-24,449
BA
0
84
-27,872
962
-24,449
897
-14,273
-37,430
8,746,140
Public Enterprise Funds:
Federal Housing Administration fund
Appropriation, current, indefinite
Authority to borrow, permanent
Outlays
371
Total Federal Housing Administration fund
Low-rent public housing-loans and other expenses
604
Outlays
Housing for the elderly or handicapped fund
371
Authority to borrow, current, indefinite
Outlays
,
Nonprofit sponsor assistance
604
Outlays
Community disposal operations fund
451
Outlays
Rental housing assistance fund
604
Outlays
Revolving fund (liquidating programs)
451
Appropriation, current
Outlays
Total Revolving fund (liquidating programs)
L
897
-6,596
-7,677
Intragovernmental Funds:
Disaster assistance fund
Outlays
453
-4,739
Total Federal funds Housing Programs
.
BA
0
14,660,904
8,378,499
6,309,594
9,370,631
BA
1,880
1,764
Appropriation, permanent, indefinite
BA
205
116
Authority to borrow, permanent, indefinite
Outlays
BA
0
1,099,217
1,666,402
1,432,740
BA
0
1,101,302
1,666,402
1,880
1,432,740
Government National Mortgage Association
Federal funds
Public Enterprise Funds:
Special assistance functions fund
Appropriation, current
Total Special assistance functions fund.
See footnotes at end of table.
371
1,100
-1,100
100
^ —100
L
1,399,400
--1,399,400
8-100
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Housing and Urban Development—Con.
Government National Mortgage
Association—Con.
Emergency mortgage purchase assistance
Authority to borrow, permanent, indefinite
371
BA
Outlays
0
-37,412
-227,197
Total Emergency mortgage purchase assistance.. 0
—37,412
—227,197
Management and liquidating functions fund
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
247,830
-247,830
247,830
^ —247,830
L
371
L
BA
BA
0
-23,883
-10,000
Total Management and liquidating functions fund BA
0
-23,883
-10,000
1,200
796,171
0
-118,935
-155,600
-182,000
0
17,534
-21,253
-23,138
0
-15,938
-14,981
Guarantees of mortgage-backed securities
Outlays
Participation sales fund:
(Mortgage credit and thrift insurance)
(Outlays)
(Other advancement of commerce)
(Outlays)
(Community development)
(Outlays)
(Higher education)
(Outlays)
(Health research)
(Outlays)
(Veterans housing)
(Outlays)
1,100
MOO
-8,700
L
804,871
371
371
376
[.
-16,961
451
0
611
647
400
502
O
-2,701
-10,886
-18,609
552
O
-763
-591
-592
704
Total Participation sales fund
0
-18,539
-15,762
-16,484
0
-19,796
-62,826
-75,384
Total Federal funds Government National Mortgage Association
BA
0
1,101,302
1,466,376
1,880
977,117
1,200
538,787
Solar Energy and Energy Conservation Bank
Federal funds
General and Special Funds:
Assistance for solar and conservation improvements
272
Appropriation, current
BA
Outlays
0
Total Assistance for solar and conservation improvements
BA
0
See footnotes at end of table.
21,850
21,850
20,000
^ —11,000
10,675
-1 —2,750
31,175
^-8,250
9,000
7,925
22,925
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-101
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Housing and Urban Development—Con.
Community Planning and Development
Federal funds
General and Special Funds:
Community development grants
Appropriation, current
451
Outlays
Total Community development grants..
Urban development action grants
Appropriation, current
6A
3,456,000
3,456,000
0
3,791,621
3,525,000
"3,500,000
3,526,000
BA
0
3,456,000
3,791,621
3,456,000
3,525,000
3,500,000
3,526,000
BA
435,100
440,000
BA
0
38,611
387,895
488,300
512,000
BA
0
473,711
387,895
440,000
488,300
196,000
512,000
BA
0
11,639
* 12,000
20,361
"12,000
12,000
451
"196,000
Reappropriation..
Outlays
Total Urban development action grantsUrban homesteading
Appropriation, current
Outlays
Rental rehabilitation grants
Appropriation, current
Planning assistance
Appropriation, current
Outlays
Neighborhood self-help development program
Outlays
Miscellaneous appropriations
Outlays
Public Enterprise Funds:
Rehabilitation loan fund
Outlays
451
451
BA
150,000
451
BA
0
-1,026
4,455
19,548
451
0
925
3,705
451
0
2,282
818
451
Urban renewal programs
451
Liquidation of contract authority, permanentOutlays
Total Federal funds Community Planning and
Development
BA
0
-23,183
1,000
(92,652)
89,607
(70,000)
69,850
(50,000)
49,935
3,928,685
4,281,650
3,908,000
4,112,173
3,858,000
4,099,935
-882
918
1,032
New Community Development Corporation
Federal funds
General and Special Funds:
New community assistance grants
Appropriation, current, indefinite
Outlays
See footnotes at end of table.
451
BA
0
8-102
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Housing and Urban Development—Con.
New Community Development Corporation—
Con.
Public Enterprise Funds:
New communities fund
Authority to borrow, permanent, indefinite
451
BA
18,587
32,396
BA
0
12,366
15,983
77,275
37,122
BA
0
30,953
15,983
109,671
37,122 .
Total Federal funds New Community Development Corporation
BA
0
30,071
16,901
109,671
38,154 .
Contract authority, permanent, indefinite
Outlays
Total New communities fund.
L
26,100
-26,100
L
30,100
-30,100
Policy Development and Research
Federal funds
General and Special Funds:
Research and technology
Appropriation, current..,
451
BA
20,000
18,000
26,699
25,440
22,000
BA
0
20,000
26,699
18,000
25,440
18,000
22,000
BA
0
5,016
2,360
5,700
10,800
4,700
6,400
BA
0
194,800
196,152
201,660
205,056
191,350
191,591
BA
0
102,720
103,433
82,578
83,969
87,782
87,893
BA
0
21,980
22,132
23,262
23,654
23,975
24,005
Total Salaries and expenses, Including transfer
of funds
BA
0
319,500
321,717
307,500
312,679
303,107
303,489
Outlays
Total Research and technology
K
18,000
Fair Housing and Equal Opportunity
Federal funds
General and Special Funds:
Fair housing assistance
Appropriation, current
Outlays
751
Management and Administration
Federal funds
General and Special Funds:
Salaries and expenses, Including transfer of funds:
(Community development)
451
(Appropriation, current)
(Outlays)
(Public assistance and other income supplements)
604
(Appropriation, current)
(Outlays)
(Federal law enforcement activities)
751
(Appropriation, current)
(Outlays)
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-103
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Housing and Urban Development—Con.
Management and Administration—Con.
Intragovernmental Funds:
Working capital fund
Appropriation, current
Outlays
451
BA
0
528
-432
467
BA
0
- 1
10
10
Total Federal funds Management and Administration
BA
0
320,028
321,285
Trust funds
Gifts and bequests
Appropriation, permanent, indefinite
Outlays
451
Total Trust funds Management and Administration
BA
0
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
450 BA
Q
908
Total Federal funds
Trust funds:
(As shown in detail above)
J
A
BA
0
Total Department of Housing and Urban Development
BA
0
See footnotes at end of table.
303,107
303,489
10
10
-1
10
10
20,087,856
14,493,770
10,669,345
14,855,386
4,147,577
13,739,676
—500
—500
496
-3,622
-1,800
-1800
20,084,730
14,490,644
10,667,045
14,853,086
4,145,277
13,737,376
BA
0
307,500
313,146
10
10
10
10
-A
10
10
20,084,730
14,490,643
10,667,055
14,853,096
4,145,287
13,737,386
8-104
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior
Land and Water Resources
Bureau of Land Management
Federal funds
General and Special Funds:
Management of lands and resources
Appropriation, current
302
Outlays
Total Management of lands and resources
Construction and access
Appropriation, current
Outlays
Land acquisition
Appropriation, current
Outlays
Payments in lieu of taxes
Appropriation, current
Outlays
Oregon and California grant lands
Appropriation, current
BA
414,269
330,226
^45,000
D
4,595
317,101
-* 45,000
352,563
0
385,549
8A
0
414,269
385,549
379,821
362,101
352,563
335,422
BA
0
12,211
12,996
2,243
4,359
1,200
1,132
302
302
BA
0
3,712
346
BA
0
95,520
95,533
96,320
96,320
96,320
96,320
BA
52,788
49,136
0
51,432
56,963
"657
54,351
BA
0
52,788
51,432
57,620
54,351
49,136
47,802
13,226
11,864
11,199
11,199
10,000
9,750
Range improvements
302
Appropriation, current, indefinite
BA
Outlays
0
Recreation development and operation of recreation
facilities
302
Outlays
0
Service charges, deposits, and forfeitures
302
Appropriation, current, indefinite
BA
Outlays
0
Payments from proceeds, sale of water
301
Appropriation, permanent, indefinite
BA
Miscellaneous permanent appropriations:
(Conservation and land management)
302
(Appropriation, permanent, indefinite)
BA
(Outlays)
0
(Other general purpose fiscal assistance)
852
(Appropriation, permanent, indefinite)
BA
(Outlays)
0
Total Miscellaneous permanent appropriations..... BA
0
3
6,341
6,370
22
13,000
12,500
4,000
4,000
4,000
4,000
639,092
639,433
600,907
600,707
57,828
57,628
641,407
639,659
604,907
604,707
61,828
61,628
2
2,315
226
302
0
47,802
10,000
9,503
Intragovernmental Funds:
130
130
302
Total Oregon and California grant lands
See footnotes at end of table.
311
2,929
852
Outlays
Working capital fund
Outlays
335,422
-2,802
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-105
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Land and Water Resources—Con.
Bureau of Land Management—Con.
Trust funds
Miscellaneous trust funds
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
302
Total Miscellaneous trust funds
BA
BA
0
-19
1,241
936
100
600
700
BA
1,222
700
700
936
700
614
0
Total Federal funds Bureau of Land Management
Total Trust funds Bureau of Land Management...
100
600
614
BA
1,239,476
1,162,421
584,177
0
1,200,950
1,145,491
564,684
1,222
700
700
936
700
614
BA
0
Bureau of Reclamation
Federal funds
General and Special Funds:
Loan program
Appropriation, current
Outlays
Construction program
Appropriation, current
301
Total Construction program
25,106
26,453
41,500
41,500
BA
548,505
699,388
0
569,315
577,470
C
586
D
2,019
582,449
BA
548,505
580,075
699,388
0
569,315
582,449
695,544
41,173
31,831
38,754
695,544
301
BA
Outlays
Total General investigations
Emergency fund
Appropriation, current
Outlays
Operation and maintenance
Appropriation, current
22,614
29,458
301
Outlays
General investigations
Appropriation, current
BA
0
0
55,993
38,474
D
397
49,503
BA
41,173
38,871
31,831
0
55,993
49,503
38,754
BA
0
8,066
1,919
3,000
1,000
1,000
BA
118,518
119,866
145,091
301
301
C
Outlays
Total Operation and maintenance
See footnotes at end of table.
0
113,350
365
D
1,293
130,892
BA
118,518
121,524
145,091
0
113,350
130,892
145,191
145,191
8-106
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Land and Water Resources—Con.
Bureau of Reclamation—Con.
General administrative expenses
Appropriation, current
301
Outlays
Total General administrative expenses
Miscellaneous permanent appropriations
Appropriation, permanent
Indefinite
Outlays
BA
39,928
39,767
39,928
D
799
41,180
0
BA
0
53,400
53,484
39,928
39,767
40,727
41,180
53,400
53,484
852
Total Miscellaneous permanent appropriations
BA
BA
0
600
1,867
2,383
600
2,100
2,700
600
2,100
2,700
BA
0
2,467
2,383
2,700
2,700
2,700
2,700
5,402
5,418
773,205
810,290
13,800
13,800
810,922
836,177
27,675
27,675
974,910
978,173
5,402
5,418
2,012,681
2,011,240
13,800
13,800
1,973,343
1,981,668
27,675
27,675
1,559,087
1,542,857
Public Enterprise Funds:
Colorado River Basin project
Outlays
Upper Colorado River storage project
Outlays
301
0
-17,990
0
9,948
301
Trust funds
Reclamation trust funds
301
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Bureau of Reclamation
BA
0
Total Trust funds Bureau of Reclamation
BA
0
Total Federal funds Land and Water Resources... BA
0
Total Trust funds Land and Water Resources
BA
0
6,624
6,354
14,500
14,500
28,375
28,289
BA
226,722
241,987
C
138
D
1,392
246,340
0
238,613
261,283
'2,628
252,598
J
2,628
BA
0
226,722
238,613
243,517
261,283
248,968
255,226
Fish and Wildlife and Parks
United States Fish and Wildlife Service
Federal funds
General and Special Funds:
Resource management
Appropriation, current
Outlays
Total Resource management
See footnotes at end of table.
303
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-107
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Fish and Wildlife and Parks—Con.
United States Fish and Wildlife
Con.
Service-
Construction
Appropriation, current
Outlays
Land acquisition
Appropriation, current
Outlays
Migratory bird conservation account
Appropriation, current
Appropriation, permanent, indefinite
Outlays
303
BA
0
10,683
32,554
16,665
22,420
14,400
BA
0
16,491
11,033
27,200
22,144
14,878
BA
BA
0
1,200
15,845
17,092
2,000
16,376
18,066
10,024
BA
0
17,045
17,092
18,376
18,066
0
39
13
BA
BA
0
5,760
7,054
11,579
5,760
6,740
11,645
5,760
6,778
12,938
BA
0
12,814
11,579
12,500
11,645
12,538
12,938
BA
0
154,498
146,419
146,936
157,198
171,100
167,565
BA
0
3,210
3,301
3,750
3,600
3,572
3,429
BA
0
438,253
457,329
465,194
492,769
472,382
484,895
Total Trust funds United States Fish and Wildlife
Service
BA
0
3,210
3,301
3,750
3,600
3,572
3,429
521,528
599,792
509,431
567,760
c
2,042
D
6,977
577,340
521,528
509,431
576,779
577,340
599,792
599,335
303
303
Total Migratory bird conservation account
25,376
25,376
24,264
24,264
Development and operation of recreation facilities
303
Outlays
National wildlife refuge fund
Appropriation, current
Appropriation, permanent
Outlays
852
Total National wildlife refuge fund
Miscellaneous permanent appropriations
303
Appropriation, permanent, indefinite
Outlays
Trust funds
Contributed funds
303
Appropriation, permanent, indefinite
Outlays
Total Federal funds United States Fish and Wildlife Service
National Park Service
Federal funds
General and Special Funds:
Operation of the national park system
Appropriation, current
303
BA
Outlays
Total Operation of the national park system
See footnotes at end of table.
BA
0
599,335
8-108
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
Department of the Interior—Con.
Fish and Wildlife and Parks—Con.
National Park Service—Con.
National recreation and preservation
Appropriation, current
303
Outlays..
Total National recreation and preservation
Construction
Appropriation, current
BA
12,607
0
11,053
9,887
D
168
11,066
BA
0
12,607
.11,053
10,055
11,066
BA
95,852
0
86,768
BA
0
303
Outlays
Total Construction
78,275
159,096
-63,600
181,962
-15,900
115,527
"-47,700
95,852
86,768
95,496
166,062
78,275
67,827
2,120
2,895
4,212
4,247
3,964
35
54
4,334
4,331
4,212
3,964
4,336
4,334
4,342
4,331
BA
0
7,680
31,910
36,000
30,000
BA
BA
0
-30,000
30,000
272,901
30,000
BA
0
272,901
BA
0
133,462
54,345
142,505
306,000
0
1,546
741
BA
0
25,440
36,723
26,000
25,024
212
83
Road construction
303
Outlays
0
John F. Kennedy Center for the Performing Arts
303
Appropriation, current
BA
H
H
* 4,342
C
D
Outlays..
0
Total John F. Kennedy Center for the Performing
Arts
BA
0
Urban park and recreation fund
Appropriation, current
Outlays
Land and water conservation fund
Contract authority, current
Contract authority, permanent
Outlays
303
303
Total Land and water conservation fund
Land acquisition
303
Appropriation, current
Outlays
Planning, development, and operation of recreation
facilities
303
Outlays
Historic preservation fund
303
Appropriation, current
Outlays
Commemorative activities fund
303
Outlays
See footnotes at end of table.
0
30,000
54,671
267,000
13,985
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-109
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of the Interior—Con.
Fish and Wildlife and Parks—Con.
National Park Service—Con.
Miscellaneous permanent appropriations
Appropriation, permanent, indefinite
Outlays
303
BA
0
445
445
411
443
405
354
126
3,373
BA
0
1,163
958
1,700
1,700
1,660
1,660
Total Federal funds National Park Service.
BA
0
Total Trust funds National Park Service
BA
0
801,192
1,011,416
1,163
1,084
885,576
1,129,899
1,700
5,073
1,350,770
1,622,668
737,525
982,923
1,660
1,660
Trust funds
Construction (trust fund)
Outlays
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
401
303
Total Federal funds Fish and Wildlife and Parks.. BA
0
Total Trust funds Fish and Wildlife and Parks
BA
0
1,239,445
1,468,745
4,373
4,385
BA
507,846
363,389
C
165
D
6,730
BA
0
499,411
409,987
8,500
373,426
BA
0
507,846
499,411
370,284
409,987
359,428
373,426
6,400
5,900
500
29,295
275
5,450
8,673
1,209,907
1,467,818
5,232
5,089
Energy and Minerals
Geological Survey
Federal funds
General and Special Funds:
Surveys, investigations and research
Appropriation, current
306
Appropriation, permanent, indefinite
Outlays
Total Surveys, investigations and research
Barrow area gas operation, exploration, and development
271
Appropriation, current
Outlays
Exploration of national petroleum reserve in
Alaska
271
Appropriation, current
Outlays
BA
0
BA
0
2,196
32,283
350,928
Intragovernmental Funds:
Digitial cartography
Appropriation, current
Outlays
See footnotes at end of table.
306
BA
0
6,028
5,485
8-110
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Energy and Minerals—Con.
Geological Survey—Con.
Trust funds
Contributed funds
Appropriation, permanent, indefinite
Outlays
306
BA
0
Total Federal funds Geological Survey
BA
0
Total Trust funds Geological Survey
BA
0
500
500
510,042
531,694
376,684
445,182
500
500
500
500
365,456
379,686
500
500
Minerals Management Service
Federal funds
General and Special Funds:
Minerals and royalty management
Appropriation, current
302
BA
Outlays
Total Minerals and royalty management
155,518
0
196,506
C
2
* 1,987
166,021
BA
0
198,495
166,021
155,518
164,603
Payments to states from receipts under Mineral Leasing Act
852
Appropriation, permanent, indefinite
BA
Outlays
0
164,603
995,434
995,434
Total Federal funds Minerals Management Service
BA
0
198,495
166,021
1,150,952
1,160,037
63,497
Office of Surface Mining Reclamation and
Enforcement
Federal funds
General and Special Funds:
Regulation and technology
Appropriation, current
302
BA
58,515
0
64,167
60,461
D
522
59,050
BA
0
58,515
64,167
60,983
59,050
63,497
63,041
BA
0
115,333
54,596
161,209
82,062
218,802
117,143
Total Federal funds Office of Surface Mining
Reclamation and Enforcement
BA
0
173,848
118,763
222,192
141,112
282,299
180,184
Outlays
Total Regulation and technology
Abandoned mine reclamation fund
Appropriation, current
Outlays
See footnotes at end of table.
63,041
302
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-111
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Energy and Minerals—Con.
Bureau of Mines
Federal funds
General and Special Funds:
Mines and minerals
Appropriation, current
306
BA
Outlays
Total Mines and minerals
Drainage of anthracite mines
Outlays
150,602
0
158,288
143,053
D
1,515
168,452
BA
0
150,602
158,288
144,568
168,452
117,583
117,583
132,863
132,863
306
0
26
Public Enterprise Funds:
Helium fund
Outlays
306
0
Trust funds
Contributed funds
Appropriation, permanent, indefinite
Outlays
-6,659
306
BA
0
Total Federal funds Bureau of Mines
BA
0
Total Trust funds Bureau of Mines
BA
0
Total Federal funds Energy and Minerals
BA
0
Total Trust funds Energy and Minerals..-.
BA
0
244
682
150,602
151,655
244
682
834,492
802,112
244
682
800
800
144,568
168,452
800
800
941,939
920,767
1,300
1,300
800
800
117,583
132,863
800
800
1,916,290
1,852,770
1,300
1,300
Indian Affairs
Bureau of Indian Affairs
Federal funds
General and Special Funds:
Operation of Indian programs-.
(Conservation and land management)
(Appropriation, current)
302
BA
84,743
84,341
89,283
M4,000
c
90
"810
(Outlays)
0
83,050
81,802
A
14,000
85,700
Total (Conservation and land management)
BA
0
84,743
83,050
99,241
95,802
89,283
85,700
See footnotes at end of table.
8-112
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Indian Affairs—Con.
Bureau of Indian Affairs—Con.
(Area and regional development)
(Appropriation, current)
452
BA
478,223
503,164
472,197
495,062
c
1,864
D
2,017
484,404
(Outlays)
0
Total (Area and regional development)
BA
0
478,223
472,197
498,943
484,404
503,164
483,150
(Elementary, secondary, and vocational education)
501
(Appropriation, current)
BA
265,606
249,068
260,380
264,105
c
1,000
D
1,688
256,304
265,606
260,380
266,793
256,304
249,068
239,663
BA
0
828,572
815,627
864,977
836,510
841,515
808,513
BA
0
94,628
108,317
67,250
71,000
55,875
65,675
BA
0
47,160
47,258
43,585
44,325
4,000
30,000
(Outlays)
0
Total (Elementary, secondary, and vocational
education)
BA
0
Total Operation of Indian programs
Construction
Appropriation, current
Outlays
Road construction
Appropriation, current
Outlays
Eastern Indian land claims settlement fund
Outlays
Miscellaneous permanent appropriations:
(Area and regional development)
(Appropriation, permanent, indefinite)
(Outlays)
(Other general government)
(Appropriation, permanent, indefinite)
(Outlays)
483,150
239,663
452
452
806
0
600
357
452
BA
0
33,096
32,314
33,000
31,000
33,000
31,000
806
Total Miscellaneous permanent appropriations
BA
0
BA
0
1,281
1,278
34,377
33,592
1,000
1,000
34,000
32,000
1,000
1,000
34,000
32,000
Public Enterprise Funds:
Revolving fund for loans
452
Outlays
0
Indian loan guaranty and insurance fund
452
Outlays
0
Liquidation of Hoonah Housing Project revolving
fund
452
Outlays
0
See footnotes at end of table.
-1,232
1,848
5
9,191
4,305
1,383
3,695
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-113
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Indian Affairs—Con.
Bureau of Indian Affairs—Con.
Trust funds
Miscellaneous trust funds:
(Area and regional development)
(Appropriation, current)
(Indefinite)
(Appropriation, permanent, indefinite)
(Outlays)
452
BA
BA
BA
0
2,001
53,290
447,681
417,307
3,000
60,000
429,015
435,150
4,000
59,000
421,215
507,200
BA
0
502,972
417,307
492,015
435,150
484,215
507,200
BA
0
8,230
8,230
Total Miscellaneous trust funds
BA
0
511,202
425,537
492,015
435,150
484,215
507,200
Total Federal funds Bureau of Indian Affairs
BA
0
1,004,737
1,006,015
1,009,812
994,766
935,390
944,188
Total Trust funds Bureau of Indian Affairs
BA
0
511,202
425,537
492,015
435,150
484,215
507,200
BA
92,892
73,892
56,112
* 6,038
Total (Area and regional development)
(Other general government)
(Appropriation, permanent, indefinite)
(Outlays)
806
Territorial Affairs
Office of Territorial Affairs
Federal funds
General and Special Funds:
Administration of territories
Appropriation, current
806
D
Outlays
0
Total Administration of territories
BA
0
Trust Territory of the Pacific Islands
Appropriation, current
Outlays
BA
BA
0
Micronesian claims fund, Trust Territory of the Pacific
Islands
806
Outlays
0
Payments to the United States territories, fiscal assistance
852
Appropriation, permanent, indefinite
BA
Outlays
0
See footnotes at end of table.
380-000
0 - 8 3 - 2 9
:
QL 3
39
82,913
66,539
92,892
73,931
62,150
119,657
82,913
66,539
98,614
95,810
D
30
148,378
87,989
806
0
Total Trust Territory of the Pacific Islands
119,657
130,646
111,614
98,614
95,840
87,989
130,646
148,378
111,614
60
66,094
66,094
1,616
57,000
60,159
59,800
59,800
8-114
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1984
estimate
1983
estimate
1982
actual
Account and functional code
Department of the Interior—Con.
Territorial Affairs—Con.
Office of Territorial Affairs—Con.
Internal revenue collections for the Virgin Islands
852
Outlays
231
Total Federal funds Office of Territorial Affairs.... BA
0
257,600
316,688
226,771
293,066
209,939
237,953
BA
17,750
18,647
0
17,575
18,404
°663
18,686
0
17,750
17,575
19,067
18,686
18,647
18,487
BA
40,988
41,589
D
44,006
0
BA
0
40,279
40,988
40,279
40,913
42,705
42,587
40,913
44,006
42,705
8,118
7,270
1,532
2,130
3,840
3,665
896
4,800
896
2,818
13,369
17,185
10,441
21,500
D
400
21,730
21,100
13,369
10,441
21,900
21,730
17,185
21,100
BA
0
285
6,164
86
BA
0
359
550
Secretarial Offices
Office of the Solicitor and Office of the
Secretary
Federal funds
General and Special Funds:
Office of the Solicitor, salaries and expenses
Appropriation, current
306
Outlays
Total Office of the Solicitor, salaries and exBA
penses
Departmental management
Appropriation, current
306
Outlays
Total Departmental management.
Office of Water Policy, salaries and expenses
301
Appropriation, current
BA
O
Outlays
Construction management
306
Appropriation, current
Outlays
Office of Inspector General, salaries and expenses
306
Appropriation, current..
BA
Outlays
0
Total Office of Inspector General, salaries and
expenses
BA
0
Youth conservation corps
302
Appropriation, current
Outlays
Salaries and expenses (special foreign currency program)
306
Appropriation, current
Outlays
See footnotes at end of table.
18,487
m
420
840
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-115
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Secretarial Offices—Con.
Office of the Solicitor and Office of the
Secretary—Con.
Intragovernmental Funds:
Working capital fund
Outlays
306
0
1,611
Total Federal funds Office of the Solicitor and
Office of the Secretary
BA
0
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
BA
0
300 BA
_
76,232
80,094
92,568
94,035
82,686
88,080
5,425,187
5,684,894
5,595,203
5,906,970
5,913,299
6,133,666
/ / 5 W
_
y
^
y
QA
J
80
301 BA
Q
,c
M.
-46
-45
J
m
m
-25,120
..
-45
302
j^A
-78,750
-33,650
-39,370
450
^
-33,986
-33,433
-33,433
500
BA
0
908
j*A
-90,063
BA
0
BA
0
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
_
-33
-406,291
3,695,178
3,954,885
3,766,903
4,078,670
3,369,034
3,589,401
522,443
436,958
513,265
459,623
519,122
541,878
301 BA
_ ^
*
-1,221
303
QA
306
A
J
-35
-5,513
302
A
-35
-3,210
_ ^
-700
_ ^
-700
-3,750
-3,572
-1,300
-1,300
-268,059
-271,800
-286,000
-122,217
-124,600
-127,200
^244
4*}? BA
Q
908
Total Trust funds
See footnotes at end of table.
Q
A
BA
0
122,090
36,605
97,315
43,673
72,675
95,431
8-116
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Interior—Con.
Summary—Con.
Interfund transactions
806
Total Department of the Interior
*A
-69,629
-75,000
-50,000
BA
0
3,747,639
3,921,861
3,789,218
4,047,343
3,391,709
3,634,832
54,873
1,831
52,763
56,364
56,704
52,763
56,364
54,652
Department of Justice
General Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
BA
42,274
D
Outlays
Total Salaries and expenses
I ntragovernmental Funds:
Working capital fund
Outlays
0
39,473
BA
42,274
0
39,473
0
54,652
751
Total Federal funds General Administration
-6,885
5,750
-971
BA
0
42,274
32,588
56,704
58,513
56,364
53,681
BA
6,406
6,663
D
216
6,734
7,836
6,879
6,734
7,836
7,677
136,128
D
4,720
138,179
160,440
140,848
138,179
160,440
157,138
United States Parole Commission
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
Outlays
0
Total Salaries and expenses
BA
0
6,180
6,406
6,180
7,677
Legal Activities
Federal funds
General and Special Funds:
Salaries and expenses, General Legal Activities
752
Appropriation, current
BA
130,405
Outlays
0
125,579
BA
130,405
0
125,579
Total Salaries and expenses, General Legal Activities
See footnotes at end of table.
157,138
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-117
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Justice—Con.
Legal Activities—Con.
Salaries and expenses, Antitrust Division
Appropriation, current
752
Outlays
Total Salaries and expenses, Antitrust Division....
Salaries and expenses, Foreign Claims Settlement
Commission
153
Appropriation, current
Outlays
BA
0
42,638
43,389
"1,133
43,872
BA
41,200
44,522
45,791
0
42,638
43,872
45,102
BA
734
774
954
0
645
821
958
734
802
954
645
821
958
Total Salaries and expenses, Foreign Claims Settlement Commission
BA
0
Payment of Vietnam and U.S.S. Pueblo prisoner of
war claims
153
Outlays
Salaries and expenses, United States Attorneys and
Marshals
752
Appropriation, current
41,200
0
45,791
45,102
10
20
331,781
C
2
362,707
BA
313,132
0
310,562
10,808
335,739
355,473
BA
313,132
342,591
362,707
0
310,562
335,739
355,473
BA
0
29,923
27,662
34,254
32,489
44,768
44,504
BA
0
32,671
28,794
35,700
35,106
38,266
37,500
BA
5,727
6,314
0
5,527
5,764
"203
5,872
BA
0
5,727
5,527
5,967
5,872
6,314
6,265
BA
553,792
604,684
659,240
0
541,408
592,088
646,960
D
Outlays
Total Salaries and expenses, United States Attorneys and Marshals
Support of United States prisoners
752
Appropriation, current
Outlays
Fees and expenses of witnesses
752
Appropriation, current
Outlays
Salaries and expenses, Community Relations Service
752
Appropriation, current
Outlays
Total Salaries and expenses, Community Relations Service
Total Federal funds Legal Activities
See footnotes at end of table.
6,265
8-118
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Justice—Con.
Interagency Law Enforcement
Federal funds
General and Special Funds:
Organized crime drug enforcement
Appropriation, current
Outlays
751
BA
0
127,500
104,150
105,949
103,143
825,154
c
250
* 27,915
1,055,690
Federal Bureau of Investigation
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
Reappropriation
Outlays
Total Salaries and expenses
BA
767,009
BA
0
5,600
736,982
855,591
1,021,213
BA
0
772,609
736,982
853,319
855,591
1,055,690
1,021,213
BA
241,709
248,162
D
7,334
275,623
BA
0
1,000
224,629
250,451
269,141
BA
0
242,709
224,629
255,496
250,451
275,623
269,141
BA
444,357
484,431
C
264
10,999
539,261
Drug Enforcement Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
Reappropriation
Outlays
Total Salaries and expenses
Immigration and Naturalization Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
D
Reappropriation
Outlays
Total Salaries and expenses
See footnotes at end of table.
BA
0
2,104
416,762
499,380
534,896
BA
0
446,461
416,762
495,694
499,380
539,261
534,896
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-119
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Justice—Con.
Federal Prison System
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current..
753
Outlays
Total Salaries and expensesNational Institute of Corrections
Appropriation, current
Outlays
Buildings and facilities
Appropriation, current
Reappropriation
Outlays
Total Buildings and facilities..
426,263
354,565
387,049
c
1,552
D
8,821
393,887
BA
0
366,830
354,565
397,422
393,887
426,263
420,487
BA
0
11,186
11,445
11,050
10,550
11,665
11,080
BA
BA
0
55,481
1,000
14,905
6,667
97,142
29,821
45,390
BA
0
56,481
14,905
6,667
29,821
97,142
45,390
0
-5,233
(2,373)
(2,839)
(2,633)
(6,329)
(2,710)
(6,613)
535,070
476,957
BA
366,830
0
420,487
754
753
Intragovernmental Funds:
Federal Prison Industries, Incorporated
Outlays
Limitation on administrative expensesLimitation on vocational expenses
753
Trust funds
Commissary funds, Federal prisons (trust revolving
fund)
753
Outlays
Total Federal funds Federal Prison System
-511
BA
0
434,497
375,682
-511
415,139
434,258
BA
128,554
125,523
0
282,741
178,146
BA
0
128,554
282,741
125,523
178,146
Total Trust funds Federal Prison System..
Office of Justice Assistance
Federal funds
General and Special Funds:
Justice assistance
Appropriation, current..
Outlays
Total Justice assistance..
See footnotes at end of table.
754
* 60,659
'92,200
136,650
'36,290
152,859
172,940
8-120
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Justice—Con.
Office of Justice Assistance—Con.
Public Enterprise Funds:
Revolving fund
Outlays
754
0
Total Federal funds Office of Justice Assistance.. BA
0
Summary
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the public
140
137
128,554
282,881
125,523
178,283
152,859
172,940
2,627,302
2,617,112
2,940,938
2,979,448
3,387,892
3,286,608
-21,385
-21,565
-2,894
-2,894
2,916,659
2,955,169
3,363,433
3,262,149
2,916,659
2,955,169
3,363,433
3,262,149
86,271
750 BA
908
Total Federal funds
f
BA
0
Trust funds:
(As shown in detail above)
Total Department of Justice
-4,330
2,595,072
2,584,882
0
—511
BA
0
2,595,072
2,584,371
Department of Labor
Employment and Training Administration
Federal funds
General and Special Funds:
Program administration
Appropriation, current
504
BA
87,695
0
79,416
91,465
2,652
97,374
BA
0
87,695
79,416
94,117
97,374
86,271
87,229
BA
2,983,658
3,789,302
D
Outlays
Total Program administration
Training and employment services
Appropriation, current
87,229
504
0
4,110,422
-85,000
3,723,930
J
-76,500
3,643,330
1
724,696
-87,000
3,595,087
J
-86,800
BA
0
2,983,658
4,110,422
3,704,302
3,647,430
4,281,026
3,508,287
Community service employment for older Americans
504
Appropriation, current
BA
Outlays
0
277,100
268,964
281,950
278,312
211,462
J
Outlays
Total Training and employment services
See footnotes at end of table.
3
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-121
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Labor—Con.
Employment and Training Administration—
Con.
Temporary employment assistance
504
Outlays
Federal unemployment benefits and allowances
603
Appropriation, current
Outlays
0
BA
0
37,846
306,000
314,833
J
230,000
7,000
1,850,000
230,000
7,000
'1,850,000
Total Federal unemployment benefits and allowances
State unemployment insurance and employment service operations:
(Training and employment)
504
(Appropriation, current)
BA
306,000
2,080,000
7,000
0
314,833
2,080,000
7,000
19,272
22,200
BA
0
23,823
10,656
25,700
5,700
25,700
7
(Outlays)
Total (Training and employment)
BA
19,272
22,200
31,400
0
23,823
10,656
25,700
BA
0
20,000
5,100
14,900
Total State unemployment insurance and employment service operations
BA
39,272
22,200
31,400
28,923
25,556
25,700
(Unemployment compensation)
(Appropriation, current)
(Outlays)
603
0
Advances to the unemployment trust fund and other
funds-.
(General retirement and disability insurance)
601
(Appropriation, current)
(Outlays)
Total (General retirement and disability insurance)
See footnotes at end of table.
BA
283,002
0
283,002
BA
283,002
0
283,002
L
154,998
136,000
-37,000
136,000
*-37,000
99,000
154,998
99,000
8-122
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Labor—Con.
Employment and Training Administration—
Con.
(Unemployment compensation)
(Appropriation, current)
603
BA
4,034,998
5,411,000
5,033,000
6,617,000
-* 5,033,000
(Outlays)
0
2,674,000
Total (Unemployment compensation)
BA
0
4,034,998
2,674,000
10,444,000
11,650,000
7,010,000
7,010,000
Total Advances to the unemployment trust fund
and other funds
BA
0
4,318,000
2,957,002
10,444,000
11,804,998
7,109,000
7,109,000
A
7,010,000
7,010,000
Intragovernmental Funds:
Advances to the Employment Security Administration
account of the Unemployment trust fund 603
Outlays
0
Trust funds
Gifts and bequests
Appropriation, permanent, indefinite
Outlays
Unemployment trust fund:
(Training and employment)
(Appropriation, permanent, indefinite)
-300,000
504
BA
0
18
108
100
100
100
100
504
BA
737,916
801,508
(Outlays)
0
707,318
801,508
860,159
'182,100
860,159
Total (Training and employment)
BA
0
737,916
707,318
801,508
801,508
1,042,259
860,159
BA
19,753,300
26,165,492
5,033,000
30,939,841
(Outlays)
0
23,574,962
29,589,392
A
5,309,100
29,939,841
Total (Unemployment compensation)
BA
0
19,753,300
23,574,962
31,198,492
34,898,492
30,757,741
29,939,841
Total Unemployment trust fund
BA
0
20,491,216
24,282,280
32,000,000
35,700,000
31,800,000
30,800,000
Total Federal funds Employment and Training
Administration
BA
0
8,011,725
7,797,406
16,626,569
17,933,670
11,514,697
10,648,678
Total Trust funds Employment and Training Administration
BA
0
20,491,234
24,282,388
32,000,100
35,700,100
31,800,100
30,800,100
(Unemployment compensation)
(Appropriation, permanent, indefinite)
603
A
' -182,100
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-123
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Labor—Con.
Labor-Management Services Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
505
BA
0
54,910
54,637
58,077
56,315
64,130
63,031
0
-66,910
-31,611
Total Pension Benefit Guaranty Corporation fund. 0
-66,910
-31,611
-158,262
BA
158,203
185,835
0
154,511
169,296
D
4,390
169,780
184,433
BA
158,203
0 __154!511
173,686
169,780
185,835
184,433
4,100
4,100
Pension Benefit Guaranty Corporation
Federal funds
Public Enterprise Funds:
Pension Benefit Guaranty Corporation fund
Outlays...
601
-25,887
-132,375
J
Employment Standards Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
505
Outlays
Total Salaries and expenses.....
Special benefits:
(General retirement and disability insurance)
601
(Appropriation, current)
(Outlays)
(Federal employee retirement and disability)
BA
0
3,966
3,880
4,000
4,000
(Appropriation, current)
BA
344,926
335,600
(Outlays)
0
264,225
218,000
344,926
264,225
335,600
218,000
211,000
211,000
348,892
268,105
339,600
222,000
215,100
215,100
602
Total (Federal employee retirement and disability)
BA
0
Total Special benefits
See footnotes at end of table.
BA
0
L
228,000
-17,000
L
228,000
-17,000
8-124
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Labor—Con.
Employment Standards Administration—Con.
Trust funds
Black lung disability trust fund
Appropriation, current
601
Indefinite
Outlays
Total Black lung disability trust fund
BA
773,936
668,852
^54,000
D
368
BA
0
694
884,119
756
669,976
A
54,000
743,244
L
-37,000
756
744,000
L
-37,000
BA
0
774,630
884,119
723,976
723,976
707,000
707,000
BA
0
36,063
28,009
39,000
36,500
46,000
42,000
Total Federal funds Employment Standards Administration
BA
0
507,095
422,616
513,286
391,780
400,935
399,533
Total Trust funds Employment Standards Administration
BA
0
810,693
912,128
762,976
760,476
753,000
749,000
BA
195,465
210,860
0
194,029
205,256
G
1,393
202,976
BA
0
195,465
194,029
206,649
202,976
210,860
206,925
BA
149,313
153,828
^ -1,393
151,792
0
138,831
155,356
-3,760
152,742
^ —3,459
BA
0
149,313
138,831
152,435
155,356
148,032
149,283
Special workers' compensation expenses
Appropriation, permanent, indefinite
Outlays
601
Occupational Safety and Health
Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
554
Outlays
Total Salaries and expenses
206,925
Mine Safety and Health Administration
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
554
L
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-125
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Labor—Con.
Bureau of Labor Statistics
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
505
Outlays
Total Salaries and expenses
BA
113,067
110,005
120,143
D
3,600
122,817
0
136,290
135,042
BA
0
113,067
110,005
123,743
122,817
136,290
135,042
BA
126,069
93,864
0
115,027
M00
93,777
95,288
BA
0
126,069
115,027
94,264
93,777
95,391
95,288
38,133
39,056
37,707
40,406
Departmental Management
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
505
Outlays
Total Salaries and expenses
Office of the Inspector General
Appropriation, current
Outlays
Special foreign currency program
Appropriation, current
Outlays
94,390
1,001
K
505
BA
0
505
BA
0
67
54
67
67
200
200
Intragovernmental Funds:
Working capital fund
Outlays
505
0
5,931
Total Federal funds Departmental Management... BA
0
126,136
121,012
132,464
132,900
133,298
135,894
BA
0
9,157,711
8,771,626
17,813,223
18,964,203
12,608,242
11,580,124
500 BA
„ ,
A non
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
Q
550
A
^
609
f
nno
DA
™
Total Federal funds
See footnotes at end of table.
BA
0
. non
— 761
—.4,232
—4,232
-MO
-180
-180
-1631 -1631
-1631
-6,657
-419,657
-852,657
9,148,482
8,762,397
17,387,523
18,538,503
11,749,542
10,721,424
8-126
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Labor—Con.
Summary—Con.
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
BA
21,301,927
32,763,076
32,553,100
0
25,194,516
36,460,576
31,549,100
908 BA
Q
— 254
—300
—300
BA
21,301,673
32,762,776
32,552,800
0
25,194,262
36,460,276
31,548,800
601 BA
0
8A
Proprietary receipts from the public
Total Trust funds
:
interfund transactions
601 BA
.f
603
Total Department of Labor
'37,000
QA
-2,937,565
-11,848,540
-7,902,950
BA
27,229,588
38,146,761
36,300,392
0
30,736,092
42,995,241
34,268,274
Department of State
Administration of Foreign Affairs
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
153
BA
950,814
984,494
D
Outlays
Total Salaries and expenses
Representation allowances
Appropriation, current
Total Representation allowances
See footnotes at end of table.
1,148,586
0
848,549
BA
950,814
1,006,247
1,148,586
0
848,549
926,630
1,103,513
BA
3,570
3,876
0
3,375
3,815
BA
3,570
3,876
0
3,375
3,815
1,103,513
153
Outlays
Protection of foreign consulates
States
Appropriation, current
Outlays
K
13,642
G
8,lll
926,630
*4,247
4,185
4,247
4,185
in the United
153
BA
0
*6,000
* 5,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-127
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of State—Con.
Acquisition, operation, and maintenance of buildings
abroad
153
Appropriation, current
Outlays
Total Acquisition, operation, and maintenance of
buildings abroad
Acquisition, operation, and maintenance of buildings
abroad (special foreign currency program)
153
Appropriation, current
Outlays
Total Acquisition, operation, and maintenance of
buildings abroad (special foreign currency
program)
Emergencies in the diplomatic and consular service
153
Appropriation, current
Outlays
Total Emergencies in the diplomatic and consular service
Buying power maintenance
Appropriation, current
BA
203,625
193,040
0
157,529
183,852
* 202,889
206,685
BA
0
203,625
157,529
193,040
183,852
202,889
206,685
BA
9,102
8,360
0
14,439
14,100
* 10,113
16,907
BA
0
9,102
14,439
8,360
14,100
10,113
16,907
BA
4,400
4,400
0
2,702
6,222
* 4,400
4,381
CD OO
Administration of Foreign Affairs—Con.
4,400
2,702
4,400
6,222
4,400
4,381
BA
1,700
16,006
153
1,700
16,006
OO
Payment to the American Institute in Taiwan
Appropriation, current
BA
BA
BA
8,128
8,744
CD
Total Buying power maintenance
7,684
8,816
9,475
9,347
CD OO
* 4,500
8,128
7,684
8,744
8,816
9,475
9,347
153
Outlays
K
1
Total Payment to the American Institute in
Taiwan
See footnotes at end of table.
4,500
8-128
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of State—Con.
Administration of Foreign Affairs—Con.
Payment to the Foreign Service retirement and disability fund
153
Appropriation, current
BA
77,812
91,312
A
* 103,791
4,658
J
-42,688
Appropriation, permanent, indefinite
BA
206,600
219,600
224,500
Outlays
0
284,412
310,912
A
4,658
328,291
-^-42,688
Total Payment to the Foreign Service retirement
and disability fund
Intragovernmental Funds:
Working capital fund
Outlays
BA
284,412
315,570
285,603
0
284,412
315,570
285,603
0
156
-103
-150
153
Trust funds
Foreign Service retirement and disability fund
Appropriation, current
Indefinite
Appropriation, permanent, indefinite
Outlays
602
BA
BA
BA
0
A
491,289
183,609
5,792
541,992
200,924
' -41,438
567,295
212,779
J
-4,977
Total Foreign Service retirement and disability
fund
BA
0
Miscellaneous trust funds
Appropriation, permanent, indefinite
Outlays
491,289
183,609
547,784
200,924
525,857
207,802
BA
0
1,799
1,546
1,766
1,727
1,700
1,700
BA
1,465,751
1,556,243
1,675,813
0
1,318,846
1,458,902
1,635,471
153
Total Federal funds Administration of Foreign
Affairs
Total Trust funds Administration of Foreign Affairs
BA
493,088
549,550
527,557
0
185,155
202,651
209,502
BA
398,240
444,315
International Organizations and Conferences
Federal funds
General and Special Funds:
Contributions to international organizations
Appropriation, current
153
F
Outlays
Total Contributions to international organizations
See footnotes at end of table.
* 525,773
-8,111
O
481,028
427,109
525,277
BA
398,240
436,204
525,773
0
481,028
427,109
525,277
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-129
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of State—Con.
International Organizations and
Conferences—Con.
Contributions for international peacekeeping activities
153
Appropriation current
Outlays
Total Contributions for international peacekeeping activities
Missions to international organizations
Outlays
International conferences and contingencies
Appropriation current
60,938
73,400
0
57,934
76,404
66,948
66,948
BA
0
60,938
57,934
73,400
76,404
66,948
66,948
0
-1,007
K
153
153
Outlays
Total International conferences and contingencies
International trade negotiations
Outlays
BA
BA
7,284
9,200
0
5,853
8,771
* 9,622
9,298
BA
0
7,284
5,853
9,200
8,771
9,622
9,298
0
-1
153
...
Trust funds
Gifts and bequests, National Commission on Educational, Scientific, and Cultural Cooperation
153
Appropriation, permanent, indefinite
Outlays
Total Federal funds International Organizations
and Conferences
Total Trust funds International Organizations and
Conferences
BA
0
-146
-181
50
50
91
50
BA
0
466,462
543,807
518,804
512,284
602,343
601,523
BA
0
-146
50
50
-181
91
50
7,927
8,754
International Commissions
Federal funds
General and Special Funds:
International Boundary and Water Commission, United
States and Mexico:
Salaries and expenses
301
BA
Appropriation, current
* 9,849
Outlays
Total Salaries and expenses
See footnotes at end of table.
380-000 0 - 83 - 30 : QL 3
BA
0
8,065
8,764
9,398
7,927
8,065
8,928
8,764
9,849
9,398
8-130
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of State—Con.
International Commissions—Con.
Construction
Appropriation current
301
BA
Outlays
Total Construction
0
14,553
8,000
*679
2,582
BA
1,186
14,553
8,000
679
2,582
BA
2,847
2,918
BA
0
95
2,980
2,921
3,416
BA
0
2,942
2,980
2,918
2,921
3,461
3,416
BA
8,237
8,526
0
American sections, international commissions
301
Appropriation current
. .
1,186
* 3,461
Reappropriation
Outlays
Total American sections, international commissions
...
International fisheries commissions
Appropriation, current
302
K
0
7,950
8,526
9,218
9,218
Total International fisheries commissions
BA
0
8,237
7,950
8,526
8,526
9,218
9,218
Total Federal funds International Commissions
BA
0
20,292
33,548
20,372
28,211
23,207
24,614
BA
423,000
395,000
0
378,710
394,912
* 344,500
360,301
BA
0
423,000
378,710
395,000
394,912
344,500
360,301
3,132
5,935
6,000
BA
36,700
36,700
0
42,342
35,428
* 53,030
41,489
BA
0
36,700
42,342
36,700
35,428
53,030
41,489
Outlays
Other
Federal funds
General and Special Funds:
Migration and refugee assistance
Appropriation, current
151
Outlays
Total Migration and refugee assistance
United States emergency refugee and migration assistance fund
151
Outlays
International narcotics control
151
Appropriation, current
Outlays
Total International narcotics control
See footnotes at end of table.
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-131
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of State—Con.
Other—Con.
U.S. bilateral science and technology agreements
153
Appropriation, current
BA
3,700
1,700
Outlays
0
1,700
1,700
* 1,700
1,700
3,700
1,700
1,700
1,700
1,700
1,700
4,100
4,815
4,100
4,350
Total U.S. bilateral science and technology
BA
agreements
0
Payment to the Asia Foundation
153
Appropriation, current
Outlays
,
Special assistance to refugees from Cambodia and
Vietnam
609
Outlays
International Center, Washington, D.C.
153
Appropriation, permanent, indefinite
Outlays
Fishermen's protective fund
376
Appropriation, current
Outlays
BA
0
-5
BA
0
155
465
BA
0
2,972
3,000
3,100
3,139
500
General and Special Funds:
Anti-terrorism assistance
Appropriation, currentOutlays
Total Federal funds Other.
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Federal funds..
Trust funds:
(As shown in detail above)..
See footnotes at end of table.
152
K
BA
0
5,000
* 4,000
BA
O
467,655
431,159
441,100
445,964
407,202
416,490
BA
0
2,420,160
2,327,360
2,536,519
2,445,361
2,708,565
2,678,098
-2,408
-4,618
-4,540
-3,262
-2,244
-3,260
-18
-19
-19
150 BA
0
271 BA
0
300 BA
0
400 BA
0
908 BA
0
-739
-404
-404
-2,687
-1,128
-1,128
BA
0
2,411,046
2,318,246
2,528,106
2,436,948
2,699,214
2,668,747
BA
0
492,942
184,974
549,600
202,742
527,607
209,552
8-132
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of State—Con.
Summary—Con.
Deductions for offsetting receipts:
Intrafund transactions
602 BA
0
Total Trust funds
BA
0
153 BA
0
BA
0
803 BA
0
Interfund transactions
Total Department of State
BA
-120
-110
492,809
184,841
549,480
202,622
527,497
209,442
-317,995
-352,107
-367,607
-133
J
-34
-34
48,100
-34
2,725,445
2,287,429
2,907,170
2,558,648
13,020
14,129
11,600
^209
15,149
BA
0
12,893
14,129
11,809
15,149
13,020
13,001
BA
0
500
7,687
500
15,128
11,463
BA
0
3,000
11,930
3,000
5,738
5,146
BA
0
7,668
6,537
5,892
7,114
BA
BA
0
6,875
162 ..
3,165
5,042
8,803
7,037
3,165
5,042
8,803
400,500
16,345
518,000
268,917
389,269
0
2,585,826
2,185,058
Department of Transportation
Federal Highway Administration
Federal funds
General and Special Funds:
Motor carrier safety
Appropriation, current
401
BA
Outlays..
Total Motor carrier safety
Highway beautification
401
Appropriation, current
Outlays
Territorial highways
401
Appropriation, current
Outlays
Railroad-highway crossings demonstration projects
401
Appropriation, current
Outlays
Access highways to public recreation areas on certain
lakes
401
Appropriation, current
Reappropriation
Outlays
Total Access highways to public recreation areas
on certain lakes
BA
0
Interstate transfer grants - highways
Appropriation, current
Outlays
See footnotes at end of table.
12,893
13,001
401
BA
O
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-133
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
Federal Highway Administration—Con.
Miscellaneous appropriations
Outlays
Trust funds
Federal-aid highways (trust fund)
Contract authority, current
401
0
62,658
30,459
40,239
401
BA
3,979,000
Contract authority, permanent
Liquidation of contract authority, current
BA
4,324,500
(8,018,900)
Outlays..
0
7,788,589
BA
0
8,303,500
7,788,589
12,637,202
8,412,000
13,801,330
11,510,000
9,869
(23,300)
21,302
-9,679
9,869
(22,998)
12,590
9,804
(9,738)
13,121
9,869
21,302
190
12,590
9,804
13,121
9,667
13,273
12,742
13,968
4,860
7,041
7,700
7,658
8,600
9,549
Total Federal-aid highways (trust fund).
Highway-related safety grants
Contract authority, current
Contract authority, permanent
Liquidation of contract authority, currentOutlays
401
BA
BA
Total Highway-related safety grants.
BA
0
Trust fund share of other highway programs
401
Appropriation, current
BA
Outlays
0
Highway safety research and development
401
BA
Appropriation, current
0
Outlays
Motor carrier safety grants
401
BA
Appropriation, current
Outlays
0
Appalachian highway system
401
BA
Appropriation, current
Outlays
0
Miscellaneous trust funds
151
Appropriation, permanent
BA
BA
Contract authority, permanent
Liquidation of contract authority, permanent
Outlays
Total Miscellaneous trust funds
Miscellaneous trust funds-Highway
Outlays
See footnotes at end of table.
11,682,202
" -23,200
13,801,330
978,200
(8,200,000) (11,600,000)
A
(300,000)
11,789,000
8,447,000
L
L
-279,000
-35,000
BA
0
10,000
9,000
J
80,000
'4,000
5,190
593
(802)
4,946
5,710
9,741
(1,119)
7,581
9,619
5,783
4,946
5,710
7,581
9,741
9,619
29,284
8,431
6,581
401
8-134
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
Federal Highway Administration—Con.
Right-of-way revolving fund (trust revolving
fund)
401
Liquidation of contract authority, current
Outlays
0
(25,000)
1,370
Total Federal funds Federal Highway Administration
BA
0
431,598
122,451
533,309
356,105
13,020
465,255
Total Trust funds Federal Highway Administration
BA
0
8,333,679
7,865,805
12,650,802
8,461,002
13,919,475
11,575,838
BA
50,115
55,784
0
50,385
52,315
^430
54,295
BA
0
50,115
50,385
52,745
54,295
55,784
54,080
BA
0
137
-4,864
10,453
1,500
BA
24,785
21,685
22,214
National Highway Traffic Safety
Administration
Federal funds
General and Special Funds:
Operations and research
Appropriation, current
401
Outlays
Total Operations and research
Miscellaneous safety programs
Appropriation, current
Outlays
Trust funds
Highway safety research and development
Appropriation, current
54,080
401
401
D
\n
Outlays
0
Total Highway safety research and development. BA
0
Highway traffic safety grants
Contract authority, current
Contract authority, permanent
Liquidation of contract authority, current
Outlays
Total Highway traffic safety grants
See footnotes at end of table.
31,186
24,785
31,186
22,420
21,855
22,420
24,150
22,214
24,150
141,233
(103,552)
A
(3,000)
105,147
* 3,000
148,100
(118,000)
141,233
108,147
148,100
120,800
401
BA
BA
-100,137
202,500
(150,200)
0
143,000
BA
0
102,363
143,000
120,800
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-135
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
National Highway Traffic Safety
Administration—Con.
Gifts and donations
Outlays
401
0
6
Total Federal funds National Highway Traffic
Safety Administration
BA
0
50,252
45,521
52,745
64,748
55,784
55,580
Total Trust funds National Highway Traffic
Safety Administration
BA
0
127,148
174,186
163,088
130,573
170,314
144,950
BA
53,761
39,882
BA
0
6,696
109,059
63,775
D
452
1,185
142,236
Total Administration, research and special projects
BA
0
60,457
109,059
65,412
142,236
40,736
68,861
BA
24,176
28,000
0
22,582
31,379
* 26,514
28,494
BA
0
24,176
22,582
28,000
31,379
26,514
28,494
BA
0
124,161
10,000
75,000
20,000
20,000
BA
0
70,000
24,732
135,268
BA
0
821,314
821,314
87,467
87,467
38,545
38,545
BA
0
167,961
333,772
112,900
317,800
100,000
310,000
BA
BA
0
569,000
166,000
717,700
700,000
682,000
700,000
676,000
Total Grants to National Railroad Passenger Corporation
BA
0
735,000
717,700
700,000
700,000
682,000
676,000
Federal Railroad Administration
Federal funds
General and Special Funds:
Administration, research and special projects
Appropriation, current
401
Authority to borrow, current
Outlays
Railroad safety
Appropriation, current
401
Outlays
Total Railroad safety
Conrail labor assistance
603
Appropriation, current
Outlays
Commuter rail service
401
Appropriation, current
Outlays
Settlements of railroad litigation
401
Authority to borrow, current
Outlays
Northeast corridor improvement program
401
Appropriation, current
Outlays
Grants to National Railroad Passenger Corporation
401
Appropriation, current
Appropriation, permanent
Outlays
See footnotes at end of table.
854
68,861
8-136
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
Federal Railroad Administration—Con.
Public Enterprise Funds:
Alaska Railroad revolving fund
401
Appropriation, current
BA
Outlays
0
Railroad rehabilitation and improvement financing
funds
401
Authority to borrow, current
BA
Outlays
0
6,160
3,610
7,600
22,565
66,396
61,602
8,300
104,300
912
38,919
Total Federal funds Federal Railroad Administration
BA
0
1,951,464
2,218,532
1,019,679
1,616,015
908,707
1,180,819
3,532,238
2,665,166
(1,200,000)
3,864,234
3,565,831
D
335
(681,135)
3,818,330
3,532,238
3,864,234
3,566,166
3,818,330
2,665,166
3,487,970
779,000
1,250,000
(242,000)
Urban Mass Transportation Administration
Federal funds
General and Special Funds:
Urban mass transportation fund
Appropriation, current
401
BA
Liquidation of contract authority, currentOutlays
Total Urban mass transportation fund
Trust funds
Mass transportation capital fund
Contract authority, permanent
Liquidation of contract authority, current
BA
0
3,487,970
401
BA
A
Outlays..
0
Total Mass transportation capital fund
(55,000)
A
BA
0
242,000
55,000
779,000
55,000
1,250,000
242,000
1,247,357
^ 45,000
D
15,888
1,602,598
1,282,070
^ 45,000
1,592,998
Federal Aviation Administration
Federal funds
General and Special Funds:
Operations
Appropriation, current
402
Reappropriation
Outlays
Total Operations
Facilities, engineering and development
Appropriation, current
Outlays
See footnotes at end of table.
BA
1,471,994
BA
0
10,000
1,323,657
BA
0
1,481,994
1,323,657
1,308,245
1,327,070
1,602,598
1,592,998
BA
0
8,797
17,417
18,255
20,586
8,000
402
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-137
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
Federal Aviation
Administration—Con.
Operation and maintenance, Metropolitan Washington
Airports
402
Appropriation, current
Outlays
Construction, Metropolitan Washington Airports
402
Appropriation, current
Outlays
BA
0
30,438
29,172
31,955
31,677
34,557
33,693
BA
0
16,700
12,573
11,080
27,667
15,250
20,145
0
-3,184
-2,905
-2,882
Public Enterprise Funds:
Aviation insurance revolving fund
Outlays
402
Trust funds
Grants-in-aid for airports (Airport and airway trust
fund)
402
Appropriation, current
Contract authority, current
Contract authority, permanent
Reappropriation
Liquidation of contract authority, current
Outlays
BA
BA
BA
BA
26,218
(471,000)
338,596
-7,450
200,000
600,000
7,450
(234,000)
527,335
(745,000)
745,000
476,218
338,596
800,000
527,335
993,500
745,000
BA
0
260,847
291,507
625,000
268,000
1,000,000
480,000
BA
0
71,800
71,580
103,000
93,588
285,984
208,978
BA
809,945
1,099,000
0
810,000
1,269,000
D
13,952
1,282,952
Total Operations (Airport and airway trust
fund)
BA
0
809,945
810,000
1,282,952
1,282,952
1,099,000
1,099,000
BA
0
1,537,929
1,379,635
1,369,535
1,404,095
1,652,405
1,651,954
Total Trust funds Federal Aviation Administration BA
1,618,810
1,511,683
2,810,952
2,171,875
3,378,484
2,532,978
0
Total Grants-in-aid for airports (Airport and
airway trust fund)
BA
0
Facilities and equipment (Airport and airway trust
fund)
402
Appropriation, current
Outlays
Research, engineering and development (Airport and
airway trust fund)
402
Appropriation, current
Outlays
Operations (Airport and airway trust fund)
402
Appropriation, current
Outlays..
Total Federal funds Federal Aviation Administration
0
See footnotes at end of table.
450,000
993,500
1,099,000
8-138
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
Coast Guard
Federal funds
General and Special Funds:
Operating expenses
Appropriation, current
403
BA
Outlays
Total Operating expenses
Acquisition, construction, and improvements
Appropriation, current
Outlays
Alteration of bridges
Appropriation, current
1,482,456
1,591,148
1,687,542
0
1,439,954
189
D
2,163
E
12,926
1,588,291
1,657,629
BA
1,482,456
1,606,426
1,687,542
0
1,439,954
1,588,291
1,657,629
BA
0
684,000
292,662
400,000
455,000
378,600
470,000
BA
11,000
12,700
403
403
Outlays
0
Total Alteration of bridges
BA
0
Retired pay
Appropriation, current
Total Retired pay
See footnotes at end of table.
8,102
* 13,200
11,600
12,700
13,200
11,500
11,600
BA
265,000
318,000
0
257,849
318,000
-7,000
341,300
•'-7,000
BA
265,000
318,000
334,300
0
257,849
318,000
334,300
51,483
54,000
12,777
BA
Total Reserve training
Outlays
11,000
11,500
J
341,300
403
Outlays
Research, development, test, and evaluation
Appropriation, current
8,102
403
Outlays
Reserve training
Appropriation, current
C
0
52,229
54,000
* 42,028
54,805
BA
51,483
54,000
54,805
0
52,229
54,000
54,805
BA
18,000
20,000
22,000
0
18,384
19,000
18,000
403
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-139
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of Transportation—Con.
Coast Guard—Con.
National recreational boating safety and facilities improvement fund
403
Appropriation, current
BA
Contract authority, permanent
Liquidation of contract authority, current
BA
1
Outlays-
45,000
(15,000)
(5,000)
0
Total National recreational boating safety and
facilities improvement fund
Pollution fund
Appropriation, permanent, indefinite....
Outlays
Offshore oil pollution compensation fund
Appropriation, current
Indefinite
Outlays
5,000
» -5,000
45,000
15,000
BA
O
45,000
5,000
45,000
15,000
7,000
7,000
304
BA
0
8,263
6,063
7,000
7,000
BA
BA
0
Total Offshore oil pollution compensation fund.... BA
0
2,000
1,000
720
916
1,000
1,000
2,000
720
1,000
916
1,000
1,000
2,000
1,000
Deepwater port liability fund
Appropriation, current
Indefinite
Outlays
304
304
Total Deepwater port liability fund..
BA
BA
O
BA
0
96
968
1,000
1,000
2,000
96
1,000
968
1,000
1,000
BA
0
1,320
-2,186
400
400
3,187
2,000
1,000
10
60
80
50
80
50
151
25
25
2,525,522
2,077,060
2,465,126
2,462,075
2,544,447
2,571,734
10
211
80
75
75
Intragovernmental Funds:
Coast Guard supply fund
Appropriation, currentOutlays
Coast Guard yard fund
Outlays
Trust funds
Coast Guard general gift fund
Appropriation, permanent, indefinite
Outlays
Miscellaneous trust revolving funds
Outlays
Total Federal funds Coast GuardTotal Trust funds Coast Guard..
See footnotes at end of table.
403
403
0
403
BA
0
403
BA
0
BA
0
8-140
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
Maritime Administration
Federal funds
General and Special Funds:
Ship construction
Appropriation, current
Outlays
Operating-differential subsidies
Contract authority, permanent, indefinite
Liquidation of contract authority, current
Outlays
Research and development
Appropriation, current
403
BA
0
25,000
97,000
17,700
350,652
(417,148)
400,690
406,821
(454,010)
432,053
429,000
(401,294)
439,710
BA
8,491
15,300
0
17,397
16,750
* 11,500
13,650
BA
0
8,491
17,397
15,300
16,750
11,500
13,650
BA
75,007
78,113
0
74,766
86,594
* 71,013
72,713
BA
0
75,007
74,766
78,113
86,594
71,013
72,713
0
-27,781
-34,000
-33,700
403
BA
0
403
Outlays..
Total Research and development
Operations and training
Appropriation, current
184,485
403
Outlays..
Total Operations and training
Public Enterprise Funds:
Federal ship financing fund
Outlays
Vessel operations revolving fund
Outlays
War risk insurance revolving fund
Outlays
Trust funds
Special studies, services and projects
Appropriation, permanent, indefinite
Outlays
Gifts and bequests
Appropriation, permanent
Outlays
403
403
o
2,350
403
0
-1,077
-650
-670
BA
BA
352
410
385
385
385
385
15
15
15
15
403
0
403
BA
0
Total Federal funds Maritime Administration
BA
0
434,150
650,830
525,234
597,747
511,513
509,403
Total Trust funds Maritime Administration
BA
357
419
400
400
400
0
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-141
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
Saint Lawrence Seaway Development
Corporation
Federal funds
Public Enterprise Funds:
Saint Lawrence Seaway Development Corporation
403
Outlays
Limitation on administrative expenses....
-781
(3,202)
D
(76)
(U16)
(1,825)
25,895
Office of the Inspector General
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
407
Outlays
Total Salaries and expenses
BA
13,523
0
13,021
24,946
^409
24,639
BA
0
13,523
13,021
25,355
24,639
25,895
25,610
BA
0
17,441
21,676
20,022
23,500
20,287
20,398
20,022
23,502
20,287
20,398
42,537
25,610
Research and Special Programs
Administration
Federal funds
General and Special Funds:
Research and special programs
Appropriation, current
Outlays
Cooperative automotive research
Outlays
407
401
0
Intragovemmental Funds:
Working capital
Center
Outlays
fund,
Transportation
Systems
407
0
Total Federal funds Research and Special Programs Administration
BA
0
1,494
17,441
23,162
Office of the Secretary
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
407
BA
35,262
0
35,126
39,000
1,040
46,500
BA
0
35,262
35,126
40,040
46,500
42,537
45,700
Transportation planning, research, and development
407
Appropriation, current
BA
Outlays
0
3,350
5,574
4,900
5,500
7,256
6,000
Outlays
Total Salaries and expenses
See footnotes at end of table.
D
45,700
8-142
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of Transportation—Con.
Office of the Secretary—Con.
Transportation research activities overseas (special
foreign currency program)
407
Outlays
0
19
Intragovernmental Funds:
Limitation on Working capital fund
Outlays
407
0
Total Federal funds Office of the Secretary
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
BA
38,612
44,940
49,793
0
36,896
52,019
51,700
10,532,729
10,430,561
9,622,111
10,419,275
8,447,017
10,020,423
BA
0
908 BA
«
Proprietary receipts from the public
-3,805
—1,11b
— 4,o4U
304 BA
Q
400
^
403
f
806
\k
908
QA
-3,398
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
See footnotes at end of table.
-64,040
'-58,500
-211
-355
-2,376
-375
-2,391
BA
10,473,068
9,548,084
8,310,171
10,370,900
10,345,248
9,883,577
BA
0
10,080,004
9,552,304
16,404,322
10,818,925
18,718,753
14,496,241
151 BA
—J,ZJJ
401
f
-714
403
jf
-352
BA
—O,/cl
—j,10U
-1,097
-580
-385
-385
10,073,683
16,397,119
9,545,983
10,811,722
14,486,126
BA
20,546,751
25,945,203
27,018,809
0
19,916,883
21,156,970
24,369,703
0
Total Department of Transportation
-60,436
0
n
Total Trust funds
-54,936
18,708,638
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-143
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Treasury
Office of the Secretary
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
803
Outlays
Total Salaries and expenses
Presidential election campaign fund
Appropriation, permanent, indefinite
Outlays
BA
55,729
54,073
60,141
c
«5
D
1,941
G
242
61,580
0
69,949
68,550
BA
0
55,729
54,073
62,409
61,580
69,949
68,550
BA
0
39,030
-132
43,200
12,877
44,200
127,306
-159,762
-172,331
7
7
105,609
-85,305
7
7
7
7
114,149
23,525
7
7
806
Public Enterprise Funds:
Exchange stabilization fund
Outlays
155
0
-527,659
Intragovernmental Funds:
Working capital fund
Outlays
803
0
Trust funds
Pershing Hall memorial fund
705
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Office of the Secretary
BA
0
Total Trust funds Office of the Secretary
BA
0
-53
7
7
94,759
-473,771
7
7
Office of Revenue Sharing
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
851
0
6,060
6,612
D
255
6,744
BA
0
6,209
6,060
6,867
6,744
Payments to State and local government fiscal assistance trust fund
851
Appropriation, current
BA
4,566,700
4,566,700
4,566,700
4,566,700
* 4,566,700
4,566,700
4,566,700
4,566,700
4,566,700
4,566,700
4,566,700
4,566,700
Outlays
Total Salaries and expenses
Outlays
BA
0
Total Payments to State and local government
fiscal assistance trust fund
BA
0
See footnotes at end of table.
6,209
7,678
7,678
7,448
7,448
8-144
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Treasury—Con.
Office of Revenue Sharing—Con.
Trust funds
State and local government fiscal assistance trust
fund
851
Appropriation, permanent, indefinite
BA
Outlays
0
4,566,700
4,568,627
4,566,700
4,566,700
4,566,700
4,566,700
Total Federal funds Office of Revenue Sharing.... BA
0
4,572,909
4,572,760
4,573,567
4,573,444
4,574,378
4,574,148
Total Trust funds Office of Revenue Sharing
BA
0
4,566,700
4,568,627
4,566,700
4,566,700
4,566,700
4,566,700
BA
12,318
14,481
13,247
12,452
D
306
G
45
12,796
12,318
13,247
12,803
12,796
14,481
14,416
2,332
2,560
2,656
12,318
15,579
12,803
15,356
14,481
17,072
242,995
215,160
246,725
-2,779
239,067
231,865
215,160
243,946
239,067
242,995
238,135
Federal Law Enforcement Training Center
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
Outlays..
Total Salaries and expenses
BA
0
Construction, Federal Law Enforcement Training
Center
751
Outlays
0
Total Federal funds Federal Law Enforcement
Training Center
BA
0
14,416
Bureau of Government Financial Operations
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, currentOutlays
Total Salaries and expenses
803
BA
F
BA
0
Special payment to recipients of certain retirement
and survivor benefits
601
Outlays
0
New York City loan guarantee program
852
Appropriation, current
BA
Outlays
0
See footnotes at end of table.
231,865
6
822
406
70 ..
238,135
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-145
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
.
1983
estimate
1984
estimate
Department of the Treasury—Con.
Bureau of Government Financial
Operations—Con.
Chrysler Corporation loan guarantee program
Appropriation, current
376
BA
1,356
1,211
D
1,005
n
Outlays
0
Total Chrysler Corporation loan guarantee program
BA
0
Claims, judgments, and relief acts
Appropriation, permanent, indefinite
Outlays
Advances to the railroad retirement account
Appropriation, permanent, indefinite
Outlays
Interest on uninvested funds
Appropriation, current, indefinite
Appropriation, permanent, indefinite
Outlays
1,202
985
1,356
774
1,222
1,202
1,005
985
806
BA
0
284,810
284,718
405,520
405,520
405,420
405,420
BA
0
50,000
50,000
1,452,000
1,452,000
2,551,907
2,551,907
BA
BA
0
13,829
14,011
11,315
11,315
—10
11,324
11,324
'-10
BA
0
13,829
14,011
11,315
11,315
11,314
11,314
601
908
Total Interest on uninvested funds
Payment of Government fosses in shipment
Outlays
Postal savings system liquidation
Appropriation, current
Outlays
Energy security reserve
Outlays
Biomass energy development
Outlays
774
J
803
0
124
BA
0
200
200
200
200
806
271
0
10,910
24,603
66,894
271
0
2,177
1,900
1,900
10
10
18
18
18
18
Public Enterprise Funds:
Check forgery insurance fund
Outlays
803
0
Intragovernmental Funds:
Fishermen's protective fund
Appropriation, current
Outlays
376
BA
0
Trust funds
Miscellaneous trust funds
806
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds Bureau of Government Financial Operations
BA
0
Total Trust funds Bureau of Government Financial Operations
BA
0
See footnotes at end of table.
380-000 0 - 83 - 31 : QL 3
2,000
1,569
45
18
584,882
580,043
45
18
2,114,003
2,135,887
18
18
3,212,641
3,276,765
18
18
8-146
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Treasury—Con.
Bureau of Alcohol, Tobacco and Firearms
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
,
751
BA
0
142,164
137,282
BA
527,173
147,492
144,542
157,122
155,034
578,749
561,567
United States Customs Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
0
515,861
553,700
C
73
17,544
564,937
BA
0
527,173
515,861
571,317
564,937
578,749
561,567
BA
0
62,911
69,257
72,000
72,000
75,000
75,000
9,950
9,950
11,450
11,450
643,317
636,937
653,749
636,567
D
Outlays
Total Salaries and expenses
Miscellaneous permanent appropriations
Appropriation, permanent, indefinite
Outlays
852
Trust funds
Refunds, transfers and expenses, unclaimed, abandoned and seized goods
803
Appropriation, permanent, indefinite
BA
Outlays
0
Total Federal funds United States Customs Service
BA
0
Total Trust funds United States Customs Service
8,450
8,166
590,084
585,118
BA
0
8,450
8,166
9,950
9,950
11,450
11,450
0
-651
-1,206
-5,036
BA
47,489
47,558
0
45,602
47,284
* 49,558
48,616
BA
0
47,489
45,602
47,558
47,284
49,558
48,616
Bureau of Engraving and Printing
Federal funds
Intragovernmental Funds:
Bureau of Engraving and Printing fund
Outlays
803
Bureau of the Mint
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
Outlays
Total Salaries and expenses
See footnotes at end of table.
803
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-147
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Treasury—Con.
Bureau of the Mint—Con.
Expansion and improvements
Appropriation, current
803
BA
Outlays
3,969
5,200
0
Total Expansion and improvements
Construction of mint facilities
Outlays
Coinage profit fund
Appropriation, permanent, indefinite
Outlays
5,096
* 3,070
3,008
3,070
3,008
BA
0
3,969
5,200
5,096
0
1,021
4,684
BA
0
6,275
3,910
5,000
5,000
6,203
6,203
803
803
Total Federal funds Bureau of the Mint
BA
0
57,733
50,533
57,758
62,064
58,831
57,827
BA
0
178,234
172,428
199,934
195,935
205,605
201,493
Processing tax returns and executive direction 803
Appropriation, current
BA
894,162
988,479
773,350
1,000,778
^ 17,320
1,014,026
894,162
773,350
1,018,098
1,014,026
988,479
984,525
BA
958,822
1,287,026
0
943,761
1,009,409
D
39,815
1,045,025
1,281,718
BA
0
958,822
943,761
1,049,224
1,045,025
1,287,026
1,281,718
BA
654,566
1,016,046
0
642,953
767,493
30,285
794,587
1,011,982
654,566
642,953
797,778
794,587
1,016,046
1,011,982
Bureau of the Public Debt
Federal funds
Genera! and Special Funds:
Administering the public debt
Appropriation, current
Outlays
803
Internal Revenue Service
Federal funds
General and Special Funds:
Outlays
0
Total Processing tax returns and executive direction
BA
0
Examinations and appeals
Appropriation, current
803
Outlays
Total Examinations and appeals
Investigation, collection and taxpayer service
Appropriation, current
Outlays
803
Total Investigation, collection and taxpayer service
BA
0
See footnotes at end of table.
984,525
D
8-148
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Department of the Treasury—Con.
Internal Revenue Service—Con.
Salaries and expenses
Appropriation, current
803
Outlays
Total Salaries and expenses..
Payment where energy credit exceeds liability for
tax
271
Appropriation, current
Outlays
Payment where credit exceeds liability for tax 609
Appropriation, permanent, indefinite
Outlays
Refunding internal revenue collections, interest
908
Appropriation, permanent, indefinite
Outlays
Internal revenue collections for Puerto Rico
852
Appropriation, permanent, indefinite
Outlays
BA
164,376
0
BA
0
153,215
170,510
D
7,402
177,128 .
164,376
153,215
177,912
177,128 .
BA
0
440
-215
300
300
200
200
BA
0
1,201,494
1,201,494
1,205,000
1,205,000
1,123,000
1,123,000
BA
0
1,788,871
1,788,871
1,904,000
1,904,000
1,586,000
1,586,000
BA
0
239,403
245,069
270,000
270,000
275,000
275,000
O
154
BA
0
5,902,134
5,748,652
6,422,312
6,410,066
6,275,751
6,262,425
BA
194,077
235,000
D
5,462
270,860
BA
0
1,352
189,668
195,429
189,668
235,353
265,443
240,462
235,353
270,860
265,443
8,765
7,855
204,194
197,523
9,000
9,000
249,462
244,353
11,000
11,000
281,860
276,443
-16,188
-5,023
-5,126
Public Enterprise Funds:
Federal tax lien revolving fund
Outlays
803
Total Federal funds Internal Revenue Service
United States Secret Service
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
751
Reappropriation
Outlays
Total Salaries and expenses
Contribution for annuity benefits
Appropriation, permanent, indefinite
Outlays
BA
0
751
BA
0
Total Federal funds United States Secret Service. BA
0
Comptroller of the Currency
Trust funds
Assessment funds
Outlays
See footnotes at end of table.
376
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-149
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Department of the Treasury—Con.
Interest on the Public Debt
Federal funds
General and Special Funds:
Interest on the public debt
Appropriation, permanent
901
Outlays
Public debt principal (exchange losses)
Appropriation, permanent
Outlays
117,351,592
128,200,000
144,500,000
117,351,592
128,200,000
144,500,000
901
Total Federal funds Interest on the Public Debt...
BA
0
52,289
52,289
BA
117,403,881
128,200,000
144,500,000
0
117,403,881
128,200,000
144,500,000
BA
0
129,743,292
128,989,377
142,726,257
142,532,073
160,048,567
159,976,263
803 BA
„.«
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
BA
0
806
908
\
Q
-15
A
-2,980,867
QA
803 BA
Proprietary receipts from the public
050 BA
Trust funds:
(As shown in detail above)
See footnotes at end of table.
-6,980,960
_ 14g
2Q2
BA _12f295t734
_3m
11,237
_ ]5] ^
-14,204,846
_
m
-15
-5,666,600
J
125,493
_
-15,226,722
_
m
150
QA
-88,749
-88,827
-88,831
151
QA
-10,245
-7,669
-9,359
152
Q
A
-12,559
-13,485
-13,741
155
QA
-80,309
-81,915
-83,553
800
Q
A
-93,890
-97,715
-99,002
Qfl1
yul
RA
-213,632
-136,759
-2,006,406
-1,233,401
111,808,587
111,054,672
119,736,122
119,541,938
908
Total Federal funds
-15
J
Receipts from off-budget Federal entities
908
,
Q
Q
A
BA
0
-1,204,479
137,598,790
137,526,486
BA
4,575,202
4,576,675
4,578,175
0
4,560,630
4,571,652
4,573,049
8-150
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
-207,655
-171,101
-164,065
-4,566,700
-4,566,700
-4,566,700
-270,242
-191,200
-209,200
Department of the Treasury—Con.
Summary—Con.
interfund transactions
601 BA
803
QA
or i
p*
M
Q
nno
DA
Q
°
Total Department of the Treasury
A
BA
0
^
111,289,192
110,520,705
118,224,796
118,025,589
135,074,000
134,996,570
Environmental Protection Agency
Federal funds
General and Special Funds:
Salaries and expenses
Appropriation, current
304
BA
0
520,363
518,904
245,206
295,183
518,533
BA
0
555,106
520,363
548,613
518,904
540,389
518,533
BA
41,271
20,511
(Outlays)
0
81,101
51,291
19,836
38,323
Total (Energy supply)
BA
0
41,271
81,101
20,511
51,291
19,836
38,323
BA
113,045
98,489
(Outlays)
0
116,238
102,418
* 91,833
102,441
Total (Pollution control and abatement)
BA
0
113,045
116,238
98,489
102,418
91,833
102,441
Total Research and development
BA
0
154,316
197,339
119,000
153,709
111,669
140,764
BA
372,970
369,075
Outlays
Total Salaries and expenses
Research and development:
(Energy supply)
(Appropriation, current)
(Pollution control and abatement)
(Appropriation, current)
Abatement, control, and compliance
Appropriation, current
Outlays
Total Abatement, control, and compliance
ee footnotes at end of table.
555,106
548,613
K
271
K
304
304
0
523,722
423,538
10,145
* 283,788
366,359
BA
0
372,970
523,722
369,075
423,538
293,933
366,359
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
8-151
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1984
estimate
1983
estimate
Environmental Protection Agency—Con.
3,621
3,325
3,000
2,825
2,600
4,689
BA
2,430,000
2,400,000
0
2,400,000
(1,000,000)
3,756,152
3,100,000
2,800,000
0
677
1,000
600
0
245
319
0
289
1,633
n
1,598
1002
26,600
26,600
40,000
40,000
44,000
44,000
21
100
100
BA
0
190,000
79,576
210,000
177,000
310,000
269,000
BA
0
22
12
20
20
BA
O
3,512,613
5,030,331
3,509,688
4,243,030
3,392,591
3,876,484
<
BA
0
CD CD
304
Buildings and facilities
Appropriation, current
Outlays
304
Construction grants
Appropriation, current
Liquidation of contract authority, current
Outlays
Scientific activities overseas (Special foreign currency
program)
304
Outlays
United States Regulatory Council
304
Outlays
Operations, research, and facilities
304
Outlays
Enforcement
304
Outlays
Payment to the hazardous substance response trust
fund
304
Appropriation, current
Outlays
1,439
Public Enterprise Funds:
Revolving fund for certification and other services
304
Outlays
Trust funds
Hazardous substance response trust fund
Appropriation current
Outlays
Miscellaneous contributed funds
Appropriation, permanent indefinite
Outlays
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the public
Total Federal funds
Trust funds:
(As shown in detail above)
See footnotes at end of table.
304
304
300 BA
0
BA
0
304 BA
0
908 BA
0
-530
-606
-606
J
'-2,746
-52
-616
-50
-140
-50
-140
BA
0
3,511,415
5,029,133
3,508,892
4,242,234
3,389,049
3,872,942
BA
0
190,022
79,588
210,000
177,020
310,000
269,020
8-152
THE BUDGET FOR FISCAL YEAR 1984
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1982
actual
Account and functional code
1983
estimate
1984
estimate
Environmental Protection i Agency—Con.
Summary—Con.
Deductions for offsetting receipts:
Proprietary receipts from the public
304
Total Trust funds
304
Interfund transactions
Total Environmental Protection Agency
BA
0
-2,331
-9,000
BA
0
137,691
77,257
201,000
168,020
287,000
246,020
BA
0
-26,600
-40,000
-44,000
BA
0
3,672,506
5,079,790
3,669,892
4,370,254
3,632,049
4,074,962
-23,000
National Aeronautics and Space Administration
Federal funds
General and Special Funds:
Research and development:
(Space flight)
(Appropriation, current)
253
(Outlays)
Total (Space flight)
BA
3,055,900
3,597,800
0
3,051,451
3,452,000
BA
3,055,900
3,597,800
0
3,051,451
3,452,000
(Appropriation, current)
BA
1,015,200
1,166,100
(Outlays)
0
1,078,903
1,115,700
BA
1,015,200
1,166,100
0
1,078,903
1,115,700
BA
402,100
498,900
0
369,869
486,900
K
3,498,000
3,491,000
3,498,000
3,491,000
(Space science, applications, and technology)
254
Total (Space science, applications, and technology)
(Supporting space activities)
(Appropriation, current)
Total (Supporting spac
@FedFRASER