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UNITED STATES
GOVERNMENT
YEAR
t
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402
Stock Number 041-001-00160-3
THE BUDGET DOCUMENTS
Data and analyses relating to the budget for 1979 are published in
four documents:
The Budget of the United States Government, 1979 contains the information that most users of the budget would normally need, including
the Budget Message of the President. The Budget presents an overview
of the President's budget proposals and includes explanations of
spending programs in terms of national needs, agency missions, and
basic programs, an analysis of estimated receipts and a discussion
of the President's tax proposals. This document also contains a description of the budget system and various summary tables on the
budget as a whole. (Price $4.00.)
The Budget of the United States Government, 1979—Ajjendix 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, 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, and new legislative proposals, are presented separately. Information is also provided on certain activities whose
outlays are not part of the budget totals. (Price $12.00.)
Special Analyses, Budget of the United States Government, 1979
contains 16 special analyses that are designed to highlight specified
program areas or provide other significant presentations of Federal
budget data. This document includes analytical 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; Government-wide program and financial information for Federal education,
training and employment, health, income security, civil rights, environment, and research and development programs. (Price $3.25.)
The United States Budget in Brief, 1979 provides a more concise,
less technical overview of the 1979 budget than the above volumes.
Summary and historical tables on the Federal budget and debt are
also provided, together with graphic displays. (Price $1.75.)
Each of these documents is for sale by the Superintendent of
Documents, U.S. Government Printing Office, Washington, D.C.
20402. (Paper covers only.)
GENERAL NOTES
1. All years referred to are fiscal years, unless otherwise noted.
2. Detail in the tables, text, and charts of this volume may not add
to the totals because of rounding.
II
TABLE OF CONTENTS
Page
PART 1. THE BUDGET MESSAGE OF THE PRESIDENT
PART 2. BUDGET SUMMARY
_
Overview of the President's budget
__
Fiscal policy
__
Budget authority
Federal debt and lending...
Federal civilian employment
Major budget proposals
Better management of the Federal Government
PART 3. ECONOMIC ASSUMPTIONS A N D LONG-RANGE BUDGET PROJECTIONSEconomic assumptions
Long-range budget projections
_
PART 4. BUDGET RECEIPTS
Summary
Enacted tax changes
_
__
Proposed tax changes
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
_
Interest
.
Allowances
Undistributed offsetting receipts
PART 6. SELECTED ASPECTS OF THE BUDGET
Relationship of budget authority to outlays
Fiscal activities outside the Federal budget.
Budget funds and the Federal debt
Reconciliation of actual and estimated receipts and relatively uncontrollable outlays
PART 7. THE BUDGET SYSTEM A N D C O N C E P T S . . . . . .
The budget process
Coverage of the budget totals
Budget authority and related transactions
Collections
III
I
9
10
12
13
13
14
14
23
29
30
32
47
48
49
52
57
59
61
62
66
80
91
99
115
129
134
143
151
163
179
190
206
214
220
226
233
235
237
239
240
243
256
262
271
272
277
280
282
IV
CONTENTS
PART 7. THE BUDGET SYSTEM AND CONCEPTS-Continued
Other transactions
-_
Basis for budget figures
_
_
___
_
PART 8. THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
Explanatory note
_
_
_
Legislative branch
_
_
The Judiciary
_
_
Executive Office of the President
Funds appropriated to the President..
,
_
Department of Agriculture
_
_
_
Department of Commerce
_
_
_._
__
Department of Defense—Military
Department of Defense—Civil._.__
Department of Energy._
Department of Health, Education, and Welfare...
_
Department of Housing and Urban Development
_
_
Department of the Interior
_
___
__
Department of Justice
_
_
_._
_
Department of Labor
_
_
Department of State.
.._
_
Department of Transportation
_
_
Department of the Treasury
Environmental Protection Agency
General Services Administration
_,
National Aeronautics and Space Administration..
Veterans Administration
_
_
Other independent agencies
--^
-._
Allowances
-._-.
__
Budget totals
----_-.
Off-budget Federal entities
_._
PART 9. SUMMARY TABLES.
_
Explanatory note relating to the summary tables
Table 1. Budget summary
__
_
Table 2. Budget receipts, outlays, and budget authority
__
Table 3. Budget authority and outlays by agency
_
Table 4. Budget authority and outlays available through current action by Congress
Table 5. Relation of budget authority to outlays
_
__
Table 6. Obligations incurred, net.
,
_
_
Table 7. Balances of budget authority
Table 8. Summary of full-time permanent civilian employment in the executive branch
Table 9. Budget financing and outstanding debt
__
--Table 10. Budget receipts by source
_
Table 11. Offsetting receipts by type.
Table 12. Budget authority by function and agency
_
_
Table 13. Outlays by function and agency
Table 14. Controllability of budget outlays, 1969-79
•
Table 15. Legislative proposals for major new and expanded programs in the 1979 budget—
Table 16. Budget receipts by source, 1969-79
Table 17. Budget outlays by function, 1969-79
Table 18. Federal transactions in the national income accounts, 1968-79_
Table 19. Federal finances and the gross national product, 1958-79
__
Table 20. Composition of budget outlays in current and constant (fiscal year 1972) prices:
1956-79
Table 21. Budget receipts and outlays, 1789-1979
____
____.-INDEX
Page
284
285
289
290
291
298
301
304
309
319
325
331
335
337
351
355
364
366
370
373
379
384
386
389
391
393
421
422
424
425
426
427
428
429
430
431
432
433
434
435
436
440
443
456
470
472
476
478
485
486
487
488
489
PART 1
THE BUDGET MESSAGE
OF THE
PRESIDENT
THE BUDGET DOLLAR
Fiscal Year J979 Estimate
Excise
Where it ernes from.
Borrowing
12*
Corporation
Income Taxes
Individual
Income Taxes
Social
Insurance
Receipts
28*
Direct
Benefit
Payments
to Individuals
National
Defense
24*
Net Interest
8*
Grants
to States
and Localities
Mi
Other Federal
Operations
BUDGET MESSAGE OF THE PRESIDENT
To the Congress of the United States:
The first complete budget of any new administration is its most
important. It is the administration's first full statement of its priorities,
policies, and proposals for meeting our national needs. Last February,
after just one month in office, I submitted a revised budget to the
Congress. That revision changed the direction of the prior administration's budget, but was—of necessity—based upon a review of
limited scope. I promised then that future budgets would reflect
detailed, zero-based reviews of Federal spending programs, reform
of the tax system, and reorganization of the Government. This budget
is my first major step in meeting that promise. It reflects, I believe,
a determination to face and make difficult decisions in a manner that
places the common good above that of any particular interest.
This budget represents a careful balancing of several considerations:
—The importance of a fiscal policy that provides for a continuing
recovery of the Nation's economy from the 1974-75 recession;
—The obligation of the Government to meet the critical needs of
the Nation and its people;
—The fact that resources are limited and that Government must
discipline its choices and its scope; and
—The need for careful and prudent management of the taxpayers'
resources.
THE BUDGET TOTALS
{In billions of dollars]
1977
actual
Budget receipts..
Budget outlays
Deficit ( - )
Budget authority....
1978
estimate
1979
estimate
357
402
400
462
440
500
-45
-62
-61
465.2
502.9
568.2
My budget provides for total outlays of $500 billion, an increase of
$38 billion, or 8%, over the 1978 budget, and receipts of $440 billion.
This budget total is a restrained one that:
—Meets essential national needs;
—Imposes strict priorities upon Federal expenditures; and
—Decreases the share of the Nation's gross national product taken
by the Federal Government from 22.6% to 22.0%.
3
THE BUDGET FOR FISCAL YEAR 1979
This budget places us on a path that will permit a balanced budget in
the future if the private economy continues its recovery over the
coming years.
At the same time, my budget embodies a fiscal policy that will
strengthen the economic recovery. I propose a progressive tax reduction of $25 billion to help assure continued economic recovery and
reduction in unemployment. An integral part of this tax reduction proposal is a set of recommendations for tax reform that will make the tax
system simpler and more equitable. Without the reduction, I would
have been able to announce a decline in the deficit of $15 to $20 billion
between 1978 and 1979. With the reduction, the budget deficit will
still decline slightly, because of careful restraints on expenditures. But
I judged that the most important priority this year was to reduce the
burdens on taxpayers. Only in this way can we ensure a vigorous
economy, a declining unemployment rate, a strong expansion of
private investment, and a stable budget balance in future years.
While the expenditures I recommend in this budget are restrained,
they are, nevertheless, directed toward overcoming our Nation's
crucial problems. I have looked carefully at existing approaches to
these problems and improved those approaches where possible. The
spending priorities of the past are now being shifted toward longneglected areas. These new priorities are based on the following
judgments:
—An effective national energy plan is essential to reduce our increasingly critical dependence upon diminishing supplies of oil and gas,
to encourage conservation of scarce energy resources, to stimulate
conversion to more abundant fuels, and to reduce our large trade
deficit.
The national energy plan I proposed last spring defined these goals.
This budget includes the programs and initiatives designed to meet
those objectives. Included are increased emphases on conservation and
nonnuclear research and development, energy grants and technical
assistance to States and localities, accelerated acquisition of the
strategic petroleum reserve, and greater emphases on nuclear waste
management. I continue in the unswerving belief that the Nation's
leaders have the obligation to plan for the future, and that the national
energy plan is essential to the future health and vigor of the American
economy. The United States also must take the lead in minimizing
the risks of nuclear weapons proliferation as we advance nuclear
power technology. Thus, this budget increases research and development funding for systems that present fewer risks than the plutoniumfueled liquid metal fast breeder reactor.
THE BUDGET MESSAGE OF THE PRESIDENT
5
—The essential human needs of our citizens must be given high
priority.
In the spring of 1977 I proposed a long-overdue reform of the
Nation's welfare system. This reform recognizes that this is a Nation of
men and women who do not wish to be wards of the Government but
who want to work and to be self-sufficient. It includes a combination of
employment opportunities and incentives for those who should work,
and a basic income for those who cannot. This budget anticipates
that Congress will pass the program for better jobs and income, and
begins the process of careful planning for the implementation of an
efficient and equitable system.
The budget also recognizes that ensuring the opportunity to compete and excel remains very important to our people. To give all children the healthiest possible start in life, I propose major expansion of
medical care and nutritional supplements for low-income expectant
mothers and infants. In addition, I propose major increases in educational assistance at all levels. Because of the continued high level of
unemployment, particularly among minorities, I believe public employment programs should be continued at high levels for another
year. Major increases in programs stressing employment for unemployed youth are recommended. A new effort will be mounted to place
more disadvantaged persons in private sector jobs by increasing the
involvement of the business community in local employment and
training programs.
I view a workable urban strategy as an important link in a wellarticulated domestic program and essential to the continuing recovery
of the national economy. This budget includes increases for many
programs benefiting urban areas and supports several efforts to
improve these programs. I anticipate sending to the Congress early in
the spring a set of further proposals dealing with the Nation's urban
problems.
—The Nationfs armed forces must always stand sufficiently strong to
deter aggression and to assure our security.
My request for defense provides for the steady modernization of
our strategic forces, and for substantial improvements in the combat
readiness of our tactical forces. To parallel commitments made by
our European allies, I am proposing significant increases in our overall
defense effort, with special emphasis on those forces and capabilities
most directly related to our NATO commitments. The defense
budget I recommend also emphasizes modernization and research
and development to meet future challenges to our security. But at
the same time, I am restraining defense expenditures by introducing
important efficiencies and by placing careful priorities upon our defense
needs. The 1979 defense budget is prudent and tight, but consists of
6
THE BUDGET FOR FISCAL YEAR 1979
a real growth in outlays of 3 % above the current year's budget. Consistent with campaign pledges to the American people, it is $8 billion
below the defense budget projected for 1979 by the previous administration.
—The Federal Government has an obligation to nurture and protect
our environment—the common resource, birthright and sustenance of
the American people.
This budget provides for substantially increased emphasis on
protection of all our environmental resources, for new attention
to our common heritage, and for substantial additions to our system
of public lands. Planned use of our natural resources has been designed
so that the most important of our unspoiled areas can remain forever
in the hands of the people.
—The Federal Government must lead the way in investing in the
Nation9s technological future.
Shortly after taking office, I determined that investment in basic
research on the part of the Federal Government had fallen far too
low over the past decade. Accordingly, I directed that a careful
review be undertaken of appropriate basic research opportunities. As
a result of that review, this budget proposes a real rate of growth of
almost 5% for basic research in 1979. I believe this emphasis is
important to the continued vitality of our economy.
This budget also reflects this administration's commitment to two
important approaches to making government work more efficiently and
responsively: reorganization and zero-base budgeting.
The reorganization effort I have launched seeks more than just a
streamlining of organization structure and the elimination of overlaps
and duplication. It seeks to make our Government more responsive,
more efficient, and more clearly focused on the most pressing needs
of our society. In 1977 I proposed—and the Congress accepted—a
Cabinet-level Department of Energy, a streamlined Executive Office
of the President, and a consolidation of our international information
activities. In 1978 I will propose further reorganizations in such areas
as the Federal Government's civil rights activities and the Federal
civil service system to make it more responsive and effective.
As I promised during my campaign, zero-base budgeting systems
have been applied throughout the Federal Government. This budget
is the product of a comprehensive zero-base review of all Federal
programs, both existing and new. In reviewing each agency's proposals,
I have used zero-base budget alternatives and agency rankings to compare and evaluate the many requests competing for resources. As a
result of the first year's effort, we have gained a better understanding
THE BUDGET MESSAGE OF THE PRESIDENT
7
of Federal programs and have made better, more evenhanded judgments. Because of this system the budget includes dollar savings,
and improvements in the way programs are operated. With experience,
zero-based budgeting should be even more effective in future years.
Other significant changes in the budget process are reflected in this
document. First: I have directed the Office of Management and
Budget to establish a multi-year budget planning system using longer
range budget projections. This will ensure that budget decisions are
made with full awareness of their longer range implications. Second:
we are using better techniques for estimating outlays so as to avoid
the chronic "shortfalls" of recent years. Third: we have explicitly
related the classification of the budget in terms of functions performed
by Government programs to the national needs and agency missions
served, as called for in the Congressional Budget Act of 1974.
In formulating this budget I have been made acutely aware once
more of the overwhelming number of demands upon the budget and
of the finite nature of our resources. Public needs are critically important; but private needs are equally valid, and the only resources the
Government has are those it collects from the taxpayer. The competition for these resources and my belief and commitment that we must
firmly limit what the Government taxes and expends have led me to
the premises on which my first budget is based.
—Critical national needs exist—particularly human and social
ones—to which resources must be directed.
—Government resources are scarce; their use must be planned with
the full awareness that they come from the earnings of workers
and profits of business firms.
—The span of government is not infinite. Priorities must be set and
some old priorities changed. If we are to meet adequately the most
critical needs, some demands must also be deferred. Government
action must be limited to those areas where its intervention is
more likely to solve problems than to compound them.
—We have an obligation to manage with excellence, and to maintain
proper priorities within the $500 billion proposed in this budget.
We all know that in a budget of this scale—larger than the
gross national product of all but three nations in the world—
there are dollars wasted and dollars misspent. These must be
minimal.
These premises are unexceptionable in general, but difficult and
controversial to apply. They have guided my actions in formulating
this budget and they will continue to do so in the future. But to be
successful I will need, and will work for, the help and cooperation of
the Congress. Both the Congress and the Executive have a clear, joint
8
THE BUDGET FOR FISCAL YEAR 1979
interest in an approach that helps us to meet the demands of the
future. In recent years the Congress has taken important steps—
through the establishment of the congressional budget process—to
improve its own means of establishing priorities. This administration
has worked closely with the congressional appropriations and budget
committees and has found them invaluable sources of advice. We will
continue in this spirit of cooperation, and I look forward to working
with the Congress and its leadership to obtain adoption of my budget
for fiscal year 1979.
JIMMY CARTER.
JANUARY 20,
1978.
PART 2
BUDGET SUMMARY
BUDGET SUMMARY
This part of the budget summarizes the President's major budget
proposals, and discusses management reform in the Government.
OVERVIEW OF THE PRESIDENTS BUDGET
This budget is the product of nearly a year of wide-ranging policy
review, and of systematic zero-based budget review of ongoing programs and new proposals. It contains significant changes in the allocation of the Federal Government's budget resources, particularly over
the longer run. Tax reform proposals will affect both the amount and
the source of funds available, while major proposals in high-priority
areas such as energy, welfare, and defense account for large proposed
changes in budget outlays. In addition, there are many significant
smaller program reforms and changes in emphasis or direction. While
these may not have the dramatic impact of major budget proposals,
they are important.
To help identify the President's initiatives, this budget contains a
comparison of the President's budget recommendations with the
budget as it would be in the absence of those recommendations, i.e., on
a current services basis. Current services estimates, which are required
by the Congressional Budget Act, are projections of the costs of existing programs and receipts under existing law—unchanged by either
congressional or Presidential actions. They include outlay increases that
result from, for example, increased numbers of beneficiaries entitled
to receive payments or, where required by law, increased benefits
due to higher costs of living. They do not take into account any future
policy changes either proposed by the President or contemplated
by the Congress.
Current services estimates, therefore, provide a basis of comparison
that highlights policy changes and recommendations in the President's
budget for discretionary increases or decreases in program levels.
Special Analysis A, which is published in a separate volume, includes a
detailed comparsion of the President's budget for 1979 with current
services estimates. It also explains more fully the basis on which the
estimates are made.
The President's budget recommendations for 1979 are $500.2 billion—an increase of $7.8 billion over the current services level. On
a current services basis, total outlays are projected to increase from
$492.4 billion in 1979 to $612.9 billion in 1983. By 1983 the program
changes recommended for 1979 in this budget would result in projected total outlays of $650.0 billion, $37.1 billion higher than the
projected current services level for 1983.
10
BUDGET SUMMARY
11
EFFECTS OF BUDGET PROPOSALS
(In billions of dollars]
1977
Estimate
1978
Receipts:
Current services
Income tax reductions and reforms
Energy proposals
____
Other proposals
Budget receipts
Outlays:
Current services....
Proposed legislation and discretionary charges...
Budget outlays
Surplus or deficit:
Current services
Surplus or deficit ( - )
356.9
1979
Projection
1980
1981
1982
1983
—
....
400.7 463.8 528.7 607.7 685.5 758.7
—.2 —23.5 —24.7 —27.0 —29.6 —33.8
-.1
1.1
2.9
4.3
5.5
7.9
-1.9
-1.5
-1.0
-3.8
-6.6
356.9
400.4
439.6
505.4
583.9
657.6
726.1
401.9
460.4
492.4
528.9
552.1
581.7
612.9
1.8
7.8
14.0
23.3
30.7
37.1
401.9
462.2
500.2
542.9
575.4
612.4
650.0
-45.0
-59.7
-28.5
-.2
55.6
103.8
145.8
-45.0
-61.8
-60.6
-37.5
8.6
45.2
76.2
Keceipts under the President's tax proposals are expected to be
$439.6 billion in 1979, a decrease of $24.3 billion from the current
services level. This reflects the tax reduction and reform proposals in
the budget. Without changes in the tax law beyond those proposed in
this budget, receipts of $726.1 billion are projected for 1983, $32.6
billion below the current services level of $758.7 billion. However,
since tax receipts tend to grow more rapidly than the economy as a
whole, the President will carefully consider proposing further reductions between now and 1983 in keeping with his stated policy of
holding the Federal budget to not more than 21% of the gross national
product, and letting our citizens share the benefits of expenditure
restraint in the form of reduced tax burdens.
The tax proposals in this budget are intended to increase the fairness
of the tax system and to support the continued recovery of the economy. In the absence of these reductions, unemployment might not
continue to decline in 1979. The spending proposals are intended to
direct our resources toward critical national needs and to place us on a
path permitting a stable budget balance. To avoid misinterpretation,
it must be emphasized that the budget surpluses projected beyond
12
THE BUDGET FOR FISCAL YEAR 1979
1979 on both a Presidential and current services basis are not meant
to indicate that such budget surpluses will in fact occur. The desirability of achieving these surpluses depends both on economic conditions
too far in the future to forecast, and on the need for new or expanded
programs or for further tax cuts.
FISCAL POLICY
The administration's fiscal policy proposals that were announced
shortly after taking office in January have played an important role in
continued economic recovery. Tax reductions in 1977, together with
increased spending for public works, countercyclical revenue sharing,
and public service jobs and other employment-related programs
were instrumental in maintaining a strong economy in 1977. The
effects of these programs increased during the year and helped to
offset weakness in some sectors of private spending during the second
half of the year, when the growth of real output slowed. For the year
as a whole, real output increased by 4.9%. By the fourth quarter,
real GNP was 5.7% above a year earlier.
The increase in employment in the last year was considerable,
rising from 88.4 million in December 1976 to 92.6 million a year
later. The unemployment rate dropped significantly over this period,
from 7.8% in December 1976 to 6.4% a year later. This drop in unemployment would have been larger but for an unusually large number
of new entrants—mostly women and teenagers—to the labor force.
The economic policies that have been put into effect in the last year,
together with the policy recommendations proposed in this budget,
will help sustain economic expansion in the years ahead. For 1978 and
1979, the tax reductions proposed in this budget, together with prudent increases in Federal spending, will help maintain the momentum
of the current expansion.
Policies that support economic recovery will continue to receive
high priority in the years ahead. The achievement of a high employment economy with a vigorously expanding private sector can do far
more than any single Government program to solve the human and
social problems that have been so evident in past years. Since unemployment remains unacceptably high, the budget will continue
rather than phase down the public service employment program.
Further, it will initiate a significant effort to increase private sector
jobs for the disadvantaged, and substantially increase youth employment programs, especially for minority youth. But, this effort cannot
be successful in the absence of a healthy economy, which can offer
the hope of new careers and opportunities to the unemployed.
BUDGET SUMMARY
13
BUDGET AUTHORITY
All budget outlays depend on the legal authority provided by the
Congress to spend money. This budget authority in some cases results in outlays during the fiscal year for which it is granted, and in
other cases results in outlays during subsequent years. For 1979, the
President is requesting new budget authority of $568.2 billion, an
increase over the current services level of $30 billion.
BUDGET AUTHORITY
[In billions of dollars)
1977
actual
Available through current action by the Congress
Available without current action by the Congress
Deductions for offsetting receipts.
Total, budget authority
_
__.
1978
estimate
1979
estimate
317.5
206.9
-59.2
327.4
235.3
-59.8
366.9
264.8
—63.6
465.2
502.9
568.2
465.2
499.5
538.3
MEMORANDUM
B u d g e t a u t h o r i t y , c u r r e n t services basis___
FEDERAL DEBT AND LENDING
During 1979 the Federal debt held by the public is expected to
increase from $617.8 billion to $690.8 billion. This increase is due
largely to the anticipated budget deficit. In addition, off-budget
Federal entities (discussed in Part 6 of this document) add significantly to the Government's borrowing requirements. Other factors,
such as changes in cash balances held by the Treasury, also affect
the debt.
During 1979 the direct loans of Federal agencies included in the
budget are expected to total $4.3 billion net of repayments. Total
new lending, however, will be $26.6 billion. In addition, off-budget
Federal entities are expected to make loans totaling $17.6 billion.
The Federal Government is also expected to guarantee or insure net
loans totaling $23.2 billion. Unlike direct loans, guaranteed and
insured loans generally do not result in budget outlays except in the
case of default. They do, however, affect credit markets, and, thus,
the economy as a whole.
260-000 O - 78 - 2
14
THE BUDGET FOR FISCAL YEAR 1979
DEBT AND LOANS
[In billions of dollar*]
Outstanding debt, end of fiscal year:
Gross Federal debt
Debt held by the public
Outstanding Federal and federally assisted loans, end of fiscal
year:l
Direct loans—on-budget
Direct loans-off-budget
_.._
Guaranteed and insured loans2
Government-sponsored enterprise loans 3
1977
actual
1978
estimate
1979
estimate
709.1
551.8
785.6
617.8
873.7
690.8
68.2
32.7
183.9
98.9
76.!
43.9
200.4
115.2
80.4
56.8
223.6
130.1
1
See Table F-7 in Special Analysis F, "Federal Credit Programs." published in a separate
volume
of this budget.
2
Excludes
loans held by Government accounts and Government-sponsored enterprises.
3
Net of loans between Government-sponsored enterprises, and between such enterprises and
Federal agencies.
FEDERAL CIVILIAN EMPLOYMENT
In keeping with the President's objective of holding Federal civilian
employment to the minimum necessary for the efficient and effective
operation of the Federal Government, full-time permanent employment in the executive branch (excluding the Postal Service) is estimated at 1,930,100 for the end of 1978 and 1,931,600 for the end of
1979. The 1978 estimate is about 15,000 below the level estimated for
1978 in the last budget of the previous administration.
MAJOR BUDGET PROPOSALS
Tax reductions and reforms.—The President's tax proposals
will help maintain the momentum of the current economic recovery,
encourage capital formation and improve productivity. They also
take significant steps toward developing a simpler and more equitable
tax system. In addition, reductions are proposed in excise taxes and
unemployment insurance taxes that will help to mitigate rising prices.
These reduction and reform proposals will reduce individual taxes
by about $17 billion in calendar year 1979, business taxes by about
$6 billion, and excise and payroll taxes by about $2 billion. The
individual income tax reductions are proposed to take effect on
October 1, 1978. The main elements of the tax reduction proposals
include:
—replacing the existing $750 deduction for personal exemptions
and the general tax credit with a $240 credit;
—replacing the present 14% to 70% rate structure with rates
ranging from 12% to 68%;
BUDGET SUMMARY
15
—reducing the maximum corporate income tax rate by 3 percentage
points, effective in October 1978, and by an additional 1 percentage point beginning in January, 1980;
—extending the investment tax credit of 10% to industrial and
utility structures (it currently applies only to equipment); and
—permitting the investment tax credit to offset up to 90% of tax
liabilities otherwise owed.
The income tax reduction proposals will reduce tax liabilities in
calendar year 1979 by $32 billion. These reductions are partially offset,
however, by a number of tax reform and simplification proposals,
which would increase tax liabilities in 1979 by about $9 billion. They
include:
—repeal of itemized deductions for gasoline taxes, sales taxes, and
certain miscellaneous taxes;
—replacing itemized deductions for medical expenses and casualty losses with a new "extraordinary expense" deduction;
—reduction or elimination of business deductions for entertainment
expenses;
—phase out over a 3-year period of preferential tax treatment for
Domestic International Sales Corporations; and
—elimination of certain tax shelters.
Together, these proposals will reduce taxes for nearly all taxpayers,
particularly for low and moderate income families. For example, as
shown in the table below, a family of four with an adjusted gross
income of $15,000 would have its tax liability reduced by $258,
or 19%.
I t is also proposed that the Federal excise tax on telephone services
be repealed. Futher, the tax rate paid by employers under the Federal
unemployment insurance system would be reduced from 0.7% to
0.5%. These tax reductions of $2 billion in 1979 will also have a
modest anti-inflationary impact.
CHANGE IN TAX LIABILITY FOR A FAMILY OF FOUR
Adjusted gross income
$10.000
$15,000
$20.000
$25.000
$30.000
$40,000
.—
Present tax Proposed2
rates and structure
structure *
446
1.330
2,180
3.150
4,232
6,848
134
1,072
1,910
2,830
3,910
6,630
Tax
saving
312
258
270
320
322
218
Percent
saving
70
19
12
10
8
3
16
THE BUDGET FOR FISCAL YEAR 1979
Energy.—This administration proposed last April a national
energy program. The plan outlined taxes, programs, and regulations
for achieving the Nation's energy objectives.1 To help carry out this
program, the Department of Energy was established on October 1,
1977, and the program and budget of the Department appear for the
first time in this budget.
The energy strategy of the administration contains four central
elements.
—an effective conservation program for all sectors of energy use;
—oil and gas pricing policies to provide certainty for investments
and incentives for more production while protecting the consumer;
—conversion of industry and utilities to coal and other more
abundant fuels; and
—a vigorous program to develop renewable and nearly inexhaustible
resources for future energy needs.
This budget includes the following proposals in support of the
national energy program:
—greater emphasis on nonnuclear' energy research and development;
—full funding of the first 500 million barrels of petroleum for the
strategic petroleum reserve and initial funding for construction
of additional storage facilities;
—increased grants and technical assistance to States and localities
for energy conservation, which will be coupled with legislation
to improve the State grants program to be proposed in the
spring, after completion of a study of the role of State governments in the energy area.
Closely related to the administration's energy strategy is its policy
to assure the continued essential contribution of nuclear power to
meeting the Nation's energy requirements and to prevent international
proliferation of nuclear weapons material and technology.
Nuclear policy.—In April, the President announced his policy of
deferring indefinitely the commercial reprocessing and recycling of
nuclear fuel as well as the commercialization of the liquid metal
cooled fast breeder reactor (LMFBR).
As part of this policy, cancellation of the LMFBR demonstration
project at Clinch River, Tenn., an unnecessarily expensive and
outdated project, was proposed. This policy also recognized the need
to continue research and development in the search for advanced
alternative reactors and approaches to recycling fuels that present
less risk of international proliferation of nuclear weapons than the
1
A detailed discussion of the taxes and programs is contained in Parts 4. Budget Receipts, and
5, Meeting National Needs—the Federal Program by Function, respectively.
BUDGET SUMMARY
17
use of separated plutonium. The policy also reaffirmed the commitment to demonstrate safe disposal of nuclear wastes to insure the
continued use of the current generation of nuclear powerplants.
The budget for the Department of Energy strengthens and continues
the administration's nuclear policies and programs with the following
proposals:
—a high-priority commitment to the completion of a thorough
analysis of the various possible advanced nuclear fuel cycle and
breeder reactor systems;
—provision of the resources necessary to develop and demonstrate
by, the earliest possible date, 1985, an effective way for permanently disposing nuclear waste;
—increased efforts to assess the total United States and world
uranium resource base; and
—a new research effort in the Department of Energy to examine
ways to increase current generation reactor safety margins.
Better jobs and income proposal.—The better jobs and income
proposal to reform the welfare system marks the first stage in fulfillment of the President's campaign pledge to abolish the existing
fragmented welfare system and replace it with a single, coordinated,
job-oriented program for those who can work, and an equitable
income assistance program for those in need who are unable to work.
Thus, the proposed program will provide:
—increased emphasis on finding jobs in both the public and private
sectors;
—a work benefit for those who work but whose incomes are inadequate to support their families;
—simplification and improved administration of the present cumbersome and duplicative welfare system;
—income support for those unable to work because of age, disability,
or family circumstances; and
—fiscal relief for States and localities from much of the welfare
costs they now bear.
Welfare reform is designed to ensure that work will always be more
profitable than welfare. It will reduce reliance on welfare payments by
doubling the number of single-parent family heads who support their
families primarily through earnings from work. The program will
combine effective work requirements and strong work incentives
together with improved efforts to place the disadvantaged in private
sector jobs and up to 1.4 million public sector jobs at the minimum
wage for family breadwinners if there are not enough unsubsidized
jobs. Several existing and inconsistent income support programs will
be replaced by a single cash assistance program providing a uniform
18
THE BUDGET FOR FISCAL YEAR 1979
minimum level of income support for the poor. This simplification
will be accomplished by consolidating the programs of aid to families
with dependent children, supplemental security income, and the food
stamp program, all of which have differing eligibility requirements.
There will be stronger incentives to keep families together, a reduction
in fraud and error, and a significant reduction in pressure on State
and local budgets.
The budget assumes that the President's welfare reform proposal
will be fully operational by July 1, 1981, with the earned income tax
credit expansion effective January 1, 1982. Estimated budget outlays
in 1979 are relatively small—$160 million. However, in 1980, the
program would add $1.4 billion to the total costs of the existing
programs that will be replaced, $4.7 billion in 1981, and $8.8 billion
in 1982. Total costs of the program are shown below.
ESTIMATED COSTS OF PROGRAM FOR BETTER JOBS AND INCOME
1979
Cost of existing programs and other offsetsAdditional costs
Total cost of program
1980
1981
1982
1983
.2
1. 0
1. 4
9.6
4.7
30.0
8.8
30.8
12.9
.2
2. 4
14.4
38.8
43.7
Retirement
Commission.—Outlays
for retirement programs
account for more than 25% of the Federal budget today and an increasingly large share of the GNP. Payroll taxes and contributions to
pension systems are an increasing burden on the income of our work
force. The Employee Retirement Income Security Act has had a
profound influence on private pension plans. Social security benefits
and coverage have changed dramatically in recent years. State and
local governments have, in many instances, increased benefit levels
dramatically without necessarily developing the means by which they
will be financed. Over the long run the ratio of retired people to working people in America is almost certain to change dramatically. These
and other changes require that the structure of, and interrelationship
among, retirement programs in the United States—Federal, State and
local, or private—be carefully evaluated. The budget reflects proposed
legislation to establish a Presidential Retirement Policy Commission.
The Commission will evaluate the present and future problems of
existing retirement, disability, and survivor plans in the public and
private sector.
The Commission will be asked to make specific recommendations
for reforms in the systems to insure that workers have adequate
coverage and benefits. The Commission will also recommend how
BUDGET SUMMARY
19
future retirement plans should be financed. It is expected to complete
a series of reports to the President over a 2-year period.
Health.—Federal health care outlays will increase $5.4 billion,
from an estimated $44.3 billion in 1978 to an estimated $49.7 billion
in 1979. The largest share of this increase, almost $5 billion, will be
spent on medicare and medicaid which provide health care and
financial protection against illness for our aged, disabled, and poor
citizens. The 1979 budget assumes enactment of legislation setting
up the child health assessment program in medicaid which will make
1.7 million additional low-income children eligible for medicaid and
will improve the medical and social services available to those children
under medicaid. Another legislative proposal—for which $118 million
in Federal outlays is estimated—will make medicaid family planning
and prenatal services available to all low-income women.
The Department of Health, Education, and Welfare estimates that
at least 2 million teenagers do not have access to organized family
planning services. In addition to the $35 million provided for similar
services last year, the budget proposes another $100 million in budget
authority in 1979 for the prevention of unwanted adolescent pregnancies. This includes a separate appropriation of $60 million for new
joint Federal and State efforts to establish networks of community
based services.
The 1979 budget assumes enactment of legislation proposed by the
administration last year that would limit the growth rate of hospital
costs. The resulting savings in 1979 would be $2 billion in total:
$730 million to medicare and medicaid; and $1.3 billion to private
payers of hospital bills.
The administration expects to submit legislation this coming year
on national health insurance. It will not, however, affect Federal
outlays in 1979 or 1980, and therefore, funding is not included in the
budget.
Urban revitalization.—Federal programs should not be viewed
as a panacea for the ills of the cities, nor can every city be considered
in financial difficulty. There must, however, be readily available
assistance for those cities that, having exhausted existing resources
and efforts, remain hard pressed.
The impact of Federal policies on the cities has been fragmented,
difficult to assess, and in many instances contributed directly to the
current problems. Programs often worked at cross purposes. An
effective urban program should stimulate and encourage the urban
development process by encouraging business development in the
cities, thereby providing the jobs and tax revenues necessary for a
healthy, broadly based, and growing urban economy. The Federal
20
THE BUDGET FOR FISCAL YEAR 1979
Government is currently providing extensive resources to urban
areas, through grants to State and local governments and direct payments to individuals who live in the Nation's cities. In this budget,
attempts have been made to improve delivery and target existing
programs better. The budget includes increases of approximately
$11 billion to these programs since 1977. During the coming months,
the administration will develop proposals that deal with the need for
new programs and resources and that assure more effective delivery of
existing programs. Specific proposals will be submitted to the Congress
in the early spring.
Transportation.—The need to reauthorize the Federal highway
and transit programs in 1979 has provided an opportunity to narrow
sharply the differences between these two programs. The administration is proposing new legislation that will provide more than $45
billion for a 4-year program for highways and transit. Numerous
steps have been taken to reduce the number of rigid highway and
transit program categories that limit the flexibility of States and
localities to make transportation decisions. The bill will require States
to decide by 1982 whether they will complete their portions of the
interstate highway system, or use the funds for alternative transit or
highway projects.
Basic research.—Basic research creates the fundamental scientific
knowledge that underlies long-term advances in many areas of
national concern such as defense, health, and energy. It contributes
to long-term advances in technology and the continuing growth of our
economy. The Federal Government now supports about two-thirds
of all basic research undertaken in the United States.
The administration recognizes the special role that the Federal Government must play in assuring an adequate level of overall national
support for basic research. The budget proposed for 1979 provides
over $3.6 billion for the conduct of basic research. This represents
real growth of 10.9% over 1978, about 5% above expected increases
in the cost conducting basic research. The private sector is unlikely
to invest heavily in such research because of the long-term nature
and uncertainty of payoffs. Nonetheless, the administration believes
that industry should seek to strengthen its support of basic research.
Foreign aid.—The 1979 budget provides for a 23% increase in
budget authority for development assistance, with much of the increase to meet payments due on prior U.S. subscriptions to the international development lending institutions. The President is committed
to further substantial increases in development assistance in the future
BUDGET SUMMARY
21
provided that current efforts to increase its effectiveness are successful.
Security supporting assistance and military assistance will decrease
slightly in 1979, except for the countries of the Middle East where
continuation of current programs is a central element of U.S. support
for a peaceful settlement.
Defense.—The budget provides for prudent growth in our defense
capabilities. This growth is undertaken in concert with that of our
NATO allies in order to maintain the continued strength and security
of the alliance. NATO-related portions of the defense budget receive
special attention and increased funding in 1979. The remainder of the
defense budget is level in real terms, with increases in some areas offset
by savings in areas such as headquarters, support, and training.
The proposed defense increases are concentrated in the area of
general purposes forces and relate primarily to modernizing equipment
and combat readiness. Overall defense employment levels will be reduced slightly. Total 1979 outlays for the national defense function
are estimated at $117.8 billion, 0.7% above the estimated current
services level of $117.0 billion.
Education.—The major responsibility for education rests with the
States; the Federal role is a limited but important one. It is to help
assure that every American has access to a good education regardless of
family economic condition, State of residence, skin color, sex, or
physical handicap.
In recent years, American schools have come under criticism. Surveys indicate that many students are leaving school without adequate
mastery of basic reading and mathematic skills, and college entrance
scores are falling. Further, college tuition has increased so rapidly
that even middle-income families, to say nothing of low-income
families, have difficulty sending their children - to college. This is
particularly true at small- and medium-sized private institutions.
Middle-income American families often find it very difficult or impossible to provide higher education for their children. The costs are
more than they can afford, yet their incomes are often too high to
qualify for either Federal assistance or private scholarships.
The 1979 budget responds to these problems in several ways. The
Head Start program is being expanded so that by the time disadvantaged children are old enough to go to school, they will be ready for
school. Aid to State and local education agencies is increased substantially. The impact aid program will be revised to direct funds
only to those school districts truly burdened by the Federal presence.
Educational research will be directed toward the educational problems
22
THE BUDGET FOR FISCAL YEAR 1979
of the disadvantaged groups—minorities, the poor, and the handicapped. Both low- and middle-income college students will be aided
through an increased maximum level for basic educational opportunity
grants.
Tax credits to offset part of the cost of higher education are often
suggested as a remedy for the problems of middle income families, and
this year received very serious consideration by the Congress. The
administration, while recognizing the seriousness of the problem,
believes that this approach to its solution has serious drawbacks. First,
the amount of assistance that was under consideration by the Congress
and that would be tolerable in terms of maintaining budget discipline
would provide only marginal help to individual families, and would go
to the very wealthy as well as the hard-pressed middle class. Second,
the tax credit approach ignores the long-run benefits that individuals
receive from their investment or the investment of their parents in
education. Third, it would apply to public as well as private institutions, in effect adding additional Federal funds in an area that should
continue to be largely the responsibility of State and local governments.
The administration plans to recommend a more effective alternative
during the coming months which will address the needs of middle
income families. The educational objectives that supporters of tuition-tax credit programs seek can be better achieved through alternative means.
Employment and training*—During the recent recession, the
Federal Government has heavily supported temporary employment
in State and local governments. Because unemployment remains unacceptably high, the 725,000 public service jobs provided in 1978 will
continue through 1979. With an improved and expanding economy,
the main focus of employment and training programs in 1979 will
return to the primary goal of improving the long-run earnings and
employment for individuals with special needs—youth, minorities,
and others with especially high rates of unemployment. Programs
designed specifically for youth will be increased. Legislation will be
proposed to insure that resources are more closely targeted on meeting
the needs of such individuals. A special effort, involving $400 million
of Federal funds, will be started to bring private business into closer
cooperation with State and local governments to increase access to
good jobs for the disadvantaged and unemployed. Local business
councils for this purpose will be supported and private sector job
training increased. Special attention will be given to the employment
needs of disadvantaged youth who are experiencing high rates of
unemployment.
BUDGET SUMMARY
23
BETTER MANAGEMENT OF THE FEDERAL GOVERNMENT
The effectiveness of the Federal Government in meeting the needs
of the American people depends not only on what services the Government provides, but also on how it provides them. Therefore, the
President is instituting or proposing major changes in the way the
Government is managed. These include zero-base budgeting (ZBB),
reorganization of the executive branch, multiyear budget planning,
full funding for major construction and procurement programs, and
stricter controls over Federal credit programs.
Zero-base budgeting.—The 1979 budget is the first prepared
using zero-base budgeting. This process facilitated decisionmaking
at policy levels, and greatly aided the President in his review of the
budget. The President directed the use of this management process to:
—focus the budget process on a comprehensive analysis of objectives, needs, and activities, in order to make more effective use of
the taxpayer's dollar;
—provide better coordination of planning, budgeting, and
evaluation;
—cause managers to evaluate in detail the cost-effectiveness of
their operations;
—expand management participation in planning and budgeting at
all levels of the Federal Government.
The results of the first year effort have been encouraging. Program
managers were more directly involved in preparing initial budget
requests, and now have a better understanding of the relationship
between policy initiatives, program planning, and resource allocation.
ZBB requires managers to articulate objectives. In many instances
it helped to clarify the managers' functions and roles and increased
their opportunities to eliminate unnecessary activities. A better understanding and clearer articulation of objectives is intended to make
successful program completion more likely.
ZBB also required managers to identify and examine alternative
methods of accomplishing major objectives. This forced a rethinking
of whether the established ways of doing things is the most appropriate
way. As a result, a number of agencies have recommended changes in
the way they carry out programs. Another facet of ZBB required
managers to analyze systematically the effects of various levels of
performance and funding to carry out their mission. This generally
began by identifying the minimum level of performance, below which
the program could not be operated effectively.
24
THE BUDGET FOR FISCAL YEAR 1979
One or more levels above the minimum were then analyzed, thus
providing policy officials a range of choices for each program. A ranking
of priorities was then established among these various program levels.
This stimulated trade-offs within and between programs when it
became apparent, for example, that to gain a new initiative, an
existing program would need to be curtailed or eliminated.
Some of the benefits of ZBB resulted in dollar savings, while others
did not. Increased efficiency and effectiveness mean more than saving
money. It means providing better and sometimes increased services
for the citizen at the same cost.
Results of the first year's efforts are being assessed so that next
year's process may build on this year's experience. Many agencies will
increase the involvement of field offices in the zero-base budget
process. There will be more extensive use of indepth zero-base budget
reviews. Agencies will become more sophisticated in their preparation
and review of ZBB materials, thus reducing the paperwork burden and
making the decision process easier. The result should be greater
benefits next year as the Federal Government realizes the full potential
of zero-base budgeting.
Reorganization
of the executive branch.—The President
pledged to reorganize the Federal Government to make it more
efficient and responsive. To help the President keep this pledge, the
Congress passed the necessary authorizing legislation—the Reorganization Act of 1977 (Public Law 95-17). While the reorganization
effort has been centered in the Office of Management and Budget, the
Congress, interest groups, individual citizens, and other parts of the
executive branch have been asked to help identify problems and
propose solutions.
Reorganization proposals will take many forms. Some will seek to
end unnecessary and burdensome intrusion by Government in the
private sector—as in reducing Government regulation in some areas,
and streamlining the regulatory process in others. Some will seek to
improve Federal management practices—as in the reform of Federal
personnel policies. Some will propose structural changes, in which related programs previously scattered across the Government and working at cross-purposes can be effectively combined. Three reorganization proposals have already been approved: The establishment of the
Department of Energy, the reorganization of the Executive Office of
the President, including a substantial reduction in staff, and the
consolidation of the U.S. Information Agency and the State Department's Bureau of Educational and Cultural Affairs into the newly
BUDGET SUMMARY
25
created International Communication Agency. In addition, numerous
advisory committees in the executive branch, which have outlived
their usefulness, are being eliminated.
In 1978, the President will announce reorganization proposals to
consolidate Federal equal employment compliance activities and to
reform the Federal personnel system. Later reorganization proposals
will involve reform of:
—community and local economic development;
—education and human service programs;
—natural resources and environmental programs;
—border management;
—justice and law enforcement;
—disaster assistance;
—Federal cash management;
—regulatory practices;
—intergovernmental coordination mechanisms, and
—administrative services.
Multiyear budget planning.—Since 1970 the Federal budget has
shown the longer range implications of administration policies by presenting long range projections of Federal outlays and receipts. These
projections, however, have largely been limited to showing the longer
run implications of budget year decisions. In most cases, explicit
decisions regarding the years beyond the budget year were not made.
As a result, the budget was difficult to control and changes in the
allocation of resources difficult to make.
In order to remedy this problem, the President has asked each
agency to prepare future budget requests within the context of a
planning period that extends for 3 years beyond the budget year.
This will have several important effects:
—it will expand the Government's planning horizon to 3 years
beyond the budget year and fully integrate long-range planning
into the executive budget cycle;
—it will ensure that the long-term consequences of programmatic
changes and proposals are identified and highlighted throughout
the decisionmaking process;
—it will provide a more useful structure for review and analysis of
spending and tax policy choices.
All significant program and tax policy proposals prepared for the
President or the Office of Management and Budget in the coming year
will include an analysis that identifies the long-term effects of the
proposals. The budget year amounts included in the 1979 Budget and
the detailed long-range estimates prepared in connection with the
budget will be the starting point for the multiyear planning system.
26
THE BUDGET FOR FISCAL YEAR 1979
These estimates will provide a basis for evaluating the budgetary effect
of major programs or tax policy initiatives subsequently proposed to
the President.
The result will be more effective use of the taxpayers' dollars and
better control of the Federal budget. Further, the private sector,
which makes wide use of multiyear budget planning, and the State
and local sector will have a clearer view of Federal Government programs and intentions. Finally, the Congress will have a broader
context within which to develop and project its concurrent resolutions
on the budget and develop authorization and appropriation measures.
Full funding.—Under longstanding budget policy, budget authority for direct Federal major construction and major procurement
projects covers the entire cost anticipated at the time the projects are
initiated even though costs will be incurred and outlays made over a
period extending beyond that fiscal year. This policy applies to all
types of projects that are separate and distinct units. Activities such
as operation and maintenance, and continuing research are fully
funded on an annual basis under this policy. In the past certain construction programs were exempted from the full-funding policy, including the water resource projects of the Bureau of Reclamation
(Department of the Interior) and construction projects of the Corps
of Engineers. The administration proposes to remove these exceptions
for all new projects. The policy of full funding will not be applied
retroactively to programs already initiated. Annual fund increments
will continue to be requested for existing programs until they are
completed.
Control of Federal credit activities.—Federal lending and loan
guarantees are a large and growing means of meeting objectives of
Federal programs. Gross loans and loan guarantees by the Federal
Government are expected to be $99.7 billion in 1979, and total Federal
loans and loan guarantees outstanding are estimated to be $360.8
billion at the end of 1979. While plans for direct and guaranteed lending activity under individual Federal credit programs are reviewed
during the annual budget process, there is no systematic mechanism
in the Government for regularly reviewing total Federal credit activity. Consequently, there is no systematic way to consider the resource allocation implied by those plans or whether the share of credit
transactions being made or guaranteed by the Federal Government
is reasonable. In order for the Government to influence efficiently the
allocation of economic resources and the behavior of financial markets
and the economy as a whole, it must exercise control over guaranteed
loans as well as over direct loans and other outlays and the ways in
which these programs are financed.
BUDGET SUMMARY
27
In testimony last year before congressional committees, the administration agreed to consider ways to achieve better control over
credit programs. Consistent with that commitment, the Administration will propose to the Congress shortly a set of control procedures.
The basic elements of the administration's proposal are likely to be
the following:
—that, as part of the executive branch budget process, the President establish, (a) overall ceilings on the authority to make direct
loans and on the authority to guarantee loans, and (b) overall
annual ceilings for gross new direct loans and loan guarantees.
(The annual ceilings would be based on a consideration of the
impact of Federal lending activity on the allocation of available
resources, the general economy, and financial market conditions.);
—that the President propose and request congressional approval
of limitations in annual appropriation acts on the amounts of
new direct loans and loan guarantees for each program;
—that the Congress establish similar controls in its budget process,
including ceilings on aggregate lending activity in the budget
resolutions.
The administration will work closely with the appropriate committees of the Congress to reach agreement on a mutually acceptable
system of credit control.
PART 3
ECONOMIC ASSUMPTIONS AND
LONG-RANGE BUDGET
PROJECTIONS
29
269-000 O - 78 - 3
ECONOMIC ASSUMPTIONS AND LONG-RANGE
BUDGET PROJECTIONS
This part of the budget discusses the long-range budget outlook
and the economic assumptions underlying that outlook. The first
section presents economic assumptions for calendar years 1977 through
1983 and explains the nature of these assumptions. The second
section examines the budget outlook for fiscal years 1979 through
1983, presenting projections of receipts by major source and budget
authority and outlays by function and by agency.
ECONOMIC ASSUMPTIONS
The economy and the budget are interrelated. Economic conditions
significantly affect the budget, and the budget, in turn, influences
economic conditions. Both budget outlays and the tax structure have
substantial effects on national output, employment, and inflation.
Other activities of government outside the budget, such as loan
guarantees and regulatory requirements, also affect the economy.
Their effect is, however, less direct and less measurable.
At the same time, outlays for many Federal programs are directly
linked to developments in the economy, and this linkage has become
increasingly strong in recent years. For example, most retirement
and other social insurance benefit payments are now tied by law
to cost-of-living indexes. Medicare and medicaid outlays are affected
directly by the price of medical services. Interest on the debt is
linked to both market interest rates and the size of the budget
surplus or deficit, both of which in turn are influenced by economic
conditions.
Outlays for some benefits, such as unemployment compensation,
vary with the unemployment rate and are thereby linked to economic
events. In addition, budget receipts vary with individual and corporate incomes and wages and salaries, all of which respond to both
real economic growth and inflation. Thus, receipts and some benefit
payments serve as "automatic stabilizers" for the economy by either
restraining inflation or cushioning economic downturns.
Because of these complex interrelationships between the budget and
the economy, budget estimates depend significantly upon assumptions
made about the economy. Therefore, the administration's economic
assumptions are presented to assist in understanding the budget
estimates and long-range projections and the fiscal strategy planned
30
PROJECTIONS
31
SHORT-RANGE ECONOMIC FORECAST
[Calendar years; dollar amounts in billions]
Actual
1976
Item
Gross national product:
Current dollars:
Amount
Percent change...
Constant (1972) dollars:
Amount
Percent change
Incomes (current dollars):
Personal income
Wages and salaries.
Corporate profits
Price level (percent change):
GNP deflator:
Year over year
Fourth quarter over fourth quarter
Consumer Price Index:
Year over year
December over December
_
Unemployment rates (percent):
Total:
Yearly average
_
Fourth quarter
Insured *
Federal pay raise, October (percent) 2
_
Interest rate, 91 -day Treasury bills (percent) 3 . _
__
_
Forecast
1977
1978
1979
1,706
11.6
1,890
10.8
2,099
11.0
2,335
11.2
1,275
6.0
1,337
4.9
1.400
4.7
1,467
4.8
1,383
892
157
1,536
989
172
1,704
1,099
192
1,892
1,219
217
5.3
4.7
5.6
5.9
6.1
6.3
6.2
6.0
5.7
4.8
6.5
6.9
5.9
6.1
6.1
6.0
7. 7
7.9
6.4
4.8
5.0
7.0
6.6
4.6
7.0
5.2
6.3
6.2
4.1
6.0
6.1
5.9
5.8
3.6
6.0
6.1
1
2
Insured unemployment as a percentage of covered employment.
These are the rates used in determining the dollar allowances for additional funds needed to
cover
pay increases. Agencies will be required to absorb any pay increases in excess of the allowances.
3
Average rate on new issues within period. The forecast assumes continuation of market rates at
the time the estimates were made.
by the President. These assumptions are presented on a calendar year
basis, whereas the budget estimates are presented on a fiscal year
basis.
The short-range economic assumptions for calendar years 1977 (for
which only three-quarters of actual data were available when the
forecast was made), 1978, and 1979 are forecasts of the probable
economic conditions consistent with the administration's budget proposals. Real growth in calendar years 1978 and 1979 is projected to
average about 4%% with a decline in the unemployment rate to about
6.2% by the fourth quarter of calendar year 1978 and to 5.8% by the
fourth quarter of 1979. Inflation is projected to remain at around 6%
per year during this period.
32
THE BUDGET FOR FISCAL YEAR 1979
Accurate economic forecasts for the years 1978 and 1979 are difficult
at best. For longer time periods, forecasts are subject to even greater
uncertainty. Thus, in contiast to the short-range economic assumptions, the longer-range assumptions, for the period 1980 to 1988, are not
forecasts of probable economic conditions. Instead, they are projections
that assume progress in moving toward the administration's goals of
a more fully employed economy and greater price level stability.
The administration will propose further fiscal actions—in particular, further tax reductions—during the 1980-83 period if such actions are required to sustain the progress of the economy toward these
important goals.
The projections assume real economic growth of about 4%% in the
1980 to 1983 period. The rate of unemployment falls to 4.9% by the
end of 1981 and to 4.0% by the end of the projection period. Inflation
is assumed to decline steadily—by a half percentage point per year—
reaching 4% in 1983. The 1983 unemployment target, while desirable,
will be particularly difficult to achieve simultaneously with the achievement of a lower rate of inflation and will require reexamination in subsequent years.
LONG-RANGE BUDGET PROJECTIONS
The effects of current decisions extend beyond the budget year
They establish program trends that have important influences on the
size and composition of budgets for years into the future. Just as the
composition and level of the 1979 budget have been determined largely
by past decisions, the decisions and proposals it embodies will affect
subsequent budgets strongly.
Basic assumptions.—The receipts projections presented in this
section are consistent with the foregoing economic assumptions, and
with continuation of current tax laws as modified by the proposals
contained in this budget. The outlay and budget authority estimates
indicate the degree to which resources would be committed by the
continuation during 1980-83 of existing and currently proposed programs at the program levels recommended for 1978 and 1979. Therefore, these projections are not forecasts of future receipts, outlays, or
budget authority. Nor are the projections intended as recommendations for future budget levels. Instead, they are most accurately
read as indications of the degree to which this and previous years'
budget decisions commit us in the future. However, in coming years,
under the multiyear budgeting system now being established by the
administration, this need no longer be the case. Future budget projec-
PROJECTIONS
33
LONG-RANGE ECONOMIC ASSUMPTIONS
[Calendar years; dollar amounts in billions]
Assumptions
Item
1980
Gross national product:
Current dollars:
Amount
_
Percent change
Constant (1972) dollars:
Amount.
_
Percent change
Incomes (current dollars):
Personal income
_
Wages and salaries
Corporate profits
Price level (percent change):
GNP deflator:
Year over year
_
_
Fourth quarter over fourth quarter
Consumer Price Index:
Year over year
December over December
Unemployment rates (percent) :
Total:
Yearly average
_
Fourth quarter.
Insured 1
Federal pay raise, October (percent) 2_
__
Interest rate, 91-day Treasury bills (percent) 3
_
__.
1981
1982
1983
2,587
10.8
2,858
10.5
3,133
9.6
3,400
8.5
1,537
4.8
1,614
5.0
1,690
4.7
1,761
4.2
2,095
1,363
245
2,315
1,521
274
2,538
1,670
301
2,754
1,812
326
5.7
5.5
5.2
5.0
4.7
4.5
4.2
4.0
5.7
5.5
5.2
5.0
4.7
4.5
4.2
4.0
5.4
5.3
3.3
6.0
6.1
5.0
4.9
2.9
6.0
6.1
4.5
4.4
2.6
5.7
5.8
4.1
4.0
2.3
5.4
5.3
1
Insured unemployment as a percentage of covered employment.
These are the rates used in determining the dollar allowances for additional funds needed to
cover pay increases. Agencies will be required to absorb any pay increases in excess of the allowances.
3
Average rate on new issues within period.
2
tions can in fact represent tentative plans for the long-term scheduling
of major new initiatives, program reductions or terminations, and
major tax law changes.
These projections provide for future cost-of-living adjustments to
most benefit programs, for Federal pay raises, and for other built-in
cost increases (such as interest) consistent with the economic assumptions outlined above. In general, the outlay projections assume that
programs remain level in dollar terms except where projected beneficiary levels change or where there is an explicit budget plan to increase
or decrease program levels over time.
34
THE BUDGET FOR FISCAL YEAR 1979
The budget outlook.—The following table summarizes the budget
outlook from 1977 to 1983 based on current administration policy and
on the economic assumptions shown above. Receipts are projected to
increase by an average of 1 3 % per year from 1979 to 1983, rising from
$440 billion to $726 billion. Over the same period, outlays for current
programs and those proposed in this budget are projected to rise
by an average of 6.8% a year, from $500 billion to $650 billion.
Thus, the budget is projected under current administration policies to
move into surplus in 1981 with larger surpluses in subsequent years.
The administration intends to restrain outlays to the President's
stated limit of 2 1 % of G N P so t h a t a balanced budget in 1981 is
achievable if the economy continues to recover along the path assumed
in the long-range economic assumptions. However, since receipts
depend directly upon economic performance, the goal of a balanced
budget would have to be deferred if the President determined t h a t the
economy required further tax reductions.
THE BUDGET OUTLOOK, 1977-83
[In billions of dollars]
1977
Outlays under current programs
Outlays under proposed legislation. _
Total outlays
Receipts under current law.
Effects of tax proposals
Total receipts
Budget surplus or deficit ( - )
1978
1979
1980
1981
1982
1983
401.9 461.5 499.6 541.0 569.1 604.2 641.5
_
.7
.5
1.9
6.3
8.2
8.4
401.9 462.2 500.2 542.9 575.4 612.4 650.0
_. 356.9 400.7 472.2 539.6 619.8 700.7 774.8
- . 4 - 3 2 . 6 - 3 4 . 2 - 3 5 . 9 - 4 3 . 1 -48.7
356.9 400.4 439.6 505.4 583.9 657.6 726.1
- 4 5 . 0 - 6 1 . 8 -60.6 -37.5
8.6
45.2
76.2
Projected increases in receipts from 1979 to 1983 are attributable
largely to growth in incomes and increases in social security taxes
scheduled under current law, offset in part by proposed income tax
reductions. The table below shows projected receipts by source and
the effect on receipts of administration tax proposals. The effect of
the tax proposals is shown in comparison both to current law and to
extension of temporary tax provisions.
The tax reductions proposed by the administration in this budget
cause receipts as a percentage of GNP to fall to 19. 3 % in 1979. But,
Because of the progressive nature of the tax system, and because of
scheduled increases in social security taxes, this percentage rises in
subsequent years and, in 1981, is at about the 21% limit the President
has established. The prospect that the tax burden imposed by the
PROJECTIONS
35
BUDGET RECEIPTS BY SOURCE
(In billions of dollars]
1977
Individual income taxes.___
Corporation income taxes—
Social insurance taxes and
contributions
Excise taxes
Other
Total
Memorandum: Effect of
proposed legislation:
In comparison to current
law:
Individual income taxes.
Corporation
income
taxes...
Social insurance taxes *_
Excise taxes
Other
Total 1
In comparison to extension
of temporary tax provisions;
Individual income taxes.
Corporation
income
taxes
Social insurance taxes 1 .
Excise taxes
Other.
Total 1
1978
1979
1980
1981
1982
1983
156.7
54.9
178.8
58.9
190.1
62.5
223.9
69.1
262.9
77.7
301.7
86.5
339.9
94.6
108.7
17.5
19.0
124.1
20.2
18.3
141.9
25.5
19.7
160.1
31.1
21.1
186.3
34.7
22.4
208.4
36.7
24.3
225.9
39.5
26.4
356.9
400.4
439.6
505.4
583.9
657.6
726.1
-1.7
-31.1
-39.3
-42.8
-48.3
-55.2
-.6
-7.5
—.6
6.8
-.2
-11.2
.2
16.6
-.5
-13.8
.6
21.0
-.8
-16.2
—.8
23.0
-.8
-17.4
—.9
25.6
-.9
-.4
-32.6
-34.2
-35.9
-43.1
-48.7
-1.7
-23.9
-26.5
-29.3
-33.5
-39.6
-.6
-6.4
—.6
6.8
-.2
-8.6
.2
12.1
-.5
-9.6
.6
15.3
-.8
-9.8
—.8
17.1
-.8
-10.6
—.9
19.4
-.9
-24.3
-23.3
1.8
1.8
-.4
-23.7
-27.8
-32.6
1
Includes the effect of accelerating State and local deposits of social security taxes, which can
be accomplished by administrative action.
Government may exceed this limit, as currently projected for 1982 and
1983, would be another reason to consider further tax reductions.
Individual income taxes are projected to rise from $190 billion in
1979 to $340 billion in 1983. Corporation income taxes rise by 51%
over the same period, from $62 billion to $95 billion. In comparison
to extension of temporary tax provisions, tax proposals included in
the budget reduce individual and corporation income taxes by $30
36
THE BUDGET FOR FISCAL YEAR 1979
billion in 1979 and by $50 billion in 1983. The largest reductions
result from tax reductions proposed to become effective October 1,
1978. The estimates also include refunds of the proposed wellhead tax
on crude oil as part of the administration's energy proposals. For a
more detailed discussion of these and other tax proposals, see Part 4
of the Budget.
Social insurance taxes and contributions, which increased from
only 12.5% of receipts in 1957 to almost 30.5% two decades later, are
projected to increase to 31.1% of total receipts in 1983. The social
security tax rate, which increased from 11.7% to 12.1% on January
1, 1978, is scheduled to increase to 12.26% on January 1, 1979, and to
13.3% on January 1, 1981. The taxable earnings base is scheduled to
increase annually, rising from its current level of $17,700 to a projected $34,800 by 1983. The estimates reflect proposed legislation
to reduce the unemployment insurance tax rate from 0.7% to 0.5%
effective January 1, 1979.
Budget Receipts: 1969-1983
orporation Income Taxes X;
1969
Ft**! Yea*
I9T1
1973
m%
1979
Estimate
1981
1901
PROJECTIONS
37
Estate and gift taxes, customs, excise taxes, and miscellaneous
receipts are projected at $66 billion in 1983, an increase of $21
billion from 1979. The excise tax estimates reflect the administration's
energy proposals announced last spring, which increase excise taxes
significantly, together with increased spending and offsetting reductions in other taxes. They also reflect an administration proposal to
eliminate the telephone excise tax (effective October 1, 1978). Finally,
these estimates assume continuation of the 4 cents per gallon Federal
excise tax on gasoline (scheduled under current law to expire on September 30, 1980) and airport and airway taxes, as amended by administration proposals (scheduled to expire on June 30, 1980).
Budget Outlays and Receipts as a Percent of GNP
38
THE BUDGET FOR FISCAL YEAR
1979
Budget trends.—The projections of budget authority and outlays
shown in this section are extrapolations based on the economic assumptions shown above and the costs of programs proposed in the
budget. These projections, then, represent an estimate of the degree
to which future resources are committed by current administration
policy. They also provide an indication of the resources currently
projected to be available for future national needs.
Total budget outlays are projected to increase at an average annual
rate of 6.8%, from $500 billion in 1979 to $650 billion in 1983. Outlays
are projected to fall from 22.6% of G N P in 1978 to 20.6% of G N P in
1981, below the President's ceiling of 2 1 % .
PERCENTAGE COMPOSITION OF BUDGET OUTLAYS
Actual
Category
National defense:
Direct Federal payments to individuals
Grants to States and localities
Other
Subtotal, national defense..._
Nondefense:
Direct Federal payments to individuals.
Payments for individuals through
States and localities
All other grants to States and
localities
Netinterest
Other__.
Subtotal, nondefense
Total.
1969
1.3
1973
Estimate
1977
1979
1980
Projection
1981
1982
1983
41.7
1.8
*
28.4
2.0
*
22.2
2.0
2.1
2.1
2.1 2.1
*
*
*
*
*
*
21.5 21.6 22.1 22.5 22.8
43.0
30.2
24.3
23.5
23.7
24.2
24.6
24.6
33.5
39.5
37.4
37.5
38.6
39.2 39.9
4.0
5.3
5.7
5.4
5.4
5.5
6.9
6.9
14.5
11.6
7.0
12.4
11.3
7.5
11.8
11.5
8.0
14.0
11.1
8.0
14.2
10.8
7.8
13.1
10.7 10.3
7.3
6.7
12.8 12.6
57.0
69.8
75.7
76.5
76.3
75.8
75.4 75.1
5.5
24.9
5.5
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
"Lets than 0.1%.
The major change in the composition of budget outlays over
the last 10 years has been the rapid growth in payments for individuals
and the corresponding relative decline in resources devoted to other
programs. Over the past decade, outlays for such payments have been
growing more rapidly than the national output, and more rapidly
than total Federal outlays. Until recently, spending for national
39
PROJECTIONS
Federal Outlays—Constant 1979 Dollars
ar*
$ Billion.
m
500 ~~
Payments to
individuals
and Grants
defense (in constant dollars) was declining. This trend has been reversed and defense spending is projected to increase modestly (in
constant dollars) through 1983.
The $248 billion increase in budget outlays over the 1977-83 period
is shown by major components in the accompanying chart. National
defense, social security, medicare and medicaid, Federal pay and
retirement, and public assistance and related programs account for
more than 75% of the increase. A substantial portion of the increase
in these programs results from demographic changes and inflation.
Projections of budget authority and outlays are shown on pages
43 to 45 by function and by agency. While total outlays are projected
to increase by 30% from 1979 to 1983, projected outlays for international affairs, health, income security, and national defense increase faster. Outlays for these functions rise by 45%, 39%, 38%,
and 38%, respectively. In comparison, GNP is projected to rise by
47% from 1979 to 1983. Projected outlays for some functions, such
as interest and transportation, increase less rapidly than the budget
as a whole, while others decline over the projection period. However,
40
THE BUDGET FOR FISCAL YEAR
1979
Projected Increases in Budget Outlays from 1977
$ Billion,
300
300
$248
Otbr
200
~ 200
Increase
From
tin
Medicare
andMedkaid
the functional totals reflect certain adjustments used to develop the
long-range projections. For example, most income security and health
spending is adjusted for projected demographic and price level changes.
National defense includes adjustments for increases in the prices of
most purchased goods and services. A separate allowance for pay
increases is also included in the national defense function. (If this
allowance were removed, defense spending would increase by 29%
from 1979 to 1983.)
In contrast, some programs do not contain separate adjustments
for pay and price level changes. Instead, amounts for pay and price
level increases in these programs are grouped as a single unallocated
allowance. This allowance for each year also includes an amount to
cover possible program initiatives and other contingencies. Thus,
while the functional trends reflect the future implications of current
law and budget proposals, they do not attempt to predict the eventual functional totals or the specific allocation of resources that may
be required to meet national needs in the future.
The high-employment budget is an analytical concept based on the
budget estimates that would be generated were the economy con-
PROJECTIONS
41
tinuously operating at a high level of employment. The unemployment
rate at high employment is estimated to be 4.9% currently and to
decline to 4.7% by 1983. These rates are consistent with a 4.0% rate
in 1955, adjusted for changes in the composition of the labor force
toward groups that typically experience higher rates of unemployment.
High-employment outlays exclude that portion of benefits under the
regular unemployment insurance program that occur when the economy is not operating at high employment. They thus eliminate the
fluctuations in actual outlays for these benefits due to year-to-year
changes in the unemployment rate. The differences between these
adjusted receipts and outlay estimates represent the high-employment budget surpluses or deficits. Changes in the high-employment
budget balance from one year to the next provide a rough measure
of the impact of discretionary fiscal policy (that is, excluding automatic stabilizers) on the economy.
HIGH-EMPLOYMENT RECEIPTS AND OUTLAYS
[In billions of dollars]
1977
1978
1979
1960
1981
1982
_.
397
387
459
427
498
461
541
522
574
590
612
654
650
715
High-employmentsurplusordeficit(—)
-10
-32
-37
-19
16
42
65
High-employment outlays
High-employment receipts
_
1983
High-employment outlays are estimated at $498 billion in 1979,
rising to $650 billion in 1983. High-employment receipts are projected
to increase from $461 billion in 1979 to $715 billion in 1983. The highemployment budget balance changes from a deficit of $37 billion in
1979 to a surplus of $65 billion in 1983. As noted earlier, however,
these changes in the high-employment budget balance may not occur
because of future tax cuts that may be required to achieve our economic
goals.
Controllability.—Outlays in any one year are considered to be
relatively uncontrollable by the President when the spending level is
determined by existing statutes or prior contracts. Relatively uncontrollable outlays consist of two major categories: open-ended
programs and fixed costs, and payments from prior-year contracts and
obligations. As recently as 1967, open-ended programs and fixed costs
amounted to 36% of the budget. By 1973 they were more than 50%
of the budget and by 1979 they are expected to be 57%, rising to 59%
by 1983. This substantial growth has been due primarily to the rapid
increases in benefit payments for individuals.
42
THE BUDGET FOR FISCAL YEAR
1979
CONTROLLABILITY OF BUDGET OUTLAYS
[In billions of dollars]
Category
1979
1980
1981
1982
1983
Relatively uncontrollable outlays:*
Social security and railroad retirement
Medicare and medicaid.
Other payments for individuals..
Net interest
General revenue sharing
Other open-ended programs andfixedcosts....
108.0
42.1
73.8
39.9
6.9
14.7
119.1
48.4
78.3
43.4
6.9
13.3
130.6
55.1
81.3
44.8
6.9
11.9
142.8
62.4
84.8
44.9
6.9
12.0
154.9
70.4
89.2
44.0
6.9
12.8
Subtotal, relatively uncontrollable outlays K
285.3
309.3
330.7
353.7
378.1
Relatively controllable outlays:1
Proposed changes in open-ended programs and
fixed costs
New programs and other budget outlays1
-1.0
221.0
-3.7
242.9
-3.9
254.6
-6.1
271.2
-8.2
286.7
Subtotal, relatively controllable outlays * . . . .
220.0
239.1
250.7
265.1
278.6
Undistributed employer share, employee retirement...
-5.2
-5.5
-6.0
-6.4
-6.7
500.2
542.9
575.4
612.4
650.0
Total budget outlays....
1
For purposes of long-range projections, outlays from prior-year contracts and obligations,
which are relatively uncontrollable, are included in the category "New programs and other budget
outlays". These amounts are shown separately in table 14, Part 9.
In addition, outlays from "prior-year contracts and obligations"
amount to an additional 15% to 20% of the budget that is considered
relatively uncontrollable in the short run. Though this category cannot be projected beyond the budget year, current amounts suggest
that the relatively uncontrollable portion of the budget will continue
to represent 75% to 80% of the total.
The large proportion of the budget that is relatively uncontrollable
has obvious fiscal policy implications. Without legislation to restrain
the growth in such programs, attempts to control total budget outlays
fall on an increasingly smaller portion of the budget. The President
is instituting a multiyear budget planning system to provide greater
control of the Federal budget. With a longer planning horizon, the
options for changing both the scope and direction of Federal programs
can be expanded substantially.
PROJECTIONS
43
BUDGET AUTHORITY BY FUNCTION
[In billions of dollars]
Estimate
National defense
Military personnel
Retired pay
Operation and maintenance
Procurement
Other
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
_...
_
Education
Training and employment
____
Other
___
_
..._
Health
Medicare
Medicaid
Other..._
Income security
Social security
Federal employee retirement
Unemployment compensation..
__
Public assistance and related programs..._
Other
Veterans benefits and services
Administration of justice
General government
General purposefiscalassistance
Interest....
_
Allowances:
Civilian agency pay raises
Contingencies
Undistributed offsetting receipts:
Employer share, employee retirement
Interest received by trust funds._
Rents and royalties: Outer Continental Shelf.
Projection
1979
1980
1981
H>82
1983
128.4
(27.2)
(10.1)
(37.4)
(31.9)
(21.8)
13.8
5.2
9.5
12.7
7.2
6.6
18.6
7.7
139.6
(27.4)
(11.1)
(39.1)
(35.7)
(26.2)
14.4
5.4
6.6
12.8
4.6
7.7
19.3
7.7
150.9
(27.6)
(12.1)
(40.8)
(39.8)
(30.7)
14.3
5.1
6.0
12.6
4.9
7.5
19.4
7.5
162.7
(27. 7)
(13.0)
(42.8)
(43.9)
(35.4)
16.5
4.5
6.5
12.5
5.3
7.5
19.5
7.6
174.9
(27.9)
(13.8)
(44.2)
(48.5)
(40.4)
16.7
4.2
6.4
12.5
4.6
7.7
19.7
7.7
34.1
35.2
(13.6)
(13.7)
(14.8)
(15.7)
(5.7)
(5.8)
58.8
68.8
(37.0)
(46.1)
(12.9)
(13.7)
(9.0)
(9.1)
215.1
236.0
(115.8), (135.8)
(21.4)
(22.5)
(15.5)
(12.1)
(57.3)
(60.2)
(5.2)
(5.4)
19.7
20.0
4.2
4.2
4.6
4.4
15.8
20.5
53.7
56.5
37.7
(13.7)
(18.2)
(5.8)
77.5
(53.8)
(14.5)
(9.2)
255.4
(154.7)
(23.4)
(10.6)
(61.2)
(5.6)
20.2
4.2
4.3
20.4
58.0
38.9
(13.7)
(19.3)
(5.9)
85.1
(60.1)
(15.6)
(9.3)
273.9
(170.6)
(24.4)
(11.0)
(62.2)
(5.7)
20.5
4.2
4.2
18.7
58.8
33.6
(14.4)
(12.3)
(6.9)
52.6
(31.7)
(12.0)
(8.9)
190.9
(100.2)
(19.7)
(17.0)
(49.1)
(5.0)
19.1
4.1
4.4
16.6
49.0
1.2
3.0
2.3
2.8
3.6
5.5
5.1
7.2
6.5
8.8
—5.2
-9.1
-1.8
—5.5
-10.3
-1.8
—6.0
-11.7
-1.8
—6.4
-13.3
-1.8
—6. 7
-15.1
-1.8
_
568.2
611.7
663.5
711.4
750.3
Budget authority, off-budget Federal entities....
16.1
9.2
9.2
10.2
10.2
Budget authority, including off-budget entities. _
584.3
620.9
672.7
721.6
760.5
Total budget authority
MEMORANDUM
44
THE BUDGET FOR FISCAL YEAR
1979
BUDGET OUTLAYS BY FUNCTION
[In billions of dollars]
Estimate
1979
National defense
Military personnel
Retired pay
Operation and maintenance.__
Procurement
Other
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
Education
Training and employment
Other
Health
Medicare
Medicaid
_
Other
Income security
Social security
Federal employee retirement
Unemployment compensation
Public assistance and related programs.__.
Other___
Veterans benefits and services
Administration of justice
General government
General purposefiscalassistance
Interest
..__
Allowances:
Civilian agency pay raises
Contingencies....
_
Undistributed offsetting receipts:
Employer share, employee retirement
Interest received by trust funds
Rents and royalties: Outer Continental Shelf.
Total budget outlays
_...
Projection
1980
117.8
(26.9)
(10.1)
(36.5)
(24.2)
(20.1)
7.7
5.1
9.6
12.2
5.4
3.0
\7A
8. 7
1981
128.6
(27.1)
(11.1)
(37.9)
(28.2)
(24.3)
8.5
5.3
10.4
13.1
5.0
4.5
\8.5
8.0
1982
139.3
(27.2)
(12.0)
(39.8)
(31.0)
(29.3)
9.5
5.2
7.0
13.2
3.7
3.2
18.7
7.3
1983
150.6 162.1
(27.4) (27.6)
(12.9) (13.8)
(41.6) (43.3)
(35.0) (39.1)
(33.6) (38.4)
10.4
11.2
4. 7
4.3
7.4
6.8
12.9 12.7
3.9
4.9
3.0
2.9
19.1
19.1
7.5
7. 7
30.4
33.2
35.3
37.7
(12.0)
(13.2)
(13.6)
(13.7)
(12.8)
(14.2)
(15.9)
(18.2)
(5.6)
(5.7)
(5.8)
(5.8)
49.7
53.7
58.2
63.3
(29.4)
(32.2)
(35.9)
(40.0)
(12.0)
(12.9)
(13.7)
(14.5)
(8.3)
(8.6)
(8.6)
(8.7)
160.0
174.3
190.1 204.6
(103.1) (113.4) (124.5) (136.3)
(12.0) (13.4) (14.9) (16.2)
(11.8) (11.4) (10.4) ( 9 . 5 )
(27.8) (30.5) (34.6) (36.8)
(5.3)
(5.6)
(5.7)
(5.9)
19.3
19.7
19.9
19.9
4.2
4.3
4.3
4.2
4.3
4.6
4.3
4.3
9.6
9.4
9.5
10.1
49.0
53.7
56.5
58.0
1.1
1.7
2.3
3.5
3.6
6.1
5.1
7.2
38.9
(13.7)
(19.3)
(5.9)
68.9
(44.5)
(15.6)
(8.8)
220.4
(148.0)
(17.6)
(9.1)
(39.7)
(6.0)
20.3
4.2
4.2
10.8
58.8
6.5
8.8
—5.2
—5.5
— 6.0
— 6.4 —6.7
-9.1 -10.3 -11.7 -13.3 -15.1
-1.8
-1.8
-1.8
-1.8 -1.8
500.2
542.9
575.4
12.5
8.1
7.8
512.7
551.0
583.1
612.4 650.0
MEMORANDUM
Outlays, off-budget Federal entities
Outlays, including off-budget entities
8.7
8.8
621.2 658.7
45
PROJECTIONS
BUDGET AUTHORITY AND OUTLAYS BY AGENCY
[In billions of dollars]
Department or other unit
Projection
Estimate
1980
1979
1981
1982
1983
BUDGET AUTHORITY
Legislative and Judicial branches.
Executive Office of the President
Funds appropriated to the President
Agriculture
Commerce
Defense—Military
Defense—Civil
Energy
Health, Education, and Welfare
Housing and Urban Development
Interior __
Justice
Labor
State
Transportation
Treasury. _
Civil Service Commission
National Aeronautics and Space Administration.
Veterans Administration
Other agencies
Allowances
Undistributed offsetting receipts
Total budget authority
OUTLAYS
Legislative and Judicial branches
Executive Office of the President
Funds appropriated to the President
Agriculture
Commerce
Defense—Military
Defense—Civil
Energy
Health, Education, and Welfare
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Civil Service Commission
National Aeronautics and Space Administration
Veterans Administration
Other agencies
Allowances
Undistributed offsetting receipts
Total budget outlays
260-000 O - 78 - 4
1.7
.1
11.0
20.0
2.7
125.6
2.5
11.6
185.0
33.1
4.5
2.5
29.9
1.5
17.4
69.6
20.0
4.4
19.0
18.2
4.2
-16.0
1.8
.1
10.1
18.8
3.3
136.9
2.5
8.7
205.6
39.9
4.6
2.5
30.8
1.6
18.0
74.1
21.8
4.5
19.7
19.0
5.1
-17.6
1.7
.1
10.0
19.7
2.9
148.2
2.5
7.9
237.8
39.9
4.4
2.4
28.7
1.7
18.1
82.0
22.9
4.2
20.0
19.0
9.1
-19.5
1.8
1
12.1
20.5
2.8
160.1
2.5
8.1
266.0
40.0
4.3
2.4
29.9
1.8
18.2
83.6
23.9
3.5
20.2
18.8
12.3
-21.5
1.8
1
12.3
20.3
2.9
172.3
2.5
7.6
290.3
40.1
4.3
2.4
31.4
1.9
18.4
82.9
24.9
3.1
20.5
18.7
15.3
-23.6
568.2
611.7
663.5
711.4
750.3
1.7
1.8
.1
1.7
.1
5.1
17.7
4.4
115.2
2.5
10.1
181.3
9.5
4.0
2.5
25.1
1.4
15.8
62.6
12.3
4.3
19.2
18.5
2.8
-16.0
5.2
18.6
4.1
125.8
2.5
10.9
197.9
11.7
4.4
2.6
26.1
1.5
17.0
67.6
13.8
4.5
19.7
19.0
5.8
-17.6
1.7
.1
5.8
17.8
2.7
136.5
2.5
7.5
215.9
12.4
4.2
2.5
27.1
1.6
17.4
71.0
15.2
4.2
19.9
19.0
9.7
-19.5
1.8
.1
6.4
18.5
2.7
147.9
2.5
8.0
233.4
13.5
4.2
2.4
28.8
1.7
17.9
73.2
16.7
3.7
19.9
18.5
12.3
-21.5
6.8
20.0
2.8
159.5
2.5
7.4
252.1
14.9
4.3
2.4
29.5
1.8
17.9
74.9
18.1
3.3
20.3
17.8
15.3
-23.6
500.2
542.9
575.4
612.4
650.0
.1
PART 4
BUDGET RECEIPTS
47
BUDGET RECEIPTS
This section of the budget discusses the major sources of budget
receipts for 197 7 to 1980 and the legislative proposals affecting them.
Budget receipts by source are shown in detail in table 10 of Part 9.
The economic assumptions underlying the estimates are presented in
Part 3 together with estimates of receipts for 1981-1983 and estimates
of receipts at high employment. Part 6 contains an analysis of the
difference between receipts for 1977 and the budget estimates for
1977 made 2 years ago.
SUMMARY
Budget receipts in 1979 are estimated to be $439.6 billion, an increase of $39.2 billion from the $400.4 billion in 1978. Receipts in 1980
are estimated at $505.4 billion. These estimates reflect the effects of:
• proposed tax reductions generally effective October 1, 1978, and
tax reforms, generally effective January 1, 1979;
• proposed increases in energy excise taxes, but with largely
offsetting refunds; and
• increases in social security payroll taxes resulting both from
previous legislation and from the recently enacted Social Security
Amendments of 1977.
Composition of budget receipts.—The Federal tax system relies
predominantly on income and payroll taxes. In 1979, under the proposals in this budget:
• Income taxes paid by individuals and corporations are estimated
to be $190 billion and $62 billion, respectively. Combined, these
sources account for 57% of estimated total budget receipts.
• Social insurance taxes and contributions—composed largely of
payroll taxes levied on wages and salaries, and most of which are
paid equally by employers and employees—will produce an
estimated $142 billion, 32% of the total.
• Excise taxes imposed on selected commodities, services, and
activities are expected to provide $25 billion, 6% of the total.
• Other taxes and miscellaneous receipts are estimated to be $20
billion, 4% of the total.
48
49
BUDGET RECEIPTS
BUDGET RECEIPTS BY SOURCE
[In billions of dollars]
Source
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts
Total, budget receipts
1977
actual
1978
estimate
1979
estimate
156. 7
54.9
108.7
17.5
7.3
5.2
6.5
178.8
58.9
124.1
20.2
5.6
5.8
6.9
190.1
62.5
141.9
25.5
6.1
6.4
7.2
356.9
400.4
439.6
1980
estimate
223.9
69.1
160.1
31.1
6.5
7.0
7.5
505.4
ENACTED TAX CHANGES
Individual and corporation income taxes.—In the last 3 years,
four major laws have changed individual and corporation income taxes.
The first was the Tax Reduction Act of 1975 (Public Law 94-12),
enacted March 29, 1975. It provided a partial rebate of calendar year
1974 individual income tax liabilities, a number of temporary reductions in individual and corporation income tax liabilities (generally
applicable to calendar year 1975), and a few permanent changes in the
tax structure. The most notable of the permanent changes were limits
on percentage depletion for oil and gas producers and revisions in the
tax treatment of certain foreign income. Because the law was not
enacted until late March, withholding schedules were not changed
to reflect the reduction in individual income tax liabilities until May 1,
1975. Individual income tax withholding rates were reduced by enough
to effect the full year's reduction in liability during the 8 months remaining in the calendar year; the withholding rate reductions, therefore, had to be greater than if they had begun on January 1.
The second major tax statute was the Revenue Adjustment Act of
1975 (Public Law 94-164), which was enacted on December 23, 1975.
This act, in effect, provided tax reductions for the first 6 months of
calendar year 1976. For corporations, the act extended the rate reductions that were enacted in the Tax Reduction Act of 1975. For individuals, however, a larger reduction was enacted in order to avoid
increasing the withholding rates that applied during the last 8 months
of calendar year 1975.
The third major tax act affecting individual and corporation income
taxes (as well as estate and gift taxes and, to a very small degree,
excise taxes) was the Tax Reform Act of 1976 (Public Law 94-455),
enacted October 4, 1976.1 This act extended some temporary provisions
1
The Congress also enacted interim legislation that extended individual income tax withholding
rates. These rates were scheduled to increase July I. 1976, and were extended because the Congress
had not completed action on the substantive tax law changes that were later incorporated into the
Tax Reform Act of 1976.
50
THE BUDGET FOR FISCAL YEAR 1979
scheduled to expire and made others permanent. It also enacted a
number of major tax reforms and other changes, including: provisions
limiting investment by noncorporate taxpayers in tax shelter devices;
increasing the minimum tax on individuals and corporations; imposing new limitations on taxes deferred through Domestic International
Sales Corporations (DISC's); and providing a comprehensive revision
of estate and gift taxes.
The Tax Reduction and Simplification Act of 1977 (Public Law
No. 95-30) was enacted May 23, 1977. This act extended for 1 year
the temporary provisions of the Tax Reform Act that were scheduled
to expire December 31, 1977. In addition, it enacted two major tax
changes and a number of other reforms and simplifications.
The temporary provisions of the previous act that were extended
for 1 year, to December 31, 1978, are:
• The general tax credit of $35 per exemption or 2% of the taxpayer's taxable income up to $9,000, whichever is larger.
• The earned income credit, for families with dependents, equal
to 10% of earned income subject to a maximum of $400. The
maximum credit is phased down to zero between adjusted gross
income (or earned income, if greater) of $4,000 and $8,000.
• Corporate rate reductions, from 22% to 20% on the first $25,000
of income and from 48% to 22% on the second $25,000.
One major change enacted in this legislation was simplification of
the structure of standard deductions. Previously, a taxpayer who did
not itemize deductions could take either a minimum standard deduction (low-income allowance) of $2,100 for a joint return and $1,700
for a single person or a percentage standard deduction of 16% of
adjusted gross income with a maximum of $2,800 for a joint return
or $2,400 for a single person. The 1977 act replaced this two-part
standard deduction, with a flat standard deduction of $3,200 for taxpayers filing a joint return and $2,200 for a single person. This permanent change in liabilities was effective beginning in calendar year
1977, but lower withholding rates were not effective until June 1,
1977, following enactment in May. Unlike the Tax Reduction Act of
1975, withholding rates were not adjusted to effect the full $4 billion
reduction in calendar year 1977 liabilities during the remaining
7 months of the year. As a result, refunds in the spring of 1978 will be
about $2.1 billion higher than they would have been if withholding
rates had been lowered January 1, 1977.
The other major change in the 1977 act was a temporary jobs
tax credit. For calendar years 1977 and 1978, employers whose employment has increased by more than 2% over the previous year
will generally be able to claim a tax credit of $2,100 per additional
employee. The aggregate credit is limited to $100,000 per employer
per year. Wages offset by the credit may not be treated as deductible
business expenses.
BUDGET RECEIPTS
51
The following table shows the effect of these four acts on receipts
for the years 1975-80.
EFFECT ON RECEIPTS OF MAJOR INCOME TAX LEGISLATION
[In billions of dollars]
Tax Reduction Act of 1975:
Individual income taxes
Corporation income taxes
Subtotal
TQ
-9.4
-.8
-8.7
-2.0
-.2
-.1
-.6
1.0
-.2
2.9
3.3
-.1
3.6
-10.2 -10.8
-.3
.4
2.8
3.2
3.4
-5.4
-.6
-.5
_*
-1.4
_*
_*
-6.0
-.5
-1.8
_*
_*
-2.5
-.3
-13.2
-2.6
1.4
-8.7
-3.5
-1.0
-3.8
-2.4
-1.2
-3.9
-2.5
-1.6
-2.8
-14.4
-13.2
-7.4
-8.0
-15.3 -11.3
-2.5 - 2 . 3
-5.6
-.2
-2.6 -17.8 -13.7
-5.8
-9.6
.9
-1.6
Subtotal
Tax Reform Act of 1976: 1
Individual income taxes
Corporation income taxes
Other (largely estate and gift)
Subtotal
Tax Reduction and Simplification
Act of 1977:
Individual income taxes
Corporation income taxes
1979
1980
-.4
-2.1
-.6
Subtotal
Total
1978
1976
Revenue Adjustment Act of 1975:
Individual income taxes
Corporation income taxes _ _ _
Total effect of above acts:
Individual income taxes
Corporation i ncome taxes _
Other
1977
1975
-9.4 -14.1
- . 8 -2.6
- 3 . 2 -17.4
- . 4 -2.5
1.4
-24.2
-3.1
-1.0
-15.3
-1.4
-1.2
-10.2 -16.7
- 3 . 6 -18.5
-28.2
-17.9 -10.3
ADDENDUM
Further effect of Tax Reduction and
Simplification Act of 1977 if
temporary features were to be
permanently extended: 2
Individual income taxes
_
Corporation income taxes
Total
_
_.
..__
—7.2 —12.8
—\.\
—2.6
- 8 . 3 -15.4
*$50 million or less.
Includes the effect of interim legislation that extended individual income tax withholding rate*
and corporation income tax rate reductions from July 1, 1976, to Oct. 4. 1976, when the Tax Reform
Act of 1976 was enacted.
2
Excludes extension of the jobs tax credit. Unlike other provisions of this act. the jobs
tax credit is a short-term countercyclical provision.
1
52
THE BUDGET FOR FISCAL YEAR 19 79
Social security taxes.—The recently enacted Social Security
Amendments of 1977 will raise social security taxes significantly.
These increases, which are in addition to increases that were already
scheduled under prior law, were designed to place the social security
system on a sound financial basis.
The table below shows the social security tax rate and taxable
earnings base scheduled under prior law and the corresponding figures
under the 1977 act. By 1981, the new legislation increases the combined employer-employee tax rate by 0.7 percentage points above
what it otherwise would have been and increases the taxable earnings
base by $7,800. The act legislates further increases in the rate and
taxable earnings base in subsequent years over and above the increases
scheduled to occur under prior law. Also, this legislation requires
employers as well as employees to pay social security taxes on
employee income derived from tips effective January 1, 1978. T h e
1977 act increases receipts by $38 million in 1978, $3.2 billion in 1979,
and $8.8 billion in 1980.
SOCIAL SECURITY TAX RATE AND TAXABLE EARNINGS BASE
Calendar years
Before Social Security Amendments of 1977:
Tax rate (percent)
Taxable earnings base ($)
After Social Security Amendments of 1977:
Tax rate (percent)
Taxable earnings base ($)
1977
1978
1979
1980
1981
11.7
16,500
12.1
17,700
12.1
18,900
12.1
20,400
12.6
21,900
11.7
16,500
12.1
17,700
12.26
22,900
12.26
25,900
13.3
29,700
PROPOSED TAX CHANGES
Income tax reductions and reforms.—The administration is
proposing major tax reductions, generally effective October 1, 1978,
and tax reforms, generally effective January 1, 1979. These proposals
provide the economic stimulus to help maintain the momentum of the
current economic recovery. They take significant steps toward developing a simpler, more efficient, and more equitable tax system, and
will reduce taxes for nearly all taxpayers, particularly for low and
moderate income families.
Individual income taxes.—Major tax reductions for individuals will
result from substitution of a personal $240 credit for the current
general tax credit and personal exemption of $750 and from reducing
rates from the current range of 14-70% to 12-68%.
A number of proposed simplifications and reforms will increase
receipts in 1979 and subsequent years partially offsetting the individual
income tax reductions described above. They include:
BUDGET RECEIPTS
53
• Eliminating the deductions for State and local sales, gasoline,
personal propert}r, and miscellaneous taxes.
• Combining the separate deductions for medical expenses and
uninsured casualty losses into a new "extraordinary expense"
deduction available only to the extent that these items together
exceed 10% of adjusted gross income.
• Eliminating the alternative tax of 25% on up to $50,000 of
capital gains.
• Including unemployment compensation benefits in the adjusted
gross income of single taxpayers with incomes above $20,000 and
married couples filing joint returns with incomes above $25,000.
• Eliminating the deduction for half of regular taxes paid from
the base for the minimum tax. Currently, individuals may
deduct from this base (principally the untaxed half of net capital
gains) the greater of $10,000 or half of regular taxes paid.
• Restricting tax shelter investments by eliminating or limiting
accelerated depreciation on investments in real estate, taxing
certain limited partnerships as corporations, taxing interest
currently being accrued on large annuity contracts, and restricting deductibility of losses associated with certain investments to
amounts that taxpayers have invested, or for which they are at
risk. Some of these provisions would also affect corporate tax
liabilities.
• Allowing State and local governments the option of issuing taxable bonds with a Federal interest subsidy in place of conventional tax-exempt bonds. The subsidy, which would be an outlay,
would be 35% in 1979 and 1980 and 40% thereafter.
The estimates also reflect proposed extension of the earned income
credit in its current form through calendar year 1981, at which time
this credit would be expanded as part of the administration's welfare
reform proposal.
Together, these and other reduction and reform proposals will
reduce individual income taxes in 1979 by $18.3 billion relative to
extension of temporary tax provisions.
Corporation income taxes.—Major reductions in corporation income
taxes will result from proposed rate reductions and liberalization of
the investment tax credit. The corporation income tax rate would be
reduced effective October 1, 1978, from 20% to 18% on the first
$25,000 of corporate income, from 22% to 20% on the second $25,000,
and from 48% to 45% on income above $50,000. Effective January 1,
1980, the maximum corporate rate would be reduced to 44%. The
investment tax credit, which currently applies only to equipment,
would be extended to utility and industrial structures and certain pollution abatement facilities (retroactively to January 1, 1978) and made
permanent at the current 10% rate. The credit would be allowed to
offset up to 90% of the tax liability otherwise owed. Currently, the
54
THE BUDGET FOR FISCAL YEAR 19 79
limit is 100% of the first $25,000 of tax liability and 50% of liability
above $25,000. The investment tax credit liberalization would also
affect individual income taxes on business income.
Partially offsetting the revenue losses from these provisions are
reform proposals that include:
• Reducing the tax benefits for Domestic International Sales
Corporations (DISC's) by one-third in calendar year 1979, twothirds in 1980, and 100% thereafter.
• Phasing out over 3 years the tax deferral for the income of foreign
subsidaries of U.S. corporations controlled by U.S. taxpayers.
• Reducing by 50% the otherwise allowable deduction for business
meals and disallowing business deductions for tickets to entertainment events, membership dues in clubs, and the excess of
first class air tickets over the cost of coach or second class tickets.
These proposals would also limit business deductions claimed
by individuals.
• Phasing in taxation of credit unions on a basis comparable to
savings and loan institutions and mutual savings banks, repealing
the special bad debt allowance for commercial banks, and reducing
it for thrift institutions.
Together these and other reform proposals will reduce corporation
income taxes in 1979 by $5.1 billion.
Energy tax proposals.—The President's national energy plan,
submitted to the Congress last spring, contains tax proposals that
would provide incentives to conserve energy and to convert energy
use away from oil and natural gas toward greater use of non-petroleumbased fuels. The major proposals are:
• A crude oil equalization tax on existing domestic production in
order to raise the price of petroleum products to their replacement value. Expected tax revenues would be refunded to individuals on a per capita basis, in the form either of tax refunds or
direct payments. The refund (or payment) per capita would be
about $15 in calendar year 1978, $30 in 1979, and $45 in 1980.
• An oil and natural gas consumption tax on certain industrial and
utility use to accelerate the conversion to facilities that use nonpetroleum fuels. Industrial firms and utilities would be able to
obtain refunds of the tax by making investments in equipment
that uses nonpetroleum fuels.
• An automoble fuel efficiency ("gas guzzler") tax to encourage
conservation. All revenues would be refunded as subsidies for the
purchase of fuel-efficient vehicles.
• Individual tax credits for insulating residences and installing
solar energy equipment.
BUDGET RECEIPTS
55
• Business tax credits to promote investment in more energyefficient equipment or modification of existing structures and
equipment, co-generation facilities, and coal conversion and
solar energy equipment.
The net effect on receipts of the administration's energy proposals is
a reduction of $0.1 billion in 1978 and increases of $1.1 billion and $2.9
billion in 1979 and 1980, respectively. The administration expects that
the Congress will enact energy legislation early in 1978. Changes from
the administration's proposals could significantly affect the estimates
of receipts.
Other receipt proposals.—A number of other tax proposals are
reflected in estimated receipts. Repeal of the tax on telephone services
is proposed, effective October 1, 1978. Under current law, this tax
would decline from 4% to 3% on January 1, 1979, and would continue
to phase out by 1 percentage point per year. This proposal reduces
receipts by $1.0 billion in both 1979 and 1980.
A reduction in the Federal unemployment insurance tax rate from
0.7% to 0.5% is proposed as of January 1, 1979. This tax finances the
administrative expenses of the Unemployment Insurance Service and
the Federal State Employment Service as well as the Federal share of
extended unemployment benefits paid when unemployment is high.
This proposal, which will reduce employer payroll costs, will reduce
receipts by $0.6 billion in 1979 and $0.9 billion in 1980.
The President has proposed that commercial users of inland waterways pay a substantial share of the costs of the facilities from which
they directly benefit. They now bear none of the costs of constructing
and maintaining the waterway system. User fees would start in 1980
and rise until 100% of the operating costs and 50% of new construction
costs were recovered.
Other proposals affecting budget receipts are: an excise tax on crude
oil to create a fund to pay damages and clean up costs of oil pollution;
a 2-percentage-point reduction in the 8% passenger ticket tax and the
5% tax on airfreight; payments by the Federal Reserve System of
interest on member bank deposits, which will reduce miscellaneous
receipts; and an increase in the charge for migratory bird hunting
stamps from $5 to $10.
The estimates assume that the 4-cents-per-gallon Federal gasoline
tax is extended beyond its current expiration date of September 30,
1979, and that the airport and airway taxes, as amended by administration proposals, are extended beyond their current expiration date
of June 30, 1980. Also included is the effect on receipts of an acceleration of State and local deposits of social security taxes, which can be
accomplished by administrative action; this action will increase
receipts in 1980 and subsequent years.
56
THE BUDGET FOR FISCAL YEAR 19 79
EFFECT OF TAX PROPOSALS ON RECEIPTS IN COMPARISON TO EXTENSION OF
TEMPORARY TAX PROVISIONS»
[In billions of dollars]
_
Income tax reductions and reforms:
Individual income taxes:
Reduced tax rates and $240 credit
_
Repeal of itemized deductions for certain State and local taxes
Combining medical and casualty deductions into "extraordinary expense"
deduction
Other
-22.5 -25.7
2.7
4.3
Subtotal—individual income taxes
Corporation income taxes:
Rate reductions
Liberalization of investment tax credit2
Reform of business deductions for meals and entertainment expenses 2___
Phase out of DISC
Other_.
Subtotal—corporation income taxes
Energy tax proposals:
Excise tax collections:
Crude oil equalization tax
Oil and natural gas consumption tax
Auto efficiency tax
Other
Refunds of excise tax collections.__
Tax credits for energy conservation and conversion
___
Subtotal—energy tax proposals
Other:
Repeal of telephone excise tax
_
Reduction in unemployment insurance payroll tax rate
Acceleration of State and local deposits of social security taxes 3
Other
_
Subtotal-other. ___
_
Total
_
1980
_
1.3
.1
2.1
1.1
—18. 3
—18.2
-4.0
—2.3
.7
.2
.2
-7.1
—2.3
1.5
.8
.6
—5.1
—6.5
7.2
.5
.5
*
—5.0
—2.2
11.9
1.7
.5
*
—8.3
—2.9
1• 1
2.9
—1.0
—• 6
-.3
—1.0
—. 9
1.1
- 7
-1.9
- M
-24.3
-23.3
—23.9
—6.4
—.6
6.8
-.2
—26.5
—8.6
.2
12.1
-.5
ADDENDUM
Effect of tax proposals on receipts by source:
Individual income taxes
Corporation income taxes
Social insurance taxes4
Excise taxes
Other
1 Excludes extension of the jobs tax credit. Unlike the other temporary provisions, the jobs tax
credit is a short-term countercyclical provision.
2
Thi
ii
l
li t i d i i d l
d
d
d i d l i
Thi
BUDGET RECEIPTS
57
CHANGES IN BUDGET RECEIPTS
Budget receipts are estimated to rise by $43.5 billion in 1978, $39.2
billion in 1979, and $65.8 billion in 1980. The year-to-year changes can
be divided between those due to growth in the tax base and those due
to revisions in the tax structure. Under the tax rates and structure in
effect on January 1, 1975, receipts would have risen by $46.8 billion in
1978, $51.6 billion in 1979, and $49.4 billion in 1980. Thus, the combined effect of enacted and proposed tax law changes, which is shown
in the table on the following page, reduces the growth in receipts by
$3.3 billion in 1978 and $12.4 billion in 1979. In 1980 these changes increase the growth in receipts by $16.4 billion.
Growth in receipts (in billions of dollars):
Administration budget proposals
Tax rates and structure in effect January 1, 1975
Difference
1978
__
1979
1980
43.5
46.8
39.2
51.6
65.8
49.4
-3.3
-12.4
16.4
58
THE BUDGET FOR FISCAL YEAR 1979
CHANGE IN BUDGET RECEIPTS
[In billions of dollars]
1977
Receipts under tax rates and structure in effect Jan. 1,
1975
Administrative actions:
Increase in sugar import duties
Reallocation of corporation deductions
foreign and domestic income
1978
1979
1980
371.8
418.6
470.2
519.6
.1
.2
.2
.2
.1
.3
.4
.4
.4
—1.8
-14.4
-2.6
2.8
-*
-13.2
-17.8
3.2
—*
-7.4
-13.7
3.4
2.4
.8
2.9
2.5
1.1
3.5
3.0
2.6
3.0
4.3
3.7
3.2
9.7
1.3
2.2
3.8
\.5
.1
3.2
.7
—1.9
.2
between
Enacted legislative changes:
Income taxes:
Tax Reduction Act of 1975
Revenue Adjustment Act of 1975
Tax Reform Act of 1976
Tax Reduction and Simplification Act of 1977
Social insurance taxes and contributions:
Social security taxable earnings base increases:1
$14,100 to $15,300 effective Jan. 1,1976
$15,300 to $16,500 effective Jan. 1,1977
$16,500 to $17,700 effective Jan. 1,1978
$17,700 to $22,900 effective Jan. 1,1979
$22,900 to $25,900 effective Jan. 1,1980
Social security tax rate increases:1
11.7% to 12.1% effective Jan. 1,1978
12.1% to 12.26% effective Jan. 1,1979
Social security employer tax on tips
Unemployment tax rate and base increases
Increase in SMI (medicare) premium
Reduction in telephone excise tax
Coal mine reclamation fees
Total, receipts under existing legislation
.
-8.0
-5.8
.3
.2
—.4
*
1.5
.3
—.9
.1
3.6
].\
.1
3.1
.5
—1.3
.2
356.9
400.7
472.2
539.6
—7.2
—1.1
—12.8
—2.6
4.5
—1.7
—.6
_1.8
—23.9
—6.4
—.6
6.8
-.2
—26.5
—8.6
.2
12.1
-.5
400.4
439.6
505.4
Extension of temporary provisions: 2
Individual income taxes
Corporation income taxes
Excisetaxes
Tax proposals in comparison to extension of temporary
provisions:
Individual income taxes
Corporation income taxes
Social insurance taxes 3
Excises
Other
Total, receipts under existing and proposed
legislation
356.9
BUDGET RECEIPTS
59
RECEIPTS BY SOURCE
Individual income taxes.—Individual income tax receipts are
estimated at $178.8 billion in 1978, $190.1 billion in 1979, and $223.9
billion in 1980. The following table shows the effect of proposed tax
law changes on these estimates in billions of dollars.
1978
1979
1980
Individual income taxes, current law
Extension of temporary provisions
180.5
__
221.2
—7.2
263.2
—12.8
Individual income taxes, current services
Reduction and reform proposals
Energy proposals:
Rebates of crude oil taxes 1
Other
Other
180.5
—.2
214.0
—18.3
250.4
—18.2
-1.3
-.1
-4. 7
-.9
*
-7.6
-.6
*
178.8
190.1
223.9
Individual income taxes, proposed
*$50 million or less.
Excludes payments to social security and welfare recipients, which are included in outlays,
1
Corporation income taxes.—Corporation income tax receipts are
estimated at $58.9 billion in 1978, $62.5 billion in 1979, and $69.1
billion in 1980. The following table shows the effect of proposed tax
law changes on these estimates in billions of dollars.
1978
1979
1980
59.5
70.0
—1.1
80.4
—2.6
Corporation income taxes, current services
Reduction and reform proposals
Energy proposals
Other
59.5
—.6
_._.
68.8
—5.1
—1.2
*
77.8
—6.5
—2.3
*
Corporation income taxes, proposed
58.9
62. 5
69.1
Corporation income taxes, current law
Extension of temporary provisions
_
* $50 million or less.
Social insurance taxes and contributions.—This category includes social security and railroad retirement taxes, unemployment
insurance taxes and deposits, Federal employee retirement contributions, and premium payments for supplementary medical insurance.
Receipts from this source are expected to be $124.1 billion in 1978,
$141.9 billion in 1979, and $160.1 billion in 1980. These figures reflect
increases in the social security tax rate and taxable earnings base that
are scheduled under current law. The 1980 estimate also includes $1.1
billion from an administrative action to accelerate State and local
deposits of social security taxes. These estimates also reflect the
60
THE BUDGET FOR FISCAL YEAR 1979
Unemployment Compensation Amendments of 1976, which increased
the Federal unemployment insurance tax rate (from 0.5% to 0.7%)
effective January 1,1977, and tax base (from $4,200 to $6,000) effective
January 1, 1978. Proposed legislation would repeal the rate increase
effective January 1, 1979. The estimates also anticipate higher State
deposits of unemployment taxes (which are included in budget
receipts) as States raise their rates to repay borrowings from the
Federal Government and replenish their balances in the unemployment trust fund.
Excise taxes.—Excise taxes are levied on a variety of products,
services, and activities. Receipts from these taxes are estimated at
$20.2 billion in 1978, $25.5 billion in 1979, and $31.1 billion in 1980.
Excise tax receipts in these years reflect the administration's energy
tax proposals, as described earlier. These proposals increase excise
tax receipts by $1.8 billion in 1978, $7.9 billion in 1979, and $13.4
billion in 1980. The excise tax estimates also reflect the proposed repeal of the telephone excise tax effective October 1,1978.
Other budget receipts.—Estate and gift taxes, customs, and
miscellaneous receipts (the largest of which are deposits of earnings
by the Federal Reserve System) are estimated to total $18.3 billion
in 1978, $19.7 billion in 1979 and $21.1 billion in 1980. The miscellaneous receipts estimates reflect proposed legislation discussed
earlier.
Proprietary receipts.—In addition to budget receipts, the Government receives significant proprietary income from the public. This
income is derived from various market-oriented activities—such as
interest, rents, royalties, and the sale of Government property,
products, and services. Since 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 shown in table 11 of Part 9.
PART 5
MEETING NATIONAL NEEDS:
THE FEDERAL
PROGRAM BY FUNCTION
61
260-000 O - 78 - 5
INTRODUCTION
National needs and the functional classification.—This section discusses the budget in terms of national needs, agency missions,
and major programs. National needs are defined in 16 broad areas—
termed budget functions—that provide a coherent and comprehensive
basis for analyzing and understanding the budget.
The budget resources devoted to meeting national needs are classified by budget functions; so that budget authority and outlays of
budget and off-budget Federal entities; loan guarantees; and tax
expenditures are grouped in terms of national needs being addressed.
To the maximum extent feasible, these groupings are made without
regard to agency or organizational distinctions. They are also the
categories used by the Congress in developing concurrent resolutions
on the budget.
In keeping with the requirement of the Congressional Budget Act
of 1974,1 the national needs presentation is supported by analysis
of agency missions and major programs. In general, the subfunction
totals that make up each major functional category represent the
resources devoted to agency missions. In a few instances, however, the
subfunction totals represent amounts for overhead or similar activities,
that cannot logically be attributed to a single mission category.
Because of the relationship between national needs and major functions, and between missions and subfunctions, the functional structure
was revised during the past year. The revisions are the product of a
detailed review carried out in close consultation with the Appropriations and Budget Committees of both Houses of the Congress. The
major changes are as follows:
• Energy has been established as a function separate from natural
resources and environment.
• Transportation has been established as a function separate from
commerce and housing credit
• Military assistance has been reclassified from the national defense
function to the international affairs function.
• The health subfunctions have been restructured to identify more
clearly the major missions in the health area.
• Several functional and subfunctional titles have been changed to
clarify the major needs or missions being served by these programs.
1
See Part 7 for a further discussion of this requirement.
62
MEETING NATIONAL NEEDS
63
All functional data presented in the budget have been adjusted so
that they are on a comparable basis for all years. In addition, comparable data on Federal outlays by subfunction for all years since
1962 and by major function for all years since 1940 are available upon
request from the Office of Management and Budget.
For purposes of the functional classification, each Federal activity
must be classified in the one function that defines its most important
purpose. This is necessary to avoid double counting and to assure
that the components of the budget will add up to the total. However,
many activities serve more than one national need or major mission.
Therefore, the subsections in this part of the budget contain subsidiary information that identifies, to the extent feasible, those
programs whose primary objective is to meet one category of national
needs but that also make substantial contributions toward meeting
other national needs.
Credit.—More information on Federal credit activities is presented
than has previously been the case. In each national needs section
with significant loan activity, there is a table showing the total
amounts of direct and guaranteed louns that meet a particular national
need. For direct loans the tables show both new loans and offsetting
payments, sales, and adjustments. The resulting figures on net
credit outlays represent the budget outlays for the direct loans
identified.
The tables also show new guaranteed loans and the net amount of
credit guaranteed. Unlike direct loans, guaranteed loans do not
result, in general, in budget outlays except in the case of default.
A further discussion of loans and loan guarantees may be found in
Parts 2 and 6 of the Budget and in Special Analysis F in the Special
Analyses volume of the budget.
Because loan guarantees have a relatively limited impact on budget
outlays, they have, in the past, tended to receive less scrutiny in
the executive and legislative branches than other Federal programs.
The administration is proposing procedures that would subject both
direct loans and loan guarantees to greater budget discipline. A
discussion of this proposal is included in Part 2.
Tax expenditures.—Tax expenditures are revenue losses under the
individual and corporation income tax laws that are attributable to
special exclusions, exemptions, or deductions from gross income or to
special credits, preferential rates of tax, or deferrals of tax liability.
Nearly all tax expenditure provisions are intended either to encourage
particular economic activities or to reduce the tax liabilities for taxpayers in special circumstances. They are, therefore, one means by
which the Federal Government pursues its objectives, and in most
64
THE BUDGET FOR FISCAL YEAR 1979
cases can be viewed as alternatives to other instruments of Government policy such as outlays, loan guarantees, regulations, and other
tax law provisions.
The most important tax expenditures are discussed in the national
needs sections that follow in order to compare them with the outlays
and loan guarantees that serve the same broad purpose. The 1979
estimates used in these discussions are consistent with the administration's tax reform proposals unless otherwise noted. In the past, some
of the largest tax expenditures have been classified into three special
categories—personal investment, business investment, and other tax
expenditures. This year, however, they have all been classified in the
budget functions into which they most closely fit. This is in accordance
with the practice followed by the Congressional Budget Office. It
further results in allocating all tax expenditures to national needs.
Tax expenditures are discussed further in Part 6 and in Special
Analysis G, "Tax Expenditures." The latter includes a listing and an
analysis of all tax expenditures, along with a discussion of the definition
and measurement of tax expenditures. Estimates are presented there
based on both current law and the administration's tax proposals.
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 off-budget 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, taxation affects the
allocation of resources among private uses and the distribution of
income among individuals in many important ways not covered by
tax expenditures. Federal taxes other than income taxes affect the
economy, as do tax rates, personal exemptions, and other features of
the income taxes that are not treated as tax expenditures.
The national needs sections that follow include information on
off-budget Federal entities, and discuss major issues regarding economic regulation. Off-budget Federal entities—along with privately owned,
Government-sponsored enterprises—are also discussed in Part 6 of
the Budget.
Structure of national needs sections.—Each of the sections
that follow has a similar structure. In general, the structure is as
follows:
• a statement of national needs;
• a listing of the major missions and the amount of outlays proposed for each mission in 1979;
• a brief summary of the major budget proposals and administration policies;
MEETING NATIONAL NEEDS
65
• a table that displays outlays by national need, agency mission,
and major program for the years 1977 through 1980, and
budget authority for 1979;
• a more detailed discussion of the budget proposals for each major
mission; and
• a table on credit programs, including both direct lending and loan
guarantees.
In addition, each section discusses, to the extent feasible, related
programs allocated to other major missions or national needs. The
level of detail of this discussion depends on the degree to which there
are substantial and important related programs, and is also affected
by the availability of supporting data. The discussion of related programs is included either as part of the discussion of mission categories
or for the section as a whole, whichever is more useful.
66
THE BUDGET FOR FISCAL YEAR
1979
NATIONAL DEFENSE
National Needs Statement:
• Protect America's people, its institutions, and its lands
from foreign aggression.
• Preserve an overall military balance between the United
States and its allies, and the Soviet Union and its allies,
that is at least as favorable as the present balance.
• Maintain essential equivalence in strategic nuclear deterrence with the Soviet Union, preserving the capability
to launch a retaliatory second strike that would inflict
unacceptable damage.
• Maintain sufficient power, together with our allies, to
defeat any aggressors swiftly, with full recovery of any
territory lost initially.
• Seek international agreements to limit and reduce all
armaments, to prevent proliferation of nuclear technology, to restrict arms trade, to settle disputes by
peaceful means, and to strengthen international stability.
To meet these national defense needs, the budget proposes $128.4
billion in budget authority for 1979. The major defense components
of this total are:
• strategic forces, $9.8 billion;
• general purpose forces and related, $55.3 billion;
• intelligence and communications, $8.3 billion;
• research and development, $11.0 billion;
• supporting activities in the Defense Department, $41.2 billion;
• atomic energy defense activities, $2.8 billion; and
• other defense-related activities of nondefense agencies, $43 million.
The following table lists major programs for the Department of
Defense in greater detail. Total outlays for national defense are
estimated at $117.8 billion for 1979, an increase of 9.4% over 1978.
To carry out the missions addressed to national defense needs, the
budget makes the following proposals:
• Maintain the current basic force structure and increase real
defense spending to offset Soviet force improvements.
• Continue to modernize the strategic forces in order to maintain
the effectiveness and credibility of the U.S. deterrent against
nuclear attack.
• Upgrade and improve conventional forces and general military
capabilities.
MEETING NATIONAL NEEDS
67
• Strengthen our ability, in conjunction with allied forces, to repel
any attack launched against NATO nations.
• Maintain supply levels for U.S. forces sufficient to sustain them
in combat at least as long as opposing forces can be sustained.
• Increase the firepower and mobility of the Army and Marine
infantry divisions to provide greater flexibility to respond to
threats outside the NATO area.
• Continue efforts to modernize naval forces through the construction of new ships and extensive overhaul of others.
• Identify and pursue efficiencies that reduce the costs of defense
without diminishing military capability.
Department
of Defense—Military.—National
defense needs are
met primarily by the military programs of the Department of Defense.
Total obligational authority for these military activities is projected
to rise from $108.3 billion in 1977 to $116.8 billion in 1978 and $126.0
billion in 1979. Outlays are estimated to increase by 9.4% between
1978 and 1979. The 1979 defense increases include allowances for
civilian and military pay raises of $2.4 billion.
NATIONAL NEED: DEFENSE, MILITARY
[In billions of dollars]
Budget authority
Major military programs
1977
actual
Prior-year funds and other financial adjustments
Total obligational authority
1
_
1979
estimate
9.4
9.3
9.8
38.6
46.8
1.5
5.9
9.8
10.9
22.6
2.1
.2
41.5
7.8
1.6
6.7
10.1
11.8
23.9
2.3
.3
_.
108.4
115.3
125.6
_.
-.1
+1.5
+.4
108.3
116.8
126.0
Strategic forces
General purpose forces
Intelligence and communications
Airlift and sealift
Guard and Reserve
Research and development1
Central supply and maintenance
Training, medical, and other general personnel activities
Administration and associated activities
Support of other nations
Total budget authority
1978
estimate
7.4
8.3
1.8
6.7
11.1
12.5
26.0
2.4
.3
Excludes R. & D. in other program areas on systems approved for production.
The combat and support capabilities of our military forces, compared to the capabilities of our potential opponents, determine
whether or not a military balance exists and whether our fighting
68
THE BUDGET FOR FISCAL YEAR 1979
power is sufficient to deter attack. Soviet defense spending has increased
by about 3 % per year in real terms. These increases have enabled the
Soviet Union to achieve nuclear parity with the United States and to
acquire conventional military power comparable to that of the United
States. However, in the present international environment, the most
important measure of relative military strength is the balance that
exists between the United States and its NATO allies, on the one hand,
and the Soviet Union and its Warsaw Pact allies on the other. The
defense efforts of the non-Soviet Warsaw Pact nations have shown little
growth in the past decade. At the same time, our NATO allies have
increased their defense efforts at an annual rate of 2 - 3 % in real terms.
Our military forces and our alliances will at all times be kept as
strong as is necessary to deter attack. Clearly, however, peace based
on a balance of terror is precarious. Therefore, the United States is
conducting negotiations with the Soviet Union and other nations on
a wide range of agreements to reduce military forces and weapons and
reliance upon force in international disputes. U.S. policy seeks to
reduce stocks of nuclear weapons and limit their spread, to ban all
nuclear weapons tests, and to control nuclear proliferation. We seek
further agreement with the Soviet Union on limitation of strategic
weapons. At the same time, we seek the cooperation of other weaponsproducing nations in reducing the sale of arms and slowing the spread
of advanced weapons technology throughout the world. I n negotiations with the Soviet Union we also seek agreements to prevent an
arms buildup in the Indian Ocean, to continue peaceful use of space,
and to prohibit chemical, biological, and radiological warfare.
DEPARTMENT OF DEFENSE-MILITARY
[Proposed total obligational authority; in billions of dollars]
January 1977 budget
January 1978 budget
1978
1979
1980
1981
1982
122.1
116.8
134.4
126.0
144.8
137.2
155.7
148.6
165.9
160.5
The defense levels proposed for 1979 provide prudent real growth
in our defense capabilities but are considerably more moderate than
those proposed last year at this time by the previous administration:
$8.4 billion lower in 1979 and $7.6 billion lower in 1980. Additional
real growth is made possible by savings proposed in training and in
overhead and support activities. Proposals in this budget would:
• reduce military personnel end strengths (that is, year-end headcount) from 2,069 thousand in 1978 to 2,049 thousand in 1979,
and civilian personnel end strengths from 912 thousand in 1978 to
905 thousand in 1979, largely by reducing headquarter staffs and
MEETING NATIONAL NEEDS
69
other support organizations; further reduce indirect-hire foreign
nationals;
• eliminate inequities and unnecessary differences between services
in officer promotions, separations and retirement, and achieve a
better match of the work force with job requirements;
• reduce the amount of time that military personnel spend in formal
training activities, and the overhead costs of training; and
• reform the mechanism for setting blue-collar pay rates.
Strategic forces.—The primary mission of the strategic forces is to
deter a nuclear attack on the United States, its allies, and other
nations whose survival is vital to our security. These forces must be
capable of damaging an aggressor so severely in a second-strike
retaliatory attack that no nuclear power would dare initiate a nuclear
attack on us. Our strategic forces also strengthen deterrence against
nonnuclear attack.
The Strategic mission is carried out by maintaining essential equivalence between United States and Soviet strategic capabilities. The
United States uses three separate types of strategic forces—landbased missiles, submarine-based missiles, and aircraft armed with
missiles and nuclear bombs—each possessing formidable capabilities.
These forces have differing survival and attack characteristics, thereby
presenting different challenges to an opponent attempting to counter
them. If one force should begin to become vulnerable, the others prevent any strategic instabilities from occurring while the vulnerability
is being remedied.
Major proposals for the strategic forces in this budget, including
portions funded in the research and development program, are:
• continue competitive development and procurement of airlaunched cruise missiles for deployment on B-52 bombers and
explore the possibility of using other aircraft as cruise missile
carriers;
• continue development of the M-X intercontinental ballistic
missile, which is to have improved accuracy and payload, and
could be deployed in a mode less vulnerable to attack;
• continue development and testing of the B-l bomber, though
with no plans for production, and initiate studies of future
strategic bomber requirements;
• procure the eighth Trident submarine and associated ballistic
missiles to continue updating the sea-based strategic forces;
• continue research and development on ballistic missile defense
systems as a hedge against possible future abrogation of the
antiballistic missile treaty;
• improve strategic command, control, and communications systems; and
70
THE BUDGET FOR FISCAL YEAR
1979
• conduct research and development to improve satellite surveillance, reduce satellite vulnerability, and develop an antisatellite
capability.
General purpose forces.—The mission of general purpose forces is to
deter or counter aggression at levels below strategic nuclear conflict.
Most of our general purpose forces are oriented toward the defense of
NATO. This includes most of our Army land forces and Air Force
tactical air forces. Some of our Naval and Marine forces are required
to keep the sea lanes open and insure security on the flanks of NATO
territory. This budget reflects the U.S. commitment, made in conjunction with our NATO allies, to improve NATO capabilities. Budget
authority requested for Army weapons and equipment increases 18%
from 1978 to 1979 in real terms. Budget authority requested for Air
Force procurement related to NATO also increases.
The U.S. defense effort supports and is supported by allies throughout the world. Our combined efforts are designed to maintain deterrence by assuring that existing forces are in a high state of readiness,
are prepared to respond rapidly and effectively to challenges, and are
well supplied.
Budget authority of $46.8 billion is estimated for 1979 for general
purpose forces, compared to $41.5 billion in 1978. This increase will
be used primarily to strengthen the capability of the general purpose
forces designated for the defense of NATO.
In an era of strategic nuclear equivalence, it is vital that NATO's
conventional forces be sufficiently strong to act as an effective deterrent
to attack by conventional forces. We and our allies are committed to
increasing conventional military capabilities in Europe. Active U.S.
forces available for a European conflict include 16 Army divisions, of
which the equivalent of 5% divisions are deployed in Europe, and 26
wings of Air Force tactical aircraft, of which 8 are deployed in Europe.
In 1979, $6.6 billion in budget authority is proposed to provide increased levels of modern Army equipment to enable U.S.-based divisions to deploy more rapidly and to sustain combat for longer periods.
This is an increase of $1.3 billion over 1978. Specific proposals include:
• initial production of the new XM-1 tank, which is superior in
mobility and armor to any tank currently in use in the world;
• purchase of better fire control systems and increased quantities
of more effective antiarmor munitions, in order to improve
artillery capabilities;
MEETING NATIONAL NEEDS
71
SUMMARY OF ACTIVE MILITARY PERSONNEL AND FORCES
[Yearend—i.e., as of September 30]
1977
actual
1978
estimate
1979
estimate
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. __
782
530
192
570
774
532
192
571
772
522
190
566
2,074
2,069
2,049
779
529
189
579
773
529
192
573
772
526
190
571
2,075
2,066
2,059
1,000
54
656
24
1,000
54
656
24
1,000
54
656
24
16
3
16
3
16
3
26
13
3
26
12
3
26
12
3
13
66
168
62
13
70
166
64
13
73
172
65
4
13
48
4
13
48
4
13
48
Strategic forces:
Intercontinental ballistic missiles:
Minuteman
Titan II
Polaris-Poseidon
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 strategic airlift squadrons
Troopships, cargo ships, and tankers.
72
THE BUDGET FOR FISCAL YEAR 1979
• initial production of the new Patriot air defense system, and
increased production of the Roland missile developed jointly
with the Germans and the French and compatible with NATO
air defense; and
• large increases in purchases of support equipment necessary to
maintain the overall combat effectiveness of Army units.
In addition, the budget proposes that the Army continue to increase
prepositioned stocks and equipment in Europe to enable U.S.-based
divisions to deploy there rapidly in a crisis. Present stocks are adequate
to support a little more than two additional divisions. Current plans
call for prepositioning in Europe enough equipment for five U.S.
divisions by 1983. The budget also proposes improving the combat
readiness of Army forces now stationed in Europe in 1979 by increases
in their ammunition stocks.
The Air Force portion of NATO-related forces will be strengthened
by further purchase of three new combat aircraft:
• the F-15, designed to be the the world's most effective air superiority fighter;
• the A-10, designed for antiarmor and close air support missions; and
• the F-16, a multipurpose, high-performance fighter that is being
coproduced by a consortium of our NATO allies.
In addition, the budget proposes continued production of the
AW ACS early warning and control aircraft, and modifications and
improvements to strengthen the capabilities of current deployed
tactical aircraft. The budget also provides for increased dispersal of
the Air Force's operating aircraft in Europe to reduce their vulnerability to surprise attack.
Naval forces have three major objectives: sea control, power projection, and peacetime presence. Sea control involves the establishment and maintenance of naval superiority in ocean areas to protect
sea lines of communication and transportation, and to deny use of
the oceans to the enemy. Power projection consists of the use of
naval aircraft and gunfire in support of land operations and the use
of amphibious forces in assaults on land areas. The peacetime presence
mission is fulfilled through the overseas deployment of naval forces
to deter hostilities, influence the outcome of crises, and provide a
tangible symbol of American commitment.
To help carry out these naval missions, $42 billion in shipbuilding
funds are projected for the period 1979-83. The Department of
Defense is currently studying the question of whether construction
of additional aircraft carriers, and if so, of what type, is necessary to
MEETING NATIONAL NEEDS
73
meet Navy mission requirements. Pending completion of this study
in the spring, the Department's 5-year shipbuilding plan defers
several major shipbuilding decisions to next year.
The 1979 shipbuilding plan provides for 14 general purpose force
ships, 12 of which are required primarily for sea control. These include
an attack submarine, eight frigates designed for convoy and other
escort duties, and three towed-array sonar ships to expand submarine
detection capabilities. The 1979 plan includes two auxiliary ships for
fleet support.
The budget also proposes modernization of Navy and Marine
tactical aviation forces through initial procurement of the F-18
fighter/attack aircraft and further procurement of the A-4M light
attack aircraft.
Airlift and sealift forces.—The mission of the strategic mobility
forces is to move U.S. troops and material rapidly wherever they may
be needed to counter threats against U.S. interests. Proposed 1979
budget authority of $1.8 billion will provide for the continued operation and improvement of these forces. Various aircraft programs are
proposed to improve the U.S. capability to move combat units and
supplies during the critical early stages of an overseas conflict.
Aircraft modifications are proposed to extend the usable service life
of the C-5A transport aircraft and to improve the long-haul capability
of the C-141 transport. Civil Reserve Air Fleet aircraft will be
modified to permit rapid conversion from passenger to cargo aircraft.
Initial procurement of the advanced tanker/cargo aircraft is proposed to provide tactical air forces and mobility forces with a unique,
long-range refueling capability.
Guard and reserve forces.—Guard and reserve forces provide a ready
pool of trained manpower available for rapid augmentation of regular
active forces in a national emergency. Their mission is to recruit,
train, and retain personnel and units that serve on a part time basis
in peacetime, but which can be rapidly and effectively employed
with the active forces when needed.
The budget proposes tailoring reserve forces more closely to the
highest priority missions; upgrading equipment; improving management; and increasing integration of guard and reserve units with
counterpart active duty units.
In order to strengthen recruitment and retention, the budget
proposes greater use of advertising, and increased use of full-time
recruiters. A review of reserve compensation to evaluate its effectiveness in meeting manning requirements and to identify measures to
improve further the ability of reserve forces to achieve their mission
will be completed this year.
74
THE BUDGET FOR FISCAL YEAR 19 79
Research and development.—The mission of defense research and
development (R. & D.) is to devise new weapon systems so that
potential enemies will continue to find themselves at a distinct technological disadvantage relative to the forces of the United States and
its allies. To accomplish this mission, defense R. & D. supports a wide
variety of activities ranging from basic research to construction of
full-scale preproduction hardware.
The budget proposes that budget authority for defense R. & D.
increase by 10% in 1979. Major R. & D. efforts proposed for 1979 are:
• Technology base.—Basic research funding is increased 7% in real
terms over the 1978 level.
• Strategic systems.—All three elements of the strategic triad—land,
sea, and air systems—will be improved. The budget proposes
continued development of the M-X intercontinental ballistic
missile, of strategic submarine systems, and a continued competitive program for air-launched cruise missiles.
• Tactical systems.—The budget stresses development of systems
to improve early combat capability for U.S. forces in the defense
of Western Europe. This includes the development of new tanks,
guns, ordnance, tactical aircraft, and air defense systems. Increases are also provided for naval forces, including submarine
warfare systems. R. & D. efforts conducted in cooperation with
NATO allies will receive increased emphasis.
• Other defense R. & D.—The budget provides for continued improvements in defense intelligence systems, worldwide communications systems, and test and evaluation capabilities. Defense support for the NASA space shuttle program will continue.
Training, medical, and other general personnel support activities.—The
mission of these support forces is to assure that the military services
attract, train, retain, and keep in good health adequate numbers of
personnel to enable military units to accomplish their missions.
Recruiting programs seek to attract the proper number and type of
personnel to fulfill military requirements.
Individual training and education involves the training of military
personnel in formal, technical, and professional education courses
conducted by the four military services. Its purpose is to provide
service members with job skills useful in military units. The budget
proposes changes to training programs that will reduce the amount of
time military personnel spend in formal training, and reduce costs.
The medical programs of the Department of Defense keep military
personnel in good physical condition and keep the military medical
system prepared to provide health care under wartime conditions.
MEETING NATIONAL NEEDS
75
In addition, the civilian health and medical program of the Uniformed
Services (CHAMPUS) provides comprehensive health care benefits
to authorized beneficiaries.
Civilian personnel provide continuity of administration and operations and afford essential managerial and technical capabilities for
support operations.
Personnel-related outlays are the single largest component of defense
spending. For several years there has been concern about the level,
adequacy and complexity of the current military compensation
system. In order to resolve these concerns, the President has established a Commission on Military Compensation, which is undertaking
a comprehensive review of military pay and benefits, including retired
pay, and will make recommendations on future military compensation
policies later this year.
Reductions in defense civilian employment over the 1977-79
period total 7,000, and are not as large or as rapid as previously
anticipated. This is due to delays in base realinements and further
contiacting out of support services. However, the budget does reflect
anticipated savings from legislation to reform the Federal wage
system. The proposal would reduce Defense payroll costs by $2.0
billion over the next 5 years by changing present laws governing
blue-collar pay rates that result in Federal workers being paid more
than their private sector counterparts.
Financing military retirement costs on an accrual basis.—Legislation
is proposed to finance military retirement costs on an accrual basis,
through a trust fund. This will clear up some major problems in
management and in the budgetary treatment of military retirement,
and will end most of the inconsistencies between military and civilian
retirement systems in the budget presentation. At the present time,
the defense budget shows the amount for payments to military retirees
($10.2 billion estimated for 1979). This amount has nothing to do
with current military forces or defense programs—it is exclusively a
payment for past services.
The military personnel serving today are earning future retirement
benefits. The value of these benefits is relevant in considering current
defense programs and their costs. This ultimate cost of military
retirement benefits earned amounts to more than $7 billion for 1979.
This large cost is not shown in the budget nor elsewhere in the accounting and financial system. The ultimate costs of active military personnel are thus significantly understated at all levels: in local and headquarters manpower cost analyses, in the budget, and in the materials
76
THE BUDGET FOR FISCAL YEAR 1979
presented to the Congress. To correct these conditions, the following
steps are proposed:
• First, provide by law for the determination of the annual retirement accrual amount and the unfunded liability by an actuarial body independent of the Department of Defense.
• Second, provide by law for a Military Retirement and Disability
trust fund from which payments to retirees would be made.
• Third, appropriate funds to cover accrued retirement costs in the
regular military personnel appropriations, so that the true current
cost of military manpower can be shown.
• Fourth, provide for appropriating additional amounts each year,
as long as necessary, until the unfunded liability for military retirement is eliminated.
• Fifth, reflect the accrual costs in the national defense function in
the budget, along with other current defense costs. Include payments to retirees in the income security function, in a fashion
similar to the budgetary treatment of other Federal retirement
systems.
The legislative proposal necessary to accomplish this change is
being transmitted to the Congress. Because the proposal involves
complex changes in many parts of the budget that are contingent upon
enactment of the legislation, the changes have not been reflected in the
budget schedules.
The budget reflects the proposed Defense Officer Personnel Management Act. This act would eliminate many inequalities and unnecessary differences in personnel management policies for promotion, separation, and retirement.
Legislation is recommended to increase the incentive pay of some
Navy enlisted personnel to compensate for their unique and arduous
duties at sea.
The budget also proposes to continue to reduce the number of senior
officers in the military services and reduce personnel reassignments,
thus reducing travel expenses.
Tax expenditures,—The provision of housing and meals for military
personnel, either in cash or in kind, is excluded from tax. Disabilityrelated military pensions received by current retirees are largely
excluded from taxable income. The total tax expenditure involved is
estimated to be approximately $1.3 billion in 1979.
National defense needs.—The accompanying table shows budget
authority and outlays for the three major national defense missions.
Because of the long leadtime associated with the development and
procurement of military weapons systems, outlays lag behind budget
authority.
MEETING NATIONAL NEEDS
77
NATIONAL DEFENSE
[Function code 050; in millions of dollars]1
Program
Department of Defense—Military:
Military personnel
Retired military personnel
Operation and maintenance
Procurement
Research, development, test and evaluation.
Military construction
Family housing
Revolving funds and other
Allowances: Civilian and military pay raises:
Existing law
Proposed legislation
Other legislation:
Retired military personnel
Other
Subtotal, Department of Defense—
Military
Atomic energy defense activities
Defense-related activities
Deductions for offsetting receipts
Total
Recommended
budget
authority
for 1979
27,211
10,149
37,376
31,928
12,468
2,677
1,576
—123
Outlays
1977
actual
1978
estimate
1979
1980
estimate estimate
26,832
9,211
33,494
21,552
10,714
1,919
1,455
26,866
10,122
36,454
24,208
11,861
1,976
1,436
123
-11
27,093
11,088
37,92/
28,162
13,083
2,200
1,533
-244
2,371
—136
2,353
-135
5,279
-356
23
46
23
46
7
33
25,715
8,216
30,587
18,178
9,795
1,914
1,358
-114
125,567
2,829
45
—2
95,650
1,936
105,300
2,308
115,200
2,536
125,800
2,793
-84
_*
20
-2
45
-2
2
-3
128,439
97,501 107,626
117,779 128,593
'"$500 thousand or less.
Atomic Energy Defense Activities.—The Department of Energy
is responsible for the mission of research, development, test, and
production of nuclear weapons, special nuclear materials, and nuclear
reactors for defense needs. Total outlays for this mission are estimated
to rise from $1.9 billion in 1977 to $2.3 billion in 1978 and to $2.5
billion in 1979.
Weapons research, development, test, and production.—Outlays of
$1,271 million in 1978 and $1,387 million in 1979 are recommended to
design, develop, test, and produce new nuclear weapons. Funding
increases are proposed for higher production levels for warheads for
Trident, Minuteman, and air-launched cruise missiles; artillery shells;
and nuclear weapons for other systems.
260-000 O - 78 - 6
78
THE BUDGET FOR FISCAL YEAR
1979
ATOMIC ENERGY DEFENSE ACTIVITIES
[In millions of dollars]
Program
Weapons research, development, test, and production
Weapons materials production and waste management
Naval reactor development
Other research programs
Total
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
estimate
1979
estimate
1980
estimate
1,519
1,437
1,096
1,271
1,387
904
291
197
454
239
147
603
252
182
700
262
187
2,829
1,936
2,308
2,536
780
265
229
2,793
Weapons materials production, and waste management.—Outlays of
$603 million in 1978 and $700 million in 1979 are estimated for production of special nuclear materials and for management and disposal
of the various forms of nuclear waste produced in the course of
weapons production and naval reactor operations. Under the budget
proposals, four production reactors will continue in operation. A fuel
reprocessing plant will be upgraded and outlays for construction of a
new facility to process naval reactor fuels will rise. Outlays will increase
for construction of the new waste isolation pilot plant in southeastern
New Mexico, which is designed to allow deep geologic disposal of
radioactive wastes.
Naval reactor development—Outlays of $252 million for 1978 and
$262 million for 1979 are estimated for research, development, and
prototype operation of nuclear reactors for naval submarines and
surface ships.
Other research programs.—Outlays of $182 million for 1978 and $187
million for 1979 are recommended for the following research and
development programs: inertial confinement nuclear fusion power,
nuclear materials safeguards, and nuclear intelligence and arms
control.
Defense-related activities—Outlays for these activities are estimated to rise from $20 million in 1978 to $45 million in 1979.
Stockpile of strategic and critical materials.—One defense-related
activity is the maintenance of a stockpile of strategic and critical
materials for defense and civilian needs during wartime. The budget
proposes sale of obsolete inventories and purchase of new, highpriority stocks for current defense requirements.
MEETING NATIONAL NEEDS
79
Selective Service.—The Selective Service System is charged with
maintaining the capability to meet defense manpower requirements
in a future national mobilization. A standby organization is maintained to plan and provide the nucleus for a reactivated draft.
Budget authority of $9.5 million is proposed for 1979, compared to
$6.6 million for 1978.
CREDIT PROGRAMS-NATIONAL DEFENSE
[In millions of dollars]
1977
actual
Direct loans:
New loans
Repayments, sales, and adjustments (—)
Net credit outlays
Guaranteed loans:
Newloans
Net credit guaranteed
1978
estimate
1979
estimate
—11
1
—11
2
—11
-11
—10
-9
2
3
—49
Military assistance, previously classified in this function, is now
included in international affairs.
80
THE BUDGET FOR FISCAL YEAR 1979
INTERNATIONAL AFFAIRS
National Needs Statement:
• Promote a stable international environment that will
reduce conflicts, encourage worldwide economic progress,
and bring greater respect for human rights.
• Reduce the problems associated with widespread poverty
by improving foreign aid programs to help poor people
in the developing world meet their basic human needs.
• Support the security and economic and political stability
of allies and friendly governments.
• Advance American foreign policy through diplomacy and
by improving communication between the Government
and the people of the United States and the governments and people of other nations.
• Improve the international economic system and promote
the efficient development of resources both at home and
abroad.
Many of the national needs in the international area are advanced
through diplomatic or other policies that have only a small budgetary
impact. Foreign assistance is largely a resource transfer issue and
therefore shows up as a significant budgetary item. The other missions
covering conduct of foreign affairs, improving international understanding and the economic system are much more heavily influenced
by factors outside of the budget.
To help achieve our national needs in foreign affairs, the Federal
Government will spend an estimated $7.7 billion (net of offsetting
receipts of $0.6 billion) in 1979 in support of the following major
missions:
• Foreign economic and financial assistance: $5.4 billion in outlays.
• Military assistance: $0.5 billion.
• Conduct of foreign affairs: $1.2 billion.
• Foreign information and exchange activities: $0.5 billion.
• International financial programs: $0.7 billion.
To help carry out these missions, special emphasis is given in the
budget to provide for:
• A sizeable increase in the budget authority for development
assistance, with particular emphasis on the world's poorest
nations.
• Strong U.S. support for multilateral assistance programs, especially the international financial institutions.
MEETING NATIONAL NEEDS
81
• The establishment of the International Communication Agency,
a part of the President's reorganization program, to improve our
foreign information and exchange activities.
• The phaseout, beginning in 1979, of the deferral of tax on the
profits of domestic international sales corporations (DISCs).
• Funding to permit the United States to participate in a new supplementary financing facility of the International Monetary Fund.
The major missions are supported by the programs shown in the
table on the following page.
Foreign economic and financial assistance.—A major mission
is to address both economic and humanitarian objectives abroad with
foreign economic and financial assistance. Concessional development
aid programs will concentrate on the poor people of those countries
with annual per capita income below $550 measured in 1976 dollars.
Assistance will also be provided selectively to help poor people in
countries above this income level.
The mission of these programs reflects the desire of the administration, shared by the Congress, that the poorest people benefit from
efforts to promote economic growth. The administration also recognizes that the vast majority of the world's poor, some 900 million
people, live in the low-per-capita-income countries. These nations are
unable to devote substantial resources to improving the lives of the
poor and, thus, must receive priority for U.S. development funds.
The administration is firmly committed to increasing economic aid
levels substantially over the next 5 years and to improving aid effectiveness. Proposed budget authority for this mission will grow by 23%
in 1979. Proposed budget authority for the major development aid
programs (multilateral development aid, the Agency for International
Development (AID), and food assistance) will increase by 43%, but
will be partially offset by a proposed 16% decline in security supporting assistance. Outlays for foreign economic and financial assistance
are estimated to rise from $5.3 billion in 1978 to $5.4 billion in 1979.
Multilateral development assistance.—These programs consist primarily of payments to international financial institutions such as the
World Bank group and the regional banks to increase the capital on
which they base their lending. In addition to providing concessional
aid to the poorer countries, each bank provides loans at market-related
interest rates, primarily to middle-income developing countries.
Multilateral assistance also includes voluntary contributions to the
United Nations and other international organizations to finance their
grants, primarily for technical assistance to developing countries and
for disaster relief.
82
THE BUDGET FOR FISCAL YEAR 1979
NATIONAL NEED: CONDUCTING INTERNATIONAL RELATIONS
[Functional code 150; in millions of dollars]
Major missions and programs
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
1979
estimate estimate
1980
estimate
Foreign economic and financial assistance:
Multilateral development assistance:
International financial institutions
International organizations. _
International Fund for Agricultural Development
_ __ _ _
Agency for International Development
Food for Peace
Security supporting assistance (AID)
Other foreign economic and financial assistance
Subtotal, foreign economic and financial
assistance
3,505
282
875
250
838
233
909
270
973
262
10
20
50
1,293
1,069
1,666
1,464
1,189
1,800
806
976
850
1,854
1,062
1,160
1,068
1,813
237
201
175
180
200
5,938
1,651
8,335
4,214
5,296
5,407
134
32
672
-297
209
25
570
-311
190
29
540
-302
200 180
31
32
530 480
- 2 9 6 —296
541
494
457
465
Offsetting foreign aid receipts
(-617)
(-480)
(-562)
(-617)
Total, foreign aid
(8,259)
(4,228)
(5,191)
(5,254) (5,700)
Conduct of foreign affairs:
Administration of foreign affairs
International organizations and conferencesOther
_-
792
413
35
587
368
26
674
408
32
Subtotal, conduct of foreign affairs
1,240
981
1,115
500
386
443
660
340
3,100 - 1 , 1 5 9
-20
196
-200
-20
Military assistance:
Grant military assistance
Foreign military training
Foreign military credit sales
Offsetting receipts and other...
Subtotal, military assistance
Foreign information and exchange activities...
766
409
35
396
(-634)
852
444
35
1,211 1,331
480
516
International financial programs:
Export-Import Bank!
Military sales trust fund (net)
Other offsetting receipts.
Subtotal, international financial programs
404 637
300 300
- 2 0 —35
3,740
-819
-24
684
Deductions for offsetting receipts
-555
-425
-540
-555
Total, international affairs
13,801
4,831
6,747
7,691 8,528
902
-555
MEETING NATIONAL NEEDS
83
In the 1979 budget, $3.5 billion in budget authority is proposed for
the development banks, $1.6 billion above the 1978 level. Nearly onefourth of the proposed 1979 total represents subscriptions that the
United States pledged to provide in previous years, but which have not
yet been appropriated.
The administration places a high priority on supporting these international financial institutions because they have been successful in
carrying out programs to promote development and meet basic human
needs. They offer excellent examples of fruitful cooperation between
industrialized donor countries and the developing world. The World
Bank group has become the largest single source of official concessional and nonconcessional lending, and offers professional advice to
recipients on the policies most likely to support long-term growth.
The regional banks foster close cooperation among their member
countries and seek to identify and fulfill special regional needs.
Budget authority of $282 million in 1979 is proposed for voluntary
contributions to 19 international organizations and programs. These
programs provide developmental and humanitarian assistance to
developing countries. The United States and various U.N. institutions
are consulting on ways to improve these programs. A $133 million
contribution is proposed for the United Nations Development Program, which is the primary multilateral source of technical assistance
for developing countries. The request also includes significant increases
in contributions to the United Nations Children's Fund, the United
Nations Relief and Works Agency for Palestine Refugees, and several
small development-oriented programs. An increased contribution to
the nuclear safeguards program of the International Atomic Energy
Agency is requested in support of the President's nuclear non-proliferation objectives. An initial contribution to the United Nations University in Tokyo is also requested. Outlays for voluntary contributions
to international organizations and programs are estimated to increase
from $233 million in 1978 to $270 million in 1979.
AID programs.—These programs, which include the special Sahel
development program, reflect the administration's strategy of helping
developing nations meet the basic human needs of their poor through
programs designed to produce growth with equity. AID projects,
which implement the new directions mandated by the Congress,
directly address world problems of hunger and malnutrition, population pressure, disease and ignorance. Over 90% of AID projects are
concentrated in these areas. They also promote the administration's
human rights initiatives.
84
THE BUDGET FOR FISCAL YEAR
1979
New organizational arrangements are being made and others are
under study to enhance the Agency's capacity to conduct an expanded
basic human needs program. Budget authority for the AID development assistance program is $1.3 billion in 1978 and is proposed at $1.7
billion in 1979 with outlays estimated to rise more gradually from
$1.2 billion in 1978 to $1.3 billion in 1979.
Food for Peace (Public Law 480).—The Food for Peace program
serves a wider range of foreign policy objectives than AID's development assistance. It supports U.S. security assistance objectives in the
Middle East and constitutes the major U.S. program for humanitarian relief. While continuing to address these objectives, the food aid
program will place greater emphasis in the future on developmental
goals. The 1979 estimate of $1.1 billion in outlays would permit
shipments of approximately 6.7 million tons of food, the same level as
in 1978, and about two-thirds of the worldwide food aid target set
by the United Nations for all donors. U.S. capability to provide
food aid where it is needed most will be substantially increased with
the establishment of the proposed international emergency wheat
reserve which can be drawn on in periods of shortage.
Security supporting assistance.—This program is administered by
AID, and provides economic aid to selected countries of importance
to the United States. It helps them to meet their budget, development, and balance of payments financing needs. Most of these funds
go to countries in the Middle East in support of United States efforts
to promote peace in that area. Budget authority of $2.2 billion is
proposed for 1978 and $1.9 billion for 1979. A $300 million balance of
payments loan provided to Portugal in 1978 will not recur in 1979.
Outlays are estimated to fall from $1.8 billion in 1978 to $1.7 billion
in 1979.
Other foreign economic and financial assistance.—The Peace Corps,
part of ACTION, is redirecting its efforts toward development assistance to meet basic human needs in low-income countries. The 1979
level of Peace Corps activity (about 6,130 volunteer years in about
65 countries) is approximately the same volunteer service level as in
1978. Additional training of volunteers in applying appropriate
technologies will be needed. To carry out this purpose the Peace
Corps will begin a program to upgrade the quality of its training in
1978. Outlays for the Peace Corps are expected to increase from $87
million in 1978 to $93 million in 1979, reflecting increased volunteer
training costs.
Other programs that provide foreign economic financial assistance
include the Inter-American Foundation, the Overseas Private Invest-
MEETING NATIONAL NEEDS
85
ment Corporation, international narcotics control assistance, the
Darien Gap highway program in Panama, and refugee and migration assistance, which includes proposed funding to resettle Soviet
and other refugees in the United States.
Military assistance.—The military assistance mission is to provide
defense materiel and services to allies and other friendly governments
for their internal security and self-defense, and to support participation
in regional or collective security arrangements. This assistance is
provided in the form of military assistance grants, foreign military
sales credits, and grants for military training.
The program is shifting emphasis from grant military assistance to
foreign military sales credits as the improving economic situation of
some recipient countries enables them to assume a greater share of
their defense burden. The proposed budget authority of $134 million
in grant military assistance does not include funds for Greece and
Turkey. Upon final approval of the defense cooperation agreements
with Greece and Turkey, additional grant military assistance funds
will be requested by the administration.
The proposed foreign military credit sales program of $2.1 billion
requires $672 million in new budget authority. Of this amount, $518
million is for direct credits. The remainder is used to provide a 10%
reserve for loans guaranteed by the Department of Defense, but made
by the Federal Financing Bank. Since the Bank is an off-budget
Federal entity (see Part 6 of the Budget), only 10% reserve on the
guarantees is included as budget authority, not the direct loans by the
Federal Financing Bank.
Budget authority of $32 million is requested for International
Military Education, and Training in 1979. The budget authority
requested is increased from the $30 million 1978 level because of
cost increases in professional military courses.
Conduct of foreign affairs.—The mission of advancing the
foreign affairs interests of the United States throughout the world is
largely centered in the Department of State and in 132 embassies and
119 consulates abroad. Political, economic, social, and scientific
developments are reported and analyzed as the basis for policymaking.
Assistance is also provided to American citizens traveling or residing
abroad, and visas are issued to foreign nationals visiting or emigrating
to the United States. The State Department also provides administrative support for most of the activities of other U.S. agencies operating
overseas. Also included in this mission is the Arms Control and Disarmament Agency, whose outlays will increase to $16 million, largely
because of the strategic arms limitation talks and other arms control
negotiations.
86
THE BUDGET FOR FISCAL YEAR
1979
Outlays for the administration of foreign affairs, at home and
abroad, are estimated to rise from $674 million in 1978 to $766 million
in 1979 primarily because of increased operating costs abroad.
Through membership in international organizations, the United
States participates in solving many multinational political, economic,
social, and peacekeeping problems. In addition to the voluntary
contributions to international organizations discussed above, contributions for the support of the United Nations and 46 other international
organizations are assessed annually against member governments.
These assessed contributions are estimated to remain constant in
1978 and 1979 at $385 million. There are included $37 million of
appropriations in 1978 to pay arrearages owed to the United Nations
Educational, Scientific, and Cultural Organization. In 1979 the
United States proposes to support only those increases in international
organizations' budgets needed to maintain the prior year's level of
operations. The United States will encourage all organizations to
meet new and expanded needs from reductions in low-priority or
obsolete activities.
Foreign information and exchange activities.—An important
means of promoting a stable international environment is to improve
communication between the people and Government of the United
States and the peoples and governments of other nations through
educational, cultural, and informational exchanges and activities.
The creation of the International Communication Agency is a major
new initiative toward accomplishing this mission. The consolidation
of the activities of the United States Information Agency and the
State Department's Bureau of Educational and Cultural Affairs
should help increase understanding by American and foreign leadership groups of each others' society and governmental policies. The
new agency will also provide the President and his foreign policy
advisers with assessments of foreign public opinion and the impact of
proposed U.S. actions on that opinion.
Outlays for the new agency are estimated to be $365 million in 1978
and $393 million in 1979. The proposed increase will cover the increased costs of operating overseas, some increase in activities in less
developed countries and Eastern Europe, and a significant increase in
transmitter power for the Voice of America.
Estimated outlays for the Board for International Broadcasting of
$73 million in 1978 and $79 million in 1979 will enable Radio Free
Europe/Radio Liberty to continue broadcasts to Eastern Europe and
the Soviet Union.
MEETING NATIONAL NEEDS
87
International financial programs.—The mission of the international financial programs is to advance U.S. interests by improving
the functioning of the international financial system. Since World
War II, the international financial system has been strengthened
by closer cooperation among governments and by growth in the international scope of private financial institutions. Nonetheless, problem
areas and gaps remain, requiring government action to facilitate
U.S. exports and to provide additional balance of payments financing
to the International Monetary Fund, and calling for government involvement in military sales abroad.
Export-Import Bank.—The Export-Import Bank provides direct
loans, refinancing of export credits, and loan guarantees and insurance
in order to facilitate the export of U.S. goods and services. These
programs support exports by :
• assuming commercial and political risks that exporters or private
financial institutions are unwilling or unable to undertake;
• overcoming limitations in private sector U.S. export financing;
• assisting U.S. exporters to meet foreign officially supported export
credit competition; and
• providing leadership and guidance in export financing.
By concentrating its resources on overcoming limitations in the
private market and meeting foreign competition, the Bank contributes
to the improved functioning of the international economic system and
helps promote the efficient development of resources both at home and
abroad.
The Export-Import Bank's programs are generally intended to
supplement private credit markets. Terms and conditions on use of
its facilities are set to permit the Bank to remain self-sustaining,
while lending at rates more favorable than those available in the
private sector in order to counteract the special terms foreign governments provide to support their exporters. By meeting foreign competition on a selective basis, the Bank is able to minimize the preemption of private credit by Federal programs while focusing its credit
on areas of greatest need. The Bank's direct loans are estimated to
increase sharply by $2.2 billion between 1977 and 1978 and by
another $800 million in 1979 because of:
• a more active policy of meeting foreign official competition;
• increased creditworthiness of important developing countries; and
• some tightening of liquidity in the private sector.
The Export-Import Bank's guarantee and insurance authorizations
are expected to increase by $1.8 billion in 1978 and $1.7 billion in
1979, for these same reasons.
88
THE BUDGET FOR FISCAL YEAR 1979
EXPORT-IMPORT BANK AUTHORIZATIONS
[In millions of dollars]
1976
Direct loan commitments
Discount loan commitments
Guarantees and insurance commitments
Total
Net Outlays
1977
1978
1979
stimate
2,203
935
5,043
747
473
4, 379
2,913
500
6,145
3,750
500
7, 846
8,182
856
5,600
340
9,558
196
12,096
404
Supplementary Financing Facility of the International Monetary Fund
(IMF).—The purpose of the Supplementary Financing Facility is to
augment the ability of the IMF to assist member countries with
balance of payments problems. The fund provides financial resources
on a conditional and temporary basis, thereby allowing countries
time to make required policy changes without resorting to abrupt and
harmful restrictions on trade and payments. The size of payments
deficits, which has resulted from the increases in the international price
of oil and the worldwide recession, has greatly increased the potential
need for IMF financing relative to currently available resources.
Major industrial and oil-exporting countries have agreed to make
available 8,705 million Special Drawing Rights (approximately $10.5
billion) to the Supplementary Financing Facility in order to provide
a prompt and substantial temporary increase in the Fund's resources.
Meanwhile customary and more time-consuming negotiations for a
periodic quota increase are being undertaken. The U.S. share is 1,450
million Special Drawing Rights (approximately $1.75 billion). Any
amounts transferred to the IMF correspondingly increase the U.S.
reserve position in the IMF and can be drawn on in case of U.S.
balance of payments need. In essence, the transaction involves a
switch of U.S. Treasury assets from dollars to international monetary
reserves; thus, the $1.75 billion is not a budgetary figure. However,
since the transaction is denominated in Special Drawing Rights, the
United States could experience a gain on these assets if the dollar were
to depreciate against the Special Drawing Right, or a loss if the dollar
were to appreciate. Therefore, the the administration is requesting
1978 budget authority of $200 million to cover the contingency of an
exchange loss. No outlays will result from this budget authority unless
the United States incurs net exchange losses.
Foreign military sales trust fund.—U.S. law requires that sales
of certain types of military equipment and services may be undertaken only by the Federal Government. The trust fund is the vehicle
through which such sales of U.S. military equipment and services to
MEETING NATIONAL NEEDS
89
foreign governments are made. Orders placed by foreign governments
through the trust fund can be combined with orders by U.S. military
departments, thereby lowering the costs for both the United States
and foreign governments through larger volume procurement and
shared research and development expenses. In 1979, the fund is
expected to have a net budget authority of $3.1 billion and net
outlays of $0.3 billion. The net budget impact of this fund in any
year is very difficult to predict, however, because it is influenced by
the timing of decisions of other governments. Therefore, actual
outlays may deviate from these estimates.
Tax expenditures.—The major tax expenditure item in the foreign
affairs function is the deferral of tax on the profits of domestic international sales corporations (DISCs). This provision was introduced
in 1971 in an attempt to encourage exports. Changes in the international economic environment since then, primarily the introduction of
flexible exchange rates, have reduced the need for the DISC provision.
There is no clear evidence that any substantial portion of the expansion
of exports since 1971 can be attributed to DISC. Under the President's
tax reform proposals, DISCs would be phased out over 3 years
beginning in calendar year 1979. Under current law the tax expenditures for DISC would be $1.3 billion in 1979.
The tax reform proposal would also phase out the provision for
deferral of tax on the earnings of foreign corporations controlled by
U.S. taxpayers over the same 3-year period. Under current law the
income of such corporations is not subject to tax until it is repatriated
to U.S. owners, thus tending to encourage investment in foreign
countries with corporate tax rates below those of the United States.
A tax expenditure of $665 million for 1979 is estimated on the basis
of current law. Elimination of the provision would tax income from
such investment, as compared with domestic investment, in a more
nearly neutral fashion.
International affairs-related programs.—A number of Federal
programs are related to international affairs although their primary
purpose is to meet other national needs and serve other major missions.
Almost every department of the U.S. Government has a bureau or
office that focuses on international affairs. The most important program that is related to international affairs is the Commodity Credit
Corporation (CCC), which provides credit at favorable interest rates
for up to 3 years for agricultural exports. Outlays for CCC export
credits are estimated to be $1.5 billion in 1979. Other major programs
not classified as international, but which have international aspects,
are the National Security Council, the Office of the Special Trade
Representative, and the international research programs in the
National Institutes of Health.
90
THE BUDGET FOR FISCAL YEAR
CREDIT PROGRAMS-INTERNATIONAL
1979
AFFAIRS
[In millions of dollars]
Program
1977
actual
Security assistance:
Direct loans:
New loans
Repayments, sales, and adjustments (—) l
1978
estimate
1979
estimate
541
—264
1,084
—268
1,091
—259
277
816
832
1,383
1,249
1,584
1,452
1,585
1,445
404
—276
385
—270
352
—296
Net credit outlays
128
115
56
Guaranteed loans:
New loans
Net credit guaranteed
883
842
993
948
1,563
1,515
738
—151
728
—106
863
—125
587
622
738
1,787
-1,341
1,627
-1,292
1,788
-1,207
446
335
581
4,379
397
6,145
1,564
7,846
2,579
1
—35
1
— 128
1
— 133
-34
-128
Net credit outlays
Guaranteed loans:
New loans
Net credit guaranteed
_._
Economic development credit:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
._
Food for peace:
Direct loans:
New loans
Repayments, sales, and adjustments ( — )
Net credit outlays
Export-Import Bank:
Direct loans:
New loans
Repayments, sales, and adjustments ( — ) l
Net credit outlays.
_
Guaranteed loans:
New loans.
Net credit guaranteed
Other assistance:
Direct loans:
New loans..
_
_
_
Repayments, sales, and adjustments (—)
Net credit outlays.._
1
Includes sale of loan assets.
—
-132
MEETING NATIONAL NEEDS
91
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
National Needs
Statement:
• Expand scientific knowledge through support of basic
research in all fields of science.
• Develop a greater understanding of the Earth, the solar
system, and the universe through space research and
exploration.
• Develop and demonstrate more practical, economic, and
productive applications of space technology.
The missions and programs that meet these national needs represent
only a part of the Federal Government's funding for research and
development, including basic research. Most Federal funding for
research and development is included in other functional categories
of the budget because it addresses specific national needs in such
areas as national defense, energy, health, agriculture, and environment. Special Analysis P, "Research and Development/' in the
Special Analyses volume of the budget, discusses the full range of
Federal research and development programs.
To help meet national needs in general science, space, and technology, the Federal Government will spend an estimated $5.1 billion in
supporting the following major missions in 1979:
• General science and basic research: $1.3 billion.
• Space flight: $2.3 billion.
• Space science, applications, and technology: $1.2 billion.
• Supporting space activities: $0.4 billion.
To carry out these missions, special emphasis is given in this budget
to:
• Increased funding for basic research as part of a Governmentwide effort to continue real growth in the overall level of Federal
support for such research.
• Continued development of the space shuttle system and procurement of four shuttle orbiters for operations from both east and
west coasts.
• Development of a satellite system for measuring energy radiation
to and from Earth, as part of the administration's climate
research initiative.
• Development of a spacecraft to study the polar regions of the Sun
for the first time.
The major missions in this function are supported by the
programs shown in the following table.
92
THE BUDGET FOR FISCAL YEAR
1979
NATIONAL NEED: INCREASING BASIC SCIENTIFIC KNOWLEDGE AND USE OF
SPACE
[Functional code 250; in millions of dollars]
Recommended
budget
authority
for 1979
Major missions and programs
Outlays
1977
actual
1978
estimate
1979
estimate
1980
estimate
General science and basic research:
National Science Foundation programs.
Department of Energy general science
programs
Smithsonian scientific information exchange activities
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
939
753
825
857
959
426
324
363
415
425
2
2
2
1,368
1,078
1,190
1.274
1,387
2,247
2,252
2,192
2,264
2,240
1,210
393
1,006
343
1,018
358
1,150
390
1,285
424
3,850
3,601
3,568
3,804
3,949
—2
—2
—2
—2
—2
5,216
4,677
4,757
2
5,077
-
?
5,334
BASIC SCIENCE
General science and basic research.—The 1979 budget recommends continued real growth in the overall level of Federal funding
for basic research and an emphasis throughout the budget on research
related to critical national problems. Total obligations for the conduct
of basic research across all Federal programs, including basic research
funded in other functional categories, are estimated at over $3.6
billion in 1979. This represents an increase of $359 million, 10.9% over
the 1978 dollar level and about 5% above expected inflation.
Through basic research the Nation seeks to enhance its fundamental
knowledge about natural phenomena to provide the foundation for
applied research directed toward practical applications. The administration believes that the continued advancement of basic knowledge in
all fields of science is essential to the continued growth of the economy
and to the understanding and ultimate solution of problems in many
93
MEETING NATIONAL NEEDS
Total Federal Obligations (or Basic Research
~3
• Current Dollars
areas of national concern, such as health, energy, environment, and
national defense.
The Federal Government supports about two-thirds of the Nation's
basic research. The private sector underinvests in such research
because of the long-term nature and uncertainty of payoffs, and
therefore, increased Federal support, as provided in the 1979 budget,
meets an essential national need. The administration believes, however, that private investment in basic research is critical to the overall
national effort and that industry also should seek to strengthen its
level of support.
The allocation of funds provided in the 1979 budget for basic
research was made by the administration following a review of the
objectives of all agencies and departments with major research and
development programs. This review focused not only on the need to
maintain a vigorous national research effort in all areas of scientific
inquiry but also on the need for accelerated basic research in areas of
acute public concern and government responsibility.
The key programs that directly support the mission of general
science and basic research are those of the National Science Foundation and the Department of Energy. Outlays for this mission are
estimated to total $1.3 billion in 1979.
260-000 O - 78 - 7
94
THE BUDGET FOR FISCAL YEAR 1979
National Science Foundation programs.—The budget recommends an
increase in outlays for the National Science Foundation (NSF) from
$825 million in 1978 to $857 million in 1979. Proposed obligations
will, however, show a much greater increase: from $870 million in
1978 to $947 million in 1979, or nearly 9%.
The Foundation supports basic research because funding of such
research by other Federal agencies in pursuit of their specific program
objectives is not sufficient to advance science across all disciplines.
The Foundation also funds programs in applied research in selected
areas of national need and in science education at all levels.
In 1979, the Foundation proposes to emphasize basic studies
related to long-term national problems, such as substitute materials
for rare metals and the causes of variations in the climate (particularly
as they relate to the carbon dioxide cycle). Higher levels are generally
requested for science applications programs in 1979, following the 1978
reorientation of these programs. The program of earthquake-related
basic and applied research and engineering will be accelerated.
Department
of Energy
general science programs.—An
increase
in outlays from $363 million in 1978 to $415 million is recommended
in 1979 for research by the Department of Energy in high-energy
physics, nuclear physics, and in the biomedical and life sciences.
The high-energy physics program supports studies of the fundamental properties and structure of energy and matter to obtain new
scientific knowledge about the underlying forces of nature. Highenergy physics research depends primarily upon the utilization of
large national accelerator facilities. These facilities accelerate elementary particles, such as protons or electrons, and scatter them from
target nuclei; observing these scattering processes is the key to this
research. The energy saver project at Fermi National Accelerator
Laboratory has moved from the research and development stage and
is proposed as a construction project in 1979. This accelerator will be
the most powerful fixed-target accelerator in existence. In addition,
the intersecting storage accelerator project (ISABELLE), initiated in
1978, is to continue toward projected initial operation in 1986. This
facility will be the highest energy colliding beam accelerator in the
world and will make possible new experiments to investigate recent
theories dealing with fundamental forces.
The nuclear physics program is concerned with experimental and
theoretical studies of the properties and dynamics of atomic nuclei
and the characterization of the forces that govern their interaction.
These investigations are also largely carried out in national accelerator
facilities. Construction of a high intensity uranium beam project at
Lawrence Berkeley Laboratory will begin in 1979, and is scheduled
for completion in 1981. This project will increase the ability of scientists to work with heavy atomic nuclei such as uranium.
MEETING NATIONAL NEEDS
95
The life sciences and biomedical research program seeks better
understanding of how physical and chemical agents interact with life
processes in ecological systems and in human and animal populations.
In addition, research is conducted to develop medical uses of
nuclear technology, such as the use of stable and radioactive isotopes
for disease detection.
Tax expenditures.—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 rather than
capitalized and amortized over future years. The resulting tax expenditure is estimated at $1.5 billion in 1979.
Related programs.—As noted above, most of the Federal Government's basic research funds are allocated to other budget functions,
since they directly support other specific national needs or missions.
The following table lists obligations by agency for total Federal support for the conduct of basic research. I t excludes funds for major
facilities, such as those discussed above under Department of Energy
general science programs. More detailed information is provided in
Special Analysis P, "Research and Development."
FEDERAL OBLIGATIONS FOR THE CONDUCT OF BASIC RESEARCH
[In millions of dollars]
Basic research
Functional code and agency
1977
actual
Programs in general science, space, and technology function:
250 National Science Foundation
250 Energy
250 National Aeronautics and Space Administration
Subtotal
Programs classified in other functions:
550 Health, Education, and Welfare
270 Energy
_
050 Defense
350 Agriculture
300 Interior
500 Smithsonian
370 Commerce
300 Environmental Protection Agency
999 Other agencies
Subtotal
Total
._..
1978
estimate
1979
estimate
625
260
414
688
283
468
755
292
520
1,299
1,439
1,567
753
129
294
201
129
31
23
20
21
863
150
321
245
158
31
27
20
35
992
176
364
262
164
33
31
28
31
1,601
1,850
2,081
2,900
3,288
3,647
96
THE BUDGET FOR FISCAL YEAR 1979
SPACE RESEARCH AND TECHNOLOGY
The missions of space research and technology have in recent years
been focused heavily on the development of new space capabilities,
most importantly the space shuttle. This administration intends to
give increased emphasis to the use of existing capabilities for scientific
and practical applications, in contrast to the development of major
new capabilities beyond the shuttle, such as a large manned space
station. The total outlays for these missions are expected to increase
from $3.6 billion in 1978 to $3.8 billion in 1979. The 1979 budget maintains the current momentum in the shuttle development program,
makes provision for early transition to the operational shuttle system,
and recommends new initiatives in space science and applications.
Space flight.—These programs are carried out to enhance the
Nation's capability to operate in space and to provide space transportation services to Government, commercial, and foreign users.
Outlays for these programs are estimated to be $2.3 billion in 1979.
In 1979, outlays of $1.4 billion are recommended for continued
development and production of the space shuttle system. The space
shuttle will meet our Nation's need for space transportation capabilities, will increase the flexibility and productivity of space missions,
and will lower the total cost of space operations. The space shuttle,
the first reusable space vehicle, offers unique advantages over current
expendable launch vehicles. These include retrieval of payloads from
orbit for reuse; service and repair of satellites in space; and operation
of space laboratories, such as the European-built Spacelab, for scientific and practical purposes. One of the possible practical applications
envisioned is the production of improved, high-purity materials
utilizing the weightless, high-vacuum environment of space.
The shuttle development program is now at its peak period of
activity. The first shuttle vehicle has successfully completed a series
of approach and landing tests. The first test flight in orbit is scheduled
for 1979, with regular operations scheduled to begin in 1980. When
fully operational, the shuttle transportation system will replace
virtually all expendable launch vehicles currently used by the Department of Defense or by NASA for its own missions and for other Government, commercial, and international customers.
In formulating the 1979 budget, the administration has reviewed
the projected demands for use of the space shuttle and proposes the
procurement of four operational shuttle orbiters to provide launch
services from both the east and west coasts. The orbiter is the reusable part of the shuttle that returns with the crew to Earth. The
decision to procure four operational shuttle orbiters, as compared
with the five orbiters proposed in the 1978 budget, is expected to re-
MEETING NATIONAL NEEDS
97
suit in significant cost savings in future years. The procurement of
any additional orbiter capacity can be considered in future years in the
event that projected flight rates or the accidental loss of an orbiter
warrant such action. A four-orbiter shuttle fleet should encourage
early transition from expendable rocket boosters for civilian and
military purposes and will meet expected launch traffic well into the
1980's.
Space science, applications, and technology.—The Federal
Government supports fundamental studies and exploration of the
solar system and the universe, demonstrations of practical applications of space-based systems, and development of space technology
either to reduce the cost of operations in space or to make possible
new applications of space technology. Total outlays for such programs are expected to increase from $1.0 billion in 1978 to $1.2 billion
in 1979.
The Government assumes responsibility for space science and
exploration, as part of its overall support for basic research. Spacebased observations provide a unique vantage point for studies of the
Earth's space environment, the Sun, the planets, and stars not possible
from ground-based observatories because of the obscuring effects of the
atmosphere. As part of such investigations the administration is proposing a new space mission to orbit the Sun that will, for the first
time, study solar activity and radiation near the Sun's polar regions.
Previous observations of the Sun and its radiation have focused on
the region of the Sun that faces the Earth. The study of the Sun's
polar regions should contribute to our basic understanding of the
Sun's effect on the Earth's atmosphere and climate. The mission will
involve two spacecraft, one funded by the United States and the
other by the European Space Agency. This cooperative approach is
consistent with administration efforts to seek international cost sharing and participation in expensive space science projects.
The budget request also provides for continued development of
several science projects approved in prior years. The space telescope
will allow scientists to observe galaxies and other sources of radiation
that are at far greater distances than those that can be observed from
ground-based observatories. The telescope will be launched by the
space shuttle in 1983. Work will also continue on the Jupiter orbiter
and probe mission, the next step in the systematic exploration of
the planets. Other projects such as operation of the Viking-Mars
spacecraft will be extended to gather additional data.
Development and demonstrations of practical applications of space
technology are recommended in various areas to explore potential
98
THE BUDGET FOR FISCAL YEAR 19 79
uses of space technology to meet national needs. As part of the administration's initiative in climate research, the 1979 budget proposes
funds for an E a r t h radiation budget satellite system. T h e E a r t h ' s
radiation budget is the amount of solar energy absorbed by the E a r t h
in a given region minus the energy emitted back to space b y t h a t region. Knowledge of how the E a r t h ' s radiation budget varies b y region
and over time is considered important to understanding and ultimately
to forecasting climate variations.
The 1979 budget also proposes continued development of satellites to
monitor the E a r t h ' s land surfaces and oceans. A major effort is
continuing to investigate the potential benefits of using satellites
to survey the Earth's resources on a recurring basis. An estimated
$71 million will be spent in 1979 on the further development of the
Landsat-D satellite, the fourth in a series of experimental E a r t h
resources satellites. Landsat-D, scheduled for launch in 1981, is expected to enhance the experimental use of satellites in a variety of
applications, such as forecasting agricultural crop production. This
spacecraft will include a new instrument, the thematic mapper, with
higher resolution and increased capabilities for detecting a n d monitoring E a r t h resources. I t will also carry a multispectral scanner used
on the current Landsat spacecraft; this will extend the continuity of
Landsat data for foreign and domestic users.
Supporting
space activities.—In
1979, outlays of $390 million
are recommended to provide tracking and data relay support for
NASA space science and applications flight missions.
CREDIT PROGRAMS—GENERAL SCIENCE, SPACE, AND TECHNOLOGY
[In millions of dollars]
Program
Satellite leases:
Guaranteed loans:
New loans
Net credit guaranteed.
1977
actual
57
57
1978
estimate
198
198
1979
estimate
154
154
MEETING NATIONAL NEEDS
99
ENERGY
National Needs
Statement:
• Reduce dependence on foreign oil in the near term and
minimize the potential effects of supply disruptions.
• Prepare the U.S. economy to withstand the effects of
higher energy prices resulting from continuing growth in
demand coupled with the declining availability of world
oil supplies.
• Develop renewable and essentially inexhaustible sources
of energy for sustained economic growth through the
next century.
• Develop advanced nuclear power systems that will limit
the potential for international proliferation of nuclear
weapons.
• Protect the environment while achieving the Nation's
energy goals.
• Assure that energy policies and programs are fair, equitable, and fiscally sound.
The days of abundant and cheap energy are drawing to a close.
America faces new energy realities. Domestic reserves of oil and natural
gas, the Nation's predominant energy sources since World War II,
have been dwindling since 1970. Oil, natural gas, and other possible
substitutes for oil and natural gas, are expected to become increasing^
costly. In the United States, the potential for increased supplies is
limited, and global production capacity will eventually be similarly
limited. At the same time, demand for energy is increasing. This
imbalance between rising demand and limited production capacity
lies at the heart of the energy problem.
The transition from an age of abundant, cheap petroleum and
natural gas to one of increasing scarcity will be made in stages under
the administration's energy policies. Various conservation measures
will reduce the demand for energy in general and for oil and natural
gas in particular, while conversion measures will increase the use of
more abundant, conventional energy resources. The development of
a strategic petroleum reserve will help to protect the economy against
the effects of possible disruptions of foreign oil supplies. Over time,
the stock of capital goods, including buildings and cars, will have
increased energy efficiency, reflecting the new realities of petroleum
scarcity. Thus, the United States will be able to withstand better the
effects of worldwide decreases in production capacity. Over the long
run, the United States and the world will need renewable energy
100
THE BUDGET FOR FISCAL YEAR 1979
sources to maintain economic growth and to improve standards of
living.
The national energy plan, presented to the Congress last April, is
designed to encourage energy conservation, to promote a shift to more
plentiful and permanent energy supplies, to provide greater investment
certainty, to encourage greater production in the United States, and
to develop renewable energy resources. The plan also protects the
Federal budget from unreasonable burdens, and gives balanced consideration to the concerns of both consumers and producers.
The legislative initiatives that were submitted with the national
energy plan would provide the pricing and tax incentives to promote
conservation, greater production from existing domestic resources, and
the conversion from the use of oil and natural gas to a greater use of
more abundant fuels. The major proposals are:
• A crude oil equalization tax on existing domestic production to
raise the price of petroleum products to their replacement value.
Expected tax revenues would be refunded to individuals on a
per capita basis, either in the form of tax refunds or direct
payments.
• An industrial oil and natural gas consumption tax on certain
industrial and utility use to accelerate the conversion to facilities
that use coal and other nonpetroleum fuels and to stimulate
greater conservation. Refunds of the tax would be available by
making investments in equipment that uses nonpetroleum fuels.
• A new oil and natural gas pricing policy that would encourage the
development of new domestic supplies and eliminate the distinction between interstate and intrastate natural gas markets.
• An automobile fuel-efficiency ("gas guzzler") tax to encourage
conservation with all revenues refunded as subsidies for the
purchase of fuel-efficient vehicles.
• A regulatory program to prohibit the use of new oil and natural
gas burning equipment in certain industrial and utility applications.
• Individual tax credits for insulating residences and installing
solar energy equipment.
• Business tax credits to promote investment in more energyefficient equipment or modifications of existing structures and
equipment, cogeneration facilities (those that produce electricity
and steam simultaneously), coal conversion, and solar energy
equipment.
• New or more stringent energy-efficiency standards for buildings
and appliances.
• Reform of utility rates to promote the more efficient use of
electricity.
101
MEETING NATIONAL NEEDS
• Provision of weatherization grants for low-income housing,
schools, and hospitals, as well as technical assistance and energy
audits for public buildings.
• A vigorous program to develop renewable and nearly inexhaustible resources for future energy needs.
The effect of these proposals on U.S. petroleum production and
imports is shown in the following chart.
The budget and tax proposals in this budget support the national
energy plan. Taxes are also discussed in Part 4, budget receipts. The
budget proposals that address our national needs in energy are distributed among the following major energy missions:
• Energy conservation: to encourage the efficient use of energy in
all forms, but particularly oil and natural gas; $1.4 billion in
outlays proposed for 1979, and, in addition, $1.2 billion in new
tax expenditures.
• Energy supply: to encourage the development of additional energy
resources and technologies that will increase production from
domestic energy resources, particularly those that can substitute
for increasingly scarce oil and natural gas; $4.1 billion in outlays
proposed for 1979.
Effect of National Energy Plan on Petroleum Imports
Millions BaneU Daily
Million* Borref* Daily
to-
15-
10-
1950
wmtmmmtmmwmmstmmimmmmmmmmi
HHHMHHHMHMM
102
THE BUDGET FOR FISCAL YEAR 1979
• Emergency energy preparedness: to develop the means to withstand disruptions in the supply of imported oil; $3.3 billion in
outlays proposed for 1979.
• Energy information, policy, and regulation: to ensure that national
needs with respect to energy are met in an efficient and equitable
manner; $0.9 billion in outlays proposed for 1979.
Direct payments of the refunds from the crude oil equalization tax
are presented in the income security function.
To help carry out the missions, special emphasis is given in this
budget to:
• a 188% increase in outlays for energy conservation grants to
States, with major emphasis on schools, hospitals, and homes of
low-income individuals, and a 33% increase in outlays for conservation research and development;
• expansion of the energy extension service to a nationwide program to provide energy information to individuals, farmers, and
small businesses ;
• completion of a thorough analysis of possible advanced nuclear
fuel cycle and breeder reactor options, coupled with a strong, but
reduced program in liquid metal fast breeder reactor technology
development;
Outlays for Energy, 1975-1980
Conservation •••">.ir^.iv:":«".;
Energy Information,
Policy, and Regulation
(980
MEETING NATIONAL NEEDS
103
• substantial increases in the commercial nuclear waste management program, to ensure that by 1985 (the earliest practicable
date) the capability will exist to store safely and permanently
radioactive wastes from nuclear power plants ;
• initiation of a solvent refined coal demonstration plant (one that
eliminates many of the pollutants present in coal), and the
continuation of demonstrations in other areas of cleaner coal
combustion and conversion of coal to liquids and gas;
• increased emphasis on methods of producing electricity directly
from solar radiation and on new ways of substituting wood for
oil and natural gas;
• development of technology to aid in the use of solar generated
steam in conventional electric plants;
• full funding of the first 500 million barrels of the strategic
petroleum reserve, and further work toward the goal of a strategic reserve of 1 billion barrels by 1985; and
• initiation of the energy information systems proposed in the
national energy plan to obtain more reliable and detailed information on oil and natural gas reserves and production, oil and
natural gas company financial data, and local energy supplies and
demand for dealing with emergencies.
The major missions in this function are supported by agency
programs as shown in the following table.
Energy conservation.—This major mission incorporates outlays
and tax expenditures for the development and application of more
energy-conserving technology, grants and technical assistance to promote conservation practices, and other activities such as energyefficient standards for major new appliances. Proposed outlays will
increase from $0.6 billion in 1978 to $1.4 billion in 1979.
Technology development.—These conservation programs are aimed
primarily at conducting research and developing new technologies to
make more efficient use of energy. In addition, these programs also
emphasize development of techniques to substitute for oil and natural
gas. Outlays for these programs are proposed to increase to $324
million, or a 33% increase over 1978. Reduced emphasis will be
placed on those programs concerned with further development
and commercial demonstration of newly developed technology,
as this type of activity is more appropriately facilitated by national
energy plan measures other than direct research and development
assistance, such as tax incentives and utility rate reforms. The proposed funding increases will provide for greater emphasis on building performance standards and a 66% increase in funding for research and development for cogeneration, waste heat utilization, and
104
THE BUDGET FOR FISCAL YEAR
1979
NATIONAL NEED: ENERGY
[Functional code 270; in millions of dollars]
Major missions and programs
Energy conservation:
Technology development
Grants, efficiency standards, and technical assistance
-.
Automobile fuel-efficiency tax refunds
(proposed legislation).
Subtotal
Energy supply:
Research, development, and demonstrations:
Nuclear
fission..
Commercial nuclear waste
Fossil
Renewable resources
Environmental
Supporting technology
Uranium enrichment
Uranium enrichment revenues.
Proposed legislation
Petroleum reserves
Petroleum reserve receipts
Power marketing
Other offsetting receipts
SubtotalEmergency energy preparedness
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
estimate
1979
estimate
1980
estimate
385
127
244
324
439
625
16
208
578
622
150
500
500
500
1,510
143
601
1,402
1,561
815
187
727
874
324
232
1,399
—1,209
—163
385
-553
154
-304
836
67
452
434
271
136
1,070
-658
935
126
582
663
329
170
1.301
—966
107
-379
1,150
-219
488
-492
1,314
-262
828
163
689
792
327
218
1,383
-1,209
-163
512
—553
1,430
-304
8/5
184
1,110
925
328
235
1,752
-1,250
-169
284
-55/
1,723
-312
2,869
3,266
4,190
4,113
5,074
4,255
123
2,273
3,284
2,853
Energy information, policy, and regulation:
Regulation:
Federal Energy Regulatory C o m . . . .
Economic Regulatory Administration.
Nuclear Regulatory Commission.....
Energy information
_
Administrative expenses (DOE)
Proposed legislation.
__
Subtotal
Deductions for offsetting receipts
Total
44
60
331
63
503
5 ._.
35
50
231
37
311
35
51
275
46
392
42
59
307
61
458
3
44
60
320
64
480
22
1,006
664
799
930
990
-95
-23
-26
-95
-95
9,544
4,172
7,837
394
62
ADDENDUM
Off-budget Federal entity: Rural electrification and telephone revolving fund.
9,634
10,384
MEETING NATIONAL NEEDS
105
for other substitutes for oil and natural gas. Recommended increases
also include the development of advanced propulsion systems for
automobiles (for example, turbine engines) and electric and hybrid
vehicles, as well as improved technologies for storing energy. The
budget recommends that the program for evaluating the energy
inventions of individuals and small businesses be continued, along
with the program to develop small-scale technologies for energy
conservation.
Grants, efficiency standards, and technical assistance.—These
pro-
grams are designed to encourage energy conservation activities by
individuals, businesses, nonprofit institutions, and government entities.
Outlays are estimated at $578 million in 1979, as compared to $208
million in 1978. Outlays for energy conservation grants to States are
proposed to increase 188% from 1978, in keeping with the national
energy plan. Major emphasis will be placed on the funding of energy
conservation improvements for schools, hospitals, and the homes of
low-income individuals. Grants for State planning of State and local
energy conservation activities will continue under these budget
proposals. The budget also includes funds for the expansion of the
energy extension service to a nationwide program. The service
is expected to provide energy information to individuals, farmers, and
small businesses. Funding is also proposed for other national energy
plan initiatives, such as utility rate reforms and the development of
minimum efficiency standards for major home appliances. Legislation
to improve State grant programs will be proposed after completion
in the spring of a study on the role of State governments in implementing energy policy and programs.
Automobile juel-efficiency tax refunds.—The national energy plan
includes an automobile fuel-efficiency ("gas-guzzler") tax with all
revenues to be refunded as subsidies for the purchase of fuel-efficient
vehicles.
Tax expenditures to encourage conservation.—The national energy
plan proposes the use of tax expenditures, which had previously been
reserved for energy production, to promote conservation of scarce
energy resources. The principal tax expenditures proposed are:
• tax credits to individuals to encourage the installation of insulation and the use of solar equipment in private residences; and
• tax credits to businesses for thermal efficiency, cogeneration, coal
conversion, and solar equipment.
These tax credits would result in tax expenditures of $0.8 billion for
individuals and $0.4 billion for businesses in 1979.
106
THE BUDGET FOR FISCAL YEAR 1979
Energy supply.—The programs that support this major mission are
designed to encourage development of additional energy resources and
use of technologies to increase production from domestic energy
resources, especially those that can substitute for increasingly scarce
oil and natural gas. Included are substantial outlays for research,
development, and demonstration in all areas of energy production,
with increased emphasis on the disposal of nuclear waste materials,
and the development of renewable or inexhaustible energy technologies. In addition, the Government is directly responsible for the enrichment of uranium to fuel nuclear reactors and the management of
the naval petroleum reserves, several power marketing administrations, and the Tennessee Valley Authority. Over time, revenues offset
the budget outlays for the uranium enrichment activities and power
marketing administrations.
Net outlays for energy supply are expected to be $4.1 billion in
1979, compared to $4.2 billion in 1978 and $3.3 billion in 1977. Outlays
for nonnuclear energy supply programs will increase in 1979 by 11%
despite the overall reduction in net outlays for energy supply. The
net reduction results from substantial increases in receipts planned or
proposed to be received from energy supply programs and a reduced
emphasis on nuclear fission research and development.
Research, development, and demonstrations.—Two major premises
with respect to Federal support of energy supply research and development are (1) that its contributions will be realized, almost without
exception, only by the midterm (1990-2000) and beyond; and (2)
that it should complement and augment, not displace, private
sector efforts. The appropriate Federal role in energy research and
development is to concentrate on technologies that not only have
high potential for energy production or savings to the Nation, but
also have such technical risk or lengthy periods of development
that the private sector would not normally pursue them on its own or
in a timely manner. Federal efforts are less appropriately applied
where the technical risk is low, development time is relatively short,
or an intimate knowledge of the market is required.
The advanced nuclearfissionresearch and development program has
been redirected from its former primary emphasis on early commercial
introduction of the plutonium fueled liquid metal fast breeder reactor.
The program objective now is development of advanced nuclear
systems that minimize the risks of international nuclear weapons
proliferation. As part of this effort, the completion of a thorough
analysis of the various possible advanced nuclear fuel cycle and breeder
reactor options is given high priority. Total outlays in 1979 are estimated at $828 million.
MEETING NATIONAL NEEDS
107
The maintenance of a strong but reduced base technology effort for
the liquid metal fast breeder reactor is proposed; cancellation of the
demonstration plant at Clinch River, Tenn., an unnecessarily expensive project based on an outmoded technology, is again recommended. The budget includes funds to accelerate investigations of
alternative breeder concepts, especially those that do not involve fuels
that can be readily used to produce nuclear weapons. Also recommended is a program of intensified research on advanced nonbreeder
nuclear technologies. The goal of this effort is to increase the efficiency
of nuclear fuel consumption in order to avoid a premature commitment
to the commercialization of breeder technologies which carry with
them high risks of nuclear weapons proliferation. A strengthened
effort to determine domestic and international nuclear fuel resources
is proposed to provide a more accurate basis for determining when
advanced nuclear technologies will be required. The budget also
supports a new research effort in the Department of Energy on means
to improve operating safety margins in current generation nuclear
reactors.
The administration believes that development and demonstration
of a safe and environmentally acceptable technology for the permanent disposal of nuclear waste is necessary to ensure that nuclear
power can continue to make a contribution to meeting the Nation's
energy requirements. The administration, through the commercial
nuclear waste management program, is committed to resolving all
remaining waste management issues and is currently reviewing the
programs of the Department of Energy aimed at disposing of both
civilian and defense nuclear wastes. The proposed budget provides the
resources necessary to develop and demonstrate by 1985 (the earliest
practicable date) an effective means for permanently disposing of nuclear wastes to ensure the continued use of current generation nuclear
power plants. Outlays for 1979 are estimated to be $163 million, 29%
above 1978.
The fossil energy program is designed to enhance our capability to
develop the Nation's fossil energy resources: coal, natural gas, and
petroleum. One of the major problems with current fossil technologies,
mainly coal, is the unacceptable level of pollution. Accordingly, a
substantial part of the fossil energy research program is directed at
finding and developing technologies that can reduce coal pollution
problems. Outlays for the fossil energy program are estimated at $689
million for 1979, an increase of approximately 18% over the 1978 level.
The 1979 budget for the fossil energy research program include
significant increases for coal conversion (liquefaction and gasification),
and coal utilization (fluidized bed combustion, magnetohydrodynamics, advanced turbines, and advanced fossil research). The pro-
108
THE BUDGET FOR FISCAL YEAR 1979
gram includes the initiation of a solvent refined coal demonstration
plant in addition to the continuation of previously initiated coal
gasification demonstration plants. Efforts are also included to develop
enhanced oil and natural gas recovery techniques and to develop
oil shale technology.
The advanced coal mining technology and coal preparation research
and development programs were transferred from the Bureau of Mines
to the Department of Energy to permit a more integrated approach to
the problems concerning the production and use of coal. The advanced
coal mining technology program seeks to improve the efficiency of coal
mining operations consistent with health, safety, and environmental
standards. The estimated 1979 outlays for the mining program are $67
million, which includes $5 million to initiate a program that will explore alternative surface mining techniques. In addition, in order to
ensure that the Government's fossil energy development program is
consistent with the Nation's environmental goals, some of the programs previously funded in the Environmental Protection Agency's
environmental control technology program are proposed to be funded
by the Department of Energy and incorporated into its fossil energy
research and development program. In addition, funding is provided
to the Environmental Protection Agency for some activities previously
funded in the environmental research and development program in
the Department of Energy as discussed below.
The goal of the inexhaustible and renewable resources programs is to
develop and demonstrate clean, safe, and economically viable new
technologies in the following areas: solar (including power from wind
and ocean sources), geothermal, small hydropower, biomass (use of
organic waste products and crops for fuel), and fusion. Outlays for
these programs are estimated at $792 million for 1979, an increase of
19% over 1978. This proposed higher level of outlays will be used for
increased research in solar photovoltaics (technologies designed to
generate electricity directly from the Sun), solar air-conditioning,
wind and geothermal energy, and the development of new technologies
for small-scale applications using wood to substitute for oil and natural
gas. Also, the first major pilot plant project to produce electricity from
solar generated steam will be continued and modified to improve its
potential for use with conventional electric plants.
The rapidly growing market for use of solar energy in homes and
commercial buildings will be assisted by national energy plan initiatives such as tax credits, the increased use of solar power in Federal
buildings, dissemination of information, and the development of
consumer protection criteria for solar buildings technology. Also,
additional research and development will continue to develop economical solar air-conditioning technology. The solar heating demon-
MEETING NATIONAL NEEDS
109
stration activities, which provided early widespread experience, are
proposed to be phased out, while a limited number of air-conditioning
demonstrations are planned to continue as economical technologybecomes available.
This budget also provides for a 17% increase in outlays for magnetic
fusion research. The program is directed toward proving the experimental feasibility of this technique of producing energy through the
controlled fusion of hydrogen atoms.
Both the Department of Energy and the Environmental Protection Agency conduct environmental research to determine the consequences of the byproducts of energy production and use on human
health and the environment. The results of this research are used to set
pollution standards and regulations, as well as to determine priorities
for research in fossil, fission, and other energy technologies. Increased
funding is proposed for the carbon dioxide research program, which
will intensify efforts to determine whether increasing amounts of
carbon dioxide in the atmosphere due to the use of fossil fuels may
reach levels that could cause changes in world climate. Certain health
and environmental research activities previously funded in the Department of Energy are now funded in the Environmental Protection
Agency to improve the scientific basis of future pollution standards
and regulations.
The supporting technology programs include basic research and
technology assessments that support all energy technologies. The
budget recommends that nonnuclear basic research programs continue to expand to increase understanding of fundamental phenomena
associated with the production of energy from fossil and renewable
resources. The Department of Energy is initiating a new program to
draw together scientific and engineering resources to address problems
that are common to more than a single energy technology program.
Outlays for supporting technology are estimated at $218 million in
1979, a 28% increase over 1978.
Uranium enrichment.—In 1979, the Department of Energy will
continue operating three uranium enrichment plants. These plants
produce enriched uranium (uranium in which the fissile-energy producing-isotopes are concentrated) for use in domestic and foreign commercial plants as well as for use in weapons by the U.S. Government.
Proposed outlays for uranium enrichment activities will reach $1.4
billion in 1979. Proposed increases allow for the continuation of the
project at Portsmouth, Ohio, to build the first full-scale facility to
use the new centrifuge enrichment technology; expansion of the existing plants to be completed in 1981; and further engineering work on the
diffusion and gas centrifuge uranium enrichment processes.
260-000 O - 78 - 8
110
THE BUDGET FOR FISCAL YEAR 1979
Uranium enrichment revenues.—Presently, prices charged commercial customers for enrichment services are calculated to recover only
current budgetary expenses of the program and depreciated capital
investments in plants. The administration has proposed legislation to
increase the price to one that returns a fair value on the taxpayer's
investment in this service; that is, an amount for estimated taxes
and a reasonable return on the capital investment would be added
to current charges. No noticeable impact on the Consumer Price
Index is expected from this action, and thus no significant impact
on consumers is anticipated. Uranium enrichment revenues are estimated at $1,372 million for 1979, which includes $163 million as a
consequence of the proposed legislation.
Petroleum reserves.—In 1976, the Congress directed that oil production should be increased at the naval petroleum reserves located in
California and Wyoming in order to reduce U.S. dependence on imported oil. Oil is sold at competitive prices, with receipts deposited in
the Treasury. U.S. Government production in 1979 is expected to be
about 115,000 barrels per day, with revenues expected to be $553
million in 1979. Funding in 1979 will provide $385 million in budget
authority for continued exploration of the California and Wyoming
reserves, development of pipelines, and production costs. With respect to the national petroleum reserve in Alaska, the 1979 budget
provides for the continuation of (1) studies of the area to define (a)
alternative potential land uses, to be completed in April 1979, and
(b) the best procedures for development of any commercial quantities of petroleum resources in it, to be completed in January 1980;
and (2) the exploration program to characterize better the petroleum
resource potential of the reserve. Through 1979, the multiyear exploration program will provide reasonable information to characterize
the petroleum resources of the reserve. The exploration program will
be completed with funds provided in the 1979 budget, except for
some contractor closeout costs.
Power marketing.—Outlays for power marketing programs are
estimated at $1.3 billion in 1978 and $1.4 billion in 1979. These outlays
are primarily for the nuclear power plant construction programs of the
Tennessee Valley Authority. In addition, they incorporate estimates
for the five Federal power marketing administrations of the Department of Energy, which transmit and market power from Federal
hydroelectric projects. Revenues from the sale of electricity offset
most of these outlays. Also included are the administrative expenses
of the Rural electrification and telephone revolving fund (R.E. &
T.R.F.).
MEETING NATIONAL NEEDS
111
New direct loan commitments from the R.E. & T.R.F. are estimated
to be not less than $985 million in 1979 (not less than $735 million
nor more than $885 million for rural electric borrowers to provide
electric service to rural areas, and not less than $250 million for rural
telephone borrowers to furnish and improve telephone service to rural
areas). Loans from the R.E. & T.R.F. bear interest at either 2% or
5%, and are to be repaid within 35 years. By statute the loans, advances, budget authority, and outlays are excluded from the budget.
In addition, the Rural Electrification Administration will guarantee
an estimated $4,000 million in loans made by the Federal Financing
Bank and other qualified lenders to rural electric borrowers at rates
agreed upon by the borrower and lender.
Tax expenditures to encourage production.—Tax expenditures also
encourage the development and production of energy and mineral
resources. Exploration and development expenses (mostly for oil and
natural gas) may be treated as current costs rather than as capital
investments, which would have to be amortized over a number of
years. This provision is expected to provide a $1.3 billion tax incentive
to develop energy and mineral resources in 1979. Another tax provision
allows the use of percentage depletion rather than actual cost depletion. Although sharply curtailed for oil and natural gas in 1975 legislation, the percentage depletion is still expected to provide a $1.5
billion tax incentive for mineral production in 1979, with most of that
amount for fossil fuel production. As a part of the national energy
plan, the provision for expensing intangible drilling costs would be
expanded to encompass geothermal energy resources.
Emergency energy preparedness.—This major mission consists
of contingency planning and the development of the strategic petroleum reserve. In combination, these programs will increase the ability
of the United States to withstand the effects of major disruptions in
world petroleum markets and to fulfill its obligations under the international energy program. The Energy Policy and Conservation Act
(EPCA) of 1975 requires the creation of a 500 million barrel reserve
by 1982. The administration is committed to completing storage of 500
million barrels by December 1980 and to developing a 1 billion barrel
reserve by 1985. The Department of Energy began storing crude oil in
July 1977. The oil is stored in salt domes (natural salt formations)
along the Texas and Louisiana gulf coast. Further development of storage facilities (and their associated pipelines and docking facilities) and
storage of oil will continue in 1979.
Budget authority of $4.3 billion is requested for 1979 for this major
mission; outlays are estimated at $3.3 billion in 1979, as opposed to
112
THE BUDGET FOR FISCAL YEAR 1979
$2.3 billion in 1978. Almost all of the budget authority requested
reflects full funding for the second 250 million barrels of oil scheduled
to be stored by the end of 1980. Proposed 1979 outlays include $72
million for initial facilities for the third 250 million additional barrels.
Energy information, policy, and regulation.—This mission
seeks to assure that national energy needs are met in an efficient and
equitable manner. This task has been enhanced by the creation of
the Department of Energy in 1977, which gathered all of the Federal
Government's energy information and policy functions and most of
the energy regulatory functions into one agency. Outlays for these
programs are expected to increase from $799 million in 1978 to $930
million in 1979.
Regulation.—Federal Government regulation of the energy area
includes controls over the economic, commodity flow, and safety
aspects of the energy industry. Economic regulation includes price
controls on interstate sales of electricity and natural gas as well as
sales of crude oil and refined products. Control over commodity flows
includes allocation of petroleum and its refined products as well as
contingency measures such as gasoline rationing during energy emergencies. Safety responsibilities include civilian uses of nuclear material
and nuclear energy as well as private hydroelectric projects.
The Federal Energy Regulatory Commission, formerly the Federal
Power Commission and now an autonomous unit of the Department
of Energy, is responsible for licensing private hydroelectric facilities,
regulating rates and services of public utilities selling electricity in
interstate commerce at wholesale, approving interstate natural gas
prices, and regulating transportation tariffs on oil and natural gas
pipelines. The Commission plans to meet increasing workload problems by improved management, including an internal reorganization,
and greater reliance on computer processing.
The responsibilities of the newly created Economic Regulatory Administration in the Department of Energy include pricing and allocating crude and refined petroleum products, enforcing compliance
with those regulations, and promoting coal conversion. Total estimated
outlays for the Economic Kegulatory Administration are $59 million,
an increase of $8 million over 1978. Several significant internal changes
that are taking place in 1978 and will continue into 1979 include:
• the concentration of petroleum compliance personnel on auditing
major refiners to complete audits of 18 major refiners within an
18-month period;
• a reduction in personnel in programs related to petroleum product
pricing and allocation because of planned gasoline decontrol;
MEETING NATIONAL NEEDS
113
• an increase in personnel to develop and initiate a new coal
utilization program under the national energy plan with a phaseout of the existing program; and
• the establishment of a new office to initiate a review and revision
of petroleum regulations.
The Nuclear Regulatory Commission (NRC) was established in 1975
to assure public health and safety through the regulation of all
civilian uses of nuclear materials and nuclear energy. NRC regulates
the siting, construction, and operation of all civilian nuclear reactors,
nuclear fuel storage, and waste disposal of radioactive materials. The
NRC also conducts a nuclear safeguards program to prevent the loss
or diversion of nuclear materials, and a research program to produce
information needed to confirm the data and analytic methods that
form the basis for nuclear licensing standards and regulations.
In keeping with the national energy plan, the NRC is changing its
inspection program to improve the effectiveness of its regulatory
activities by providing a resident, full-time inspector for nuclear
reactors when a reactor is either in the late stages of construction or
in operation. NRC is also moving administratively to decrease the
amount of time necessary to license a nuclear power plant, and the
administration will propose legislation to improve the NRC licensing
process. Budget authority is expected to increase from $292 million in
1978 to $331 million in 1979. Much of this increase reflects the funding
in NRC of safety-related research facilities, formerly funded by the
Department of Energy, needed by the Commission to confirm NRC's
regulatory standards and procedures.
Energy information.—The Energy Information Administration in the
Department of Energy provides a source of publicly available data
and analysis separate from the policy formulation activities within
the Department. The merger of previously dispersed Federal energy
data collection efforts into this agency is expected to improve the
credibility and accessibility of energy data and analysis. The estimated
budget outlays of $61 million provide increased funding for the
energy information systems, proposed by the President in the national
energy plan, to obtain more detailed and reliable information on oil
and natural gas reserves and production, as well as financial reports
from major petroleum-producing companies. This budget proposal
also provides funding for a major survey of residential energy use that
will substantially improve the accuracy and reliability of energy consumption data.
Administrative expenses {Department of Energy).—Appropriations for
these activities provide for the expenses associated with providing
114
THE BUDGET FOR FISCAL YEAR 1979
policy direction in energy matters and program management. They
also cover several activities that cannot be allocated by program, such
as energy conservation activities within Department of Energy installations and facilities. Legislation is proposed to handle the decontamination and decommissioning of inoperative radioactively contaminated
facilities such as research reactors that are no longer needed or obsolete, as well as uranium mining waste.
CREDIT PROGRAMS-ENERGY
[In millions of dollars]
Program
1977
actual
Energy programs:
Direct loans:
New loans.
Repayments, sales, and adjustments (—)
Net credit outlays
_
_
Guaranteed loans:
New loans
Net credit guaranteed
1978
estimate
1979
estimate
—6
—6
—6
—6
—6
—6
2
2
87
87
70
60
875
—276
1,035
—755
1,250
— 1,045
599
280
205
1,222
1,222
3,142
3,142
3,389
3,380
Off-budget Federal entity—Rural Electrification Administration:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
Net credit outlays
Guaranteed loans:
New loans
New credit guaranteed
..._
.._
_
__
._
_
MEETING NATIONAL NEEDS
115
NATURAL RESOURCES AND ENVIRONMENT
National Needs Statement:
• Protect the public health and welfare by assuring a clean
environment with special emphasis on the protection
of air and water quality and the control of particularly
injurious pesticides, hazardous wastes, and toxic substances.
• Provide for the conservation and development of public
Jands, water, timber, and other natural resources.
• Ensure the provision of recreational opportunities to the
Nation's people and the preservation of natural areas,
historic sites, and fish and wildlife.
• Improve our knowledge and understanding of the atmosphere and the Earth's structure, environment, and resources.
Intelligent stewardship of America's natural resources and environment on behalf of all the Nation's people is a prime responsibility
of government.
Government at all levels must work together to protect our most
important resource—human health—from the hazardous effects of
toxic substances and other pollutants. The resources of the commons—
our air, water, and land—must be preserved and enhanced in order
to support future economic growth as well as life itself.
The Government also must provide intelligent management of the
public lands. These resources, which belong to all citizens, must not be
carelessly squandered in disregard of sound environmental principles.
At the same time, the Government must assure that minerals, timber,
and other resources on the public lands are developed prudently
for the benefit of all.
Finally, the Government helps to preserve the places and things
that give the Nation continuity by safeguarding important elements
of our Nation's natural, historic, cultural, and scientific heritage.
To help meet our national needs for using and preserving our
natural resources and improving the environment, the budget proposes that $12.2 billion in 1979 be spent for the following major
missions:
• Pollution control and abatement: to cooperate with and assist
States in controlling and reducing air, water, and land pollution
so as to protect the public health and welfare: $5.6 billion.
116
THE BUDGET FOR FISCAL YEAR 1979
• Water resources: to develop and manage water resources so as
to balance economic benefits with the need to preserve the
environment: $3.4 billion.
• Conservation and land management: to develop and manage
land resources so as to provide for a variety of uses of federally
owned lands and to encourage conservation on private lands:
$1.6 billion.
• Kecreational resources: to provide our people with recreation
opportunities and to preserve the best of our natural and historic heritage: $1.5 billion.
• Other natural resources: to increase our understanding of the
Earth and its surroundings: $1.3 billion.
To help carry out these missions, special emphasis is given in this
budget to:
• Substantially increasing personnel and funding, including grants,
to protect the quality of the Nation's drinking water.
• Materially strengthening our efforts to improve the quality of
this country's air and water through increased Federal activities
and grants to States.
• Accelerating control of air and water pollution caused by Federal
facilities that are identified to be in violation of pollution standards.
• Initiating in 1978 and increasing in 1979 cooperative efforts with
the States to regulate surface mining of coal to prevent permanent
land degradation and to reclaim land previously damaged by
such mining.
• Initiating the national heritage program to protect unique natural
areas and historic sites for the enjoyment of current and
future generations.
• Significantly increasing the appropriations from the land and
water conservation fund to $725 million for grants for land
acquisition and development and for Federal purchase of lands
to enhance outdoor recreational opportunities.
• Reviewing Federal lands for the possible addition of areas to the
national wilderness preservation system to protect their wilderness characteristics.
• Expanding efforts to develop the ability to understand and anticipate climatic fluctuations so that the Nation can better prepare
for the effects of climatic anomalies.
The major missions in this function are supported by the programs as shown in the table on the following page.
Pollution control and abatement.—The mission of controlling
and reducing air, water, and land pollution is carried out by the
Federal Government both directly and through State and local
MEETING NATIONAL NEEDS
117
NATIONAL NEED: USING AND PRESERVING NATURAL RESOURCES. AND
IMPROVING THE ENVIRONMENT
[Functional code 300; in million* of dollar$1
Major missions and programs
Pollution control and abatement:
Sewage plant construction grant program...
Regulatory and research programs
Oil pollution liability and compensation fund
(proposed legislation)
Subtotal, pollution control and abatement
Recommended
budget
authority
for 1979
4,500
1,024
Outlays
1977
actual
3,530
750
1978
1979
1980
estimate estimate estimate
4,135
812
180
4,660
905
5,000
987
50
50
5,704
4,279
4,947
5,615
6,037
3,284
3,241
3,686
3,392
3,461
Conservation and land management:
Management of national forests and forestry
research
_
Management of public lands
Surface mining reclamation
Conservation of agricultural lands
Other, including offsetting receipts
1,570
386
109
388
-697
1,109
367
468
-665
1,516
362
48
685
-532
1,407
382
70
432
-711
1,575
379
198
403
—687
Subtotal, conservation and land management
_
1,755
1,279
2,079
1,579
1,869
755
1,003
344
670
472
851
554
980
589
/. 049
11
//
Water resource*
_
Recreational resources:
Land and water conservation fund
Operation of recreational resources
Migratory bird conservation (proposed legislation)
Subtotal, recreational resources
Other natural resources
Deductions for offsetting receipts
Total
11
1,769
1.014
1,323
1,545
1,649
1,331
973
1,175
1.268
1,254
-1,178
-786
-1,084
-1,178
—1,163
12,664
10,000
12,125
12,222
13,106
governments who are supported by Federal financial and technical
assistance. Outlays are estimated to increase from $4.3 billion in
1977 to $4.9 billion in 1978 and $5.6 billion in 1979.
Sewage plant construction grants.—Under authority of the Federal
Water Pollution Control Act of 1972, the Federal Government pro-
118
THE BUDGET FOR FISCAL YEAR 1979
vides grants to State and local agencies for 75% of the costs of planning, designing, and constructing municipal wastewater treatment
facilities. With over 11,295 projects currently underway, nearly all
of the $18 billion authorized under the act has been obligated. The
administration is committed to an additional $45 billion over the
next 10 years to assure that the construction of wastewater treatment
facilities meets our national water quality goals.
The Environmental Protection Agency intends to spend over $19
million in 1979 to reimburse the Corps of Engineers for the supervision
of construction activities on wastewater treatment facility projects.
This will result in more efficient management of the construction
grants program. The Corps7 experience in the area of public works
construction will increase safeguards against fraud and other improprieties in the use of nearly $5 billion in Federal funds annually.
Regulatory and research programs.—Consistent with its firm commitment to eliminate public health hazards, the administration proposes
a substantial increase in both funds and personnel to ensure that
the quality of the Nation's drinking water is adequately protected
by the States and localities. A 29% increase in budget authority
over the 1978 level is requested for the drinking water program.
Included in the proposal is an increase of 36% in grant assistance. A
sixfold increase in personnel for the enforcement program is recommended to begin expanded efforts to correct violations of standards.
The administration will also propose amendments to the Safe
Drinking Water Act to define more precisely the respective responsibilities among the Federal Government, the States, and localities in
protecting local drinking water supplies. The legislation will reemphasize the intent of the act that the States must have the primary responsibility for assuring that the standards are enforced.
The administration proposes increases in budget authority of $56
million and 165 positions for the air quality program in 1979. In
addition, a thorough review of the air quality program has resulted in
a substantial redirection of resources to high-priority activities identified by the recently enacted Clean Air Act Amendments.These changes
will result in increased emphasis on grants to States, setting of standards for new stationary sources of pollution, better enforcement of
existing air quality standards, and expanded programs to study
ambient air problems of photochemical oxidants and toxic fine particulates. The new positions will be devoted primarily to enforcement actions.
The administration intends to integrate the Department of Transportation's transportation planning process with the Environmental
Protection Agency's air quality planning requirements to ensure that
MEETING NATIONAL NEEDS
119
transportation systems contribute to meeting air quality health standards in regions where these standards are not now being met.
In an effort to solidify further the Federal/State partnership in
improving the Nation's environment, the administration supports the
49% increase in budget authority for grants to support States and
localities in operating their environmental programs enacted for 1978,
and recommends an additional 3 % increase in 1979. In addition, a
proposal to consolidate grants for air, water quality, drinking water,
and solid waste programs will be submitted separately. This initiative
will provide States and local governments with increased flexibility to
respond to local pollution problems and to initiate and develop abatement and control strategies.
This budget also proposes a major emphasis on the control of toxic
substances. Personnel increases of 82% and budget authority increases of 96% over 1978 are recommended. The increases reflect the
priority placed on the effective control of toxic substances as an important part of the Environmental Protection Agency's preventive
health mission. The administration continues to seek passage of its
comprehensive oil pollution liability and compensation legislation to
assure adequate and timely compensation for damages and cleanup
costs resulting from oil spill pollution.
Budget resources in support of the mission of pollution control and
abatement are included in agencies other than the Environmental
Protection Agency, and, where their primary purpose is the support
of other national needs, are classified in other functional categories.
For example, the Environmental Protection Agency has identified
over 140 major violations of pollution standards by Federal facilities
and has notified the agencies affected that they must comply with
pollution standards. In response, the administration has ensured that
each agency's proposed budget includes sufficient funding for pollution control projects to halt these violations in line with compliance
schedules approved by the Environmental Protection Agency. Several
agencies also are proposing funding a number of projects for facilities
that will reduce pollution to avoid future violations.
The following table summarizes the financing of pollution control
and abatement activities that are classified as meeting these as well
as other national needs. For further details see Special Analysis O,
"Environment."
Tax expenditures for pollution control result from the exclusion of
interest on pollution control bonds from income subject to tax. The
facilities financed by these bonds are privately owned, even though
the bonds are nominally issued by State or local governments. Under
current law the resulting tax expenditure would be $385 million in
1979. The tax reform proposals would eliminate the tax-exempt
120
THE BUDGET FOR FISCAL YEAR 1979
POLLUTION CONTROL AND ABATEMENT-INCLUDING PROGRAMS ASSIGNED TO
OTHER MISSIONS
[In millions of dollars]
Outlays
197/
actual
Environmental Protection Agency (largely subfunction
304):
Water:
Construction grants or loans
Other water
_
Air
_
Other 1 ...
Subtotal...
Other programs:
Water:
Construction grants or loans
Other....
Air...
Land
Other*
1
Obligations
1977
actual
1978
estimate
1979
estimate
3,530
307
177
352
7,501
256
165
386
4,000
386
190
488
5.000
372
224
463
4,366
8,308
5.064
6.059
178
500
303
136
346
442
534
345
114
471
117
587
333
135
416
152
654
324
133
511
Subtotal.
1,463
1.906
1,588
1.774
Total...
5,829
-
10,214
* 6,652
7,833
Includes toxic substances control, waste management, noise, radiation, and pesticides.
status of newly issued bonds because tax exemption is an inefficient
subsidy. The tax code would be amended, however, to permit the
full 10% investment tax credit to be claimed for such facilities in
cases where the facilities are amortized over 5 years.
Water resources.—The mission of water resources development is
to manage and control our water resources in order to attain the
benefits of water resource projects while preserving the quality of
the environment. The Federal Government carries out its responsibilities with a careful regard for the role of State and local governments.
The Federal Government is involved in a wide range of activities
in support of this mission:
• flood control;
• irrigation and water conservation;
• development and maintenance of inland waterways and harbors;
• hydroelectric power development;
• municipal and industrial water supply development;
MEETING NATIONAL NEEDS
121
• recreation and wildlife preservation; and
• erosion control.
Outlays for this mission are estimated to decrease from $3.7 billion
in 1978 to $3.4 billion in 1979.
The involvement of the Federal Government in water resources
development has grown in piecemeal fashion over the years without
a unified and consistent policy. A major policy study is now underway
in an effort to evaluate the state of our water resources and to develop
policies and programs consistent with that evaluation. The administration wants to improve the efficiency, consistency, and contribution
to environmental quality and to water conservation of Federal water
programs. Presidential recommendations on water resources policy are
expected to be transmitted to the Congress early in the calendar year
1978. Although no new water resource construction projects are proposed in this budget, the administration may recommend some new
project starts in conjunction with the water resources policy recommendations. In addition, other program and project recommendations
in this budget may be amended at that time.
The 1979 budget includes outlays of $16 million for the Corps of
Engineers to continue a non-Federal dam safety inspection program
initiated by the President in 1978. Under this program, the Federal
Government will finance the one-time inspection of approximately
9,000 high-hazard dams and assist the States in training personnel
to establish adequate State dam safety programs to continue this
activity in the future.
The recommended outlay levels in the 1979 budget for projects now
being constructed by the Corps of Engineers and Bureau of Reclamation are expected to result in slightly reduced work levels and completion delays for some projects as compared to the schedules in the
1978 budget. High-priority projects, such as hydroelectric power,
urban flood damage reduction, and municipal and industrial water
supply, will be kept on schedule. Delays are anticipated in the construction of the Auburn Dam in California, pending a current review
of geologic conditions, and the Garrison diversion project in North
Dakota, pending a resolution of legal and international questions.
Should these problems be resolved satisfactorily, any additional funds
that may be required will be requested.
Estimated 1979 outlays for the planning of future water projects
in the Corps and Bureau of Reclamation are slightly below 1978.
Two kinds of Corps of Engineers studies are proposed for termination:
those for which it is unlikely that a worthwhile project will ever result,
and those whose primary purpose is not a high-priority Federal water
resources mission.
The following table shows construction projects that have been
funded with year-to-year appropriations and that need future budget
122
THE BUDGET FOR FISCAL YEAR 1979
authority for their completion. Because the total budget authority
does not appear in any one budget year, the full costs of these projects
are often not clearly displayed. For example, the proposed 1979 budget
authority of $2.1 billion for water resources projects will have to be
supplemented by an additional $19.0 billion in budget authority in
future years to complete the projects. The total cost of these projects
is estimated at over $41 billion.
Other Corps and Bureau of Reclamation activities, such as the
operation and maintenance of completed projects, are expected to
continue at approximately the same level as in 1978, as are the water
resource activities of the Soil Conservation Service.
Federal water resources activities supplement and complement
other national needs and missions. For instance, canals and rivers
provide a transportation service; flood control investments reduce
disaster assistance; irrigation and drainage projects increase farm
production; Federal hydroelectric power meets part of the Nation's
energy needs; and Federal water resources planning constitutes an
integral part of the Nation's environmental protection activities.
Conservation and land management.—Federal lands total about
760 million acres, or 3 3 % of the country's area, of which nearly 300
million acres are in Alaska. The conservation and land management
mission is carried out through a program of Federal land management
that strives for an optimal balance among various uses. Federal lands
are managed to conserve and develop natural resources, including
timber and wildlife habitats; to provide recreation opportunities on
WATER RESOURCES CONSTRUCTION PROJECTS IN THE 1979 BUDGET THAT
REQUIRE FUTURE BUDGET AUTHORITY
[In millions of dollars]
Budget authority
Agency and program
Already
approved
prior to
1979
Additional
Proposed needed to
for 1979 complete
Total
Corps of Engineers—Civil:
Construction, general
.__
Flood control, Mississippi River and tributaries
9,999
2,519
1,400
151
7,142
3,267
18,541
5,937
2,009
143
1,368
3,520
121
4,770
471
481
42
270
73
66
400
4,889
1.056
828
563
9.9Z9
1,600
1,375
Department of Agriculture:
Soil Conservation Service
Department of Interior:
Bureau of Reclamation:
Colorado River Basin salinity control projects
Construction and rehabilitation
Colorado River basin project
_._
Upper Colorado River storage projects
Total
20,370
2,145
18,950
41,465
MEETING NATIONAL NEEDS
123
national forests and other public lands; and to encourage conservation efforts, including watershed protection and development, on
private lands. Total outlays are estimated to increase from $1.3 billion in 1977 to $2.1 billion in 1978 but decrease to $1.6 billion in 1979.
Management of national forests and forestry research.—The Forest
Service administers the National Forest System, conducts a comprehensive forest an d range research program, and carries out cooperative
forestry programs with States and private landowners. Proposed 1979
budget authority for these activities totals $1,570 million, a decrease
of $68 million from 1978 ($54 million of this decrease is due to lower
estimates of budget authority required for firefighting). Reductions
from the large increases approved for 1978 also are proposed in
national forest management, cooperative forestry, and construction
programs. These decreases are partially offset by increases for road
construction and other forestry programs.
The proposed budget for the Forest Service is considerably less than
that suggested by the reports prepared pursuant to the Resources
Planning Act. This act requires the Secretary of Agriculture to recommend to the Congress his preferred level of funding for the Forest
Service. However, the proposed budget, together with the assistance
provided by the Young Adult Conservation Corps (financed by the
Department of Labor and discussed in the education, training, employment, and social services function), provides sufficient resources
for managing an aggressive program. Management of the national
forests will continue to emphasize both the need for timber and the
need to protect the environment. Planned timber sales total 11.5
billion board feet in 1979, the same as planned for 1978. The budget
anticipates over 213 million visitor-days of recreation use. Possible additions to the national wilderness preservation system are currently
under review. Programs of monitoring and enforcing standards of
water quality, managing habitats for the preservation of endangered
and threatened species of wildlife and plants, and restoring rangeland
will continue.
Management of public lands.—The Bureau of Land Management
administers the public lands that embrace 470 million acres or 20% of
the country of which 276 million acres are in Alaska, as well as 840
million acres of subsurface rights vested in Federal ownership. In addition, it has jurisdiction over the 1.1 billion acres of the Outer Continental Shelf. In managing these areas the Bureau strives for an
optimal balance among timber, grazing, mineral development, and
other uses. Revenues collected from mineral leasing, grazing fees,
timber sales, land and materials sales, and rights-of-way leases are
estimated at $707 million in 1978 and $790 million in 1979. Outer
124
THE BUDGET FOR FISCAL YEAR 1979
Continental Shelf receipts are included in the section on undistributed
offsetting receipts. The administration proposes that grazing fees
gradually be increased to attain fair market value in 1980.
Outlays for the Bureau of Land Management are proposed to
increase from $362 million in 1978 to $382 million in 1979. This
increase will support increased data collection needed for better range
management decisions, and also finance the new land-use decisionmaking and enforcement responsibilities required by the 1976 Federal Land
Policy and Management Act. Additional personnel will be available
for land management activities from the Young Adult Conservation
Corps. Funds are also requested for environmental baseline studies to
the extent needed for environmental impact statements related to
Outer Continental Shelf lease determinations. Five lease sales on the
Shelf are planned in 1979. The budget recommends oil-development
related studies of the Alaskan marine environment, for which relatively
little ecological information currently exists. Finally, funding is proposed for studies of the environmental effects of transporting oil and
natural gas from offshore production facilities.
Surface mining reclamation.—The new Office of Surface Mining
Reclamation and Enforcement was established in 1977. Its two program goals are to prevent the permanent degradation of land due to
surface mining of coal, and to reclaim land previously damaged by
such mining. Total outlays are estimated to be $48 million in 1978
and $70 million in 1979.
The first goal will be accomplished through the development and
enforcement of regulations that set standards for surface mining of
coal. The program is designed to have States assume responsibility
for enforcement. As an incentive for States to assume this responsibility, the budget proposes that the Federal Government provide
several types of aid, including grants and technical assistance. The
Office will have an oversight role in those States that assume regulatory
responsibility, and will have full responsibility for enforcement in
States that do not exercise this option.
Top priority in reclamation will be given to developing an inventory
of lands requiring reclamation to ensure that the most urgent problems are addressed first with regard to the second goal. Budget authority of $71 million is requested to conduct such an inventory and to
begin projects that remedy the most serious reclamation problems.
These projects will be undertaken by the Office of Surface Mining, the
Soil Conservation Service of the Department of Agriculture, and by
those States that have approved regulatory programs.
MEETING NATIONAL NEEDS
125
Conservation of agricultural lands.—Several programs contribute to
this mission which is to protect and maintain the long-term productive
capacity of the Nation's rural lands through technical and financial
assistance to conservation districts, State and local governments, and
private landowners.
The decrease in outlays from $685 million in 1978 to $432 million in
1979 reflects program reforms including the consolidation of the great
plains program with the agricultural conservation program. Resource
conservation and development program funds will be directed toward
completion of ongoing projects rather than initiating new ones. The
1979 budget stresses technical assistance, data collection, and dissemination. Cost sharing assistance will be directed toward the alleviation
of non-point-source pollution, the treatment of critically eroding
lands, and conservation measures which provide long-term benefits in
contrast to measures which provide short-term benefits or production
enhancement. This emphasis on enduring practices should produce
more effective use of all funds (Federal, State, local, and private) for
conservation purposes.
Other conservation and land management—The Department of
Commerce's National Oceanic and Atmospheric Administration
promotes the rational use and conservation of our coastal areas by
helping States and territories develop and carry out coastal zone
management programs. It also provides grants for the construction
of public facilities required as a result of coastal related energy development activities. This agency is also responsible for designating sanctuaries to protect important marine and estuarine areas.
Budget authority for these programs is proposed to increase from
$51 million in 1978 to $57 million in 1979. In 1979, all eligible States
and territories will receive Federal grants for the planning and administration of their coastal zone management programs. Increased
funding for the coastal energy impact formula grant program is requested to help those States affected by the anticipated expansion of
Outer Continental Shelf oil and gas developments. Expansion of the
national marine and estuarine sanctuaries program is also planned.
Recreational
resources.—To accomplish this mission, the
Federal Government acquires and operates national parks, recreation
areas, historic sites, wild and scenic rivers, fish hatcheries, and wildlife refuges. Facilities are provided for visitors and the production of
fish and wildlife. Grants and technical assistance are provided to States
for planning, acquiring, developing, and managing areas for recreation,
fish and wildlife conservation, and the preservation of historic places.
Research on these subjects is also conducted.
260-000 O - 78 - 9
126
THE BUDGET FOR FISCAL YEAR 1979
Outlays for these programs are estimated to increase to $1.5 billion
in 1979 as compared to $1.3 billion in 1978 and $1.0 billion in 1977.
National heritage program.—This is a new program proposed by
the administration to conserve the best of the Nation's natural and
historic heritage. It will be financed through the historic preservation
fund and the land and water conservation fund. States and local
governments will be encouraged through grants and technical assistance to select, set priorities, and preserve outstanding and unique areas
of scenic, wild, geologic, ecological, or historic importance. States will
make an inventory of such places and nominate them for addition to
national lists to be compiled by the Department of the Interior.
Federal development programs will not be allowed to affect adversely
those listed places determined to be of national significance.
The program will be administered by the Bureau of Outdoor Recreation. The Bureau will have transferred to it the historic preservation
functions of the National Park Service.
Land and water conservation fund.—This fund provides grants to
States for recreational land acquisition and development. It also funds
the Federal purchase of recreational lands and the conservation of
natural resources such as national parks and endangered species of
wildlife.
Appropriations for the land and water conservation fund are recommended at a record level of $725 million in budget authority in 1979.
This will provide—
• $370 million for matching grants to States. Under the national
heritage program, for which $64 million is earmarked, land acquisition for preservation purposes will become an additional eligible
use of these grant funds.
• $347 million for the acquisition of land for parks, wildlife refuges,
and recreation areas by four Federal agencies: the National Park
Service, the Forest Service, the Fish and Wildlife Service, and the
Bureau of Land Management. This will practically eliminate the
backlog of land acquisition at those areas specifically authorized
by the Congress for purchase.
• $8 million for administering the fund.
Operation of recreation resources.—Under this program diverse activities are conducted necessary to the operation of the national park
and wildlife refuge systems, namely providing facilities and services
for visitors and managing the natural resources within these areas. In
addition, these activities encompass grants, research, and technical
assistance in the subjects of recreation, fish and wildlife, and historic
preservation. Outlays are estimated to increase to $980 million in
1979 from $670 million in 1977, and $851 million in 1978.
MEETING NATIONAL NEEDS
127
The administration has proposed more than doubling the nationwide acreage set aside for national parks and wildlife refuges through
the designation of 92 million acres in Alaska, which are of outstanding
scenic value and importance to the preservation of wildlife. Some of
these areas are proposed to be preserved to retain their wilderness
characteristics. Other areas are proposed for designation as wild and
scenic rivers.
The bicentennial land heritage program provides funds for the
operation, construction, and rehabilitation of facilities at national parks
and wildlife refuges. This program will be in its third year in 1979, but
at a somewhat lower level of construction than earlier planned. This
reduction reflects the concern that over-development will adversely
affect the character of our national parks and wildlife refuges.
Budget authority of $45 million for the historic preservation fund
is recommended in 1979 as part of the new national heritage program.
This fund is used for grants to States.
The Fish and Wildlife Service's mission is to manage wildlife refuges,
comprising 34 million acres, operate 89 fish hatcheries, conduct research on fish and wildlife, administer a program to protect endangered
species, and provide grants to States to assist them in managing fish
and wildlife. Legislation is proposed to increase the price of migratory
bird conservation stamps; the receipts are used to acquire migratory
bird habitat.
The National Park Service develops, operates, and maintains the
National Park System, comprising 294 areas totaling about 31 million
acres. Total visits to these areas are expected to increase by about
4% to 283 million in 1979. The budget provides operating funds to
keep pace with expected increases in workload at the parks.
Other natural resources.—These activities are primarily directed at
increasing understanding of the atmosphere, and the Earth's structure
and environment. To accomplish this mission, the Geological Survey,
the National Oceanic and Atmospheric Administration, and the
Bureau of Mines operate a wide range of activities.
The Geological Survey conducts national geologic and mineral
resources surveys, including the identification of geologic hazards, such
as earthquakes; water resources investigations; and topographic surveys and mapping. It also supervises Federal mineral leases and the
exploration for petroleum resources in the national petroleum reserve in Alaska; funds for the latter program are included in the
energy function. Outlays for the lesource programs of the Geological
Survey are estimated at $394 million in 1979, increasing from $302
million in 1977 and $373 million in 1978.
Increased levels of funding in 1979 are recommended for oil and
natural gas lease sales on the Outer Continental Shelf, studies related
128
THE BUDGET FOR FISCAL YEAR
1979
to the safe disposal of radioactive wastes, and analyses of regional
underground resources of water.
The National Oceanic and Atmospheric Administration conducts
marine- and atmosphere-related research and environmental monitoring; produces maps and charts for navigation; manages our fisheries
resources; protects marine mammals and endangered species; and
operates a national system to monitor and predict weather conditions.
An increase in budget authority from $627 million in 1978 to $661
million in 1979 is proposed for the operations of this agency. I n 1979
it plans to undertake major studies to determine the effects of pollutants, including oilspills, on the marine ecosystem; expand its
efforts to manage fisheries within the recently established 200-mile
zone; expand efforts to protect endangered species; and improve
weather warning and forecasting services.
Expanded interagency climate program efforts are proposed with
the National Oceanic and Atmospheric Administration as the lead
agency. Total budget authority requested for the Federal climate
program across various agencies is $104 million, an increase of $28
million over 1978. The objective of this program is to develop the
ability to understand and anticipate seasonal and long-range climatic
fluctuations so that the Nation can better prepare for the effects of
climatic anomalies.
The Bureau of Mines conducts research and administers various
programs to develop and conserve the Nation's mineral resources and
to diminish the adverse effects of mining on the environment. Outlays
for these programs are estimated to be $128 million in 1979.
Credit programs.—Loans
and grants are made to State and local
organizations for the construction and rehabilitation of small water
resource projects. Loans are also made for the construction of irrigation, municipal, and industrial water distribution systems, which
utilize water from Federal reclamation projects. Drought emergency
loans made in 1977 and 1978 are not anticipated in 1979.
CREDIT PROGRAMS-NATURAL RESOURCES AND ENVIRONMENT
(In millions of dollars]
Program
1977
actual
1978
estimate
1979
estimate
Bureau of Reclamation loan program and other:
Direct loans:
New loans Repayments, sales and adjustments (—)
Net credit outlays
29
-3
56
-4
21
-4
26
52
16
MEETING NATIONAL NEEDS
129
AGRICULTURE
National Needs Statement:
• Assure sufficient agricultural production to meet domestic
Deeds and to capture a fair share of growth in export
markets through a healthy and efficient agriculture.
• Provide an adequate return to farmers based on the cost
of production.
• Dampen fluctuations in food prices.
• Provide further capability to increase farm returns and
output through expanded research and assistance to
farmers in putting the knowledge gained through research
to work.
• Improve health through human nutrition and food safety.
• Improve the efficiency and reliability of domestic and
export agricultural marketing systems.
To help fulfill national needs in agriculture in 1979, the Federal
Government will spend an estimated $5.4 billion in support of the
following missions :
• Farm income stabilization: $4.2 billion.
• Agricultural Research and Services: $1.3 billion.
The major missions are carried out through the agency programs
shown in the table on the following page. The recently passed omnibus
Food and Agricultural Act of 1977 has set the stage for many agriculture programs for the next 4 years, particularly price support and
research programs.
Farm income stabilization.—This mission is the major Federal
involvement in the agricultural sector.
During the last 2 years, the supply-demand situation for the major
crops has been reversed. Shortages have been eliminated and excessive
supplies are once again burdening markets. To deal with this situation,
the administration has adopted a supply management policy that will
allow us to store agricultural surpluses for future use while attempting
to bring production in future years into better balance with demand.
The budget for this mission has increased substantially in 1978 and
1979 over earlier years because of declining prices for many of the
extensively grown farm products and administrative and legislative
actions to offset the adverse consequences of those declines on net
farm income. The Federal Government is committed to support the
prices to producers of major crops at levels based on the average cost
130
THE BUDGET FOR FISCAL YEAR 1979
NATIONAL NEED: IMPROVED AGRICULTURE
[Functional code 350; in millions of dollars]
Recommended
budget
authority
for 1979
Major missions and programs
Outlays
1977
actual
1978
1979
1980
estimate estimate estimate
Farm income stabilization:
Price support and related programs
Proposed legislation
Federal Crop Insurance Corporation
Agriculture credit insurance fund..,_ _
Other programs
Unallocated salaries and expenses
5,022
478
Subtotal, farm income stabilization
3,809
7,299
4,276
11
-388
42
224
3,212
20
218
47
223
12
144
37
228
91
393
31
160
122
183
38
223
5.920
4,485
7.865
4.180
3,7/9
530
262
415
240
498
268
511
263
487
262
74
2
222
133
54
72
-59
—7
95
_
192
105
11
45
-51
72
220
125
52
64
-55
_
74
1
219
133
54
71
-59
—7
74
/
256
135
57
71
-59
—10
1,282
1,052
1,244
1,259
1J72
Agricultural research and services:
Research programs
Extension programs
._
Marketing programs—
_
Proposed legislation
Animal and plant health programs
Economic intelligence
Other programs
_._
Unallocated overhead
Offsetting receipts.
Proposed legislation
_
Subtotal, agricultural research and services
Deductions for offsetting receipts
Total....
-
—6
— 11
7,197
5,526
—3
9,106
—6
5,433
—6
4,985
of production. In addition, grain reserves are being established in
1978. However, 1979 outlays will be lower than 1978 by $3.7 billion.
Price supports,—Price support operations are conducted by the
Commodity Credit Corporation. Total outlays for price support and
related programs are estimated to rise from $3.8 billion in 1977 to $7.3
billion in 1978 due to the factors previously described. However,
acreage set-asides established for 1978 crops of wheat and feed grains
and completion of grain reserve acquisition in 1978 are expected to
result in sharply lower outlays in 1979 of $4.3 billion. Since agricultural
production is largely determined by weather, the outlay estimates for
1979 and 1980 carry a large element of conjecture. These estimates
assume normal weather, here and abroad, which usually results in an
abundance of farm products. In the absence of acreage set-asides,
131
MEETING NATIONAL NEEDS
COMMODITY CREDIT CORPORATION OUTLAYS
[In millions of dollars]
1977
actual
Function and program
T978
estimate
1979
estimate
1980
estimate
Agriculture:
Price support and related programs:
Commodity loans
_
Commodity purchases
._..
Direct payments
Grain reserve and reseal storage payments.
Short-term export credit sales
_.._
Interest expenditures
Other price support operations
Receipts and adjustments
3,464
974
594
_
_
Subtotal, price support and related programs...
Other activities
_._.
Subtotal
755
106
364
—2,448
6.116
1,615
2,421
182
1,700
348
442
-5,525
4,525
958
1,956
278
1,500
777
408
-6,126
3,926
868
2,330
306
1,250
905
417
-6,790
3,809
7,299
4,276
3,212
10
84
-11
43
3,820
7.383
4,265
3,255
1,258
408
1,386
318
1,413
344
U550
361
850
1.068
1.069
1,189
8,451
5,334
4,444
International affairs:
Food for Peace:
Gross outlays
Receipts and reimbursements
Subtotal....
Total Commodity Credit Corporation outlays...
4,670
normal weather would result in substantially higher outlays for income
stabilization programs.
An important element of the administration's food and agricultural
policy is the establishment of food reserves as a hedge against crop
failure here and abroad. Two reserves are being created: a farmer-held
grain reserve and an international emergency wheat reserve. Having
these reserves on hand will help to dampen price fluctuations.
Agricultural credit insurance fund.—Agricultural loans, including
emergency loans from the agricultural credit insurance fund, increased
sharply in 1977 when more than two-thirds of the counties in the
United States were declared eligible for emergency financial assistance
because of adverse weather conditions. The impacts of such loans will
continue during much of 1978. Loan volume is expected to decline
from $2.4 billion in 1977 and $2.9 billion in 1978 to $2.1 billion in 1979
because of more normal weather and the expiration of the emergency
livestock loan guarantee program. Currently, the Small Business
Administration also provides loans for such crop losses. In order to
avoid overlap with loan programs of the Farmers Home Administra-
132
THE BUDGET FOR FISCAL YEAR 1979
CREDIT PROGRAMS-AGRICULTURE
[In millions of dollars]
Program
Price support and related commodity loans:
Direct loans:
New loans
Repayments, sales and adjustments ( - )
___
Net credit outlays
Agricultural and emergency credit programs and other:
Direct loans:
New loans
Repayments, sales and adjustments ( - ) l
Net credit outlays
Guaranteed loans:2
New loans
Net credit guaranteed
1
2
_
1977
actual
1978
estimate
1979
estimate
4,376
-1,751
7,935
-4,963
6,018
-5,220
2,626
2,972
797
2,549
-2,322
3,054
-3,063
2,601
—3,233
227
-10
-632
1,733
984
2.342
1,542
2.103
1.219
Includes sale of loan assets.
Includes loans counted as direct loans of other accounts.
tion, the 1979 budget reflects a proposal to delete farm lending assistance under the Small Business Act.
Crop insurance.—Farmers are offered insurance against crop losses
from natural hazards by the Federal Crop Insurance Corporation.
Federal crop insurance is available in selected counties for selected
crops to cover the farmers' variable production costs. Indemnity
payments are estimated to total $168 million in 1978 and $98 million in
1979. In addition, the CCC provides disaster payments partially to
offset reductions in income from supported crops due to adverse
weather conditions. Outlays for these disaster payments are estimated
to be $522 million in 1978 and $357 million in 1979. The administration
is currently reviewing its disaster aid programs for farmers, including
emergency loans (estimated at $1.2 billion in 1978 and $578 million in
1979) financed by the agricultural credit insurance fund. The administration is considering recommendations for eventually replacing
certain disaster aid programs with insurance programs to meet needs
for protection from losses from natural disasters.
Agricultural research and services.—This mission is to improve
production and marketing efficiency through better technology. It
also provides information on agricultural markets, at home and abroad,
controls and suppresses plant and animal pests and diseases, and regulates the marketing of farm products.
133
MEETING NATIONAL NEEDS
Research and extension.—Research
helps increase agricultural
productivity resulting in more abundant domestic supplies, a large
volume of competitively priced exports, and more nutritious food
products. Proposed outlays of $774 million are recommended for
agricultural research and extension services in 1979, about the same
level as in 1978. Budget authority of $35 million will be redirected,
principally from marketing and tobacco research, formula grants, and
construction. This permits proposals for increases in nutrition ($14
million), conservation and natural resources ($3 million), small farm
and integrated pest management research ($5 million), and basic plant
research ($9 million).
Emphasis will be placed on carrying out needed research through
competitive grants and contracts with non-Federal organizations.
The advantages of extramural research include: more options in research resources, a broader range of scientific skills that can be tapped
and a substantial reduction in the administrative burden and in the
number of Federal employees.
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 t h a t could result in severe losses in
yields or in the output of livestock products. Estimated outlays for
these services in 1979 total $219 million, about the same as in 1978.
Tax expenditures.—The
use of cash rather than accrual accounting, and the treatment of certain farm income as capital gains results
in tax expenditures estimated to be $0.9 billion in 1979 under
current law. Tax reform proposals include requiring certain farm
corporations to use accrual accounting in order to prevent tax shelter
abuse.
Related programs.—Several
programs t h a t fulfill other national
needs complement the programs in agriculture. The most important
of these programs is the food for peace program which is discussed
in the international affairs section.
FEDERAL PROGRAMS THAT SUPPORT THE AGRICULTURAL MISSIONS
[Outlays in millions of dollars]
Program title
Disaster relief and insurance
Conservation and land management
Food for peace (Public Law 480)
Food safety (Food and Drug Administration)
Primary
function
in budget
450
300
150
550
1977
actual
634
468
850
245
1978
estimate
1,686
685
1,068
283
1979
estimate
1,007
432
1,069
298
134
THE BUDGET FOR FISCAL YEAR 1979
COMMERCE AND HOUSING CREDIT
National Needs
Statement:
• Ensure that an adequate supply of mortgage credit is
available nationally.
• Target credit to urban and rural areas not well served
by private credit markets.
• Encourage the return of middle-income families to central
cities in order to aid urban revitalization efforts.
• Maintain effective mail service at reasonable rates with
costs largely borne by postal customers.
• Provide oversight of and assistance to businesses to
encourage the development of jobs and a sound economy.
The following missions and programs are designed to meet the
commerce and housing credit national needs and foster sound credit
policies that encourage and enable homeowner ship, which helps to
revitalize distressed urban and rural areas. The most important
actions that the Federal Government can take to encourage commerce
and housing production are to pursue fiscal and monetary policies
that support continued growth in real incomes, business investment,
and mortgage credit. The availability of credit at reasonable interest
rates is particularly important to potential homebuyers and business
investment. A balanced expansionary economic policy should provide
an adequate supply of funds for both business investment and mortgage credit.
In addition to attempting to achieve a balanced expansionary economic policy, the Federal Government also undertakes the following
major missions to help achieve our national needs for the development
of commerce and housing credit:
• Mortgage credit and thrift insurance: for 1979, offsetting receipts
are expected to exceed gross outlays, resulting in net outlays of
—$0.3 billion.
• Postal Service: $1.8 billion in outlays estimated for 1979.
• Other advancement and regulation of commerce: $1.4 billion in
outlays estimated for 1979.
The goal of the administration's policy in the credit area is to
ensure that credit is available in areas not well served by the private
market, such as declining central cities and rural areas. Federal
incentives will be provided to induce the private market to increase
the amount of credit available in these areas. Where this is not sufficient, Federal credit will be provided. Direct housing assistance
programs are discussed in the section on Income Security.
MEETING NATIONAL NEEDS
135
Numerous Federal programs in this functional area also contribute
to the general support of business and to the maintenance of a free
flow of commerce. In addition to increasing assistance to small businesses, the administration's efforts in 1979 will be directed toward
improving statistical information and promoting the maintenance of
basic scientific and engineering capabilities.
To help to carry out these missions, the following proposals are
emphasized in the 1979 budget:
• $2.0 billion of mortgage purchase authority to provide interest
subsidies that will support the construction of multifamily
housing in distressed urban areas.
• Targeting of rural housing programs to lower income residents,
including a proposed special homeownership assistance program.
• An expansion of guaranteed loan assistance to small business,
with new commitments of $3.3 billion in 1979.
• Intensified efforts to encourage volunteer and other management
assistance to promote small business development, with emphasis
on minority and women business owners.
These major missions are supported by the programs shown in the
table on the following page.
Mortgage credit and thrift insurance.—Federal housing policy
continues to focus on the basic goal of providing a decent home in a
suitable living environment for every American family. Federal housing programs carry out this goal by:
• ensuring an adequate supply of mortgage credit;
• increasing the stock of housing through new construction and
rehabilitation programs; and
• providing explicit subsidies primarily for low- and moderateincome households.
Most of these subsidy programs are discussed in the income security
section.
Mortgage credit programs are aimed at increasing the supply of
credit for housing. Mortgage insurance, guaranteed and direct loans,
and secondary mortgage market activities support the smooth operation of private mortgage credit markets and supplement those markets, particularly in rural and central-city areas. By making credit
available at affordable interest rates, Federal credit policies stimulate
the demand for, and, therefore, the production of, housing. During
1978, the administration will undertake a study of the Nation's
existing housing and credit policy needs and the criteria used to measure the need for increases in housing stock and credit.
In January 1978, the Secretary of Housing and Urban Development (HUD) authorized the Government National Mortgage Association
136
THE BUDGET FOR FISCAL YEAR 1979
NATIONAL NEED: PROMOTION OF COMMERCE AND HOUSING CREDIT
[Functional code 370; in millions of dollars]
Major missions and programs
Recommended
budget
authority
for 1979
Mortgage credit and thrift insurance:
Department of Housing and Urban Development:
Mortgage purchase activities (GNMA)...
Mortgage credit (FHA)
Housing for the elderly and handicapped...
Department of Agriculture—rural housing
programs
Proposed legislation.._
_
Federal Deposit Insurance Corporation
Federal Home Loan Bank Board and other. _
Subtotal, mortgage credit and thrift insurance
Postal Service
Outlays
1977
actual
1,507-1,082
451
492
800
4
442
6
1978
1979
1980
estimate estimate estimate
39
407
335
333
221
713
1,237
83
729
100
455
-99
650
6
20
- 9 4 5 —1,075
-503
-542
-852
-1,933
-379
-390
3,206 -3,270
467
-274
1,102
1,830 • 2,267
1,787
1,830
1,585
Other advancement and regulation of commerce:
Small business assistance. —
Technology utilization...
Economic and demographic statistics
Other
_
637
222
310
394
516
175
102
326
547
191
141
393
543
212
275
386
553
222
635
402
Subtotal, other advancement and regulation of commerce
1,564
1,118
1,272
1,415
1,812
__
-143
Federal Financing Bank__.
Deductions for offsetting receipts
Total
_
_.
-3
-4
-4
-3
—3
6,597
-31
3,523
2,969
4,497
15,865
-173
8,201
815
10,567
-1
12,510
1,126
7,000
ADDENDUM
Off-budget Federal entities:
Postal Service
Federal Financing Bank
(GNMA) to make commitments to buy $2.0 billion in mortgages
under tandem programs for subsidized section 8 mortgages and under
a new administration initiative—the "targeted tandem" program.
Under the program for section 8, tandem interest subsidies will be
provided in addition to section 8 rent subsidies to ensure financing for
these projects. Under the "targeted tandem" program, interest subsi-
MEETING NATIONAL NEEDS
137
dies will be provided to encourage the construction of moderate- and
middle-income rental housing in distressed areas of central cities. The
budget proposes an additional $2.0 billion of commitments in 1979.
The 2-year total of $4.0 billion of commitments will facilitate the development of an estimated 135,000 units of new multifamily housing
bearing interest rates below prevailing market rates. Mortgages
purchased under these programs will be resold as market conditions
permit, with GNMA absorbing the loss. Net outlays for GNMA's
credit activities, including losses on mortgage purchases, are
estimated to be $39 million in 1978 and $3*33 million in 1979.
The Federal Housing Administration's (FHA's) mortgage and loan
insurance programs provide assistance for families who are able to
fulfill the obligations of a mortgage loan but who are not adequately
served by the private market. Recently enacted legislation decreased
the downpayment requirements and increased the mortgage limitations to bring homeownership within the reach of a larger number of
families. Insurance for mortgages with graduated payment schedules,
which require lower initial monthly payments, will be made on an
accelerated basis to assist young, first-time homebuyers.
Heavy default rates experienced under some mortgage insurance
programs contributed to large increases in the FHA inventory of
assigned mortgages and acquired properties in the early 1970's.
Improved economic conditions, better underwriting, and the use of
rental assistance and rent supplement funds resulted in a decrease
in the growth of the inventory in 1977 and will also help to stem
new additions to the inventory in 1978. Further decreases are expected in future years as economic conditions improve. The administration has proposed a major new operating subsidy program for 1979.
This new program, coupled with improved management controls and
the monitoring of troubled projects, is intended to reduce the inventory of defaulted projects and aid in the stabilization and revitalization of distressed urban areas. Outlays for this program, which is
classified in the income security function, are estimated to total
$52 million in 1979. Outlays for FHA mortgage credit activities are
estimated to decline from $407 million in 1978 to $221 million in 1979.
In addition to supporting private market mortgage financing with
FHA insurance, HUD provides direct loans to finance housing projects
for elderly or handicapped persons (under the section 202 program).
The 1979 budget provides for $800 million, an increase of $50 million
over 1978, in new loan commitments and an increased emphasis on
housing for the handicapped. Outlays for this program are estimated
to be $335 million in 1978 and $713 million in 1979.
The Farmers Home Administration (FmHA) of the Department of
Agriculture provides direct and guaranteed loan housing assistance to
low- and moderate-income families in rural communities of less than
138
THE BUDGET FOR FISCAL YEAR 1979
20,000 population, and grants for farm labor housing and self-help
housing. In addition, a rural rental assistance program to assist the
tenants of FmHA-financed housing was established last year. A
related program of grants to repair and rehabilitate inadequate singlefamily housing is classified in the income security function.
As a result of a major rural housing study, the 1979 budget proposes
to increase substantially housing assistance to families with the lowest
incomes, while holding assistance to other income classes close to current levels. Legislation will be proposed to authorize a special homeownership assistance program to assist very low-income families in
those cases where ownership is more cost effective than other FmHA
very low-income housing assistance programs. The proposed legislation will also provide for a Federal subsidy recovery program, where
partial or total recovery of Federal subsidies will occur at the time a
family sells its house, and the proceeds of the sale are at least large
enough to repay the principal and interest on the mortgage, sales
commission, and borrower relocation costs, and to provide an incentive payment to the borrower.
The budget proposes $3.6 billion in new direct loans and $79
million in budget authority for grants during 1979. These totals represent increases of more than $200 million in insured loans and $57
million in grants over 1978 levels. They will provide assistance for
about 165,000 rural housing units, one-half of which are occupied by
families with annual incomes of less than $8,000. About 83% of the
total number of assisted units will receive either interest subsidies or
grant assistance, and approximately 20,000 of the subsidized units
will also receive rural rental assistance payments. Special attention
will be given to assisting low-income families who occupy inadequate
housing.
Outlays for FmHA housing programs in this function are estimated
to be $455 million in 1978. Asset sales, which are an offset to outlays
are expected to exceed the total amount of loans made in 1979. As a
result, outlays are expected to be —$99 million in 1979.
The Federal Deposit Insurance Corporation (FDIC) protects bank
depositors and fosters sound banking practices. Receipts are expected to exceed outlays by $0.9 billion in 1979.
Two important tax expenditures that aid homeowners are the
deductions of interest on home mortgages and of local real estate
taxes. These provisions are estimated to reduce tax receipts by $7.7
billion in 1979.
Postal Service.—The 1970 Postal Reorganization Act established
the U.S. Postal Service as an independent Government-owned corporation. Outlays for the general operations of the Postal Service are
MEETING NATIONAL NEEDS
139
excluded from Federal budget totals, with the exception of Federal
subsidy payments. These payments, estimated to be $1.8 billion in
1979, cover liabilities of the former Post Office Department for earned
and unused annual leave and for compensation to disabled employees,
public service costs, and revenue foregone for carrying certain classes
of mail at free and reduced rates. The recommended revenue foregone
subsidy for 1979 follows the schedule that was established in the 1970
act and also the extension of that schedule as authorized by Public
Law 93-328 for transition to full-cost rates for certain second-, third-,
and fourth-class mail.
The budget also includes a supplemental appropriation request for
1978 of $92 million. This includes $91 million for covering the cost of
revenue foregone increases due to rate changes proposed to become
effective June 1, 1978, and $1 million for reimbursement to the
Postal Service for prior expenses incurred by the Commission on
Postal Service. Total outlays are estimated to increase by $42 million
to $1.8 billion in 1979. This increase reflects the impact of the proposed
postal rate increase on the subsidy for revenue foregone for carrying
mail at reduced rates. The total request for 1979 continues the existing
policy that postal costs should be borne largely by mail users and not
the general taxpayer. The off-budget outlays of the U.S. Postal
Service reflect the net difference between gross expenditures and grpss
receipts.
Other advancement and regulation of commerce.—Many Federal programs provide technical assistance to and promote the development of new businesses. Other programs provide oversight of the
economy and business community to assure fair and equal practices
and opportunities.
Net outlays for assistance to small business are estimated to total
$0.5 billion for 1978 and 1979. The budget request for the Small
Business Administration (SBA) provides for $3.3 billion of new commitments for guaranteed loans—an increase of $350 million over
1978 levels. This expansion will be accompanied by efforts to make
the secondary market for the sale of SBA guaranteed loans more
attractive to private investors. Such action will help tap new sources
of funds to meet the growing financial needs of the Nation's small
businesses. The SBA also expects to increase the number of volunteers
in the service corps of retired executives (SCORE) from the current
level of 7,500 to 12,500 volunteers by 1979. Budget outlays are estimated to increase from $127 million in 1978 to $257 million in 1979
for the Bureau of Census. These resources will be used primarily to
carry out the surveys of registration and voting required by the
Voting Rights Act following the 1978 congressional elections, and to
140
THE BUDGET FOR FISCAL YEAR 1970
enable the Census Bureau to complete preparations for the 1980
decennial census. Emphasis will be placed on the evaluation and the
adoption of new techniques aimed at improving the completeness of
the population count, particularly among minority groups, where the
census has tended to undercount.
The 1979 budget requests funding to assure the maintenance of
basic scientific and engineering competency at the National Bureau of
Standards. In addition, funds are being requested to study the feasibility of establishing a cooperative technology program to assist in
advancing the technological level of certain U.S. industries.
Tax expenditures.—The largest tax expenditure broadly related to
business activity stems from preferential tax treatment of net longterm capital gains. A tax expenditure of $18.5 billion in 1979 has been
estimated on the basis of current law. The combined effect of reduced
tax rates plus the reform proposals to repeal the alternative tax on
capital gains for individuals (25% on $50,000 of capital gains) and
increase the minimum tax will reduce this tax expenditure to $15.9
billion.
Under current law the tax expenditure for the 10% tax credit for
investment in equipment would be $15.0 billion in 1979. The President
has proposed a permanent extension of the 10% rate and an extension
of the credit to investments in industrial and utility structures. The
portion of tax liabilities that can be offset by this credit would be 90%,
rather than the 50% that generally applies under current law. The
resulting tax expenditure for 1979 will be $17.1 billion.
Accelerated methods of depreciation for buildings would result in a
tax expenditure of $605 million in 1979 under current law. The tax
reform proposals would reduce this tax expenditure to $560 million.
The use of shortened periods of time for the depreciation of equipment under the asset depreciation range system produces a tax
expenditure of $2.7 billion in 1979. The deductibility of interest on
consumer credit generates a $1.8 billion tax expenditure in 1979.
Reduced rates of tax on the first $50,000 of corporate income assist
all corporations; the small corporation is especially aided since the
profits covered by the tax expenditure provision is a higher proportion
of total profits than is the case with larger corporations. Estimated
revenue losses to the Government, under current law, are $3.5 billion
in 1979. The President has proposed that the tax rate on the first
$50,000 of corporate income be reduced further from 20% to 18% on
the first $25,000 and from 22% to 20% on the second $25,000. The
related tax expenditure would increase to $4.2 billion in 1979.
Federal Financing Bank.—The Federal Financing Bank (FFB)
provides for coordinated and more efficient financing of Federal and
MEETING NATIONAL NEEDS
141
federally assisted borrowing from the public. The F F B acquires the
direct debt of Federal agencies, the debt of Government-guaranteed
borrowers, and the loan assets of Federal agencies. This consolidation
of financing has reduced Federal interest costs in some programs and
has provided for more orderly market conditions.
At the end of 1977, F F B holdings totaled $35.4 billion. These
holdings are estimated to total $65.1 billion at the end of 1979.
Further discussion of the F F B is contained in Part 6 and Special
Analyses E and F in the Special Analyses volume of the budget.
In 1977, the F F B returned to the Treasury earnings totaling $143
million. These funds were determined to be in excess of administrative
requirements.
CREDIT PROGRAMS-COMMERCE AND HOUSING CREDIT
[In millions of dollars)
Program
Mortgage purchase activity (GNMA):
Direct loans:
New loans
Repayments, sales, and adjustments ( - ) *
Net credit outlays
Guaranteed loans:2
New loans...
Net credit guaranteed
Mortgage credit (FHA):
Direct loans:
New loans
Repayments, sales, and adjustments (—) l
Net credit outlays
Guaranteed loans: 2
New loans
Net credit guaranteed
Housing for the elderly and handicapped:
Direct loans:
New loans
Replacements, sales, and adjustments(—)*
Net credit outlays
See footnotes at end of table.
260-000 O - 78 - 10
_
1977
actual
1^78
estimate
1979
estimate
937
-2,389
1,666
-1,959
2.456
-2,603
-1,452
-293
-147
17,019
14,238
16.000
12,068
15,500
9,900
319
—222
365
—318
294
—241
97
46
53
12,929
4,864
13,384
4,732
18,231
7,479
21
—6
355
—8
733
—8
15
347
725
142
THE BUDGET FOR FISCAL YEAR 1979
CREDIT PROGRAMS-COMMERCE AND HOUSING CREDIT—Continued
[In millions of dollars]
Program
1977
Rural housing programs:
Direct loans:
New loans
_
Repayments, sales, and adjustments (—)
Net credit outlays
Guaranteed loans: 3
New loans...
Net credit guaranteed
Small Business assistance:
Direct loans:
New loans
Repayments, sales, and adjustments (—)*.
Net credit outlays..
Guaranteed loans: 2
New loans
_.
Net credit guaranteed....
_
Other business assistance:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
Net credit outlays
Guaranteed loans:
New loans
Net credit guaranteed...
Off-budget Federal entity—Federal Financing Bank:
Direct loans:
New loans
—
Repayments, sales, and adjustments ( - )
Net credit outlays
* Includes sale of loan assets.
Includes loans counted as direct loans of other accounts.
3
1978
1979
3.825
-3,998
4.732
-4.760
4,656
-5,278
-173
-29
-621
3,359
1,774
3,924
2.465
4,235
2.971
465
—352
469
—309
514
—316
113
160
198
2,076
684
2.530
1,076
2,913
1.245
10
— 1,539
46
— 12
31
—25
-1.529
33
7
23
-68
36
-35
47
35
12,379
-4,292
15,626
-4,956
16,158
-3.559
8,087
10,670
12.600
MEETING NATIONAL NEEDS
143
TRANSPORTATION
National Needs
Statement:
• Assure development of the Nation's transportation
system to meet the needs of commerce and the public.
• Promote safe, reliable, and efficient operation of that
system.
• Ensure that transportation programs help meet the
Nation's energy, environmental, and social goals.
The objective of Federal transportation policy is to promote a safe,
efficient, and responsive system wherein the user pays, to the extent
possible, for the benefits received. Of equal importance is the administration's goal of reducing and, where possible, eliminating unneeded
government regulations that maintain high fares and stifle competition, creative management, and efficiency in the private sector. The
thrust of the new legislative proposals will be to simplify many transportation programs and provide State and local governments greater
flexibility in setting priorities and carrying out programs.
To address national needs in transportation in 1979, the Federal
Government will spend an estimated $17.4 billion in support of the
following missions:
• Ground transportation: $12.0 billion.
• Air transportation: $3.4 billion.
• Water transportation: $1.9 billion.
• Other transportation: $0.1 billion.
The budget reflects policies designed to serve these missions. The
major proposals include:
• new highway-transit legislation that consolidates 42 narrow categorical programs and gives State and local governments greater
flexibility in using Federal ground transportation funds;
• development of rail passenger service in the Northeast corridor
to emphasize increases in ridership and economic viability;
• reduced fares and improved carrier efficiency in the regulated
transportation industries with special focus on airlines and trucks;
• increased general aviation safety through an automated aviation
weather and navigation information system;
• upgraded marine safety, environmental, and enforcement activities by the Coast Guard; and
• waterway user charge legislation.
144
THE BUDGET FOR FISCAL YEAR 1979
NATIONAL NEED: TRANSPORTATION SYSTEMS
[Functional code 400: in millions of dollars]
Major missions and programs
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
1979
1980
estimate estimate estimate
Ground transportation:
Highway improvement and construction
Proposed legislation
Highway and traffic safety
Proposed legislation
__
___
Mass transit
_
Proposed legislation
_
Railroads
Proposed legislation
_
Regulation
55
6,850
258
950
19
2,865
2.015
-279
69
5,719
6,461
583
638
2,000
2,180
1,676
1,796
349
16,545
246
645
61
2,250
1,825
301
6,763
257
837
25
2,525
1,916
59
64
69
69
12,803
10,037
11,140
11,990
12,693
Airways and airports
Proposed legislation
Aeronautical research and technology.
Air carrier subsidies
Regulation
3,094
2,369
2,753
2,877
415
77
24
-3
466
69
27
3,072
-4
509
63
27
Subtotal, air transportation.
3,709
2,816
3,269
3,436
3,667
1,494
1,149
1,350
1,403
1,465
Subtotal, ground transportation
Air transportation:
-3
522
69
27
344
23
Water transportation:
Marine safety and transportation.
Ocean shipping!
Regulation
Subtotal, water transportation.
Other transportation
Deductions for offsetting receipts
Total
537
11
591
8
546
10
532
10
604
//
2,080
2,042
1,749
1,906
1,946
86
76
82
93
86
-66
-42
-86
-66
-67
18,573
14,636
16,310
17,399
18,459
23
219
97
23
-50
ADDENDUM
Off-budget Federal entity:
U.S. Railway Association
1
Excludes $950^ million in highway safety programs which are accounted for in the "Highway
and traffic safety" category.
Ground transportation.—The budget proposes outlays of $12.0
billion in 1979 to support the Nation's vast network of highways, railroads, and mass transit services in a safe, reliable, and efficient manner.
MEETING NATIONAL NEEDS
145
Highway improvement and construction.—Outlays for Federal highway programs are estimated to increase from $6.5 billion in 1978 to
$6.9 billion in 1979. This increase is primarily the consequence of rising
obligations for Federal-aid to highways in the 1976-79 period—from
$4.5 billion in 1976, to $7.0 billion in 1977 and to an estimated $7.6
billion in 1978 and $7.8 billion in 1979.
The administration is proposing legislation extending the authorizations for highway and mass transit programs. The legislation will:
• reduce the number of categorical programs that limit the flexibility of States and localities in the use of Federal transportation
funds;
• narrow the differences between the operation of highway and
transit programs, allowing States and localities to evaluate the
relative merits of these alternative forms of transportation;
• adopt uniform Federal matching shares for highway and transit
assistance: 90% for all Interstate projects and highway and
transit projects substituted for withdrawn Interstate segments,
and 80% for all other highway and transit projects;
• provide flexible assistance for the transportation needs of small
urban and rural areas;
• accelerate completion of the Interstate Highway System by concentrating available resources on construction of essential unbuilt
segments and by requiring States to decide by 1982 either to
build uncompleted sections or to remove them from the system.
To meet these goals and to provide States and localities with longterm funding assurances, total authorizations of $45.4 billion ($32.1
billion for highways and $13.3 billion for mass transit) are requested
for a 4-year period beginning in 1979. Currently, States and localities
find it difficult to incorporate long-range planning for transportation
projects because most Federal highway assistance is authorized for
only 2 years. The new 4-year authorizations should help mitigate these
problems. However, ceilings on annual Federal-aid highway obligations will continue to be proposed, consistent with the proven ability
of States to utilize funds in an efficient manner.
Highway and traffic safety.—Outlays for these safety programs are
estimated to increase by 40% from 1978 to 1979. Two legislative
proposals will provide strong impetus to the Federal Government's
ground transportation safety efforts. The new highway and transit
legislation contains a proposal to consolidate 6 highway safety programs into one safety grant program; $500 million in budget authority
is requested for 1979. This bill also provides an increase in budget
authority—from $180 million in 1978 to $450 million in 1979—for
bridge replacement and rehabilitation. Amendments to the Highway
Safety Act of 1966 also will be proposed to provide additional budget
authority for safety programs that have a high potential payoff, for
146
THE BUDGET FOR FISCAL YEAR 19 79
example, those that encourage the enforcement of the 55-mile-perhour speed limit. Related to these safety efforts is administration of
mandatory and voluntary fuel economy programs which will reduce
the amount of petroleum used by motor vehicles.
Mass fransit.—Outlays for mass transit are estimated to increase
by more than 15% between 1977 and 1979—from $2.0 billion to $2.3
billion. Outlays are growing substantially in two areas: payments to
help defray local transit operating deficits, and construction of rail
transit projects made possible by the cancellation of unneeded Interstate highway projects in urban areas, particularly in Boston and
Washington, D.C.
The new highway and mass transit legislation proposes to change
Federal cost sharing formulas to provide a uniform 90% Federal
share for all highway and mass transit projects substituted for Interstate projects, and a uniform 80% Federal share for all other projects.
Most mass transit programs are currently funded at 80% by the
Federal Government. This includes transit projects funded from Interstate transfers, even though the Federal share for highway construction
would have been 90%. In addition, when transit projects are funded
from the urban system highway program, the Federal share is now only
70%. These funding differences have discouraged localities from using
urban highway funds and Interstate transfers for transit projects
because a greater share of local funds is necessary to complete transit
projects. The new bill should correct these inequities.
An additional step to improve Federal transit assistance is the
proposal to double the proportion of funding allocated by formula to
urbanized areas by shifting away from the discretionary allocation of
Federal funds. Previously, local governments had to apply for most
mass transit funds on a case-by-case basis, and there was little predictability on the level of Federal funds that would be available to each
metropolitan area. Under the administration's proposal, local governments should know how much they can expect during the next 4 years.
In addition, the legislation will propose consolidation of Federal highway and transit planning assistance programs into one program. Both
of these actions should facilitate transportation planning and reduce
paperwork and administrative costs for local jurisdictions.
In 1979, a new generation of mass transit buses—the Transbus—
will be put into production. These buses, developed by private enterprise to meet Federal standards, contain new features and improvements intended to make buses easier to use by elderly and handicapped
individuals. They also have the potential to reduce operating and
maintenance costs. Funds from mass transit programs will be available
to jurisdictions for purchase of these buses. An aggressive program of
cost and design control is planned to assure that the impact of these
improvements on the purchase price of buses will be only moderate.
MEETING NATIONAL NEEDS
147
Railroads.—Outlays for railroad programs are estimated to increase
from $1.7 billion in 1977 to $1.8 billion by 1979, including loans to the
Consolidated Rail Corporation (ConRail). By the end of 1979,
ConRail will have received an estimated $2.1 billion to help establish
a self-supporting freight rail system in the Northeast and Midwest.
The impact of this assistance is now under review by the Department
of Transportation (DOT) and the United States Railway Association,
an off-budget Federal entity that provides assistance to ConRail.
Reports to Congress on ConRail's financial condition will be completed
during 1978. In addition, about $1.1 billion in direct and guaranteed
loans will be available through 1979 for the rest of the rail freight
industry. This assistance was designed to be temporary. The longterm need for such assistance is currently being studied by DOT. These
studies should help identify the problems of the industry and the
appropriate Federal role, if any, in addressing these problems.
Assistance to rail passenger service takes the form of a subsidy to the
National Railroad Passenger Corporation (Amtrak). The 1979
request for Amtrak continues the standard for Federal assistance to
the Corporation established in 1978. Except for additions to reflect
increases in taxes and interest, the proposed operating subsidy for 1979
and subsequent years is being held to the same level as in 1978 rather
than being increased to meet Amtrak's operating deficit. It is expected
that Amtrak will be able to conduct its operations at the proposed
level by taking management actions such as route reductions. The
Department of Transportation, in cooperation with Amtrak, is
conducting a review of Amtrak's route system and will submit a report
to the Congress by March 1, 1978. The results of this study are
expected to influence the final subsidy level in 1979. Aid to rail passenger service is also provided by the Northeast corridor improvement
project. The budget proposes that $1.1 billion in outlays be provided
through 1979 to rehabilitate track and improve rail service in the
region. This investment aids the development of a rail system that
seeks to increase the number of riders, and that encourages efforts to
operate without financial loss.
Regulation.—Outlays for ground transportation regulation are
estimated at $69 million for 1979. The operation of railroads will be
allowed more flexibility as the carriers take advantage of the liberalized ratesetting provisions of recent legislation. In calendar year 1978,
the Interstate Commerce Commission is considering administrative
actions to reform the regulation of motor carriers. The administration
will continue to seek reduction of outmoded motor carrier rules and
regulations.
Air transportation.—To provide a safe and reliable air transportation system, the Federal Government will spend an estimated
$3.4 billion in 1979.
148
THE BUDGET FOR FISCAL YEAR 19 79
Airways and airports.—The budget requests additional air traffic
controllers to provide safe, effective handling of projected air traffic
activity. Management efficiencies by the Federal Aviation Administration, in areas other than air traffic control, will allow continuation
of present service levels with some minor staffing reductions, particularly in administrative overhead.
The budget includes full funding of the program to modernize and
streamline flight service stations which will provide improved aviation
weather information and navigation services to general aviation
aircraft. The budget also requests full funding of the 1979 authorization for airport grants to insure the continued development of the
Nation's airport system.
Aeronautical research and technology.—The Federal Government
supports basic aeronautics research and technology advancement to
meet national needs for more efficient, higher performance and
environmentally acceptable aircraft. The National Aeronautics and
Space Administration conducts research in those areas that cannot be
supported adequately by private industry because of long leadtimes
or high technical risk. The 1979 budget includes $466 million in outlays
for aeronautical research and technology. Priority will be given to
' seeking advances in aircraft technologies to reduce fuel consumption
by civilian and military air transports. In addition, increased emphasis will be given to long-term basic research to maintain a sound
technology base for future aircraft improvements.
Regulation.—The Civil Aeronautics Board regulates the aviation
industry by making awards of operating authority for specific routes
and reviewing the fares and rates to be charged. The President's
commitment to increased competition and lower fares and rates has
contributed to reform of aircargo regulation and has led to substantial reductions in prices for cargo and passengers on international
routes. The administration is committed to the goal of domestic aviation regulatory reform, and expects passage of a reform bill in calendar
year 1978. In the interim, the Board is continuing to reform its
existing regulations to increase competition among air carriers.
Extensive management efforts are also underway at the Board to
improve and quicken the regulatory process.
Water transportation.—To
meet the need for a viable U.S.
merchant marine and to operate and maintain a safe, reliable, and
efficient marine transportation system, the budget proposes $1.9
billion in outlays in 1979 for water transportation programs. This
does not include amounts for Corps of Engineers construction, operation, and maintenance programs for navigation purposes since a
number of the projects do not have navigation components separately
identified in the budget.
MEETING NATIONAL NEEDS
149
Marine safety and transportation.—Outlays of $1.4 billion in 1979
reflect a continuing emphasis on renovation and replacement of
Coast Guard operating equipment to meet the needs of marine
transportation and safety. Full funding for the removal or replacement of three bridges that represent hazards to navigation is provided
for, as well as a shift in staff to expand foreign tanker inspections.
In addition, the budget proposes phasing out the Coast Guard's
boating safety grant program.
The administration will press for enactment of waterway user
charges legislation to recover a substantial portion of the Federal
cost of constructing, operating, and maintaining the inland waterway
system. These proposals are further discussed in the receipts section
(Part 4) of the Budget.
Ocean shipping.—Outlays in support of the U.S. merchant marine
and the U.S. shipbuilding industry are estimated to total $532 million
in 1979. Federal operating subsidies are provided to offset the higher
labor and other operating costs of U.S.-flag ships. In addition, Federal
construction differential subsidies are provided to offset higher labor
and material costs of manufacturing ships in U.S. shipyards. Without
these subsidies, foreign-flag ships would have a competitive advantage
in our foreign trade because of their lower costs. Outlays for operating
differential subsidies of $337 million are expected in 1979. This reflects
approximately the same level of operations for liner ships as in 1978,
and a reduction in subsidies for bulk carriers hauling grain to the
Soviet Union as a result of strong demand for these ships in other
markets. Commitments to subsidize the construction of a number of
merchant vessels are planned.
Under the terms of the Panama Canal Treaty of 1977, the Panama
Canal Company would be replaced by a new Federal Government
agency, the Panama Canal Commission, when the treaty is effective.
The Commission would be responsible for operating the waterway,
but most supporting activities—now performed by the Panama Canal
Company—would not be continued by the new Commission.
Other transportation.—Various programs that are not readily
addressed to ground, air, or water transportation also contribute
to the achievement of the national need for an effective transportation system. These include the National Transportation
Safety Board and the unallocated overhead of the Department of
Transportation. The budget requests $0.1 billion in outlays for these
programs that serve all transportation areas.
150
THE BUDGET FOR FISCAL YEAR
1979
CREDIT PROGRAMS—TRANSPORTATION
[In millions of dollars]
1977
actual
Program
Highways and mass transit:
Direct loans:
New loans
Repayments, sales, and adjustments(—)
1978
1979
64
-1
51
-53
35
-103
63
-3
-68
783
871
662
783
m
662
347
201
327
277
403
382
28
-7
4
-5
4
-4
20
-2
-1
1,323
1,165
1,005
1,310
1,130
91
81
4\
24
-20
223
-3
100
27
220
100
n
Net credit outlays__ __.
Railroads:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
_.
Net credit outlays
Guaranteed loans:
New loans
Net credit guaranteed
.
Assistance to shipping:
Direct loans:
New loans
Repayments, sales, and adjustments(—)
Net credit outlays
Guaranteed loans:
New loans
Net credit guaranteed
]t\25
Aircraft loan guarantees:
Guaranteed loans:
New loans
Net credit guaranteed.
.__
__ _ _
Off-budget Federal entity—U.S. Railway Association:
Direct loans:
New loans
_
Repayments, sales, and adjustments(—)
Net credit outlays
__
Tax expenditures.—The deductibility of State and local gasoline
excise taxes results in a tax expenditure estimated to be $0.8 billion
in 1979 under current law. The President's tax reform proposals include repeal of this provision. Repeal would both simplify the tax
system and help meet the objectives of the national energy plan.
MEETING NATIONAL NEEDS
151
COMMUNITY AND REGIONAL DEVELOPMENT
National Needs
Statement:
• Encourage economically and socially viable and attractive xifban neighborhoods and rural areas.
• Strengthen State and local government capacity to
revitalize economically and socially depressed areas.
• Develop mutually supportive relationships among central
cities, suburban areas, rural towns, and the countryside.
• Provide relief to areas that suffer from natural disasters.
To help achieve these national needs, the Federal Government will
spend an estimated $8.7 billion in 1979 in support of the following
major missions:
• Community development: $4.0 billion.
• Area and regional development: $3.7 billion.
• Disaster relief and insurance: $1.0 billion.
This administration recognizes that Federal resources must be
combined with State and local government and private sector resources
to meet the long-term needs of community and regional development.
Federal resources will be used as a catalyst to encourage greater and
more innovative local efforts to revitalize and redevelop depressed
urban neighborhoods and rural areas. Federal resources will also
emphasize the rehabilitation and the redevelopment of existing
neighborhoods and facilities rather than encouraging their abandonment.
To carry out these missions, the following proposals are emphasized
in this budget.
• A $150 million increase in budget authority for the community
development block grant program.
• Continuation of the urban development action grant fund with
budget authority of $400 million for 1979.
• A $95 million increase in budget authority for the rehabilitation
loan program.
• Increased funding for the urban reinvestment task force.
• A proposed urban extension program.
• Increased funding for economic development assistance especially
to cities in both 1978 and 1979.
The major missions are supported by the programs shown on the
table on the following page.
Urban assistance.—The Federal Government currently provides
a substantial amount of assistance to urban areas through a vast
array of programs. While the community and regional development
152
THE BUDGET FOR FISCAL YEAR
1979
NATIONAL NEED: COMMUNITY AND REGIONAL DEVELOPMENT
[Functional code 450; in millions of dollarsl
Major missio
Recommended
budget
authority
for 1979
ograms
Community development:
Department of Housing and Urban development:
Community development block grants....
Urban development action grants
Categorical programs replaced by community development block grants
Rehabilitation loans
Research and planning
Other programs
Proposed legislation
Departmental management
Rural development grant program
Pennsylvania Avenue development
Other
Subtotal
.___
Area and regional development:
Department of Agriculture—rural community
and business assistance
Department of Commerce:
Economic development assistance
Local public works
Coastal energy impact
Other
Indian programs
Appalachian programs
Offsetting receipts and other
Subtotal
Disaster relief and insurance:
Small Business Administration disaster loans.
Disaster relief J
Flood insurance
Other
Subtotal
_
Deductions for offsetting receipts.
Total
Outlays
1977
actual
1978
1979
estimate estimate
1980
estimate
3,750
400
2,089
2,560
24
2,644
159
3,108
294
18
95
119
68
10
170
275
27
905
41
140
86
667
43
124
140
120
122
1
149
297
25
440
85
118
63
2
167
260
34
235
100
117
73
10
170
275
27
20
22
20
20
20
4,952
3,526
4,049
3,991
4,430
531
343
318
344
367
656
11
4
106
858
485
-392
305
585
122
719
351
-285
347
2,304
4
258
686
460
-401
400
2,011
15
109
743
458
-392
477
1,112
75
128
802
436
—426
2,259
2,139
3,976
3,689
2,972
190
200
114
19
184
331
97
23
1,195
324
144
23
550
284
150
24
200
187
167
20
523
634
1,686
1,007
575
-18
-16
-17
—18
—18
7,716
6,283
9,694
8,669
7,958
199
59
79
105
117
ADDENDUM
Off-budget Federal entity: Rural Telephone
Bank
_.
MEETING NATIONAL NEEDS
153
function contains many of these programs, a substantial number of
them have as their primary purpose meeting other national needs and,
therefore, are classified in other functional areas although they also
support urban areas. These programs are concentrated in the commerce and housing credit; income security; transportation; health;
education, training, employment, and social services; and general
purpose fiscal assistance functions. The number of individual programs
involved, conceptual problems about the definition of urban assistance, and a data base that does not presently relate certain expenditures to particular geographic areas, all make a precise accounting of
the amount of Federal resources currently allocated to urban areas
difficult. However, approximate data do exist on the portion of
Federal grants to State and local governments that go to standard
metropolitan statistical areas (SMSA's). These areas are essentially
urban in character, but include more than central cities. Therefore,
the data include benefits for metropolitan areas as a whole, including
both central cities and suburban areas. These data indicate that the
budget includes an estimated $55 billion in grants for SMSA's in 1979.
This is compared with $51 billion in 1978 and $44 billion in 1977. The
resources going to SMSA's are, therefore, increasing at 12% per year
over this period.
It is also possible to estimate urban assistance targeted to specific
urban problems of our cities. This can be done by combining outlays
for major urban programs in the Departments of Housing and Urban
Development, Commerce, Labor, and Transportation. This includes:
• most of the HUD programs;
• the urban portion of the Department of Labor's employment and
training programs ;
• many of the Economic Development Administration (EDA) programs of the Commerce Department; and
• the urban highway and mass transit programs of the Department
of Transportation.
Outlays estimated in the budget for major direct urban programs
total $16.1 billion in 1979, an increase of $2.6 billion or 19% over
1978. Outlay estimates in this category increase to $20.0 billion in
1980. These estimates exclude outlays for general purpose revenue
sharing, countercyclical revenue sharing assistance, outlays of the
Department of Health, Education, and Welfare for social programs,
and numerous other smaller programs. These programs, when combined, represent substantial assistance to urban areas.
The HUD housing programs and the urban-related programs of the
Departments of Labor and Transportation are described in other national needs sections; the development programs of the Department of
Commerce and the Department of Housing and Urban Development
are discussed below.
154
THE BUDGET FOR FISCAL YEAR 1979
The most essential ingredients for urban progress are local and
State leadership acting in concert with private sector resources.
However, both the amount and the form of Federal assistance are
important. The amount of Federal resources assisting urban areas is
substantial. Improvements are proposed in this budget to increase the
efficiency of existing Federal programs and thereby aid local leadership
to improve urban areas. An example of this effort in the community
development area is the proposed urban extension program in the
Department of Housing and Urban Development. This program would
encourage a greater sharing of urban program implementation experiences among communities, thereby permitting more effective use
of Federal funds. Coordination among departments will also be
improved. EDA and HUD's Community Planning and Development
Administration are coordinating their urban development programs,
and are jointly financing certain of their projects. Examples of similar
proposed improvements in other functional areas include:
• interest subsidies for the construction of middle-income housing
in central cities;
• a private sector initiative in employment and training to improve
the relation of training to permanent jobs and link with economic
development; and
• joint SBA, EDA, and HUD sponsorship of technical assistance to
cities in neighborhood, commercial, and industrial revitalization.
A number of proposed program expansions and new programs
have been designed to fill gaps among the current programs providing
assistance to urban areas. In the community and regional development area, the direct rehabilitation loan program (section 312) has
been increased to ensure that credit for housing rehabilitation is
available in distressed urban neighborhoods not well served by the
private market. In addition, funding for EDA investment in cities
through public works grants and loans and business development loans
has been increased to help foster the location of industrial and commercial enterprises in economically distressed urban areas. Programs
serving youth who have very high unemployment rates, especially in
cities, will be substantially increased.
These proposals represent the first phase of the administration's
program to support local efforts to improve and revitalize distressed
urban areas. They reflect a greater emphasis on creating stronger local
economies with accompanying increases in permanent employment.
Coupled with imaginative local and State leadership, they represent
the administration's intent to help develop urban resources and
support local policies that facilitate the establishment of healthy
economies.
MEETING NATIONAL NEEDS
155
Community development.—A variety of Federal programs,
administered by several agencies support the mission of community
development by providing Federal grants, loans, and technical assistance to States and localities. Outlays for the mission are estimated
to total $4.0 billion in both 1978 and 1979.
Department oj Housing and Urban Development (HUD).—The community development block grant program, begun in 1975, provides
a flexible system of Federal assistance for activities developed by
local governments based on local priorities. Activities funded under
this program include property acquisition, the construction of public
facilities, the rehabilitation of buildings, the provision of social
services, and planning and management. Funds are allocated by formula on the basis of objective measures of need. The Housing and
Community Development Act of 1977 provided metropolitan cities
and urban counties the choice of receiving allotments under either of
two formulas:
© the original formula, composed of poverty (50%), population
(25%), and overcrowded housing (25%); or
• an alternative formula, composed of poverty (30%), population
growth lag, as represented by below average growth rates since
1960 (20%), and age of housing stock (50%).
The alternative formula addressed the physical deterioration in older
urban areas.
The proposed level of new commitments for block grants in 1979 is
$3.8 billion, $1.3 billion above the highest level achieved under the
seven categorical programs replaced by block grants. Outlays reflect
the rate at which State and local governments carry out their projects
and are expected to increase from $2.6 billion in 1978 to $2.8 billion
in 1979.
The Housing and Community Development Act of 1977 also established the urban development action grant fund within the block grant
program. This was a major urban initiative requested by President
Carter in his 1978 budget revisions. Under this program, severely
distressed cities and urban counties receive discretionary grants to
supplement local government and private sector financing for major
urban rehabilitation projects. The 1979 budget requests $400 million
in budget authority, the same amount as appropriated for 1978.
Outlays are estimated to rise from $24 million in 1978 to $159 million
in 1979.
Outlays for categorical programs replaced by block grants will
continue to decrease as approved projects are completed. Loan disbursements and repayments from prior commitments under these
categorical programs will also continue for several years.
156
THE BUDGET FOR FISCAL YEAR 1979
The rehabilitation loan program provides subsidized loans to rehabilitate residential and small commercial structures in specified
community development areas. A budget authority increase of $95
million is requested for 1979. It is expected that these funds will be
augmented by anticipated loan repayments of $35 million. These total
resources will support about 10,000 loans in 1979, compared to 7,700
in 1978. Outlays are estimated to rise from $43 million in 1978 to $85
million in 1979.
The comprehensive planning program provides funds to State and
local governments, and areawide organizations, for planning and
management activities. The budget authority requested for this program is maintained at the 1978 level of $57 million. However, total
funds available for these activities will be substantially greater,
because the community development block grant program also provides funds to local governments for similar purposes. In 1979, block
grant recipients are expected to use about $100 million for comprehensive planning and management activities. Outlays for the comprehensive planning program are estimated to decline from $64 million
in 1978 to $60 million in 1979.
The research program of the Department of Housing and Urban
Development supports the search for solutions to community development and housing problems. Activities to be undertaken include:
• major evaluations of the section 8 cash rental assistance program
(discussed in the income security function) and community
development block grant programs;
• development of techniques to lower housing costs; and
• evaluation of the performance funding system, which provides
operating support to public housing projects.
The research program also provides financial support for the interagency urban reinvestment task force, which encourages residential
rehabilitation in urban neighborhoods.
The 1979 budget also requests $20 million in budget authority for
the urban homesteading program, a $5 million increase above the
1978 level, and $10 million in budget authority for a new urban extension service program. This program is intended to facilitate the interchange of approaches to handling urban problems among local
governments and thus achieve more effective use of Federal funds.
Department of Agriculture.—The budget proposes $275 million of
budget authority in 1979 for the Department of Agriculture's water
and sewer and rural development grants, with emphasis on assisting
in the development of water supply facilities. This is a $10 million
increase over the 1978 level. These grants complement the $1 billion
in loans discussed under area and regional development.
MEETING NATIONAL NEEDS
157
Pennsylvania Avenue development.—The budget requests $27 million
in budget authority for 1979 to continue the revitalization of downtown Washington, D.C., as envisioned in the Pennsylvania Avenue
development plan. Development will take place under the direction of
the Pennsylvania Avenue Development Corporation in cooperation
with private enterprise. Outlays for land acquisition and development
activities are estimated to rise from $21 million in 1978 to $25 million
in 1979.
Area and regional development.—Programs in this mission provide support for rural development, American Indian tribal governments, and Appalachian development.
Department ofAgriculture.—The Department of Agriculture expects
to make $1.0 billion in water and sewer and community facility insured loans during 1979, an increase of $50 million over the 1978 level,
and to guarantee $1.1 billion in industrial development loans, an increase of $100 million over the 1978 level. Outlays for these programs
are estimated to increase slightly from $318 million in 1978 to $344
million in 1979.
The water and sewer, and community facility loan and grant programs are intended to augment and complement the community
development block grant program and the Environmental Protection
Agency waste treatment grant program in rural areas. The Department of Agriculture community facility programs are limited to
communities with a population of less than 10,000; industrial development loan guarantees are available in communities of less than 50,000
population.
In response to the President's request, the Department of Agriculture directed an interagency evaluation of rural problems and possible
initiatives to facilitate a more effective Federal role in rural development. That study will be integrated with the findings developed by
the White House Conference on Balanced Growth in February. The
final study will also reflect the recommendations of the President's
reorganization project regarding economic development. The study is
scheduled for completion in the spring of 1978.
Department of Commerce.—The Economic Development Administration (EDA) provides assistance to economically depressed areas and
assists States and communities in dealing with economic development
and regional economic problems. The budget requests a supplemental
of $117 million in budget authority for the regular EDA programs
in 1978. Budget authority of $656 million is requested for 1979, an
increase of $128 million over the 1978 total. The amount requested
for cities increases from $127 million in 1978 to $205 million in 1979.
260-000 O - 78 - 11
158
THE BUDGET FOR FISCAL YEAR 1979
Budget authority for rural districts and counties increases from $171
million in 1978 to $213 million in 1979.
Outlays for the temporary local public works program are estimated to be $2.3 billion in 1978, $2.0 billion in 1979 and $1.1 billion in
1980. Except for necessary administrative expenses, no budget
authority is requested for this program. In 1977 an additional $4.0
billion of budget authority was requested as part of the President's
economic stimulus program. Therefore, further economic stimulus
from this source is not necessary at this time.
Proposed budget authority for technical assistance, supplemental
grants, and administrative costs of the regional action planning commissions in 1979 is at the 1978 level of $65 million.
The coastal energy impact program provides limited planning and
environmental grants, and major loans and loan guarantees to States
and local governments to assist them in planning and financing public
facilities and services required as a result of energy development
activities in or near coastal areas, such as Outer Continental Shelf
(OCS) oil development. No 1979 funding for the loan program is
requested because an estimated $200 million is available for loans and
guarantees from current and prior-year appropriations. Additional
funding will be requested when loan applications exceed existing
funds. For 1978 and 1979 a total of $210 million is proposed to be made
available in Federal grants, loans, and loan guarantees. Outlays are
estimated to rise from $4 million in 1978 to $15 million in 1979.
Indian programs.—The 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 Indian Self-Determination and Education Assistance Act of 1975 enables Indian communities to administer
Federal programs serving them, pursuant to contracts with the Bureau
of Indian Affairs (BIA). Currently, $140 million of BIA programs
are covered by such contracts.
The Federal Government provides grants, training, and technical
assistance to strengthen tribal management and planning abilities.
It also encourages economic development through business development assistance, direct Federal loans, and interest subsidies. It funds
community development activities, such as construction of roads,
schools, and irrigation systems. Outlays for the Indian programs
whose primary mission is regional development are estimated to rise
from $686 million in 1978 to $743 million in 1979. Additional assistance
to Indian tribes is classified in the health, education, training, employment, and social services; income security; natural resources and environment; and general government functions.
MEETING NATIONAL NEEDS
159
Appalachian programs.—Through the Appalachian Regional Commission (ARC), 13 States—from Mississippi to New York—and the
Federal Government cooperate to encourage economic development
of the region. The 1979 budget requests a $10 million increase in appropriations for each of ARC's major programs: the Appalachian development highway system; and area development projects aimed at
providing facilities essential to the region's growth, particularly in
the areas of health, education, and community development. A total
appropriation of $346 million is requested for Appalachian programs
in 1979, an increase of 6% over 1978. Outlays are estimated to increase from $315 million in 1978 to $323 million in 1979. In addition,
estimated outlays of $135 million in 1979 from the Tennessee Valley
Authority will be used for development in the region.
Disaster relief and insurance.—Insurance against losses from such
natural disasters as floods, hurricanes, and tornadoes is the responsibility of individuals and businesses, with State and local governments
primarily responsible for aiding recovery. Federal insurance and disaster relief are available to supplement these resources when they are
insufficient. Outlays for disaster relief and insurance are estimated
t o decline from $1.7 billion in 1978 to $1.0 billion in 1979.
Disaster loans.—Under current law, both the Farmers Home Administration in the Department of Agriculture and the Small Business
Administration have the authority to make emergency farm disaster
loans. To remedy the difficulties caused by this overlap in responsibility, legislation is proposed to limit such authority to the Farmers
Home Administration. The Department of Agriculture administers
three major disaster assistance programs: (1) emergency loans;
(2) Commodity Credit Corporation disaster payments; and (3)
Federal crop insurance. The Farmers Home Administration is better
equipped, through its long experience in dealing with farmers, to
handle this program more effectively, and will assure that loan
assistance is extended only to those who can demonstrate a real need
and who are unable to obtain loans from private lenders. Farmers
Home Administration programs are discussed more fully in the
agriculture and commerce and housing credit functions.
Disaster reliej.—Under the Disaster Relief Act of 1974, disaster
relief in the form of grants to individual victims and block grants for
the restoration of public facilities is provided. Outlays depend upon
the incidence and severity of uninsured losses from natural disasters
and are estimated to be $284 million in 1979.
160
THE BUDGET FOR FISCAL YEAR 1979
National flood insurance.—This program is designed to reduce the
economic hardship resulting from floods. Flood insurance is available
at federally subsidized rates for structures located in flood hazard
areas in communities that are willing to adopt flood plain management
plans. An important aspect of an effective flood insurance program is
the participation of all communities in the flood plain management
process so that development in one community does not adversely
affect another community. B y the end of 1979, it is estimated that
there will be 16,500 communities participating. Most of the estimated
$150 million in outlays in 1979 will result from the payment of claims.
CREDIT PROGRAMS-COMMUNITY AND REGIONAL DEVELOPMENT
[In millions of dollars]
Program
1977
actual
1978
estimate
1979
estimate
Housing and Urban Development programs:
Direct loans:
New loans
Repayments, sales, and adjustments (—) *
Net credit outlays
Guaranteed loans: 2
New loans
Net credit guaranteed
430
-377
265
-191
262
—153
53
74
109
31
-1,031
99
-580
96
—338
747
-684
955
-969
1,164
-1,175
62
-13
-11
973
769
1,484
1,308
1,935
1,545
87
—28
163
—33
127
—42
59
130
85
36
11
73
37
3
—36
Farmers Home Administration programs:
Direct loans:
New loans
Repayments, sales, and adjustments (— ) »
Net credit outlays
Guaranteed loans: 2
New loans
Net credit guaranteed
_
Other community and regional development programs:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
Net credit outlays
Guaranteed loans:
New loans
Net credit guaranteed
_
MEETING NATIONAL NEEDS
161
CREDIT PROGRAMS-COMMUNITY AND REGIONAL DEVELOPMENT-Continued
[In millions of dollars]
Program
Small Business Administration disaster assistance:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
Net credit outlays
Guaranteed loans:
New loans
Net credit guaranteed
Off-budget Federal entity—Rural Telephone Bank:
Direct loans:
New loans
Repayments, sales, and adjustments ( —)
Net credit outlays
1
2
1977
actual
222
-188
1978
estimate
1979
estimate
1,290
-190
715
-253
34
1,100
462
2
—1
1
—1
81
—4
110
—11
140
—14
77
99
126
_._
Includes sale of loan assets.
Includes loans counted as direct loans of other accounts.
Related programs.—Many programs whose primary purpose is to
fulfill other national needs help promote community and regional
development. Federal outlays for civil public works, shown on the
table below all support community development. In addition, grants
for local health, education, crime prevention, employment training,
and general revenue sharing assist State and local development. Other
direct Federal activities, such as housing credit, defense contracting,
and management of public forests and parks, and the operation of
Federal facilities (for example, Veterans Administration hospitals,
naval shipyards, NASA research facilities, et cetera) also have a significant impact on community development.
162
THE BUDGET FOR FISCAL YEAR 1979
FEDERAL OUTLAYS FOR CIVIL PUBLIC WORKS AND CONSTRUCTION
[In billions of dollars]
Agency and program
1977
actual
1978
estimate
1979
estimate
Federal public works:
Tennessee Valley Authority (largely energy supply)
Corps of Engineers (water resources programs)
Department of Energy (largely energy conservation)
Department of the Interior (natural resources and Indian programs)
Department of Agriculture (largely forest roads)
Department of Transportation (largely airports)
Veterans Administration (medical facilities)
Department of Health, Education, and Welfare (largely health)
All other agencies
Total, Federal public works
1.2
1.4
0.5
1.5
1.5
1.0
1.4
1.5
1.1
0.8
0.2
0.3
0.2
0. 1
0. 3
0.9
0.3
0.3
0.3
0.3
0.4
0.9
0.4
0.3
0.4
0.2
0.4
5.2
6.5
6.5
0.3
5.9
1.0
3.5
0.5
6.7
1.2
4.1
0.6
7.4
1.4
4.7
3.1
0.8
0.2
3.4
2.6
0.3
3.3
2.2
0.3
0.3
0.3
0.4
0.5
0.4
0.3
0.2
0.4
0.4
0.5
0.1
0.6
16.4
20.1
21.3
21.6
(4.6)
(16.9)
26.7
(6.9)
(19.8)
27.8
(6.5)
(21.3)
Grants to State and local governments:
Department of Transportation:
Airports
Highways
Mass transit
Environmental Protection Agency—Sewage construction grants
Department of Housing and Urban Development (community
development)
_
_
Department of Commerce (local public works and other)
Appalachian regional development programs
Department of Agriculture (rural development and flood prevention)
Department of the Interior (largely recreation)
Department of Health, Education, and Welfare (largely health).
Other agencies
Total, grants to State and local governments
Total, Public Works
Allocated to community development (function 450) _...
Allocated to other national needs
MEETING NATIONAL NEEDS
163
EDUCATION, TRAINING, EMPLOYMENT AND SOCIAL
SERVICES
National Needs
Statement:
• Promote the extension of knowledge.
• Facilitate the dissemination of knowledge through
research.
• Assist the disadvantaged and the disabled to be selfsufficient and self-supporting.
• Provide equal education opportunities for the disadvantaged and the handicapped.
• Provide training needed for full and effective participation
in the labor force.
• Provide employment opportunities to counter unemployment caused by changes in the business cycle or other
economic dislocations.
• Promote the development of and access to the arts and
humanities.
To help to achieve our national needs in education, training, employment, and social services in 1979, the Federal Government will spend
an estimated $30.4 billion in support of the following major missions:
• Elementary, secondary, and vocational education programs:
$6.5 billion.
• Higher education: $4.3 billion.
• Research and general education aids: $1.2 billion.
• Training and employment: $12.8 billion.
• Other labor services: $0.5 billion.
• Social services: $5.1 billion.
To help to carry out these missions, the following major proposals
are emphasized in this budget:
• Provide funds for improving the basic educational skills of the
disadvantaged with an emphasis on reading.
• Improve access to higher education for lower income students,
and help to reduce the immediate financial burden of higher
education for middle-income families.
• Expand employment and training programs for youth to find ways
to reduce the excessive unemployment burdening the disadvantaged, especially minorities.
• Redirect employment and training assistance toward individuals
and areas of greatest need and start a new initiative to increase
employment in permanent private sector jobs.
164
THE BUDGET FOR FISCAL YEAR 1979
• Continue 725,000 public service jobs—primarily for the lowincome and long-term unemployed—through 1979; phase down i n
future years as unemployment decreases, with the assurance
t h a t more such jobs will become available if unemployment
should rise again.
• Provide employment assistance t o those in need through t h e
Better Jobs and Income Act proposed to restructure the Nation's
system of providing jobs and income to the poor.
• Safeguard the rights and improve the status of children in foster
care, and provide assistance and encouragement for family r e unification or adoption as alternatives to long-term foster care.
The major missions are supported b y the programs shown in t h e
following table:
NATIONAL NEED: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
[Functional code 500; in millions of dollars]
Major missions and programs
Education:
Elementary,
secondary,
education:
and
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
estimate
3,395
400
856
676
972
2,352
2,574
765
810
249
726
683
735
1979
estimate
1980
estimate
vocational
Aid to education agencies:
Elementary and secondary education
Proposed legislation
Impact aid
Proposed legislation
Education for the handicapped
Occupational, vocational and adult
education
Other
Child development
Subtotal, elementary, secondary, and
vocational education
367
3,003
28
838
-58
562
3,265
285
850
-88
850
693
530
489
740
595
587
803
642
664
740
674
735
8,443
5,078
5,673
6,484
7,312
4,414
175
2,953
152
3,627
162
4,107
182
4,378
188
4,588
3,104
3,789
4,289
4,566
105
11
43
75
92
2
Higher education:
Student aid and institutional support
Special institutions
Subtotal, higher education
Research and general education aids:
Special projects and training
Proposed legislation
100
9
MEETING NATIONAL NEEDS
NATIONAL
NEED:
165
EDUCATION, TRAINING, EMPLOYMENT,
SERVICES-Continued
AND
SOCIAL
[Functional code 500; in millions of dollars]
Major missions and programs
Research and general education aids—Con.
Educational research:
National Institute of Education
Other
Cultural activities
Proposed legislation
Other
Subtotal, research and general education
aids
Subtotal, education
Training, employment, and labor services:
Training and employment:
General training and employment programs Youth programs
Private sector initiative
Older workers
Work incentive program
Federal-State employment service
Subtotal, training and employment
Other labor services
Subtotal, training, employment, and
labor services
Social services:
Grants to States for social and child welfare
services
Proposed legislation
Retroactive claims (proposed legislation)
Services for the disabled, the elderly and
other special groups
Community service programs
Domestic volunteer programs
Other social services
Proposed legislation
Subtotal, social services
Deductions for offsetting receipts
Total
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
estimate
1979
1980
estimate estimate
100
40
560
64
19
409
80
24
521
90
32
501
524
392
478
530
102
37
592
-6
519
1,339
927
1,177
1,247
1,353
14,370
9,109
10,639
12,020
13,231
8,155
5,041
111 1,566
150
365
693
8,927
2,303
250
198
365
745
8,582
1,967
400
228
365
745
11
361
627
9,921
2,568
400
224
365
763
12,287
490
6,877
374
10,930
440
12,787
477
14,241
490
12,777
7,251
11,370
13,264
14,138
2,578
285
2,551
2,703
2,578
264
2,633
316
543
2,913
1,379
538
529
131
109
13
64
3 __
1,463
613
117
28
1,597
558
128
13
3
1,614
538
130
13
3
6,461
4,632
5,468
5,142
5,248
—5
—7
—5
—5
—5
33,604
20,985
27,471
30,421
33,210
166
THE BUDGET FOR FISCAL YEAR 1979
EDUCATION
The primary mission of Federal education programs is to assure
that all Americans have an equal access to a good education. This
mission is carried out by giving State and local governments Federal
funds to enhance their educational systems and to provide enriched
education for the disadvantaged and the handicapped.
Elementary,
secondary, and vocational education.—The
mission of these programs is to provide assistance to State and local
educational agencies either through formula grants or through discretionary project grants.
The greatest share of this assistance is to improve the quality of
educational services offered to the low-income and handicapped,
Indians, and students of limited English language skills. Funds also
are provided to support vocational education and to compensate
school districts for the economic burden placed on them by the presence
of Federal facilities.
Aid to education agencies.—The largest share of the funds for
elementary and secondary education consists of grants to State and
local education agencies for supplementary services to low-income,
low-achieving students through title I of the Elementary and Secondary Education Act. Substantial increases are requested for this
program. Emphasis will be placed on improving basic skills, especially
reading. Budget authority of $400 million in 1979 is included for a new
legislative proposal to provide additional help for those areas that
face particularly severe education problems. Approximately $3.4
billion will be provided under the basic title I program in 1979 to aid
5.6 million students at an average per-pupil expenditure of $453.
Budget authority of $150 million is requested for grants to States
and local schools to help 250,000 children of limited English language
skills. These funds will establish bilingual education programs and
develop the capacity of these schools to meet the needs of bilingual
children through teacher training and curriculum development.
Budget authority of $76 million is recommended in 1979 to advance
the education of Alaskan Natives and Indians. Grants of $160 per
child will be made to 1,200 school districts serving 300,000 Indian
students. Special projects will increase the number of Indian professionals in medicine, law, business, forestry, and engineering. Over
16,000 adult Indians will receive assistance in reading and mathematics. In addition, $271 million in budget authority for 1979 is proposed for education programs administered by the Department of the
Interior's Bureau of Indian Affairs.
MEETING NATIONAL NEEDS
167
The purpose of the impact aid program is to compensate districts for
the cost of educating the children of Federal employees. While the
ability of these districts to raise revenue from local sources has been
reduced as the result of Federal acquisition of local property, much of
the aid now goes to districts where Federal activities do not place a
burden on the local communities' educational systems. In fact, the
Federal presence in some communities has strengthened the local
tax base. Therefore, reform is being proposed to limit Federal impact
aid to those districts where Federal activities actually impose an economic burden on the school system by reducing tax revenue. Budget
authority of $780 million is requested for impact aid in 1979, compared
to $831 million in 1978. In addition, $752 million of 1979 budget
authority is requested to forward fund the program.
The budget includes budget authority of $804 million in 1979 to
help support State and local education agencies that educate handicapped children. These funds will offset 12% of the additional cost
incurred by school systems to identify and educate handicapped
children.
Increased assistance will also be provided through the Emergency
School Aid Act for civil rights advisory activities. These funds will
aid school districts in complying with school desegration requirements.
Child development —Proposed budget authority for the Head Start
program for disadvantaged preschool children rises from $625 million
in 1978 to $680 million in 1979. In 1979, the Head Start program will
serve about 442,000 children, 34,000 more than in 1978. The 1979
budget also requests increased support for programs aimed at preventing child abuse and neglect.
Higher education.—Th,e primary mission of Federal higher education programs is to improve access to postsecondary education for
students of varying economic backgrounds.
Student aid and institutional support.—There has been increasing
concern in recent years about the rising costs of higher education,
particularly at small and medium-sized private institutions. Middleincome American families often find that the costs are more than they
can afford, yet their incomes are often too high to qualify for either
Federal assistance or for private scholarships. Tax credits to offset
part of the cost of higher education are often suggested as a remedy
and received very serious consideration by the Congress last year.
The administration, while recognizing the seriousness of the problem,
believes that this approach to its solution has serious drawbacks.
First, the form of assistance that was under consideration by Congress
168
THE BUDGET FOR FISCAL YEAR 1979
and that would be possible as a direct Federal subsidy would provide
only marginal help to each family. Second, the tax credit approach
ignores the long-run benefits that individuals receive from their
investment or the investment of their parents in education.
The 1979 budget includes $2.2 billion in budget authority for the
basic opportunity grant program. Grants of up to $1,800 will be given
to 2.2 million undergraduate students in the 1978-79 school year.
The limit on allowable family assets will be increased to $25,000 to
allow more middle-income students to participate in the program.
The administration plans to recommend more effective alternatives
during the coming months which will provide further aid to students
from middle-income families through conventional programs rather
than through the tax system. Funds for these proposals are included
in the allowance for contingencies.
Budget authority of $77 million in 1979 is recommended for the
State student incentive grant program to provide assistance to
300,000 needy students. In addition, $450 million of budget authority
is proposed for the work-study program to help provide part-time
employment for 504,000 students during the 1978-79 school year.
Budget authority of $750 million is recommended in 1979 for the
guaranteed student loan program. This amount will help provide
$1.7 billion in loans to about 1.1 million students in the 1978-79
school year; $304 million is recommended for the direct loan program.
Budget authority of $8 million is requested to increase the number
of minorities and women in graduate education programs. Budget
authority of $50 million is also requested to provide loans to higher
education institutions to reconstruct and renovate facilities to make
them more accessible to handicapped students.
Special institutions.—Budget authority of $175 million
mended in 1979 to fund the American Printing House for
Gallaudet College, the National Technical Institute for
and Howard University. This is an increase of $20 million
These institutions will serve an estimated 52,000 students
is recomthe Blind,
the Deaf,
over 1978.
in 1979.
Research and general education aids.—Programs in this mission
further educational research and development, support cultural affairs
and promote related special projects. Recommended budget authority
for this mission is $1.3 billion in 1979.
The principal aim of categorical programs for special projects is to
upgrade the quality of instruction for students. The Special Projects
Act, under which nine such programs are funded, is restrictive and
does not allow sufficient flexibility to fund projects to meet emerging
MEETING NATIONAL NEEDS
169
CREDIT PROGRAMS-EDUCATION
[In millions of dollars]
1977
actual
Direct loans:
New loans _
Repayments, sales, and adjustments (—) *
Net credit outlays
Guaranteed loans: 2
New loans
Net credit guaranteed
1
a
1978
estimate
1979
estimate
351
-102
724
-129
567
-45
248
595
522
1,682
670
1.681
402
1,903
560
Includes sale of loan assets.
Includes loans counted as direct loans of other accounts.
special and unique educational needs. Legislation is recommended to
permit increased flexibility in funding discretionary activities under
this act.
In 1979, the National Institute of Education will focus its research
toward solving the educational problems that particularly affect disadvantaged groups. Budget authority requested for the National
Institute of Education rises from $90 million in 1978 to $100 million
in 1979. Basic research will be substantially increased but with
emphasis also on the dissemination of research results.
Budget authority for the National Endowment for the Arts and the
National Endowment for the Humanities requested for 1979 is
$150 million and $146 million, respectively. Emphasis will be placed
on reaching under-served populations. Federal support for the Endowments is matched by contributions from non-Federal sources. The
Endowment for the Humanities will initiate a new program in social
history to increase public awareness and appreciation of the history
of everyday life in America in the 19th and 20th centuries.
In addition, budget authority of $128 million is recommended for
the Smithsonian Institution. Noncommercial broadcasting will be
supported by $172 million in budget authority in 1979 through the
Corporation for Public Broadcasting. Federal funds will provide $2
for every $5 of private contributions to the public broadcasting system
up to specified limits.
Related programs.—A number of Federal programs are related to
education, although their primary purpose is to meet other national
T H E BUDGET FOR FISCAL YEAR 1979
170
FEDERAL EDUCATION OUTLAYS SUPPORTING OTHER MAJOR MISSIONS, 1979
Hn millions of dollars]
Agency
Functional
code
604/352
702
601
051
151
251
750
150
450
452
400
...
Elementary
and
Adult and
education
Agriculture
Veterans AdministrationHealth, Education, and Welfare: Social
Security Administration
Defense
International Development Assistance
National Science Foundation
Justice
International Communications Agency
Housing and Urban Development
Appalachian Regional Commission
Transportation
Other
Total.
2,820
66
10
2,009
260
266
3,090
2,341
390
376
3
14
2
6
1,504
721
38
14
4
__
23
150
257
126
5
17
47
54
3
48
60
2,044
1,354
129
74
62
53
54
45
48
97
3,729
4,369
1,293
9,391
55
43
needs and to serve other major missions. The above table shows
major education-related programs that support other major missions.
TRAINING, EMPLOYMENT, AND LABOR SERVICES
The mission of these programs is to help individuals get jobs and
improve their long-term earnings. This mission is carried out primarily
through Federal support to State and local governments for job training, employment services, and temporary public service employment.
In addition, the Federal Government enters into contracts with
private sector organizations to provide training or employment services. The Federal Government also establishes and enforces minimum
wage and other standards governing employment and labor-management relations.
Training and employment.—Employment
and training programs
have grown steadily to serve an increasing number of individuals.
Major increases occurred in 1977 and 1978 in response to high unemployment. Although the economy is improving, the unemployment
situation continues to call for special measures. Thus, the budget
continues support for 725,000 public service jobs in 1979, largely for
the low-income, long-term unemployed, and substantially increases
youth employment programs. Total outlays for employment and
MEETING NATIONAL NEEDS
171
training programs are estimated to be $12.8 billion in 1979. Improvements in the economy will permit gradual declines in temporary
programs thereafter, with increases beginning in 1980 and beyond as
the jobs portion of welfare reform begins to build up to a full-year
level of $11.1 billion in 1983.
General training and employment programs.—Authority for appropriations under the Comprehensive Employment and Training Act
(CETA), with the exception of the Young Adult Conservation Corps,
expires at the end of 1978. The budget requests continuation of most
activities under this law with more targeting of resources to individuals
and areas in relatively greater need. State and local governments will
receive general grants under CETA to provide outlays of approximately $1.9 billion, resulting in about 430,000 training or work experience opportunities. Outlays for special programs for Indians and for
migrant and seasonal farmworkers are estimated to reach $172 million
in 1979. Subsidized public service employment is provided primarily
for low-income, long-term unemployed individuals. In 1977, the administration sought and received authority needed to build the public
service jobs program up to 725,000 jobs by mid-1978. For 1979, the
budget request continues to support 725,000 jobs. For future years,
the administration will request levels consistent with the anticipated
improvement in the economy. Permanent standby authority will be
requested so that additional public service jobs could be provided if
any future economic downturns were to make that necessary.
The administration's proposed better jobs and income program will
restructure the Nation's system for providing employment assistance
and income to those in need. Job placement and training will aid those
able and expected to work. If there is a shortage of private sector jobs,
the Government will make available up to 1.4 million subsidized jobs
in the public sector for primary earners in families with children.
Together, the cash assistance and employment programs will always
make unsubsidized employment more attractive than subsidized jobs
or cash assistance alone. In 1979, planning grants will become available
under the new program for State and local prime sponsors to use with
State employment security agencies, other State and local agencies,
and community-based organizations to plan for implementation of the
new program. In addition, in 1979, several demonstration projects will
be funded to show how the new program will work and to ensure that
management systems are fully adequate before initiating them in all
areas. The cash program is scheduled to become effective during 1981,
three years after the date of enactment.
Youth programs.—About half of the Nation's unemployed are under
age 25. Among these young people, minorities and the disadvantaged
172
THE BUDGET FOR FISCAL YEAR 1979
Outlays for Youth Training and Employment Programs
$B»!liom
4'
are disproportionately represented, with recent minority youth unemployment rates of 35% to 40%. In response to these unacceptable
levels of joblessness, a major expansion of youth training and employment programs was started in 1977, as part of the administration's
economic stimulus program. A substantial increase in Job Corps
capacity was initiated. Summer youth employment was increased to 1
million jobs. Four experimental programs were authorized in the
Youth Employment and Demonstration Projects Act. These new
efforts are being continued in 1978, and will be further expanded in
1979, as the administration continues to explore methods for fighting
high levels of youth unemployment, especially among the disadvantaged. Outlays of programs designed specifically for youth, which
does not include CETA title I, are estimated to reach a total of $2.3
billion in 1979. This includes:
• $376 million under the Job Corps, which will have doubled enrollment since 1977;
• $740 million under the summer youth employment program,
to provide 1 million job opportunities for disadvantaged youth;
and
• $1.2 billion for programs authorized in 1977 under the Youth
Employment and Demonstration Projects Act.
MEETING NATIONAL NEEDS
173
The four new programs authorized by the Youth Employment and
Demonstration Projects Act are:
• Young Adult Conservation Corps, which provides job opportunities on public lands;
• Youth incentive entitlement pilot projects, which are testing the
effect on school dropout rates of providing employment guarantees to disadvantaged youth;
• Youth community conservation and improvment projects, which
provide work in rehabilitation and other community projects;
and
• Youth employment and training programs, which provide flexible
grants to State and local sponsors to devise new ways of serving
youth, plus substantial discretionary funding for Governors and
for the Secretary of Labor.
Private sector initiative,—A major effort will be made to orient
Federal training and employment activities more directly toward
unsubsidized private sector jobs. Working through State and local
sponsors, increased funding will be provided for training designed
with the aid of local industry. These programs will serve the disadvantaged and unemployed, with special emphasis on young people.
Advance planning and initial developmental work will start in 1978.
A total of $400 million in budget authority is requested for 1979.
Older workers,—Community service employment for older Americans
will provide 47,500 job opportunities for low-income persons 55 and
over in 1979. Authority for this program expires in 1978. For 1979,
similar authority will be sought.
Work incentive program (WIN).—Those receiving aid to families
with dependent children (AFDC) are helped to find jobs through intensive employment services or, where necessary, through job training
and job creation programs. Child care and other supportive services
enable recipients to seek and accept jobs. In 1977, about 270,000
individuals were placed in unsubsidized jobs under WIN. Another
270,000 individuals will be placed in 1979.
Federal-State employment services.—To improve the operation of
labor markets, job-matching services for workers and employers are
provided through some 2,400 State offices, operated with Federal
funds. Results of a pilot study on the net impact of the employment
service on the economy are expected in late 1978. These are part of
a major study to define the role of a government employment service
in the labor markets over the next several years. The budget request
260-000 O - 78 - 12
174
THE BUDGET FOR FISCAL YEAR 1979
will maintain employment service operations at their current level
in 1979, with outlays of $745 million. Expansion of computerized
job matching to more sites and States will continue in 1979.
Other labor services.—The Federal Government establishes and
enforces standards affecting the relationship between employer and
employee. These standards apply to such aspects of employment as
minimum wages, overtime payments, equal pay for equal work, job
discrimination on the basis of age, and welfare and pension plans.
(Similar efforts relating to job safety and health are included in the
health function, while those related to equal employment opportunities for minorities and women are covered in the law enforcement
and justice function.) The Federal Government also administers laws
designed to assure fair practices in labor-management relations, and
gathers and disseminates statistics on employment, wages, and prices.
Outlays for these services are estimated at $477 million in 1979.
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 and serve
other major missions. The following table shows major training and
employment-related programs that support other major missions.
TRAINING AND EMPLOYMENT OUTLAYS FOR OTHER MAJOR MISSIONS
[In millions of dollars]
Functional
code
350
450
450
500-503
506
506
600
700
750
750
999
Agency
Agriculture.
Housing and Urban Development—.
Interior.
Health, Education, and Welfare
Health, Education, and Welfare.__
Community Services Administration
Health, Education, and Welfare
Veterans Administration
Equal Employment Opportunities Commission
Justice
Various agencies
Total
_
1977
actual
48
12
49
770
667
1
138
293
72
1
140
2,191
1978
estimate
11
16
52
814
669
1
145
269
78
2
140
2,258
1979
estimate
56
20
54
829
688
1
154
256
104
4
140
2,306
SOCIAL SERVICES
The Federal Government provides grants to States for a variety of
social services. These services are primarily for the poor and other
groups with special needs for such services.
MEETING NATIONAL NEEDS
175
Social services.—Grants to States for social services.—The social
services program authorized under title XX of the Social Security Act
provides financial assistance to States for the delivery of a wide range
of social services to the poor, to foster their self-sufficiency and ability
to live as independently as possible. Federal outlays for the basic title
XX social services program are estimated at $2.45 billion in 1979,
compared to $2.4 billion in 1978.
The administration is also requesting a continuation in 1979 of the
$200 million (budget authority and outlays) in special funding under
this program to be used by the States for child day care.
Child welfare services.—Authorized under title IV-B of the Social
Security Act, this program provides grants to the States for the care
and protection of neglected, homeless, and abused children. The
administration has proposed legislation to improve significantly the
scope and quality of services provided by the States to children and to
develop stronger procedural safeguards to protect the rights of children
and their parents. This proposal is designed to:
• aid in reuniting children with their natural families wherever
feasible;
• require more frequent monitoring of the status of children in
foster care to assure that they are permanently placed as rapidly
as possible;
• encourage the adoption of children who might otherwise remain
in foster care for an extended period; and
• subsidize low-income families who want to adopt children.
Under this proposal, outlays for child welfare services would rise
from $57 million in 1978 to $121 million in 1979.
Retroactive claims.—A total of $543 million in budget authority and
outlays is requested in 1978 to settle States' prior-year claims under
the Social Security Act. The Secretary of the Treasury would make
such payments under the provisions of proposed legislation now
pending before the Congress.
Services for the disabled, elderly, and other special groups.—Loans will
be provided to help renovate facilities of Federal higher education
grantees to meet the requirements of section 504 of the Rehabilitation
Act to eliminate architectural barriers to the handicapped.
Outlays for programs for the disabled are estimated to be $953
million in both 1979 and 1980, and will help approximately 1.8 million
persons who have physical and mental disabilities become selfsufficient. To aid State planning in this area, advance funding for 1980
is requested for State grants to provide basic vocational rehabilitation
services. Additional 1979 outlays for vocational rehabilitation services
176
THE BUDGET FOR FISCAL YEAR 1979
are derived from the old age survivors and disability insurance trust
funds and from the supplemental security income program. These
outlays are included in the income security function since their
primary mission is to reduce reliance on income programs.
Outlays for programs for older persons are estimated to be $545
million in both 1979 and 1980. Advance funding is requested for 1980
for these programs, which are designed to enable older persons to live
in their own homes and communities. Special programs for older
Americans will also provide approximately 530,000 daily meals, an
increase of 95,000 over 1978. A White House Conference on Families
will be convened in 1979 to examine the impact on families of government actions and policies. Funds are also included to continue demonstrating approaches to the provision of services that meet the needs
of other special groups, such as runaway youth and native Americans.
Community services program.—Several social services programs are
undertaken through community action authority of the Community
Services Administration. Administrative support is financed for about
900 local community action agency grantees, although most local
community action agency program funding is derived from such
sources as Head Start and employment and training programs administered by other Federal agencies. The 1979 budget seeks to:
• strengthen the administration of community action agencies;
• expand innovative demonstration activities concentrating on the
delivery of assistance to the poor and emphasizing self-help and
integrated human services projects;
• increase funds to develop and test new, effective programs for
the poor; and
• improve the quality of community action programs and their
management through more evaluation efforts.
Special community action programs are supported at levels required
to conduct direct service activities and demonstrations. In 1979, the
energy conservation program level reflects the transfer of the home
weatherization effort to the Department of Energy. Community
action agencies will remain the primary network for delivering this
service. State economic opportunity offices—as State grantees and
conduits for Federal assistance under the direction of the Governors—
will be supported on a 50% matching basis, with the Federal and State
Governments sharing the cost equally. Funding for the community
economic development program will be concentrated in 1978 and
1979 on the more successful grantees and on improved management
of the program. An assessment will be made of the lessons learned
from this program and its potential usefulness as a part of a comprehensive urban development plan.
MEETING NATIONAL NEEDS
177
Domestic volunteer programs.—ACTION, the Federal Government's
agency for volunteers, supports Volunteers in Service to America
(VISTA), University Year for ACTION (UYA), foster grandparents,
senior companions, and the retired senior volunteer program. ACTION
has recently adopted a basic human needs planning and programing strategy, designed to enable the agency to target its volunteer
services more effectively on seven basic human needs areas: health
and nutrition, knowledge and skills, economic development and
income, housing, energy conservation, community services, and legal
rights. This new strategy is changing the emphasis in the agency's
program.
VISTA will be increased in 1979 by approximately 1,200 volunteers
and efforts will be focused on health and nutrition, community development, and energy conservation. This expansion reflects the administration's conviction that effective volunteer programs are crucial to
meeting the social needs of the country. The budget requests funds
for the senior companions and foster grandparents programs to support
the same number of volunteers as in 1978. The retired senior volunteer
program will be smaller than in prior years. Projects that only substitute for services already provided by private voluntary organizations,
or that do not meet the basic human needs criteria, will be phased out
or transferred entirely to private resources. The UYA has been judged
to be an ineffective program and few sponsoring institutions have been
willing to incorporate the programs into their own curricula. This
budget marks the beginning of a phaseout of the UYA.
The budget also proposes increases for technical assistance, grants,
and model demonstrations to explore alternative approaches to voluntary action, primarily in the private sector. Outlays for ACTION'S
domestic programs are estimated to increase from $109 million in
1977 to $117 million in 1978 and $128 million in 1979.
TAX EXPENDITURES
The income tax law provides significant benefits that have effects
similar to budget expenditures for education, training employment
and social services.
Education.—Tax expenditures that aid higher education are the
exclusion of scholarships and fellowships from income subject to tax,
the personal exemptions claimed by parents of students age 19 or
over, and the deductibility of contributions to educational institutions.
These tax expenditures are estimated to be $0.3 billion, $0.7 billion,
and $0.8 billion, respectively, in 1979.
178
THE BUDGET FOR FISCAL YEAR 1979
Training and employment.—The jobs credit, a new tax expenditure,
was introduced by the Tax Reduction and Simplification Act of 1977.
For calendar years 1977 and 1978, employers whose employment is
increased will generally be able to take as an offset to their tax liability
a credit equal to $2,100 per new employee hired. The aggregate credit
is limited to $100,000 per employer. An additional credit of $420 is
provided for all handicapped individuals newly hired who have
received vocational rehabilitation. The tax expenditure associated
with this provision is estimated to be $2.5 billion in 1978 and $1.9 billion
in 1979.
Social Services.—The provision of social services by a wide
variety of private institutions is encouraged by the deductibility of
contributions to those institutions. The tax expenditure associated
with this provision of the tax code is expected to be $4.8 billion in
1979.
MEETING NATIONAL NEEDS
179
HEALTH
National Needs
Statement:
• Assure access to quality health care services, with
emphasis on the needs of the poor, the aged, and the
disabled.
• Restrain inflationary growth in health care costs.
• Acquire knowledge regarding the causes, prevention, and
treatment of disease and the behavior by which good
health can be attained and maintained.
• Support training and education of a broadly representative health workforce.
• Assure consumer and workplace health and safety.
To address national needs in health in 1979, the Federal Government will spend an estimated $49.7 billion in outlays in support of the
following major missions:
• Health care services: $45.1 billion.
• Health research: $2.9 billion.
• Education and training of the health care work force: $770 million.
• Consumer and occupational health and safety: $887 million.
To help carry out these missions, the following major proposals are
recommended :
• An expanded child health assessment program with estimated
outlays of $263 million in 1979, to provide early and periodic
screening, diagnosis, and treatment to an additional 1.7 million
low-income children and youth under the age of 21 currently not
eligible for medicaid.
• An extension of medicaid to cover low-income expectant
mothers, with an estimated Federal outlay of $118 million in
1979.
• A new program with $100 million in 1979 budget authority to
help prevent unwanted adolescent pregnancies and to assist
adolescent parents to avoid future welfare dependency.
• A hospital cost containment initiative, now before Congress, to
hold down increases in the cost of hospital services. This initiative will reduce the Nation's anticipated health bill by an estimated $2 billion in 1979, including $730 million in Federal outlays.
• Fraud and abuse legislation to reduce payment errors under the
medicaid program, with estimated 1979 outlay savings of almost
$400 million.
180
THE BUDGET FOR FISCAL YEAR 1979
• Increases in 1979 obligations of $32 million for research in reproduction and the biological and behavioral aspects of development, and $42 million for mental health and substance abuse
research.
The administration expects to submit national health insurance
legislation this calendar year. It will not, however, affect Federal
outlays in 1979 and, therefore, no funding is reflected in this budget.
Health care services.—The mission of financing and providing
health care services represents the largest portion of Federal spending
for national health needs. The Federal Government, primarily through
medicare and medicaid, is a major source of financing for health services. To achieve its mission, the Federal Government funds about
28% of the financing for health services in the country; this includes
39% of hospital expenses, 32% of nursing home expenses, 19% of
physicians' services expenses, and 5% of drug expenses. Total Federal
outlays for health care services are estimated to rise from $34.5 billion
in 1977 to $39.9 billion in 1978 and $45.1 billion in 1979.
The availability and use of new medical services and an increasingly
older population account in part for increased health spending. Nevertheless, much of the increase has resulted from inflation. Without
cost restraints, Federal spending for medicare and medicaid alone
would rise an estimated 60% (from $42 billion to $70 billion) between
1979 and 1983.
To curb health cost inflation, enactment of pending legislation
would allow the Federal Government to limit annual increases in
hospital revenues. Hospitals could vary from Federal limits only in
exceptional circumstances. This proposal would result in 1979 outlay
savings of $630 million for medicare, $100 million for medicaid, and
$1.3 billion for non-Federal payers—a total of $2 billion.
Medicare.—Outlays of $25.6 billion in 1978 and $29.4 billion in 1979
are estimated for health services for the 27 million aged and disabled
medicare recipients.
Legislation, signed by the President in 1977, will provide for
medicare cost reimbursement for services rendered by physician assistants and nurse practitioners in rural health clinics. The administration also supports legislation that would encourage renal dialysis in
the home in order to reduce costs and help patients lead more normal lives.
Medicaid.—Enactment of an expanded proposal to establish the
child health assessment program would extend medicaid's early and
periodic screening, diagnosis, and treatment program to cover an
MEETING NATIONAL NEEDS
181
NATIONAL NEEDS: HEALTH
[Functional code 550; in millions of dollars]
Recommended
budget
authority
for 1979
Major missions and programs
Health care services:
Medicare
Proposed legislation
Medicaid
Proposed legislation
Other health services
Proposed legislation
Unallocated overhead
Subtotal, health care services
_
Health research:
National Institutes of Health:
Basic research programs
Other research programs
Alcohol, Drug Abuse, and Mental
Health Administration research
Other research programs
Unallocated overhead
Subtotal, health research
Outlays
1977
actual
1978
estimate
1979
estimate
3,047
25,611
-40
10,960
*
3,214
34,860
-2,635
13,570
-582
3,614
60
129
49,017
31,703
21,549
12,180
-95
4,015
60
124
9,874
57
114
30,039
-629
12,168
-95
3,501
20
94
47,987
34,527
39,860
45,097
1980
estimate
857
856
623
724
827
1,822
1,480
1,730
1,785
1,831
222
68
74
167
122
151
173
61
50
199
65
60
205
67
3,043
2,543
2,738
2,935
3,028
207
150
188
203
176
345
728
537
459
452
111
6
104
110
109
-1
110
2
669
981
836
770
740
627
290
521
222
599
240
613
273
617
280
917
743
839
887
897
-12
-10
-12
-12
-5
52,604
38,785
44,261
49,677
53,673
68
Education and training of the health care
work force:
National Institutes of Health training. _
Health Resources Administration training programs
Alcohol, Drug Abuse, and Mental
Health Administration training
Other health training programs
Subtotal, education and training of
the health care work force
Consumer and occupational health and
safety:
Consumer safety
Occupational safety and health
Subtotal, consumer and occupational health and safety
.
Deductions for offsetting receipts
Total
...
* $500 thousand or less.
182
THE BUDGET FOR FISCAL YEAR 1979
additional 1.7 million children and youth under 21 years of age. Currently, children are covered by the program only if they receive aid to
families with dependent children. States would be required to provide
medicaid to low-income children and youth under age 21. This proposal would cost an estimated $263 million in outlays in 1979. Proposed legislation would also provide medicaid coverage to low-income
expectant mothers not now covered.
Federal outlay savings of almost $400 million in medicaid are projected to result from the enactment of legislation establishing a
quality control program. Total medicaid outlays are estimated to be
$11.0 billion in 1978 and $12.1 billion in 1979 for the 21 million medicaid recipients.
Total Federal spending for health services is shown below.
TOTAL FEDERAL FINANCING AND PROVISION OF HEALTH SERVICES
[In millions of dollars]
Outlays
1977
actual
T978
estimate
1979
estimate
Financing of hospital and medical services:
General hospital inpatient services
Psychiatric hospital inpatient services
Long-term care inpatient services
Outpatient services
Outpatient mental health services
Other services
21,881
550
3,968
4,975
192
4,166
25,479
607
4,912
5,928
279
4,242
29,258
646
5,332
6,942
320
4,939
Subtotal, financing of services
35,732
41,448
47,436
Direct provision of hospital and medical services:
General hospital inpatient services
Psychiatric hospital inpatient services
Long-term care inpatient services
Outpatient services
Outpatient mental health services
Other services
3,520
680
220
1,802
43
393
3,924
742
257
2,035
53
476
4,111
765
283
2,140
64
446
Subtotal, direct provision of services
6,657
7,487
7,809
42,389
48,935
55,245
(34,527)
(7,862)
(39,860)
(9,075)
(45,097)
(10,148)
Total, financing and provision of services
Allocated to health (function 550)
Allocated to other national needs
As stated initially, the mission of the major Federal health care
programs—medicare and medicaid and the health service delivery
programs—is primarily to assist those groups of Americans most in
need, i.e., the aged, the poor, and the disabled. The following table
shows total Federal health spending by income and age group.
MEETING NATIONAL NEEDS
183
TOTAL FEDERAL HEALTH SERVICE OUTLAYS BY INCOME AND AGE GROUPS
[In millions of dollars]
Outlays
Total, all recipients
_.
Aged (65 and over)
Other adults (21 to64)__
Children and youth (0to20)__
Poor persons, total....
_
Aged (65 and over)
Other adults (21 to 64)
Children and youth (0 to 20)
Nonpoor persons, total
Aged (65 and over)
Other adults (21 to 64)
Children and youth (0to20)__._
Allocated to health (function 550)..
Allocated to other national needs...
_
1977
actual
1978
estimate
1979
estimate
42,389
48,935
55,245
23,724
14,524
4,141
27,668
16,660
4,607
31,757
18,272
5,216
13,918
15,876
17,610
4,802
6,981
2,134
5,553
7,949
2,374
6,248
8,581
2,780
28,471
33,059
37,635
18,921
7,543
2,007
22,114
8,711
2,234
25,509
9,691
2,436
(34,527)
(7,862)
(39,860)
(9,075)
(45,097)
(10,148)
In 1979, obligations of $174 million are recommended for the Professional Standards Review Organization (PSRO) program, which
reviews the appropriateness and quality of federally financed medical
services. The 1979 request permits existing PSROs to continue at the
1978 program level, pending the development of performance standards and tests of the efficacy of PSROs to control costs and assure
quality health care.
Other health care service programs.—In addition to medicare and
medicaid, the Federal Government funds a number of health care
delivery programs. These programs provide health care both directly
and through grants and contracts. There are, for example, 25 health
services programs in HEW that fund health services for particular
groups, with estimated outlays of $2.8 billion in 1979. These programs
include the community health center, community mental health
center, maternal and child health programs and other health services
programs including those described below.
An administration initiative will improve and expand services to
prevent unwanted adolescent pregnancies for which budget authority
of $100 million is requested in 1979. Budget authority of $60 million
184
THE BUDGET FOR FISCAL YEAR 1979
and new legislation are proposed to establish networks of communitybased services to prevent unwanted adolescent pregnancies. The other
$40 million would be used in existing health service delivery programs,
that is, community health centers, family planning and maternal and
child health (for which advance funding for 1980 is proposed in this
budget), to provide services to an additional 280,000 teenagers.
The health maintenance organization (HMO) grant program, with
estimated outlays of $30 million in 1979, will encourage the development of prepaid group practices with the objective of demonstrating
the capacity of HMO's to reduce unnecessary hospitalization and
surgery. Nearly 200 HMO's will have received Federal assistance since
1973. Legislation will also be proposed to facilitate the participation of
medicare and medicaid beneficiaries in HMO's and otherwise encourage the development of HMO's.
Estimated outlays of $61 million in 1979 for the National Health
Service Corps (NHSC) will be used to place health professionals in
areas in which they are in short supply. The NHSC program will
support 1,725 physicians and other health workers in 743 sites in
1979. The NHSC represents the primary Federal mechanism to assure
better geographic distribution of health professionals.
An estimated $559 million will be spent in 1979 on the direct provision of medical services by the Federal Government to 647,000
American Indians and Alaska natives living on or near Federal
reservations. Federal funding for Indian health services has quadrupled
since 1970; during this period, the health status of Indians in general
has improved and that of Indian infants has improved dramatically.
Outlays for Public Health Service (PHS) hospitals and clinics
are estimated to be $157 million in 1979. These funds provide primarily for the medical care of American merchant seamen and activeduty Coast Guard personnel. PHS hospitals also provide a wide
variety of services for residents of the community in which they are
located, ranging, for example, from hypertension screening to inpatient
care for community residents.
An estimated $75 million in outlays will subsidize the delivery of
mental health care at St. Elizabeths Hospital; the Hospital's patients
are primarily District of Columbia residents. A 1978 supplemental
budget request of $55 million in budget authority is proposed for the
renovation of these facilities. The Federal and District governments
will continue negotiations for the transfer of a fully accredited St.
Elizabeths Hospital to the District of Columbia.
Tax expenditures.—In addition to direct Federal spending, Federal
tax laws help finance health care by excluding from employees' taxable
income health insurance premiums paid by employers. The revenue
loss from this tax expenditure is estimated at $6.1 billion for 1979. In
MEETING NATIONAL NEEDS
185
addition, individuals are permitted to itemize deductions for health
care expenses and health insurance premiums within certain limits. In
1979, the revenue loss from this tax expenditure based upon current
law is estimated at $2.7 billion. As a part of the tax reform and simplification proposals, deductibility of medical expenses, in combination with
uninsured casualty losses, would be limited to expenses in excess of
10% of income rather than the current law which generally allows the
deductibility of medical expenses in excess of 3 % of adjusted gross
income.
Health research.—The Federal mission of assuring the development of new knowledge on the causes, prevention, and treatment of
disease is supported indirectly through grants and contracts for biomedical and behavioral research, as well as directly through research,
carried out by Federal researchers in Federal facilities. With increases
in life expectancy, the incidence of chronic and degenerative diseases
in the United States has increased. Federal research emphasizes basic
research in chronic and degenerative illnesses, such as cancer and cardiovascular disease, and in environmental and mental health problems.
The table below indicates the allocation of total Federal outlays for
the health research mission by research fields, including outlays for
research facilities construction.
TOTAL FEDERAL OUTLAYS FOR HEALTH RESEARCH
[In millions of dollars]
1977
actual
Cancer
Cardiovascular disease
Pulmonary disease
Mental health
Neurological and visual disease
Population and family planning
Environmental health
Aging
Metabolic diseases
Child health
Nutrition
Infectious diseases
Dental
__
Health services research and development.
Other research and development-. _
Research facilities
Total.._.
_
Allocated to health (function 550)
Allocated to other national needs
1978
estimate
1979
estimate
767
306
63
145
196
67
444
42
186
86
50
190
49
83
471
26
796
355
72
148
238
76
493
54
226
99
58
211
57
66
568
22
830
382
77
169
263
87
507
59
246
114
66
222
63
88
578
16
3,173
3,539
3,766
(2,543)
(630)
(2,738)
(801)
(2,935)
(831)
186
THE BUDGET FOR FISCAL YEAR 1979
Federal outlays for national health research needs have risen from
$70 million in 1950 to an estimated level of $3.5 billion in 1978 and
$3.8 billion in 1979. The Federal Government currently funds more
than 66% of all health research in this country through grants and
contracts, as well as in its own laboratories and clinical facilities. The
budget request maintains current levels of effort in major research
areas, such as cancer, diabetes, and heart disease. The budget request
also provides substantial increases in support of research in developmental biology and behavioral and biological reproductive studies,
including nutrition. This research complements administration initiatives in child health assessment and in the prevention of unwanted
adolescent pregnancies.
HEW obligations for basic research are estimated to rise from
$844 million in 1978 to $964 million in 1979. Proposed obligations for
research related to mental health, alcohol, and drug abuse increase
from $180 million in 1978 to $222 million in 1979, reflecting recommendations of the President's Commission on Mental Health. The
1979 budget also includes obligations of $63 million for health services research in areas such as health care quality assurance, financing
of health care, and cost containment.
Education and training of the health care work force.—Total
outlays for training health professionals in this mission are estimated
to be $836 million in 1978 and $770 million in 1979. This decline
in outlays represents a gradual shift away from programs that are
designed to increase the supply of health professionals and that
provide basic institutional operating subsidies. Funds are shifted
toward programs that directly assist students and meet more directly
and efficaciously the need for a better geographic and specialty
distribution of health professionals.
Between 1960 and 1975, partially as a result of Federal support—
especially for physicians—the supply of health professionals rose by
about 50%. The projected growth in the numbers of health professions
graduates, from 27,803 in 1975 to 37,105 in 1990, indicates that
Federal subsidies are not necessary to increase supply. For example,
between 1969 and 1977 alone, medical school enrollments increased
62% and the annual number of graduates increased by 74%, from
8,059 to 14,000. The annual number of medical school graduates by
1990 is estimated to be 20,000. The Congress recognized these increases in supply in the ' 'Health Professions Educational Assistance
Act of 1976," stating "there is no longer an insufficient number of
physicians and surgeons in the United States."
Beginning in 1979, capitation grants for health professions schools—
which provide Federal funds to schools based on the number of stu-
MEETING NATIONAL NEEDS
187
dents enrolled—will be phased out over a 3-year period. Federal support for health professions training—which now addresses geographic
and specialty maldistribution of health professionals—will focus
primarily on service commitment scholarships and direct placement
of needed health professionals in scarcity areas through the National
Health Service Corps. The National Health Service Corps scholarship
program, with estimated outlays of $60 million in 1979, will support
6,000 students. In addition, a limited number of non-service-related
scholarships will be maintained for first-year students from disadvantaged backgrounds. Research training will emphasize fellowships
for postdoctoral students in life science fields to be selected through
national competition.
FEDERAL OUTLAYS FOR HEALTH STUDENTS
[In millions of dollars]
Outlays
1977
actual
Students in life science fields
Medical students
Dental students
Nursing students
Students in mental healthfields._
Other students in health fields
Total
Allocated to health (function 550).
Allocated to other national needs..
112
645
124
148
30
463
1,522
(981)
(541)
1978
estimate
1979
estimate
135
679
56
140
31
332
152
539
65
1,373
(836)
(537)
161
29
386
1,332
(770)
(562)
The recently established health professions guaranteed loan program represents a more equitable means of funding training for
individuals entering health fields than operating subsidy grants to
schools. Such Federal direct subsidies are not necessary to attract
students to health professions schools. Loans guarantees for the 19781979 academic year for health professions students are estimated to
total $120 million. For support of undergraduate health professions
training, greater emphasis will be placed upon the more equitable
needs-based student assistance grant and loan programs administered
by the Office of Education that are available to all undergraduate
students.
Consumer and occupational health and safety.—An estimated
$887 million in outlays will be spent in 1979 on the Federal mission
188
THE BUDGET FOR FISCAL YEAR 1979
of protecting consumers from unsafe and defective products, and
workers from occupational safety and health hazards.
Outlays for consumer safety activities are estimated to increase from
$599 million in 1978 to $613 million in 1979. Food and drug regulatory
efforts will expand to assure the safety and efficacy of drugs and medical devices in 1979. A number of initiatives, such as reforming drug
laws, insuring food safety, and fostering cooperative regulatory,
educational, and research activities are expected to make existing
programs more effective. Consumer product safety efforts will continue
research, information dissemination, and regulatory measures to protect consumers from unreasonable consumer product risks. The
Department of Transportation will continue efforts to prevent automobile accidents and reduce injuries from accidents through various
motor vehicle and highway design safety standards.
Federal outlays to improve the safety and health of American
workers in their workplace are estimated to be $273 million in 1979.
The National Institute for Occupational Safety and Health (NIOSH)
will increase the number of proposed limits for toxic materials and
harmful physical agents in the workplace for use by the Department
of Labor in promulgating occupational safety and health standards.
NIOSH will also expand its research and training facilities related to
occupational safety.
The Occupational Safety and Health Administration in the Department of Labor will issue new occupational health standards to help
prevent job-related diseases and will continue to simplify and improve
safety standards. The number of workplace inspections will increase
from 200,000 in 1977 to 220,000 in 1979, with an increased emphasis
on health inspections. Programs to acquaint workers and employers
with the best methods for improving safety and health conditions in
the workplace will be increased. In 1978, responsibility for mine safety
and health will be transferred from the Department of the Interior to
the Department of Labor under the recent amendments to the Federal
Mine Safety and Health Act. These amendments for the first time
require mandatory safety and health standards for non-coal mines
and specify minimum numbers of compliance inspections. In addition, increased emphasis will be placed upon the enforcement of health
standards and upon the development of programs to train miners in
workplace safety and health.
Health-related programs.—A number of Federal programs are
health-related, although their primary purpose is to meet other national
needs and to serve other major missions. The table on the following
page lists 1979 outlays for major health-related programs that support health missions, but whose primary purpose is to support nonhealth missions.
MEETING NATIONAL NEEDS
189
PROPOSED 1979 FEDERAL HEALTH OUTLAYS SUPPORTING OTHER MAJOR MISSIONS
[In millions of dollars]
Mission
Functional
code
051
703
451
352
304
250
270
150
251
300
400
750
999
999
Agency
Health
care
services
Defense
Veterans
Housing and Urban Development
Agriculture
Environmental
Protection
Agency
National Aeronautics and
Space Administration
Energy
State
National Science Foundation. _
Interior
....
Transportation
Justice
Other agencies
Agency contributions to employee health funds
Total
Health
research
Training
the health
care work
force
Protecting
consumers
and
workers
Total
3,633
5,220
132
113
337
334
50
0
4,152
5,667
97
31
0
97
0
0
29
349
126
477
0
84
0
0
84
2
8
23
0
16
53
46
203
51
199
4
63
47
6
1
54
0
0
9
0
0
3
0
58
6
0
36
0
3
14
15
168
59
208
72
63
66
78
62
483
2,145
0
0
1
2,146
11,477
851
741
671
13,743
CREDIT PROGRAMS-HEALTH
[In millions of dollars]
1977
Program
Direct loans:
New loans
Repayments, sales and adjustments ( — ) .
Net credit outlays
Guaranteed loans:
New loans.
Net credit guaranteed
260-000 O - 78 - 13
__
___
1978
1979
106
-56
129
-60
83
-95
49
70
-13
303
292
107
92
217
200
190
THE BUDGET FOR FISCAL YEAR 1979
INCOME SECURITY
National Needs Statement:
• Mitigate through social insurance the loss of income due
to unemployment, retirement, disability, or death.
• Assure a reasonable income for poor Americans, especially the elderly, disabled, and families with children,
who—even though they may be working—are unable to
provide sufficiently for themselves.
• Coordinate the various income transfer programs to
eliminate duplication and inequities, and assure that all
needy and deserving persons are benefitted.
• Administer these programs with the greatest efficiency,
while preserving the dignity and independence of the
beneficiaries.
To achieve our national needs for income security in 1979, the
Federal Government will spend an estimated $160.0 billion in support
of the following major missions:
• General retirement and disability insurance: $108.4 billion.
• Federal retirement and disability insurance: $12.0 billion.
• Unemployment compensation: $11.8 billion.
• Public assistance, housing assistance, and other income supplements: $27.8 billion.
To carry out these missions, the following proposals are included in
this budget:
• The program for better jobs and income to reform the welfare
system with planning beginning in 1979 and full implementation
of the cash program beginning in July 1981;
• Changes in the social security benefit structure to eliminate windfall benefits and improve equity within the system;
• A President's Commission on Retirement Policy to study both
public and private retirement systems; and
• An increase in housing assistance to aid an additional 450,000
low-income families in 1979.
General retirement and disability insurance.—This mission
includes benefits paid out under the social security system to retired
and disabled workers and their survivors. It also includes benefits
paid out under railroad retirement and provides special benefits for
disabled coal miners.
Most income security programs and the overwhelming share of
income security benefits are related by law to changes in the cost of
MEETING NATIONAL NEEDS
191
NATIONAL NEED: PROVIDING INCOME SECURITY
[Functional code 600; in millions of dollars]
Recommended
budget
authority
for 1979
Major missions and programs
General retirement and disability insurance:
Social security (OASDI)_,
Proposed legislation
Railroad retirement
Special benefits for disabled coal miners
Other
__.
Proposed legislation
Subtotal
Federal employee retirement and disability:
Retirement and disability
Federal employee's compensation__
__
Subtotal
Unemployment compensation:
Existinglaw
Proposed legislation
Subtotal
Public assistance and other income supplements:
Supplemental security income
AFDC and other
Proposed legislation
Food stamps
School lunch and other nutrition programs...
Proposed legislation
Crude oil equalization tax refund (proposed
legislation)
Housing assistance
Proposed legislation
Refugee assistance
Other
Subtotal
Total
._
83,861
105,109
88,642
19,426
228
9,228
275
10,519
292
11,767
228
13,145
256
19,654
9,503
10,811
11,995
13,401
17,227
—200
15,258
12,360
11,827
11,660
—300
17,027
15,258
12,360
11,827
11,360
5,715
6,823
23
5,779
3,681
-217
5,297
6,351
5,974
6,712
5,399
3,129
5,655
3,588
5,555
6,823
23
5,748
3,744
-216
6,292
7,136
6
5,900
3,930
-306
2,957
167
3,783
180
289
189
248
1,333
4,359
52
166
219
1,914
5,284
96
95
202
23,601
26,316
27,807
30,549
1,333
25,519
74
148
217
—1
_
1978
1979
1980
estimate estimate estimate
100,138
15
3,902
1,048
5
1
49,096
Deductions for offsetting receipts
Outlays
1977
actual
3,800
978
3
—*
93,088 103,725 114,659
-40
-644
-1,142
4,094
4,280
4,470
1,006
1,029
/, 043
4
5
6
^
1
/
98,153 108,396 119,036
—1
—1
190,885 137,004 147,640 160,024
174,345
ADDENDUM
Off-budget Federal entity:
Pension Benefit Guaranty Corporation
•$500 thousand or less.
-30
-16
-28
-30
-30
192
THE BUDGET FOR FISCAL YEAR 1979
living, as measured by the Consumer Price Index (CPI) or some
other index. In this way, benefits are protected against inflation.
Beginning in 1978, two consumer price indexes will be published,
the current index, which was designed to measure the purchasing
power of the dollar for urban wage earners and clerical workers, and
a new index, which covers all urban households. The new index
will cover about 80% of the population, double that of the current
index. Legislation is proposed to shift to the more comprehensive
all-urban index whenever the CPI is used in measuring automatic
cost-of-living increases for Federal programs linked to the CPI.
Social security.—The old-age, survivors and disability insurance
(OASDI) program is the largest single program in the budget, accounting for 21 % of total 1979 outlays. This program mitigates the loss
of earnings when a wage earner retires, becomes disabled or dies.
Participation in the program is almost universal: only Federal civilian
employees, some employees of State and local governments, nonprofit
organizations, and irregular workers are not covered. In 1977, more
than $82 billion was paid in benefits to 33.2 million individuals.
Outlays are estimated to be $93.0 billion in 1978 and $103.1 billion
in 1979.
The system is financed almost entirely from payroll taxes paid by
covered workers and their employers. In 1977 more than 100 million
workers and their employers paid $77.8 billion in payroll taxes to
finance the OASDI program.
The Social Security Amendments of 1977 made major changes to
the OASDI program to help correct the following longer range problems that confronted the program:
• An error was made in the 1972 legislative provision for automatically adjusting the benefit computation formula to the
rise in the cost-of-living. The formula unintentionally allowed
future benefits to rise faster than the growth in either prices or
wages, and would have ultimately increased program costs by the
equivalent of a 37% increase in taxes on employers and employees.
• A long-range decline in birth rates was not foreseen in earlier
projections of program costs. The effect of such a decline means
that there will be fewer workers in future years to pay for the
cost of benefits and that each worker's share of the cost will be
higher than estimated.
• Earlier projections of the long-range growth of the economy were
overoptimistic. As a result, the total revenues from payroll
taxes were overestimated and the total outlays for future benefits
were understated.
Some corrections were also needed because of short-range considerations. The recession, which began in 1974, increased unemployment
MEETING NATIONAL NEEDS
193
and reduced wage and salary incomes, thus reducing anticipated
revenues during this period. At the same time, inflation raised benefit
costs faster than contemplated. New revenues were needed quickly
to avoid exhausting reserves by the early 1980's.
To remedy these problem^ the benefit formula, tax rates, and
wage base were all corrected. The Social Security Amendments of
1977 revised the benefit formula to correct the excess growth in future
benefits. This action has been called decoupling and indexing," and
will stabilize future benefits for those who retire in the future at an
average of about 4 0 % of preretirement covered earnings, and about
60% for a married person whose spouse had no covered earnings.
The more immediate impact of the social security amendments
will be to increase payroll taxes substantially over the next few years
by raising both the maximum earnings subject to tax and the tax
rate itself.
The legislation also raised the limit on the amount that may be
earned after retirement without offsetting benefit reductions. The
annual earnings limitation would be increased from $3,000 in 1977 to
$6,000 by 1982 for persons aged 65 and over as seen in the table below.
The legislation would also lower the age at which the beneficiary would
be exempt from any annual earnings limitation from age 72 at present
to age 70 beginning in 1982.
Elimination of outmoded or windfall benefits still needs to be
addressed to further improve equity and the financial integrity of
the social security system. The administration is therefore proposing
legislation in 1979 to:
• Eliminate the minimum benefit for new beneficiaries, and freeze
the minimum benefit for those already on the rolls. Supplemental
ANNUAL EARNINGS LIMITATION FOR SOCIAL SECURITY RETIREES
[Calendar years]
Previous
law
Beginning Jan. 1
1977
1978
1979
1980
198L
1982
_
_
._
_
_
_
$3,000
3,240
3,480
3,720
3,960
4,200
After amendments
Persons
under
age 65
0)
$3,240
3,480
3,720
3,960
4,200
Persons
over
age 65
0)
$4,000
4,500
5,000
5,500
6,000
1
Not applicable.
Note.— Persons age 70 or over would not be subject to retirement test beginning in 1982, the
corresponding age under previous law was 72, which remains in effect until 1982.
194
THE BUDGET FOR FISCAL YEAR 1979
security income is the more appropriate source of income for the
truly needy. The minimum benefit is a windfall for others who
are not solely dependent on social security.
• Limit retroactive benefit claims to 3 months instead of the
present 12 months. The payment of a sizable amount of retroactive benefits, which is frequent under present law, is not necessary to replace current income that is lost because of retirement,
death, or disability.
• Start benefits to retired workers and their dependents for the
month in which all eligibility requirements are met on the first
of the month.
• Limit the amount of benefits paid to dependents over age 18,
while they are in school, to the maximum amount available
under the basic educational opportunity grants program.
As required by the 1977 amendments, the administration will engage in studies on extension of social security coverage to sectors not
already covered, to provide greater equity in benefits for dependents,
and to review the whole range of social security functions in relation
to other retirement systems.
Railroad retirement.—In 1979, 1,025,000 retired or disabled railroad
workers, their spouses, and dependents will receive retirement, survivors, and disability benefits, a 5,000 decrease from 1978. Railroad
retirement outlays are estimated to rise from $3.8 billion in 1977 to
$4.1 billion in 1978 and $4.3 billion in 1979.
The railroad retirement system is administered by the Federal
Government for the workers and dependents in this one industrial
sector. The railroad retirement system includes the provision of
windfall benefits to certain beneficiaries entitled to both social security
and railroad retirement benefits. The general taxpayer has subsidized
the cost of providing these windfall benefits to railroad beneficiaries
each year since 1976.
The budget reflects a policy that will treat all windfall recipients
similarly and no longer index the initial windfall benefit for workers
who retire after December 31, 1978. Windfall benefits are not indexed
for current recipients. The annual windfall subsidy from the Federal
Government to the railroad retirement system through the year 2000
under this plan is currently projected at $313 million in outlays.
Special benefits for disabled coal miners.—The Federal Coal Mine
Health and Safety Act of 1969 established monthly benefit payments
to coal miners who are totally disabled from pneumoconiosis and to
their widows and surviving dependents. Benefit payments financed
out of Federal funds increase automatically with annual increases in
GS-2 Federal salary levels, and are estimated to total about $1.0
MEETING NATIONAL NEEDS
195
billion annually in 1978 and 1979. It is estimated that an increase in the
level of average benefits will be partially offset by a reduction in the
number of beneficiaries from 487,000 in 1977 to 467,000 in 1978, and
to 445,000 in 1979. Since 1972, benefits for miners newly found
eligible have been the responsibility of the operator of the coal
mine in which the miner worked. If no responsible operator can be
indentified, the Federal Government still pays the benefit.
Pension Benefit Guaranty Corporation,—The Pension Benefit Guaranty Corporation, an off-budget Federal entity, was established by
the Employee Retirement Income Security Act of 1974 to protect
the vested benefits of workers in covered pension plans in case a plan
terminates. Employers with covered plans pay an annual premium to
cover the Corporation's costs of taking over terminated pension
plans and paying benefits when due. Employers whose plans terminate
are liable for the unfunded portion of vested retirement benefits to
the extent it does not exceed 30% of their net worth. The Corporation's income is expected to exceed outlays by $28 million in 1978
and $30 million in 1979. These estimates reflect a January 1, 1978,
increase in the insurance premium for single-employer plans to $2.60
for each participant in a plan. A recently enacted law deferred coverage of multi-employer plans until January 1, 1979. The new law also
requires the Corporation to study the impact that such coverage
will have on its financial situation and develop any needed recommendations.
Tax expenditures.—Several tax expenditure provisions are related
to the income of the aged. The major items are the exclusion from
income subject to tax of all social security and most railroad retirement benefits without regard to an individual's income from other
sources, the extra exemption for taxpayers 65 or over, and the tax
credit for the elderly. The combined benefits under current law to
the retired and elderly from these tax expenditures is estimated to
be $6.2 billion in 1978 and $6.8 billion in 1979. The tax reform proposals would reduce tax liabilities for most elderly persons currently
subject to tax by substituting a credit for the current deduction for
personal exemptions, including the extra exemption for taxpayers 65
or over. Because of these reductions in the tax rate schedules, the
tax expenditures related to the income of the aged will decrease.
Other tax provisions assist the economic security of aged persons
by promoting private pension programs. The largest benefits result
from excluding employer contributions to and current earnings of
qualified pension funds from employee income subject to tax. Taking
into account deferred taxes collected from present retirees, the net
loss in receipts is estimated to be $9.9 billion in 1979. Similar benefits
196
THE BUDGET FOR FISCAL YEAR 1979
for the self-employed and employees not covered by employer pension
plans will result in an estimated tax expenditure of $1.8 billion in
1979. The administration is proposing new rules that would require
tax-favored employer retirement plans integrated with social security
benefits not to discriminate against lower compensated employees.
Disabled persons benefit from the exemption from taxation of (1)
disability insurance benefits under social security; (2) worker's compensation benefits; (3) sick pay; and (4) employer contributions to
disability insurance plans. In 1979, these provisions are estimated to
reduce individual income taxes by $0.5 billion, $0.8 billion, $0.1
billion, and $0.1 billion, respectively.
Federal employee retirement and disability insurance.—Outlays for Federal retirement and non-work-related disability insurance
are estimated to increase from $10.5 billion in 1978 to $11.8 billion in
1979. These Federal programs are estimated to have 1.6 million beneficiaries in 1979. Military retirement is discussed under the defense
national need.
The President has proposed that a commission be established to
consider the civil service retirement system, other Federal retirement
programs, State and local, and private pension plans. The interrelationships among public and private retirement survivor and disability
systems and the implications of retirement issues for the future will be
the major focus of the commission. Legislation for a 2-year Commission will be proposed. The work of this Commission will be closely coordinated with that of the Advisory Council on Social Security which
will be appointed during the year.
The Department of Labor provides tax-free cash and medical benefits to Federal employees, or their survivors, for job-related injuries,
illnesses, or deaths. Other Federal agencies subsequently reimburse
the Department for payments made on behalf of their employees.
Approximately 46,500 workers with long-term disabilities or their
survivors are expected to receive monthly payments in 1978 and
49,000 in 1979. Another 97,000 in 1978 and 104,000 in 1979 are
expected to have their regular pay continued for up to 45 days,
mostly for short-term disabilities. Outlays are estimated to decline
from $292 million in 1978 to $228 million in 1979 as reimbursements
from other agencies increase.
Although Federal employment has been relatively stable for years,
injury reports and costs continue to rise; for example, claims for longterm benefits have risen 52% in the last 3 years. To insure prompt
claims processing and to minimize abuse and error, the Department of
Labor is installing an automated case-management support system,
reorganizing workload processing, and implementing recommendations
of a departmental task force.
MEETING NATIONAL NEEDS
197
Unemployment compensation.—The mission of unemployment
compensation is twofold. For individuals it provides support while
those temporarily out of work search for a job. For the economy as
a whole it supports aggregate purchasing power during slack periods
by providing income to the unemployed. By 1979, some 97% of all
wage and salaried employment in the United States will be covered
by unemployment compensation. It is estimated that an average of
3.4 million workers per week will receive unemployment benefits during
1978, and 3.0 million in 1979, compared to 4.3 million in 1977. As the
economy improves, outlays for unemployment compensation are projected to decline from $15.3 billion in 1977 to $12.4 billion in 1978 and
$11.8 billion in 1979. The President's tax reduction proposals calls for
a decrease in the Federal unemployment tax rate from 0.7% to 0.5%
on January 1, 1979. This will reduce revenues by $600 million and
budget authority by $200 million in 1979.
The Unemployment Compensation Amendments of 1976 provided
for extension of the regular Federal-State unemployment insurance
program to most of those previously not eligible for unemployment
benefits, primarily State and local government employees and agricultural workers. On January 1, 1978, the temporary special unemployment assistance program, enacted in 1974 to pay benefits during the
recession to such ineligible workers, will pay its last claim in the final
week of June 1978. The Federal supplemental benefits program, also
enacted in 1974 to pay additional weeks of benefits to covered
workers who used up their full regular and extended benefits, will pay
its last claim in the final week of January 1978.
In 1978, the National Commission on Unemployment Compensation
will begin an evaluation of the entire unemployment compensation
program, including railroad unemployment insurance, and the
relationship of unemployment compensation to other programs.
Under current law, unemployment compensation benefits are
excluded from income subject to Federal income taxes. The tax
expenditure resulting from this provision is estimated to be $1.1 billion
in 1979. The President's tax reform proposals would include unemployment compensation in income subject to tax for single taxpayers
with annual income, including unemployment compensation, of
$20,000, and for married couples filing joint returns with income of
more than $25,000. The tax expenditure associated with the exclusion
of unemployment compensation would be reduced to $0.9 billion and
restricted to families and individuals with lower total incomes. This
change will make tax liabilities more similar for those with similar
incomes.
Public assistance and other income supplements.—This mission includes programs that provide cash, food, and shelter for people
in need. Groups eligible for such aid include families with dependent
198
THE BUDGET FOR FISCAL YEAR 1979
children, the aged, the blind, and the disabled. A major administration proposal—the program for better jobs and income—would consolidate some of the programs that fulfill this mission.
The program for better jobs and income.—The program for better
jobs and income was proposed by the administration to reform the
array of disparate, often conflicting welfare programs for the poor.
There are three major components to the program: cash benefits, jobs,
and the earned income tax credit. The cash component of the program, which would begin in July 1981, would establish Federal basic
benefit levels for various categories of the poor, adjusted for family
size, permit supplementation of benefits by the States, and provide
fiscal relief to the States for welfare costs. The jobs component would
provide improved programs to help those expected to work find unsubsidized jobs. Up to 1.4 million minimum wage full- and part-time
jobs could be created. The jobs program would begin to build up well
in advance of the implementation date of July 1981 for the cash benefits system. The earned income tax credit which would be expanded
to provide tax relief not only to the poor, b u t also to the near poor,
will take effect January 1982.
The present AFDC, supplemental security income, and food stamp
programs would be consolidated into the cash benefits component of
this reform proposal. The costs of the proposal, as well as the programs
t h a t would be consolidated into it, are shown in the following table.
ESTIMATED COSTS OF THE PROGRAM FOR BETTER JOBS AND INCOME 1
[In billions of dollars!
Gross costs:
Cash
Jobs
Earned income tax credit (EITC)
(Present EITC)
(New EITC for those eligible for cash assistance) _
(New EITC for those ineligible for cash assistance)
_
1982
1983
7.8
6.6
26.0
9.9
3.0
(1.0)
(.6)
(1.3)
26.8
11.1
5.8
(1.0)
(1.5)
(3. 3)
14.4
38.8
43. 7
(14.4)
9.6
(37.5)
30.0
(40.4)
30.8
4.7
8.8
12.9
(4.7)
(7.5)
(9.6)
_._
Total gross costs
(Total gross costs excluding the EITC for those ineligible for
cash assistance)
Offsets 23
Net costs of the program for better jobs and income
(Net costs excluding the EITC for those ineligible for cash assistance)
1
1981
Assumes that the jobs program begins in 1980, the cash program begins on July 1, 1981, and
the2 EITC begins on Jan. 1, 1982.
These offsets include aid to families with dependent children, food stamps, supplemental security
income, the work incentive program, the present EITC, increase in social security revenues,
decrease in extended and regular unemployment insurance, decrease in CETA public sector jobs,
decrease in housing payments, reduced fraud in medicaid, and the proposed crude oil equalization
tax3 refund.
During 1982, there will be a decrease in accrued liability for the present EITC which will not
appear in disbursements until 1983.
MEETING NATIONAL NEEDS
199
Supplemental security income.—The supplemental security income
(SSI) program, which replaced federally aided State assistance programs for the aged, the blind, and the disabled, provided $5.3 billion
in Federal outlays in 1977. Benefits for this program are normally
paid on the first of the month. Because October 1, 1978, falls on a
Sunday, the October benefits will be paid 2 days early, and will occur
in 1978 rather than 1979. As a result, Federal outlays are expected to
decline from $6.0 billion in 1978 to $5.6 billion in 1979.
The high error rates associated with the program's initial years
have been markedly reduced. The Department of Health, Education,
and Welfare is moving to review management practices, target staff
resources on error-prone cases, and extensively cross-check benefits
provided by other benefit-paying programs. The Department intends
to reduce further the number of errors and to promote program
integrity without sacrificing equity or incurring substantial new program costs. Improved management techniques and policies will
continue to be designed, tested, and refined in order to administer
better the SSI program and gain valuable experience for administering
the program for better jobs and income program.
Aid to families with dependent children.—The State and local programs of aid to families with dependent children (AFDC) are assisted
through Federal grants to States for maintenance assistance. These
public assistance programs provide cash benefits to needy households.
Benefit levels are determined by the States, and the average monthly
payment per family is estimated at $250 in 1978 and $261 in 1979.
An estimated 11.0 million individuals, or 3.6 million families are
expected to receive benefits in 1979. Outlays are expected to rise to
$6.8 billion in 1979, compared to $6.7 billion in 1978. The growth in
these costs is due to a projected increase in the average benefit payment, augmented by a small increase in the number of recipients.
The Department of Health, Education, and Welfare is working closely
with the States in a quality control effort to reduce errors and abuses
in the program. In addition, child support payments are being collected from parents who are legally liable for such support. This
effort results in a decrease in Federal, State, and local AFDC expenditures. Total collections are anticipated to be $600 million in
1979, compared to $525 million in 1978. Legislation is pending that
would make the AFDC income allowed for work-related expenses
more uniform among the States and reduce possible abuse of this
disregard. Legislation is proposed to double Federal support for
AFDC programs in the territories of Puerto Rico, Guam, and the
Virgin Islands, to permit the provision of child support enforcement
services to certain non-AFDC cases, to expand and revise the emergency assistance program to help low income persons better meet
200
THE BUDGET FOR FISCAL YEAR 1979
energy and other emergencies, and to eliminate interstate incentives
payments in the child support enforcement program which are cumbersome to administer. In 1978, $187 million in outlays will be paid
to the State on a one time basis to provide them fiscal relief for welfare
payments. Future fiscal relief for welfare costs is proposed in the better
jobs and income program.
Food stamps.—The food stamp program was designed to assure
needy families an opportunity to purchase food for an adequate diet
and to strengthen the agricultural sector of the economy. Outlays
are estimated to be $5.7 billion in both 1978 and 1979. Beneficiaries
in those years are expected to be 17.7 million and 18.0 million, respectively.
The Food Stamp Act of 1977 tightens eligibility requirements and
eliminates those households with the highest incomes, improves access
to the program by those in need, deters fraud, and simplifies program
operations. Major features of the new legislation include:
• the reduction of food stamp net income limits to the poverty
line;
• the elimination of the food stamp purchase requirement;
• the replacement of most itemized deductions with a standard
deduction;
• tightening of work requirements;
• disqualification of persons who have committed fraud; and
• several provisions aimed at reaching more of the low-income
elderly.
In 1981 the food stamp program will become part of the proposed
program for better jobs and income.
School lunch and other nutrition programs.—This complex and overlapping array of food programs began in the early 1940's as price
support and surplus commodity distribution programs. Outlays are
estimated to total $3.5 billion in 1979.
The current child nutrition programs will be continued, with
legislative modifications designed to target future increases in Federal
spending more on needy children and needy areas. Included is a proposal to modify the cost-of-living increases for subsidies to children
from nonneedy families. The legislation also will mandate operation
of the school breakfast program in schools with a substantial percentage of needy children.
The administration will propose a major expansion of the special
supplemental food program for women, infants, and children (WIC).
Evidence indicates that this program is having marked success in
reducing anemia and the incidence of low birth-weight infants. Therefore, as a part of the administration's commitment to assuring the
MEETING NATIONAL NEEDS
201
sound development of children and the provision of services to newmothers, estimated outlays of $530 million in 1979 are included in
the budget. This represents an increase of $168 million in outlays over
1978. The legislation will also more closely align this program with the
similar but smaller commodity supplemental food program.
Legislation also will be proposed to end the operation of the special
milk program in schools participating in the school feeding programs
in order to eliminate the overlap between these programs. Milk is
already a required component of both the school lunch and breakfast
programs.
Crude oil equalization refund.—As a part of the administration's
energy legislation, most people will receive their refund from the crude
oil equalization tax in the form of a reduction in their income tax.
Individuals who do not pay income tax will receive the refund in the
form of a direct payment. These payments will total an estimated $167
million of outlays in 1978 and $1.3 billion in 1979.
Housing assistance.—The Department of Housing and Urban Development (HUD) provides housing assistance to low-income families
to improve their opportunity to secure decent housing. The 1979
budget request would provide rental housing assistance to an additional 400,000 low-income families, and homeownership assistance to
an additional 50,000 moderate-income households. Total budget
authority required to support these long-term additional assisted
housing commitments is over $31 billion, of which $24.7 billion will be
new and $6.4 billion carryover authority. The total number of families
receiving housing assistance is estimated to increase from 2.6 million
in 1977 to 3.1 million 1979. Total outlays for housing assistance are
estimated to rise from $3.8 billion in 1978 to $4.4 billion in 1979—an
increase of over 16%.
Housing assistance is currently provided through three major
activities within HUD's subsidized housing programs: lower income
housing assistance, public housing, and homeownership assistance.
The most important of these programs—lower income housing assistance (section 8)—provides rental subsidies to participating families
equal to the difference between market rents and 15-25% of family
income. These rental subsidies are paid over a 15- to 40-year period
for tenants in newly constructed, rehabilitated, and existing units.
The budget proposes additional section 8 assistance for 344,000 lowincome families in 1979, requiring budget authority of $23.3 billion.
This is an increase of 10% above the 313,870 additional families to be
assisted in 1978. The mix of existing, rehabilitated, and new units to
be subsidized in 1979 is consistent with local community needs as
202
THE BUDGET FOR FISCAL YEAR 1979
reflected in their housing assistance plans. The budget also initiates a
new moderate rehabilitation activity, involving less extensive repair
work than substantial rehabilitation. Outlays from the section 8
program are estimated to increase from $876 million in 1978 to $1.3
billion in 1979. Average cost per unit of section 8 housing is estimated
as follows:
• $180,000 over 40 years for State agency-financed new construction;
• $126,000 over 30 years for private new construction; and
• $33,000 over 15 years for existing housing.
Public housing, including housing for reservation Indians, is the
other major active rental assistance program within the subsidized
housing programs. In 1979, the budget proposes providing another
56,000 units of public housing, requiring budget authority of $6.8
billion. In addition, the budget provides $400 million in budget
authority to amend previous contracts, and another $750 million in
budget authority for modernization to improve existing public housing
projects. Most existing public housing projects also receive an operating subsidy to fill the projected gap between the operating costs
estimated for "well-run" projects under the performance funding
system and anticipated revenues from rent collections. The budget
requests $729 million in budget authority in 1979 for public housing
operating subsidies. Outlays under this program are estimated to
increase from $612 million in 1978, to $686 million in 1979. The
administration has undertaken a study of the performance funding
system to update and improve the method used to determine operating
subsidies. Total outlays for public housing are estimated to increase
from $1.7 billion in 1978 to $1.9 billion in 1979.
Another subsidized housing program is the homeownership program
that helps families become homeowners by subsidizing mortgage payments down to an effective rate of a 5% mortgage. In 1979, an
additional 50,000 households are expected to receive homeownership
assistance under the current program using authority provided by
the Congress in past years. Outlays for homeownership assistance are
estimated to increase from $125 million in 1978 to $137 million in 1979
and $163 million in 1980.
The budget also proposes initiating a new troubled projects operating subsidy for subsidized, FHA-insured, multifamily projects in
financial difficulty. This proposed program would provide the difference between the HUD-approved operating costs and projected rents,
and would help defray additional rent burdens for low-income tenants,
while mandating management improvements for participants. Budget
authority of $74 million is requested for 1979, and outlays are estimated to be $52 million in 1979.
MEETING NATIONAL NEEDS
203
CREDIT PROGRAMS-INCOME SECURITY
[In millions of dollars]
Program
1977
actual
1978
estimate
1979
estimate
Public housing operation and construction:
Direct loans:
New loans
Repayments, sales, and adjustments (—•)
238
— 264
605
—601
607
—603
-26
3
3
_...
9,118
477
10,653
1,353
12,381
2,280
__
*
—1
—1
_.
—1
-1
-1
-1
Net credit outlays
Guaranteed loans:
New loans
Net credit guaranteed
Assistance to refugees:
Direct loans:
Newloans__
Repayments, sales, and adjustments (—)
Net credit outlays
_
*$500 thousand or less.
Refugee assistance.—Assistance is provided to two groups of refugees
who fled their countries in large numbers—those from Cuba and
Southeast Asia. This program reimburses States for cash payments
and for medical and social services provided to needy refugees, and
makes special grants to enhance the refugees' English language and
employment skills to aid their integration into American society.
Outlays for this program are estimated to be $189 million in 1978
and $166 million in 1979. As this integration proceeds and the refugees
become increasingly self-sufficient, special Federal assistance for the
refugees will be phased out and the refugees' welfare needs will be met
by the regular national assistance programs.
A related activity is the resettlement of emigrating Soviet Jews—
funds for this purpose are included in the international affairs function
under the auspices of the Department of State.
Other public assistance.—In 1977 the Community Services Administration (CSA) received $200 million budget authority to relieve the
high cost of home fuel for the low income during the severe 1976-77
winter weather. A 1978 supplemental for CSA to administer an
emergency energy program on a contingency basis is pending before
the Congress. This temporary program will be replaced by an ex-
204
THE BUDGET FOR FISCAL YEAR 1979
panded emergency assistance component of the AFDC program under
legislation pending in the Congress.
Earned income credit—Low-income families with dependents are
eligible for a tax credit equal to 10% of earned income with a maximum
credit of $400. When the credit exceeds any taxes owed, the Government pays the difference to the family in cash, and this payment is
treated as a reduction in budget receipts. In prior-year budgets these
payments were treated as outlays. The entire reduction in receipts
resulting from the earned income credit is a tax expenditure of $1.2
billion in 1978 and $1.2 billion in 1979. The President's tax proposals
include extension of the earned income credit beyond its expiration
date under current law at the end of calendar year 1978. The credit
would be expanded in January 1982 as a part of welfare reform.
Other tax expenditures.—The
acquisition of life insurance
is encouraged by the exclusion of interest of life insurance savings
from tax, resulting in a $2.0 billion tax expenditure in 1979. The
exclusion of premiums paid on group term life insurance by employers
from employee income results in a tax expenditure of $0.8 billion in
1979.
Related programs.—There are a number of other programs that
are related to income security, but their primary purpose is to meet
other national needs and serve other major missions. The following
table lists these income security-related programs that support other
missions.
MEETING NATIONAL NEEDS
205
FEDERAL OUTLAYS FOR INCOME SECURITY-RELATED BENEFITS SUPPORTING
OTHER MAJOR MISSIONS
[In millions of dollars]
Benefit outlay*
Department, agency, and program
1977
actual
Department of Health, Education, and Welfare:
Hospital insurance
Supplementary medical insurance
Medicaid
Public Health Service officers retirement _
_
Medical care for retired commissioned officers
.
Total, Department of Health, Education, and Welfare....
Veterans Administration:
Disability and dependency and indemnity compensation
Veterans and survivors pensions
Life insurance (net subsidy) __
_
Other veterans benefits
Total, Veterans Administration. _
Department of Defense—Military:
Military retirement
Medical care for retirees
Total, Department of Defense—Military
Department of Transportation:
Coast Guard retirement
1979
estimate
14,906
5,865
9,181
28
6
17,529
7,075
10,846
31
7
20,543
8,411
11,952
35
9
29,986
35,488
40,950
5,722
3,114
535
192
9,563
_
1978
estimate
6,122
3,269
545
218
10,154
6,459
3,457
561
217
10,694
8.216
715
9,211
787
10.129
866
8.931
9,998
10,995
140
158
174
50
54
58
2
3
3
48,672
55,855
62,874
Department of t h e Interior:
General assistance to Indians
Department of Commerce:
National Oceanographic and Atmospheric Administration officers retirement
_
Total outlays
260-000 O - 78 - 14
206
THE BUDGET FOR FISCAL YEAR 1979
VETERANS BENEFITS AND SERVICES
National Needs Statement:
• To help veterans of draft and wartime service return to
civilian life on a social and economic basis comparable to
their peers who did not perform military duty.
• To provide medical care to veterans for all disabilities
incurred while in military service.
• To compensate service-disabled veterans for their loss of
earning power.
• To compensate the families of veterans killed in service
or dying from service-related disabilities for the reduction
in the family's earning power.
• To provide financial assistance to needy veterans and
their families.
The statement of national needs recognizes the many different
levels of sacrifice that veterans have made, and supports benefits
that are appropriate to these sacrifices. The administration recognizes
the important obligation of the Government to provide veterans the
highest quality medical care for disabilities incurred in the service of
our country. The administration also recognizes the Government's
commitment to assist in the readjustment of veterans to civilian life.
This budget targets resources to programs supporting those needs.
To address these needs in 1979, the Federal Government will
spend an estimated $19.3 billion in support of the following major
missions:
• Income security for veterans: $10.3 billion.
• Veterans education, training, and rehabilitation: $2.6 billion.
• Hospital and medical care for veterans: $5.8 billion.
• Veterans housing: $15 billion in new loans and loan guarantees,
with net outlays of —$55 million.
• Other veterans benefits and services: $0.7 billion.
To help carry out these missions, a number of initiatives are reflected in the 1979 budget. The major proposals are:
• Establish contract programs to treat drug and alcohol abuse, and
to provide mental and psychological readjustment services to
Vietnam veterans.
• Continue support of proposed legislation to require health insurers
to reimburse the VA for care of insured patients' non-serviceconnected disabilities.
• Continue to seek legislation to limit travel reimbursement for
veterans treated for non-service-connected disabilities.
MEETING NATIONAL NEEDS
207
• Propose legislation to provide cost-of-living increases in compensation benefits.
• Propose legislation to provide improvements in the pension
system.
• Reduce the number of operating beds in VA hospitals by 3,100 in
1979 and make further reductions in 1980 in order to meet privacy
and safety standards, and to improve the quality of medical
services.
• Support proposed legislation to end enrollments in general flight
training and correspondence courses that do not promote the
readjustment of veterans to civilian life.
This budget also reflects changes in veterans needs that are occurring with the changing age structure of the population of veterans
and their survivors. As the veteran population ages, demands for
veterans benefits shift. The demand for educational benefits is anticipated to continue to decline as Vietnam veterans of the peak discharge
years, 1969-71, pass beyond the period of eligibility, while the demand
for pension and medical care benefits can be expected to grow as
veterans age. In part, this is because veterans, on reaching age 65,
are automatically considered to be disabled under existing law. In
addition, the need for financial assistance and medical care grows rapidly with age.
Potential Veteran Beneficiaries, 1975-2000
Millions of Benefidariei
A 3 ed 65 and Over
Surviving Spouses
(Eligible for Pensions)
Veterans (Eligible for
Medical Care and Pensions)
1975
Gtfemlar V«f j j j
208
THE BUDGET FOR FISCAL YEAR 1979
NATIONAL NEED: PROVIDING VETERANS BENEFITS AND SERVICES
[Functional code 700; in millions of dollars]
Major missions and programs
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
1979
estimate estimate
1980
estimate
Income security for veterans:
Compensation and pensions:
Service-connected compensation
Proposed legislation
Nonservice-connected pensions
Proposed legislation
Other veterans income security
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._
173
6.175
284
3.235
111
177
6,180
666
3,184
345
183
698
71
-67
-486
700
64
-75
-507
750
69
-56
-469
794
65
-27
-462
10.535
9,216
9,745
10,275
10,928
2,193
-100
3,710
3,142
2,730
-100
2,340
-83
2.093
3.710
3,142
2,630
2,257
5.280
-142
422
236
4,291
4,904
242
176
328
205
5,276
-142
409
214
5,379
-133
467
209
5,795
4. 708
5.436
5. 757
5,921
I
-139
54
-75
27
-73
64
-73
— 10
—9
—3
—145
—31
—55
—12
628
—1
26
524
598
25
28
626
—1
27
591
—/
26
653
549
625
652
616
-3
-I
-3
-3
-3
19,074
18,038
18,916
19,257
19,708
6.168
310
3.232
111
177
5,722
6.122
3.113
3.269
164
964
36
6
-469
Veterans education, training, and rehabilitation:
Existing law
Proposed legislation
Subtotal, education, training, and rehabilitation
Hospital and medical care for veterans:
Medical care and hospital services
Proposed legislation
Construction
Medical administration, research, and otherSubtotal, hospital and medical c a r e . . . .
Veterans housing:
Loan guaranty revolving fund
Direct loan revolving fund
Other ( H U D participation sales trust fund).
—7
Subtotal, veterans housing
Other veterans benefits and services:
Undistributed overhead and other
Proposed legislation
Non-VA support programs.
Subtotal, other benefits and services
Deductions for offsetting receipts
Total
MEETING NATIONAL NEEDS
209
Income security for veterans.—In addition to general Federal
income security programs, such as social security, several programs
help certain veterans and their survivors maintain their income when
the veteran is disabled, aged, or deceased. Outlays for veterans income
security programs are estimated to be $10.3 billion in 1979.
Service-connected compensation.—Monthly compensation payments
are provided to veterans who are disabled as a result of military
service. The amount of the benefit relates to the degree to which
earnings are impaired as a result of disability. Dependency and
indemnity compensation payments are made to survivors of veterans
who die from service-connected injuries. Recently enacted legislation
increased benefits by 6.6% for veterans and survivors, effective
in October 1977. An estimated 2.6 million veterans and their survivors
will receive $6.5 billion in compensation benefits in 1979. Legislation
will be proposed to provide a 5.8% cost-of-living increase in compensation benefits, effective in October 1978.
Non-service-connected pensions.—Pensions are provided to needy
wartime-service veterans who are aged or have become disabled
subsequent to their military service. Needy survivors of wartimeservice veterans also may qualify for pension benefits based on
demonstrated financial need. Recent legislation raised pension rates
by 6.5% effective January 1, 1978. An estimated 2.3 million veterans
and their survivors will receive $3.3 billion in pension benefits in 1979.
$111 million of outlays are included in the budget for improvements
in the pension system.
Burial and other benefits.—Families of deceased veterans who are
buried in private cemeteries rather than VA National Cemeteries may
receive allowances to apply toward the purchase of burial plots.
Families of deceased veterans also receive burial benefits to assist in
defraying veterans funeral expenses. Outlays for burial and other
allowances are estimated to be $177 million in 1979.
Life insurance.—Insurance programs for veterans and their survivors
will provide $33.4 billion of coverage to 4.7 million families in 1979.
The servicemen's group life insurance program for military personnel
will provide $63.5 billion of coverage to 3.2 million families in 1979.
Veterans education, training, and rehabilitation.—The veterans education, training, and rehabilitation mission is carried out
through the GI bill, which provides education benefits ranging from
college courses to vocational and on-the-job training. These benefits
help veterans who entered military service before 1977 make the
210
THE BUDGET FOR FISCAL YEAR 1979
transition from military to civilian life by helping them obtain the
education they might have received had they not served their country
in a time of national emergency. Active duty servicemen and widows
and children of veterans who have died or been totally disabled in
military service also are eligible for these benefits. Service-disabled
veterans with significant disabilities can choose between regular GI
bill benefits or vocational rehabilitation training. Those who enter
military service after 1976 are eligible for a new education program
that allows them to set aside $50 to $75 from their monthly pay.
These amounts are matched by the Government and returned in
education payments after discharge.
The number of trainees will continue to drop in the future as the
number of eligible veterans becomes smaller. In 1979, 1.3 million
GI bill trainees are expected to participate in the program, a reduction
from 1.6 million in 1978. Thus, despite an average increase in GI
bill benefits of 6.6%, effective October 1, 1977, outlays are estimated
to decline from $3.1 billion in 1978, to $2.6 billion in 1979.
The administration is again proposing legislation to end enrollments in general flight training and correspondence courses that do
not promote the readjustment of veterans to civilian life. The budget
estimates assume enactment of this proposal, which would result in
savings of $100 million in 1979.
In addition to the 6.6% increase in GI bill education program
benefits effective October 1, 1977, the GI Bill Improvement Act of
1977 provided a 2-year extension of education loan eligibility to some
trainees and permits forgiving up to two-thirds of an individual's
education loan under certain conditions.
Hospital and medical care for veterans.—The Veterans Administration achieves the mission of providing hospital and medical
care to veterans by operating a nationwide civilian medical care
system. In 1979, it will operate 172 hospitals, 228 outpatient clinics,
92 nursing homes, and 16 domiciliaries. Outlays for medical programs
are expected to be $5.4 billion in 1978 and to rise to $5.8 billion in 1979.
Medical care and hospital services.—In 1979, the VA will increase its
emphasis on the care of veterans with service-connected disabilities,
Vietnam veterans and the rapidly growing population of elderly
veterans. In order to concentrate medical care on these veterans, to
meet privacy and other standards, and to free resources for new treatment programs, VA will reduce its hospital system by 3,100 beds in
1979, and make further reductions in 1980. Currently, 70% of VA
inpatient care is devoted to treating veterans' non-service-connected
disabilities. To the extent that available facilities and staff are not
MEETING NATIONAL NEEDS
211
utilized fully for veterans injured in the service of the Nation, services
also will be available for other veterans unable to pay the cost of
medical care.
Legislation is again proposed that seeks reimbursement to the VA
from health insurers for treatment of insured veterans' non-serviceconnected disabilities. This recognizes that an insurer's obligation to
premium-paying veterans is no different from its obligation to insured
nonveterans. Additional legislation is again being proposed to limit
travel reimbursement for those veterans treated for non-serviceconnected disabilities. These legislative proposals would help focus
VA resources on the provision of quality care to those with serviceconnected disabilities and are expected to save $158 million in 1979
and 1980. The budget assumes continued authority for incentive pay
for medical personnel.
In 1979, medical care for veterans will be improved through the
opening of 15 new alcohol treatment units, and through two proposed
new programs. Authority will be sought to allow VA to contract
with community halfway houses and other programs for a pilot drug
and alcohol treatment effort. Also, legislation will be proposed to
establish a program of mental and psychological readjustment services
for Vietnam era veterans.
In adjusting to the growing number of aging veterans, VA will
increase the number of nursing home beds by 702 and will increase
training programs dealing with geriatric care. Other medical programs also will target services on aging and physically disabled
veterans.
The 1979 budget provides outlays for medical and prosthetic research in such varied areas as spinal cord and aging research, and
adaptive equipment for disabled veterans. New funding in 1979 also
will be directed towards expanding VA's cooperative studies research
program, and will support full-year operation of a new rehabilitation
research center at Hines, 111. The budget also requests funds to
support commitments to health manpower training programs.
Construction of hospital and extended care facilities.—Budget authority of $220 million is requested for 1979 to fund the construction of
VA replacement hospitals at Seattle, Wash., and Portland, Oreg.
Additional budget authority of $197 million is requested for 1979 to
support renovation and construction of medical facilities. Included
is funding for new nursing homes and outpatient facilities. Finally,
budget authority of $5 million is requested in 1979 for grants to States
for the construction of extended care facilities, permitting the establishment or repair of additional State veterans homes for the care of
aging veterans.
212
THE BUDGET FOR FISCAL YEAR 1979
CREDIT PROGRAMS-VETERANS BENEFITS AND SERVICES
[In millions of dollars]
1977
Program
1979
1978
Income security programs:
Direct loans:
New loans
_
Repayments, sales, and adjustments (—)
_
_
Net credit outlays
134
-125
118
-112
115
-108
9
6
7
15
77
-4
84
-7
14
73
77
434
-617
478
-560
534
-611
-183
-82
-77
13,436
7,161
14,874
7.879
15,230
Education programs:
Direct loans:
New loans.
__
Repayments, sales, and adjustments (—)
___
-1
Net credit outlays
Housing programs:
Direct loans:
New loans
_
Repayments, sales, and adjustments (—)*
Net credit outlays
Guaranteed loans:2
New loans
Net credit guaranteed
3
_
__ __.
8,076
Includes loans counted as direct loans of other accounts.
Veterans housing.—To meet the mission of veterans housing, the
VA mortgage loan guarantee and direct loan programs are expected to
assist 375,000 veterans obtain mortgage loans totaling $15.0 billion in
1979.
Other veterans benefits and services.—The Veterans Administration administers a National Cemetery System for burial of eligible
veterans, servicemen, and their survivors. Under administration
policy one large active national cemetery will be designated as the
regional cemetery in each of the 10 Federal regions. New regional
cemeteries are under construction in regions I, II, III, and IX; existing cemeteries have been designated in regions VI, VII, VIII, and X;
and site selection is underway in regions IV and V. The National
Capital area's cemetery capacity is being expanded by the construction of an annex at Quantico, Va.
Other VA expenditures include the costs of undistributed nonmedical program administration, both in VA headquarters and in
MEETING NATIONAL NEEDS
213
field units. Outlays for these programs are estimated to be $625
million in 1979.
Related programs.—In addition to the programs discussed above,
there are a number of programs with other primary missions that also
assist veterans. For example, the Department of Labor has instituted
a program to assist in finding employment for those who suffer extremely high rates of unemployment, including young Vietnam era
veterans. $145 million has been set aside for use in 1978 and 1979.
The Department of Labor also monitors the State employment
service agencies to insure that veterans receive the priority service
they are accorded by law. Firms holding Government contracts are
required to list their job vacancies with the State employment service
and are required to take affirmative action to employ Vietnam era
and handicapped veterans.
214
THE BUDGET FOR FISCAL YEAR 1979
ADMINISTRATION OF JUSTICE
National Needs Statement:
• Protect interests of the public in legal matters.
• Provide fair and prompt prosecution and trial procedures.
• Help to improve State and local criminal justice systems.
• Maintain public order and enforce Federal statutes.
• Provide detention and correctional facilities for those
charged with or convicted of violating Federal laws.
To address national needs in the administration of justice in 1979,
the Federal Government will spend an estimated $4.2 billion in support
of the following major missions:
• Federal law enforcement activities: $2.0 billion.
• Federal litigative and judicial activities: $1.1 billion.
• Federal correctional activities: $373 million.
• Criminal justice assistance: $717 million.
The budget includes proposals that will improve the effectiveness of
Federal programs focused on these national needs. Resources for
Federal enforcement will be redirected toward problems of major
national concern. The Federal prison system will be improved through
the construction of new facilities and by increased use of minimum
security facilities and community treatment alternatives. Increased
resources are recommended to handle a growing litigative caseload
in order to prosecute more promptly criminal violators and to protect
the rights of all citizens.
To carry out these missions, the following proposals are included in
the budget:
• Increase resources for law enforcement efforts directed against
criminal activities of special national concern: organized crime,
public corruption, white collar crime, and drug trafficking.
• Increase staff to enforce the immigration laws and to maintain
the integrity of the borders.
• Increase the effectiveness of the Equal Employment Opportunity
Commission by reorganizing the Commission.
The major missions are supported by the programs shown in the
table on the following page.
Federal law enforcement activities.—Enforcing Federal laws
requires the largest share of outlays for the administration of justice.
To accomplish this mission, outlays are estimated to rise from $1.7
billion in 1977 to $1.9 billion in 1978 and $2.0 billion in 1979. Part of
these increases are required to meet statutory pay raises and higher
MEETING NATIONAL NEEDS
215
NATIONAL NEED: ADMINISTRATION OF JUSTICE
[Functional code 750; in millions of dollars]
Major missions and programs
Federal law enforcement activities:
General investigation
Narcotics violation investigation
Alcohol, tobacco, and firearms investigation.
Border enforcement activities
Protection activities
Other enforcement
Subtotal, Federal
activities
law
Recommended
budget
authority
for 1979
557
193
136
729
144
256
2,015
384
495
255
Subtotal, Federal litigative and judicial
activities-..
1,133
Total
520
167
117
592
123
154
1978
1979
1980
estimate estimate estimate
550
190
127
680
140
228
555
194
135
727
143
258
555
194
136
726
148
253
enforcement
Federal litigative and judicial activities:
Civil and criminal prosecution and representation
Federa 1 judicial activities
Representation of indigents in civil cases
Federal correctional activities
Criminal justice assistance
Deductions for offsetting receipts
Outlays
1977
actual
353
651
-8
4,144
1,673
1,915
317
400
125
354
468
154
842
976
240
847
-2
319
817
-8
3,600
4,019
2,011
378
497
243
1,118
373
717
-8
4,211
2,011
381
522
255
1,158
377
755
-8
4,294
operating costs. Other increases, coupled with savings realized by
reducing expenditures on lower priority programs, will support new
initiatives in high priority areas.
To reduce the impact of serious crimes of pressing national concern, the budget proposes to:
• Increase Federal Bureau of Investigation (FBI) staff directed
against organized crime by 21%.
• Expand FBI staff dealing with white collar crime and public
corruption by 10%.
• Improve Federal drug interdiction efforts by expanding border
enforcement and by increasing the Drug Enforcement Administration staff by 3%.
The FBI carries out the general investigation activities of this mission by enforcing a broad range of Federal criminal statutes. Support of this law enforcement mission is shared by the Drug Enforcement Administration, which investigates both foreign and domestic
narcotics violations.
216
THE BUDGET FOR FISCAL YEAR 1979
The Federal Bureau of Investigation and the Drug Enforcement
Administration have established joint task forces in three major pilot
cities—New York, Chicago, and Los Angeles—to investigate and to
apprehend individuals engaged in organized crime and related drug
activities, particularly those involving heroin. This task force approach
combines the diverse investigative experience of both agencies, eliminates duplication, and increases the opportunities for successful
prosecution of major violators in organized crime.
The staff increases proposed for the Federal Bureau of Investigation
in the high priority areas discussed above are accomplished by a
reallocation in employment from programs that are no longer of
pressing national importance, such as domestic intelligence, military
deserters, and those programs in which State and local authorities
have developed effective enforcement capabilities, such as the investigation of bank robberies. Outlays for the FBI are estimated to increase by $5 million to $555 million in 1979. Outlays for the Drug
Enforcement Administration are expected to be $194 million in 1979,
$3 million above 1978.
The Bureau of Alcohol, Tobacco, and Firearms will continue its
efforts to curtail illegal commerce in firearms. An intensive program
focused on illegal firearms has been underway since 1976 in three
cities: Washington, Boston, and Chicago. Employment in the Bureau
of Alcohol, Tobacco, and Firearms will be maintained at the 1978
level, while increased operating costs will cause estimated outlays to
increase slightly to $135 million.
In August 1977, the President announced major policy initiatives
directed at undocumented aliens. The President's program would:
(1) provide increased resources for border enforcement activities;
(2) make it unlawful for any employer to employ aliens who are not
authorized to work; (3) permit undocumented aliens who have lived
in the United States since 1970 to adjust to "lawful permanent resident
alien" status; and (4) create a new "temporary resident" status for
those who have been in the country continuously since before January
1, 1977. These proposals will reduce the opportunities and incentives
for illegal immigration and will provide equitable treatment for undocumented aliens already in this country.
The 1979 budget proposes substantial personnel increases for the
Immigration and Naturalization Service and for the Customs Service
to improve enforcement at the border and at ports of entry. In addition, funds are requested to add new ports of entry, to provide several
new pre-clearance centers in Canada, and to initiate an export statistics
verification program. Outlays for the Immigration and Naturalization
Service are expected to increase to $296 million in 1979. Outlays for
the Customs Service are estimated to increase to $432 million in
1979. Funds to implement the undocumented alien status adjustment
MEETING NATIONAL NEEDS
217
proposals will be requested when the necessary authorizing legislation
is enacted.
The President's reorganization project is studying ways to increase
the cost effectiveness of Federal programs dealing with border management, alien regulation, law enforcement, justice research, and utilization of Federal attorneys. The goals of these studies are to develop
proposals to eliminate duplication in facilities and support requirements and to encourage more humane, effective programs.
Other enforcement activities include those of the Equal Employment Opportunity Commission, which enforces title VII of the 1964
Civil Rights Act prohibiting job discrimination because of race, color,
national origin, sex, or religion. The 1979 budget reflects the agency's
extensive reorganization now underway. Among the changes are new
case processing systems to deal more rapidly with charges of discrimination ard an increase in investigations to correct discriminatory patterns and practices.
Other enforcement activities also include the Office for Civil Rights
in the Department of Health, Education, and Welfare. The administration is requesting a 1978 supplemental increasing the Office's staff
by over 80% to reduce the backlog of investigations of discrimination
complaints. Total budget outlays for other enforcement are expected
to increase from $228 million in 1978 to $258 million in 1979.
Federal litigative and judicial activities.—Most Federal litigation, both civil and criminal, is conducted by the Department of
Justice. Staff increases are proposed for the Washington-based legal
divisions to:
• Increase the ability of the Criminal Division of the Department
of Justice to prosecute and to coordinate major national crime
cases by expanding its staff 6%.
• Expand the staff of the Antitrust Division to support several
major ongoing cases and to initiate new ones.
• Increase other staff to meet an increasingly complex and growing
caseload.
• Increase the paralegal personnel for offices of the U.S. attorneys
to reduce the current imbalance in the ratio of the attorney to
nonattorney staff.
Outlays for litigation are estimated to increase from $354 million
in 1978 to $378 million in 1979.
By law, budget estimates for the judiciary are forwarded to the
Congress without change. For 1979, the requested outlays of the
Supreme Court, the appellate and district courts, and other judicial
activities amount to $497 million.
218
THE BUDGET FOR FISCAL YEAR 1979
The Legal Services Corporation provides aid in civil cases for lowincome clients. Since the Corporation was formed in 1975, outlays
for the program have grown from $71 million to $154 million in 1978.
The administration is requesting another significant increase for
existing and new legal services offices around the country which will
result in 1979 outlays of $243 million.
Federal correctional activities.—The Federal Government is
responsible for the care and custody of prisoners convicted of violating Federal laws and detainees held for Federal trial or sentencing. To relieve overcrowding and to close one of our oldest prisons,
funds are requested to build two new facilities. The Bureau of Prisons
also plans to open a recently constructed adult facility and a new
youth facility in 1979. The use of minimum security camps and community treatment centers will be substantially increased to reduce
overcrowding and to shift some prisoners from maximum and medium
security facilities to more humane environments. To plan for the
future, the Attorney General has appointed a task force to conduct a
comprehensive review of current correctional policies. Outlays for
correctional activities are estimated to increase from $319 million in
1978 to $373 million in 1979.
Criminal justice assistance.—The Law Enforcement Assistance
Administration assists States and localities in improving their criminal
justice systems. The Administration is considering several proposals
to reorganize civil and criminal justice financial assistance, research,
and statistical programs, in order to enhance the quality of these
programs and to improve their management. Outlays are expected to
decline from $817 million in 1978 to $717 million in 1979. To provide
greater flexibility and to streamline administration, the budget
proposes a reallocation of funds in 1979 from planning grants to
program grants.
Related programs.—A number of agencies in other functions
support the administration of justice. Many agencies and regulatory
commissions, such as the Occupational Safety and Health Administration and the Federal Trade Commission, enforce Federal laws. Over
100 agencies perform some type of law enforcement function. About 30
Federal agencies, including the Department of Agriculture, the Department of Energy, the Veterans Administration, and a few regulatory
commissions have some litigation authority independent of the
Department of Justice.
MEETING NATIONAL NEEDS
219
CREDIT PROGRAMS-ADMINISTRATION OF JUSTICE
[In millions of dollars]
Program
Law enforcement assistance:
Direct loans:
New loans.
Repayments, sales, and adjustments (—) _
Net credit outlays
1977
1978
41
— 52
41
—44
-11
-3
1979
35
— 47
-12
220
THE BUDGET FOR FISCAL YEAR 1979
GENERAL GOVERNMENT
National Needs Statement:
• Provide for a federal system of government that preserves the rights of the people of the Nation.
• Provide effective and efficient central executive policy
development and management.
• Insure accountability on the use of resources.
• Formulate tax and fiscal policies and provide for efficient
and effective financial operation of the Federal Government.
• Provide essential internal government housekeeping
services including property and personnel management.
To address national needs in general government in 1979, the
Federal Government will spend an estimated $4.3 billion in support
of the following major missions:
• Legislative functions: $941 million.
• Executive direction and management: $80 million.
• Central fiscal operations: $2.4 billion.
• General property and records management: $369 million.
• Central personnel management: $121 million.
• Other general government: $586 million.
To carry out these missions, the following proposals are included
in this budget:
• Accelerate reorganization of executive branch departments and
agencies to make the Federal Government more efficient, productive, and responsive.
• Increase personnel in the Internal Revenue Service to process
the increasing number of tax returns and to improve taxpayer
service.
• Begin modernization of the Internal Revenue Service computer
system.
• Streamline government procurement processes.
• Propose legislation to enact comprehensive reform of the Federal
civil service system.
• Accelerate construction in the Trust Territory of the Pacific
Islands.
The major missions are supported by general government programs
as shown in the following table.
MEETING NATIONAL NEEDS
221
NATIONAL NEED: GENERAL GOVERNMENT
[Functional code 800; in millions of dollars]
Recommended
budget
authority
for 1979
1977
actual
1978
estimate
1979
estimate
1980
estimate
941
841
900
941
955
81
76
80
80
81
1,790
_._
2,047
31
300
140
1,964
21
216
2,039
30
298
2,057
31
302
Subtotal, central fiscal operations..
2,378
1,930
2,201
2,367
2,390
Major missions and programs
Legislative functions
Executive direction and management
Central fiscal operations:
Collection of taxes
Proposed legislation
Other fiscal operations
_
Outlays
General property and records management:
Real property
Personal property
_
Other
9
167
189
-124
103
162
12
168
186
If
167
191
Subtotal, general property and
records management
365
141
366
369
371
123
1
100
120
—
120
1
120
/
124
100
120
121
121
..-_
157
147
53
8
266
130
153
48
7
117
165
207
53
8
199
144
147
53
8
233
159
152
54
8
455
Subtotal, other general government.
632
455
632
586
828
-159
-186
-180
-159
-161
4,361
3,357
4,119
4,304
4,585
Central personnel management:
Existing law..
Proposed legislation
Subtotal, central personnel management
Other general government:
Territories
Treasury claims
Panama Canal Zone
Federal Election Commission
Other
Deductions for offsetting receipts
Total
13
167
191
Legislative functions.—By law, the President's budget contains
estimates for the legislative branch as they are submitted by that
branch, without change. The legislative branch proposes to spend
260-000 O - 78 - 15
222
THE BUDGET FOR FISCAL YEAR 1979
$941 million in 1979 for the Congress, the General Accounting Office,
the Congressional Budget Office, and other programs to carry out this
mission.
Executive direction and management.—In response to the President's request, the Congress has granted the President special authority
in the Reorganization Act of 1977 (Public Law 95-17) to reorganize
the executive branch. Reorganization will result in more efficient
and economical management. The President will send legislation and
reorganization proposals to the Congress during both 1978 and 1979.
Administrative reorganizations will also be carried out.
In 1979, the White House Office, Executive Office of the President,
and related activities are expected to function at or near the reduced
levels recommended by the President in Reorganization Plan No. 1
of 1977, which called for the consolidation of many Executive Office
functions.
The aggregate personnel level for the White House and the Executive Office in 1979 is expected to be 1,468 full-time permanent positions
compared to the 1,685 in 1978 before the White House and Executive
Office reorganization. Outlays for the White House and Executive
Office are estimated to be $80 million in 1978 and $80 million in 1979.
This reflects a savings of $6 million in 1978 as a result of the reorganization.
Central fiscal operations.—The mission of central fiscal operations is to provide the essential financial activities necessary for the
operation of the Federal Government.
Most of the funds supporting this mission are spent on the collection of taxes by the Internal Revenue Service (IRS). The 1979 budget
requests funds for additional staff to improve taxpayer service, to
increase the matching of tax returns with wage and other documents,
to collect overdue taxes more quickly, and to process and audit the
increasing number of tax returns. IRS will also begin to modernize
its computer system.
Recently enacted legislation authorizes Treasury to earn interest on
excess balances in its tax and loan accounts, into which IRS deposits
tax receipts and from which Treasury pays the Government's bills.
Treasury, in turn, compensates banks as agents for issuing and redeeming savings bonds and for handling tax and loan accounts,
realizing net savings of $50 to $100 million annually. This cash
management tool is consistent with the President's reorganization
initiative to improve cash management throughout the executive
branch.
The 1979 budget proposes that all other financial programs be
continued at approximately the present level.
MEETING NATIONAL NEEDS
223
General property and records management.—To carry out this
mission, the General Services Administration (GSA) manages Federal
property, acts as a central procurement agency, and acts as the
custodian of the Federal Government's historical records.
Real property.—While GSA is the manager of the largest amount
of general purpose office space used by the Federal Government,
more than 10 times that amount of space is managed by other agencies
for special purposes such as military bases, post offices, laboratories,
and hospitals.
Personal property.—GSA also maintains, jointly with the Department of Defense and the civilian agencies, a national supply system
under which supplies and equipment are procured and distributed
to Federal agencies. In fulfilling part of its supply function, GSA
operates an interagency motor pool program, which provides for the
centralized leasing of motor vehicles to requesting agencies. Currently,
the lease charges to customer agencies are based on the operating
costs plus depreciation of the acquisition costs. Legislation will be
proposed to allow GSA to modify its financing method by adjusting
its lease charges to customer agencies for motor vehicles to reflect
future vehicle replacement costs.
Outlays for GSA procurement are estimated to rise from $1.3 billion
in 1978 to $1.5 billion in 1979. Other civilian agencies conduct specialized procurement, such as the National Aeronautics and Space Administration and the Department of Energy. The Department of
Defense operates the largest Federal procurement program.
Major reviews of Federal administrative services and Federal
data processing activities were begun in 1977 and will be completed
in 1978. These reviews of the activities of GSA and other civilian
agencies that provide administrative support services will focus on
ways to increase the delivery of public services, to improve efficiency
of Federal administrative services, and to reduce costs of such services.
Central personnel management.—In
November 1977, the
Federal personnel management project team completed a major study
of the civil service system. Civil servants, top managers from Federal
agencies, and outside experts participated in the study. In addition,
views were obtained from a broad cross section of public and private
interest groups. Specific proposals resulting from this study will be
sent to the Congress.
In order to improve the process by which the President receives
advice relating to needed Federal pay increases, Executive order
No. 12004 was issued on July 20, 1977. The Executive order designated
224
THE BUDGET FOR FISCAL YEAR 1979
the Secretary of Labor, the Director of the Office of Management and
Budget, and the Chairman of the Civil Service Commission to serve
jointly as the President's Pay Agent. The order also provided that the
Advisory Committee on Federal Pay be represented at all meetings
between the Pay Agent and the Federal Employees Pay Council.
Other general government.—Outlays
to accomplish other
general government missions, which include payments of claims and
judgments against the Federal Government, various commissions,
payments to the trust territories, and the Government Printing
Office, are expected to total $632 million in 1978 and $586 million in
1979. This decrease is due to a reduction in the expected number of
Indian claims.
Territories.—Outlays of $165 million in 1978 and $144 million in
1979 are estimated for governmental operations and construction
programs in the Territory of American Samoa, the Trust Territory
of the Pacific Islands, and the Northern Mariana Islands; as well as
new construction programs in the Territory of Guam. The unusually
high outlays in 1978 result from one-time projects that will be completed in 1978. One of the major construction programs funded by the
Federal Government is underway for the Trust Territory of the
Pacific Islands and will provide a basic infrastructure upon which the
Islands can begin to develop their own economy and to lessen their
dependence on outside resources. The basic infrastructure consists
of roads, docks, harbors, airports, water, sewer, and electrical systems.
Recommended budget authority for the construction program increases from $34 million in 1978 to $51 million in 1979.
Panama Canal Zone.—The budget includes estimated outlays of
$53 million in 1979 for the Canal Zone Government, which provides
municipal services to residents of the Canal Zone. However, under
the terms of the Panama Canal Treaty of 1977, the Republic of
Panama will assume general territorial jurisdiction over the area of
the Canal Zone. Within 3 years after the Treaty goes into effect,
most activities carried out by the Canal Zone Government will be
assumed by the Republic of Panama, or by other U.S. agencies
operating in Panama.
Federal Election Commission.—Budget authority of $8 million is
proposed to allow the Federal Election Commission to administer
the Federal Election Campaign Act. If Congress enacts the administration's proposal to provide financial assistance to States offering
election day voter registration and other outreach activities, an
MEETING NATIONAL NEEDS
225
additional $50 million of budget authority will be requested to be
spent over a 2-year period.
CREDIT PROGRAMS-GENERAL GOVERNMENT
[In millions of dollars]
Program
1977
actual
1978
estimate
1979
estimate
Loans to U.S. Territories:
Direct loans:
New loans
Repayments, sales, and adjustments ( — )
1
-1
2
-2
2
-2
Net credit outlays _
—*
1
_*
Guaranteed loans:
New loans
Net credit guaranteed.
58
58
39
39
2
-11
-10
-9
-9
-10
-9
29
_*
120
107
126
111
Real property activities and other:
Direct loans:
New loans
--Repayments, sales, and adjustments (— ) .
Net credit outlays
Guaranteed loans:
New loans
__
Net credit guaranteed.
*$500 thousand or less.
_
226
THE BUDGET FOR FISCAL YEAR 1979
GENERAL PURPOSE FISCAL ASSISTANCE
National Needs
Statement:
• Support the federal system by sharing Federal revenues
with State and local jurisdictions and providing other
forms of financial assistance.
• Reduce the impact of economic fluctuations on States
and localities.
To meet our national needs in general purpose fiscal assistance
in 1979, the Federal Government will spend an estimated $9.6 billion
in support of the following major missions:
• General revenue sharing: $6.9 billion.
• Other general purpose fiscal assistance: $2.8 billion.
The budget proposes to meet these national needs by continuing
programs of general purpose fiscal assistance and providing a larger
and more efficient direct subsidy for State and local interest payments.
To carry out these missions, the following legislative proposals are
included in this budget:
• An extension of the current program of countercyclical revenue
sharing (antirecession financial assistance).
• Direct interest subsidy payments to encourage the issuance of
taxable municipal bonds.
The major missions are supported by the programs shown in the
table on the following page.
General revenue sharing.—General revenue sharing has
become a key element of the Federal Government's mission to assist
State and local governments. Under legislation enacted in 1976, this
program has been authorized through September 30, 1980. Full
funding of the authorization for fiscal year 1979—$6.85 billion—is
requested. As the law requires, one-third will be paid to State governments and the remaining two-thirds will go to local units of general
government.
General revenue sharing is the only program of fiscal assistance that
provides some funds to virtually every unit of general government
below the Federal level. Nearly 39,000 units of government receive
money four times a year. They may spend the money for any purpose
permissible under State and local law, subject to minimal Federal
controls. The principal Federal requirements of this program seek to
assure nondiscrimination and public participation in spending decisions.
In addition, governments that receive $25,000 or more in any one year
must have their funds audited at least once every 3 years.
MEETING NATIONAL NEEDS
227
NATIONAL NEED: FISCAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS
[Functional code 850; in millions of dollars]
Major missions and programs
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
1979
estimate estimate
1980
estimate
General revenue sharing:
General revenue sharing payments to States
and localities...
Administration
6,855
7
6,758
4
6,827
8
6,852
8
6,855
7
Subtotal, general revenue sharing
6, 862
6,762
6,835
6,860
6,862
1,040
1,699
1,573
1,050
340
436
316
370
426
444
40
1
1
1
40
1
40
/
99
495
Other general purpose fiscal assistance:
Antirecession fiscal assistance to States and
localities
Payments and loans to the District of
Columbia
Mineral impact loan assistance (proposed
legislation)..
_.
New York seasonal financing fund
Taxable municipal bond option (proposed
legislation)....
Payments to States from Forest Service
receipts
_.
Payments to States and counties from
Federal land management activities
Other
Subtotal, other general purpose fiscal
assistance
Total
7,094
242
50
226
242
242
434
483
247
424
395
461
434
483
463
483
9,770
2,737
3,026
2,776
2,508
16,632
9,499
9,860
9,636
9,370
Although the ease with which revenue sharing funds can be substituted for other resources makes it impossible to ascertain precisely how these funds are being used, voluntary reports from recipient
governments indicate that the purposes for which revenue sharing
funds have been used are as varied as are the needs of people in
different regions of the country. One major city in the southwest used
substantial amounts of the money to institute an emergency medical
rescue system. A small town in New England has funded programs
for the elderly. Reports also indicate that since the inception of the
program in 1972, State' governments have used most of their shared
revenues to provide support for public education. Local governments
have tended to spend most of their money for police and fire protection
and transportation. The reports have also highlighted a trend toward
spending increasing portions of revenue sharing money to operate and
maintain programs rather than to undertake major capital projects.
228
THE BUDGET FOR FISCAL YEAR 1979
Other general purpose fiscal assistance.—These programs also
provide funds with minimal restrictions to States and localities.
Total outlays are estimated to rise from $2.7 billioii in 1977 to $3.0
billion in 1978 and then decline to $2.8 billion in 1979. The decrease
results primarily from the anticipated decline in unemployment rates,
which are part of the formula for computing payments under the
antirecession fiscal assistance program.
Antirecession fiscal assistance to States and localities.—This program
was established by the Public Works Employment Act of 1976. At that
time, $1.25 billion was authorized to be distributed to States and local
governments between July 1, 1976, and September 30, 1977. The
program was intended to help local governments in areas of high
unemployment maintain ongoing basic services.
In 1977, the program was extended through September 30, 1978, by
the Intergovernmental Antirecession Assistance Act and an additional
authorization of $2.25 billion was provided. Funds are distributed on
the basis of a formula that takes into account unemployment rates and
the relative size of general revenue sharing payments. As in the
general revenue sharing program, one-third of each quarterly allocation of funds is paid to State governments and the remainder is
distributed to local units of general government within the United
States. The four American territories of Puerto Rico, the American
Virgin Islands, Guam, and American Samoa are also eligible to receive
funds under this program.
It is estimated that most of the funds available under current law
will be spent before the end of 1978. While the budget anticipates an
extension of this program, the administration expects to review its
impact and make a specific recommendation concerning its future
later this year. (The administration's urban proposals are discussed in
the community and regional development function.)
Federal payments and loans to the District of Columbia.—The District
of Columbia's operating budget is financed by annual payments from
the Federal Government in recognition of the costs to the local government of the Federal establishment, and by local taxes. For 1979 a
Federal payment of $317 million and water and sewer reimbursement
charges of $10 million are requested. Additional authorizing legislation
is proposed to increase the authorized Federal payment from $300
million to $317 million.
The District of Columbia Self-Government and Governmental
Reorganization Act of 1973 (the "Home Rule Act") authorized the
city to issue short-term notes on its own behalf. Accordingly, interest-
MEETING NATIONAL NEEDS
229
free cash advances from the U.S. Treasury to the District will no
longer be made after 1978. The 1979 estimate provides for repayment of all outstanding Treasury advances and anticipates that the
city will exercise its authority to borrow in the private market for
short-term, cash management purposes. While the administration
continues to support the District's efforts to obtain long-term bonding
capability, the District will not be able to develop its capability to
support capital improvements in 1979. In the interim, the District
is authorized to borrow from the U.S. Treasury. The 1979 estimates
provide for Federal loans of $120 million to fund capital improvements in the District.
Mineral impact loan assistance.—The administration has proposed
legislation to amend existing authority for loans to States and local
governments for the provision of public facilities made necessary by
the development of minerals on Federal lands. Loans would be made
against each State's future mineral leasing receipts. Such mineral
development may sometimes result in substantial population increases
in small communities and thus require construction of schools, fire
houses and other public facilities. The proposed legislation would
correct certain deficiencies in existing legislation and change the highly
subsidized interest rate (3%) to the current Treasury borrowing rate.
New York City seasonal financing fund.—This fund authorizes
short-term loans to New York City through June 30, 1978. These
loans may not exceed $2.3 billion at any time, bear interest at a rate
1 percentage point above current Treasury borrowing rates, and must
be repaid at the end of the city's fiscal year. These loans by the
Treasury are purchased by the Federal Financing Bank and do not
appear in the Federal budget totals. The administrative costs of
servicing these loans are shown in the budget. The direct loan transactions are reflected in the budget schedules of the Federal Financing
Bank in the Budget Appendix. Various proposals to extend and modify
this program are under review.
Taxable municipal bond option.—Legislation is again proposed to
provide States and localities with flexibility and an incentive to issue
taxable, rather than tax-exempt, State and local bonds. There is
no intent to eliminate the right of States and localities to issue
tax-exempt bonds. Currently, interest income from most municipal
securities is not subject to Federal income tax, allowing municipalities
to borrow at lower interest rates. The loss of Federal tax receipts,
however, exceeds the interest savings by State and local governments.
230
THE BUDGET FOR FISCAL YEAR 1979
Under the taxable bond option, subsidies would be provided directly
to those State and local jurisdictions opting to borrow money at the
higher interest costs of the taxable bond market. By providing a
direct, rather than an indirect, tax subsidy, the Federal Government
will ensure that State and local governments receive all the benefits
of this subsidy. Currently, part of the subsidy goes to taxpayers in
high tax brackets. For calendar years 1979 and 1980, the Treasury
would subsidize States and localities for 35% of interest paid on
newly issued taxable securities; in subsequent years the subsidy
would be 40%. Associated outlays of $99 million in fiscal year 1979
would be offset partially by additional tax receipts.
Other payments.—Some jurisdictions also receive payments from
the Federal Government based on the percentages of receipts generated
in their jurisdictions from the sale of timber, mineral leases, grazing
permits and other activities on Federal property and lands. Under a
new law, Public Law 94-565, payments are provided to local governments in lieu of taxes for certain Federal lands contained within their
jurisdictions. The Departments of Interior and Agriculture will return an estimated $621 million in 1978 and $676 million in 1979 to
State and local jurisdictions. In addition, Federal taxes and other
revenues generated or collected in the Virgin Islands and Puerto Rico
by various Federal agencies are returned to those territories for their
fiscal support.
Tax expenditures.—Major tax expenditures also provide fiscal
assistance to States and localities. The exclusion from taxable income
of interest paid on State and local obligations is discussed above in
connection with the administration's proposal for the taxable municipal bond option. Under current law the related tax expenditure
is $6.0 billion in 1979. In addition, the deductibility of State and local
taxes from gross income allows individuals who itemize deductions to
offset partially their State and local taxes through reduced Federal
taxes; the revenue loss under current law is estimated to be $13.7
billion in 1979. The President's tax reform proposals include repealing
the deductibility of State and local gasoline excise taxes, sales taxes,
and certain miscellaneous taxes. These proposals, along with proposed
lower tax rates, would reduce the tax expenditures associated with
the deductibility of State and local taxes to $9.0 billion in 1979.
Related programs.—In addition to general purpose fiscal assistance, the Federal Government supports States and localities through a
large variety of Federal grants-in-aid programs. These grants, which
MEETING NATIONAL NEEDS
231
CREDIT PROGRAMS-GENERAL PURPOSE FISCAL ASSISTANCE
[In millions of dollars]
Program
1977
actual
1978
estimate
1979
estimate
Loans to New York City:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
Net credit outlays
Guaranteed loans:2
New loans
New credit guaranteed
1
_
...
Loans to District of Columbia:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
2,050
950
75
-1,150
121
-69
51
Net credit outlays
Net credit outlays
950
-950
_.
__ _
Mineral impact loan assistance:
Direct loans:
New loans
Repayments, sales, and adjustments (—)
2,050
-2,050
135
-44
121
-22
91
99
40
_
40
1
2
Includes sale of loan assets.
Loans made by Treasury to New York City are subsequently sold to the Federal Financing
Bank with Treasury's guarantee.
range from relatively narrow categorical programs to block grant
programs, are designed to meet other national needs and to serve
other major missions. They are, therefore, not included as general
purpose fiscal assistance, although they are, taken together, a far
larger source of State and local funds. Total grants-in-aid are estimated to reach $85.0 billion in 1979, an increase of 6% over 1978
and 24% over 1977. The sharp rate of growth in Federal grants in 1978
is largely due to economic stimulus programs. As the economy improves,
outlays for these programs will level off or decline.
Federal grants will comprise an estimated 26.2% of State and local
expenditures in 1979.
232
THE BUDGET FOR FISCAL YEAR 1979
FEDERAL GRANT-IN-AID OUTLAYS BY FUNCTION
[In millions of dollars]
Function
1977
actual
National defense...
Energy
Natural resources and environment
_
Agriculture
Commerce and housing credit
Transportation
Community and region 1 development
Education, training, employment, and social services
Health
_
_
Income security
._
Veterans benefits and services
Administration of justice-._
General government
General purpose fiscal assistancel
Total outlays
._
_.
1978
estimate
1979
estimate
96
74
4,189
371
18
8,298
4,496
15,753
12,104
12,613
79
713
154
9,438
90
270
4,895
391
34
9,562
6, 700
20,8] 1
12,875
13,985
85
649
197
9, 743
82
644
5,578
383
45
10,440
6,279
22,380
14,084
14.806
88
567
180
9,463
68,396
80,288
85,020
1
These numbers differ slightly from total outlays for this function, because they exclude administrative expenses.
MEETING NATIONAL NEEDS
233
INTEREST
Interest is the cost of borrowing or the income from lending money.
This function includes both interest paid and interest received by the
Federal Government. Budget outlays for the interest function are
estimated to increase by $5.7 billion in 1978 and $5.2 billion in 1979,
reaching a gross level of $49.0 billion in 1979. These increases result
largely from financing unified budget deficits of $62 billion in 1978
and $61 billion in 1979, and from Federal borrowing to finance offbudget Federal entities. The estimated amount of additional Federal
borrowing necessary for this latter purpose is $12 billion in 1978,
and $13 billion in 1979.
INTEREST
[Functional code 900; in millions of dollars]
Program
Interest on the public debt i
Other interest
Total
1
Recommended
budget
authority
for 1979
Outlays
1977
actual
55,400 41,900
-6,410 -3,808
48,990
38,092
1978
1979
1980
estimate estimate estimate
48,600 55,400
-4,759 -6,409
60,100
-6,414
43,841
53,686
48,991
Includes interest paid on the public debt held by Government investment accounts.
These outlay estimates assume continuation of current market
interest rates at the levels prevailing when the projections were made.
The rate on 91-day bills is assumed to be 6.1% through 1980. Although
interest rates are likely to be different from this, they are extremely
difficult to forecast. The longer range projections of interest costs
presented in Part 3 assume a decline in interest rates consistent with
the projected decline in the rate of inflation.
Interest costs are highly sensitive to changes in interest rates.
Assuming no change in the level of debt, a ^-percentage-point increase
in interest rates as of March 1978 would increase 1978 interest outlays
by $0.3 billion, and 1979 outlays by $1.5 billion.
A substantial portion of interest outlays is paid to trust funds on
securities held by the funds. These amounts are deducted from both
budget authority and outlays before arriving at unified budget totals,
since the payment of interest is not made to the public, but consists
of offsetting transactions within the budget itself. As shown in the
following table, net interest outlays—the interest function minus the
interest received by trust funds—are projected to be $39.9 billion in
1979. These estimates of net interest include outlays due to off-budget
operations.
234
THE BUDGET FOR FISCAL YEAR 1979
NET INTEREST
[In millions of dollars]
1977
actual
Outlays for the interest function
Interest received by trust funds
Net interest outlays
_
Deduct: Deposit of earnings by the Federal Reserve
System^.—_
_
Net impact2
1
2
_
_
1978
estimate
1979
estimate
1980
estimate
38,092
-8,131
43,841
-8,595
48,991
-9,064
53,686
-10.300
29,961
35,246
39,927
43,386
5,908
6,200
6,300
6,400
24,053
29,046
33,627
36,986
Shown as budget receipts.
Net amount or interest to be paid from receipts or other means of financing.
In addition, Federal Reserve banks hold government securities as
part of their monetary functions. The Federal Reserve banks return
a portion of the interest they receive on those securities back to the
Treasury as miscellaneous budget receipts. This deposit of earnings is
projected to be $6.3 billion in 1979. Deducting these receipts from net
interest totals results in a net impact on the budget of $33.6 billion
in 1979. The net impact of interest is the amount of interest that must
be paid from receipts or additional borrowing to meet Federal financing requirements.
A tax expenditure arises from the optional deferral of interest
income on U.S. savings bonds. Normally, the interest on these bonds
would be taxed each year as it is credited, but the holder may defer
paying the tax until the bond is redeemed. The revenue loss is projected to be $0.6 billion in 1979.
MEETING NATIONAL NEEDS
235
ALLOWANCES
Allowances are included in the 1979 budget to cover statutory
pay increases for Federal civilian agency employees, future initiatives
and unforeseen requirements that may arise. Pay allowances for the
Department of Defense are included in the National Defense function.
ALLOWANCES
[Functional code 920; in millions of dollars]
Program
Civilian agency pay raises
Proposed legislation
Contingencies for:
Relatively uncontrollable programs..
Other requirements
Total
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
estimate
1979
1980
estimate estimate
1,145
-45
2,435
-117
3,000
1,700
3,500
4,150
2,800
5,818
1,197
-47
. . .
The Federal Pay Comparability Act of 1970 provides a system for
annually adjusting Federal white-collar pay on the basis of comparability with the private sector. In 1977, the number of private establishments covered by the comparability survey was increased by 24%.
This increase provides an improved base upon which to make future
comparability adjustments.
The President has asked business and labor to cooperate in a voluntary program to decelerate wage and price increases. Every effort is
to be made to hold wage and price increases in 1978 significantly
below those in the prior year. The President intends to keep this
criterion in mind when lie reviews the October 1978 pay raise 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 situation at the time. The President's final
decision will be made in late summer.
As part of the overall effort to hold down inflationary trends, Federal
agencies will be required to limit additional funds requested to cover
the pay increase to no more than 6%.
Recently, the Federal personnel management project recommended
legislative changes in the Federal pay system. These proposals include
splitting the present general schedule into two schedules and setting
salaries in the new clerical and technical schedule on a local basis.
Enactment of this proposal will improve the process of setting pay on
236
THE BUDGET FOR FISCAL YEAR 1979
the basis of comparability. The administration continues to support
legislation that is also pending before the Congress to reform certain
aspects of wage-board pay rates that result in blue-collar workers
earning more than their private sector counterparts. This proposal
would save $45 million in the 1979 budgets of civilian agencies. In
addition, the Civil Service Commission is considering extending the
comparability base to include fringe benefits in its considerations to
establish total comparability with the private sector.
The allowance for relatively uncontrollable programs is assumed to
be zero since the probability of estimates higher or lower than the
budget estimates is assumed to be the same. An allowance for other
requirements is included. This does not represent a compilation of a
specific list of future needs, but is a rough estimate taking into account
past experience of unanticipated requirements and possible requirements for future initiatives.
MEETING NATIONAL NEEDS
237
UNDISTRIBUTED OFFSETTING RECEIPTS
Offsetting receipts (which are shown in detail in table 11 in Part 9
of the budget) are generally deducted from budget totals at the function or agency levels. There are three instances, however, when such
payments are deducted from the budget as undistributed offsetting
receipts. In two cases, interest received by trust funds and rents and
royalties on the Outer Continental Shelf, the payments are extremely
large and to include them at the function or agency level would present
a distorted view of Federal program costs. In the case of the third, the
payment that each agency makes as its share of employee retirement,
it is not practical to collect the information, since to do so would require
a very large number of detailed reports.
UNDISTRIBUTED OFFSETTING RECEIPTS
[Functional code 950; in millions of dollars]
Program
Employer share, employee retirement
Interest received by trust funds.__
Rents and royalties on the Outer Continental
Shelf
__
Total
Recommended
budget
authority
for 1979
Outlays
1977
actual
1978
1979
1980
estimate estimate estimate
-5,157 -4,548 -5,024 -5,157
-9,064 -8,131 -8,595 -9,064
-5,510
-10,300
-1,800 -2,374 -2,000 -1,800
-1,800
-16,021 -15,053 -15,619 -16,021
-17,610
Employer share, employee retirement.—This category is composed of payments by Federal agencies to various employee retirement funds. These contributions are outlays of the agency and receipts
of the respective retirement fund. They are deducted before striking
budget totals in order to eliminate double counting and thereby
properly reflect transactions with the public. About two-thirds of
these payments are to the Civil Service retirement fund, with the
remainder paid mostly to the social security trust funds.
Interest received by trust funds.—By law, most trust fund
balances are invested in Federal securities. The interest received by
trust nonrevolving funds is deducted from the budget totals under
the unified budget concept to reflect transactions with the public.
Rents and royalties from the Outer Continental Shelf
(OCS).—These estimates include cash bonuses received from the
260-000 O - 78 - 16
238
THE BUDGET FOR FISCAL YEAR 1979
leasing of new OCS lands that have the promise of containing oil and
gas. Annual rentals on existing leases and royalties based on a percentage of the value of production are also included. The current
estimates assume that five scheduled OCS sales will be conducted in
1979 and four sales in 1980. 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.
PART 6
SELECTED ASPECTS OF
THE BUDGET
239
SELECTED ASPECTS OF THE BUDGET
This part of the budget explains several topics that help place the
budget in perspective. It discusses:
• relationship of budget authority to outlays;
• fiscal activities outside the Federal budget,
—outlays of off-budget Federal entities,
—Government-sponsored enterprises,
—guaranteed loans, and
—tax expenditures;
• the relationship of budget funds to changes in Federal debt;
• the differences between the original budget estimates of outlays
under relatively uncontrollable programs and the actual outlays
for these programs; and
• the differences between the original budget estimates of receipts
and the actual receipts.
RELATIONSHIP OF BUDGET AUTHORITY TO OUTLAYS
The Congress must provide budget authority, generally in the form
of appropriations, before Federal agencies can obligate the Government to make outlays. For 1979, $568.2 billion of new budget authority
is proposed for those Federal activities included in the budget. In
addition, $16.1 billion in new budget authority is proposed for those
Federal entities that are excluded from the budget.
Of the total amount proposed for on-budget Federal entities for
1979, $366.9 billion in new budget authority for on-budget Federal
agencies will require congressional action. The remaining $201.2 billion
will be available under existing laws. The latter authority includes
trust fund receipts, which in most 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. Budget authority for most off-budget
Federal entities will be available under existing law.
Not all of the new budget authority for 1979 will be obligated or
spent in that year.1
• Budget authority for most trust funds authorizes the expenditure
of the receipts from special taxes and contributions and from
Federal fund payments to the trust funds. The receipts are to be
1
This subject is discussed more fully in a separate report, "Balances of Budget Authority", that
is published by the Office of Management and Budget shortly after the Budget is transmitted.
240
241
SELECTED ASPECTS OF THE BUDGET
used as needed over a period of years for benefit payments and
other purposes specified by law.
• Under longstanding budget policy, budget authority for major
construction and major procurement projects covers the entire
cost anticipated at the time the projects are initiated even though
costs will be incurred and outlays made over a period extending
beyond that fiscal year.
• Budget authority for the subsidized housing programs is equal to
the Government's maximum contractual obligation to pay subsidies under contracts that may extend over periods of up to 40
years.
• Budget authority for many direct loan programs provides financing for a period of years; budget authority for many insurance
and guaranteed loan programs consists of amounts to be used
only in the event of defaults or other claims made under 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; some of it may
never be obligated or spent.
Relation of Budget Authority to Outlays—1979 Budget
New Authority
Recommended
for 1979
568.2
To be spent in (979
360.6
[279.5]
[363.6]
A
W
Unspent Authority
Enacted in
Prior Years
To be spent in
Future Years
7
614.0
471.9
^
[435.8]
[349.2]
Outlays
in 1979
500.2
Unspent Authority
for Outlays in
Future Years
679.5
[484.5]
242
THE BUDGET FOR FISCAL YEAR 1979
As shown in the preceding chart, $139.5 billion of the outlays for
1979, 27.9% of the total, will be made from budget authority enacted in
previous years. Furthermore, $207.5 billion of the new budget authority
proposed for 1979, which is 36.5% of the total amount proposed, will
not result in outlays until future years. The relationships between
budget authority, obligations, and outlays are discussed further in
Part 7 of the Budget and displayed in table 5 of Part 9.
Once budget authority is provided, the Congressional Budget and
Impoundment Control Act requires that any available amounts withheld from use must be reported to the Congress in rescission or deferral
messages. The Congress may require release of these funds by overturning the proposed deferral of budget authority or by not taking
action on the proposed rescission.2
BUDGET AUTHORITY
[In billions of dollars]
Description
1977
actual
1978
estimate
1979
estimate
Available through current action by Congress:
Enacted and pending:
Appropriations
_
Supplemental pending.Rescissions pending
Proposed in this budget:
Appropriation requests
Supplemental requests
To be requested separately:
Under existing legislation
Upon enactment of proposed legislation
Allowances:
Civilian agencies 1
_
Department of Defense—Military 2
_
317.5
313.1
5.9
0.1
_
-
343.5
7.3
0.5
0.7
-
Subtotal, available through current action of the Congress.
_.
*
16.9
4.2
2.3
317.5
327.4
366.9
155.2
41.9
-59.2
174.5
48.6
12.2
-59.8
192.3
55.4
17.1
-63.6
465.2
502.9
568.2
Available without current action by the Congress (permanent
authorizations):3
Trust funds (existing law)
Interest on the public debt
Other
Deductions for offsetting receipts
Total budget authority
See footnotes at end of table.
2
See discussion in Part 7 of the Budget.
9.8
SELECTED ASPECTS OF THE
BUDGET
243
BUDGET AUTHORITY-Continucd
[In billions of dollars]
1977
Description
1978
c t ma e
1979
MEMORANDUM
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 off-budget Federal entities.
*
*
*
9.9
14.0
16.1
10.0
14.1
16.1
475.2
517.0
584.3
*$50 million or less.
Includes allowances for civilian agency pay raises and contingencies.
Includes allowances for civilian and military pay raises for Department of Defense.
Allowances for relatively uncontrollable programs with permanent authorizations are estimated
at zero.
1
2
3
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. One
major exclusion—the outlays of off-budget Federal entities3—is
discussed in some detail below. This is followed by a discussion of the
Government-sponsored enterprises, which are outside the scope of the
budget because of their private ownership.4 Guaranteed loans and tax
expenditures, which also have significant effects on the economy, are
discussed subsequently. The regulation of economic activity may have
similar effects by requiring the private sector to make expenditures for
specified purposes, such as safety and pollution control. These effects
cannot be quantified satisfactorily and are not discussed in this section.
The off-budget Federal entities and the privately owned, Government-sponsored enterprises primarily carry out loan programs.
Guaranteed loans are likewise a part of federally assisted lending. The
following table summarizes Federal credit activity by showing the
amounts outstanding of Federal and federally assisted loans: direct
loans by Federal agencies included in the budget; direct loans by offbudget Federal entities; guaranteed loans; and loans by Governmentsponsored enterprises.
3
Financial statements for these entities are published in the Appendix, Budget of the United States
Government, Fiscal Year 1979. See Part IV, "Off-Budget Federal Entities."
* For financial statements, see the Appendix, Part VI, "Government-Sponsored Enterprises."
244
THE BUDGET FOR FISCAL YEAR 19 79
FEDERAL AND FEDERALLY ASSISTED LOANS OUTSTANDING 1
[In billions of dollars; at end of fiscal period]
TQ
actual
1977
actual
1978
estimate
1979
estimate
Direct loans—on budget
Direct loans-off budget
Guaranteed and insured loans2
65.6
23.8
169.9
68.2
32.7
183.9
76.1
43.8
200.4
80.4
56.8
223.6
Total, direct loans and guaranteed loans
Government-sponsored enterprise loans3
259. 2
87.9
284.8
98.9
320.3
115.2
360.8
130.1
1
See table F-7 in Special Analysis F, "Federal Credit Programs," Special Analyses, Budget of
the2 United States Government, Fiscal Year 1979.
Excludes loans held by Government accounts and Government-sponsored enterprises.
3
Net of loans between Government-sponsored enterprises and between such enterprises and
Federal agencies.
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.5
Therefore, their fiscal activities are not reflected in either budget
outlays or the budget surplus or deficit, appropriation requests for
their activities are not included in the totals of budget authority,
and their outlays are not subject to the ceilings set by the congressional budget resolutions. As shown in the table on page 257, the
outlays of the off-budget Federal entities are added to the unified
budget deficit to comprise the total Government deficit that has to
be financed by borrowing from the public or by other means. When
off-budget outlays are financed by Treasury borrowing, the additional debt is subject to the statutory debt limit; when financed by
the entities* own borrowing, it is not. In either case the additional
debt is part of the gross Federal debt.
The first Federal entity removed from the unified budget was the
Export-Import Bank (excluded by statute as of August 17, 1971).
This exclusion was the first departure from the concept of the unified
budget, which had been adopted beginning with the 1969 budget
and which combined the administrative budget with the substantial
trust fund activity of the Federal Government. After 1972, further
departures from a unified budget occurred. The Postal Service fund,
the Rural Telephone Bank, the lending activities that became the
Rural electrification and telephone revolving fund, and the Housing
for the elderly or handicapped fund were removed from the budget.
The Environmental Financing Authority,6 the Federal Financing
8
The Board of Governors of the Federal Reserve System (but not the Federal Reserve banks,
which are privately owned) is a Federal organization. It is excluded from the budget and from this
discussion.
« The Environmental Financing Authority expired on June 30, 1975, without having conducted
any operations.
SELECTED ASPECTS OF THE BUDGET
245
Bank, the U.S. Railway Association, and the Pension Benefit Guaranty Corporation were established off-budget. The Exchange stabilization fund has always been outside the unified budget, though until
last year it was classified as a deposit fund instead of an off-budget
Federal entity.7
Some of the outlays related to the activities of the off-budget
Federal entities are nonetheless included in the budget totals. The
budget totals include the subsidies paid to the Postal Service fund and
the administrative expenses of the Rural electrification 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, limits on the amount
of new lending by the Rural electrification and telephone revolving
fund are set annually by law, and the outstanding debt and annual
borrowing of the Postal Service are limited by statute.
In the past 2 years, the creation of new off-budget Federal entities
has been reversed. The Export-Import Bank was returned to the
budget by statute on October 1, 1976, and the Housing for the elderly
or handicapped fund was returned to the budget by statute on October 1,1977. The budget outlays and deficits of previous years have been
revised to include these two entities, and these revisions are reflected
in the tables published in this budget. The budget treatment of the
U.S. Railway Association has been altered by a different kind of
legislative change. From the start of the assistance program to Con Rail
in 1976, which now comprises almost all of the Association's activity,
the purchases of ConRail securities have been required by law to be
included in the budget. Furthermore, the administration has proposed legislation to include the administrative expenses of the Exchange stabilization fund in the budget. When this legislation is
enacted, the other outlays of the Exchange stabilization fund will
also be included in the budget.8
Congress has expressed concern about the existence of off-budget
Federal entities. The Congressional Budget Act of 1974 calls for the
Committees on the Budget of the House of Representatives and the
Senate to study on a continuing basis those provisions of law that
exclude any outlays of Federal entities from the budget and to report
to their respective Houses their recommendations for terminating or
modifying such provisions. In September 1976 the House Budget
246
THE BUDGET FOR FISCAL YEAR 1979
Committee adopted a report recommending that the budget include
the administrative expenses of the Exchange stabilization fund and the
outlays of all other off-budget Federal entities except the Federal
Financing Bank. The committee deferred judgment on the budget
status of the Federal Financing Bank. 9
Except for the Postal Service, the Pension Benefit Guaranty
Corporation, and the Exchange stabilization fund, the excluded outlays of the off-budget Federal entities are incurred for carrying out
loan programs. These programs are similar to the direct loan programs
in the unified budget. The outlays of the off-budget loan programs are
approximately equal to the difference between new loans disbursed and
repayments of principal. For example, during 1979 new loans disbursed by the excluded programs are estimated to be $16.8 billion
and repayments $3.9 billion, for an increase in loans outstanding
of $12.9 billion. This is about the same as the estimated outlays of
these programs, which are $12.6 billion. 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 excluded programs
are designed to allocate economic resources toward particular uses.
The off-budget Federal entities support a variety of program functions both by their direct operations and, in the case of the Federal
Financing Bank, by purchasing debt securities issued b y several
agencies and purchasing obligations guaranteed under a number of
Government programs. The size of these activities is generally indicated by the outlays of each off-budget entity in the following table.
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
Pension Benefit Guaranty Corporation
Exchange stabilization fund
Postal Service fund
U.S. Railway Association
__
Total
_
1976
actual
..
1977
actual
1978
estimate
1979
estimate
12.5
5.9
.2
.1
—*
—.1
1.1
.1
8.2
.4
.1
__*
*
-.2
.2
10.6
-.1
.8
.1
.1
__*
-.1
-_*
*
7.2
8.7
11.5
12.5
.1
.1
—*
*$50 million or less.
0
House of Representatives. Committee on the Budget. Off-Budget Aditities of the Federal Government, Report No. 94-1740 (1976); and First Concurrent Resolution on the Budget—Fiscal Year 1978.
Report N o . 9 5 - 1 8 9 (1977). pp. 11-12.
SELECTED ASPECTS OF THE BUDGET
247
As the table shows, the Federal Financing Bank (FFB) accounts for
most of the off-budget outlays. The outlays of the FFB include only its
purchase of Government-guaranteed obligations, not its purchase of
Federal agency debt. This prevents counting the same amount twice,
both in the FFB's own outlays and in the outlays of the agency that
borrows from the FFB and spends the proceeds.
The FFB's large share of the total off-budget outlays has been
increased by the legislation mentioned above that put the ExportImport Bank, the Housing for the elderly or handicapped fund, and
the major lending program of the U.S. Railway Association into the
budget totals. Among the remaining off-budget Federal entities only
the Postal Service fund in some years has comparatively large outlays.
The outlays of the Postal Service fund are calculated with an offset for
the subsidy that it receives for public service costs and for revenue
foregone from carrying certain mail at free or reduced rates. This subsidy, which is included in the budget, is estimated at $1.8 billion in
1979. The continued net lending of the Rural electrification and telephone revolving fund during 1978-79 is mostly counted in the outlays
of the FFB rather than in its own outlays. The fund plans to sell
certificates of beneficial ownership to the FFB, and the sale of these
certificates is required by law to be treated as the sale of assets instead
of borrowing. Therefore the sale of these certificates to the FFB is an
offset to the outlays of the Rural electrification and telephone revolving
fund and adds to the outlays of the FFB.
In the table on the next page, the excluded outlays of the off-budget
Federal entities are compared with the unified budget outlays.10
The outlays of the off-budget entities (excluding the Export-Import
Bank and Exchange stabilization fund) were negligible in 1973 but
grew rapidly afterwards, as the Federal Financing Bank and other
off-budget entities were created. The outlays of the off-budget Federal
entities equaled 2.2% of budget outlays in 1977 and are estimated to
equal 2.5% in both 1978 and 1979.
Outlays
of
Government-sponsored
enterprises.—Several
Government-sponsored 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 direct Government control, but, in time,
they were converted to private ownership and some new enterprises
were created as privately owned institutions. The rule governing the
budget treatment of these enterprises was established in 1967 in accordance with a recommendation by the President's Commission on
10
The historical data for unified budget outlays include Federal entities that are now off-budget
for any period when they were in the budget, include the Export-Import Bank and Housing for
the elderly or handicapped fund for all years, and include Government-sponsored enterprises for
periods when they had any Government ownership.
248
THE BUDGET FOR FISCAL YEAR 1979
COMPARISON OF OUTLAYS FOR THE UNIFIED BUDGET, OFF-BUDGET FEDERAL
ENTITIES, AND GOVERNMENT-SPONSORED ENTERPRISES
[In billions of dollars]
Outlays
Federal Government l 2
Year
Unified
budget
1960
1961
1962
1963
1964
Offbudget
Federal
entities
Total
Governmentsponsored
enter-3
prises
92.2
97.8
106.8
111.3
118.6
92.2 0.4
97.8 - . 3
106.8 1.1
111.3
.5
118.6 1.8
1965
1966
1967
1968
1969
118.4
134.7
158.3
178.8
184.5
118.4
134.7
158.3
178.8
184.5
1970
1971
1972
1973.._.
196.6
211.4
232.0
247.1
0.1
196.6 9.6
211.4
*
232.0
4.4
247.1 11.4
269.6
1.4
271.1
14.5
1975
1976
326.1
365.6
8.1
7.2
334.1
372.9
7.0
4.6
TQ
1977
1978 estimate
1979 estimate
94.7
401.9
462.2
500.2
1.8
8.7
11.5
12.5
96.4
410.6
473.7
512.7
2.3
10.2
16.5
14.8
1974
__
..
._
1.2
1.9
-2.9
1.7
4.3
*$50 million or less.
1
The 1972-77 data have been revised to include the Export-Import Bank and the Housing for
the2 elderly or handicapped fund in the unified budget instead of with the off-budget Federal entities.
Exchange stabilization fund excluded until 1976. Comparable data for outlays are not available
for3 earlier years.
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.
Budget Concepts. The Commission recommended that the budget
exclude those Government-sponsored enterprises that are entirety
privately owned. Since the enterprises carry out federally designed
programs and receive benefits from their close association with the
Government, the Commission recommended that financial statements of their operations be included in the budget documents.11
" Report of the President's Commission on Budget Concepts (Washington: U.S. Government Printing Office, 1967), pp. 29-30.
SELECTED ASPECTS OF THE BUDGET
249
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 during 1969 and were
accordingly removed from the budget. The Federal Home Loan
Mortgage Corporation and the Student Loan Marketing Association
were subsequently established with full private ownership.
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 group
that they were established to assist. Their loans primarily support
housing but also support agriculture and higher education. As shown
in the preceding table, the outlays of the privately owned, Governmentsponsored enterprises have grown considerably—from relatively small
amounts in the early 1960's to an average of $9.5 billion (equal to
2.9% of budget outlays) during 1973-77, when more Governmentsponsored enterprises had been established outside the budget. In
1979 these enterprises are expected to spend $14.8 billion, an amount
equal to 3.0% of budget outlays in that year.
Guaranteed loans.—Government-guaranteed loans are loans for
which the Government guarantees the payment of the principal or
interest in whole or in part. Loan guarantees constitute contingent
liabilities. They generally do not result in budget outlays except in
the case of default.
Loan guarantees are designed to allocate economic resources toward particular uses by providing credit at more favorable terms than
would otherwise be available in the private market. The major use of
guaranteed loans is to support housing, but in recent years guarantees
have increasingly been used for other purposes. The effect of guaranteed loans on the economy is difficult to assess. Some portion of the
private loans that are guaranteed would have been made without the
guarantee, and those private loans that would not otherwise have been
made tend to divert credit away from other economic activities.
Guaranteed (or insured) loans have diverse characteristics. The loan
may be made to individuals, businesses, State and local governments,
or foreign governments. The guaranteed obligation may be a loan made
by a bank or other institutional lender, it may be a security sold in the
capital market, or it may be a security sold to the Federal Financing
Bank. The guarantee may be full or partial, and in some programs it
250
THE BUDGET FOR FISCAL YEAR
19 79
Guaranteed Loans Outstanding
1970 wn
tvn
mn
ms
tm
*£*«$«*« Loom H*UhtGetmmm* Acco
may be supplemented by other explicit subsidies or other forms of
assistance.
Guaranteed loans include most loan assets sold by Federal agencies.
Loan asset sales occur when an agency makes a direct loan and then
sells it. A guarantee by the selling agency is usually attached. In some
such cases an agency sells securities (sometimes called participation
certificates or certificates of beneficial ownership) that are backed by
loans that the agency continues to hold and service. Loan asset sales
are treated as offsets to the outlays of the agency that sells them, so
if the selling agency is in the budget they reduce the amount by
which the direct loans of Federal agencies add to budget outlays.12
The following table shows the amount outstanding of guaranteed
loans held by the public at the end of the transition quarter and the
years 1977-79, the net loans guaranteed during each year (that is,
the change in loans outstanding), and the gross amount of new loans
12
The President's Commission on Budget Concepts recommended that the sale of participation
certificates should be treated as borrowing, but in certain cases legislation requires that it be treated
instead as the sale of loan assets. See Report of the President's Commission on Budget Concepts, pp. 8,
47-48, and 54-55.
SELECTED ASPECTS OF THE BUDGET
251
guaranteed. The figures include the full amount of all loans guaranteed
(whether guaranteed in whole or in part), in billions of dollars:
Guaranteed loans outstanding
Net loans guaranteed
Gross loans guaranteed
TQ
actual
169.9
-.1
8.4
1977
actual
183.9
14.1
40.9
1978
estimate
200.4
16.5
44.7
1979
estimate
223.6
23.2
53.4
This table suggests the importance of guaranteed loans. The amount
outstanding held by the public is large and growing each year. Gross
loans, which measure the total new activity that occurs each year,
are much larger than the change in loans outstanding, primarily
because of the repayment of old loans. In addition to the $53.7
billion increase in guaranteed loans held by the general public during
1977-79, the total held by the Federal Financing Bank (FFB) and
other Federal agencies is estimated to increase by $30.0 billion; whereas
the total held by Government-sponsored enterprises is estimated to
decrease by $1.8 billion. These amounts are reflected in the outlays
of the FFB, other Federal agencies, and Government-sponsored
enterprises that buy these loans. When the FFB buys newly issued
guaranteed loans (except loan assets), the guaranteed loans are in
effect converted into direct Federal loans outside the budget.13
Since guaranteed loans are outside the budget, they are not subject
to the same degree of review and control as budget outlays. The
authorizing statutes for half or more of the guarantee programs
impose a ceiling on the amount of guaranteed loans outstanding,
but the limits imposed at one time are usually designed to meet
several years of requirements at once. Plans for guarantees are generally reviewed annually in the course of reviewing the budget and
personnel requests of the administering agencies, but annual limits
usually are not set. Except when explicit subsidies or capital for
reserve funds must be appropriated, limits on guarantees are not
imposed, directly or indirectly, through the Appropriations Committees of the Congress. Similarly, the Senate and House Budget Committees do not scrutinize the total amount of guaranteed loans in
developing their concurrent budget resolutions, and the concurrent
budget resolutions do not include a target or ceiling for guaranteed
loans as they do for budget outlays and budget authority.
Consequently, the Federal Government does not have any systematic mechanism to consider the resource allocation implied by its
loan guarantee plans or to judge whether it makes or guarantees a
13
When the FFB buys loan assets, it effectively converts direct loans that have already been
made by another agency into off-budget direct loans by the FFB.
252
THE BUDGET FOR FISCAL YEAR 1979
reasonable share of the Nation's total credit transactions. In order
for the Government to influence efficiently the allocation of economic
resources and the behavior of financial markets and the economy as
a whole, it must exercise control over guaranteed loans as well as
over direct loans and other outlays. As discussed in Part 2, the
administration will soon propose a set of executive and congressional
procedures that would apply budget-type controls to Federal lending
programs for guaranteed lending and direct lending alike.
The major loan guarantee programs are discussed by function in
Part 5 of the Budget. Guaranteed loans are analyzed further together
with other types of credit assistance in Special Analysis F, "Federal
Credit Programs." 14
Taxation and tax expenditures.—Taxation affects the economy
not only by providing the Government with receipts but also by changing the allocation of resources among private uses and the distribution
of income and wealth among individuals. These changes are caused by
the structural characteristics of each of the different taxes—for
example, the rate schedules, exemptions, deductions, and exclusions of
the individual income tax—and by the relative size of the different
taxes. The effects of taxation on resource allocation and income
distribution are analogous to the effects of outlays, but they are not
measured in budget receipts or outlays.
Some aspects of taxation, called "tax expenditures/' receive special
attention in the budget. Tax expenditures are defined as revenue losses
under the individual and corporation income taxes that are attributable to a special exclusion, exemption, or deduction from gross income
or to a special credit, preferential tax rate, or deferral of tax liability.
Tax expenditures are one means by which the Federal Government
pursues its objectives and in most cases can be viewed as alternatives
to other instruments of Government policy such as outlays, loan
guarantees, regulations, and other provisions of the tax law. The
objectives of tax expenditures are varied. Nearly all are intended
either to encourage particular economic activities or to reduce the tax
liabilities for taxpayers in special circumstances. Among the economic
activities encouraged are investment, homeownership, State and local
government borrowing, and support of charities; among the persons
with reduced tax liabilities are the aged, the unemployed, and those
with high medical expenses.
Tax expenditures ordinarily result from permanent legislation and
therefore, unlike much of the budget, are not submitted to the Congress each year and do not receive a formal and annual systematic
"See Special Analyses. Budget of the United States Government. Fiscal Year 1979.
SELECTED ASPECTS OF THE BUDGET
253
review. Tax expenditures have, nonetheless, been systematically
reviewed during the past year in preparation for the administration's
current program of tax reform, as have other provisions of tax law.
Under the Congressional Budget Act of 1974 the estimated levels of
tax expenditures are required to be presented each year in the budget
that the President submits to the Congress and in the reports of the
Senate and House Budget Committees on the proposed congressional
budget resolutions. This is intended to encourage regular examination
of tax expenditures by the Congress, the rest of the Government,
and the public. The provisions of the income tax law other than
those that result in tax expenditures—although likewise affecting
the allocation of resources and the distribution of income—do not
receive either an annual, systematic review or this kind of presentation;
nor do other taxes besides the individual and corporation income taxes.
The classification of certain provisions of law as resulting in tax
expenditures requires some standard against which the law can be
compared. Deviations of the law from this standard are deemed to
cause tax expenditures. The standard used for the individual income
tax includes those provisions that exist under current law for graduated
rate schedules, personal exemptions, standard deductions, and
other means of establishing the income levels at which tax liabilities
begin. Thus, by definition, these characteristics of the tax structure
do not generate tax expenditures.
However, selecting a standard of comparison depends on normative
judgments about what is appropriate. A different standard might
exclude personal exemptions and standard deductions and thereby
classify these provisions as resulting in tax expenditures; or it might
integrate the individual and corporation income taxes, in which case
the lack of integration under current law could be thought to produce
a gain in receipts and thereby a negative tax expenditure. The provisions of tax law that are not defined as resulting in tax expenditures
deserve as much scrutiny as the provisions that are, since both types
of provision have the same kinds of economic effects, and since a
different normative judgment might change the classification of what
is considered to result in a tax expenditure.
Tax expenditures are presented at two places in the Budget. Part 5
of the Budget, "Meeting National Needs: the Federal Program by
Function," discusses the most important tax expenditures in each
functional category, together with outlays and guaranteed loans, in
order to describe more fully the effects of governmental policy toward
meeting each national need. Special Analysis G, "Tax Expenditures/'
discusses the concept of tax expenditures, presents a complete list of
tax expenditure estimates for individuals and corporations in 1977-79,
260-000 O - 78 - 17
254
THE BUDGET FOR FISCAL YEAR 19 79
and analyzes the effect of the tax reform proposals in the present
budget on tax expenditures.15
The figures shown for tax expenditures are necessarily estimates
for past years as well as future ones, since they compare actual tax
receipts with what tax receipts would have been if the tax law had
been different. The method of estimation is to assume that only the
tax provision in question is removed, while taxpayer behavior and all
other characteristics of the tax system remain the same. If removing
a particular provision increases taxable income, as would occur in
most cases, the tax expenditure is then estimated as the increase in
taxable income multiplied by the appropriate tax rate.
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 tax changes proposed in this budget,
as an example, would automatically decrease many tax expenditures,
since they would reduce tax rate schedules and would replace deductions for personal exemptions by a credit that would raise the levels
of income at which tax liabilities begin. The reduction in tax rate
schedules would decrease the amount of receipts gained by eliminating
deductions and exclusions; the personal credit together with other
reforms would decrease the number of taxpayers itemizing deductions
and would thereby decrease tax expenditures for deductions, particularly those deductions taken disproportionately by low-income
taxpayers.
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 more 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 more taxpayers would
switch to the standard deduction. According to a special calculation
based on current law, if all itemized deductions resulting in tax expenditures were repealed, the gain in receipts in 1979 would be $24.7 billion.
In comparison the sum of the tax expenditures for each separate item
is $32.2 billion. Consequently, except for a few special calculations,
separate tax expenditures are not added together in this budget. Where
tax expenditures for both individuals and corporations result from the
same provision, however, such as the investment tax credit, the two
estimates may meaningfully be added.
"See Special Analyses, Budget of the United States Government. Fiscal Year 1979. The presentation in this special analysis meets the requirement in the Congressional Budget Act that tax
expenditures be set forth in the budget.
SELECTED ASPECTS OF THE BUDGET
255
Interaction among separate tax expenditure provisions is one reason why tax expenditures cannot all be added together to form a
meaningful total amount. In addition, there are two conceptual reasons
why even a total amount that took these interactions into account
would be of little use. First, as explained above, the list of tax expenditure items would be different if a different standard were used for comparison. Any total amount would depend on the normative judgments
that defined the standard, and a total based on the present standard
could readily be raised or lowered.
Second, the effect of tax expenditures on receipts depends on the
extent to which eliminating tax expenditures would be offset by reducing tax rates in order to compensate for the higher receipts otherwise
collected. Frequently tax expenditures and other provisions of tax
law have been changed together; and one particular provision,
whether a tax expenditure or not, has been used to modify, compensate,
or substitute for another provision. The administration's present tax
program, for example, proposes that the use of different taxes, the
rate schedules of different taxes, tax expenditure provisions, and other
tax provisions should be changed simultaneously in the light of the
entire set of proposed tax changes and the whole tax system. Thus,
as more tax expenditures are removed, the tax rate schedules would
ordinarily be reduced and the net effect on receipts might be small.
The effects on resource allocation and income distribution from repealing tax expenditure provisions would depend on which method of
changing tax rates and outlays—out of a limitless number of alternatives—would be used to compensate for their removal.
The administration is proposing extensive changes in tax expenditures and other provisions of tax law in its tax reform and reduction
program and in its energy plan. These proposals will reduce substantially the Nation's overall tax burden and will simplify the work of
filling out tax returns. The principal distributional and allocative goals
are to improve equity, stimulate business investment, and conserve
energy. The estimated effects of these proposals on receipts are shown
in Part 4.
In order to improve equity and simplify the tax system, the tax
reform proposal will generally reduce the tax expenditures under the
individual income tax. This will be accomplished by changing certain
tax expenditure provisions and also certain other provisions of law.
Some tax expenditure provisions, such as the deductions for State and
local sales and gasoline taxes, will be repealed, and the deductions
for medical expenses and casualty losses will be restricted. The
fraction of taxpayers itemizing deductions is estimated to decline
256
THE BUDGET FOR FISCAL YEAR 1979
from 23.3% to 16.5%. The decrease in taxpayers itemizing deductions
will automatically decrease tax expenditures for all deductions, including those not changed by the proposals. Finally, as noted above,
the tax expenditures for all deductions and exclusions will be decreased
by the reduction in the tax rate schedules and by the subsitution of
personal tax credits in place of deductions for personal exemptions.
Equity will also be improved by limiting the deductibility of business
meals to half their cost and by repealing the deductibility of tickets
to entertainment and membership dues in clubs. These changes are not
defined as reducing tax expenditures, however, since tax expenditure
analysis ordinarily accepts the definition of deductible business expense under current law.
Business investment will be stimulated by reducing the corporation
income tax rates and liberalizing the investment tax credit. The credit
will be made permanent at its current rate, extended to include industrial and utility structures as well as equipment, and generally
allowed to offset a greater proportion of tax liability than before. The
tax reduction from the investment tax credit will be a tax expenditure,
whereas the tax reduction from the cut in the maximum corporate
rate will not.
The tax measures to conserve energy, as proposed by the administration last year and included in this budget, primarily make use
of excise taxes. By definition, excise taxes do not lead to tax expenditures. The crude oil equalization tax, the oil and natural gas consumption tax, and other excises are designed to raise the prices of oil
and natural gas. This is intended to encourage both the conservation
of energy in general and the conversion of facilities that burn oil and
natural gas to the use of other kinds of fuel. In addition, several tax
expenditure provisions are proposed, such as the residential and business energy credits, that will allow tax credits for the installation of
insulation and solar equipment and for the conversion of oil burning
and natural gas burning equipment to coal.
BUDGET FUNDS AND THE FEDERAL DEBT
The budget may be divided into two major groups of funds: Federal funds and trust funds.16
16
Data for Federal funds and trust funds are presented in Special Analysis C, "Funds in the Budget,"
in Special Analyses, Budget of the United States, Fiscal Year 1979.
SELECTED ASPECTS OF THE BUDGET
257
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
purpose. The trust funds, on the other hand, collect certain taxes and
other receipts for specified purposes, such as payment of social security and unemployment insurance benefits.
BUDGET FINANCING AND CHANGE IN DEBT OUTSTANDING
(In billions of dollars]
Description
1977
actual
Budget surplus or deficit ( - )
Deficit ( - ) of off-budget Federal entities
Total, surplus or deficit ( - )
197**
estimate
1979
estimate
-45.0
-61.8
-60.6
—8.7
—11.5
-12.5
-53.7
-73.4
-73.1
—2.2
7.1
*
1.8
.3
.4
0.2
—.5
.6
-.1
—.2
.5
.2
7.4
.1
—53.5
—66.0
—73.0
53.5
66.0
73.0
.6
8.3
.3
.2
10.0
.2
.8
13.9
.3
9.2
10.4
15.1
62.8
76.4
88.1
Means of financing other than borrowing from the public:
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 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
.
Off-budget Federal entities
Total, change in Federal agency investments in Federal debt.
Change in gross Federal debt
*$50 million or less.
_.
258
THE BUDGET FOR FISCAL YEAR
1979
The budget combines the receipts and outlays of the Federal funds
and trust funds and deducts the various transactions that occur between them. I t therefore generally displays the net transactions of the
Federal Government with the public. Thus, as is shown in the table
on the preceding page the unified budget surplus or deficit is the principal determinant of the change in Federal debt held by the public.
In the last several years, however, the transactions of the Federal
Financing Bank and other off-budget Federal entities have become an
important determinant of the change in Federal debt held by the
public. The transactions of the off-budget Federal entities have been
excluded from the budget under provisions of law and are not part of
either the Federal funds or the trust funds grouping. Were they to be
included in the budget, virtually all transactions of off-budget Federal
entities would be classified as Federal funds transactions.
BUDGET TOTALS BY FUND GROUP
[In millions of dollars]
1977
actual
Budget receipts:
Federal funds
Trust funds
Intcrfund transactions
Total, budget receipts
Budget outlays:
Federal funds
Trustfunds
Interfund transactions
1978
estimate
1979
estimate
240,412 267,889 289,095
152,763 168,490 187,991
-36,313 -35,992 -37,498
356,861
__
Total, budget outlays
Budget surplus or deficit (—):
Federal funds
Trustfunds
Total, budget deficit ( - )
Memorandum:
Outlays, off-budget Federal entities1
Total deficit including off-budget Federal entities
_
400,387
439,588
294.948 340,036
143,267 158,190
-36,313 -35,992
363,580
174,092
-37.498
401.902
462,234
500.174
-54,536 -72,147
9,496
10,300
-74,485
13,899
-45,040 -61,847
-60,586
-8.693 -11,514
-12,538
-53.733
-73,124
-73,361
1
All off-budget Federal entities are revolving funds; income is offset against expenditures to derive
net outlays. Hence, no adjustments are made to receipts when on and off-budget totals are consolidated. Virtually all off-budget outlays would be classified as Federal funds outlays if they were
included in the budget.
SELECTED ASPECTS OF THE, BUDGET
259
The deficit expected for 1979 and the other factors noted in the
preceding table are estimated to increase the Federal debt held by the
public to $690.8 billion by the end of that year.
Gross Federal debt is the sum of the debt held by the public and the
debt held by the Government itself, such as the investments of Treasury debt by the social security trust funds. The Federal funds deficit is
the principal determinant of changes in gross Federal debt, but deficits
of off-budget Federal entities also have an important effect.
Gross Federal debt is estimated to rise from $785.6 billion on
September 30, 1978, to $873.7 billion on September 30, 1979. As indicated in the lower section of the table on "Budget Financing and
Change in Debt Outstanding," $15.1 billion of this increase will be
held by trust funds and other Federal agencies, reflecting mainly 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. This borrowing is part of the
gross Federal debt. At the end of 1977 the outstanding debt of such
agencies that was held by the public was $10.3 billion. This debt is
expected to fall by small amounts in 1978 and 1979 due to the operations of the Federal Financing Bank, which buys most new issues
of agency debt and finances its purchases through Treasury borrowing.
To prevent double counting, these holdings are not included in gross
Federal debt. Consequently, the change in agency debt is largely
determined by the repayment of securities that have matured.
Almost all Treasury debt issues are covered by a statutory debt
limit, but most borrowing by Federal agencies other than the Treasury
is excluded from this limit. The ceiling on the debt subject to limit is
$752 billion through March 31, 1978. To permit the Federal Government to meet its obligations, this ceiling will have to be extended and
raised.
Debt subject to the general statutory limit is somewhat less than
gross Federal debt, primarily because of the agency debt excluded from
the general statutory limitation. Both debt concepts include internally
held debt, such as social security trust fund holdings of Treasury
debt securities. At the start of 1978 internally held debt was $157.3
billion. Thus, debt held by the public was much less than debt defined
by either of the other two concepts.
Since trust fund surpluses for the most part are invested in debt
securities included within the general statutory limit, the Federal
260
THE BUDGET FOR FISCAL YEAR
1979
funds deficit and the deficit of the off-budget Federal entities are the
main factor requiring increases in the debt subject to the statutory
limit. The Federal funds deficit in 1979 is estimated to be $74.5
billion, and the deficit of the off-budget Federal entities is estimated
to be $12.5 billion. As shown in the following table, these two factors
will account for most of the increase in the debt subject to limit.
FEDERAL FUNDS FINANCING AND CHANGE IN DEBT SUBJECT TO LIMIT
[In billions of dollars]
Description
1977
actual
Federal funds surplus or deficit ( - )
Deficit ( - ) of off-budget Federal entities
Total, amount to be
financed.
1978
estimate
1979
estimate
-54.5
-72.1
-74.5
-8.7
-11.5
-12.5
-63.2
—83.7
-87.0
—2.2
7. 1
2.9
.3
.4
1.4
.5
—.5
.6
7.7
—.2
—.2
.5
.1
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 offinancingother than borrowing
Decrease or increase (—) in Federal funds and off-budget entity
investments in Federal debt
Increase or decrease (—) in Federal funds and off-budget entity
debt not subject to limit
—.9
—.5
—1.2
—1.4
—1.5
—1.5
Total, requirements for borrowing subject to debt limit
—64.1
—78.0
—89.6
64.1
78.0
89.6
Change in debt subject to limit
*$50 million or less.
A substantial part of the Federal funds deficit—and, therefore, a
substantial part of the growth in debt subject to limit—is associated
with transactions between Federal funds and trust funds. These
transactions consist primarily of Federal funds payments to trust
funds: interest paid on Treasury debt issues held by trust funds; the
SELECTED ASPECTS OF THE BUDGET
261
employer share of employee retirement, the Federal payment t o
finance the unfunded liability of the civil service retirement fund; and
other payments, mainly to social insurance trust funds—such as the
Federal Government's contribution for supplementary medical
insurance. The trust fund payments to Federal funds are relatively
small.
BUDGET SURPLUS OR DEFICIT (-) BY FUND GROUP *
[In billions of dollars]
Description
Federal funds:
Transactions with the public 2 .
Transactions with trust funds
_.
Total
Trust funds:
Transactions with the public2_._
Transactions with Federal funds
Total
Budget total:
Federalfunds_
Trust funds
Total...
_
.._
_
_...
_
1977
1978
1979
-25.2
-29.3
-43.3
—28.8
-44. 1
-30.4
-54.5
-72.1
-74.5
-19.8
29.3
—18.5
28.8
-16.5
30.4
9.5
10.3
13.9
-54.5
9.5
-72.1
10.3
-74.5
13.9
-45.0
-61.8
-60.6
1
For purposes of this analysis, payments from Federal funds to the general revenue sharing trust
fund are treated as transactions with the public instead of transactions with a trust fund; and the
corresponding payments from the general revenue sharing trust fund to the public are accordingly
omitted. This is because the general revenue sharing trust fund has no independent source of funding,
and serves only as a channel through which a Federal funds payment is made to the public.
3
Includes some incidental transactions with off-budget Federal entities.
From 1967 through 1977, the cumulative Federal funds deficit was
$352.3 billion, of which $158.4 billion was attributable to transactions
with trust funds and the remaining $193.9 billion was attributable to
transactions with the public. A significant Federal funds deficit can
occur, as was the case in 1969, when there are surpluses in the unified
budget and in the transactions of the Federal funds with the public.
The relevant figures for 1977 through 1979 are shown in the table
above.
262
THE BUDGET FOR FISCAL YEAR 1979
In the early 1960's gross Federal debt was well over 50% of GNP,
and debt held by the public was well over 40%. Since that time,
however, the proportion of both declined more or less steadily
through 1974. Because of the large deficits resulting from the recent
recession and its aftermath, gross Federal debt as a proportion of
GNP has risen slightly from about 36% in 1974 to our estimated 38%
in 1979, while debt held by the public has risen from 25% to 30%
over the same time span. Even so, the proportion of both gross debt
and debt held by the public are estimated to remain nearly constant
from 1977 through 1979.
Federal Debt as a Percent of GNP
60*
40*
RECONCILIATION OF ACTUAL AND ESTIMATED RECEIPTS
AND RELATIVELY UNCONTROLLABLE OUTLAYS
This section of the budget explains, for major programs that have
relatively uncontrollable outlays, the differences between their actual
1977 outlays and the amounts estimated in the 1977 budget, which
was transmitted to the Congress in January 1976. It also explains
SELECTED ASPECTS OF THE BUDGET
263
differences between actual receipts and the original estimate of
receipts. These reconciliations are required by section 601 of the
Congressional Budget Act of 1974.
Reconciliation of actual and estimated outlays that are
relatively uncontrollable.—Outlays are defined as relatively uncontrollable in any one year when the President's decisions in that
year can neither increase nor decrease them without a change in
substantive law. That is, under existing law these outlays depend
generally upon factors that are beyond administrative control, such
as benefit payments to which beneficiaries are entitled by law or
contractual agreements or other currently legally binding commitments that have already been made.
The amounts estimated in the budget for relatively uncontrollable
outlays may differ from the actual outlays for a number of reasons.
For example, legislation may change benefit rates or coverage; the
number of beneficiaries under a program may differ from the number
estimated; and economic conditions (such as the interest rates required
for Federal borrowing) may differ from what was assumed in developing the outlay estimates.
The January 1976 estimate of uncontrollable outlays did not include
the outlay effect of legislation then being proposed. This is a standard
practice consistent with the definition of uncontrollable outlays stated
above. Where legislation was enacted that significantly affected
relatively uncontrollable outlays in 1977, it is identified in the discussion below.
The following table shows the differences between actual outlays
for relatively uncontrollable programs in 1977 and the estimated
amounts shown in the 1977 budget. The list of such programs in these
tables is consistent with Table 14 (Controllability of Budget Outlays)
in Part 9 of this year's budget.
As the following table shows, actual 1977 outlays for relatively
uncontrollable programs were $9.7 billion lower than originally
estimated. Open-ended programs and fixed costs were $1.8 billion below
the original estimate for 1977. Open-ended programs and fixed costs
consist mainly of benefit programs, grants, and subsidies for which
eligibility is automatic or fixed by law; interest payments; and payments for the legislative and judicial branches, which the President
must—by law—include in the budget as submitted and without change.
Outlays from prior-year contracts and obligations were $7.9 billion
below the original estimates.
264
THE BUDGET FOR FISCAL YEAR 1979
RELATIVELY UNCONTROLLABLE OUTLAYS FOR 1977
[In billions of dollars)
January
1976
estimate
Description
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
__
_
Veterans benefits: Pensions, compensation, education, and
insurance
_
Medicare and medicaid
_._
_
Housing payments
_
_
Public assistance and related programs 2 3
Subtotal, payments for individuals 1 2 3
Net interest
General revenue sharing
Farm price supports (CCC)
_
Other open-ended programs and fixed costs
_
Total, open-ended programs and fixed costs1 2 3
Outlays from prior-year contracts and obligations: *
National defense.....
._
Civilian programs.
Total, outlays from prior-year contracts and obligations...
Total, relatively uncontrollable outlays
87.2
18.6
(8.5)
Actual
87.7
17. 8
(8.2)
Change
from
1976
estimate
.4
—.8
(-.3)
(10.1)
(9.6)
(-.5)
17.1
15.8
—1.2
13.3
31.2
3.0
20.6
12.9
31.4
2.9
20.9
-.4
.3
—.1
.3
191.0
32.9
6.5
.8
8.8
189.5
30.0
6.8
3.5
8.6
-1.5
-3.0
.2
2.7
—.2
240.1
238.3
-1.8
25.9
37.3
18.5
36.8
-7.4
—.5
63.2
55.3
—7.9
303.2
293.6
-9.7
1
Based on controllability classification used in the 1979 budget. Uncontrollable outlays now
include
the Public Health Service officers retirement program.
2
Revised to treat earned income credit payments in excess of an individual's tax liability as tax
refunds.
3 Based on controllability classification used in the 1979 budget. Uncontrollable outlays now
include
the child nutrition and special milk program.
4
Excludes prior-year contracts and obligations for activities shown above as "open-ended programs
and fixed costs."
Most of the $1.8 billion overestimate in payments for individuals
can be explained by differences between assumed and actual economic
conditions and beneficiary levels, and by the effects of legislation
enacted after the budget was transmitted.
Outlays for social security and railroad retirement were $0.4 billion
above the original estimates. Lower cost-of-living adjustments reduced
outlays for these programs by $0.2 billion. The January 1976 estimates assumed a 6.7% increase in July 1976 and a 5.9% increase in
July 1977; the actual increases were 6.4% and 5.9% respectively.
SELECTED ASPECTS OF THE BUDGET
265
This reduction was more than offset by an increase in outlays for railroad retirement program ($0.2 billion) and a large increase in average
benefits per claim for the disability insurance program ($0.3 billion).
Outlays for Federal employee retirement programs were $0.8 billion
below the original budget estimates. Public Law 94-440—a rider to
the Legislative Branch Appropriation Act of 1977—changed the
method of calculating mandated cost-of-living increases for Federal
retirees. Previously, cost-of-living increases for Federal retirement
programs occurred whenever the Consumer Price Index (CPI) increased by 3% and remained at that level or higher for 3 months.
Benefits would then be raised by the percentage increase in the CPI
at the high month of the 3-month period plus 1 percentage point.
The new law eliminated this so-called 1% "kicker" and established
semiannual cost-of-living increases effective in March and September.
Enactment of this new legislation reduced retirement costs by $0.2
billion; $0.1 billion each for military and for other Federal employee
programs. Lower inflation rates lowered the original estimates by
another $0.2 billion, again split evenly between military and other
Federal retirement programs. In addition outlays were revised downward by $0.4 billion as a result of significant overestimates of the
number of Civil Service retirees. The January 1976 budget overestimated the number of new retirees by 28,000 in 1976 and 35,000 in
1977.
Outlays for unemployment insurance programs were $1.2 billion
below the original estimates. The actual unemployment rate for fiscal
year 1977 was 7.3% compared to an assumed rate of 7.1%. However,
the insured unemployment rate, which is the basis for projecting unemployment benefits, was 0.5 percentage points below the January
1976 projection. This was the major reason for the $1.2 billion shortfall in unemployment outlays.
Actual 1977 outlays for veterans programs were $0.4 billion lower
than the original budget estimates. Legislated increases for compensation benefits (8.0% effective October 1, 1976) and pension benefits (7.0% effective January 1, 1977), together with a larger number of
pension beneficiaries than expected, raised outlays for these programs
by $0.8 billion from the original estimates. Outlays for readjustment
benefits, however, were $1.3 billion below the January 1976 estimates
due to a large overestimate of the number of participants in these
programs. About 800,000 fewer veterans applied for benefits than
anticipated.
Outlays for medicare were $0.3 billion lower in 1977 than originally
assumed, while medicaid outlays were $0.6 billion higher. The increased outlays for medicaid resulted from greater than anticipated
increases in participants applying for benefits.
266
THE BUDGET FOR FISCAL YEAR 1979
Uncontrollable outlays for housing subsidy programs were $0.1
billion below the original estimates, reflecting a slower rate of new
construction of these units.
Public assistance programs, which include public assistance cash
payments, food stamps, and child nutrition programs, were overestimated by more than $0.3 billion. However, there were large offsetting
revisions in outlays within this broad category. Food stamp outlays
were $0.7 billion above the original estimates due to a postponement of
administrative changes. Those changes would have reduced the
number of eligible individuals covered by the program. Supplementary
security income outlays were overestimated by $0.6 billion due largely
to a significant overestimate of the number of beneficiaries, particularly elderly individuals. Welfare cash payments were $0.1 billion
higher than originally estimated, reflecting higher benefit levels
enacted by various States.
Net interest outlays were $3.0 billion below the original 1977 estimates. Interest on the public debt was $3.1 billion lower due to
slightly lower than anticipated debt levels and significantly lower interest rates during 1976 and 1977. The January 1976 budget assumed
a 5.5% interest rate on 91-day Treasury bills through 1977. Actual
interest rates averaged 5.4% in 1976 and 4.9% in 1977. Interest received by trust funds, which is offset against interest costs to reflect
transactions with the public, was $0.2 billion less than estimated,
reflecting lower interest rates.
Outlays for general revenue sharing were $0.2 billion above the
estimates of January 1976. Public Law 94-488, the State and Local
Fiscal Assistance Amendments of 1976, increased the amount each
jurisdiction received by changing the formula under this program.
Farm price supports were $2.7 billion higher than estimated due to
legislated price support increases and poorer market conditions.
Outlays for wheat accounted for nearly $2.0 billion of this increase.
An anticipted large demand for grain exports did not materialize, and
the surpluses from record high production resulted in large outlays
for commodity loans. Also, the administration increased substantially the commodity loan levels for wheat and feed grains. Higher price
supports for dairy products and price weaknesses for other commodities contributed to higher outlays.
Other open-ended programs and fixed costs were overestimated by
$0.2 billion. Changes in military sales credits reduced outlays by
$1.0 billion; this was partially offset by payments to the Postal
Service funds, which were $0.8 billion higher than originally estimated,
reflecting passage of Public Law 94-421, the Postal Reorganization
Act Amendments of 1976.
SELECTED ASPECTS OF THE BUDGET
267
Outlays from prior-year contracts and obligations were $7.9 billion
lower for 1977 than assumed in January 1976. National defense
outlays in this category were $7.4 billion lower, reflecting a significantly slower rate of spending than anticipated, while civilian programs were $0.5 billion lower for 1977. Major overestimates for
civilian agencies included $0.5 billion for the Department of Transportation, $0.4 billion each for Funds appropriated to the President,
the Environmental Protection Agency and the National Aeronautics
and Space Administration, and $0.2 billion for the Department of
Commerce. Major underestimates for civilian agencies included $0.4
billion for the Department of Housing and Urban Development,
$0.3 billion for the Department of Agriculture, and $0.5 billion for the
Department of Health, Education, and Welfare.
Reconciliation of actual and estimated receipts.—As shown
in the following table, receipts for 1977 were $6.2 billion greater than
the original budget estimate. Legislated tax changes that were substantially different from those proposed in the 1977 budget are largely
responsible for this net increase.
COMPARISON OF FISCAL YEAR 1977 RECEIPTS
[In billions of dollars]
January
1976
estimate
Individual income taxes
_
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
Estateand gift taxes
_
Customs duties..
Miscellaneous receipts
Total
l
_
_
_._
Actual
Change
from
1976
estimate
153.0
49.5
113.1
17.8
5.8
4.3
7.2
156.7
54.9
108. 7
17.5
7.3
5.2
6.5
3.7
5.4
—4.4
-.3
1.5
.8
—.7
1350.7
356.9
6.2
1
Revised to treat earned income credit payments in excess of the tax liability otherwise owed as
tax refunds instead of outlays.
In the 1977 budget, permanent individual and corporation income
tax reductions were proposed to become effective July 1, 1976, along
with several tax incentives to encourage specific economic activities.
The other major tax proposals affecting 1977 receipts included an
increase in the combined employer-employee social security tax rate
from 11.7% to 12.3% effective January 1, 1977, and an increase in the
Federal unemployment insurance tax rate (from 0.5% to 0.65%) and
wage base (from $4,200 to $6,000) effective January 1, 1977.
268
THE BUDGET FOR FISCAL YEAR 1979
The Congress essentially rejected these proposals, enacting alternative legislation. On October 4, 1976, the Tax Reform Act of 1976 was
enacted. This act extended some temporary tax provisions that had
originally been scheduled to expire on June 30, 1976, and made others
permanent.17 It also enacted a number of major tax reforms and other
changes. Amendments to the Unemployment Compensation Act in
1976 increased the Federal unemployment insurance tax rate from
0.5% to 0.7% effective January 1, 1977, and postponed the proposed
increase in the wage base to January 1, 1978.
The Tax Reduction and Simplification Act of 1977, enacted in May,
also affected 1977 receipts. This act replaced the low income allowance ($2,100 for a joint return and $1,700 for a single taxpayer)
and the percentage standard deduction (16% of adjusted gross income
with a maximum deduction of $2,800 for a joint return and $2,400 for a
single taxpayer) with a flat standard deduction of $2,200 for single
taxpayers and $3,200 for married couples filing jointly. Withholding
rates were reduced on June 1, 1977, to reflect these changes. The act
included a jobs credit based upon certain new employees hired in
calendar years 1977 and 1978 and postponed the effective date of
certain provisions of the Tax Reform Act of 1976.
Individual income taxes were $156.7 billion in 1977, $3.7 billion
greater than the original budget estimate. As shown in the following
table, nonenactment of the 1977 budget proposals resulted in an
increase in receipts of $22.8 billion. This increase was partially offset
by the Tax Reform Act of 1976 and the Tax Reduction and Simplification Act of 1977, which reduced 1977 receipts by $13.2 billion and
$2.1 billion, respectively. Slightly lower than anticipated economic
activity and an overestimate of tax payments caused actual receipts
to be lower than estimated receipts by an additional $3.9 billion.
Corporation income tax receipts were $54.9 billion in 1977, $5.4
billion greater than the original budget estimate of $49.5 billion.
Differences in tax law from the legislation proposed in the 1977 budget
resulted in a net increase in receipts of $3.2 billion. Differences in
tax collections and economic conditions from those assumed in the
budget account for the remaining $2.3 billion increase.
Social insurance taxes and contributions in 1977 were $4.4 billion
less than originally estimated, with lower employment taxes and contributions accounting for $3.8 billion of the shortfall. Nonenactment
of the proposed increase in the social security tax rate to 12.3%, effective January 1, 1977, was largely responsible for this underrun in
17
Previously the Congress had enacted interim legislation that extended reductions in individual
income tax withholding rates and the corporation income tax rate that were scheduled to expire
on June 30, 1976. These rates were extended because the Congress had not completed action on
the substantive tax law changes that were later incorporated into the Tax Reform Act of 1976.
SELECTED ASPECTS OF THE BUDGET
269
RECONCILIATION OF FISCAL YEAR 1977 RECEIPTS ESTIMATES
{In billions of dollars)
January
1976
estimate
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions. _.
Excise taxes
_
r _._
Estate and gift taxes
Customs duties
Miscellaneous receipts
Total
_
ReInaction
estimates
on
Enacted
and
legislative legislation revised
proposals
economic
assumptions
H53.0
49.5
113.1
17.8
5.8
4.3
22.8
6.2
—5.4
7.2
I
*350.7
23.4
1-15.2
-3.0
.3
*
.1
1-17.8
Actual
receipts
-3.9
2.3
.8
-.2
1.5
.7
156.7
54.9
108.7
17.5
7.3
5.2
-.5
6.5
.7
356.9
*$50
million or less.
1
Revised to treat earned income credit payments in excess of the tax liability otherwise owed as
tax refunds instead of outlays.
employment tax receipts. The remainder of the underrun in social
insurance receipts is accounted for by a shortfall in unemployment tax
receipts of $0.8 billion that was only partially offset by $0.2 billion
more than anticipated in contributions for other insurance and
retirement accounts. Proposed increases in the unemployment
insurance tax rate, from 0.5% to 0.65%, and base, from $4,200 to
$6,000 (both to become effective January 1, 1977), had been expected
to increase unemployment tax receipts by $2.1 billion. However, the
Unemployment Compensation Amendments of 1976, which increased
the unemployment insurance tax rate from 0.5% to 0.7% effective
January 1, 1977, and did not increase the tax base until January 1,
1978, increased unemployment tax receipts by only $0.3 billion. This
net decrease in unemployment tax receipts of $1.8 billion was partially
offset by Higher than anticipated State taxes deposited in the Treasury
to finance unemployment benefits.
An increase in estate and gift taxes of $1.5 billion largely reflects
accelerated gifts in calendar year 1976 that were made in response to
certain provisions of the Tax Reform Act of 1976.
Excise taxes in 1977 were $0.3 billion below the 1977 budget estimate, while customs duties were $0.8 billion higher.
A shortfall in 1977 miscellaneous receipts of $0.7 billion is in large
part due to a $0.3 billion overestimate of deposits of earnings by the
Federal Reserve System and a $0.3 billion overestimate of import fees
on crude oil and petroleum products.
260-000 O - 78 - 18
PART 7
THE BUDGET SYSTEM
AND CONCEPTS
271
THE BUDGET SYSTEM AND CONCEPTS
The budget system of the U.S. Government is based upon a structure for financial administration that has as objectives the efficient
management of programs in relation to the requirements of the Nation
and effective financial control.
THE BUDGET PROCESS
The budget process has four main phases: (1) executive formulation
and transmittal; (2) congressional action; (3) budget execution and
control; and (4) review and audit. Each of these phases interrelates
with and overlaps the others.
Executive formulation and transmittal.—The budget sets forth
the President's financial plan of operation and thus indicates his
priorities for the Federal Government during the coming year. The
President's transmittal of his budget to the Congress early in each
calendar year is the climax of many months of planning and analysis
throughout the executive branch. Formulation of the 1979 budget
began in the spring of 1977, although tentative goals for some programs were set earlier. The 1979 budget was the first prepared using
zero-base budgeting (ZBB), a management process that provides for
systematic, in-depth consideration of all programs and activities in
conjunction with planning, budgeting, and evaluation.
During the period when a budget is being formulated in the executive branch, there is a continuous exchange of information, proposals,
evaluations, and policy decisions among the President, the Office of
Management and Budget (OMB), and the various Government
agencies. Decisionmaking in the budget process is facilitated by the
adoption of the zero-base approach.
In the spring, agency programs are evaluated, policy issues are
identified, and budgetary projections are made, giving attention both
to important modifications and innovations in programs and to
alternative long-range 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. About the same
time, the President receives projections of the economic outlook that
are prepared jointly by the Council of Economic Advisers, the Department of the Treasury, and OMB.
272
THE BUDGET SYSTEM AND CONCEPTS
273
Following a review of these projections, the President establishes
general budget and fiscal policy guidelines for the fiscal year that will
begin about 15 months later—and, beginning this year, for 2 years
beyond. Tentative policy decisions and planning ceilings are then
given to the agencies to govern the preparation of their budgets.
Throughout the fall and early winter the executive branch is involved in the development of the President's budget. One feature of
this process involves preparation of the current services estimates,
which are required by the Congressional Budget Act. 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 at the time the estimates are submitted. The current services estimates are intended to
provide a basis for review of the President's budget. These estimates are required to be submitted by November 10 in order to
provide the Congress with early information on projected costs of
current programs. However, when the current services estimates are
transmitted approximately 3 months before the President's budget,
the economic assumptions underlying them are likely to be different
from those in the budget because of changes in the economy during
the intervening period. Therefore, this year, the Appropriations,
Budget, and Joint Economic Committees have agreed to a 1-year
experiment in which the current services estimates are transmitted
with the President's budget, and therefore, are based upon the same
economic assumptions.
The primary budget process involves the preparation of the President's budget for transmittal to the Congress. This process involves
a detailed OMB review of agency zero-base budget requests. These
requests and OMB's recommendations on them are presented to the
President for decision and are subsequently discussed with the agencies along with the President's final decisions. Overall fiscal policy
issues—relating to total budget outlays and receipts—are again
examined. The effects of budget decisions on outlays in the years
that follow are also considered and are explicitly taken into account.
Thus, the budget 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 budget reflects the results of both of these
considerations.
Congressional action.—The Congress can act as it wishes on the
President's budget proposals. It can change programs, eliminate them,
or add programs not requested by the President. It can increase or
decrease the amounts recommended by the President to finance
274
THE BUDGET FOR FISCAL YEAR 1979
existing and proposed new programs. It may also act upon legislation
determining taxes and other means of increasing receipts.
In making appropriations, the Congress does not normally vote
on 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, sets a limit on the amount that
subsequently can be appropriated for the program. Many programs
are authorized for a specified number of years, or even indefinitely;
other programs, such as nuclear energy programs, space exploration,
defense procurement, foreign affairs, and some construction programs,
require annual authorizing legislation.
The granting of budget authority is usually a separate, subsequent
action. Generally, budget authority becomes available each year only
as voted by the Congress. However, in a significant number of cases,
the Congress has voted permanent budget authority, under which
funds become available annually without further congressional action.
Most 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. Under
the procedures established by the Congressional Budget Act, the
Congress considers budget totals prior to completing action on individual appropriations. The act requires that each standing committee
of the Congress submit reports on budget estimates to the House and
Senate Budget Committees by March 15; and that the Congressional
Budget Office submit a fiscal policy report to the two budget committees by April 1. This is followed, no later than May 15, by the adoption
of the first concurrent budget resolution, containing Government-wide
budget targets of receipts, budget authority, and outlays to guide the
Congress in its subsequent consideration of appropriations and revenue
measures.
Congressional consideration of requests for appropriations and for
changes in revenue laws are considered 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.
As 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
THE BUDGET SYSTEM AND CONCEPTS
275
resolve the issues. 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 in the form of an enrolled bill, for his approval or veto.
After action has been completed on all money bills, the Congress
will, by September 15, adopt a second concurrent resolution. The
resolution adopted by the Congress will contain budget ceilings
classified by function for budget authority and outlays, and &floorfor
budget receipts. This resolution may retain or revise the levels set
earlier in the year, and can include directives to the appropriations
committees and to other committees to recommend changes in new or
carryover authority or entitlements. Similarly, the second resolution
may direct the appropriate committees to recommend changes in
budget receipts or in the statutory limit on the public debt. Changes
recommended by various committees pursuant to the second budget
resolution are to be reported in a reconciliation bill (or resolution, in
some cases) on which the Congress must complete action by September
25, a few days before the new fiscal year commences on October 1.
After the Congress completes action on the reconciliation bill or
resolution, it may not consider any spending or revenue legislation
that would breach any of the levels specified in the second resolution.
The Congress would only be able to pass a supplemental appropriation
that would cause budget authority or spending to rise above, or reduce
receipts below, the second resolution's totals if it adopts a new budget
resolution changing the levels set by the second resolution.
If action on appropriations is not completed by the beginning of
the fiscal year, the Congress may enact a "continuing resolution" to
provide authority for the affected agencies to continue operations until
their regular appropriations are enacted.
Budget execution and control.—Once approved, the budget
becomes the financial basis 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 (usually quarters) or by activities. Obligations
may not be incurred in excess of the amount apportioned. The objective of the apportionment system is to ensure the effective and orderly
use of available authority and to reduce the need for requesting
additional or supplemental authority.
Changes in laws or other factors may indicate the need for more
authority during the year, and supplemental requests may have to
276
THE BUDGET FOR FISCAL YEAR 1979
be transmitted to the Congress. On the other hand, reserves may be
established under the Antideficiency Act (31 U.S.C. 665) to provide
for contingencies or to effect savings made possible by or through
changes in requirements or greater efficiency of operations. Amounts
may also be withheld for policy or other reasons pursuant to the Impoundment Control Act.
Whenever the President determines that all or part of any budget
authority provided by the Congress will not be required to carry out
the full objectives or scope of a program for which it was provided, or
that such budget authority should be rescinded for fiscal policy or
other reasons, a special message is transmitted by the President to the
Congress requesting a rescission of the budget authority. The budget
authority proposed by the President for rescission must be made
available for obligation unless both the House and the Senate pass a
rescission bill within 45 days of continuous session after receiving the
President's message.
Whenever all or part of any budget authority provided by the
Congress is deferred (that is, temporarily withheld from obligation),
the President transmits a special message to the Congress on such
deferrals. Either House may, at any time, pass a resolution disapproving this deferral of budget authority, thus requiring that the funds
be made available for obligation. When no congressional action is
taken, deferrals may remain in effect until, but not beyond, the end
of the fiscal year. If the funds remain available beyond the end of a
fiscal year and continued deferral of their use is desired by the President, he must transmit a new special message to the Congress.
Review and audit.—This is the final step in the budget process.
The individual agencies are responsible for assuring—through their
own review and control systems—that the obligations they incur and
the resulting outlays follow the provisions of the authorizing and
appropriating legislation, as well as other laws and regulations relating
to the obligation and expenditure of funds. OMB reviews program
and financial reports and keeps abreast of agency programs and the
effort to attain program objectives.
In addition, the General Accounting Office (GAO), as an agent of
the Congress, regularly audits, examines, and evaluates Government
programs. Its findings and recommendations for corrective action are
made to the Congress, to OMB, and to the agencies concerned. The
GAO also monitors the executive branch's reporting of special messages on proposed rescissions and deferrals. The GAO reports any items
not reported by the executive branch and any differences that it may
have with the classification (as a rescission or deferral) of withholdings
included in special messages submitted by the President. The GAO
THE BUDGET SYSTEM AND CONCEPTS
277
may bring civil actions to obtain compliance should the President fail
to make budget authority available in accordance with the Impoundment Control Act.
COVERAGE OF THE BUDGET TOTALS
Agencies and programs.—The budget totals cover agencies and
programs (including Government corporations) owned by the Federal
Government, no matter how funded, except for the following offbudget Federal entities:
Exchange stabilization fund,1
Rural electrification and telephone revolving fund,
Rural Telephone Bank,
Board of Governors of the Federal Reserve System,
Pension Benefit Guaranty Corporation,
Postal Service fund,
United States Railway Association,2
Federal Financing Bank.
The totals also exclude privately owned, Government-sponsored
enterprises, such as the Federal land banks and Federal home loan
banks. The off-budget Federal entities listed above are discussed in
Part 6 of the Budget, and financial statements are presented in Part
IV of the Budget Appendix. These data are also presented in selected
tables throughout the budget documents. Privately owned Government-sponsored 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,
the Congress must pass resolutions establishing budget targets and
ceilings by 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.)
1
The administration has proposed legislation to include the administrative expenses of the
Exchange
stabilization fund (ESF) in the budget. See Part 6 for additional information.
2
Investments in Con Rail securities, which comprise almost all of the Association's activity after
1977.
are
included
in the budget.
8
A discussion of this subject is also found in Part 5 of this volume.
278
THE BUDGET FOR FISCAL YEAR 1979
• A function must be of continuing national importance and be
significant in size, that is, normally account for at least 2% of
total budget outlays over a number of years.
• Each basic unit of classification (generally the appropriation or
fund account) is classified into the single be&t or predominant
purpose and assigned to only one function. However, when an
account 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.
National needs presentation.—Section 601 of the Congressional
Budget Act of 1974 (Public Law 93-344) requires that the budget for
each fiscal year beginning with the fiscal year ending September 30,
1979:
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.
While national needs and agency missions have not been specified,
as such, in previous budgets, the thrust of the budget functional
classification has always been to summarize what the Government is
doing, or expects to do, in terms of the ultimate purpose that the
Government programs are designed to serve. Building upon this basic
approach, the budget functional classification was refined in preparation for the 1979 budget to provide a sharper focus on end purposes
and accomplishments. In addition, 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. This is in keeping with the act, which states:
To the extent practicable, each agency shall furnish information
in support of its budget requests in accordance with its assigned
missions in terms of Federal functions and subfunctions, including
mission responsibilities of component organizations, and shall
relate its programs to agency missions.
In addition, the conference report stated:
The conference substitute provides for the inclusion in the
President's budget of a presentation in terms of national needs,
agency missions, and basic programs. The managers anticipate
that this need not be a separate classification but can be incor-
THE BUDGET SYSTEM AND CONCEPTS-
279
porated, if the President deems it appropriate, into the main
budget classifications.
In the national needs presentation, Federal programs are discussed
in terms of national needs and the functional classification, and information is provided on the relationship of objectives, goals, accomplishments and allocation of budgetary resources to national needs.
In this context, a single program may be identified as serving several
national needs. For example, medicare, primarily a health program, is
identified as meeting the national need for improved health care.
However, it also provides a form of income security by paying for
medical bills and, hence, can also be identified as meeting the national
need for income security. A discussion of Federal programs based
solely on the functional classification system would have been limited
to discussion of each program, classified by major purposes served,
in only one category.
The national needs presentation can be found in Part 5 ("Meeting
National Needs: the Federal Program by Function")- Since this is
the first complete national needs presentation in the President's
budget, some of the approaches are, of necessity, experimental. It is
likely that some changes will evolve in future years.
Types of funds.—Agency activities are financed through Federal
funds and through trust funds, both of which are included in the
budget.
Federal funds are of four types. The general fund is credited with
receipts not earmarked by law for a specific purpose, and is charged
with payments from such receipts and from general borrowing. 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 revolving and management funds facilitate financing operations
within and between Government agencies.
Trust funds are established to account for receipt and expenditure of
moneys by the Government for use in carrying out specific purposes
and programs in accordance with the terms of a trust agreement or
statute. These moneys are not available for the general purposes of
the Government. Within the category of trust funds there is a special
subcategory of trust revolving funds that carry on a cycle of businesstype 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 also includes capital investment in the form of lending and the purchase of
280
THE BUDGET FOR FISCAL YEAR 1979
investments. These categorizations of outlays are discussed in Special
Analysis D.
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 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 funded.
For activities 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. Most
of these Federal activities, such as operations and maintenance,
entitlement programs and continuing research programs, are fully
funded on an annual basis.
For projects that are separate and distinct units, the amount of
budget authority requested covers the entire cost to complete each
project at the time it is initiated. Most direct Federal major procurement and construction projects are of this nature, and funds have
traditionally been requested to cover the full cost of the projects,
that is, "full funding" is requested. However, some of these projects
(for example, water resources construction) have not been fully
funded in the past. Beginning with fiscal year 1979, exceptions will
generally be eliminated under a new administration policy. Full
funding will apply to all new projects. However, ongoing projects
that have been incrementally funded in the past will continue to be
funded incrementally until completed.
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 and therefore requires a subsequent appropriation or receipts to "liquidate" (pay) these obligations. There is also authority to borrow; such budget authority permits
the use of borrowed money to incur obligations and make payments.
Since January 1976, it has not been 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 are provided in appropriations acts.
THE BUDGET SYSTEM AND CONCEPTS
281
Most appropriations for current operations are made available for
obligation only during a specified fiscal year {1-year appropriations).
Some are for a specified longer period {multiple-year appropriations).
Others, including most of those for construction, some for research,
and many trust fund appropriations, are made available for obligation until the objectives have been attained {no-year appropriations).
When budget authority is made available by the Congress for a
specific period of time, any part that is not used for obligations during
that period lapses and cannot be used later. Reappropriations—
congressional actions to continue availability of unused balances
that have lapsed—are counted as budget authority in the year of the
congressional action.
A rescission is a legislative action that cancels new budget authority
or unobligated balances of budget authority prior to the time the
authority would otherwise have lapsed. Rescissions are offset against
new budget authority 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 effectively delays the obligation or expenditure of budget
authority.
Most authority to obligate funds is granted year by year {current
authority). Under certain laws, some budget authority in Federal funds
and most budget authority in the trust funds become available from
time to time without further action by the Congress {permanent
authority).
The amount of budget authority is usually stated specifically in the
legislation that makes it available {definite authority). In a few cases
the amount is left indefinite, to be determined by subsequent circumstances {indefinite authority). Examples of the latter type are the
appropriation for interest on the public debt, and the trust fund
appropriation equal to receipts under the Federal Insurance Contributions Act (social security).
Obligations incurred.—Following the enactment of budget
authority, obligations are incurred by Government agencies. Such
obligations include the currently accruing liabilities for salaries and
wages, certain contractual services, and interest; entering into contracts for the purchase of supplies and equipment, construction and
the acquisition of land; entering into contracts to make loans; and
other contractual 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 occur) by the maturing of interest coupons in the case of some
bonds, or by the issuance of bonds or notes (or increases in the redemp-
282
THE BUDGET FOR FISCAL YEAR 1979
tion value of bonds outstanding). Outlays during a fiscal year may
be for payment of obligations incurred in prior years or in the same
year. Such 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.4 Total budget outlays
are stated net of deductions for offsetting collections (see collections
below), and exclude outlays of off-budget Federal entities.
Balances of authority.—Not all budget authority enacted for a
fiscal year is obligated and paid out in the same year. The obligated
balance is that portion of the budget authority that has been obligated
but not yet paid. For example, in the case of salaries and wages, one to
three weeks elapse between the time of obligation and the time of
payment. In the case of major procurement and construction, up to
several years may elapse. Obligated balances of budget authority are
carried forward until the obligations are subsequently paid. In addition, in multiple-year or no-year accounts, budget authority that is
still available for obligation (unobligated balances) may be carried
forward for obligation in the following year.5
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
two or more years, and may affect budget outlays for an even longer
period. In the case of standby budget authority, obligations and
outlays may never materialize.
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, to
which the appropriation was made. Obligations incurred through
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).
COLLECTIONS
In general.—Amounts collected during the year are classified into
two major categories:
• Budget receipts, which are compared with total outlays in calculating the budget surplus or deficit.
4
This process is depicted on a chart "Relation of Budget Authority to Outlays—J979
Budget"
in Part 6 of this volume.
5
Additional information on balances of budget authority is provided in a separate report, "Balances
of Budget Authority" that is published by OMB shortly after the budget is transmitted.
THE BUDGET SYSTEM AND CONCEPTS
283
• Of setting collections, which are deducted from disbursements in
calculating total outlays. Corresponding offsets are made in
arriving at total budget authority and net obligations incurred.
Budget receipts.—These are collections from the public that
result from the exercise of the Government's sovereign or governmental powers and from contributions paid by participants in certain
voluntary Federal social insurance programs. These collections, also
called governmental receipts, consist primarily of tax receipts and
social insurance premiums, 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 cost-sharing deposits by State and local governments)
are also counted as budget receipts.
Offsetting collections.—These are collections from other Government accounts or from transactions with the public that are of
a business-type or market-oriented nature. They are classified
into two major categories: 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 without appropriation action by the Congress, whereas funds
in receipt accounts cannot be used without being appropriated.
Collections credited to appropriation or fund accounts occur in two
circumstances :
• Reimbursements.—When authorized by law, amounts collected for
materials or services furnished (for example, amounts 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 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 spending and outlays are reported as the net
amount.
Offsetting receipts generally are deducted from budget authority
and outlays by function and/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 collec-
284
THE BUDGET FOR FISCAL YEAR 1979
tions are not counted as budget receipts, and, with one exception,
are offset against total budget authority and outlays by agency
and by function. The exception consists of receipts from rents and
royalties from Outer Continental Shelf lands that are deducted
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 Federal appropriations or fund accounts. They are
treated as an offset to budget authority and outlays, rather than
as a budget receipt. Intragovernmental transactions may either
be intrabudgetary (where the payment and receipt both occur
within the budgetary universe) or result from receipts from qffbudget Federal entities in those cases where the payment is made
by a Federal entity whose funds are excluded from the budget
totals. Normally, intragovernmental transactions are deducted
from both the outlays and the budget authority for the agency
receiving the payment. However, in two cases intragovernmental
transactions are not deducted from the figures of any agency or
function. Instead, intragovernmental transactions that involve
agencies' payments (including payments by off-budget Federal
entities) as employers into trust funds for retirement of employees
and the payment of interest to trust (nonrevolving) funds appear
as special deduct lines in computing total budget authority and
outlays for the Government.
Intrabudgetary transactions are further 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 intrajund transactions, in those
cases where the payment and receipt both occur within the Federal
fund group; and (3) trust intrajund transactions, in those cases where
the payment and receipt both occur within the trust fund group.
OTHER TRANSACTIONS
Borrowing and repayments.—Borrowing and debt repayment
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 forms of borrowing—such as the sale of agency securities, the assumption of military
family housing mortgages, and certificates representing participation in
a pool of loans. However, there are transactions that otherwise would
be treated as borrowing which are required by law to be treated as a
sale of assets. This results in collections being credited to an appropriation or fund account with a corresponding reduction in outlays.
THE BUDGET SYSTEM AND CONCEPTS
285
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, including the cost of manufacturing. 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 budget
deficit, or as a supplementary amount to be applied to reduce debt
or to increase the cash in Treasury in the years of a budget surplus.
The increment (profit) resulting from the revaluation of gold as a
monetary asset is treated like seigniorage, but the profit from sale of
gold as a commodity is treated as a proprietary receipt.
Liabilities in deposit fund accounts.—Accounts outside the budget, known as deposit funds, are established to record certain amounts
held in suspense temporarily, or held by the Government as agent for
others (for example, savings accounts for military personnel, State
and local income taxes withheld from Federal employees7 salaries, and
payroll deductions for the purchase of savings bonds by civilian
employees of the Government). Such transactions affect Treasury's
cash balances even though they are not a part of the budget.
Exchange of cash.—The Government's deposits with the International Monetary Fund (IMF) are considered similar to cash assets. Therefore, the movement of money between the IMF and the
Department of the Treasury is not in itself considered a receipt or an
outlay, borrowing or lending. In a similar manner, the holdings of
foreign currency by the Exchange stabilization fund (ESF)—an offbudget Federal entity—are considered as cash assets. Changes in
these holdings would be considered outlays only to the extent there
is a loss, and offsetting collections only to the extent there is a profit
on the exchange.
Obligations to international lending organizations.—Debt
instruments issued (in lieu of checks) in payment of subscriptions to
international lending organizations are not considered borrowing or
outlays, but remain a part of the obligated balances until they are
cashed, at which time they become outlays. These differ only in form,
and not in substance, from ordinary balances for unpaid obligations.
BASIS FOR BUDGET FIGURES
In general.—Outlays are stated in terms of checks issued, including cash paid in lieu of checks, net of offsetting collections received.
The accrual basis is generally used for interest on the public debt
260-000 O - 78 - 19
286
THE BUDGET FOR FISCAL YEAR 1979
held by private investors; however, interest on the public debt held
by trust and other Government accounts was converted to a cash
basis during the transition quarter, and will remain on a cash basis
for future years. 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 issues the securities. In addition, budget schedules for
the Department of Energy include data for all 3 years, although the
Department was not established until fiscal year 1978. The budget
schedules for the agencies or parts thereof merged into the Department of Energy omit data applicable to activities transferred to the
Department, and appropriate information is presented in the Department of Energy schedules to identify the predecessor accounts.
Data for 1977.—The 1977 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. However,, the budget totals have
been revised retroactively to include the transactions of the Housing
for the elderly or handicapped fund and to reflect the treatment of
amounts of earned income credit in excess of tax liabilities as negative budget receipts instead of as budget outlays.
Data for 1978.—All regular appropriation acts for 1978 have
become law, except for the Labor, Health, Education, and Welfare, and
District of Columbia appropriations bills. A continuing resolution has
been enacted to provide appropriations for continued operation of
the affected agencies. Also, some supplemental appropriations and
rescissions are pending before the Congress, and additional supplemental appropriations will be required in certain cases. The additional
supplemental represent the amounts required for various pay raises
including those of October 1977 and the additional amounts requested
to meet previously unforeseen program costs.
Where the word "enacted" is used with reference to 1978, as in tables
1 and 5 of Part 9 of the Budget, the amount represents budget authority already voted by the Congress. In the case of indefinite appropriations, the enacted sums include the amounts likely to be required.
Actions "pending" before the Congress include supplemental appropriations and rescission proposals that are awaiting congressional
action. "Appropriations transmitted herein" include amounts for
unenacted appropriations for which appropriation language is provided, whether these amounts will be included in regular or supplemental appropriation bills. Where the word "estimate" is used, the
amounts may include pending appropriations, needed supplemental,
THE BUDGET SYSTEM AND CONCEPTS
287
and enacted budget authority. Certain standard footnotes are used
in Part 8 of the Budget (and are explained at the end of that part)
to specify the status of these additional items for 1978.
Data for 1979.—This budget is complete as to the estimates for
1979. Part I of the Budget Appendix generally includes the proposed
appropriation language for the various items identified in the budget.
However, in some instances, estimates are included in the budget
schedules without appropriation language for 1978 and 1979. For these,
the requested amounts may already be pending, proposed legislation
may be required, or the estimated amounts will be requested later
when the requirements are known. In certain tables of the budget these
items for later transmittal and the related outlays are separately
identified. Estimates of the total requirements for 1978 and 1979
include both the amounts formally proposed and the amounts planned
for later transmittal.
Allowances.—Lump sum allowances are included in the tables to
cover possible additional changes, such as civilian pay increases and
contingencies. The allowance for civilian agency pay raises includes an
estimate of the additional amounts that will be required for pay raises
anticipated in October 1978 for employees of civilian Government
agencies. A separate allowance for pay raises is shown for the military
and civilian employees of the Department of Defense and is included
in its figures. These increases could not be reflected in the various program appropriation requests since the applicable detailed amounts
have not yet been determined.
The allowance for contingencies is shown in two categories, as required by the Congressional Budget Act. The estimates in the first
category, "Relatively uncontrollable programs," are zero because the
probability of net decreases or net increases for such programs is
believed to be equal. The second category, "Other requirements,"
contains estimates for requirements not now foreseen for existing programs and for the possible enactment of legislation not specifically
provided for in the budget.
PART 8
THE FEDERAL PROGRAM
BY AGENCY AND ACCOUNT
289
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 current and definite appropriations except
where otherwise indicated. In addition, budget authority and
outlay data for off-budget Federal entities are presented at
the end of this table.
Functional code numbers are shown for each account as a
cross reference to tables 12 and 13 (pp. 443-469), 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 (pp. 279284).
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.
290
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
291
BUDGET ACCOUNTS LISTING (in thousands of dollars)
1977
actual
Account and functional code
1978
estimate
1979
estimate
LEGISLATIVE BRANCH
SENATE
Federal Funds
General and special funds:
6.474
6,474
25
25
6.480
6,480
25
25
94.680
116.154
Compensation and mileage of the
Vice President and Senators ....801
BA
0
Expense allowances of the Vice
President, Majority and Minority
Leaders and Majority and Minority
Whips
801
BA
0
5.884
5,863
22
14
Salaries, officers and employees..801
BA
96.393
116,154
BA
0
89,467
45
45
101,783
Payments to widows and heirs of
deceased members of Congress:
Indefinite
801
Office of the Legislative Counsel of
the Senate
801
BA
703
760
815
682
1.034
815
1.388
1,388
60
60
30.625
°7,103
Senate policy committees
801
BA
Automobiles and maintenance
801
BA
0
Inquiries and investigations
801
BA
848
45
37
25.654
Folding documents
0
801 BA
22,130
95
793
1.178
°93
1,271
50
50
28.441
D
1,554
29,995
95
Miscellaneous items
801
0
BA
77
24.339
103
21.476
103
28.943
Postage stamps
801
Stationery (revolving fund)
801
BA
0
BA
0
19,597
3
3
32
12
21,492
25
25
37
37
28,943
6
6
39
39
162.048
162,048
184.638
184,638
0
30,625
103
Public enterprise funds:
Senate restaurant fund
fund)
(revolving
801
-188
(revolving fund)
801
0
Senate computer center (revolving
fund)
801
0
Senate barber shops (revolving fund)
801
0
Total Federal funds Senate
BA
0
Recording studio
See footnotes at end of table.
^6
-10
-24
154.249
138,507
T H E BUDGET FOR
292
FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1S78
estimate
1979
estimate
LEGISLATIVE BRANCH—Continued
HOUSE OF REPRESENTATIVES
Federal Funds
General and special funds:
Payments to widows and heirs of
deceased members of Congress-.
Indefinite
801
Compensation of Members
801
Mileage of Members
801
House leadership offices
801
Salaries, officers and employees..801
BA
0
89
89
BA
25,144
27,760
27,699
0
24,422
27,760
27,699
BA
210
210
210
0
191
210
210
BA
1,938
2,057
2,147
0
1,622
D
90
1,949
0
23,257
801
BA
0
21,805
20,784
24,705
22,234
24,705
22,234
Committee on Appropriations
(Studies and Investigations) ....801
BA
2,753
2,768
D
8
2,895
0
Committee on Budget (Studies)....801
Office of the Law Revision Counsel:
22,283
1,932
22,904
D
1,420
22,034
Committee employees
BA
26,341
23,707
2,855
2,499
2,606
BA
329
261
261
0
158
235
235
D
BA
15
801
Appropriation, Current, indefinite...
Office of the Legislative Counsel..801
Members' clerk hire
801
Allowances and expenses
801
BA
370
394
0
308
370
392
BA
1,358
1.682
1,879
0
1,240
°69
1,583
1,691
BA
103.268
107,192
112,648
0
108,048
D
5,456
101,929
101,383
50.419
57,185
59,967
BA
435
D
0
Stationery (revolving fund)
801
Special and select committees
801
BA
0
BA
50,327
815
52,281
2,854
2,854
2,711
2,569
30,793
32,700
53,972
38,762
D
0
31,078
2,363
31,793
0
46
42
42
0
-133
-92
-92
fund)
801
0
20
-8
-8
801
0
-44
-16
-16
House barber shops (revolving fund)
801
0
15
15
15
New edition of
Columbia Code
the
District
of
801
Public enterprise funds:
House of Representatives restaurant
fund (revolving fund)
801
Recording
studio
(revolving
General and special funds:
Beauty shop (revolving fund)
See footnotes at end of table.
34,886
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
293
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
LEGISLATIVE BRANCH—Continued
HOUSE OF REPRESENTATIVES—Continued
Federal Funds—Continued
General and special funds:—Continued
Office of the attending physician
(revolving fund)
801
0
Intragovernmental funds:
BA
0
20
263,613
267,015
801
BA
1,551
Joint Committee on Atomic Energy
801
0
BA
0
BA
1,311
710
392
552
0
BA
0
0
479
363
461
453
Consolidated working fund
801
Total Federal funds House of
Representatives.
0
292,908
267,387
297,949
270,888
1,697
°103
1,800
1,800
1,081
°36
1,117
621
621
7
7
JOINT ITEMS
Federal Funds
General and special funds:
Joint Economic Committee
Joint Committee on Printing
American Indian
Commission
Policy
Joint Committee on
Ceremonies of 1977
801
Review
801
Inaugural
801
1,800
Statements of appropriations, Senate
801
0 .
Joint Committee on Taxation
BA
1,897
1,948
^228
2,300
0
1,971
1,867
^228
344
310
725
652
1,572
1,415
194
194
48,926
44,033
404
2,070
465
418
750
675
1,468
1,321
206
206
64,944
58,450
544
434
13
6
544
13
6
Office of the Attending Physician.801
ooo
801
General expenses, Capitol police..801
BA
0
BA
0
BA
0
BA
0
BA
Capitol Police Board
801
Education of pages
801
Official mail costs
801
Capitol Guide Service
801
Statements of appropriations, House
of Representatives
801
Joint Committee on Defense
Production: Indefinite
801
See footnotes at end of table.
0
BA
0
BA
0
388
425
702
620
1,619
1,344
180
208
95,830
60,695
406
371
13
178
183
294
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
LEGISLATIVE BRANCH—Continued
JOINT ITEMS—Continued
Federal Funds—Continued
General and special funds:—Continued
Joint Committee on Congressional
Operations: Indefinite
801
Total Federal funds Joint Items.
CONGRESSIONAL BUDGET OFFICE
Federal Funds
General and special funds:
Salaries and expenses
801
ARCHITECT OF THE CAPITOL
Federal Funds
General and special funds:
Office of the Architect of the Capitol:
Salaries
801
Contingent expenses
801
BA
0
743
565
BA
0
105.132
69,478
57.415
52,063
73.111
66,118
BA
9,577
8,814
10.400
9,800
11.368
11,200
BA
1.891
2.003
c
20
2.645
0
1,810
2,126
2,630
210
120
'90
260
'90
210
5.516
'575
C
229
6,415
BA
249
Capitol buildings
801
BA
6.066
BA
0
137
5,872
BA
1.918
BA
82
1,918
210
"68
Reappropriation
Capitol grounds
801
Reappropriation
0
West central front of the Capitol.801
0
Master plan for future development
of the Capitol grounds and
related areas
801
Acquisition of property as an
addition to the Capitol grounds
801
BA
0
Senate office buildings
801
Reappropriation
Construction of an extension to the
New Senate Office Building 801
Extension of additional Senate Office
Building site
801
See footnotes at end of table
6,581
'304
6,407
'271
1.919
C
94
4.241
2,144
3,436
2,022
227
'100
84
'100
3
39
BA
11,233
9.102
'682
C
437
10,329
BA
56
9,105
11,828
'307
10,957
'375
'33.000
23,005
44,461
0
BA
0
4,054
78
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
LEGISLATIVE B R A N C H — C o n t i n u e d
ARCHITECT OF THE CAPITOL—Continued
Federal Funds—Continued
General and special funds:—Continued
Acquisition of property as a site for
0
parking facilities for the United
States Senate
801
Plans for garage and related
facilities for the United States
Senate
801
0
Senate garage
801
BA
House office buildings
801
0
145
13
49
150
154
164
140
161
164
BA
15,101
21,065
0
17,524
18,177
^497
c
670
°35
21,912
^497
Acquisition of property, construction,
and equipment, additional House
Office Building
801
0
2
85
Capitol Power Plant
BA
11,239
801
19,648
0
10,916
12,317
C
137
12,533
Expansion of facilities, Capitol Power
Plant
801
0
20
265
Modifications and enlargement,
Capitol Power Plant
801
BA
0
12,000
4,612
8,465
7,939
Alterations and improvements,
buildings and grounds, to provide
facilities for the physically
handicapped
801
0
319
1,048
1,274
Structural and mechanical care,
Library buildings and grounds .801
Reappropriation
BA
2,355
2,169
134
2,795
BA
0
71
2,083
2,497
2,760
C
15,545
15,345
7
Library of Congress James Madison
Memorial Building
801
BA
0
29,808
5,000
35,826
Total Federal funds Architect of
the Capitol.
BA
0
62.509
88,807
93,415
132,319
63,409
126,977
BA
112
BA
83.617
81,295
C
184
°3,672
102,058
0
80,409
89,487
100,371
Trust Funds
Contributions from the United States
Capitol Historical Society: Permanent
503
LIBRARY OF CONGRESS
Federal Funds
General and special funds:
Salaries and expenses
503
See footnotes at end of table.
10,129
[971
THE BUDGET FOR FISCAL YEAR 1979
296
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
LEGISLATIVE BRANCH—Continued
LIBRARY OF CONGRESS—Continued
Federal Funds—Continued
General and special funds:—Continued
Copyright Office: Salaries and
BA
expenses
376
0
9,642
8,561
8,795
7.946
D
615
9,393
National Commission on New
Technological Usage of
Copyrighted Works: Salaries and
expenses
376
BA
0
560
488
520
547
Congressional Research
Salaries and expenses
BA
20.520
26,379
0
19,897
21,795
"1,196
23,573
Books for the blind and physically
handicapped: Salaries and
expenses
503
BA
21.818
43,073
15,013
28.721
C
9
D
124
30,279
Collection and distribution of library
materials (special foreign currency
program)
503
BA
0
2.910
2,804
3.441
3,259
3,860
3,967
Furniture and furnishings
503
BA
0
2.942
1,189
7.031
9,327
9.455
18,368
Oliver Wendell Holmes devise fund
(special fund): Permanent
503
itragovemmental funds:
Consolidated working fund
503
BA
0
4
26
8
11
2
20
-251
-495
Total Federal funds Library of
Congress.
BA
0
142.013
128,370
156.557
165,381
193.388
198,884
Trust Funds
Gift and trust fund accounts,
non-revolving: Permanent
503
BA
0
5.521
4,931
6,048
6,831
5.349
5,646
BA
0
93.639
91,481
12,953
28,500
11,476
17,876
71,674
42,374
73,961
38,961
21,751
D
294
26,146
23,200
Service:
801
GOVERNMENT PRINTING OFFICE
Feoetol Funds
General and special funds:
Printing and binding
801
0
Congressional printing and binding
801
BA
0
Office of Superintendent of
Documents: Salaries and expenses
806
BA
Acquisition of site and general plans
and designs of buildings
806
BA
0
47,815
Project planning
806
ntragovemmental funds:
Government Printing Office revolving
fund
806
Total Federal funds Government
Printing Office.
See footnotes at end of table.
48.888
BA
0
8,506
56
26,512
41,079
27,695
18,000
22,600
41
41
-24,346
-24,064
-690
141,727
114,991
106,672
72,997
126,637
106,442
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
297
BUDGET ACCOUNTS LISTING (in thousands of dollare)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
LEGISLATIVE BRANCH—Continued
GENERAL ACCOUNTING OFFICE
Federal Funds
General and special funds:
Salaries and expenses
801
UNITED STATES TAX COURT
Federal Funds
General and special funds:
Salaries and expenses
752
Construction
752
Total Federal funds
States Tax Court.
United
Trust Funds
Tax Court judges survivors annuity
fund: Permanent, indefinite...
602
BA
157,090
0
154,639
Salaries
and
801
Copyright Royalty Tribunal: Salaries
and expenses
376
187,843
8,715
185,400
BA
7,254
0
7,054
8,188
"106
8,323
0
1,444
1,000
262
BA
0
7,254
8,498
8.294
9,323
8.715
8,950
BA
0
99
65
105
44
110
44
268
347
340
350
343
BA
1.233
1.283
1.392
0
BA
1,224
1,382
1,392
276
726
935
OTHER LEGISLATIVE BRANCH AGENCIES
Federal runds
General and special funds:
Commission on Security and
BA ..
Cooperation in Europe: Salaries
0
and expenses
801
Botanic Garden:
expenses
167,000
"8,980
173,735
8,688
704
909
Board:
801
BA
0
1.700
1,571
1.837
1,800
1.850
1,813
Temporary Commission on Financial
Oversight of the District of
Columbia: Salaries and expenses:
Permanent
801
BA
0
1.500
-20
3.000
830
3.000
4,750
Office of Technology Assessment:
Salaries and expenses
801
Appropriation, Current, indefinite...
BA
6.797
7.400
D
281
10.000
BA
0
569
7,066
9,501
9,600
BA
0
12.075
10,109
14.978
14,557
17,527
18,807
1,055,239
989,228
1,078.667
1,059,610
1.164,585
1,178,304
0
Cost-Accounting Standards
Salaries and expenses
Total Federal funds Other
Legislative Branch Agencies.
Trust Funds
Office of Technology Assessment:
Contributions and donations.Permanent
801
SUMMARY
Federal funds:
(As shown in detail above)
BA
0
BA
0
See footnotes at end of table.
..
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
LEGISLATIVE B R A N C H — C o n t i n u e d
SUMMARY—Continued
rmlmnl
I QUQIUI lfimilt.—TmrfimuJ
U n O K —"~wOflTInUCCI
Deductions for offsetting receipts:
Intrafund transactions
803 BA1
0 J
902
Proprietary
public
receipts
from
BA1
0 i
-429
S
-4
-6.722
801
-7,248
-5.901
-5,914
BA 1.040.836
0
974.825
1.072.518
1,053,461
1.158.429
1,172,148
Trust funds:
(As shown in detail above)
BA1
0 J
BA
0
5.733
4,996
Deductions for offsetting receipts:
Proprietary receipts from the BA1
public
503 0 J
-3,203
902
BAl
0 J
-104
BA
0
2.426
1,689
803 BA1
0 J
- 1 6
Total trust funds
Total Legislative Branch
BA 1.043,246
0
976,498
-20
-2
the B A \
503 0 J
Total Federal funds
Interfund transactions
-220 -220
-20
6.153
5.459
6,875
5,691
-2,926
-2,925
-110 -110
3.117
3,839
- 2 0
1.075.615
1,057,280
2.424
2,656
- 2 0
1.160.833
1,174,784
THE JUDICIARY
SUPREME COURT OF THE UNITED STATES
Federal funds
General and special funds:
Salaries and expenses
752 BA
0
Care of the buildings and grounds
752
Total Federal funds Supreme
Court of the United States.
BA
831
1,238
BA
0
6\563
8,319
0
7,081
0
COURT OF CUSTOMS AND PATENT APPEALS
rooeml runcfs
General and special funds:
Salaries and expenses
752 BA
See footnotes at end of table.
7.732
968
968
8.391
"383
8,418
8.960
8,660
800 1.000
C
54
1,187
967
9.628
9,605
9.960
9,627
1,020
1,099
D
46
1,064 1,098
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
299
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
THE JUDICIARY—Continued
CUSTOMS COURT
Federal Funds
General and special funds:
Salaries and expenses
COURT OF CLAIMS
Federal Funds
General and special funds:
Salaries and expenses
752
752
BA
2.886
3.055
2,731
2.907
D
156
3,050
0
BA
2.754
3.000
3.574
0
2,696
3,076
3,546
34.082
33,371
139,312
39.700
39,450
148,400
M56
D
10,251
156,880
^153
24.000
D
445
23,596
23,250
21,750
27,600
40.258
40,150
164.970
31,104
^20
18,430
99,577
99,499
8,616
7,978
1,003
2,130
COURTS OF APPEALS, DISTRICT COURTS. AND
OTHER JUDICIAL SERVICES
Feaeral Funds
General and special funds:
Salaries of judges
752 BA
0
Salaries of supporting personnel..752
BA
139,383
Defender services
752
BA
BA
0
Travel and miscellaneous expenses BA
752
0
Fees of jurors and commissioners
752
Salaries and expenses
magistrates
of
752
Furniture and furnishings
752
Speedy trial planning
752
Compensation and
special masters
agencies, The
752
expenses
of
752
Salaries and expenses of referees
752
BA
14,311
27,755
^90
17,500
BA
0
BA
0
0
0
13,527
71.980
68,137
4.940
4,139
154
2,654
17,560
89,700
89,684
7.500
6,232
920
3,522
BA
0
BA
0
Total Federal funds Courts of
Appeals, District Courts, and
other Judicial Services.
See footnotes at end of table.
21,813
21,500
19,549
24,380
22,816
164,870
24,800
24,412
23,250
23,300
31.695
752
Space and facilities
Pre-trial services
Judiciary
21,000
3,055
BA
0
31,791
29,402
363,296
354,945
^5,875
^280
33.500
D
1,135
34,006
429,492
421,878
18,367
^1,620
35.315
35,162
446.911
449,618
THE BUDGET FOR FISCAL YEAR 1979
300
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
THE J U D I C I A R Y — C o n t i n u e d
ADMINISTRATIVE OFFICE OF THE UNITED
STATES COURTS
Federal Funds
General and special funds:
Salaries and expenses
752
BA
Judicial survivors' annuity program
602
Introgovemmental funds:
Consolidated working fund
752
Total Federal funds
Administrative Office of the
United States Courts.
FEDERAL JUDICIAL CENTER
Federal Funds
General and special funds:
Salaries and expenses
752
9,387
0
BA
0
9,778
31,100
31100 ...
0
BA
0
-247
40,487
40,631
BA
BA
7,772
10,500
D
575
11,028
25 ....
11,075
11,053
6,550
12.562
12,506
12.562
12,506
8.744
D
0
8,781
144
7,280
^54
8,333
A
l
BICENTENNIAL EXPENSES. THE JUDICIARY
Federal Funds
General and special funds:
Bicentennial activities
806
0
397
339
100
6,356
1,915
7,135
2,124
BA
0
35,523
4,776
2,215
2,162
BA
0
37,738
6,938
6.356
2,021
7,135
2,124
BA
0
426,726
419,468
464.174
457,399
485.905
487,884
-1,196
-1,225
-1,225
JUDICIARY TRUST FUNDS
Trust Funds
Judicial survivors' annuities fund:
Permanent
602
Operation of the Public Defender
Service for the District of Columbia-.
Permanent
752
Total trust funds
Trust Funds.
Judiciary
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
750
902
Total Federal funds
Trust funds:
(As shown in detail above)
See footnotes at end of table.
BA
0
BAl
0 J
BA1
0 J
-57
106
-60
-60
BA
0
425.473
418,215
462.889
456,114
484,620
486,599
BA
0
37,738
6,938
6,356
2,021
7,135
2,124
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
THE JUDICIARY—Continued
SUMMARY—Continued
Trust funds:—Continued
Deductions for offsetting receipts:
Proprietary receipts from the
public
752
Total trust funds
Interfund transactions
602
BA1
0 J
-2,215
BA
0
35,523
4,723
BA1
-31,100
6,356
2,021
7,135
2,124
469,245
458,135
491,755
488,723
0 I
Total The Judiciary
BA
0
429,896
391,838
EXECUTIVE OFFICE O F THE PRESIDENT
COMPENSATION OF THE PRESIDENT
Federal Funds
General and special funds:
Compensation of the President
802
BA
0
250
250
250
250
250
250
BA
0
17,162
17,236
16,440
16,440
16,907
16,907
BA
2,180
2,575
0
2,062
2,157
C
38
D
41
2,236
OFFICIAL RESIDENCE OF THE VICE PRESIDENT
Federal Funds
General and special funds:
Operating expenses
802
BA
0
91
245
121
111
129
171
SPECIAL ASSISTANCE TO THE PRESIDENT
Fedeml Funds
General and special funds:
Salaries and expenses
802
BA
0
1,271
993
1,327
1,327
1,280
1,280
COUNCIL OF ECONOMIC ADVISERS
Federal Funds
General and special funds:
Salaries and expenses
802
BA
1,873
2.042
0
1,833
1,995
°23
2,033
THE WHITE HOUSE OFFICE
Federal Funds
General and special funds:
Salaries and expenses
802
EXECUTIVE RESIDENCE
Federal Funds
General and special funds:
Operating expenses
802
See footnotes at end of table.
260-000 O - 78 - 20
2,575
2,036
302
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
EXECUTIVE OFFICE OF THE PRESIDENT—Continued
COUNCIL ON ENVIRONMENTAL QUALITY AND
OFFICE OF ENVIRONMENTAL QUALITY
Federal Funds
General and special funds:
Council on Environmental Quality
BA
and Office of Environmental
0
Quality
802
Intragovemmental funds:
Consolidated working fund
802 0
Total Council on Environmental
Quality and Office of
Environmental Quality.
3,300
3,240
2,854
2,854
"3,126
3,126
2J54
2,854
3J26
3,126
540
BA
0
3^300
3,780
BA
0
1,450
1,083
134
COUNCIL ON WAGE AND PRICE STABILITY
Federal Funds
General and special funds:
Salaries and expenses
802 BA
0
1,917
1,861
2,100
1,790
1,753
1,760
BA
0
1,775
1,501
2,684
2,555
2,650
2,766
BA
3,270
3,432
0
2,965
3,000
M60
D
155
3,195
4.300
#174
4,048
7,279
COUNCIL ON INTERNATIONAL ECONOMIC
POLICY
G e n e r a l a n d special f u n d s :
Salaries and expenses
DOMESTIC COUNCIL
Federal Funds
General and special funds:
Salaries and expenses
802
802
NATIONAL SECURITY COUNCIL
Federal Funds
General and special funds:
Salaries and expenses
802
OFFICE OF ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
802
BA
0
OFFICE OF DRUG ABUSE POLICY
Federal Funds
General and special funds:
Salaries and expenses
802
See footnotes at end of table.
BA
0
1.100
280
429
931
3,427
7,140
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
303
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1978
estimate
1977
actual
EXECUTIVE OFFICE O F THE
OFFICE OF MANAGEMENT AND BUDGET
Federal Funds
General and special funds:
Salaries and expenses
802
BA
1979
estimate
PRESIDENT—Continued
27,472
24,991
4
635
D
857
27,548
^635
28,146
2,840
4,040
0
25,435
Office of Federal Procurement Policy:
Salaries and expenses
802
BA
1.681
0
1,101
2,770
3,851
Total Office of Management
and Budget.
BA
0
29,153
26,536
29,373
30,953
32,186
31,239
OFFICE OF SCIENCE AND TECHNOLOGY
POLICY
Federal Funds
General and special funds:
Salaries and expenses
802
BA
0
2.300
1,811
2.800
3,000
2,621
2,700
OFFICE OF THE SPECIAL REPRESENTATIVE
FOR TRADE NEGOTIATIONS
Federal Funds
General and special funds:
Salaries and expenses
802
BA
2,581
2,680
2,665
2,232
2,900
2,700
8.476
8,559
2,399
2,659
0
OFFICE OF TELECOMMUNICATIONS POLICY
Federal Funds
General and special funds:
Salaries and expenses
802
BA
0
SPECIAL ACTION OFFICE FOR DRUG ABUSE
PREVENTION
Federal Funds
General and special funds:
Salaries and expenses
554
0
Special fund for drug abuse
554
0
Total Special Action Office for
Drug Abuse Prevention.
0
27,388
...
...
32
128 ...
160
SUMMARY
Federal funds:
Total Executive Office of the
President.
See footnotes at end of table.
BA
0__
78,149
73,387
75,571
77,571
78.895
78,082
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
F U N D S APPROPRIATED T O THE PRESIDENT
APPALACHIAN REGIONAL DEVELOPMENT
PROGRAMS
Federal Funds
General and special funds:
Appalachian regional development
BA
programs
452
Contract authority
BA
Permanent
BA
Liquidation of contract authority...
0
Public enterprise funds:
Appalachian housing fund
452
112,400
122,700
221,000
(185,000)
21,000
180,000
(211,300)
(221,000)
247,966
305,000
315,000
902
2,000
1,950
BA
0
118,000
248,868
313,400
307,000
343,700
316,950
BA
300.000
200,000
0
294,016
150,000
M 50,000
225,000
^150,000
ECONOMIC STABILIZATION ACTIVITIES
Federal Funds
General and special funds:
Salaries and expenses
802
0
-255
1,000
104
1,000
1,017
1.000
1,000
25
474
264,550
"133,500
209,280
220,000
"-40,200
190,000
25,000
25,259
30,000
29,000
"32,100
31,000
Total Appalachian Regional
Development Programs.
DISASTER RELIEF
Federal Funds
General and special funds:
Disaster relief
453
UNANTICIPATED NEEDS
Federal runos
General and special funds:
Unanticipated needs
802
0
118,000
BA
0
EXPENSES OF MANAGEMENT IMPROVEMENT
Federal Funds
General and special funds:
Expenses of management
0
improvement
802
283,600
FOREIGN ASSISTANCE
International Security Assistance
Federal Funds
General and special funds:
Military assistance
152
BA
0
200,000
International military education and
training
152
BA
0
Military assistance,
Vietnamese Forces
0
-10,521
5,000
3,000
BA
698,500
"672,500
570,486
675,850
"5,000
540,000
1,757,700
1,061,880
2,219,300
1,813,000
"1,854,400
1,666,000
South
152
Foreign military credit sales
152
Security supporting assistance
151
0
See footnotes at end of table.
BA
0
530,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
305
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
FUNDS APPROPRIATED TO THE PRESIDENT—Continued
FOREIGN ASSISTANCE—Continued
International Security Assistance—Continued
Federal Funds—Continued
General and special funds:—Continued
Emergency security assistance for
0
Israel
152
Public enterprise funds:
Liquidation of foreign military sales
0
fund
152
Trust Funds
Advances, foreign military sales:
155
Contract authority, Permanent,
indefinite.
Liquidation of contract authority
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
150
152
10,548
695
-5,000
-2,000
BA
8,625,095
11,100.000
12,300.000
0
(9,368,676)
8,209,640
(8,700,000)
8,500,000
(9,200,000)
9,500,000
BA
0
2,745,750
1,867,627
3,109,950
2,572,000
2,692,500
2,428,000
BA1
0 J
-125
BA\
-312,076
-302,000
-297,000
BA
0
2,433,549
1,555,426
2,807.950
2,270,000
2,395.500
2,131,000
BA
0
8,625,095
8,209,640
11,100,000
8,500,000
12,300,000
9,500,000
BA1
0 J
-9,368,676
-8,700,000
-9,200,000
BA
0
-743,581
-1,159,036
2.400,000
-200,000
3,100,000
300,000
BA
0
1.689.968
396,390
5.207,950
2,070,000
5,495,500
2,431,000
BA
0
1,141,477
874,615
1,925,500
837,768
3,504,598
908,554
0 I
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
155
Total trust funds
Total International
Assistance.
Security
International Development Assistance
MULTILATERAL ASSISTANCE
Federal Funds
General and special funds:
International financial institutions
151
United States participation,
supplementary financing facility,
IMF
155
BA
Payment to the International Fund
for Agricultural Development.... 151
0
International
programs
BA
0
BA
0
organizations
and
151
Total Federal funds,
Multilateral Assistance.
See footnotes at end of table.
"200,000
10,000
20,000
243,750
250,310
231,250
232,620
*282,150
270,220
1,385,227
1,124,925
2,356,750
1,080,388
3,786,748
1,198,774
306
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
FUNDS APPROPRIATED TO THE PRESIDENT—Continued
FOREIGN ASSISTANCE—Continued
International Development Assistance—Con.
BILATERAL ASSISTANCE
Federal Funds
General and special funds:
Functional development assistance
BA
program
151
0
Sahel development program
151
Payment to the Foreign Service
retirement and disability fund.153
856,000
512,263
BA
0
BA
21,250
21,250
American
abroad
schools
and
931,000
742,266
"1,262,400
889,201
50,000
5,000
"90.000
18,000
21,450
'2,770
21,450
'2,770
24,820
24,820
hospitals
151
BA
0
19,800
13,799
23,750
20,954
"8,000
16,854
International disaster assistance. 151
BA
0
45,000
64,741
56,500
66,655
"25,000
44,012
Operating expenses of the Agency for
International Development
151
BA
195,055
"261,000
0
195,189
213.000
°6,352
218,166
Miscellaneous appropriations
151
Public enterprise funds:
Development loans—revolving fund
151
0
43,589
62,141
30,222
0
147,956
32,020
32,023
Housing and other credit guaranty
programs
151
0
1,079
2,369
2,333
Overseas Private
Corporation
0
-11,175
-42,692
-44,748
5,525
8,346
7,882
9,354
Investment
Inter-American Foundation
Intragovernmental funds:
Advance acquisition of
property—revolving fund
151
151
BA
0
0
118
0
-49
151
Office of the Inspector General of
Foreign Assistance
151
Consolidated working fund
255,048
151
Total Federal funds, Bilateral
Assistance.
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
151
241
-262
2,500
626
BA
0
1.137,105
994,023
1,304,822
1,142,186
1.679,102
1,277,745
BA
0
3,821
593
4,000
6,918
4,000
4,000
BA
0
2.522,332
2,118,948
3.661,572
2,222,574
5.465.850
2,476,519
-281,573
-319,493
-338,966
0
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
150
See footnotes at end of table.
BAl
0 J
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
307
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
FUNDS APPROPRIATED TO THE PRESIDENT—Continued
FOREIGN ASSISTANCE—Continued
International Development Assistance—Con.
Summary—Continued
Federal funds:—Continued
902
BAl
0 J
Total International Development
Assistance.
2.042,624
1,639,240
3,099.544
1,660,546
4,848.359
1,859,028
BA
0
3,821
593
4,000
6,918
4.000
4,000
BAl
0 J
-3,818
-4,000
-4,000
oro
Total trust funds
BA
0
3
-3,225
oro
Deductions for offsetting receipts:
Proprietary receipts from the
public
151
-278,525
2,042,627
1,636,015
3,099,544
1,663,464
4,848,359
1,859,028
BA
0
34,000
31,404
37,100
33,875
"40,000
39,747
oro
Trust funds:
(As shown in detail above)
-242,535
5,000
467
5,000
4,689
"5,000
4,844
oro
Total Federal funds
-198,135
.
4,515,173
3,226,537
5,949,594
3,969,110
7.288.859
4,034,619
- 743,578
-1,162,261
2,400,000
-197,082
3.100,000
300,000
2,918
.
International Narcotics Control Assistance
Federal Funds
General and special funds:
International narcotics control
151
Contingencies
Federal Funds
General and special funds:
President's foreign
contingency fund
Total Federal
Assistance.
assistance
151
funds
Total trust funds
Assistance.
Foreign
Foreign
BA
0
ISRAEL-UNITED STATES BINATIONAL
AGREEMENTS
Federal Funds
General and special funds:
BA
0
Israel-United States binational
agricultural research and
development fund
352
BA
0
Total Israel-United States
Binational Agreements.
See footnotes at end of table.
oro
Israel-United States binational
industrial research and
development foundation
151
30,000
30,000
.
40,000
40,000
30.000
30,000
.
.
40,000
40,000
308
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING ( i n thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
FUNDS APPROPRIATED TO THE PRESIDENT—Continued
PETROLEUM RESERVES
Federal Funds
General and special funds:
Petroleum Reserves-.
Petroleum reserves (Energy
supply)
271
Current, indefinite
Petroleum reserves (Emergency
energy preparedness): Indefinite
274
Total, Petroleum Reserves
BA
406,116
BA
0
24,659
107,225
213,821
BA
0
367,066
122,003
245,063
BA
0
797,841
229,228
458,884
112,501
458,884
112,501
458,884
112,501
112,501
Summary
Federal funds:
(As shown in detail above)..
Deductions for offsetting receipts:
Proprietary receipts from the
public
271
Total Petroleum Reserves
BA
0
BA1
0 I
BA
0
797,841
229,228
-379,385
418,456
-150,157
PUBLIC WORKS ACCELERATION
• Gel© fw f • ^ncfs
General and special funds:
Public works acceleration
452
0
1,166
SUMMARY
Federal f u n d s :
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the
public
150
152
6,553,923
4,820,432
BA1
0 J
-281,698
BA1
-312,076
0I
271
902
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
151
BA1
0 I
-379,385
7.428,022
5,976,679
8,788,050
5,703,161
-319,493
-338,966
-302,000
-297,000
BA1
-198,135
-242,535
-278,525
0 I
BA
0
5,382,629
3,649,138
6.563,994
5,112,651
7,873.559
4,788,670
BA
0
8,628,916
8,210,233
11,104,000
8,506,918
12.304,000
9,504,000
-3,818
-4,000
-4,000
BA1
0 J
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
3Q9
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
F U N D S APPROPRIATED T O THE PRESIDENT—Continued
SUMMARY—Continued
Trust funds:—Continued
155
BA1
0 I
-9,368,676
-8,700,000
-9,200,000
Total trust funds
BA
0
-743,578
-1,162,261
2,400.000
-197,082
3,100,000
300,000
Total Funds Appropriated to the
President.
BA
0
4,639,051
2,486,877
8,963,994
4,915,569
10,973,559
5,088,670
DEPARTMENT OF AGRICULTURE
DEPARTMENTAL ADMINISTRATION
Federal Funds
General and special funds:
Departmental administration
352
Intragovemmentat funds:
Working capital fund
BA
14,809
0
14,229
352
0
2,112
Miscellaneous consolidated working
funds
352
0
-15,891
14,299
C
22
D
744
14,673
16,700
16,308
Total Federal funds
Departmental Administration.
BA
0
14,809
450
15,065
14,673
16,700
16,308
OFFICE OF THE SECRETARY
Federal Funds
General and special funds:
Office of the Secretary
352
BA
2,337
4,473
0
2,978
2,496
"188
^145
2,591
27,750
28,412
32,186
OFFICE OF THE INSPECTOR GENERAL
Federal Funds
General and special funds:
Office of the Inspector General 352
BA
4,380
G
0
25,907
BA
9,321
0
8,901
388
29,274
31,633
OFFICE OF THE GENERAL COUNSEL
Federal Funds
General and special funds:
Office of the General Counsel
See footnotes at end o1 table.
352
9,450
"580
9,851
10,325
10,146
THE BUDGET FOR FISCAL YEAR 1979
310
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
DEPARTMENT OF AGRICULTURE—Continued
AGRICULTURAL RESEARCH SERVICE
Federal Funds
General and special funds:
Agricultural Research Service
352
BA
281,909
323,588
BA
0
1.000
286,630
324,859
C
1,984
11,495
2,000
341,779
Scientific activities overseas (special
foreign currency program)
352
BA
0
7,500
7,102
5,750
6,750
7,500
7,500
Total Federal funds Agricultural
Research Service.
BA
0
290,409
293,732
346.088
348,529
331,088
324,875
Trust Funds
Miscellaneous contributed funds:
Permanent, indefinite
352
BA
0
847
848
975
975
976
976
129,022
120,572
143,150
148,457
158,150
144,949
D
Reappropriation
COOPERATIVE STATE RESEARCH SERVICE
Federal Funds
General and special funds:
Cooperative State Research Service
BA
Trust Funds
Miscellaneous contributed funds
352
0
352
0
352
BA
241,906
0
238,974
317,375
3
EXTENSION SERVICE
Federal Funds
General and special funds:
Extension Service
Intraaov
al funds:
Consolidated working fund
352
0
268,721
°341
265,730
262,047
263,111
1,193
2,517
Total Federal funds Extension
Service.
BA
0
241,906
240,167
269.062
268,247
262,047
263,111
NATIONAL AGRICULTURAL LIBRARY
Federal Funds
General and special funds:
National Agricultural Library
352
BA
6.193
7,631
0
6,309
6.877
°23B
7,189
0
27
13
7,113
7,202
Library facilities
352
Total Federal funds National
Agricultural Library.
BA
0
6,193
6,336
STATISTICAL REPORTING SERVICE
Federal Funds
General and special funds:
Statistical Reporting Service
352
BA
35,930
34,715
See footnotes at end of table.
36,885
1,859
38,396
D
7,721
7,631
7,721
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
311
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF AGRICULTURE—Continued
ECONOMIC RESEARCH SERVICE
Federal Funds
General and special funds:
Economic Research Service
352
BA
27,994
29,205
D
0
Intragovemmental fundsConsolidated working fund
151
0
27,358
AQcn
jJDU
1,627
30,832
*950
5,592
2,000
BA
0
27,994
32,950
31,782
33,782
ECONOMICS, STATISTICS, AND COOPERATIVES
SERVICE
Federal Funds
General and special funds:
Salaries and expenses
352 BA
5,647
6,376
80,008
5,614
°377
6,574
79,812
51
34
110
137
110
105
950
903
1,009
51.663
Total Federal funds Economic
Research Service.
0
Trust Funds
Miscellaneous contributed funds-.
Permanent, indefinite
352
BA
0
WORLD FOOD AND AGRICULTURAL OUTLOOK
AND SITUATION BOARD
General and special funds:
World food and agricultural outlook
and situation board
352
BA
0
FOREIGN AGRICULTURAL SERVICE
Federal Funds
General and special funds:
Foreign Agricultural Service
352
BA
39.950
0
36,460
45,517
°1.141
46,902
0
455
500
500
39.950
36,915
46,658
47,402
51.663
51,792
192
192
199
199
213
194
213
213
Salaries and expenses (special
foreign currency program)
352
Total Federal funds Foreign
Agricultural Service.
BA
0
INTERNATIONAL DEVELOPMENT STAFF
Federal Funds
General and special funds:
Salaries and expenses
352 BA
0
Trust Funds
Miscellaneous contributed funds:
BA
Permanent, indefinite
352
0
See footnotes at end of table.
97
97
959
51,292
THE BUDGET FOR FISCAL YEAR 1979
312
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF AGRICULTURE—Continued
FOREIGN ASSISTANCE PROGRAMS
Federal Funds
General and special funds:
Expenses, Public Law 480, foreign
assistance programs, Agriculture
151
Increase (-) or decrease in amount
owed by the Public Law 480
account to the Commodity Credit
Corportation
351
Total Federal funds Foreign
Assistance Programs.
AGRICULTURAL STABILIZATION AND
CONSERVATION SERVICE
Federal Funds
General and special funds:
Salaries and expenses
351
1.169,255
850,230
922.885
1,068,147
805.900
1,068,680
319,025
-145,262
-262,780
BA
0
1.169.255
1,169,255
922.885
922,885
805.900
805,900
BA
157.280
161.653
'57,145
^.445
167,317
'55,875
227.816
BA
0
0
160,393
Sugar Act program
351
program
302
BA
Contract authority
Liquidation of contract authority....
BA
Agricultural
conservation
0
2
150.000
190.000
(130,000)
182,994
302
BA
0
Total Federal funds Agricultural
Stabilization and
Conservation Service.
BA
0
10.000
5,129
19,702
10.000
15,859
4.050
3,883
15.000
12,701
536.330
400,663
FEDERAL CROP INSURANCE CORPORATION
Federal Funds
General and special funds:
Administrative and operating
BA
expenses
351
0
12.000
12,066
Water Bank Act program
Cropland adjustment program
Emergency
conservation
Dairy and beekeeper
program
BA
0
351
0
measures
453
indemnity
351
Forestry incentives program
See footnotes at end of table.
302
BA
0
BA
0
222,746
'1,270
100.000
"36,600
190.000
(240,000)
288,500
^36,600
10.000
6,100
(115,000)
181,700
10.000
7,100
10.000
15,000
4.050
4,050
15.000
15,658
493.893
589,100
10.000
15,000
3.240
3,240
10.000
15,661
361,056
446,717
12.000
12,000
12,000
12,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
3J3
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF AGRICULTURE—Continued
FEDERAL CROP INSURANCE CORPORATION
—Continued
Federal Funds—Continued
Public enterprise funds:
Federal Crop Insurance Corporation
fund
351
BA
^20,000
"30,000
0
Limitation on administrative and
operating expenses.
Total Federal funds Federal
Crop Insurance Corporation.
90,000
78,902
(9,384)
87,137
^22,826
7,518
"7,174
(11,413)
{ 1,005)
(12,669)
12,000
26,692
D
BA
0
102,000
90,968
62,000
121,963
BA
899,053
524,342
COMMODITY CREDIT CORPORATION
SUPPORT AND RELATED ACTIVITIES
Federal runas
Public enterprise funds:
Price support and related programs:
Reimbursement for net realized
losses
351
Authority to spend public debt
receipts.
Permanent, indefinite
990,900
- 990,900
J
•'5,500,000
*17,491
BA
1,529,240
J
- 4,031,342
4,031.342
j
{mm)
0
Limitation on administrative
expenses.
3,809,156
7,281,460
'17,491
4,275,895
(41,220)
(45,750)
'(5,950)
(50,100)
47,275
10,428
10,428
33,552
33,552
38,654
50,000
-50,000
-319,025
145,262
262,780
SPECIAL ACTIVITIES
Federal Funds
General and special funds:
National Wool Act (special fund):
Permanent, indefinite
351
BA
0
Intragovemmental funds:
302
0
Increase or decrease (-) in amount
owed to the Corporation by the
Public Law 480 account
351
(Conservation loans)
0
Total Federal funds, Special
Activities.
Total Federal funds Commodity
Credit Corporation.
47,275
10.428
33,552
0
BA
-308,597
228,814
251,434
BA
0
946,328
3,500,559
2.081.501
7,527,765
5,533,552
4,527,329
22,567
24,833
21,709
1,247
24,378
24,923
285.000
122,488
265,000
296,554
275,000
260,182
RURAL ELECTRIFICATION ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
271
BA
0
22,299
D
FARMERS HOME ADMINISTRATION
Federal Funds
General and special funds:
Rural development grant programs
451
See footnotes at end of table.
BA
0
THE BUDGET FOR FISCAL YEAR 1979
314
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1979
estimate
1978
estimate
DEPARTMENT OF AGRICULTURE—Continued
FARMERS HOME ADMINISTRATION—Continued
Federal Funds—Continued
General and special funds:—Continued
Salaries and expenses
452
BA
177,311
172,656
186,847
^5,260
°9,613
195,989
^5,000
3,500
4,000
16,500
20,723
5,000
"4,000
4,900
"4,000
209.891
209,340
^260
371
BA
0
repair
604
BA
3,500
3,866
16,500
10,397
5,000
0
4,929
Self-help housing land development
fund
371
0
324
472
525
Rural housing insurance fund
371
Current, indefinite
Permanent, indefinite
Authority to spend public debt
receipts.
Authority to spend public debt
receipts, Permanent, indefinite.
BA
BA
BA
175,429
344,402
188
726
320,192
43,740
344
'5,700
BA
0
330.163
88.803
385,155
433,821
23,529
-127,796
Agricultural credit insurance fund
351
BA
0
Rural development insurance fund
452
Authority to spend public debt
receipts, Permanent, indefinite.
BA
141,189
393,435
47,484
164,735
183,306
75.547
143,565
-388,210
107.276
BA
0
411,977
167,552
213.894
113,635
214,260
133,191
Rural community
grants
fire
protection
452
Rural housing grant programs
Very low income
grants
housing
BA
0
809
54.500
28,718
24,000
23,211
Public enterprise funds:
Community Services loan fund
452
Total Federal funds Farmers
Home Administration.
-1,244
-200
320
BA
0
1,593.741
963,206
1.680.190
1,262,200
1.421.997
146,250
BA
223.144
252,459
0
215,145
15.362
229,060
"13,600
230,900
15.506
"966
17,813
11,847
°740
13,610
156,492
"2,832
"30,000
264,833
^30,000
0
SOIL CONSERVATION SERVICE
Federal Funds
General and special funds:
Conservation operations
River basin surveys
investigations
302
and
BA
301
0
Watershed planning
301
BA
BA
11,052
160.039
0
177,258
0
Watershed and
operations
flood
See footnotes at end of table.
prevention
301
16,258
11,651
242,400
16.487
15,230
5,759
6,022
152,522
177,776
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
315
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF AGRICULTURE—Continued
SOIL CONSERVATION SERVICE—Continued
Federal Funds—Continued
General and special funds:—Continued
Great plains conservation program
BA
302
0
and
20,781
BA
21,185
0
31,130
31.033
"946
35,803
oro
30,679
8,023
462,514
471,624
515.095
614,272
442,047
476,057
BA
0
1,187
957
937
1,448
937
1,225
BA
0
174
262
275
275
275
275
Total, Miscellaneous
contributed funds.
BA
0
1.361
1,219
1,212
1,723
1,212
1,500
Total trust funds Soil
Conservation Service.
oro
Resource conservation
development
21.704
"369
21,313
21,639
1.361
1,219
1,212
1,723
1,212
1,500
181.662
199.623
^1,255
"6.906
217,167
^1,255
220.213
207.784
218,422
220.213
217,135
302
Total Federal funds Soil
Conservation Service.
Trust Funds
Miscellaneous contributed funds:
(Water resources)-. Permanent,
indefinite
301
13,444
302
II
(Conservation and land
management): Permanent,
indefinite
6,797
ANIMAL AND PLANT HEALTH INSPECTION
SERVICE
Federal Funds
General and special funds:
Animal and Plant Health Inspection
Service:
(Agricultural research and
BA
services)
352
Total, Animal and Plant Health
Inspection Service.
Animal quarantine station:
Permanent, indefinite
352
Total Federal funds Animal and
Plant Health Inspection
Service.
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
352
See footnotes at end of table.
OOO
(Consumer and occupational
health and safety)
554
140.861
144,904
OCD
190,966
322,523
335,870
217,135
.
...
327
521 ...
BA ..
0
BA
0
322,523
335,870
208.111
218,943
220,213
217,135
BA
0
1,174
1,250
1.166
1,099
2,286
2,286
THE BUDGET FOR FISCAL YEAR 1979
316
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT <OF AGRICULTURE—Continued
FEDERAL GRAIN INSPECTION SERVICE
Federal Funds
General and special funds:
Salaries and expenses
352
BA
8,522
0
3,041
22,708
11,000
^8,038
D
488
11,488
^8,038
22,708
Public enterprise funds:
Inspection and weighing services
352
Total Federal funds Federal
Grain Inspection Service.
BA
0
BA
0
19,829
9,374
BA
49,615
11,307
6,333
.
3,868 ...
19,526
23,394
22,708
22,708
AGRICULTURAL MARKETING SERVICE
Federal Funds
General and special funds:
Marketing services
352
49,231
40,950
2,145
D
J
- 5,665
0
50,829
"2,000
43,293
49,081
•'-5,635
^2,000
Payments to States and possessions
352
Perishable Agricultural Commodities
Act fund: Permanent, indefinite
BA
0
BA
0
1,600
271
1,600
1600
1,691
1,693
1,570
1,982
1,535
1,897
BA
0
52,906
52,793
48,265
48,875
45,101
45,343
BA
BA
0
31,459
32,629
130
130
..
352
Total Federal funds Agricultural
Marketing Service.
Trust
Funds
Miscellaneous trust funds
Permanent indefinite...
352
J
7,428
130
130
'6,348
Milk market orders assessment fund
0
- 2 085
BA
0
31.459
30,544
130
130
7,558
6,478
BA
103,493
271,475
0
BA
0
84,424
253,328
"14,000
266,139
83,747
41,921
364.600
301,222
206,100
281,100
•M5.300
BA
0
187,240
126,345
631.928
567,361
477,575
534,226
351
Total trust funds Agricultural
Marketing Service.
FOOD SAFETY AND QUALITY SERVICE
Federal Funds
General and special funds:
Salaries and expenses
554
Funds for strengthening markets,
income, and supply (section 32):
Permanent, indefinite
604
Total Federal funds Food Safety
and Quality Service.
See footnotes at end of table.
268,426
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF AGRICULTURE—Continued
FOOD SAFETY AND QUALITY SERVICE—Con.
Trust Funds
Expenses and refunds, inspection and
BA
grading of farm products:
0
Permanent, indefinite
352
15,879
11,348
51,686
51,686
54,284
54,284
64,951
°3,317
71,187
*72,223
5,779,200
FOOD AND NUTRITION SERVICE
General and special funds:
Food program administration
604
BA
0
Food stamp program
604
Special milk program
604
5,398,795
BA
159,000
155,000
142,000
'-112,000
0
157,034
155,000
139,900
•'-95,100
BA
1,788,032
1,488,344
BA
0
1,039,000
2,635,039
1,014,557
2,639,280
'1,281.535
J
- 105,400
1,411,575
2,713,112
•M05.400
Special supplemental food programs
(WIC)
604
BA
0
250,000
245,356
247,000
360,000
"555,000
525,800
Food donations program
604
BA
0
27,109
27,752
31,400
31,200
12,800
12,800
Elderly feeding program
604
BA
0
22,000
21,476
30,000
30,000
216
Total Federal funds Food and
Nutrition Service.
BA
0
8,791.310
8,485,452
8,652,950
8,941,667
9,036,933
9,010,974
FOREST SERVICE
Federal Funds
General and special funds:
Forest protection and utilization...302
BA
764,524
688,465
'204,000
D
25,882
^1,836
833,531
0
724,843
719,262
'183,600
"1,650
748,295
'20,400
^186
40,159
19,545
604
Appropriation, Permanent
Construction and land acquisition
302
5,506,169
0
71,148
5,618,769
F
-388
5,655,000
Child nutrition programs
BA
0
26,399
40,630
"463
64,389
Youth Conservation Corps
302
BA
0
60,000
48,058
60,000
71,613
60,000
56,000
Forest roads and trails
302
BA
12,952
175,833
\ 1,391
173,922
Contract authority
Liquidation of contract authority....
BA
-39,828
(208,104)
(78,781)
192,530
206,800
9,121
192,763
212,115
91,020
Forest roads
See footnotes at end of table.
260-000 O - 78 - 21
BA
5,748,498
0
302 BA
0
D
22,795
181,958
243,466
178,350
318
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS USTIN6 (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF AGRICULTURE—Continued
FOREST SERVICE-Continued
Federal Funds—Continued
General and special funds:—Continued
Assistance to States for tree
improvement
302
Other general appropriations
302
Acquisition of lands for national
forests, special acts
302
Acquisition of lands to complete
land exchanges
302
Rangeland improvements
302
Construction and operation
recreation facilities
of
303
Timber salvage sales
Permanent, indefinite
302
BA
1.385
0
0
BA
0
BA
0
BA
0
BA
0
1,622
-5
160
103
54
67
700
700
2.552
3,009
3.000
130
471
BA
BA
BA
1,387
°22
1,408
285
165
140
38
38
5.200
4,700
4.084
4,005
1.409
1,235
160
155
242
242
6,374
6,800
3.459
4,129
0
BA
0
BA
0
52.900
42,786
115.662
102,812
1.556
1,472
100
100
124.654
106,237
Forest Service permanent
appropriations: Permanent,
indefinite
852
ntal funds:
Working capital fund
302
BA
0
50.366
50,366
225.572
225,572
241.552
241,552
0
-9,377
231
-3,415
Consolidated working fund
0
1,011
4,729
8,036
BA
0
1.155.854
1,091,704
1,772,745
1,670,746
1.709.970
1,574,527
BA
0
131.247
70,426
94,500
75,000
105.002
78,174
BA
0
1,331
1,500
8,250
3,050
BA
0
131.247
71,757
96,000
83,250
105.002
81,224
BA
0
16.193,397
17,528,759
18.061.079
23,489,767
21.069.364
18,794,666
BA1
0 J
-9,121
-91,020
-227,343
BA1
0 J
-2
-113,002
-314,372
-333,527
-594,683
-445,178
-476,332
Rights of way
302
Forest Service permanent
appropriations: Permanent,
indefinite
302
Total Federal
Service.
302
funds
Forest
Trust Funds
Cooperative work: Permanent, indefinite
302
Highland scenic highway
401
Total trust funds Forest Service
2,529
SUMMARY
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
302
Proprietary
public-
receipts
from
the
..270
300
BA1
0 I
302
See footnotes at end of table.
BA1
0 J
319
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1979
estimate
1978
estimate
DEPARTMENT OF AGRICULTURE—Continued
SUMMARY—Continued
Federal funds:—Continued
350
450
BAl
0J
BAl
0J
550
BAl
600
oBAll
-10,951
-2,881
1,862
-47
-5,894
-25
-25
-69
-69
-319
-319
0I
902
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
302
352
Total trust funds
BAl
-49
BA
0
15,467,385
16,802,747
17,207,166
22,635,854
20,025,806
17,751,108
BA
0
182,115
117,097
151,492
139,197
171,641
147,066
BAl
0 J
-131,247
-94,500
-105,002
BAl
0 J
-50,868
-55,492
-66,639
-65,018
1,500
-10,795
-24,575
15,467,385
16,737,729
17,208,666
22,625,059
20,025,806
17,726,533
BA .
0
Total Department of Agriculture
-49
-68
BA
0
DEPARTMENT OF COMMERCE
GENERAL ADMINISTRATION
federal Funds
General and special funds:
Salaries and expenses
376
BA
22,208
20,194
White House conference on balanced
national growth and economic
development
376
BA
0
Special foreign currency program.376
BA
0
Participation in United
expositions
Intragovemmental funds:
States
376
0
Working capital fund
376
0
Consolidated working fund
376
0
Total Federal funds General
Administration.
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
376
See footnotes at end of table.
627
178
BA
0
123 ...
-1,294
22,208
19,828
BA
0
113
100
20,765
1,500
22,496
750
700
D
1,200
310 ...
23,172
23,149
50
500
1,280
-616
23,015
24,090
23,672
24,479
500
500
500
425
320
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF COMMERCE—Continued
BUREAU OF THE CENSUS
Federal Funds
General and special funds:
Salaries and expenses
376
BA
44.887
45.164
C
39
0
BA
47,703
47^85
50,436
Periodic censuses and programs..376
48.800
237.355
0
40.128
70.718
'2.530
°3.150
"7,000
64,424
'2,100
Intragovemmental funds:
Consolidated working fund
50.745
"V00
201,750
'430
w
'300
0
BA
0
-4,436
Total Federal funds Bureau of
the Census.
93.687
83,395
131,012
120,609
288.100
252,916
Trust Funds
Special studies, services, and projects:
Permanent, indefinite
376
BA
0
5.827
5,846
6.740
6,740
4.876
4,876
ECONOMIC AND STATISTICAL ANALYSIS
Federal Funds
General and special funds:
BA
Salaries and expenses
376
12.800
13,306
"804
13,840
16,875
376
...
0
12,639
Total Federal funds Economic
and Statistical Analysis.
0
BA
0
12,800
12,221
14.110
13,840
16,875
16,625
Trust Funds
Special studies, services, and projects:
Permanent, indefinite
376
BA
0
104
83
150
150
150
150
390,100
382,500
'117,000
318,960
'21,325
"627.425
Intragovemmental funds:
Consolidated working fund
376
-418
16,625
...
ECONOMIC DEVELOPMENT ASSISTANCE
Economic Development Administration
reaerai runas
General and special funds:
Economic development assistance
BA
programs
452
0
Local public works program
452
BA
297,091
6,000.000
380,623
'18,060
"10.607
fl
3,788
0
585,264
452
BA
0
Administration of economic
development assistance programs
452
BA
175.000
14,903
27.525
0
27,328
Drought assistance program
See footnotes at end of table.
2,300,000
B
3,545
150,000
26.717
'250
D
1,420
27,858
'225
2,010,788
B
243
28.827
28,584
'25
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
321
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF COMMERCE—Continued
ECONOMIC DEVELOPMENT ASSISTANCE—Con.
Economic Development Administration—Con.
Federal
Funds—Continued
General and special funds:—Continued
Financial and technical assistance
376
0
1,290
1,645
504
0
98,018
13,000
revolving
452
0
-19,652
-21,500
-27,000
BA
0
6,592,625
1,004,242
531,675
2,815,058
666,859
2,412,323
BA
63,500
64,598
Dona
63,876
Job opportunities program
Public enterprise funds:
Economic development
fund
Total Federal funds Economic
Development Administration.
1,000
Regional Action Planning Commissions
Federal Funds
General and special funds:
Regional development programs...452
0
59,967
65,367
67,316
Trust Funds
Regional action planning commissions-.
Permanent, indefinite
452
BA
0
43,047
46,973
41,402
42,960
41,963
41,252
Total Federal funds Economic
Development Assistance.
BA
0
6,656,125
1,064,209
596,482
2,880,425
730,735
2,479,639
Total trust funds Economic
Development Assistance.
BA
0
43,047
46,973
41,402
42,960
41,963
41,252
BA
58,555
69,733
0
63,085
63,461
4
3,360
"3,275
65,611
4
3,285
PROMOTION OF INDUSTRY AND COMMERCE
Industry and Trade Administration
Federal Funds
General and special funds:
Operations and administration
376
Trust Funds
Miscellaneous trust funds-. Permanent,
indefinite
376
69,634
^75
BA
0
5,416
4,797
5,300
5,624
7,600
7,600
BA
50,350
60,559
0
54,258
48,997
D
425
60,278
BA
14,470
*14,543
0
14.373
14,140
D
224
14,616
Minority Business Enterprise
Federal
Funds
General and special funds:
Minority business development
376
55,195
United States Travel Service
Federal
Funds
General and special funds:
Salaries and expenses
See footnotes at end of table.
376
14,651
322
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dolIan)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF COMMERCE—Continued
PROMOTION OF INDUSTRY AND COMMERCE
—Continued
United States Travel Service—Continued
Federal Funds—Continued
Intragovemmental funds:
Consolidated working fund
376
0
Total Federal funds United
States Travel Service.
Total Federal funds Promotion
of Industry and Commerce.
Total trust funds Promotion of
Industry and Commerce.
BA
0
BA
0
BA
0
-9 ...
14,470
14,364
123,375
131,707
5.416
4,797
14,364
14,616
133.882
143,790
5,300
5,624
14,543
14,651
144.835
139,555
7,600
7,600
"659.567
1.620
509,976
970
1,131
37,695
605.521
c
1.307
\ 7.928
*505
1.600
612,315
15.500
5,836
50.780
22,076
7,990
8,516
31,152
12.984
10,000
43,099
15.000
10,000
-245
420
61
-14
115,000
3
85
62
32
115.000
3 900
37
61
4.036
14,988
-50
-1,366 ...
746.211
540,556
821,269
663,275
781.482
752,460
11.297
11,297
11,297
11,297
SCIENCE AND TECHNOLOGY
National Oceanic and Atmospheric
Federal Funds
General and special funds:
Operations, research, and facilities
306
Current, indefinite
BA
D
BA
0
Construction
306
BA
0
Coastal zone management
302
BA
Promote and develop fishery
products and research pertaining
to American fisheries: Permanent,
indefinite
376
Public enterprise funds:
BA
0
0
Fisheries loan fund
376
0
Offshore shrimp fisheries fund
376
0
Fishermen's guaranty fund
376
Coastal energy impact fund
452
BA
0
BA
0
Federal ship financing fund, fishing
vessels
376
Intragovemmental funds:
Consolidated working fund
306
Total Federal funds National
Oceanic and Atmospheric
Administration.
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
306
See footnotes at end of table.
582,875
0
0
BA
0
BA
0
10,567
10,332
1.600
654,277
44.000
30.000
"57.279
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
323
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF COMMERCE—Continued
SCIENCE AND TECHNOLOGY—Continued
National Fire Prevention and Control
Administration
Federal Funds
General and special funds:
Operations, research, and
BA
451
administration
0
12.339
13.849
*17,826
12,265
17,526
17,563
451
BA
0
2.850
2,600
Total Federal funds National
Fire Prevention and Control
Administration.
BA
0
15.189
14,865
BA
89,400
Facilities
.. .
Patent and Trademark Office
Federal Funds
General and special funds:
Salaries and expenses
376
250 ....
14.198
17,776
17,826
17,563
89,461
c
106
4,754
94,100
94,753
D
0
Science and Technical Research
Federal Funds
General and special funds:
Scientific and technical research and BA
services
376
al funds:
ntragoven
Working capital fund..
Consolidated working fund
..376
376
87,409
68,684
M.084
C
367
°3,316
67,901
-4,000
69,450
0
70,656
BA
2.085
0
2,808
2,667
^485
1,800
^364
94,280
*91,764
83,921
^84
3,756
4,379
0
-2,035
Total Federal funds Science
and Technical Research.
BA
0
71,535
71,429
76,603
71,065
95,520
88,505
Trust Funds
Information products and services:
Permanent, indefinite
376
BA
0
17,838
15,895
18,400
18,400
19,787
19,787
7,158
D
373
7,454
11.981
National Telecommunications and
Information Administration
Federal Funds
General and special funds:
Salaries and expenses
376 BA
....
9,075
Total Federal funds Science
and Technology.
BA
0
922,335
714,259
1,013,922
853,670
1,001,562
961,883
Total trust funds Science and
Technology.
BA
0
28,405
26,227
29,697
29,697
31,084
31,084
See footnotes at end of table.
324
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
DEPARTMENT OF COMMERCE—Continued
OCEAN SHIPPING
Maritime Administration
Federal Funds
General and special funds:
Ship construction
403
Operating-differential subsidies: 403
Contract authority, Permanent,
indefinite.
Liquidation of contract authority...
BA
0
219,425
135.000
185,000
"157,000
168,000
BA
320,022
309.145
305,504
(388,000)
343,876
(352,000)
322,500
(262,800)
336,526
0
Research and development
Operations and training
Public enterprise funds:
Federal ship financing fund
403
403
403
Vessel operations revolving fund..403
War risk insurance revolving fund
403
Intragovernmental funds:
Consolidated working fund
403
Total Federal funds
Administration.
Maritime
Trust Funds
Special studies, services and projects:
Permanent, indefinite
403
Total Federal
Shipping.
Total trust
Shipping.
funds
funds
Ocean
Ocean
BA
0
18,500
17,164
18,325
22,160
"17,500
17,500
BA
49,700
"57.328
0
48,555
53.994
c
202
°1,848
55,064
0
0
-30,931
-41,000
-47,300
243
-364
0
-507
-459
57,395
-330
0
-4,328
3,889
BA
0
388.222
593,497
518,514
546,790
537,332
531,791
BA
0
160
13
420
522
420
420
BA
0
388.222
593,497
518,514
546,790
537.332
531,791
BA
0
160
13
420
522
420
420
8.218.752
2,619,116
2,430.937
4,583,214
2,743,111
4,406,888
-1,703
-1,702
...
SUMMARY
ooo
Federal f u n d s :
(As shown in detail above)..
-1,861
370
BA1
0 J
-4,306
-3,984
-2,518
400
BA1
0 J
-6,551
-49,770
-5,831
450
BA1
0 J
-137
-182
-182
-1,695
-5,875
-11,128
8,204,202
2,604,566
1
Total Federal funds
ooo
1
902
OOO I
ooo
Deductions for offsetting recei PtS:
Proprietary receipts froni the
public
300
See footnotes at end of table.
2,369.423
4,521,700
2,721,750
4,385,527
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
325
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF COMMERCE—Continued
SUMMARY—Continued
Trust funds:
(As shown in detail above)
BA
0
83,072
84,039
84,209
86,193
BA1
0 I
-1,044
-5,872
the
306
BA1
0 J
-10,566
-11,297
-11,297
376
BA1
0 J
-28,155
-19,228
-22,379
403
BA1
0 J
-160
-420
-420
452
BA1
0 J
-1,405
-1,572
-1,706
BA
0
41,742
42,709
45,820
47,804
46,727
45,941
-5,520
-6,000
-41,642
-39,830
-40,257
8,204,302
2,605,633
2,369,893
4,524,154
2,722,220
4,385,211
Deductions for offsetting receipts-.
Intrafund transactions
376
Proprietary
public
receipts
from
Total trust funds
interfund transactions
376
BA1
0 J
452
BA1
0 J
Total Department of Commerce.
BA
0
86,593
85,807
-4,064
DEPARTMENT OF DEFENSE—MILITARY
MILITARY PERSONNEL
Federal Funds
General and special funds:
Military personnel, Army
Military personnel, Navy
051
051
Military personnel, Marine Corps..051
Military personnel, Air Force
051
BA
8,841.053
0
8,695,556
BA
6,141,630
0
6,020,797
BA
1,909,462
0
1,871,089
BA
7,335,652
0
7,269,499
Reserve personnel, Army
051
BA
0
479,769
469,808
Reserve personnel, Navy
051
BA
220,010
8,741,800
^13,300
'401,633
9,011,700
* 13,300
6,169,662
'10,900
*284,550
6,358,100
^ 10,900
9.180,000
9,042,000
6,463,000
6,400,000
1,918,400
1
2,836
'101,964
1,950,164
^2,836
2,016,500
7,199,900
^5,300
'395,890
7,511,700
^5,300
7,576,000
532,600
512,000
532,600
527,000
206,075
\ 0,625
179,000
211,000
180,000
1,977,000
7,500,000
E
0
See footnotes at end of table.
215,237
326
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF DEFENSE—MILITARY—Continued
MILITARY PERSONNEL—Continued
Federal Funds—Continued
General and special funds:—Continued
Reserve personnel, Marine Corps..051
BA
0
Reserve personnel, Air Force
78.173
74,911
78.700
*2.800
80,000
81,200
183,600
81,000
051
BA
163,807
155,534
171.400
*7.400
165,000
National Guard personnel, Army ...051
BA
0
721.915
722,195
782.500
762,000
747.100
736,000
National Guard personnel, Air Force
051
BA
226,500
252.200
Total Federal
Personnel.
funds
Military
RETIRED MILITARY PERSONNEL
Federal Funds
General and special funds:
Retired pay, Defense
051
OPERATION AND MAINTENANCE
Federal Funds
General and special funds:
Operation and maintenance, Army
051
Operation and maintenance, Navy
051
Operation and maintenance, Marine
Corp^
051
Operation
Force
and maintenance,
See footnotes at end of table.
Air
051
174,000
220,311
231.800
\ 1,700
238,000
BA
0
26,117,971
25,714,937
27,281.735
26,832,000
27.211.200
26,866,000
BA
8,238.100
10.148.938
0
8,216,429
9.010,000
'229.600
8,982,000
'229,000
BA
8,115.702
9.233.400
0
7,590,150
8,225,774
'180,800
c
94,600
"180,500
8,086,500
'177,500
BA
9,689.813
11.843.000
0
9,020,800
10,779,963
'54.700
c
\ 16.600
"140.000
10,378,400
'53,600
619.128
'16.100
c
8.100
"7,800
607,200
'15,800
744.100
8,451,479
'47,700
c
58,700
"118,900
8,532,300
'46,700
9,415.200
BA
592.925
0
562,213
BA
8.273,379
0
8,033,634
E
249,000
10,121,400
'600
8,971,700
'3,300
11,509,900
'1,100
730,700
'300
9,279,000
'1,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
327
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF DEFENSE—MILITARY—Continued
OPERATION AND MAINTENANCE—Continued
Federal Funds—Continued
General and special funds:—Continued
Operation and maintenance, Defense
agencies
051
Operation and
Reserve
maintenance,
Army
051
Operation and
Reserve
maintenance,
Navy
051
BA
2,807,253
0
2,799,667
BA
364,689
0
357,368
290,600
BA
BA
298,827
15,135
0
BA
13,140
355,525
0
BA
352,544
724,066
0
BA
688,916
792,000
0
BA
0
BA
0
BA
786,894
300
276
82,500
80,952
2.500
674
1.286
0
Operation and maintenance, Marine
Corps Reserve
051
Operation and
Force Reserve
maintenance,
Operation and maintenance,
National Guard
Operation and maintenance,
National Guard
Air
051
Army
051
Air
051
National Board for the Promotion of
Rifle Practice, Army
051
Claims, Defense
051
Contingencies, Defense
051
Court of Military Appeals, Defense
051
0
BA
ooo
0
Total Federal funds Operation
and Maintenance.
2.809.790
^7,800
'10,600
D
118,400
^3,400
2,838,100
^7,600
^3,300
379,194
c
3,300
"10,000
382,000
316,290
c
1,300
D
1,700
314,000
16,528
3,094,000
16,000
374,349
c
4,500
"6,000
376,000
739,546
c
\ 0,500
D
\ 8,300
747,000
825,207
'9,900
"14,000
831,000
365
350
82,500
77,000
2,500
1,850
1,735
19,000
395,300
2,979,700
^200
420,800
410,000
379,300
359,000
20,000
388,000
795,700
785,000
938,600
922,000
352
360
89,500
88,000
5,000
3,690
1,948
1,387
32,107,673
30,587,442
1,800
34,868,748
33,494,000
1,950
37.376,200
36,454,000
533,900
300,684
473.000
374,307
657,100
358,000
536,883
424,000
*1,017,800
527,000
*773,200
551,000
PROCUREMENT
General and special funds:
Aircraft procurement, Army
051
BA
0
Missile procurement, Army
051
ooo
Federal Funds
See footnotes at end of table.
™ E BUDGET FOR FISCAL YEAR 1979
328
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF DEFENSE—MILITARY—Continued
PROCUREMENT—Continued
Federal Funds—Continued
General and special funds:—Continued
Procurement of weapons and tracked
combat vehicles, Army
051
BA
0
1.089,800
581,867
1,421,200
932,000
"1,636.600
1,021,000
Procurement of ammunition, Army
051
BA
0
897,900
646,942
1.171.300
873,000
"1.420,100
1,008,000
Other procurement, Army
051
BA
0
1.383,000
693,209
1,400,325
964,000
1,789,200
1,201,000
Aircraft procurement, Navy
051
BA
2.843.500
"4.078.800
0
2,656,599
3.479.000
"73,900
2,664,000
"11,000
2.181.900
*58.700
1,491,100
^5,900
"2.047.500
Weapons procurement, Navy
BA
2.022,200
0
1,004,557
Shipbuilding and conversion, Navy
051
BA
0
5.742.400
2,840,524
5.760.500
3,000,000
"4.712.400
3,256,000
Other procurement, Navy
051
BA
0
2.179,800
1,624,848
2.176.410
1,844,000
2.708.600
2,100,000
Procurement, Marine Corps
051
BA
0
326.700
250,218
440.400
264,000
"371.900
333,000
Aircraft procurement, Air Force
051
BA
6,067.700
"6.897.700
0
3,586,184
6,207.100
"'-429,000
4,638,000
"-43,000
BA
1.827.700
"1.676.800
0
1,501,478
1.695.700
"62.600
1,676,400
"10,600
051
BA
0
2.289,350
1,834,232
2.323,445
2,161,000
2.516,100
2,321,000
Procurement, Defense agencies....051
BA
0
244,700
149,925
327,826
213,000
280,900
288,000
Procurement of aircraft and missiles,
Navy
051
0
107,600
55,000
30,000
Procurement of equipment
missiles, Army
0
25,057
10,000
10,000
BA
0
27,921,650
18,178,231
29,545,289
21,552,000
31,927,600
24,208,000
RESEARCH, DEVELOPMENT. TEST. AND
EVALUATION
Federal Funds
General and special funds:
Research, development, test, and
BA
evaluation, Army
051
0
2.280.816
2,069,189
2.408.327
2,304,000
"2.721.400
2,575,000
3.722.552
3,480,513
3.991.791
3,800,000
"4.490.500
4,184,000
Missile procurement, Air Force
Other procurement, Air Force
051
3,081,000
"31,000
051
and
051
Total Federal funds
Procurement.
Research, development, test, and
evaluation, Navy
051
See footnotes at end of table.
BA
0
1,726,500
'23,500
5,067,000
"-172,000
1,774,000
"31,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
329
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF DEFENSE—MILITARY—Continued
RESEARCH. DEVELOPMENT. TEST. AND
EVALUATION—Continued
Federal Funds—Continued
General and special funds:—Continued
Research, development, test, and
evaluation, Air Force
051
Research, development, test, and
evaluation, Defense agencies...051
BA
"4,339.100
30,000
16,531
10,439,178
9,795,166
3,917,766
^240,500
3,778,000
•H49,000
745.278
H
9,000
659,000
"-5,000
25.000
19,000
11.337,662
10,714,000
597,664
654,861
570,265
655,356
808,079
385,106
41,396
23,547
61,128
59,582
37,200
45,207
53,804
527,769
669,000
463,056
590,000
406.986
449,000
58.009
24,000
49.400
56,000
43.300
40,000
50.500
"881,900
626,000
"820,900
547,000
"639,100
573,000
"176,300
52,000
"49.700
52,000
"41,500
42,000
"34,800
3,754,530
3,618,473
BA
651,280
610,460
Director of
Defense
test
and
evaluation,
051
BA
0
Total Federal funds Research,
Development, Test, and
Evaluation.
BA
0
4,164,000
^83,000
"889,400
825,000
^3,000
"27,600
27,000
12,468,000
11,861,000
MILITARY CONSTRUCTION
Federal Funds
General and special funds:
Military construction, Army
051
BA
0
Military construction, Navy
051
BA
0
Military construction, Air Force
051
BA
0
Military construction,
agencies
051
BA
0
Military construction, Army National
Guard
051
BA
0
Military construction,
Guard
National
051
BA
0
Military construction, Army Reserve
051
Permanent, indefinite
BA
Defense
Air
BA
0
662 .
49,000
49,000
"20,400
21.700
27,000
22,000
"12,500
11,200
13,000
15,000
1,632,582
2,677,100
1,976,000
1,919,000
Air
Force
051
BA
0
Total Federal funds
Construction.
Military
BA
0
40,331
23,600
36,572
10,773
13,243
2,203,909
1,913,805
051
BA
1,257,722
1,344,300
^1,700
C
6,775
D
1,178
"1,570.900
1,356,154
1,449,300
^1,700
1,429,000
Military construction, Naval Reserve
051
BA
0
Military construction,
Reserve
FAMILY HOUSING
Federal Funds
General and special funds:
Family housing, Defense
See footnotes at end of table.
330
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1979
estimate
1978
estimate
DEPARTMENT OF DEFENSE—MILITARY—Continued
FAMILY HOUSING—Continued
Federal Funds—Continued
Public enterprise funds:
Homeowners assistance fund,
Defense
051
Total Federal
Housing.
funds
Family
CIVIL DEFENSE
Federal Funds
General and special funds:
Operation and maintenance, Defense
Civil Preparedness Agency
051
Research, shelter
marking
survey,
and
051
BA
0
BA
0
1,712
1,257,722
1,357,866
BA
67.826
BA
69,130
19,628
0
Total Federal
Defense.
funds
Civil
BA
0
SPECIAL FOREIGN CURRENCY PROGRAM
Federal Funds
General and special funds:
Special foreign currency program.051
BA
23,597
87.454
92,727
1,500
4,000
1,355.453
1,455,000
"5,000
7,000
1,575.900
1,436,000
69,300
"1,300
"77,000
71,000
75,000
"19.500
20,700
"300
27,000
91.600
98,000
23,000
96.500
98,000
3.665
2,856
2.480
2,600
"14.362
2,800
-522
-25
240
80
990
REVOLVING AND MANAGEMENT FUNDS
Federal Funds
Public enterprise funds:
Defense production guarantees ....051
Laundry service, Naval Academy ..051
Intragovemmental funds:
0
o
BA
0
BA
0
BA
0
BA
0
BA
0
0
0
0
0
Army stock fund
051
Navy stock fund
051
Marine Corps stock fund
051
Air Force stock fund
051
Defense stock fund
051
Army industrial fund
051
Navy industrial fund
051
Marine Corps industrial fund
051
Air Force industrial fund
051
Defense industrial fund
051
o
o
Army management fund
051
0
Navy management fund
051
See footnotes at end of table.
100,000
-11,001
32.000
51,767
6.200
6,920
58.800
18,536
22.800
-254,213
39,979
32,265
2,273
146,586
1,135
-13 641
5,036
100,000
142,600
30.000
-6,600
1.900 ...
27,600
34,600
15,000
4.300
112,200
-41,710
54,190
402
-22,269
-8 500
5,407
74.000
170,300
79,700
200
26.800
37,800
-55,500
22,822
-19,857
-646
-22,658
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF DEFENSE—MILITARY—Continued
REVOLVING AND MANAGEMENT FUNDS—Con.
Federal Funds—Continued
Intragovemmental funds:—Continued
Air Force management fund
051
Total Federal funds Revolving
and Management Funds.
0
BA
0
388
219.800
25,483
1,260
170,800
279,900
849
100,800
214,000
ALLOWANCES
Federal Funds
General and special funds:
Civilian and military pay raises...051
Retired pay legislation
051
Other legislation
051
Total Federal funds Allowances.
BA
BA
0
0
BA
0
BA
0
BA
'2,371,100
J
-135,900
'2,353,200
-'-134,900
-73,300
-^OO
'46,400
'46,400
2,304,900
0
TRUST FUNDS
Miscellaneous trust funds-. Permanent,
indefinite
051
Miscellaneous trust revolving funds .051
Total trust funds
BA
0
0
BA
Deductions for offsetting receipts:
Proprietary receipts from the
public
051
Total Federal funds
10,611
8,631
-60,855
9,295
9,226
4,574
9,892
9,541
9,459
10,611
9^295
9^892
-52,224
13,800
19,000
BA 108,597,122
0
95,884,942
115,525,949
105,557,500
125,901,500
115,525,800
BA1 -173,471
0 J
BA 108,423,651
-262,700
-335,700
115,263,249
125,565,800
0
105,294,800
115,190,100
0
SUMMARY
Federal funds*
(As shown in detail above)
2,288,000
95,711,471
Trust funds:
(As shown in detail above)
BA
10,611
9,295
9,892
-52,224
13,800
19,000
BA1
-9,092
0 I
BA 108,425,170
0
95,650,155
-8,600
-9,100
115,263,944
105,300,000
125,566,592
115,200,000
0
Interfund transactions
051
Total Department of
Defense—Military.
DEPARTMENT OF DEFENSE—CIVIL
CEMETERIAL EXPENSES, ARMY
Federal Funds
General and special funds:
Salaries and expenses
See footnotes at end of table.
705
BA
6,161
5,000
5,200
0
4,815
6,300
6,500
™E
332
BUDGET
FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
DEPARTMENT OF DEFENSE—CIVIL—Continued
CORPS OF ENGINEERS—CIVIL
Federal Funds
General and special funds:
General investigations
301
BA
0
Construction, general
301
71,920
69,818
BA
1,430,195
0
1,320,708
Operation and maintenance, general
301
BA
Flood control and
emergencies
301
BA
0
301
BA
49.050
coastal
General expenses
103,646
R
3,300
90,300
1,523,820
F
- 30,000
1,390,000
108,100
110,000
*1,274,400
1,362,000
750.500
638,826
745,370
c
23,500
704,200
22,140
40,857
18,000
-25,000
20,000
19,800
66,500
66,000
667,600
741,900
0
49,991
56,800
3,200
59,400
Flood control, Mississippi River and
tributaries
301
BA
0
231,497
220,072
253,081
225,000
"204,000
212,000
Special recreation use fees
BA
0
2.000
1,801
6,000
5,200
3,300
3,500
BA
0
1.370
2,742
1,000
1,428
1,025
1,000
(Other general purpose fiscal
assistance): Permanent,
indefinite
852
BA
0
4,656
6,470
6,126
5,175
5,000
Total, Permanent appropriations
BA
6,026
2,742
7,470
7,554
6,200
6,000
303
Permanent appropriations:
(Water resources): Permanent,
indefinite
301
0
Public enterprise funds:
Alaska hydroelectric power
development fund
Introgovemmental funds:
Revolving fund
271
301
BA
0
Consolidated working fund
301
0
BA
Trust Funds
Corps of Engineers—Civil: Permanent,
indefinite
301
Summery
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
271
Total Federal funds
See footnotes at end of table.
G
"5.450
6,600
-21,842
-46,619
21.525
15,254
56,996
22,000
16,866
3,670
BA
0
31,463
33,775
33,500
33,500
35,000
35,000
BA
0
2,487,028
2,276,354
2,741,162
2,528,904
2.455,000
2,541,736
BAl
0 J
-11
-13
-14
300
BA1
0 J
-13,940
-16,500
-17,800
902
BA1
0 J
-1,792
-1,987
-2,186
2,471.285
2,260,611
2.722,662
2,510,404
2,435,000
2,521,736
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
333
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1978
estimate
1977
actual
D E P A R T M E N T <DF
1979
estimate
DEFENSE—CIVIL—Continued
CORPS OF ENGINEERS—CIVIL—Continued
Summary—Continued
Trust funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the
BAl
public
301 0 J
Total trust funds
0
Total Corps of Engineers—Civil
BA
0
31.463
33,775
33.500
33,500
35.000
35,000
-31,463
-33,500
-35,000
2.722.662
2,510,404
2,435,000
2,521,736
2,312
.
2.471.285
2,262,923
RYUKYU ISLANDS. ARMY
Federal Funds
General and special funds:
Administration
806
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
800
Total Ryukyu Islands, Army
SOLDIERS' AND AIRMEN'S HOME
Trust Funds
Operation and maintenance
705
Payment of
indefinite
claims:
Permanent,
705
Soldiers' and Airmen's Home revolving
fund
705
Summary
Federal funds:
Deductions for offsetting receipts:
Proprietary receipts from the
public
705
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Proprietary receipts from the
public
705
Total trust funds
Total Soldiers' and Airmen's
Home.
See footnotes at end of table.
260-000 O - 78 - 22
3
0
BAl
0 J
-409
-410
-410
BA
0
-409
-409
-410
-407
-410
-410
BA
16.099
16.356
c
80
16.939
0
15,801
16,882
16,927
5
5
5
5
BA
0
0
2
BAl
0 J
-1
BA
0
-1
BA
0
16.099
15,803
16.887
16,887
16.944
16,932
BAl
0J
BA "
0
-1,404
-1,839
-2,022
14.695
14,399
15.048
15,048
BA
0
14.694
14,398
15.048
15,048
14.922
14,910
14.922
14,910
.
THE BUDGET FOR FISCAL YEAR 1979
334
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF DEFENSE—CIVIL—Continued
THE PANAMA CANAL
CANAL ZONE GOVERNMENT
Federal Funds
General and special funds:
Operating expenses
806
Capital outlay
806
Canal
Total Federal funds,
Zone Government.
74,621
61,431
70.500
°567
71,067
3,150
4,063
2,130
4,000
2.285
2,625
69,050
65,494
73,197
75,067
76,906
77,246
BA
65.900
0
BA
0
BA
0
74,621
PANAMA CANAL COMPANY
Federal Funds
Public enterprise funds:
Corporation: Panama Canal Company
403
Limitation on general and
administrative expenses.
from
556
1,625
(26,231)
D
(625)
(27,580)
69,050
64,508
73.197
75,623
76,906
78,871
BAl
0 J
-17,771
-21,990
-23,854
the
800
BAl
0 J
-48,427
-48,963
-50,354
902
BAl
0 J
BA
0
Deductions for offsetting receipts-.
Intrafund transactions
806
receipts
-986
(25,285)
Summary
Federal funds:
(As shown in detail above)
Proprietary
public
0
Total The Panama Canal
-48
-70
-70
BA
0
2.804
-1,738
IMA
4,600
2,628
4,593
BA
0
668
674
847
857
898
898
BA
0
668
674
847
857
898
898
S68
-847
-898
MISCELLANEOUS ACCOUNTS
Federal Funds
General and special funds:
Wildlife conservation, etc., military
reservations: Permanent, indefinite
303
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
300
Total Miscellaneous Accounts....
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Intrafund transactions
806
See footnotes at end of table.
BAl
0 I
0
BA
0
BAl
0 J
6
10 ..
2.562,907
2,346,351
2,820,206
2,611,687
2.538,004
2,628,005
-17,771
-21,990
-23,854
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
335
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF DEFENSE—CIVIL—Continued
SUMMARY—Continued
Federal funds:—Continued
Proprietary receipts from the
public
271
BA1
0 J
-11
-13
-14
300
BA1
-14,608
-17,347
-18,698
705
0 I
BA\
-I
0 J
800
BA1
0 J
-48,836
-49,373
-50,764
902
BA1
0 J
-1,840
-2,057
-2,256
BA
0
2,479,840
2,263,284
2,729.426
2,520,907
2.442,418
2,532,419
BA
0
47,562
49,578
50,387
50,387
51,944
51,932
BA1
0 J
-31,463
-33,500
-35,000
BA1
0 J
-1,404
-1,839
-2,022
BA
14,695
16,711
15.048
15,048
14,922
14,910
2,494,535
2,279,995
2,744,474
2,535,955
2,457,340
2,547,329
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
301
705
Total trust funds
0
Total Department
Defense—Civil.
of
BA
0
DEPARTMENT OF ENERGY
DEPARTMENTAL OPERATIONS
Federal Funds
General and special funds:
Atomic energy defense activities..053
General science and research
251
Energy:
(Energy supply)
271
BA
0
BA
0
2,088,541
1,935,780
351.429
323,604
2,512.396
2,307,765
397.093
362,762
BA
3.475.101
3.489,313
F
- 1,847
2.829.083
2,535,833
426.300
414,800
3,431,266
J
- 163,000
0
2,511,759
"84,917
3,037,967
"50,100
(Energy conservation)
272
(Emergency energy preparedness)
274
BA
242,081
0
142,624
BA
0
See footnotes at end of table.
78,316
1,218
456,725
"235,127
397,741
"53,500
2,797,284
'415.016
"383,173
2,028,754
3,234,130
•'-163,000
"34,817
1,009,563
720,609
"181,627
4,255,360
2,486,409
'415,016
"383,173
336
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF ENERGY—Continued
DEPARTMENTAL OPERATIONS—Continued
Federal Funds—Continued
General and special funds:—Continued
Energy:—Continued
(Energy information, policy, and
regulation)
276
Total Energy
Special foreign currency program.271
Geothermal
fund
resources development
271
Payments to states under Federal
Power Act: Permanent, indefinite
BA
462,248
508,187
0
433,089
^8,150
517,862
^6,100
617,409
J
3,300
^2,050
BA
0
BA
0
4,257,746
3,088,690
8,376,045
6,092,024
9,208,174
7,915,540
502
1,500
2,700
2,000
2,500
BA
0
BA
0
30,000
15,000
6,600
6,000
85
85
85
85
BA
0
6,727,828
5,348,895
11,302,119
8,771,936
12,465,642
10,874,758
BA
0
14,218
13,083
5,539
5,539
2,500
2,500
BA
1,890
2,095
2,614
319
112
669,985
7
5,000
852
Total Federal funds
Departmental Operations.
Trust
Funds
Advances for cooperative
Permanent, indefinite
work:
271
POWER MARKETING ADMINISTRATIONS
Federal Funds
General and special funds:
Operation and maintenance, Alaska
Power Administration
271
G
68
0
1,793
2,163
2,582
0
-8,473
51,500
39,800
1,143
G54
1,195
1,212
12,505
C
272
13,284
19,909
87,799
C
1,438
89,237
101,252
Public enterprise funds:
Bonneville Power Administration fund
271
General and special funds:
Operation and maintenance,
Southeastern Power Administration
BA
1,076
271
0
BA
28,909
0
BA
91,004
0
88,940
Operation and maintenance,
Southwestern Power
Administration
271
Construction, rehabilitation,
operation and maintenance,
Western Area Power
Administration
271
Emergency fund, Western Area Power
Administration
271
936
18,703
1,210
16,909
101,252
200
200
200
11,098
3,798
2,286
9,273
2,213
786
134,177
111,172
109,187
159,792
127,473
162,739
BA
0
200
BA
0
BA
0
Public enterprise funds:
Colorado river basins power
marketing fund, Western Area
Power Administration
271
Total Federal funds Power
Marketing Administrations.
See footnotes at end of table.
G
15
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
337
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF ENERGY—Continued
SUMMARY
Federal funds:
(As shown in detail above)
BA
0
6,862,005
5,460,067
11,411.306
8,931,728
12,593,115
11,037,497
BA1
0 J
-22,993
-26,034
-94,935
271
BA1
0 I
-218,567
-753,611
-856,033
300
BA1
0 I
-5
902
BA1
0 J
-1
6.620,439
5,218,501
10.631,661
8,152,083
11,642,147
10,086,529
14.218
13,083
5,539
5,539
2.500
2,500
BA1
0 J
-574
-270
-270
BA1
-13,644
-5,269
-2,230
10.631.661
8,152,083
11.642.147
10,086,529
Deductions for offsetting receipts:
Proprietary receipts from the
public
270
Total Federal funds
BA
0
Trust funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the
public
271
301
0 J
Total trust funds
0
Total Department of Energy
BA
0
-1,135
6.620.439
5,217,366
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
PUBLIC HEALTH SERVICE
Food and Drug Administration
Federal Funds
General and special funds:
Salaries and expenses
554
Buildings and facilities
554
BA
250,019
241,517
276.220
C
248
"11,394
*848
281,334
0
294,304
BA
0
3,125
4,287
6,665
1,730
11,984
4,799
0
-789
292,964
Public enterprise funds:
Revolving fund for certification and
other services
554
Total Federal funds Food and
Drug Administration.
BA
0
253,144
245,015
295,375
283,064
306,288
297,763
BA
1.090,672
*1,721.866
0
1,028,970
1.204.691
C
1.172
D
6,267
*2.509
1,124,941
Health Services Administration
Federal Funds
General and special funds:
Health services
See footnotes at end of table.
551
1,225,312
THE BUDGET FOR FISCAL YEAR 1979
338
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
Health Services Administration—Continued
Federal Funds—Continued
General and special funds:—Continued
Indian health services
551
BA
345.892
428,891
'2,888
C
1,124
"7,202
*2,552
416,908
^2,660
71,257
114,800
^-2,690
472,852
1,599,727
1.728,553
1,424,299
1,656,619
2,264,673
1,787,219
156.394
c
1.028
°3.687
E
433
178,142
55,177
C
62
186.816
325,538
Indian health facilities
551
Emergency health
054
Total Federal funds Health
Services Administration.
BA
0
0
BA
0
163,163
69,783
462,956
^228
69,955
95,587
^3,136
8
Center for Disease Control
Federal
Funds
General and special funds:
Preventive health services:
(Health care services)
551
BA
130.004
(Health research)
552
0
BA
208,082
49.769
0
BA
0
BA
0
36,565
179.773
244,647
179,773
244,647
50,480
217,807
228,622
217,807
228,622
54,923
243,910
235,184
243,910
235,184
BA
781,515
"843,991
0
BA
0
BA
0
774,838
33,485
23,720
815,000
798,558
832,260
r
438
D
4,735
'663
798,524
34,876
34,683
872,972
833,207
Total, Preventive
services.
health
Total Federal funds Center for
Disease Control.
180,261
57.094
National Institutes of Health
Federal Funds
General and special funds:
National Cancer Institute:
(Health research)
552
(Education and training of health
care work force)
553
Total, National Cancer Institute.
See footnotes at end of table.
827,377
"34,811
35,029
878,802
862,406
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, E D U C A T I O N , A N D WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
national Institutes of Health—Continued
Federal Funds—Continued
General and special funds: Continued
National Heart, Lung and Blood
Institute:
(Health research)
552
BA
332,816
417,966
C
294
°2,051
*216
384,586
(Education and training of health
care work force)
553
BA
0
19,859
17,541
27,676
25,310
"28,155
26,954
Total, National Heart, Lung and
Blood Institute.
BA
0
396.661
350,357
448.203
409,896
454.336
442,677
BA
52,249
57,841
0
0
National Institute of
Research:
(Health research)
376,802
"426,181
415,723
Dental
552
(Education and training of health
care work force)
553
Total, National Institute
Dental Research.
of
National Institute of Arthritis,
Metabolism, and Digestive
Diseases:
(Health research)
552
44,274
56,783
c
50
°626
*154
51,644
BA
0
3.324
5,953
4.198
5,845
"4,198
3,900
BA
0
55,573
50,227
61.811
57,489
62.039
61,001
BA
209,954
249,369
0
57,101
180,704
241,684
c
200
D
1,617
*175
221,872
(Education and training of health
care work force)
553
BA
0
9,646
6,047
16,777
11,451
"17.877
17,051
Total, National Institute of
Arthritis, Metabolism, and
Digestive Diseases.
BA
0
219.600
186,751
260,453
233,323
267,246
258,840
BA
148,654
173.002
0
National Institute of Neurological
and Communicative Disorders and
Stroke:
(Health research)
552
241,789
138,109
169.085
c
150
D
1,310
£
138
157,608
(Education and training of health
care work force)
553
BA
0
6,846
9,196
7,915
7,118
"7,930
7,630
Total, National Institute of
Neurological and
Communicative Disorders
and Stroke.
BA
0
155,500
147,305
178,598
164,726
180,932
176,387
See footnotes at end of table.
168,757
THE BUDGET FOR FISCAL YEAR 1979
340
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
National Institutes of Health—Continued
Federal Funds—Continued
General and special funds:—Continued
National Institute of Allergy and
Infectious Diseases:
(Health research)
552 BA
133,689
152,181
c
160
D
1,127
*172
142,176
8,861
8,200
162,501
150,376
159,333
153,341
*7,469
7,056
166,802
160,397
(Education and training of health
care work force)
553
BA
0
Total, National Institute of
Allergy and Infectious
Diseases.
BA
0
125,759
7,311
6,877
141,000
132,636
National Institute of General Medical
Sciences-.
(Health research)
552
BA
159,492
(Education and training of health
care work force)
553
BA
0
Total, National Institute of
General Medical Sciences.
BA
0
126,933
45,508
36,220
205.000
163,153
National Institute of Child Health
and Human Development:
(Health research)
552
BA
135,491
154,731
C
92
D
1,044
*190,421
(Education and training of health
care work force)
553
BA
0
Total, National Institute of
Child Health and Human
Development.
BA
0
120,871
10,052
8,970
145.543
129,841
141,649
10,530
9,562
166,515
151,211
164,723
*8,510
10,720
198,931
175,443
552
BA
27,647
34,430
C
14
°287
35,773
(Education and training of health
care work force)
553
BA
0
29,098
2,570
2,248
37,338
31,346
34,688
*2,137
2,058
37,910
36,746
79,845
C
55
"373
£
27
66,652
81,889
National Institute of Aging:
(Health research)
Total, National
Aging.
National Eye Institute:
(Health research)
Institute
of
BA
0
15,390
2,353
1,435
30.000
16,825
552
BA
58,865
45,795
See footnotes at end of table.
181,652
6
45
D
372
*28
163,535
48,744
43,786
230,841
207,321
182,668
179,457
*51,744
49,443
234.412
228,900
80,850
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT O F HEALTH, E D U C A T I O N , A N D WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
National Institutes of Health—Continued
Federal Funds—Continued
General and special funds:—Continued
National Eye Institute:—Continued
(Education and training of health
BA
care work force)
553
0
Total, National Eye Institute
National Institute of Environmental
Health Sciences-.
(Health research)
552
Research resources:
(Health research)
5,155
3,901
"4,539
3,456
BA
0
64,000
49,677
85,455
70,553
86,428
84,306
BA
46,898
63,927
0
42,812
58,115
c
20
D
663
*29
52,713
BA
0
4,243
1,620
5,485
3,899
"5,320
5,120
of
BA
0
51,141
44,432
64,312
56,612
69,247
65,819
552
BA
137,008
148,479
0
(Education and training of health
care work force)
553
Total, National Institute
Environmental Health
Sciences.
5,135
3,882
60,699
113,151
144,412
C
2
°135
*19
138,628
BA
0
492
467
535
508
"570
542
BA
137,500
113,618
145,103
139,136
149,049
131,010
BA
7,992
8,489
0
5,485
8,369
C
2
°109
£
9
7,060
552
BA
0
7,600
5,300
7,900
5,400
8,000
5,600
(Education and training of health
care work force)
553
BA
27,634
"31.774
(Education and training of health
care work force)
553
Total, Research resources
0
John E. Fogarty International Center
for Advanced Study in the Health
Sciences
552
National Library of Medicine:
(Health research)
Total, National
Medicine.
Office of the Director:
(Health research)
See footnotes at end of table.
Library
130,468
8,328
0
26,398
28,846
C
19
"868
*11
30,372
of
BA
0
35,234
31,698
37,644
35,772
39,774
38,222
552
BA
15,550
17,750
0
14,269
16.556
C
15
"865
E
\i
18,114
32,622
17,714
THE BUDGET FOR FISCAL YEAR 1979
342
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1979
estimate
1978
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
National Institutes of Health—Continued
Federal Funds—Continued
General and special funds:—Continued
Office of the Director:—Continued
(Education and training of health
BA
care work force)
553
1.384
1.315
1.623
°153
E2
0
Total, Office of the Director
Buildings and facilities
BA
0
552
Intragovemmental funds:
General research support grants..552
National
Institutes
of
management fund
Consolidated working fund
Health
BA
0
0
0
1,528
18.923
19,642
65.650
70,436
1,620
19.373
19,334
30.950
64,216
5,302
455
2.544,078
2,253,042
2,375
2,193
2.844.808
2,642,674
1,045
-290
2,884,720
2,814,787
603.512
651.650
D
1,769
"669.675
516,277
172.586
604,505
178.844
644,715
"222,014
166,875
109.473
*188
172,952
108.388
°308
198,933
"111,182
100
-3,967
552
552
Service and supply fund
552
Total Federal funds National
Institutes of Health.
0
0
BA
0
Alcohol, Drug Abuse, and Mental Health
Administration
Federal Funds
General and special funds:
Alcohol, drug abuse, and mental
health:
(Health care services)
551 BA
0
(Health research)
1,270
16.934
15,539
67,400
15,050
552
BA
0
(Education and training of health
care work force)
553
BA
0
Total, Alcohol, drug abuse, and
mental health.
BA
0
Construction and renovation, St.
Elizabeths Hospital
551
BA
0
Saint Elizabeths Hospital: Indefinite
551
BA
104,094
885.571
787,246
1,549
69.571
65,252
See footnotes at end of table.
109,987
942.519
887,444
2,010
'55.300
5,161
'5,530
68.746
c
1,530
£
48
71,922
108,646
1,002.871
952,294
4,771
'22,120
75.824
74,820
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
343
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
Alcohol, Drug Abuse, and Mental Health
Administration—Continued
Federal Funds—Continued
Intragovernmental funds:
Working capital fund, Lexington
Addiction Research Center
551
0
10
3
BA
0
955,142
854,057
1,074,313
970,060
1,078,695
1,054,005
BA
155,717
"169,894
0
431,284
162,073
°925
*19
255,283
"342.618
Total Federal funds Alcohol,
Drug Abuse, and Mental
Health Administration.
Health Resources Administration
Federal Funds
General and special funds:
Health resources:
(Health care services)
(Health research)
551
552
BA
0
(Education and training of health
care work force)
553
Total, Health resources
BA
182,689
63,389
78,012
0
729,560
550,480
C
8
D
1,414
*36
534,847
BA
775.824
714.955
512,512
1,238,856
790,130
639,689
0
556.718
457,000
Public enterprise funds:
Health education loans
553
BA
2,727
1,814
1,899
-1,374
1,814
1,899
BA
1,273
778
513
0
-634
778
513
BA
0
31.000
30,385
41.000
40,423
42.000
40,754
BA
0
810.824
1,267,233
758.547
833,145
556.924
682,855
BA
22.316
50,273
C
16
57.674
0
17,264
37,883
49,307
74,497
0
Nurse training fund
553
Medical facilities guarantee and loan
fund
551
Total Federal funds Health
Resources Administration.
Office of Assistant Secretary for Health
General and special funds:
Salaries and expenses-.
(Health care services)
(Health research)
551
552
Total, Salaries and expenses
Adolescent health, services,
pregnancy prevention
See footnotes at end of table.
and
551
69.868
D
1,435
*47
34,653
BA
BA
22.316
123,153
0
17,264
72,536
BA
0
59,784
132.171
109,091
'60.000
^O.OOO
THE BUDGET FOR FISCAL YEAR 1979
344
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
PUBLIC HEALTH SERVICE—Continued
Office of Assistant Secretary for Health
—Continued
Federal Funds—Continued
General and special funds:—Continued
Retirement pay and medical benefits
BA
for commissioned officers:
0
Indefinite
551
Scientific activities overseas (special
foreign currency program)
552
Public enterprise funds:
Health maintenance organization
loan and loan guarantee fund.551
Intragovernmental funds:
Service and supply fund
551
BA
0
0
52,352
45,628
56,948
51,281
65,083
60,270
1,500
7,532
11,387
10,513
11,387
10,915
-8,072
22,450
-17,518
0
103
0
-2,388
15,899
BA
0
76.168
60,067
191,488
172,679
268,641
182,758
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
551
BA
0
4,700
2,386
1,600
2,537
1,600
1,882
Total Federal funds
Health Service.
Public
BA
0
6,418,856
6,348,360
7,110,891
6,786,863
7,603,851
7,054,571
Total trust funds Public Health
Service.
BA
0
4,700
2,386
1,600
2,537
1,600
1,882
Miscellaneous consolidated working
funds
552
Total Federal funds Office of
Assistant Secretary for
Health.
HEALTH CARE FINANCING ADMINISTRATION
Federal Funds
General and special funds:
Grants to States for Medicaid
551
BA
10,699,000
J
- 5,000
10,851,000
•^.OOO
12,065.000
J
- 112,900
12,065,000
• M 12,900
BA
0
7,242,941
7,242,941
7,763,913
7,763,913
BA
106,973
^1,063
D
2,485
'5,084
106,000
-4,063
•'5,084
115,069
0
Payments to health care trust funds
551
Quality care management, research,
and administration:
(Health care services)
551
0
Intragovernmental funds:
Miscellaneous consolidated working
fund
551
J
\ 7,582
103,111
•/17,582
0
-1,386
1,670
Total Federal funds Health Care
Financing Administration.
BA
0
-1,386
18,052,546
18,202,758
19,848,664
19,836,706
Trust Funds
Federal hospital insurance trust fund:
Permanent, indefinite
551
BA
0
15,374,024
15,207,149
18,489,341
17,920,303
•M0.000
21,960,849
20,965,220
J
-636,000
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
HEALTH CARE FINANCING ADMINISTRATION
—Continued
Trust Funds—Continued
Federal supplementary medical
BA
insurance trust fund: Permanent,
0
indefinite
551
Limitation on administrative
expenses.
7,382,584
6,341,666
Total trust funds Health Care
Financing Administration.
BA
0
22,756.608
21,548,815
27.481,641
25,571,346
31,702.913
29,409,833
BA
2.722.072
3.181.050
"3,394,720
'400,000
BA
0
2,352,472
9,478
2,573,600
BA
57,212
59,660
8,992,300
7,691,043
9,742,064
9,073,613
'7,000
(693,253)
EDUCATION DIVISION
Office of Education
Federal Funds
General and special funds:
Elementary and secondary education
501
Permanent
Indian education
501
3,003,492
'28,ooo
75,735
D12
0
48,090
57,882
63,648
BA
793,000
800.000
856.400
'675.600
0
764,628
787,300
'23,000
830,233
'8,000
•'-57,733
501
BA
0
292,200
241,117
310,200
280,872
332,700
304,743
Education for the handicapped ....501
BA
0
469,360
248,688
622,825
367,389
971,825
562,180
Occupational, vocational, and adult
education
501
Permanent
BA
1.153,908
725.750
718,750
BA
0
12,532
692,933
7,161
740,000
7,161
803,000
3,254.503
2,567,040
3.278.243
3,026,577
333.500
^5,000
2,700
304,012
^1,000
314.000
School assistance
affected areas
in
federally
501
'31,000
Emergency school aid
Student assistance
502
BA
0
Higher and continuing education .502
BA
3.539.338
BA
0
2,700
2,877,324
Permanent
2,700
337,482
w
2,Q00
Library resources
503
BA
0
238,042
169,378
253,212
203,739
232.837
232,515
Special projects and training
503
BA
84,993
100,659
104,546
'11.365
0
42,709
75,000
91,895
'2,273
2.000
2,116
2.000
1,900
2,000
2,100
Educational activities overseas
(special foreign currency program)
503
See footnotes at end of table.
BA
0
THE BUDGET FOR FISCAL YEAR 1979
346
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
EDUCATION DIVISION—Continued
Office of Education—Continued
Federal Funds—Continued
General and special funds:—Continued
Salaries and expenses
503
Educational development
Public enterprise funds:
Student loan insurance fund
Authority to
receipts.
Authority to
receipts.
503
BA
124,386
126,607
'2,300
"5,006
127,166
117,960
128,763
<* 1,840
1,500
125,540
M60
0
6,505
502
BA
32,312
BA
spend
public
debt
spend
public
debt
Higher education facilities loan and
insurance fund
502
Permanent, indefinite
255,724
^223,939
25,000
1,000
725,814
25,000
"15,000
142,611
618,877
^68,300
553,477
^ 155,639
BA
2,119
1,847
52,204
BA
0
1,218
-12,747
1,166
28,427
1,136
4,071
^6,000
"X500
Health professions graduate student
loan insurance fund
553
Authority to spend public debt
receipts.
Intragovernmental funds:
Consolidated working fund
503
BA
1,500
BA
0
5.000
-900
Total Federal funds Office of
Education.
BA
0
9,527,392
10,355.359
12,316.402
7,691,460
8,830,441
10,087,192
BA
70,385
100,000
0
64,493
89.600
"600
79,542
0
-2,324
National Institute of Education
Federal Funds
General and special funds:
National Institute of Education
Intragovemmental funds.
Consolidated working fund
503
503
Total Federal funds National
Institute of Education.
0
-501
90,376
...
BA
0
70.385
63,992
90,200
79,542
100,000
90,376
BA
0
11.500
8,984
12.000
10,925
14.500
11,730
Office of the Assistant Secretary for
Education
Federal Funds
General and special funds:
Salaries and expenses:
(Higher education)
See footnotes at end of table.
502
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
347
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
EDUCATION DIVISION—Continued
Office of the Assistant Secretary for
Education—Continued
Federal Funds—Continued
General and special funds:—Continued
Salaries and expenses:—Continued
(Research and general education
BA
aids)
503
503
BA
19,062
33,682
28,046
100
Total Federal funds Office of
the Assistant Secretary for
Education.
BA
0
33.782
28,046
23,879
°470
22,056
36.349
32,981
4.000
°11
1,538
40.360
34,519
Special statistical compilations and
surveys-. Permanent, indefinite 503
BA
0
Total Federal funds Education
Division.
BA
0
Total trust
Division.
BA
0
7
-20
9.631,559
7,783,498
7
-20
60
130
10,485.919
8,944,502
60
130
80
75
12.470.411
10,220,817
80
75
716,902
741,203
716,853
741,203
760,774
760,774
Total, Salaries and expenses
Institute of Museum Services
BA
0
22.182
Trust Funds
funds
Education
31,757
26,490
46.257
38,220
7,752
5,029
54.009
43,249
SOCIAL AND REHABILITATION SERVICE
Federal Funds
General and special funds:
Public assistance-.
(Social services)
506
BA
0
2.730.299
(Health care services)
551
BA
0
10.229.318
(Public assistance and other
income supplements)
604
BA
0
Total, Public assistance
BA
0
506
BA
0
Total Federal funds Social and
Rehabilitation Service.
BA
0
Program Administration
2,550,684
9,875,829
6.306,430
6,350,596
19,266,047
18,777,109
66,084
63,840
19.332,131
18,840,949
SOCIAL SECURITY ADMINISTRATION
Federal Funds
General and special funds:
Payments to social security trust
funds:
(Health care services)
551
BA
(General retirement and disability
insurance)
601
BA
0
See footnotes at end of table.
5,997,000
5,997,000
348
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
SOCIAL SECURITY ADMINISTRATION—Con.
Federal Funds—Continued
General and special funds:—Continued
Payments to social security trust
funds:—Continued
(Public assistance and other
0
income supplements)
604
Total, Payments to social
security trust funds.
BA
0
6,713,902
6,713,859
741,203
741,203
760,774
760,774
Special benefits for disabled coal
miners
601
BA
0
961.965
956,025
967,623
979,090
1,016.608
996,967
Supplemental
program
604
BA
0
5.895,122
5,297,173
5.250,000
5,974,021
5,714.971
5,555,236
604
BA
6,353,412
'187,000
D
1,212
6.823.056
security
income
Assistance payments program
6,524,474
'187,000
Refugee assistance..
..604
BA
132,000
0
173,300
Payments to states from receipts for
child support: Permanent
604
BA
0
Total Federal funds Social
Security Administration.
BA
0
Trust Funds
Gifts and donations, refugee assistance
604
13.702.989
13,140,357
J
23,000
6,822,586
•/23,000
71.950
"124,000
105,900
^86,800
147.500
133,553
^32,847
365
365
400
400
13,696,765
14,598,853
14,486.309
14,325,363
0
Federal old-age and survivors insurance
trust fund: Indefinite
601
Permanent, indefinite
BA
Federal disability insurance trust fund:
Indefinite
601
Permanent, indefinite
BA
BA
0
'13.000
71,795.139
73,478,596
76.999,603
81,703,060
86.407.111
90,159,157
•'-581,000
'2.000
15.107.663
14,943,340
(2,612,531)
12,722,900
13,066,338
•/-2,000
(2,139,508)
BA
0
81,169.295
85,068,326
89,722,503
94,729,403
101,529,774
104,458,497
SPECIAL INSTITUTIONS
Federal Funds
General and special funds:
American Printing House for the
Blind
501
BA
0
3.012
2,986
3,498
3,498
3.906
3,906
National Technical Institute for the
Deaf
502
BA
0
12,675
12,671
14,630
14,732
16,625
16,625
Limitation on
expenses.
administrative
Total trust funds Social
Security Administration.
See footnotes at end of table.
BA
0
9,374,156
11,589,730
(2,279,642)
THE FEDERAL PRCX3RAM BY AGENCY AND ACCOUNT
349
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued
SPECIAL INSTITUTIONS—Continued
Federal Funds—Continued
General and special funds:—Continued
Gallaudet College
502
Howard University
Total Federal
Institutions.
502
funds
Special
BA
0
41,798
36,893
45,976
45,043
44,833
53,500
BA
0
88,093
101,936
99,118
102,234
113,393
111,412
BA
0
145,578
154,486
163,222
165,507
178,757
185,443
BA
2,518,738
0
2,702,634
2,578,052
•/284,750
2,578,052
'264,420
HUMAN DEVELOPMENT SERVICES
Federal Funds
General and special funds:
Grants to states for social services
and child welfare services
506
Human development services.(Elementary, secondary, and
vocational education)
501
BA
0
(Social services)
489,464
*2,913,061
664,323
1,379,369
BA
0
1,907,597
1,868,833
2,223,902
2,050,028
3,648,350
2,261,188
504
BA
0
370,000
360,537
365,000
365,000
365,271
365,271
Research and training activities
overseas (special foreign curency
program)
506
BA
0
3,456
3,000
3,490
3,300
BA
0
2,277,597
2,232,826
5,107,640
5,120,662
6,879,913
5,472,231
Work incentives
Total Federal funds Human
Development Services.
1,382,686
*735,289
0
development
BA
675,002
°649
586,531
1,546,297
D
1,954
1,463,497
Total, Human
services.
506
524,911
1,596,865
DEPARTMENTAL MANAGEMENT
Federal Funds
General and special funds:
General Departmental management:
(Community development)
451
(Public assistance and
income supplements)
Total, General
management.
other
604
Departmental
Office of Inspector General
604
0
97,287
80,135
^1,047
°7,024
H
1,719
129,738
0
97,366
89,034
^963
"1,719
126,801
^84
97,287
102,366
89,925
91,716
129,738
126,885
25,343
^2,328
D
1,940
25,100
^2,148
35,606
BA
0
BA
0
See footnotes at end of table.
260-000 O - 78 - 23
5,000
BA
34,036
^180
T H E
350
B U D G E T F O R
FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH, E D U C A T I O N , A N D WELFARE—Continued
DEPARTMENTAL MANAGEMENT—Continued
Federal Funds—Continued
General and special funds:—Continued
Office for Civil Rights
751 BA
30,385
0
Office of Consumer Affairs
506
Policy research
604
BA
0
24,153
BA
1,631
0
Intragpvernmental funds:
Working capital fund
33,307
^20,146
D
1,646
36,141
^18,534
72,156
69,030
*1,612
1,737
1,534
1,750
D
50
1,818
20,000
21,252
30,000
25,905
27,000
27,640
274
1,743
506
0
-3,240
12,366
Consolidated working fund
506
0
-1,847
7,849
Grants management fund
552
0
153,329
-65
BA
0
149,303
297,547
206,435
221,512
266,237
261,400
BA
0
51,658,013
48,796,637
54,823,418
54,040,657
61,734,142
57,356,531
-49,341
-24,700
Total Federal funds
Departmental Management.
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
902
Proprietary
public
receipts
from
the
500
BA1
0 J
-€,862
-3,901
-4,142
550
BA1
0 J
-9,576
-11,337
-11,936
902
BA1
0 J
-4,031
-1,608
-1,560
BA
0
51,637.544
48,776,168
54,757,231
53,974,470
61.691,804
57,314,193
BA
0
103.930.610
106,619,507
117.205,804
120,303,416
133,234,367
133,870,287
BA1 -1,207,523
0 J
-1,681,000
-1,377,000
-16,000
-16,000
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Intrafund transactions
601
Proprietary
public
receipts
from
902
BA1
0 I
-7,319
the
503
BA1
0 J
-7
551
BA1
0J
BA1
0J
BA1
0J
-42
554
601
See footnotes at end of table.
BA1
0 J
-3,770
-20
-SO
-80
-1,290
-1,290
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
351
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF HEALTH , E D U C A T I O N , A N D WELFARE—Continued
SUMMARY—Continued
Trust funds:—Continued
902
BA}
-7,715
0 J
Total trust funds
Interfund transactions
551
BA
0
102,704,214
105,393,111
115.507,454
BA1
-5.996,944
- 7,242.941
-7,763,913
-716,902
-741,203
- 760,774
147,627,912
147,455,433
162,280.541
164,595,392
118,605,066
131,839.997
132,475,917
0 I
601
Total Department of Health,
Education, and Welfare.
BA1
0 J
BA
0
185,007,114
181,265,423
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING PROGRAMS
Federal Funds
General and special funds:
Subsidized housing programs:
Contract authority
604
BA
27,982,805
31.483.563
"24,650,950
^24,300
Current, indefinite
Permanent
Liquidation of contract authority....
Payments for operation of low
income housing projects
604
Contract authority
Liquidation of contract authority....
BA
BA
-15,430
15,378
(3,085,265)
0
2,442,883
BA
BA
0
Troubled projects operating subsidy
604
39,158
(4,032,000)
A
(24,300)
3,020,000
^22,800
685,000
39,700
"(4,503,000)
3,575,000
^1,500
"729,000
595,600
(595,600)
505,768
612,000
686,000
'74,000
'52,000
BA
0
Public enterprise funds:
Federal Housing Administration fund:
Indefinite
371
Authority to spend public debt
receipts, Permanent.
Housing for the elderly or
handicapped fund:
371
Authority to spend public debt
receipts.
BA
456.897
15,000
"352.290
BA
0
203.862
492,384
540,200
406,657
98.877
221,168
BA
0
BA
750.000
335,000
10.479
800.000
713,000
College housing—loans and other
expenses
502
Appropriation, Permanent,
indefinite.
850,000
3,907
12,640
412
-64,766
-32,336
286
15,700
BA
0
Low-rent public housing—loans and
other expenses
604
0
Emergency homeowners' relief fund
371
BA
1,000
Nonprofit sponsor assistance
604
0
Community disposal operations fund
451
0
35
-652
See footnotes at end of table.
3,376
-550
650
-490
Q CO
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued
HOUSING PROGRAMS—Continued
Federal Funds—Continued
Public enterprise funds:—Continued
Rental housing assistance fund...6O4
Revolving fund
programs)
Appropriation,
indefinite.
(liquidating
0
-6,740
59,886
BA
2,125
1,969
16,777
BA
0
1,089
36,367
689
42,273
1,164
71,785
451
Permanent,
Intragovernmental funds:
Disaster assistance fund
Total Federal
Programs.
453
funds
36,928
-50,529
BA
0
30,106,378
3,413,778
33.550.644
4,466,613
26.762.758
5,320,613
sales
371
BA
2,200
fund
BA
4,300
4,139
3,700
BA
3,300
3,260
3,100
BA
0
-804,872
-197,142
1,500,000
-50,943
0
-224,321
294,268
439,701
0
-35,562
-32,000
-28,000
0
-21,553
-24,700
-28,100
0
4,710
-1,308
-37
0
323
-3,462
-1,141
Housing
0
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION
Federal Funds
General and special funds:
Payment of participation
insufficiencies
Public enterprise funds:
Special assistance functions
371
Appropriation, Permanent,
indefinite.
Authority to spend public
receipts, Permanent.
Emergency mortgage
assistance
Management and
functions fund
debt
purchase
371
liquidating
371
Guarantees of mortgage-backed
securities
371
Participation sales fund:
(Mortgage credit and thrift
insurance)
371
(Other
advancement
and
regulation of commerce)
376
(Community development)
451
0
-2,892
1,950
1,828
(Higher education)
502
0
1,545
14,493
10,202
(Health research)
552
0
-420
-433
-653
(Veterans housing)
704
0
-7,179
-9,527
-3,539
Total, Participation sales fund..
0
-3,913
1,713
1,660
Total Federal funds Government
National Mortgage
Association.
BA
0
9.800
-1,090,221
7.399
42,139
1.506,800
334,318
BA
3,248.000
4,000,000
M.150,000
0
2,088,813
2,584,000
2,803,000
BA
62,500
57,000
*57,000
0
76,914
64,000
60,500
COMMUNITY PLANNING AND DEVELOPMENT
Federal Funds
General and special funds:
Community development grants...451
Comprehensive planning grants...451
See footnotes at end of table.
353
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued
COMMUNITY PLANNING AND DEVELOPMENT
—Continued
Federal Funds—Continued
General and special funds:—Continued
Urban extension program
451
Urban homestead ing
Miscellaneous appropriations
Public enterprise funds:
Rehabilitation loan fund
BA
0
' 10,000
J
2,000
451
BA
0
*20,000
9,900
451
0
18,684
25,000
17,934
451
BA
0
50,000
41,032
42,931
*95,000
84,600
(700,000)
600,000
(303,007)
350,000
Urban renewal programs
451
Liquidation of contract authority....
0
Total Federal funds Community
Planning and Development.
BA
0
(1,000,000)
850,271
3,360,500
3,075,714
4,057,000
3,315,931
4,332,000
3,327,934
1,709
3,000
3,900
BA
0
89,401
87,124
135,148
135,148
48,157
48,157
BA
0
89,401
88,833
135,148
138,148
48.157
52,057
3,044
4,489
7,335
NEW COMMUNITIES ADMINISTRATION
Federal Funds
General and special funds:
New community assistance
Public enterprise funds:
New communities fund:
Authority to spend public
receipts, Permanent.
grants
451
451
debt
Total Federal funds New
Communities Administration.
0
FEDERAL INSURANCE ADMINISTRATION
Federal Funds
Public enterprise funds:
National insurance development fund
376
0
453
BA
0
75,000
96,635
91.000
144,274
"114.000
149,734
Total Federal funds Federal
Insurance Administration.
BA
0
75,000
99,679
91,000
148,763
114,000
157,069
8,000
8,000
National flood insurance fund
NEIGHBORHOODS, VOLUNTARY ASSOCIATIONS,
AND CONSUMER PROTECTION
Federal Funds
General and special funds:
Housing counseling assistance
506
BA
0
3,000
360
5.000
3,400
Mobile home standards program..376
BA
0
1 000
21
1,236
199
Interstate land
indefinite
Permanent,
376
BA
0
334
365
794
365
365
Total Federal funds
Neighborhoods, Voluntary
Associations, and Consumer
Protection.
BA
0
4,334
381
5,365
5,430
8,365
8,564
sales:
See footnotes at end of table.
THE BUDGET FOR FISCAL YEAR 1979
354
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1979
estimate
1978
estimate
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued
POUCY DEVELOPMENT AND RESEARCH
f odcftcif runos
General and special funds:
Research and technology
451
BA
MANAGEMENT AND ADMINISTRATION
^Bcfefo* Funds
General and special funds:
Salaries and expenses. Department
of Housing and Urban
Development:
(Other advancement and
BA
regulation of commerce) 376
0
(Community development)
(Disaster relief
451
and insurance)
453
(Federal law
activities)
enforcement
.401
Low income-housing demonstration
program
451
bitragmmmmtal funds:
Working capital fund
.451
Joint grants management fund ....451
Total Federal funds
Management and
Administration.
SUMMARY
Federal f u n d s :
(As shown in detail above)
Deductions for offsetting receipts*.
Proprietary receipts from the
public
450
902
Total Department of Housing
and Urban Development.
See footnotes at end of table.
"62.000
57,000
6.631
5.971
1>
581
6,673
7.243
149.426
"6,880
149,183
169.996
6.155
128.810
0
119.566
BA
7.374
6.844
BA
45.874
0
42.579
BA
12,239
BA
0
7.589
"460
7.690
7,058
167,347
8.866
55.533
°3.729
56.292
75.549
17.702
11.358
14.995
"890
15.051
200.998
186.502
246.034
234.889
279.570
272.840
o
o
1479
16
89
717
0
0
BA
0
-1.092
1.430
200.998
188.303
BA
0
33.901.411
5,839,060
38.144.590
8,412,271
S99
-724
33.113.650
9,530.211
-724
-804
-900
-900
33.899.908
5,837,557
38.142,966
8,410,647
33.112.026
9,528,587
751
Total. Salaries and expenses,
Department of Housing and
Urban Development.
Urban transportation
52.000
59.800
BA
0
(Public assistance and other
income supplements)
604
55.000
62,593
BAl
0i
BAl
0J
BA
0
-334
86 .
246.034
235,447
72.236
17,333
-184
279.570
272.656
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
355
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1979
estimate
1978
estimate
DEPARTMENT OF THE INTERIOR
LAND AND WATER RESOURCES
Bureau of Land Management
Federal Funds
General and special funds:
Management of lands and resources
302
BA
278,977
302,935
Acquisition, construction and
maintenance
.302
Contract authority
Liquidation of contract authority....
Payments in lieu of taxes
852
246,938
'27,000
D
7,659
248,353
'27,000
275,368
18,707
17,683
283,625
BA
10,760
BA
0
-13,900
(5,000)
14,102
BA
0
100.000
99,983
100,000
100,011
105,000
105,000
'40,000
^O.OOO
(1,924) ..
18,700
19,071
Mineral impact loan assistance ...852
BA
0
Oregon and California grant lands:
Indefinite
302
BA
0
53.023
39,687
56,500
44,070
58,250
50,588
Range improvements: Indefinite...302
BA
0
7,472
7,113
9,172
8,800
10,900
11,100
Recreation development and
operation of recreation facilities
302
BA
0
300
233
300
300
300
400
Service charges, deposits, and
forfeitures: Indefinite
302
Miscellaneous permanent
appropriations:
(Conservation and land
management): Permanent,
indefinite
302
BA
0
149
11,531
10,770
20,523
14,321
BA
O
2,443
2,914
2,502
3,594
2,502
2,602
(Other general purpose fiscal
assistance): Permanent,
indefinite
852
BA
0
138,018
136,541
285,854
287,423
322,174
322,174
Total, Miscellaneous permanent
appropriations.
BA
O
140,461
139,455
288,356
291,017
324,676
324,776
Intragovernmental funds:
Working capital fund
302
BA
0
Total Federal funds Bureau of
Land Management.
BA
0
Trust Funds
Miscellaneous trust funds: Indefinite
302
Permanent, indefinite
2,000
-44
-325
577,242
603,508
768,163
748,977
852,700
848,556
BA
100
100
100
BA
0
605
502
600
650
600
700
BA
0
27,495
24,759
27,753
29,000
23.031
21,030
Bureau of Reclamation
Federal Funds
General and special funds:
Loan program
See footnotes at end of table.
301
THE BUDGET FOR FISCAL YEAR 1979
356
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF THE INTERIOR—Continued
LAND AND WATER RESOURCES—Continued
Bureau of Reclamation—Continued
Federal Funds—Continued
General and special funds:—Continued
Recreational and fish and wildlife
fagilities
303
BA
4,131
0
5,354
BA
0
BA
0
BA
0
BA
0
BA
44,680
22,881
100,000
6 533
24,762
23,647
30,800
9,386
530,557
301
0
BA
454,176
68,830
General administrative expenses..301
0
BA
67,648
22,720
0
BA
BA
BA
Colorado River Basin Salinity control
projects
301
Drought emergency assistance
301
General investigations
301
Emergency fund
301
Construction and rehabilitation....301
Operation and maintenance
Miscellaneous
permanent
appropriations: Permanent
Permanent, indefinite
*42,315
28,494
46 231
25,106
25,500
22,200
20,764
4,025
3,510
800
*270,562
22,559
600
21,800
353,950
F
- 4,022
384,138
78,489
G
2,842
77,814
23,665
c
1,180
24,553
600
4,060
4,895
2,100
2,700
2,100
2,700
73,420
(20,600)
57,825
41,102
45,219
78,145
73,770
92,000
63.253
56,200
69,547
66,249
62,420
680,626
794,710
617,975
603,980
20,221
20,762
13,331
10,000
4,470
6,770
19,024
14,208
25,307
20,907
*27,154
25,148
288,877
87,873
80,890
25,250
24,948
600
852
0
Public enterprise funds:
Colorado River Basin project
301
Liquidation of contract authority....
BA
ooo
0
Upper Colorado River storage project
301
Introgovemmental funds:
Consolidated working fund
301
Total Federal funds Bureau of
Reclamation.
0
BA
0
Trust Funds
trust funds: Permanent,
301
BA
0
Reclamation
indefinite
4,015
"875
3,899
^875
22,675
30,000
86 ...
973,157
744,968
Office of Water Research and Technology
Federal Funds
General and special funds:
Salaries and expenses
See footnotes at end of table.
301
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
357
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF THE INTERIOR—Continued
LAND AND WATER RESOURCES—Continued
Office of Water Research and Technology
—Continued
Federal Funds—Continued
Intragovernmental funds:
Consolidated working fund
306
Total Federal funds Office of
Water Research and
Technology.
0
BA
0
124
19,024
14,332
164 .
25,307
21,071
BA
1,474,096
1,564,758
14,031
10,650
1,497,829
1,477,684
5,170
7,470
27,154
25,148
Total Federal funds Land and
Water Resources.
0
Total trust funds Land and
Water Resources.
BA
0
1,569,423
1,362,808
20,926
21,264
BA
6,977
11,574
15,158
0
6,771
530,799
8,410
626,000
17,687
725,000
0
30,000
343,757
30,000
472,000
30,000
554,000
0
BA
0
-132 ...
567,776
350,396
667,903
480,410
770,158
571,687
191,937
FISH AND WILDLIFE AND PARKS
Bureau of Outdoor Recreation
Federal Funds
General and special funds:
Salaries and expenses
303
Land and water conservation fund
303
Contract authority, Permanent
sntal funds:
Intn
Consolidated working fund
303
Total Federal funds Bureau of
Outdoor Recreation.
BA
BA
United States Fish and Wildlife Service
Federal Funds
General and special funds:
BA
148,506
0
134,758
BA
24,211
0
13,268
Migratory bird conservation account
303
Permanent, indefinite
BA
14,000
169,279
^1,583
'660
"6,036
169,155
^400
65,060
^3,600
40,300
"1,440
10,000
BA
0
10,691
17,169
12,000
22,000
Development and operation
recreation facilities
Miscellaneous permanent
appropriations:
(Recreational resources):
Permanent, indefinite
of
303
BA
0
303
BA
0
Resource management
303
Construction and anadromous fish
303
See footnotes at end of table.
116,452
82,644
185,970
^1,183
89,943
150
150
64,993
^2,160
10,000
J
11,000
12,000
20,900
'11,000
150
150
94,176
79,970
112,355
98,633
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF THE INTERIOR—Continued
FISH AND WILDLIFE AND PARKS—Continued
United States Fish and Wildlife Service
—Continued
Federal Funds—Continued
General and special funds:—Continued
Miscellaneous permanent
appropriations:—Continued
(Other general purpose fiscal
assistance): Permanent,
indefinite
852
Total, Miscellaneous permanent
appropriations.
BA
0
5.099
5,988
4,500
5,100
4,200
4,200
BA
0
121,551
88,632
98,676
85,070
116,555
102,833
0
BA
0
-3,442
318,959
250,385
800
367,044
319,315
800
431,585
389,989
Intragovemmental funds:
Consolidated working fund
303
Total Federal funds United
States Fish and Wildlife
Service.
Trust Funds
Contributed funds-.
indefinite
Permanent,
303
BA
0
park
303
BA
2,176
2,153
2,500
2,400
2,800
2,400
323,105
^2.750
363,637
National Park Service
Federal Funds
General and special funds:
Operation of the national
system
295,033
C
5.296
\ 0.893
338,897
^2,750
D
Construction
303
Road construction:
303
Contract authority
Liquidation of contract authority....
Preservation of historic properties
303
John F. Kennedy Center for the
Performing Arts
303
0
289,947
BA
0
130,952
36,544
161,442
90,000
BA
-133.995
(21,800)
(30,198)
0
29,778
16,184
21,912
BA
22,623
5,667
D
225
5,897
0
22,403
20,917
13,065
7,600
3,750
C
64
4,066
BA
303
3,046
BA
0
Planning, development, and
operation of recreation facilities
303
Commemorative activities fund:
Permanent, indefinite
303
Miscellaneous permanent
appropriations: Permanent,
indefinite
303
See footnotes at end of table.
121,328
121,275
D
0
Historic preservation fund
363,616
47
8,104
3,987
45,000
45,000
15,000
30,000
BA
14,000
14,000
°468
15,478
0
13,663
15,949
17,478
BA
0
BA
0
4,668
11,440
518
318
500
180
500
500
330
435
435
359
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF THE INTERIOR—Continued
FISH AND WILDLIFE AND PARKS—Continued
National Park Service—Continued
Federal Funds—Continued
Intragovemmental funds:
Consolidated working fund
303
Total Federal funds National
Park Service.
Trust Funds
Miscellaneous trust funds: Permanent
303
Total Federal funds Fish and
Wildlife and Parks.
Total trust funds Fish and
Wildlife and Parks.
0
BA
0
-1,843
250
250
341,399
405,296
573,707
508,731
555,841
572,348
BA
0
BA
0
BA
0
2,604
2,606
3,000
3,000
2,200
2,265
1,228,134
1,006,077
1,608,654
1,308,456
1,757.584
1,534,024
4,780
4,759
5,500
5,400
5.000
4,665
BA
320.433
361.547
C
415
12,787
"Z000
370,774
"ZOOO
398.363
209,541
191,541
185,548
187,150
586,290
564,315
583,911
580,988
ENERGY AND MINERALS
Geological Survey
Fedetot Funds
General and special funds:
Surveys, investigations and research
306
D
306,086
Exploration of national
reserve in Alaska
petroleum
271
BA
0
Payments from proceeds, sale of
water: Permanent, indefinite....301
itragovemmental funds:
Consolidated working fund
306
BA
0
-3,686
Total Federal funds Geological
Survey.
BA
0
320.435
302,400
Office of Surface Mining Reclamation and
Enforcement
Federal Funds
General and special funds:
Regulation and technology
302
BA
1,000
0
Abandoned mine reclamation fund
(including transfer of funds)....302
BA
0
Total Federal funds Office of
Surface Mining Reclamation
and Enforcement.
BA
0
Trust Funds
Abandoned mine reclamation fund...302
See footnotes at end of table.
BA
0
1,000
393,838
*37,761
"30,880
985
^24,015
w
36,647
^23,000
^13,647
67.527
48,000
37,761
50,984
30,472
^6,865
70,861
18,886
THE BUDGET FOR FISCAL YEAR 1979
360
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
jctual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF THE INTERIOR—Continued
ENERGY AND MINERALS—Continued
Mining Enforcement and Safety
Administration
Federal Funds
General and special funds:
Salaries and expenses
554
8A
Consolidated working fund
554
Total Federal funds Mining
Enforcement and Safety
Administration.
Trust Funds
Contributed funds
554
Bureau of Mines
Federal Funds
General and special funds:
Mines and minerals
306
Drainage of anthracite mines 306
Public enterprise funds:
Helium fund-.
306
Contract authority Permanent ...
0
99,301
98,193
0
BA
0
-91
72 ...
99,301
98102
51,011 ...
53 035 ..
-14
19 ...
0
BA
133,611
0
0
116,410
51011
52,963 ...
135,270
"3,084
125,286
121,329
50
50
3,316
47,500
1,362
127,975
BA
0
-296
0
BA
0
553
783
610
133,611
116,667
138,354
129,435
168,829
129,997
InlnwuuMtmmttnlnl funrU-
Consolidated working fund
306
Total Federal funds Bureau of
Mines.
Trust Funds
Contributed funds: Permanent,
indefinite
306
Total Federal funds Energy and
Minerals.
Total trust funds Energy and
Minerals.
BA
0
BA
0
BA
0
452
684
800
800
800
800
554,347
517,169
843,182
794,785
790,501
761,969
452
670
800
819
71,661
19,686
BA
45,536
61,283
^7,273
70,303
INDIAN AFFAIRS
Bureau of Indian Affairs
Federal Funds
General and special funds:
Operation of Indian programs:
(Conservation and land
management)
302
C
231
1,330
"7,224
60,546
^6,473
"7,224
D
45,783
See footnotes at end of table.
69,291
^800
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
361
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF THE INTERIOR—Continued
INDIAN AFFAIRS—Continued
Bureau of Indian Affairs—Continued
Federal Funds—Continued
General and special funds:—Continued
Operation of Indian programs:—Con.
(Area and regional development)
452
(Elementary, secondary,
vocational education)
Total, Operation
programs.
and
501
of
Indian
Construction
452
Road construction
452
Liquidation of contract authority....
Miscellaneous
permanent
appropriations:
(Area and regional development):
Permanent, indefinite
452
(Other general government)
Permanent, indefinite
806
Total, Miscellaneous permanent
appropriations.
Public enterprise funds:
Revolving fund for loans
452
Indian loan guaranty and insurance
fund
452
Liquidation of Hoonah
Project revolving fund
Intragovernmental funds:
Consolidated working fund
Housing
452
452
Total Federal funds Bureau of
Indian Affairs.
Trust Funds
Miscellaneous trust funds:
(Area and regional development)..452
Current, indefinite
Permanent, indefinite
See footnotes at end of table.
419,912
0
39.075
(36,795)
64,638
366,730
^1,576
C
3,318
D
5,652
"1,150
363,260
^1,576
H.150
249,168
^1,107
C
1,797
D
7,863
251,503
-U.107
715.702
692,839
64.153
^2,166
59,282
^2,166
75,335
(22,912)
79,368
BA
0
BA
BA
0
BA
0
16,696
16,714
30,000
593
30,593
47.289
47,307
15,430
14,600
30,000
200
30,200
45,630
44,800
17,000
16,000
30,000
200
30,200
47,200
46,200
0
BA
0
0
6,592
15,000 .
1,450
-8
9,200
5,600
1,200
3
2,200
13
0
BA
0
2,470 ...
804,648
812,068
902,986
888,858
966,681
966,594
BA
BA
BA
0
1,036
30.574
210,620
221,768
3,000
23,000
240,000
154,480
3,000
21,000
238,900
147,200
BA
343,947
0
345,811
BA
236,700
0
237,980
BA
0
BA
626,183
629,574
77,101
0
60,045
BA
418,511
271,041
270,138
761,256
758,740
86,815
82,289
71,410
71,552
THE BUDGET FOR FISCAL YEAR 1979
362
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1979
estimate
1978
estimate
DEPARTMENT OF THE INTERIOR—Continued
INDIAN AFFAIRS—Continued
Bureau of Indian Affairs—Continued
Trust Funds—Continued
Miscellaneous trust funds:—Continued
(Other general government)-.
BA
Permanent
806
Permanent, indefinite
BA
30.000
30.000
30.000
1.076
30,475
94.000
129,914
86.600
116,600
273.306
252,243
390.000
284,394
379.500
263.800
273.306
252,243
390.000
284,394
379.500
263,800
Total trust funds Bureau of
Indian Affairs.
0
BA
0
BA
0
Total Federal
Affairs.
Indian
BA
0
804.648
812,068
902.986
888,858
966.681
966,594
Total trust funds Indian Affairs.
BA
0
273,306
252,243
390.000
284,394
379.500
263,800
BA
58.072
21.105
"49,436
Total, Miscellaneous
funds.
funds
trust
TERRITORIAL AFFAIRS
Office of Territorial Affairs
Federal Funds
General and special funds:
Administration of territories
806
°65
'1,078
w
0
37,398
1,798
50,062
44,202
'1,078
"'1,798
Trust Territory of the Pacific Islands
BA
101.717
806
110.444
4
3.149
D
223
107,502
4
3,149
0
85,456
Micronesian claims fund, Trust
Territory of the Pacific lslands.806
0
6,689
1,858
Office of the Comptroller for Guam
o
466
198
806
"106,920
98,420
Internal revenue collections for the
Virgin Islands: Permanent,
indefinite
852
BA
0
20.298
18,874
20,000
20,000
20,000
20,000
Total Federal funds Office of
Territorial Affairs.
BA
0
180.087
148,883
156.784
184,567
177,434
163,700
13.309
"816
1.100
14,081
"1,080
16.225
SECRETARIAL OFFICES
Office of the Solicitor and Office of the
Secretary
Federal Funds
General and special funds:
Office of the Solicitor, salaries and
expenses
306
BA
H
0
See footnotes at end of table.
12.381
12,242
16,182
"'20
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
363
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1978
estimate
1977
actual
Account and functional code
1979
estimate
DEPARTMENT OF THE INTERIOR—Continued
SECRETARIAL OFFICES—Continued
Office of the Solicitor and Office of the
Secretary—Continued
Federal Funds—Continued
General and special funds:—Continued
BA
Office of the Secretary, salaries and
expenses
306
Departmental operations
306
Salaries and expenses (special
foreign currency program)
306
Litter prevention and
Permanent, indefinite
ntragovemmental funds:
Working capital fund
cleanup:
304
20,842
0
20,017
BA
BA
13,256
0
11,207
BA
0
907
1,561
BA
2
2
o
306
0
-633
Consolidated working fund, Office of
the Secretary
306
0
-704
Total Federal funds Office of
the Solicitor and Office of
the Secretary.
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
274
Total Federal funds
Trust funds:
(As shown in detail above)..
See footnotes at end of table.
21,810
"1,397
^250
22,701
^237
24,852
12,744
"664
"795
14,410
"770
16,091
1,000
1,200
1,000
1,200
25,318
"13
17,408
^25
..
BA
0
47,388
43,692
53,885
54,479
58,168
60,166
BA
0
4,384,027
3,890,697
5,039,587
4,795,903
5,248,197
4,964,137
-500
-500
-750,692
-823,306
-30
-30
-13,650
-22,600
-15,930
-17,500
-70
-70
-1,595
-1,495
-5,112
-5,512
3.701,256
3,207,926
4,252,008
4,008,324
4,377,184
4,093,124
299,464
278,936
410,331
301,263
461,331
295,621
BA}..
0 I
300
BA1
0 J
301
BA1
0 I
-€56,443
-15
302
BA1
0 J
-3,835
450
BA1
0 J
-17,121
500
BA1
0 J
800
BA1
0 J
-763
902
BA}
0 J
BA "
0
-4,544
BA
0
-50
THE
BUDGET FOR FISCAL YEAR
1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF THE INTERIOR—Continued
SUMMARY—Continued
Trust funds:—Continued
Deductions for offsetting receipts:
Proprietary receipts from the
public
301
302
303
306
452
902
Total trust funds
Interfund transactions
452
Total Department of the Interior
BA1
0 J
-20,221
BA1
-704
0I
BA1
-2,176
0J
BA1
-452
0J
BA1 -177,227
0J
BA1 -30,453
0 J
BA
68,231
0
47,703
BA1
0 J
BA
0
-13,331
-700
-2,500
-800
-4,470
-700
-2,800
-800
-231,725
-271,448
-31,382
-31,230
129,893
20,825
149,883
-15,827
-61,908
-125,000
- 75,000
3,707,579
3,193,721
4,256,901
3,904,149
4,452,067
4,002,297
DEPARTMENT OF JUSTICE
GENERAL ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
751
Intragovemmental funds:
Consolidated working fund
Working capital fund
BA
22,882
0
20,225
751
0
-1,064
751
BA
LEGAL ACTIVITIES
Federal Funds
General and special funds:
Salaries and expenses, General Legal
Activities
752
See footnotes at end of table.
28,996
709
800
27,884
4
18
2,238
1,647
-94
-682
BA
0
25,120
20,808
27,744
27,389
28,996
28,020
BA
71,909
76,075
^724
"3,733
"1,445
89,884
0
67,169
80,798
^682
••'1.388
89,564
M2
w
b7
0
Total Federal funds General
Administration.
26,229
l
368
c
30
°1,117
26,424
^350
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
365
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF JUSTICE—Continued
LEGAL ACTIVITIES—Continued
Federal Funds—Continued
General and special funds:—Continued
Salaries and expenses, Antitrust
Division
752
BA
27,706
39,785
^864
1,363
"1,223
35,235
^850
••'1,185
46,377
196,736
D
25,638
44,886
*14
"'38
Salaries and expenses, United States
Attorneys and Marshals
752
BA
167,870
0
163,758
179,075
D
7,000
184,251
Support of United States prisoners
752
BA
0
41,875
40,421
21,000
24,493
25,100
24,400
Fees and expenses of witnesses...752
BA
0
19,177
15,747
20,050
19,849
20,144
19,942
Salaries and expenses, Community
Relations Service
752
BA
0
4,528
4,213
5,192
5,252
5.353
5,323
BA
0
333,065
316,946
357,529
353,983
383,594
378,332
529,454
24,500
550,050
556,750
266,450
12,887
276,320
298,019
181,895
"6,600
190,069
192,953
Total Federal
Activities.
funds
Legal
194,066
FEDERAL BUREAU OF INVESTIGATION
Federal Funds
General and special funds:
513,377
Salaries and expenses
751
BA
D
520,218
555,239
0
IMMIGRATION AND NATURALIZATION SERVICE
Federal Funds
General and special funds:
244,515
D
Salaries and expenses
751
BA
242,714
295,550
0
DRUG ENFORCEMENT ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
168,244
751
BA
0
166,839
BA
218,200
259,576
C
812
D
9,027
315,479
0
193,500
FEDERAL PRISON SYSTEM
Federal Funds
General and special funds:
l
d expenses, Bureau of
Salaries
and
Prisons
753
216,837
264,351
310,340
National Institute of Corrections- 754
BA
0
5,043
1,503
9,900
8,000
9.943
9,913
753
BA
0
78,980
23,588
38.850
54,582
37,080
62,184
Buildings and facilities
See footnotes at end of table.
260-000 O - 78 - 24
THE
366
BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF JUSTICE—Continued
FEDERAL PRISON SYSTEM—Continued
Federal Funds—Continued
Intragovemmental funds:
Federal Prison Industries,
Incorporated
753
Limitation on administrative
expenses.
Limitation on vocational expenses.
Total Federal funds
Prison System.
Trust Funds
Commissary funds, Federal
(trust revolving fund)
0
475
(1,256)
(4,055)
Federal
BA
0
prisons
753
0
302,223
242,403
(2,000)
(4,548)
(2,041)
(3,513)
318,326
326,933
362.502
382,437
753,000
644,582
641,488
845,742
°1,525
809,037
706,934
-649
LAW ENFORCEMENT ASSISTANCE
ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
754
BA
0
Public enterprise funds:
Revolving fund
754
Total Federal funds Law
Enforcement Assistance
Administration.
0
-2
BA
0
753,000
845,740
646,107
809,037
641,488
706,934
BA
0
2,339,544
2,355,668
2,371,492
2,533,781
2,464,302
2,540,012
BA1
0 J
-728
-6,934
-6,998
BA1
-4,564
-14
-14
2,364,544
2,526,833
2,457,290
2,533,000
2,364,544
2,526,833
2,457,290
2,533,000
SUMMARY
Federal f u n d s :
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
750
902
0 I
Total Federal funds
BA
0
2,334,252
2,350,376
Trust funds:
(As shown in detail above)
0
Total Department of Justice
BA
0
-649
2,334,252
2,349,727
DEPARTMENT O F LABOR
EMPLOYMENT AND TRAINING ADMINISTRATION
Federal Funds
General and special funds:
Program administration
504
Employment and training assistance
504
BA
76,222
90,832
0
76,881
91,247
88,134
BA
5,889,830
3,377,930
^76,540
"4,852,828
0
3,290,898
4,775,000
5,400,000
^76,540
See footnotes at end of table.
*90,438
367
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF LABOR—Continued
EMPLOYMENT AND TRAINING ADMINISTRATION
—Continued
Federal Funds—Continued
General and special funds:—Continued
Community service employment for BA
older Americans
504
150,000
72,102
178,400
^19,800
assistance
504
BA
0
program
504
BA
0
Federal unemployment benefits and
allowances
603
BA
0
860.000
833,089
1,200,000
1,200,000
950,000
950,000
Grants to States for unemployment
insurance and employment
services
504
BA
0
89,100
53,034
53,600
53,600
21,600
21,600
Advances to the unemployment trust
fund and other funds
603
Intragpvemmenral funds:
Consolidated working fund
504
BA
0
5,000,000
4,338,118
600,000
opportunities
Total Federal funds
Employment and Training
Administration.
Trust Funds
Gifts and bequests, National
Commission for Manpower Policy-.
Permanent, indefinite
504
Unemployment trust fund:
(Training and employment):
Permanent, indefinite
504
4,765,000
*5,955,286
5,956,000
'50,000
•^35,000
10,562
18,912,152
11,015,093
5,019.302
11,711,687
12,148.602
12,648,934
BA
0
32
43
100
177
100
100
547.136
573,804
639.703
639,703
723,160
723,160
J
BA
ooo
- 600.00C
BA
14,438,836
13,529,154
14.760,297
11,160,297
16,676,840
11,276,840
'-400,000
Total, Unemployment trust fund
ooo
(Unemployment compensation):
Indefinite
603
Permanent, indefinite
0
6,847,000
2,340,409
ooo
Employment
employment
*228,450
oro
Temporary
190,400
^30,000
140,100
A
10,200
14,985,972
14,102,958
15,400,000
11,800,000
16,800,000
11,600,000
Total trust funds Employment
and Training Administration.
BA
0
14,986,004
14,103,001
15,400,100
11,800,177
16,800,100
11,600,100
LABOR MANAGEMENT SERVICES
ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
505
BA
50,754
55,961
4
956
D
1,387
55,265
^837
59,954
47,207
See footnotes at end of table.
57,566
^119
368
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF LABOR—Continued
EMPLOYMENT STANDARDS ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
505 BA
98,992
97,937
Special benefits-.
(General retirement and disability
insurance)
601
BA
0
(Federal employee retirement and
disability)
602
BA
0
111,280
4
940
D
4,987
^3,700
112,737
^900
"3,500
128,981
27,035
27,035
292,325
292,325
319,360
319,360
440,267
436,497
31,863
31,863
228,137
228,137
260,000
260,000
388,981
385,315
125,075
-M0
w
'200
Total, Special benefits
BA
0
Total Federal funds
Employment Standards
Administration.
BA
0
29,542
22,325
307,407
275,370
336,949
297,695
435,941
395,632
BA
0
3,135
3,581
3,890
3,898
4,707
4,728
OCCUPATIONAL SAFETY AND HEALTH
ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
554 BA
130,333
162,730
Trust Funds
Special workers' compensation
expenses: Permanent
Intragpvemmental funds:
Consolidated working fund
601
554
Total Federal funds
Occupational Safety and
Health Administration.
0
126,729
136,640
D
2,430
127,980
0
671
130,333
127,400
1,089
139,070
129,069
BA
0
MINE SAFETY AND HEALTH ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
554 BA
0
BUREAU OF LABOR STATISTICS
Federal Funds
General and special funds:
Salaries and expenses
505
BA
75,617
150,480
162,730
150,480
55,174
^9,433
51,249
^6,070
123,500
82,857
^536
2,858
84,000
^526
94,950
116,187
^3,363
D
77,013
See footnotes at end of table.
93,051
A
10
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF LABOR—Continued
BUREAU OF LABOR STATISTICS—Continued
Federal Funds—Continued
Intragovernmental funds:
Consolidated working fund
505
Total Federal funds Bureau of
Labor Statistics.
Trust Funds
Special statistical work
505
0
-1,170
BA
0
75,617
75,843
0
86,251
84,526
94,950
93,061
60,257
3,142
^1,240
"1,270
61,389
^925
"1,270
*78,731
70
159
200
160
-1
DEPARTMENTAL MANAGEMENT
Federal Funds
General and special funds:
Salaries and expenses
505
BA
51,936
D
0
Special foreign currency program.505
Intragovemmental funds:
Working capital fund
Miscellaneous
funds
BA
0
48,502
70
68
505
0
498
consolidated working
505
0
-223
Total Federal funds
Departmental Management.
74,944
^315
BA
0
52,006
48,845
65,979
63,743
78,931
75,419
BA
0
19,656,803
11,710,020
5,873,780
12,538,943
13,057,648
13,530,444
-199
-644
-648
-90
-150
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Proprietary receipts from the
public
500
550
BA1
0 J
600
BA}.
0 J
252
-255
-257
902
BA1
0 J
-465
-465
-465
BA
0
19,656,391
11,709,608
5,872,326
12,537,489
13,056,128
13,528,924
BA
0
14,989,139
14,106,581
15,403,990
11,804,075
16,804,807
11,604,828
BA1 -3,442,095
0 J
-600,000
Total Federal funds
Trust funds:
(As shown in detail above)
Interfund transactions
Total Department of Labor
See footnotes at end of table.
BA1
0 J
603
BA
0
31,203,435
22,374,094
20,676,316
23,741,564
29,860,935
25,133,752
370
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dol lars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
DEPARTMENT OF STATE
ADMINISTRATION OF FOREIGN AFFAIRS
Federal Funds
BA
548,500
0
543.353
603,577
^3,250
C
136
D
\ 5,846
593,000
^1,500
"662,117
2,500
2,400
"2,900
2,800
103,101
M 0,000
D
209
63.970
^1,000
"118,644
637,300
^1,750
153
2,000
1,856
Acquisition, operation, and
maintenance of buildings abroad
153
BA
67,350
0
30.894
Acquisition, operation, and
maintenance of buildings abroad
(special foreign currency program)
153
BA
0
30,235
8.577
7,520
10,345
"6,025
15,331
Emergencies in the diplomatic and
consular service
153
BA
0
2,100
1.676
2,350
2,180
"2,350
2.270
Payment to the Foreign Service
retirement and disability fund .153
Permanent, indefinite
BA
25,849
"38.107
BA
BA
0
67,800
93.649
26,599
M 1,008
78,300
104.899
^11,008
-271
-538
864.396
790.031
922.443
896.661
Intragpvemmental funds:
Working capital fund
Consolidated working fund
153
0
526
153
0
39
Total Federal funds
Administration of Foreign
Affairs.
Trust Funds
Foreign Service retirement and
disability fund
602
Permanent, indefinite
Miscellaneous trust funds: Permanent,
indefinite
153
Total trust
funds
Administration of
Affairs.
Foreign
ooo
Representation allowances
153
ooo
General and special funds:
Salaries and expenses
743,834
680,570
BA
100.341
^7,000
92.300
130.407
...
^13,778
BA
0
176,156
83.843
176.964
101.488
207,817
117,430
BA
0
736
576
740
740
740
740
BA
0
176,892
84,419
191,482
102,228
208,557
118,170
BA
325.843
"355,392
0
322,583
325.979
64,127
316,792
*48,095
32,000
"-5,000
20,250
INTERNATIONAL ORGANIZATIONS AND
CONFERENCES
Federal Funds
General and special funds:
Contributions to international
organizations
153
Contributions for international
peacekeeping activities
153
BA
28,000
27.168
See footnotes at end of table.
B
338,070
16,032
"32,000
B
30,750
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
371
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF STATE—Continued
INTERNATIONAL ORGANIZATIONS AND
CONFERENCES—Continued
fee/era/ Funds—Continued
General and special funds:—Continued
BA
Missions to international
organizations
153
0
International conferences
contingencies
and
153
International trade negotiations ...153
BA
0
BA
"12,072
9,695
10,144
^1,117
10,570
9,526
'1,093
11,536
8,660
4,408
8,000
8,440
"8,600
8,710
3,550
3,800
^412
"4,717
°247
^24
D
85
0
Total Federal funds
International Organizations
and Conferences.
Trust Funds
Gifts and bequests, National
Commission on Educational,
Scientific, and Cultural Cooperation:
Permanent, indefinite
153
2,942
3,864
^371
4,247
BA
0
375,748
367,671
440,911
408,431
412,781
409,410
BA
0
23
27
25
20
25
20
BA
6,040
"6,840
0
BA
0
BA
5,793
6,300
c
100
°220
6,608
3,919
3,305
17,000
15,000
"3,968
12,000
1,910
2,232
"2,553
^41
INTERNATIONAL COMMISSIONS
Federal Funds
General and special funds:
International Boundary and Water
Commission,
United States and Mexico:
Salaries and expenses
301
Construction
301
American sections,
commissions
international
301
International fisheries commissions
OTHER
Federal Funds
General and special funds:
Migration and refugee assistance
iM
0
1,657
2,283
2,503
BA
5,550
"6,612
0
5,250
5.745
^519
5,750
^519
6,612
BA
0
17,419
16,005
32,172
30,160
19,973
27,980
BA
28,755
53.054
"56,336
0
26,222
°35
ioi
See footnotes at end of table.
D
56
302
Total Federal funds
International Commissions.
6,865
^6,300
50,807
^5,400
50,441
^900
372
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF STATE—Continued
OTHER—Continued
Federal
Funds—Continued
General and special funds:—Continued
United States emergency refugee and
migration assistance fund
151
Assistance to refugees from the
Soviet Union and other communist
countries in Eastern Europe
151
BA
0
3,660
10,327
BA
0
15,000
15,000
15,000
15,120
Special assistance to refugees from
Cambodia and Vietnam
604
Eighth Pan American games
10,000
14,728
6,515
154
BA
0
Payment to the Republic of Panama:
Permanent
153
BA
0
International Center, Washington,
D.C.: Permanent, indefinite
153
BA
0
Total Federal funds Other
BA
0
BA
0
-3,700
10,000
598
3,152
2,328
2,328
146
1,357
6,848
2.328
2,328
2,346
2,346
59,743
61,110
71,863
74,072
76,010
77,863
1,196,744
1,125,356
1,409,342
1,302,694
1,431,207
1,411,914
BAl
0 J
-519
-519
-519
the
150
BAl
0 J
-19,762
-15,911
-18,111
300
BAl
0 J
-150
-84
-84
301
BAl
0 J
-425
-425
-425
400
BAl
0 J
-198
-200
-200
902
BAl
0 J
2,368
-350
-350
BA
0
1.178,058
1,106,670
1,391,853
1,285,205
1,411,518
1,392,225
BA
0
176,915
84,446
191,507
102,248
208,582
118,190
-248
-300
-300
BA
0
176,667
84,198
191,207
101,948
208,282
117,890
BAl
0 J
-114,899
-140,127
-155,227
BA
0
1,239,826
1,075,969
1,442,933
1,247,026
1,464,573
1,354,888
2,328
2,328
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
153
Proprietary
public
receipts
from
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
602
Total trust funds
Interfund transactions
Total Department of State
153
BAl
0 J
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
373
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
Federal Funds
General and special funds:
Salaries and expenses
407
BA
36,150
33,454
"2.100
33,335
35,306
28,000
24,703
100
36,050
25,000
24,000
33,300
12,465
16,000
Transportation research activities
overseas (special foreign currency
program)
407
Intragovemmental funds:
Working capital fund
407
0
BA
0
BA
0
401
0
2,033
-1,500
Total Federal funds Office of
the Secretary.
BA
0
64,250
62,443
60,554
58,643
403
BA
838,186
"944,585
0
403
BA
0
878,659
C
1,464
D
4,217
£
27,721
903,293
236.000
190,358
15.100
15,000
155.401
"2.399
155,317
^2,399
36.560
°108
Transportation planning,
and development
research,
407
COAST GUARD
Federal Funds
General and special funds:
Operating expenses
F
-67
93 ....
-500
^4,865
45,800
53,665
936,800
"279,208
223,600
"34,603
15,000
173,500
Alteration of bridges
403
BA
0
Retired pay
403
BA
827,675
236,000
131,581
10,900
10,148
140,300
0
139,516
403
BA
35,750
0
Research, development, test, and
evaluation
403
BA
0
State boating safety assistance...403
BA
0
37^000
20.000
18,000
5.790
5,790
38,000
"20,000
18,000
"3,000
3,000
Pollution fund
Appropriation,
indefinite.
BA
BA
0
35,630
18,800
16,992
5,790
7,039
15,000
6,888
9,303
7.000
8,000
7,000
7,000
-'180,000
'SO.OOO
1,915
-21,964
1,307,614
1,157,835
900
21,422
1.392.311
1,357,479
500
-5,000
1,680,896
1,460,400
Acquisition, construction,
improvements
and
Reserve training
304
Permanent,
Oil
pollution liability and
compensation fund: lndefinite.304
Intragovemmental funds:
Coast Guard supply fund
403
Coast Guard yard fund
Total Federal
Guard.
See footnotes at end of table.
403
funds
Coast
BA
0
0
0
BA
0
173,500
"39,000
374
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF TRANSPORTATION—Continued
COAST GUARD—Continued
Trust Funds
Coast Guard general gift fund:
Permanent, indefinite
403
Special statistical work: Permanent,
indefinite
403
Miscellaneous trust revolving funds .403
Total trust funds Coast Guard...
FEDERAL AVIATION ADMINISTRATION
Federal Funds
General and special funds:
Operations
402
Facilities, engineering
development
and
402
Operation and maintenance,
Metropolitan Washington Airports
402
Construction, Metropolitan
Washington Airports
402
Civil supersonic aircraft development
termination
402
Safety regulation
402
United States International
Aeronautical Exposition
402
Public enterprise funds:
Aviation war risk insurance revolving
fund
402
Total Federal funds Federal
Aviation Administration.
Trust Funds
Grants-in-aid for airports (Airport and
airway trust fund)
402
Contract authority, Permanent
Liquidation of contract authority
BA
0
BA
947
7
953
BA
1.487.800
1.527.700
"97,600
0
1,475,819
1,603,793
BA
0
BA
15.500
13,454
21.500
0
20,726
5.000
6,105
80
14.263
22,500
21,273
D
1,020
22,196
5,500
10,000
BA
0
0
0
0
BA
0
BA
BA
BA
0
Operations (Airport and airway trust
fund)
402
BA
0
BA
0
1,000
237 ...
30
30
26
30
56
1,708,953
J
- 3,000
1,682,000
19.411
18,000
23,858
23,878
5,270
10,538
180
-744
-786
1.667,356
1,658,982
1,754,492
1,730,810
15,000
15.000
510,000
(355,000)
334,823
200,000
540,000
(325,000)
540,000
200,000
575.000
(550,000)
565,000
370,947
197,109
74.350
70,487
250,000
250,245
1,034,350
852,664
9.000 ..
200,000
200,000
80.800
75,373
79,000
78,000
300.000
275,000
300,000
274,807
1,119,800
1,336.320
1,093,807
1,143,000
1,529.800
1,516,246
BA
BA
0
See footnotes at end of table.
959
0
Research, engineering and development
(Airport and airway trust fund) ....402
Total trust funds Federal
Aviation Administration.
30
30
275 ..
275
26
305
331
0
0
BA
0
0
Facilities and equipment (Airport and
airway trust fund)
402
Reappropriation
7
6
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
375
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF TRANSPORTATION—Continued
FEDERAL HIGHWAY ADMINISTRATION
Federal Funds
General and special funds:
Motor carrier safety
401 BA
0
Highway beautification
401
BA
Liquidation of contract authority....
Darien Gap Highway
151
401
28,000
19,150
(33,600)
33,945
(5,000)
40,500
*23,150
J
- 23,150
(18,000)
33,700
-'-4,630
12,286
BA
0
Territorial highways
13,351
7,076
8,000
°370
7,763
7,212
20,000
7,934
BA
^20,000
5,570
^4,000
7,600
^6,065
5,600
5,600
- 5,600
J
Contract authority
Liquidation of contract authority....
BA
0
-14,464
(3,560)
5,963
(290)
3,400
8,667
2,841
1,767
5,600
7,200
(8,200)
1,906
(2,700)
6,000
(6,000)
7,700
(5,500)
8,500
•'-1,300
Railroad-highway crossings
demonstration projects
401
National scenic and recreational
highway
401
Liquidation of contract authority....
BA
0
Alaska Highway
401
BA
0
15,000
34
5,500
5,700
Off-systems roads programs
401
Liquidation of contract authority....
BA
275,000
(70,000)
58,056
165,000
(45,000)
100,400
(34,000)
135,600
Access highways to public recreation
areas on certain lakes
401
BA
0
471
8,650
2,900
6,000
Highways crossing federal projects
401
BA
0
50,000
1,986
20,000
23,120
16,000
17,960
Miscellaneous appropriations
401
Liquidation of contract authority....
BA
200
(474)
-1,887
Total Federal funds Federal
Highway Administration.
BA
0
369,615
118,325
Trust Funds
Federal-aid highways (trust fund): 401
Contract authority
BA
- 2 1 1 843
BA
3.538,239
(6,528,100)
Permanent
Liquidation of contract authority
0
Limitation on
expenses.
general
operating
Federal-aid highways (trust fund): 401
0
See footnotes at end of table.
49,351
242,381
J
5,972,946
(154,100)
BA
21,986
248,537
226,739
- 3,625.000
3,625.000
(7,250,000)
/
• (-7,250,000)
7,180,000
6,549,735
J
-7,180,000
(159,725)
(172,055)
D
(6,400)
6,842,778
(5,850,000)
'7,800,000
'(7,250,000)
J
7,190,130
376
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF TRANSPORTATION—Continued
FEDERAL HIGHWAY ADMINISTRATION—Con.
Trust Funds—Continued
Highway related safety grants-.
401
Contract authority, Permanent
BA
Liquidation of contract authority
0
Baltimore-Washington Parkway
401
Trust fund share of other highway
programs
401
Contract authority, Permanent
Liquidation of contract authority
Highway safety
development
research
Overseas highway
and
401
(20,320)
20,320
24,756
(20,000)
20,000
(23,000)
23,000
• / -4,200
BA
0
1,500
70
1,170
BA
17,333
3,333
(27,518)
8,524
25,000
(7,300)
32,288
(13,000)
35,300
9,000
7,571
9,000
10,400
"9,000
15,800
BA
0
BA
0
1,120
401
BA
0
12,500
1,830
17,000
6,700
17,000
12,200
Miscellaneous trust funds: Permanent
151
Contract authority, Permanent
Liquidation of contract authority
BA
3,881
15,552
14,915
BA
119
(911)
5,773
(592)
19,963
14,915
Miscellaneous trust funds
Demonstration projects
401
Right-of-way revolving fund (trust
revolving fund)
401
Liquidation of contract authority
BA
0
20,000
508
27,250
11,780
13,990
(35,000)
9,176
(20,000)
35,825
(30,000)
20,000
Total trust funds Federal
Highway Administration.
NATIONAL HIGHWAY TRAFFIC SAFETY
ADMINISTRATION
Federal Funds
General and special funds:
Traffic and highway safety
401
State and community highway safety
401
Liquidation of contract authority....
Total Federal funds National
Highway Traffic Safety
Administration.
See footnotes at end of table.
BA
0
3,390,729
6,026,718
6,964,669
6,687,861
7,840,915
7,322,255
BA
49,203
"56,295
0
42,256
52,168
"732
55,720
1,140
^524
1,715
2,100
M30
2,000
•4394
54,564
57,950
58,010
49,629
BA ..
0
(5,140)
1,399
BA
0
49,203
43,655
47,235
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
377
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF TRANSPORTATION—Continued
NATIONAL HIGHWAY TRAFFIC SAFETY
ADMINISTRATION—Continued
Trust
Funds
Trust fund share of highway safety
programs
401
Contract authority
Permanent
Liquidation of contract authority
BA
BA
401
Total trust funds National
Highway Traffic Safety
Administration.
26,220
D
580
BA
0
Gifts and donations
27,081
0
26,450
173,285
15,000
(83,360)
124,900
^-524
150,860
(112,000)
148,430
^-130
(166,000)
197,104
^-394
4
7
BA
0
42,081
124,904
177,136
148,307
199,735
196,710
BA
6,570
9,215
0
5,426
6,950
A
500
D
367
7,307
^400
19,100
*24,155
FEDERAL RAILROAD ADMINISTRATION
Federal Funds
General and special funds:
Office of the administrator
Railroad safety
401
401
BA
19,750
8,400
^100
°675
0
16,742
21,300
25,351
Railroad research and development
401
BA
0
52,900
57,274
53,600
63,800
55,670
52,950
Rail service assistance
401
BA
85,000
81,500
4
2,500
87,210
Authority to spend public debt
receipts.
BA
0
880
29,402
90,700
^1,500
89,750
^1,000
improvement
401
BA
0
200,000
82,492
400,000
190,000
455,000
410,000
Grants to National Railroad
Passenger Corporation
401
BA
600,700
660,000
0
730,062
646,500
"18,000
646,500
^18,000
Northeast corridor
program
660,000
Public enterprise funds:
Alaska Railroad revolving fund
401
BA
0
6,000
7,509
3,000
1,888
3,000
2,731
Railroad rehabilitation and
improvement financing funds..401
BA
0
120,000
12,044
200,000
135,000
278,920
150,920
Total Federal funds Federal
Railroad Administration.
BA
0
1,091,800
940,951
1,432,692
1,176,395
1,573,170
1,401,202
See footnotes at end of table.
378
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF TRANSPORTATION—Continued
URBAN MASS TRANSPORTATION
ADMINISTRATION
Federal Funds
General and special funds:
Urban mass transportation fund..401
Contract authority
BA
528,800
BA
- 73,800
Liquidation of contract authority....
(1,700,000)
0
BA
Urban mass transportation fund..401
Total Federal funds Urban
Mass Transportation
Administration.
1,708,910
291,900
' - 291,900
-91,900
-90,000
'91,900
(1,850,000)
(1,756,000)
'(-1,850,000)
2,250,000
1,975,000
'-2,250,000
574,000
0
BA
0
'2,865,000
'(1,850,000)
'2,250,000
455,000
1,708,910
484,000
1,975,000
2,865.000
2,250,000
-1,284
-1,236
-1,464
SAINT LAWRENCE SEAWAY DEVELOPMENT
CORPORATION
Federal Funds
Public enterprise funds:
Saint Lawrence Seaway Development
Corporation
403
Limitation on administrative
expenses.
0
(1,028)
(1,114)
"(65)
(1,280)
2.250
8,100
^636
D
213
7,862
^475
*24,420
-1,356
-2,800
3,000
BA
0
2,250
369
8,949
5,537
24,420
22,461
BA
0
4,869,532
5,547,450
5,348,963
6,515,489
8,051.139
7,209,084
RESEARCH AND SPECIAL PROGRAMS
DIRECTORATE
Federal Funds
General and special funds:
Research and special programs...407
BA
1,725
19,300
Intragovemmental funds:
Consolidated working fund,
transportation systems center..4O7
Total Federal funds Research
and Special Programs
Directorate.
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Proprietary receipts from the
public
400
BA1
0 J
-35,499
-35,863
-59,913
902
BA1
0 J
-735
-700
-700
4,833,298
5,511,216
5,312,400
6,478,926
7,990,526
7,148,471
Total Federal funds
See footnotes at end of table.
BA
0
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
379
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF TRANSPORTATION—Continued
SUMMARY—Continued
Trust funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the
public
BA1
151
0 I
403
BA1
0 /
902
BA1
4,467,167
7,005,239
8,261,910
7,930,306
9,377,000
8,662,021
-2,401
-13,729
-12,515
-275
-20
0 J
Total trust funds
Total Department
Transportation.
of
BA
0
4,464,746
7,002,818
8,247,906
7,916,302
9,364,485
8,649,506
BA
0
9,298,044
12,514,034
13,560,306
14,395,228
17,355,011
15,797,977
DEPARTMENT OF THE TREASURY
OFFICE OF THE SECRETARY
Federal Funds
General and special funds:
Salaries and expenses
803
BA
0
Investment
notes
in
fund
anticipation
401
Taxable municipal bond option
852
Presidential election campaign fund:
Permanent, indefinite
806
Miscellaneous permanent
appropriations: Permanent,
indefinite
803
Public enterprise funds:
Liquidation of Reconstruction
Finance Corporation
803
Intragpvemmental funds:
Working capital fund
803
Total Federal funds Office of
the Secretary.
BA
26,842
32,381
28,392
29,400
°914
31,387
120,000
J
-120,000
200,000
J
- 200,000
278,920
J
- 278,920
BA
0
BA
0
BA
0
0
0
31,754
^7,094,000
-^.OOO
36,640
38,400
8,212
18
16
-426
40,400
1,200
24
25
-403
25
25
-193
-238
-30
BA
0
63.500
35,956
68,738
30,979
7,166,806
131,786
BA
0
7
7
7
7
7
7
BA
5,973
7,493
4,200
7,500
D
150
8,144
7,776
1,570,000
1,698,824
1,400,000
1,572,694
*1,040,000
1,050,400
Trust Funds
Pershing Hall memorial
Permanent, indefinite
fund:
705
OFFICE OF REVENUE SHARING
Federal Funds
General and special funds:
Salaries and expenses
851
0
Antirecession
fund
financial
See footnotes at end of table.
assistance
852
BA
0
THE BUDGET FOR
380
FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF THE TREASURY—Continued
OFFICE OF REVENUE SHARING—Continued
Federal Funds—Continued
General and special funds:—Continued
Payments to State and local
BA
government fiscal assistance trust
fund
851
Permanent
BA
0
4,991,085
1,663,695
6,654,780
6,854,924
6,854,924
Total Federal funds Office of
Revenue Sharing.
BA
0
8,230,753
8,357,804
8,262,574
8,435,762
7,902,417
7,913,100
BA
4,991,085
6,854,924
6,854,924
BA
0
1,663,695
6,760,092
6,826,629
6,852,294
FEDERAL LAW ENFORCEMENT TRAINING
CENTER
Federal Funds
General and special funds:
Salaries and expenses
751 BA
9,936
12,000
"1,515
C
113
D
340
12,125
"1,484
15,423
17,840
7,136
Trust Funds
State and local government
assistance trust fund
Permanent
fiscal
851
0
Construction, Federal Law
Enforcement Training Center....751
Total Federal funds Federal
Law Enforcement Training
Center.
0
11,000
4,021
6,854,924
6,854,924
14,788
"31
BA
0
9^936
15,021
13,968
31,449
15,423
21,955
BUREAU OF GOVERNMENT FINANCIAL
OPERATIONS
Federal Funds
General and special funds:
Salaries and expenses
803 BA
145,669
146,511
"13,500
°2,826
151,170
"13,365
174,687
0
144,664
Special payment to recipients of
certain retirement and survivor
benefits
601
0
-451
New York City seasonal financing
fund, administrative expenses .852
Claims, judgments, and relief acts:
(Social services)
506
BA
0
1,250
626
See footnotes at end of table.
BA
0
1,150
1,200
'543,000
•/543,000
172,940
"135
1,150
1,238
381
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF THE TREASURY—Continued
BUREAU OF GOVERNMENT FINANCIAL
OPERATIONS—Continued
Federal Funds—Continued
General and special funds:—Continued
Claims, judgments, and relief acts:
—Continued.
(Other general government)
806
BA
137,904
Permanent, indefinite
BA
0
15,436
153,278
'127,000
80,000
80,132
'127,000
'2,000
145,000
145,000
'2,000
Total, Claims, judgments, and
relief acts.
BA
0
153,340
153,278
750,000
750,132
147,000
147,000
funds:
902
BA
0
7,206
7,689
7,691
7,691
7,841
7,841
Payment of Government losses in
shipment
803
BA
0
400
400
Eisenhower College grants
502
0
667
War,
503
0
3,700
2,509
803
0
11
10
BA
0
307,965
310,594
921,678
927,536
330,678
329,564
BA
0
19
18
18
19
18
18
BA
118,664
135,522
0
117,391
122,600
D
6,032
127,487
BA
359,190
384,700
431,350
0
BA
0
348,997
239,233
248,353
°20,557
403,552
267,000
267,000
431,722
282,000
282,000
0
BA
0
-3,995 ...
598,423
593,355
672,474
670,552
713,350
713,722
Interest on uninvested
Permanent, indefinite
Grants to Hoover Institution on
Revolution, and Peace
Public enterprise funds:
Check forgery insurance fund
Intragovemmental funds:
Fishermen's protective fund
376
Total Federal funds Bureau of
Government Financial
Operations.
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
806
500
410
0
10
1,059
BUREAU OF ALCOHOL, TOBACCO AND
FIREARMS
Federal Funds
General and special funds:
Salaries and expenses
751
UNITED STATES CUSTOMS SERVICE
Federal Funds
General and special funds:
Salaries and expenses
751
Miscellaneous permanent
appropriations: Permanent,
indefinite
852
Intragovemmental funds:
Consolidated working fund
803
Total Federal funds United
States Customs Service.
See footnotes at end of table.
260-000 O - 78 - 25
134,686
THE
BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF THE TREASURY—Continued
UNITED STATES CUSTOMS SERVICE—Con.
Trust Funds
Refunds, transfers and expenses,
BA
unclaimed, abandoned and seized
0
goods-. Permanent, indefinite
803
2,887
3,091
BUREAU OF ENGRAVING AND PRINTING
reoetol runos
Intragovernmental funds:
Bureau of Engraving and Printing
BA
fund
803
0
-3,735
BUREAU OF THE MINT
Federal Funds
General and special funds:
Salaries and expenses
803
Construction of mint facilities
803
4.000
4,000
4,000
4,000
5,000
BA
41,400
41,000
44.274
0
39,735
40,200
43,260
0
142
Coinage profit fund: Permanent,
indefinite
803
Total Federal funds Bureau of
the Mint.
BA
0
BA
0
3,245
1,888
44.645
41,765
3,200
3,200
44,200
43,400
3,000
3,000
47.274
46,260
BUREAU OF THE PUBLIC DEBT
reoeml runos
General and special funds:
Administering the public debt
803
BA
113.580
183.411
0
108,808
116,263
'15,512
C
44
°2,073
122,823
'15,512
51,000
'400
°2,763
'625
53,108
'398
'620
56,100
872,740
'10,800
"40,069
'19,261
909,571
'10,765
'19,166
964.900
938,500
'4,100
°50,312
'1,598
985,628
'4,084
'1,590
1,026,300
INTERNAL REVENUE SERVICE
Feoeml runos
General and special funds:
Salaries and expenses
803
Accounts, collection and taxpayer
service
803
Compliance
See footnotes at end of table.
803
BA
50,268
0
48,930
BA
849,634
0
857,207
BA
907,709
0
883,872
183,876
'1,305
55,876
'2
'1,300
'22,037
961,040
'35
'21,812
'7.246
1,022,195
'16
'7,221
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
383
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
DEPARTMENT OF THE TREASURY—Continued
INTERNAL REVENUE SERVICE—Continued
Federal Funds—Continued
General and special funds:—Continued
Refunding internal revenue
collections, interest-. Permanent,
indefinite
902
Fuel efficiency incentive and crude
oil tax programs:
(Energy conservation): Indefinite
272
(Public assistance and other
income supplements): Indefinite
604
Total, Fuel efficiency incentive
and crude oil tax programs.
Internal revenue collections for
Puerto Rico-. Permanent, indefinite
852
BA
0
318,048
318,048
323.000
323,000
328,000
328,000
BA
0
BA
0
'150,000
'150,000
'167,000
•'167,000
'500,000
'500,000
'1,333.000
'1,333,000
BA
317.000
317,000
168,000
168,000
1.833,000
1,833,000
176,000
176,000
37 .
2,800.168
2,288.458
2,792,930
2,265,183
4,414,888
4,406,497
0
BA
0
162,799
157,089
Public enterprise funds:
Federal tax lien revolving fund
Total Federal funds
Revenue Service.
803
Internal
0
BA
0
UNITED STATES SECRET SERVICE
Federal Funds
General and special funds:
Salaries and expenses
135.899
BA
0
3,394
3,394
121.424
123,358
123.000
'4,400
D
5,890
129,326
'4,388
6.000
6,000
139.290
139,714
0
-4,182
-2,550
-3,950
BA
0
41.899.720
41,899,720
48,600,000
48,600,000
55.400,000
55,400,000
BA
0
53.797,068
53,865,220
61.790.614
61,938,144
76.453,668
69,424,224
-20,000
-20,000
-800
-850
BA
118.030
0
119,964
benefits:
751
BA
0
Total Federal funds United
States Secret Service.
Contribution for annuity
Permanent, indefinite
751
COMPTROLLER OF THE CURRENCY
Trust Funds
Assessment funds
376
134,766
8,000
8,000
143,899
142,778
INTEREST ON THE PUBLIC DEBT
Feaerai runas
General and special funds:
Interest on the public
Permanent, indefinite
debt:
901
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
155
803
See footnotes at end of table.
BAl
0 J
BAl
0 J
-593
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
DEPARTMENT OF THE TREASURY—Continued
SUMMARY—Continued
Federal funds:—Continued
902
BA1
0 J
-1,500,191
Receipts from off-budget Federal
agencies
374
BA1
0 J
-142,700
902
BA\
0 J
the
050
Proprietary
public
receipts
from
-1,613,154
-1,818,684
-2,098,485
-2,716,369
-4,098,334
BA1
0 J
-417
-1,500
-2,000
150
BA1
0 J
-123,483
-204,656
-197,965
800
BA1
0 J
-90,304
-83,020
-61,137
902
BA1
0 J
-272,681
-419,587
-470,178
BA
49,568,214
56.731,528
69,784,520
0
49,636,366
56,879,058
62,755,076
Total Federal funds
Trust funds:
(As shown in detail above)
Interfund transactions
803
BA
6,657.693
6,858,949
6,858.949
0
6,759,026
6,828,105
6,852,369
BA1
-178,038
-164,700
-140,500
-6.657,170
-6,854,924
-6.854.924
49.390.699
49,560,184
56.570.853
56,687,539
69.648.045
62,612,021
0J
851
BA\
0 J
Total Department
Treasury.
of
the
BA
0
ENVIRONMENTAL PROTECTION AGENCY
Federal Funds
General and special funds:
Agency and regional management
304
Research and development:
(Energy supply)
See footnotes at end of table.
271
BA
72.294
75,033
*3,180
*20
75,000
84.085
0
72,675
BA
94,960
96,213
°249
^34,700
'114,965
0
95,180
121,000
^5,000
109,000
^16,500
82,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
385
BUDGET ACCOUNTS LISTING (in thousands of dol lars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
ENVIRONMENTAL PROTECTION AGENCY—Continued
Federal Funds—Continued
General and special funds:—Continued
Research and development:—Con.
(Pollution control and abatement)
304
Total, Research
development.
and
Abatement and control
304
BA
165,606
0
163,885
BA
0
175,979
'1,400
D
2,994
"209.163
"9,500
162,000
'900
"4,000
177,000
'500
"5,500
260.566
259,065
321,192
292,900
324.128
308,500
BA
386,501
424,146
'8,000
D
6,835
"617,969
0
(49,182)
435,884
BA
BA
57,244
0
BA
0
BA
1,980,000
"85,000
Liquidation of contract authority....
Enforcement
Buildings and facilities
Construction grants
304
304
304
Liquidation of contract authority....
0
461,000
'3,000
"9,000
471,000
'5,000
"46,000
73,432
2,470
"94.855
53,527
73,000
92,000
2,100
1,539
2,000
2.563
2,000
D
4.500.000
(3,800,000)
3,529,577
"4,500.000
(5,000,000)
4,130,000
"5,000
(1,400,000)
4,350,000
"310,000
Scientific activities overseas (Special
foreign currency program)
304
BA
0
5,000
4,950
4,000
3,000
4.000
5,000
Operations, research, and facilities
304
0
7,919
9,000
8,000
0
' -139
Public enterprise funds:
Revolving fund for certification and
other services
304
Intragovernmental funds:
Consolidated working fund
304
Total Federal funds
Environmental Protection
Agency.
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
304
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
300
See footnotes at end of table.
90
145
BA
0
2.763,705
4,365,087
5,503,603
5,063,045
5.627.600
5,679,500
BA
0
40
36
37
30
BA
0
2,763.705
4,365,087
5,503.603
5,063,045
5.627.600
5,679,500
-201
-208
-208
0
BA1
0 I
386
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
ENVIRONMENTAL PROTECTION AGENCY—Continued
SUMMARY
Continued
Federal funds:—Continued
304
902
Total Federal funds
BA1
0 J
-46
-46
-46
BA1
-29
-29
-29
0 I
BA
2,763.429
5.503,320
5.627,317
0
4,364,811
5,062,762
5,679,217
37
30
37
5.503.320
5,062,799
30
5.627.317
5,679,247
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
304
Total trust funds
Total Environmental Protection
Agency.
BA
0
40
36
BA1
0 J
0
BA
0
-40
^4
2.763.429
4,364,807
GENERAL SERVICES ADMINISTRATION
REAL PROPERTY ACTIVITIES
Federal Fund*
Gonoral and special funds:
Disposal of surplus real and related
personal property, operating
expenses
804
Expenses, disposal of surplus real
and related personal property:
Permanent, indefinite
804
Real property miscellaneous
accounts:
(Federal litigative and judicial
activities)
752
BA
0
6.442
6,467
7,935
7,935
7.549
7,549
BA
0
738
681
1.000
1,000
1.000
1,000
0
1603
313
0
1,046
2,322
0
2,649
2,635
804 BA
0
125.000
-121,642
-75.000
1,208
^2,500
-4,898
"10,200
Construction services fund
804 0
Consolidated working fund, real
0
property activities
804
Total Federal funds Real
BA
Property Activities.
0
-9,567
-2,022
-2,322
-1,054
-1,000
-400
132.180
-122,466
-66.065
12,256
8,549
11,129
(General property and records
management)
804
Total, Real property
miscellaneous accounts.
Introgovemmental funds:
Federal buildings fund
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
GENERAL SERVICES ADMINISTRATION—Continued
PERSONAL PROPERTY ACTIVITIES
Federal Funds
General and special funds:
Federal Supply Service, operating
expenses
804
BA
157,275
0
157,345
-54,484
161,064
C
1,442
°5,638
168,180
167,468
167,468
Intragovernmental funds:
General supply fund
804
0
Working capital fund
804
0
Total Federal funds Personal
Property Activities.
RECORDS ACTIVITIES
Federal Funds
General and special funds:
National Archives and Records
Service, operating expenses 804
Records declassification
804
-248
-170
BA
0
157,275
102,613
168,144
168,010
167,468
167,468
BA
66,269
73.093
0
63,921
67,134
2,340
69,474
1,565
BA
73,093
1,352
1,470
°95
1,565
Total Federal funds Records
Activities.
BA
0
67,739
65,273
71,039
71,039
74,658
74,658
Trust Funds
National archives gift fund: Permanent,
indefinite
804
BA
0
271
154
120
150
130
150
National archives trust fund
0
345
-100
-100
BA
0
271
499
120
50
130
50
AUTOMATED DATA AND TELECOMMUNICATIONS
ACTIVITIES
Federal Funds
General and special funds:
Automated Data and
BA
Telecommunications Service,
operating expenses
804
0
Intragovernmental funds:
Federal telecommunications fund.804
BA
0
7,831
8,673
7,561
8,024
D
466
8,476
8,673
20,000
-6,178
-2,941
1,717
0
11,275
11,159
856
BA
0
27,831
12,658
8.490
16,694
8,673
11,246
276
87
0
Total trust
Activities.
funds
804
Records
Automatic data processing fund ..804
Total Federal funds Automated
Data and
Telecommunications
Activities.
PROPERTY MANAGEMENT AND DISPOSAL
ACTIVITIES
Federal Funds
General and special funds:
Rare silver dollar program:
(Defense-related activities)
054
0
See footnotes at end of table.
1,470
D
1,565
THE BUDGET FOR FISCAL YEAR 1979
388
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
GENERAL SERVICES ADMINISTRATION—Continued
PROPERTY MANAGEMENT AND DISPOSAL
ACTIVITIES—Continued
Federal Funds—Continued
General and special funds:—Continued
Rare silver dollar program:—Con.
(General property and records
management)
804
0
86
2,032
315
0
362
2,119
315
Strategic and critical materials....054
0
Total Federal funds Property
Management and Disposal
Activities.
0
-17
345
2,119
315
Total, Rare
program.
silver
dollar
PREPAREDNESS ACTIVITIES
Federal Funds
General and special funds:
Federal Preparedness Agency,
salaries and expenses
054
BA
17.320
17.321
Expenses, Defense Production Act
054
State and local preparedness
BA
0
054
23
loan
054
-11
William Langer Jewel bearing plant
revolving fund
054
-172
38.800
^70,500
C
294
"1,108
37,885
^50,500
1,300
1,300
95
213.345
194,319
^20,000
4,374
4,374
Public enterprise funds:
Defense Production Act,
guarantee activities
Total Federal funds
Preparedness Activities.
-70
BA
0
17.320
17,161
112,002
89,710
217,719
218,693
BA
8.861
0
BA
0
BA
2,641
390
12.915
°739
13,317
2.818
°137
2,939
617
14.476
8,428
2.814
0
339
617
^54
771
BA
0
BA
3.000
2,160
75.215
0
69,635
GENERAL ACTIVITIES
Federal Funds
General and special funds:
General management and agency
operations, salaries and expenses
804
Indian trust accounting
Allowances and office
former Presidents
806
staff
for
802
Expenses, presidential transition..802
Administrative and staff support
services, salaries and expenses
804
See footnotes at end of table.
196 ..
79.425
°4,257
83,025
14,207
2.658
2,635
771
91.390
90,724
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
389
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1978
estimate
1977
actual
1979
estimate
GENERAL SERVICES ADMINISTRATION—Continued
GENERAL ACTIVITIES—Continued
Federal Funds—Continued
General and special funds:—Continued
376
BA
1,092
0
Refunds under Renegotiation Act.902
BA
1,010
1,000
Consumer information center
0
94
4,700
"31
4,812
'1,000
24
1,186
1,191
-M49
804
4
Virgin Islands Corporation liquidation
fund
804
-789
-699
-593
BA
0
92,372
83,524
106,693
104,836
110,481
109,384
BA
0
494,717
159,108
400,303
464,664
587,548
592,893
-131,200
-242,200
-44,300
-44,500
-700
-500
Miscellaneous appropriations
Public enterprise funds:
ntal funds:
Administrative operations fund
Total Federal funds
activities.
804
General
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
054
Proprietary
public
receipts
from
0
BA}
0J
-990 ....
902
BA1
0 J
-10 ....
the
054
BA1
0 I
-148,413
800
BA1
0 J
-40,353
902
BA1
0 J
-943
Total Federal funds
Trust funds:
(As shown in detail above)..
Total General Services
Administration.
BA
0
304,008
-31,601
224,103
288,464
300,348
305,693
BA
0
BA
0
271
499
304,279
-31,102
120
50
224,223
288,514
130
50
300,478
305,743
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
Federal Funds
General and special funds:
Research and development:
(Space flight)
253
(Space science, applications, and
technology)
254
(Supporting space activities) ...255
See footnotes at end of table.
BA
0
BA
0
BA
0
1,736,700
1,817,689
674,625
717,540
255,000
264,262
1,751,500
1,762,100
753.800
716,700
278,300
273,100
"1,827,700
1,819,700
"907,900
841,100
"305.400
299,400
3QQ
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION—Continued
Federal Funds—Continued
General and special funds:—Continued
Research and development:—Con.
(Air transportation)
402
BA
0
190.100
181,172
228.000
208,700
"264,100
243,600
BA
0
2.856.425
2,980,663
3.011.600
2,960,600
3.305.100
3,203,800
253
BA
0
30.695
56,550
64.880
48,400
"31,070
56,300
(Space science, applications, and
technolgoy)
254
BA
0
8.800
3,671
9.510
10,000
8,200
(Supporting space activities) ...255
BA
0
43.645
36,947
49.550
41,400
"44.900
47,800
(Air transportation)
402
BA
0
34,950
7,802
38.400
32,700
"76,530
41,700
Total, Construction of facilities.
BA
0
118.090
104,970
162,340
132,500
152.500
154,000
BA
370,553
361.810
"19,810
381,450
"388,400
277,150
D
15,170
291,670
"301.800
39.380
°2,150
41,820
"42.600
"181.200
Total, Research
development.
and
Construction of facilities:
(Space flight)
Research and program management:
(Space flight)
253
(Space science, applications, and
technology)
254
(Supporting space activities) ...255
0
377,470
BA
280.467
0
284,840
BA
0
(Air transportation)
402
42,043
42,500
0
155,325
Total, Research and program
management.
BA
0
844.575
859,678
890.200
888,500
914.000
912,300
Total Federal funds National
Aeronautics and Space
Administration.
BA
0
3.819.090
3,945,311
4.064.140
3,981,600
4.371.600
4,270,100
BA
0
1,547
1,357
15
2,045
BA
0
3.819.090
3,945,311
4,064.140
3,981,600
4.371.600
4,270,100
BA1
0 J
-1,109
-1,300
-1,300
BA1
0 J
-198
4,062,840
3,980,300
4.370,300
4,268,800
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
250
902
Total Federal funds
See footnotes at end of table.
BA
0
152.545
301,000
165.660
"9,070
173,560
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
255
BA
41.010
388,200
3.817,783
3,944,004
180,600
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
391
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION—Continued
SUMMARY—Continued
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
255
BA
0
1,547
1,357
15
2,045
BA1
0 J
-1,547
-15
Total trust funds
0
Total National Aeronautics and
Space Administration.
BA
0
-190
3,817,783
3,943,814
2,030 .
4,062,840
3,982,330
4,370,300
4,268,800
VETERANS ADMINISTRATION
Federal Funds
General and special funds:
Compensation and pensions:
(Veterans
service-connected
compensation)
701
(Veterans
non-service-connected
pension)
701
(Other veterans
programs)
income security
701
Total, compensations
pensions
Readjustment benefits
and
5,710.981
5,789,259
"361,647
5,721,850
5,790,085
"331,547
3,107,581
3,155.589
"127.200
3,113,495
3,156,038
"113,100
BA
163.938
0
164,251
171,952
"753
171,977
"753
9,116,800
"489,600
BA
BA
BA
8,982,500
0
8,999,596
9,118,100
"445,400
BA
3.983,900
2,648.025
0
3,700,004
3,101,900
701
702
2.465
2,951
4.721.686
"4,288
'25,000
D
\ 73,963
Veterans insurance and indemnities
701
BA
0
7,000
7,922
Medical care
BA
4,373,807
0
4,290,617
4,900,214
"4,061
BA
104,533
0
104,460
107,000
D
4,853
111,573
703
Medical and prosthetic research ..703
See footnotes at end of table.
6,167.534
'309.900
6,144,801
"30,100
•'284,060
3.232.400
'111.000
3,220,486
"14,100
'111,000
177.366
176,713
9.577.300
'420.900
9,542,000
"44,200
'395,060
2.119.000
'-100.000
2,708,500
'-100,000
5.750
5,775
5.279.699
'-142.127
5,276,304
"227
'-142,127
112.667
112,662
THE BUDGET FOR FISCAL YEAR 1979
392
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1978
estimate
1977
actual
1979
estimate
VETERANS ADMINISTRATION—Continued
Federal Funds—Continued
General and special funds:—Continued
Medical administration and
miscellaneous operating expenses
703
General operating expenses
705
BA
39.941
0
BA
38,668
525,633
42.000
D
1.316
43,239
550.000
'8.600
c
600
"25,300
0
510,264
573,365
'8,345
393.689
198,786
94,106
1R988
47.855
47,932
622.074
'- 1,495
621,819
'255
'-1,495
295,855
301,767
121,147
Construction, major projects
703
BA
0
Construction, minor projects
703
BA
405.681
168,402
92.791
0
BA
65,438
10.000
0
7,828
BA
0
BA
2.100
2,045
45.045
0
31,109
10,000
"5.000
11,407
"2,500
1.700
1,718
45.611
'21.589
"3.847
48,155
0
0
0
0
660
-138.723
1,114
-1,509
54,000
-75,000
850
3,363
27,000
-73,000
-1,857
Veterans reopened insurance fund
701
0
-27,227
-25,872
-24,733
Education loan fund
BA .
0
0
13,320
64
17.200
70,700
10
74,300
74,400
10
-150
-150
Grants for construction of state
extended care facilities
703
Grants to the Republic
Philippines
Assistance for health
training institutions
of the
703
manpower
703
93,980
5.000
12,000
"1,000
296
75,000
51,890
"1,405
Public enterprise funds:
Loan guaranty revolving fund
704
Direct loan revolving fund
704
Canteen service revolving fund ....705
Service-disabled veterans insurance
fund
701
Vocational
fund
rehabilitation
702
revolving
702
Special therapeutic and
rehabilitation activities fund....703
Intragovernmental funds:
Supply fund: Indefinite
705
0
BA
o0
Total Federal funds Veterans
Administration.
BA
0
Trust Funds
Post-Vietnam era veterans education
account: Permanent, indefinite 702
See footnotes at end of table.
ooo
705
Consolidated working fund
-76
7,820
297
18.572.931
17,782,093
3.321
20.000
10 000
18.535.366
18,724,603
18,512,925
18,975,120
30.792
459
55,189
2,603
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
VETERANS ADMINISTRATION—Continued
Trust Funds—Continued
General post fund, national homes:
Permanent, indefinite
705
BA
0
5,497
4,375
6,100
5,000
6,400
5,700
National service life insurance fund:
Permanent, indefinite
701
BA
0
912,821
697,602
971.900
700,000
963,800
750,000
United States government life insurance
fund: Permanent, indefinite
701
BA
0
37,402
71,105
37,983
63,654
36.165
69,068
Veterans special life insurance fund
701
0
-46,016
-55,238
-37,540
BA
0
959,041
727,066
1,046,775
713,875
1,061.554
789,831
BA
0
18.572,931
17,782,093
18,535,366
18,724,603
18.512,925
18,975,120
BA1
0 J
-662
-2,583
-2,583
BA1
0 J
-17
-17
-17
BA
0
18,572,252
17,781,414
18,532,766
18,722,003
18.510,325
18,972,520
BA
0
959.041
727,066
1,046,775
713,875
1,061.554
789,831
BA1
0 J
-483,661
-505,233
-466,928
BA1
-3,321
-30,690
-49,789
472,059
240,084
510,852
177,952
544,837
273,114
Total trust funds
Administration.
Veterans
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
700
902
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
701
702
0 I
Total trust funds
BA
0
Interfund transactions
701
BA1
0 J
702
BA1
0 J
Total Veterans Administration....
BA
0
- 2,147
19,042,164
18,019,351
- 1,934
- 1,832
-102
-5,400
19.041.582
18,897,919
19,047.930
19,238,402
OTHER INDEPENDENT AGENCIES
ACTION
Federal Funds
General and special funds:
Operating expenses, international
programs (Foreign economic and
financial assistance)
151
See footnotes at end of table.
BA
80,000
0
76,726
82,900
3,644
D
1,069
83,513
*3,097
B
95,135
92,682
*547
THE
394
BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
ACTION—Continued
Federal Funds—Continued
General and special funds:—Continued
Operating expenses, domestic
programs
506
BA
109.110
117,260
^1,400
D
1,011
130.986
0
109,215
116,365
'1,054
128,081
'346
BA
0
174
277
280
224
245
245
(As shown in detail above)
BA
0
189,110
185,941
Deductions for offsetting receipts-.
Proprietary receipts from the
public
150
Total Federal funds
BA1
0 J
BA
0
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
151
Summary
Federal funds:
207.284
204,029
226.121
221,656
-50
-50
189.270
207.234
226.071
186,101
203,979
221,606
160
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
151
Total trust funds
Total ACTION
BA
0
174
277
280
224
245
245
BA1
0 J
BA
0
BA
-81
-195
-160
93
196
189,363
85
29
207,319
85
85
226,156
0
186,297
204,008
221,691
ADMINISTRATIVE CONFERENCE OF THE UNITED
STATES
Federal Funds
General and special funds:
Salaries and expenses
751
BA
880
914
0
862
°21
919
*1,062
1,046
ADVISORY COMMITTEE ON FEDERAL PAY
Federal Funds
General and special funds:
Salaries and expenses
805
BA
215
220
232
0
126
218
230
BA
877
0
439
1.080
°61
1,490
ADVISORY COUNCIL ON HISTORIC
PRESERVATION
Federal Funds
General and special funds:
Salaries and expenses
See footnotes at end of table.
303
1,553
1,481
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
1978
1979
actual
estimate
estimate
OTHER INDEPENDENT AGENCIES—Continued
AMERICAN BATTLE MONUMENTS COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
705
Trust Funds
Permanent, indefinite
705
Summary
Federal funds*
(As shown in detail above)
Contributions:
Deductions for offsetting receipts:
Proprietary receipts from the
public
700
Total Federal funds
Trust funds:
(As shown in detail above)
Total American Battle
Monuments Commission.
BA
0
5,824
6,086
6,463
6,368
6,240
5,982
BA
0
29
84
25
25
28
31
BA
0
5,824
6,086
6,463
6,368
6,240
5,982
-1
-3
-3
BA
0
5,823
6,085
6,460
6,365
6^37
5,979
BA
0
29
84
25
25
28
31
BA
0
5,852
6,169
6,485
6,390
6,265
6,010
12,420
13,600
^2,570
°350
13,269
^1,570
*16,395
65,900
"10,468
63,015
"10,468
"85.180
35,100
35,100
43,500
43,500
BA1
0 J
ARMS CONTROL AND DISARMAMENT AGENCY
reaetol runos
General and special funds:
Arms control and disarmament
BA
activities
153
0
BOARD FOR INTERNATIONAL BROADCASTING
reaeral runos
General and special funds:
Grants and expenses
154
BA
0
11,863
56.735
57,837
_______
15,470
^1,000
78,597
CABINET COMMITTEE ON OPPORTUNITIES FOR
SPANISH SPEAKING PEOPLE
reaemi runos
General and special funds:
Salaries and expenses
506
CENTRAL INTELLIGENCE AGENCY
Federal Funds
General and special funds:
Payment to the Central Intelligence
Agency retirement and disability
fund
054
See footnotes at end of table.
0
BA
0
4
28,300
28,300
THE BUDGET FOR FISCAL YEAR 1979
396
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
CIVIL AERONAUTICS BOARD
Federal Funds
General and special funds:
Salaries and expenses
402
BA
22,646
23.367
'700
1,240
23,803
'692
64,260
9,940
(8,250)
'(9,940)
72,872
'3,756
63,157
'6.184
99,507
101,123
-126
95.942
96,160
-131
27,042
D
23,043
Payments to air carriers
402
Contract authority. Permanent
Liquidation of contract authority....
BA
BA
73,911
8,250
(6,096)
79,787
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the
public
400
902
Total Civil Aeronautics Board.
CIVIL SERVICE COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
805
Limitation
funds.
BA}
0 J
BA1
0 I
104.807
102,830
-121
-2
BA "
0
104,684
102,707
99.378
100,994
95,811
96,029
BA
107,095
111.066
'447
°5.780
120.815
100,347
116,350
'447
(26,475)
(30,065)
(l,290)
506.467
506.617
1.737,070
'428.758
5.231.332
6.968,402
'428,758
1.787
1,787
20.000
18,000
payable under trust
Government payment for annuitants,
employees health benefits
551
BA
0
Payment to civil service retirement
and disability fund
805
Permanent, indefinite
BA
451,844
437,034
3.107.598
BA
0
4.190.795
7,298.393
Federal Labor Relations
Salaries and expenses
BA
0
806
BA
0
1.637
1,559
15.000
12,561
805
0
-1,807
Council:
805
Intergovernmental personnel
assistance
Intragovemmental funds:
Revolving fund
Trust Funds
Civil service retirement and disability
fund: Indefinite
602
Permanent, indefinite
See footnotes at end of table.
26,811
'8
68.900
1,132
'1.000
(32,275)
606,035
606.035
2,105.283
6,249,340
8,354,623
1.787
1,787
20,000
18,000
-325
'428.758
BA
BA
0
D
'1,000
118,270
16.479.980
9,563,523
17.247.438
10,896,017
19.242.348
12,163,901
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
397
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT A G E N C I E S — C o n t i n u e d
CIVIL SERVICE COMMISSION—Continued
Trust Funds—Continued
Employees health benefits fund
551
0
-71,935
-109,816
-43,266
602
0
-397,717
-450,661
-485,211
Retired employees health benefits fund
551
0
4,502
-118
497
7,873,969
7,848,087
8,042,707
8,041,493
9,104,260
9,099,390
BA1
0 I
-1,228
-1,350
-1,500
BA1
0 J
-1
7,872,740
7,846,858
8,041,357
8,040,143
9,102,760
9,097,890
16,479,980
9,098,373
17,676,196
10,335,422
19,242,348
11,635,921
-13,612
-100
-75
16,466,368
9,084,761
17,676,096
10,335,322
19,242,273
11,635,846
Employees life insurance fund
Summary
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the
public
800
902
Total Federal funds
BA
0
Trust funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Intrafund transactions
602
Total trust funds
Interfund transactions
BA1
0 J
BA
0
602
BA1
0 J
-13,105
-29,300
-30,765
805
BA1 -7,298,393
0 J
-7,397,160
-8,354,623
BA
0
17,027,610
9,620,121
18,290,993
10,949,005
19,959,645
12,348,348
BA
221
264
0
170
233
°11
244
*10.752
9,476
10,480
D
446
10,809
BA
316
344
441
0
280
397
436
Total Civil Service Commission..
COMMISSION OF FINE ARTS
Federal Funds
General and special funds:
Salaries and expenses
451
264
COMMISSION ON CIVIL RIGHTS
Federal Funds
General and special funds:
Salaries and expenses
751
BA
0
10,078
10,666
COMMITTEE FOR PURCHASE FROM THE BLIND
AND OTHER SEVERELY HANDICAPPED
Federal Funds
General and special funds:
Salaries and expenses
See footnotes at end of table.
260-000 O - 78 - 26
505
398
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
COMMODITY FUTURES TRADING COMMISSION
Federal Funds
General and special funds:
Commodity Futures Trading
BA
Commission
376
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
370
Total Commodity Futures
Trading Commission.
13,085
13.196
'971
D
633
13,741
'921
15.804
0
13,489
BA
0
13.085
13,489
14.800
14,662
15.804
15,797
-5
-5
-5
13.080
13,484
14.795
14,657
15.799
15,792
596,353
D
1.700
613,216
"538,000
BAl
0 J
BA
0
15,747
'50
COMMUNITY SERVICES ADMINISTRATION
Federal Funds
General and special funds:
Community services program:
(Training and employment).. ....504
(Social services)
506
(Public assistance and
income supplements)
Total, Community
program.
other
604
services
Trust Funds
Gifts and contributions
506
0
580
BA
631.169
0
528,943
BA
163.384
0
110,000
"200,000
53,384
BA
0
794.553
639,523
798.053
666,600
0
5
....
558,100
..
538.000
558,100
..
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
500
902
Total Federal funds..
See footnotes at end of table.
798.053
666,600
538.000
558,100
BAl
0 J
-6
-7
-7
BAl
O J
-191
-193
-193
794.356
639,326
797.853
666,400
537.800
557,900
794.356
639,326
797.853
666,405
BA
0
Trust funds:
(As shown in detail above)..
Total Community
Administration.
794.553
639,523
BA
0
Services
0
BA
0
5
...
537.800
557,900
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
CONSUMER PRODUCT SAFETY COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
554
BA
39,759
0
39,872
39,144
1,467
42,380
*41,463
BA
0
39,759
39,872
40,611
42,380
41,463
39,720
-5
-5
-5
39,754
39,867
40,606
42,375
41,458
39,715
BA
103,000
107,150
M 2,050
BA
0
103,000
107,150
* 12,050
of
852
BA
0
279.357
279,357
278,707
278,707
"327.300
327,300
852
BA
0
101.292
100,000
92,000
114,200
129,790
120,500
BA
0
832
832
832
832
832
832
BA
0
20,000
20,000
20,000
20,000
BA
0
401,481
400,189
391,539
413,739
457,922
448,632
BA1
0 J
-84,472
-43,979
-22,359
BA
0
317,009
315,717
347,560
369,760
435,563
426,273
-5,014
1,590
D
39,720
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
550
Total Consumer Product Safety
Commission.
BA1
0 J
BA
0
CORPORATION FOR PUBUC BROADCASTING
General and special funds:
Public broadcasting fund
503
Permanent
120,200
120,200
DISTRICT OF COLUMBIA
Federal Funds
General and special funds:
Federal payment
Columbia
to
District
Loans for capital outlay
Loans to stadium sinking fund: 852
Authority to spend public debt
receipts, Permanent, indefinite.
Repayable advances to the District
of Columbia general fund:
Permanent, indefinite
852
Summary
Federal funds*
(As shown in "detail above)
Deductions for offsetting receipts-.
Proprietary receipts from the
public
852
Total District of Columbia
EMERGENCY LOAN GUARANTEE BOARD
Federal Funds
Public enterprise funds:
Emergency loan guarantee fund...376
See footnotes at end of table.
0
400
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
751
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
804
Proprietary
public
receipts
from
the
750
BA
70,513
0
71,855
BA
0
70.513
71,855
110,000
91,000
87,691
110,000
108,268
104,500
"3,768
BAl
0 J
-92
BAl
0 J
-34
-34
-34
70,387
71,729
90,966
87,657
109,966
108,234
OOO
Total Equal Employment
Opportunity Commission.
77,050
M 3,950
77,509
"10,182
EXPORT-IMPORT BANK OF THE UNITED STATES
Public enterprise funds:
Export-Import Bank of the United
States:
155
Authority to spend public debt
receipts, Permanent, indefinite.
Limitation on administrative
expenses.
Limitation on program activity
BA
0
339,977
(12,306)
(6,334,443)
196,000
(12,695)
D
(495)
(5,458,207)
659,665
403,776
(13,515)
(5,347,345)
FARM CREDIT ADMINISTRATION
Federal Funds
Public enterprise funds:
Revolving fund for administrative
expenses
351
Limitation on administrative
expenses.
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
350
Total Farm Credit
Administration.
0
-560
(8,429)
0
144
(9,509)
°(433)
-560
144
-2
-2
-2
142
-2
-2
61,400
3,068
65,936
67,035
BAl
0 J
BA
0
-560
FEDERAL COMMUNICATIONS COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
See footnotes at end of table.
376
BA
56,911
0
55,791
D
66,309
401
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1979
estimate
1978
estimate
OTHER INDEPENDENT AGENCIES—Continued
FEDERAL COMMUNICATIONS COMMISSION
—Continued
Summary
Federal funds:
(As shown in detail above)
56,911
55,791
64,468
65,936
67.035
66,309
-14
-13
-13
56.897
55,777
64,455
65,923
67.022
66,296
-851,645
-379,002
-945,000
BA
6.180
8.224
0
6,625
7.300
D
310
8,152
1,071
538
459
BA
Deductions for offsetting receipts-.
Proprietary receipts from the
public
370
Total Federal Communications
Commission.
BA1
0 I
BA "
0
FEDERAL DEPOSIT INSURANCE CORPORATION
Trust Funds
Federal Deposit Insurance Corporation
371
0
FEDERAL ELECTION COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
806
8,457
FEDERAL HOME LOAN BANK BOARD
Federal Funds
General and special funds:
Interest adjustment payments
371
Public enterprise funds:
Federal Home Loan Bank Board
revolving fund:
371
Authority to spend public debt
receipts.
Limitation on administrative
expenses.
Limitation on nonadministrative
expenses.
Federal Savings and Loan Insurance
Corporation fund
371
Limitation on administrative
expenses.
Total Federal Home Loan Bank
Board.
BA
0
-1490 915
(17,100)
(24,520)
"-10.055
888
(16,730)
°(862)
(26,230)
(18,258)
(30,290)
D
0
-423,511
(875)
RA
0
-1,913,355
(l,520)
-361,755
^250
(870)
-467,000
-10.055
-360,079
-466,541
(960)
FEDERAL MARITIME COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
403
BA
8.640
0
BA
10.530
8,479
9.424
D
470
9,825
8.640
8,479
9.894
9,825
10.530
10,455
10,455
Summary
Federal funds:
(As shown in detail above)..
0
See footnotes at end of table.
402
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1979
estimate
1978
estimate
OTHER INDEPENDENT AGENCIES—Continued
FEDERAL MARITIME COMMISSION—Continued
Summary—Continued
Federal funds:—Continued
Deductions for offsetting receipts-.
Proprietary receipts from the
public
400
Total Federal Maritime
Commission.
-40
-40
8.610
9,854
10,490
8,449
9,785
10,415
BA
21,177
21.932
22,686
0
19,571
21,320
21,559
BA
0
21,177
19,571
22,465
21,320
22,686
21,559
BA1
-30
0 I
BA
0
FEDERAL MEDIATION AND CONCILIATION
SERVICE
Federal Funds
General and special funds:
Salaries and expenses
505
Summary
Federal funds:
(As shown in detail above)..
Deductions for offsetting receipts:
Proprietary receipts from the
public
500
Total Federal Mediation and
Conciliation Service.
BAl
0J
BA
0
-1
21,176
19,570
-1
-1
22,464
21,319
22,685
21,558
903
1,036
810
1,025
4.776
59,500
fl
418
C
35
"2,615
61,153
B
390
"66,485
62,568
61,543
66.485
64,475
FEDERAL MINE SAFETY AND HEALTH REVIEW
COMMISSION
Federal Funds
^90OCMnCH O O O SD6CICII TVff^CfSl
Salaries and expenses
554
BA
0
4,500
'11
FEDERAL TRADE COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
376
BA
54,680
0
51,536
BA
54,680
51,536
64,447
*28
Summary
Federal funds:
(As shown in detail above)..
0
Deductions for offsetting receipts:
Proprietary receipts from the
public
400
Total Federal Trade Commission
BA1
oBA/
0
See footnotes at end of table.
166
54,846
51,702
-39
62.529
61,504
-35
66.446
64,436
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
403
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1979
estimate
1978
estimate
1977
actual
Account and functional code
OTHER INDEPENDENT AGENCIES—Continued
FOREIGN CLAIMS SETTLEMENT COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
153
Payment of Vietnam prisoner of war
claims
153
Total Foreign Claims Settlement
Commission.
BA
0
0
BA
0
742
732
920
800
43
450
742
775
920
1,250
1.015
930
-1,716
-1,583
1.015
930
HARRY S TRUMAN SCHOLARSHIP FOUNDATION
General and special funds:
Payment to the Harry S Truman
memorial scholarship trust fund
502
Trust Funds
Harry S Truman memorial scholarship
trust fund
502
BA
0
0
20.000
20,000
-21,108
Summary
Federal funds:
(As shown in detail above)
BA
0
Trust funds:
(As shown in detail above)
0
Total Harry S Truman
Scholarship Foundation.
20.000
20,000
...
-21,108
-1,716
-1,583
BA
0
20.000
-1,108
-1,716
-1,583
BA
0
2,180
555
-1
1
BA
0
65
2,180
555
BA
0
-4,672
HISTORICAL AND MEMORIAL AGENCIES
AntBfiCBn Rsvolution BiCBntonnisI
Federal
Funds
General and special funds:
Salaries and expenses
Trust Funds
Gifts and donations
806
806
65
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
800
902
Total Federal funds
BA1
0 I
BA
0
-4.612
-2,497
BA
0
-4.612
-2,498
Trust funds:
(As shown in detail above)
Total American Revolution
Bicentennial Administration.
-5
555
-1
556
T H EB
404
^ D G E £ T FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
HISTORICAL AND MEMORIAL AGENCIES—Con.
Other Historical and Memorial Agencies
Federal Funds
General and special funds:
Franklin Delano Roosevelt Memorial
Commission: Salaries and
expenses
806
Miscellaneous expired appropriations
BA
0
29
14
25
35
0
20
35
6
806
Trust Funds
Civil War Centennial Commission:
Donations
806
Summary
Federal funds:
(As shown in detail above)
BA
BA
0
29
14
25
41
20
35
Trust funds:
0
(As shown in detail above)
1
and
BA
0
29
15
25
41
20
35
Total Federal funds Historical
and Memorial Agencies.
BA
0
-4,583
-2,483
25
596
20
35
BA
1,560
1,569
1,500
°70
1,567
67
1,431
1 600
1,659
Total Other Historical
Memorial Agencies.
Total trust funds Historical and
Memorial Agencies.
INDIAN CLAIMS COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
752
INTERGOVERNMENTAL AGENCIES
Advisory Commission on Intergovernmental
Relations
Federal Funds
General and special funds:
Salaries and expenses
806
BA
D
54
Intragovemmental funds:
Consolidated working fund
Contributions:
806
Trust Funds
Permanent,
indefinite
806
0
1,339
1,614
0
160
-26
BA
0
31
12
60
80
100
100
BA
0
1,431
1,499
1,654
1,588
1,659
1,659
1,659
Summary
Federal funds:
(As shown in detail above)
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
INTERGOVERNMENTAL AGENCIES—Continued
Advisory Commission on Intergovernmental
Relations—Continued
Summary—Continued
Trust funds:
(As shown in detail above)
BA
0
31
12
60
80
100
100
BA
0
1,462
1,511
1,714
1,668
1,759
1,759
Appalachian Regional Commission
Federal Funds
General and special funds:
Salaries and expenses
452
BA
1,925
2,075
°8
2,083
2,220
Total Advisory Commission on
Intergovernmental Relations.
Intragovernmental funds:
Consolidated working fund
452
Trust Funds
Miscellaneous trust funds: Permanent,
indefinite
452
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Proprietary receipts from the
public
452
0
1,917
0
-412
BA
0
3,781
3,821
4,110
4,366
4,270
4,570
BA
0
1,925
1,505
2,083
2,083
2.220
2,220
BA
0
3,781
3,821
4,110
4,366
4,270
4,570
BA)
0 J
-1,573
BA
2,208
2,248
2,410
2,666
2,490
2,790
- 2,208
- 2,410
- 2,490
BA
0
1,925
1,545
2,083
2,339
2,220
2,520
Delaware River Basin Commission
Federal Funds
General and special funds:
Salaries and expenses
301
BA
91
102
Total trust funds
0
Interfund transactions
452
BA1
-1,700
2,220
-1,780
0 J
Total Appalachian
Commission.
Regional
84
87
11
98
BA
0
198
171
232
179
245
245
BA
0
289
255
330
277
347
347
0
Contribution to Delaware River Basin
Commission
301
Total Delaware
Commission.
See footnotes at end of table.
River
Basin
D
102
400
THE BUDGET FOR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
INTERGOVERNMENTAL AGENCIES—Continued
Interstate Commission on the Potomac River
Basin
Federal Funds
General and special funds:
Contribution to Interstate
BA
Commission on the Potomac River
0
Basin
304
Susquehanna River Basin Commission
Federal Funds
General and special funds:
Salaries and expenses
301
BA
52
52
53
53
102
86
88
11
99
Contribution to Susquehanna River
Basin Commission
301
BA
0
150
150
200
200
200
200
Total Susquehanna River Basin
Commission.
BA
0
241
236
299
299
302
302
Washington Metropolitan Area Transit
Authority
reoeral runos
General and special funds:
Federal contribution
401
BA
Permanent
BA
0
38,417
90.059
289,804
51,357
15,422
204,657
19,374
BA
0
132,414
293,351
71,198
208,957
23,955
65,325
BA
0
3,812
3,833
4,170
4,446
4,370
4,670
-1,573
-1,700
-1,780
2,239
2,260
2.470
2,746
2,590
2,890
-2,208
-2,410
-2.490
0
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
452
Total trust funds
Interfund transactions
BA1
0 J
BA
0
452
BA1
91
53
53
D
102
60,744
0 J
Total Intergovernmental
Agencies.
BA
0
132.445
293,403
71.258
209,293
24,055
65,725
INTELLIGENCE COMMUNITY STAFF
Federal Funds
General and special funds:
Intelligence community staff
054
BA
8,748
9,683
0
4,017
8,950
D
269
£
30
11,590
See footnotes at end of table.
9,650
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
407
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
INTERNATIONAL COMMUNICATION AGENCY
rcoctol Funds
General and special funds:
Salaries and expenses
154
BA
Salaries and expenses (special
foreign currency program)
154
Center for Cultural and Technical
Interchange Between East and
West
154
Acquisition and construction of radio
facilities
154
Miscellaneous expired special foreign
currency programs
154
Educational exchange fund,
payments by Finland, World War I
debt
154
Trust Funds
Trust funds: Permanent, indefinite ...154
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
150
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
154
0
305,470
BA
0
BA
0
10,186
9,219
10.000
9,264
330,683
^1,500
r
352
D
7,418
330,928
^ 1,288
8.657
10,043
12.200
12,936
BA
0
0
2.142
3,460
61
13.032
9,314
245
0
199
308
BA
0
298
193
316
584
331
337
BA
0
332.908
327,673
373.842
365,062
413.327
393,104
-253
-347
-347
BA
0
332.655
327,420
373,495
364,715
412,980
392,757
BA
0
298
193
316
584
331
337
BA1
0 J
-215
-227
-238
BA1
0 J
310,580
"370,318
"19,685
8,425
65
359,800
^212
"9,824
11,102
"13,500
13,500
Total trust funds
BA
0
83
-22
89
357
93
99
Total International
Communication Agency.
BA
0
332,738
327,398
373,584
365,072
413,073
392,856
INTERNATIONAL TRADE COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
153 BA
11.840
11,500
D
713
12,463
13,113
10,806
See footnotes at end of table.
13,113
THE BUDGET FOR FISCAL YEAR 1979
408
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
INTERSTATE COMMERCE COMMISSION1
Federal Funds
General and special funds:
Salaries and expenses
401
BA
Payments for directed rail service
57,769
59,717
69.422
0
58,682
"2.900
61,716
4
2,300
68,180
0
17
100
792
57.769
58,699
64,917
64,116
69,422
68,972
-48
-51
-52
57,721
58,651
64.866
64,065
69.370
68,920
1.000
1,000
1.500
1,500
401
Summary
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the
public
400
Total Interstate
Commission.
Commerce
BA]
0J
BA
0
JAPAN-UNITED STATES FRIENDSHIP
COMMISSION
Federal Funds
General and special funds:
Japan-United States friendship trust
fund
154
Japan-United
fund
Trust Funds
States friendship
trust
154
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)..
Total Japan-United States
Friendship Commission.
LEGAL SERVICES CORPORATION
Federal Funds
General and special funds:
Payment to the Legal Services
Corporation
752
MARINE MAMMAL COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
302
See footnotes at end of table.
72
BA
0
0
386
72
0
386
1,000
1,000
1.500
1,500
BA
0
458
1,000
1,000
1.500
1,500
BA
0
125.000
125,004
205.000
153,814
255.000
243,000
BA
0
1.000
1,053
900
980
702
822
BA . ...
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
1978
1979
actual
estimate
estimate
OTHER INDEPENDENT AGENCIES—Continued
NATIONAL CAPITAL PLANNING COMMISSION
Fedeml Funds
General and special funds:
Salaries and expenses
451
BA
2,077
1,819
D
252
2,071
NATIONAL CENTER FOR PRODUCTIVITY AND
QUALITY OF WORKING LIFE
Federal Funds
General and special funds:
Salaries and expenses
376
BA
0
2,750
2,109
2,900
3,300
NATIONAL COMMISSION ON LIBRARIES AND
INFORMATION SCIENCE
f ecferol Funds
General and special fundsSalaries and expenses
503
BA
4,008
563
"44
1,767
1,743
607
1,767
683
1,743
607
1,767
683
1,743
0
1.966
0
910
0
-\_
1,939
1,939
A
2,900
2,900
683
Trust Funds
Contributions
503
Summary
Federal funds*
(As shown in detail above)
BA
0
Trust funds:
(As shown in detail above)
0
Total National Commission on
Libraries and Information
Science.
BA
0
NATIONAL CREDIT UNION ADMINISTRATION
Federal Funds
Public enterprise funds:
Operating fund
371
0
Credit union share insurance fund
371
Total National Credit
Administration.
Union
Intragovemmental funds:
Consolidated working fund (arts) .503
See footnotes at end of table.
-1
4,008
909
-70
416
0
-19,211
-30,046
-36,000
0
-19,281
-29,630
-36,000
166,743
112,160
32,500
182,263
98.000
°373
25,500
112,834
-53
80
NATIONAL FOUNDATION ON THE ARTS AND THE
HUMANITIES
NATIONAL ENDOWMENT FOR THE ARTS
Federal Funds
General and special funds:
Salaries and expenses
503
BA
Appropriation, Current, indefinite...
4,008
910
BA
0
0
37,500
132,799
THE BUDGET FOR FISCAL YEAR 1979
410
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
NATIONAL ENDOWMENT FOR THE ARTS—Con.
Trust
Funds
Gifts and donations (arts): Permanent,
indefinite
503
Summary
Federal funds:
(As shown in detail above)
BA
0
BA
0
Trust funds:
(As shown in detail above)
BA
0
Total National Endowment for
the Arts.
BA
0
10,544 .
10,544 ...
199,243
182,210
123.873
112,914
149,660
132,799
123.873
112,914
149,660
132,799
96,000
D
292
25.000
141,915
111.100
10,544
10,544 ...
209,787
192,754
NATIONAL ENDOWMENT FOR THE HUMAN!TIES
Federal Funds
General and special funds:
Salaries and expenses
503
Appropriation, Current, indefinite...
BA
BA
0
34.500
105,273
Intragpvemmental funds*
Consolidated working
(humanities)
Trust
fund
0
80
503
Funds
Gifts and donations
Permanent, indefinite
(humanities):
503
BA
0
16,000
16,000
16.000
16,000
BA
0
121,292
141,995
145.600
105,273
BA
0
16,000
16,000
16.000
16,000
BA
0
137,292
157,995
161.600
121,273
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
Total National Endowment for
the Humanities.
NATIONAL INSTITUTE OF BUILDING SCIENCES
reaeral Funds
General and special funds:
Salaries and expenses
376
1,000
1,000
BA
0
NATIONAL LABOR RELATIONS BOARD
Federal Funds
General and special funds:
Salaries and expenses: Indefinite.505
100.467
80,727
88.520
"3,988
93,030
80.908
80,727
92.508
93,030
100.467
99,930
BA
80.908
0
BA
0
99,930
Summary
Federal funds:
(As shown in detail above)
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
NATIONAL LABOR RELATIONS BOARD—Con.
Summary—Continued
Federal funds:—Continued
Deductions for offsetting receipts:
Proprietary receipts from the
public
500
Total National Labor Relations
Board.
BA1
0 J
BA
0
-181
-236
-244
80,727
80,546
92,272
92,794
100,223
99,686
BA
3,660
3,703
3,969
NATIONAL MEDIATION BOARD
Federal Funds
General and special funds:
Salaries and expenses
505
D
0
3,327
210
3,610
BA
0
3.660
3,327
3.913
3,610
3,660
3,969
3,660
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Proprietary receipts from the BA].
public
500 0 I
Total National Mediation Board.
BA
0
3,654
3,321
6
-
5
-
6
3,908
3,605
3,963
3,654
712.311
783.200
850,400
667,611
c22
D
1,220
E
758
744,700
774,000
4,600
5,346
59,000
65,184
4,900
5,000
73,200
70,600
6,000
5,000
77.600
73,300
NATIONAL SCIENCE FOUNDATION
General and special funds:
Research and related activities....251
BA
0
Scientific activities (special foreign
currency program)
251
Science education activities
251
BA
0
BA
0
Intragovemmental funds:
Consolidated working fund
251
Trust Funds
Donations: Permanent, indefinite
251
0
8,746
1,000
500
BA
6,841
5,000
5,300
0
5,982
4,000
4,500
775,911
746,887
863,300
821,300
934,000
852,800
-832
-278
-278
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
250
902
Total Federal funds
See footnotes at end of table.
BA
0
BA1
0J
BA1
0 J
BA
-1
-22
-22
775,078
863.000
933.700
0
746,054
821,000
852,500
™E
BUDGET FOR
HSCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
NATIONAL SCIENCE FOUNDATION—Continued
Summary—Continued
Trust funds:
(As shown in detail above)
BA
0
6,841
5,982
5,000
4,000
5,300
4,500
BA
0
781,919
752,036
868,000
825,000
939.000
857,000
NATIONAL TRANSPORTATION SAFETY BOARD
Federal Funds
General and special funds:
Salaries and expenses
407
BA
13,800
15,650
Total National
Foundation.
Science
0
13,087
14,710
"690
15,290
BA
0
13,800
13,087
15,400
15,290
15,650
15,370
-38
-35
-35
BA
0
13,762
13,049
15,365
15,255
15,615
15,335
BA
248,780
281,423
^5,350
D
5,350
*330,670
0
230,559
271,600
^3,300
305,150
^2,050
BA
0
248,780
230,559
292,123
274,900
330,670
307,200
292,123
274,900
330,670
307,200
15,370
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
400
Total National Transportation
Safety Board.
NUCLEAR REGULATORY COMMISSION
Federal Funds
General and special funds:
Salaries and expenses
276
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
270
Total Nuclear
Commission.
Regulatory
CONSUMER PROTECTION ACTIVITIES
Federal Funds
General and special funds:
Consumer protection activities
506
BAl
0 J
BAl
0 J
BA
0
BA
0
OFFICE OF CONSUMER REPRESENTATION
Federal Funds
General and special funds:
Salaries and expenses
506
BA
0
See footnotes at end of table.
-13
248,767
230,546
J
- 11,600
J
-ll,600
7
15,000
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
413
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
OCCUPATIONAL SAFETY AND HEALTH REVIEW
COMMISSION
Federal
Funds
General and special funds:
Salaries and expenses
554
BA
0
6,607
6,899
7,150
7,088
7,658
7,368
451
BA
1,032
"1,530
1,084
1,294
D
32
1,457
451
BA
0
4,081
35
12,354
2,400
*12,355
7,635
BA
0
25,000
7,500
21,000
13,400
24,900
BA
0
30,113
1,119
21,180
24,857
27,285
34,065
BA
2,266,170
1.695,540
^91,959
1,695,540
^91,959
1,829,994
PENNSYLVANIA AVENUE DEVELOPMENT
CORPORATION
Federal Funds
General and special funds:
Salaries and expenses
Public development
Public enterprise funds:
Land acquisition and development
fund:
451
Authority to spend public debt
receipts.
Total Pennsylvania Avenue
Development Corporation.
1,530
POSTAL SERVICE
Federal
Funds
General and special funds:
Payment to the Postal Service fund
372
2,267,449
1,829,994
RAILROAD RETIREMENT BOARD
Federal Funds
General and special funds:
Payments to Railroad Retirement
Trust Fund
601
Regional rail transportation
protective account
604
Trust Funds
Railroad retirement account:
Permanent, indefinite
601
Limitation on salaries and expenses..
BA
0
250,000
250,000
250,000
250,000
313,000
313,000
BA
0
65,000
59,983
50,000
50,049
25,000
30,000
BA
0
3.597,043
3,799,623
(30,230)
3,973.000
4,094,000
(33,282)
BA
0
315,000
309,983
300,000
300,049
338.000
343,000
3.902,000
4,280,000
(34,746)
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
600
Total Federal funds
Trust funds:
(As shown in detail above)
See footnotes at end of table.
260-000 O - 78 - 27
BA1
0 J
-1
BA
0
314,999
309,982
300.000
300,049
338.000
343,000
BA
0
3,597,043
3,799,623
3,973,000
4,094,000
3.902.000
4,280,000
™E
BUDGET FOR
FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
RAILROAD RETIREMENT BOARD—Continued
Summary—Continued
Trust funds:—Continued
1
Deductions for offsetting receipts:
Intrafund transactions
902
BA1
0 J
Total trust funds
Interfund transactions
Total Railroad
Board.
601
Retirement
RENEGOTIATION BOARD
Federal Funds
General and special funds:
Salaries and expenses
054
-757
16,000
16,000
BA
0
3.596,286
3,798,866
3,989,000
4,110,000
3.918,000
4,296,000
BA1
0 J
-250,000
-250,000
-313,000
BA
0
3,661,285
3,858,848
4,039,000
4,160,049
3.943.000
4,326,000
BA
6.002
7,277
0
5,804
6.000
D
332
6,519
BA
0
6,002
5,804
6,332
6,519
7,277
7,240
-2
-2
-4
6.000
5,802
6,330
6,517
7,273
7,236
56,270
58,100
^1,425
"3,000
"64.800
0
53,659
64,500
'1,400
64,800
^25
BA
0
56.270
53,659
62.525
65,900
64,800
64,825
-24
-23
-23
7,240
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Proprietary receipts from the
public
050
Total Renegotiation Board
BA1
0 J
BA
0
SECURITIES AND EXCHANGE COMMISSION
Feaeral Funds
General and special funds:
Salaries and expenses
376
BA
Summary
Federal funds*
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
370
BA1
0 J
Total Securities and Exchange
Commission.
BA
0
56,246
53,635
62,502
65,877
64.777
64,802
SELECTIVE SERVICE SYSTEM
Federal Funds
General and special funds:
Salaries and expenses
054
BA
7,920
9,500
0
9,587
6.300
»118
*229
7,796
See footnotes at end of table.
8,500
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
OTHER INDEPENDENT
SELECTIVE SERVICE SYSTEM—Continued
Summary
Federal funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts:
Proprietary receipts from the
BA\
public
050
0 J
Total Selective Service System...
BA
0
1978
estimate
1979
estimate
AGENCIES—Continued
7,920
9,587
6,647
7,796
9.500
8,500
7,920
9,587
6,647
7,796
9,500
8,500
BA
36,470
164,000
"4,000
165,100
0
28,942
166,850
164,000
SMALL BUSINESS ADMINISTRATION
Federal Funds
General and special funds:
Salaries and expenses
376
Public enterprise funds:
Business loan and investment fund
376
BA
0
601,600
463,534
605,000
345,700
441,000
354,000
Disaster loan fund
Permanent, indefinite
453
BA
BA
0
290.000
1,304
184,200
1,515,000
180
1,195,000
190.000
300
550,000
Lease guarantees revolving fund..376
BA
0
3,000
4,005
4.000
3,350
4,000
3,350
Surety bond guarantees
fund
revolving
376
BA
0
36,000
19,507
47,000
35,000
27,000
25,000
Pollution control equipment contract
guarantee revolving fund
376
BA
0
15,000
-199
-4,000
-3,000
BA
0
983,374
699,989
2.339,180
1,741,900
827,400
1,093,350
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Proprietary receipts from the
public
370
Total Small Business
Administration.
BA1
0 J
-14
BA
0
983,360
699,975
2,339,180
1,741,900
827,400
1,093,350
BA
85,236
96.307
0
87,330
88.238
'1,100
C
1,179
"3,636
92,435
^ 1,100
SMITHSONIAN INSTITUTION
Federal Funds
General and special funds:
Salaries and expenses
503
94,982
Museum programs and related
research (special foreign currency
program)
503
BA
0
3.481
3,243
4.000
4,095
3,700
4,152
Science information exchange
BA
1,972
2,218
0
1,900
1,777
D
85
1,934
See footnotes at end of table.
251
2,218
THE BUDGET FOR FISCAL YEAR 1979
416
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
OTHER INDEPENDENT AGENCIES—Continued
SMITHSONIAN INSTITUTION—Continued
Federal Funds—Continued
General and special funds:—Continued
Construction and improvements,
National Zoological Park
503
Restoration
buildings
and
renovation
Construction
2,500
8,595
2,425
4,485
325
1,700
21
3,900
2,600
3,100
4,000
575
1,100
19,305
1,140
14,509
^720
C
241
"464
16,382
^720
1,256
0
920
1,287
1,317
BA
0
76
78
70
67
70
72
of
503
BA
0
6,580
9,280
2,950
947
503
BA
0
1,025
BA
0
The John F. Kennedy Center for the
Performing Arts
303
0
Salaries and expenses,
Gallery of Art
BA
National
503
12,686
10,318
Salaries and expenses, Woodrow
Wilson International Center for
Scholars
503
Trust Funds
Smithsonian Institution trust
Permanent
funds-.
251
BA
18,794
1,317
Summary
Federal funds:
(As shown in detail above)
114,045
114,963
-52
122,486
132,754
-52
130.422
129,163
-52
BA
0
113.993
114,911
122,434
132,702
130.370
129,111
BA
0
76
78
114,069
114,989
70
67
122,504
132,769
70
72
130.440
129,183
BA
0
737
545
712
891
594
842
BA
0
645
707
586
588
431
504
BA
0
737
545
712
891
594
842
BA
0
Deductions for offsetting receipts-.
Proprietary receipts from the
public
500
Total Federal funds
BAl
0 J
Trust funds:
(As shown in detail above)
Total Smithsonian Institution
BA
0
TEMPORARY STUDY COMMISSIONS
Joint Federal-State Land Use Planning
Commission for Alaska
Federal
Funds
General and special funds:
Salaries and expenses
Cooperative
indefinite
452
Trust Funds
funds: Permanent,
452
Summary
Federal funds:
(As shown in detail above)
See footnotes at end of table.
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
TEMPORARY STUDY COMMISSIONS—Con.
Joint Federal-State Land Use Planning
Commission for Alaska—Continued
Summary—Continued
Trust funds:
(As shown in detail above)
BA
0
Deductions for offsetting receipts-.
Proprietary receipts from the
BA1
public
452
0 J
645
707
-645
586
588
-586
431
504
-431
73
594
915
Total trust funds
0
Total Joint Federal-State Land
Use Planning Commission
for Alaska.
BA
0
62
737
607
2
712
893
Commission on Executive,
Legislative, and Judicial Salaries:
Salaries and expenses
805
BA
0
100
83
14
Commission on Federal Paperwork:
Salaries and Expenses
804
BA
0
5,000
6,045
1,036
Commission on the Organization of
the Government for the Conduct
of Foreign Policy: Salaries and
expenses
153
0
Commission on the Review of the
National Policy toward Gambling:
Salaries and expenses
751
BA
0
Defense Manpower Commission:
Salaries and expenses
054
0
37
Lowell Historic Canal District
Commission-. Salaries and
expenses
303
0
38
National Commission for the Review
of Federal and State Laws
751
0
-9
National Commission on Air Quality •.
Salaries and expenses
304
BA
Other Temporary Commissions
Federal Funds
General and special funds:
5
265
317
7
37
4,000
^2,000
0
^1,500
National Commission on Electronic
Fund Transfers: Salaries and
expenses
376
BA
0
National Commission on Materials
Policy.- Salaries and expenses..376
0
National Commission on Supplies
and Shortages: Salaries and
expenses
376
BA
0
National Commission on Water
Quality: Salaries and expenses
304
0
See footnotes at end of table.
1,300
1,255
200
348
17
360
654
22
10
3
3,000
^500
THE BUDGET FOR FISCAL YEAR 1979
418
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1979
estimate
1978
estimate
OTHER INDEPENDENT AGENCIES—Continued
TEMPORARY STUDY COMMISSIONS—Con.
Other Temporary Commissions—Continued
Federal Funds—Continued
General and special funds:—Continued
National Transportation Policy Study
BA
Commission: Salaries and
expenses
407
0
3.000
on
of
and
804
BA
0
508
350
376
Navajo and Hopi Indian Relocation
Commission-. Salaries and
expenses
806
BA
400
0
1,219
Privacy Protection Study Commission:
Salaries and expenses
806
BA
0
776
1,014
Retirement Policy Commission:
Salaries and expenses
601
BA
0
Total Other Temporary
Commissions.
BA
0
National Study Commission
Records and Documents
Federal Officials: Salaries
expenses
National Commission on the Observance of
International Women's Year, 1975
Federal Funds
General and special funds:
Salaries and expenses
806
0
Contributions:
Trust Funds
Permanent, indefinite
806
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
BA
0
0
2.000
D
70
2,865
1,605
2.050
*405
10,414
fi
380
13.129
11.551
11,564
'250
'235
6.975
16,866
'995
'950
18.124
19,391
2,974
1,999
8
2,974
13,311
B
25
53 ...
62 ....
1,999
....
BA
0
8
53
62 ...
Total National Commission on
the Observance of
International Women's Year,
1975.
BA
0
8
2,974
53 ....
2,061
Total Federal funds Temporary
Study Commissions.
BA
0
12.288
15,083
7.687
19,756
Total trust funds Temporary
Study Commissions.
BA
0
8
62
53
64
73
1,003,252
1,125,000
1,239,365
TENNESSEE VALLEY AUTHORITY
Federal Funds
Public enterprise funds:
Tennessee Valley Authority fund:
(Energy supply)
271
See footnotes at end of table.
0
18.718
20,233
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
TENNESSEE VALLEY AUTHORITY—Continued
Federal Funds—Continued
Public enterprise funds:—Continued
Tennessee Valley Authority fund:
—Continued.
(Area and regional development)
BA
452
0
125,930
96,343
138,510
145,000
134,635
134,635
BA
0
125,930
1,099,595
138,510
1,270,000
134,635
1,374,000
BA
0
125,930
1,099,595
138,510
1,270,000
134,635
1,374,000
-36
-24
-24
BA
0
125,894
1,099,559
138,486
1,269,976
134,611
1,373,976
UNITED STATES RAILWAY ASSOCIATION
Federal Funds
General and special funds:
Administrative expenses
401
BA
12,000
10,000
"13,000
11,500
B
9,500
*27,200
Total, Tennessee
Authority fund.
Valley
Summary
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts-.
Proprietary receipts from the
public
270
Total Tennessee Valley Authority
BA1
0 J
0
Purchase of
Permanent
Conrail
securities:
401
Total United States
Association.
Railway
WATER RESOURCES COUNCIL
Federal Funds
General and special funds:
Water resources planning
301
Intragovemmental funds:
Consolidated working fund
301
Trust Funds
River Basin Commissions
301
Summary
Federal funds:
(As shown in detail above)
Trust funds:
(As shown in detail above)
See footnotes at end of table.
12,320
25,500
3,500
fi
BA
0
723,180
425,000
598,700
136,000
394,820
BA
0
12,000
735,500
448,000
619,700
163,200
423,820
BA
0
13.665
12,413
13,696
16,705
"11,560
13,602
0
1
BA
5,731
5,556
8,016
8,868
5,623
6,068
BA
0
13,665
12,414
13,696
16,705
11,560
13,602
BA
0
5,731
5,556
8,016
8,868
5,623
6,068
0
THE
420
BUDGET F OR FISCAL YEAR 1979
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
Account and functional code
1977
actual
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
WATER RESOURCES COUNCIL—Continued
Summary—Continued
Trust funds:—Continued
Deductions for offsetting receipts:
Proprietary receipts from the
public
301
Total trust funds
BA1
0 J
-1,736
-1,599
-1,013
3,995
3,820
6,417
7,269
4,610
5,055
-3,997
-6,417
-4,610
BA
0
13.663
12,237
13.696
17,557
11,560
14,047
BA
15,826,216
17,631.581
17,760,356
0
15,503,148
18,103,515
18,614,288
-2
-4
BA
0
Interfund transactions
301
BA1
0 I
Total Water Resources Council..
SUMMARY
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
804
BA1
-92
0 J
Proprietary
public
receipts
from
the
050
BA1
0 J
150
BA1
0I
BA1
0I
BA1
0J
BA1
0J
BA1
0I
BA\
0J
BA1
0J
BA1
0J
BA1
0I
BA1
0J
BA1
0J
BA1
0I
BA1
0J
250
270
350
370
400
500
550
600
700
750
800
852
-2
-93
-397
-397
-832
-278
-278
-49
-24
-24
-2
-2
-57
-41
-41
-71
-291
-297
-246
-301
-310
-5
-5
-5
-1
-3
-3
-34
-34
-34
-i
-5,900
-1,350
-1,500
-84,472
-43,979
-22,359
421
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
OTHER INDEPENDENT AGENCIES—Continued
SUMMARY—Continued
Federal funds:—Continued
902
Total Federal funds
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts:
Intrafund transactions
602
Proprietary receipts
public .. .
from
-218
-215
BA
0
15,734,161
15,411,093
17,584,656
18,056,590
17,734,887
18,588,819
BA
0
20.105.181
12,052,882
21,684,712
14,084,574
23,178,246
15,003,265
-13,612
-100
-75
BAl
ot
902
BAl
0 J
the
151
BAl
0 J
154
-757
-81
16,000
16,000
-195
-160
BAl
-215
-227
-238
301
BAl
0 J
-1,736
-1,599
-1,013
452
BAl
0 J
-2,218
-2,286
-2,211
20.086,562
12,034,263
21,696,305
14,096,167
23,190,549
15,015,568
- 3,997
-6,417
-4,610
- 2,208
-2,410
- 2,490
Total trust funds
Interfund transactions
-200
BA}
0 J
0 I
BA
0
.301
BAl
0 J
452
Total Other
Agencies.
BAl
0 I
601
BAl
0 J
- 250,000
-250,000
-313,000
602
BAl
0 J
-13,105
- 29,300
- 30,765
805
BAl
0 J
- 7,298,393
-7,397,160
- 8,354,623
BA
0
28,253,020
19,877,653
31,595,674
24,467,470
32,219,948
24,898,899
Independent
ALLOWANCES
Allowances for.
Civilian agency pay raises
Contingencies for:
Relatively uncontrollable programs
Other requirements
Total Allowances..
See footnotes at end of table.
BA
'1,197,000
J
- 47,000
'1,145,000
M5.000
BA
0
0
0
BA
0
3,000,000
1,700,000
BA
0
4,150,000
2,800,000
THE BUDGET FOR FISCAL YEAR 1979
422
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
1977
actual
Account and functional code
1978
estimate
1979
estimate
BUDGET TOTALS
Federal funds:
(As shown in detail above)
Deductions for offsetting receipts:
(As shown in detail above)-.
Intrafund transactions
BA
363,828.021
380.232,690
427.926,511
0
305,026,605
351,160,464
376,738,745
-1,529,720
-1,797,052
-2,116,172
BA1
0 J
Receipts from off-budget Federal
agencies.
BA1
0 J
-2,241,185
-2,716,369
-4,098,334
Proprietary receipts from the
public.
(Undistributed by agency and
function)-.
Proprietary receipts from the
public:
Rents and royalties on the
Outer Continental Shelf ...953
BA1
0 J
-3,933,958
-4,610,831
-5,144,408
BA1
0 I
-2,373,747
-2,000,000
-1,800,000
BA1 -10,078,610
-11,124,252
-13,158,914
Total deductions
0 J
Federal fund totals
BA
353.749.411
369.108,438
414.767,597
0
294,947,995
340,036,212
363,579,831
BA
160,597.033
182,481,544
203.824,130
0
156,068,666
170,880,924
187,014,612
-1,230,503
-1,687,272
-1,381,439
BA1 -10,385,529
0 J
-9,766,460
-10,299,672
BA1
0 J
-1,185,973
-1,237,678
-1,241,507
BA1 -12,802,005
-12,691,410
-12,922,618
Trust funds:
(As shown in detail above)
Deductions for offsetting receipts-.
(As shown in detail above):
Intrafund transactions
Proprietary receipts from the
public.
(Undistributed by agency and
function):
Receipts from off-budget Federal
agencies:
Employer share, employee
retirement
951
Total deductions
BA1
0 J
0 J
Trust fund totals
BA
147,795,028
169,790.134
190,901.512
0
143,266,661
158,189,514
174,091,994
Interfund transactions (—):
Employer share, employee retirement
951
Interest received by trust funds ...952
Applied by agency above
Total interfund transactions
Budget totalsA
BA1
0 J
BA1
0 J
BA]
0 J
BA1
0 J
BA
0
-3.362.100
-3.786.349
-3,915.390
-8.131.396
-8.595.131
-9.063.641
-24.819.656 -23.610.188 -24.518.435
-36,313,152 -35,991,668 -37,497,466
465.231.287
502,906.904
568.171,643
401,901,504
462,234,058
500,174,359
423
THE FEDERAL PROGRAM BY AGENCY AND ACCOUNT
BUDGET ACCOUNTS LISTING (in thousands of dollars)—Continued
BUDGET TOTALS—Continued
A Budget totals are distributed as follows
1978
BA
Federal funds:
Enacted, pending, and initial requests:
Appropriations
Supplemental requests pending ( W )
Proposed in this budget:
Supplemental requests:
Program:
Under existing legislation ( A ) . .
Needing authorizing legislation ( B ) .
Pay:
Wage-board pay raises (C)
Civilian pay raises (D)_
Military pay raises (E)
Rescission proposals ( H )
To be proposed separately :
Under existing legislation ( I )
Under proposed legislation ( J )
Allowances
Deductions for offsetting receipts
Total Federal funds
Trust funds:
Enacted, pending, and initial requests: Appropriations.
Proposed in the budget:
Supplemental requests:
Program: Under existing legislation ( A )
Pay:
Wage-board pay raises (C)
Civilian pay raises ( D ) _ .
To be proposed separately: Under proposed legislation
Deductions for offsetting receipts.
Total trust funds
Interfund transactions (—).
Budget totals
366, 296,174
5, 893,041
3, 256,
300,
872
850
381, 666
1,673, 099
1, 257, 409
-55,255
547,016
681,818
343, 585, 840
563,592
BA
408,147,152
Outlays
367, 591,158
1,036,304
404, 099
20, 375
2,649,210
75,475
385,666
1,634, 384
1, 257,602
10,146
60,623
77
3, 078
419,065
13, 321,381
2,108, 898
6,454,900
5,088,000
-11,124,252 -11,124,252 -13,158,914 -13,158,914
127,000
881,695
369,108,438
340,036,212
414,767,597
363,579,831
182,038,426
170,959,958
200,226,702
188,675,718
442,012
-130
80
1,026
80
1,016
-12,691,410
-80,000
-12,691,410
-394
16
3,597,428
-12,922,618
-1,660,722
-12,922,618
169,790,134
158,189,514
190,901,512
174,091,994
-35,991,668
-35,991,668
-37,497,466
-37,497,466
502,906,904
462,234,058
568,171,643
500,174,359
A Proposed supplemental under existing legislation.
B Supplemental. Additional authorizing legislation required.
C Supplemental now requested, wage-board pay raises.
D Supplemental now requested, civilian pay raises.
E Supplemental now requested, military pay raises.
F Proposed transfer to other accounts for pay raises (—).
G Proposed transfer from other accounts for pay raises.
H Rescission pending.
I Proposed for later transmittal under existing legislation.
J Proposed for later transmittal under proposed legislation.
K Additional authorizing legislation required.
W Supplemental pending.
1979
Outlays
424
THE BUDGET FOR FISCAL YEAR 1979
ACCOUNTS LISTING FOR OFF-BUDGET FEDERAL ENTITIES
(in thousands of dollars)
Account and functional code
1977
1978
1979
DEPARTMENT OF AGRICULTURE
Public enterprise funds:
Rural electrification and telephone revolving fund
271
Authority to spend debt receipts: Permanent, indefinite..
Rural Telephone Bank
452
Authority to spend debt receipts: Permanent, indefinite..
Total, Department of Agriculture
BA
149,367
0
393,615
BA
BA
0
30,000
111,818
58,580
30,000
128,651
78,668
43,841
.
30,000
168,667
104, 517
BA
291,185
202,492
0
452,195
140,721
198,667
104, 517
-15,593
-28,264
BA
0
8,734
-77,858
BA
O
BA
9,533,957
8,201,140
9,533,957
13,842,835
10,567,298
13,842,835
0
8,209,874
10,489,440
-173,141
815,151
-763
5,788
219,337
120,000
18,359
97,133
23,400
23,117
BA
0
BA
O
9,950,930
8,692,672
465,231,287
401,901, 504
14,063,686
11, 514,181
502, 906,904
462, 234,058
BA
475,182,217
516,970,590
0
410, 594,176
62,053 .
DEPARTMENT OF LABOR
Public enterprise funds:
Pension Benefit Guaranty Corporation
601
-29,701
BA
O
DEPARTMENT OF THE TREASURY
Intragovernmental funds:
Exchange Stabilization Fund...
155
Federal Financing Bank
_
Authority to spend debt receipts: Indefinite
374
Total, Department of the Treasury
-69,602
15,864,600
12, 509, 954
15,864,600
12, 440,352
OTHER INDEPENDENT AGENCIES
U.S. POSTAL SERVICE
Public enterprise funds:
Postal Service fund
...372
BA
0
U.S. RAILWAY ASSOCIATION
I ntragovern mental funds:
Regional Rail Reorganization Program
Authority to spend debt receipts
401
_
Authority to spend debt receipts: Permanent, indefinite..
SUMMARY
Off-budget Federal entities:
(As shown in detail above)
Budget totals
Total, including off-budget Federal entities
BA
O
BA
473,748,239
16,086,667
12, 537, 522
568,171,643
500,174,359
584,258,310
512,711,881
PART 9
SUMMARY TABLES
425
EXPLANATORY NOTE RELATING TO THE
SUMMARY TABLES
Types of tables.—This part of the budget consists of tables
as follows:
• Tables 1 through 9 are short summary tables of the
budget.
• Tables 10 through 13 provide greater detail in support
of financial data in the first three tables.
• Table 15 presents 5-year projections of the estimated
costs of proposed legislation pursuant to section 221 (a)
of the Legislative Reoganization Act of 1970.
• Table 14 and tables 16 through 21 are historical in
nature, giving data, for earlier years, comparable to those
data in the preceding tables, and also giving information
on the national income accounts, the gross national
product over a longer period, and the budget in constant
(Fiscal Year 1972) prices.
Periods covered.—Due to the change in fiscal year required
by the Congressional Budget Act, the following periods are
covered by the various columns:
• July 1 through June 30 for the 1976 and prior columns.
• July 1 through September 30, 1976, for the TQ column.
• October 1 through September 30 for the 1977 and subsequent columns.
Concepts followed.—The concepts used in the current and
historical tables are discussed in Part 7 of this volume.
Budget authority and outlays for off-budget Federal entities
are included in selected tables.
Other sources of summary data.—The Special Analyses
volume, Parts 1 and 2, presents data covering alternative
views of the budget and Government finances and operations
as a whole. These include, for example: the current services
estimates; a comparison of budget totals with the Federal
sector of the national income accounts; selected data on
Federal and trust funds; a description of current developments
and trends in Federal borrowing and debt; information that
distinguishes between outlays of a "capital" nature and outlays for operating purposes; a discussion of tax expenditures
included in the budget; and information on civilian employment
in the executive branch.
426
427
SUMMARY TABLES
Table 1. BUDGET SUMMARY (in millions of dollars)
Description
Budget authority (largely appropriations):
Available through current action by Congress:
Enacted and pending
.
Proposed in this budget
To be requested separately
Available without current action by Congress
Deductions for offsetting receipts *
1977
actual
1978
estimate
1979
estimate
317,620
319,333
6,815
1,229
235,337
-59,807
343,552
23,377
264,822
-63,579
-120
206,925
-59,194
Total budget authority
Budget authority, off-budget Federal entities
Budget authority including off-budget Federal entities
Receipts, outlays, and surplus or deficit:
Receipts:
Total budget receipts2
Outlays:
Total budget outlays2 3
Outlays, off-budget Federal entities
Outlays, including off-budget entities
Surplus or deficit (—):
Total budget deficit ( - )
Deficit, off-budget Federal entities
465,231
502,907 568,172
(9,951)
(14,064) (16,087)
(475,182) (516,971) (584,258)
356,861
400,387
439,588
401,902
462,234 500,174
(8,693)
(11,5/4) (12,538)
(410,594) (473,748) (512,712)
-45,040 -61,847 -60,586
(-8,693)
(-11,514) (-12,538)
Total deficit (-)
(-53,733)(-73,361) (-73,124)
TQ
actual
Outstanding debt, end of period:
Gross Federal debt
Held by:
Government agencies
The public
Federal Reserve System
Others
646,379
709,138
785,583
873,668
148,052
498,327
157,295
551,843
167,740
617,843
182,826
690,843
96,702
401,625
105,004
446,839
65,610
23, 750
169,873
87,895
68,160
32, 733
183,924
98,928
76,091
43,882
200,385
115,237
80,420
56, 839
223,573
130,082
MEMORANDUM
Outstanding loans, end of year:
Direct loans—on-budget accounts
Direct loans—off-budget accounts
Guaranteed and insured loans 4
Government-sponsored enterprise loans 5
1
2
These consist of intragovernmental transactions and proprietary receipts from the public.
The amounts of earned income credit in excess of tax liabilities are now shown as negative budget
receipts rather than as budget outlays. Accordingly, the 1977 budget totals have been adjusted
retroactively. These adjustments decrease budget receipts and outlays by $901 million in 1977;
$947
million in 1978; and $900 million in 1979.
3
The transactions of the housing for the elderly or handicapped fund, formerly excluded from the
budget by law as of Sept. 1, 1974, are included in the budget totals in accordance with Public Law
95—119. Accordingly, the budget totals for 1975—77 have been adjusted retroactively. These adjustments change budget outlays by —$13 million in 1975; —$15 million in 1976; —$3 million in the TQ;
$54 million in 1977; $335 million in 1978; and $713 million in 1979.
Excludes loans held by Government accounts and sponsored credit enterprises.
5
Net of lending between Government-sponsored enterprises or between such enterprises and Federal
agencies; excludes Federal Reserve banks.
428
THE BUDGET FOR FISCAL YEAR
1979
Table 2. BUDGET RECEIPTS, OUTLAYS, AND BUDGET AUTHORITY
(In millions of dollars)
Description
1977
actual
F978
estimate
[979
estimate
Budget receipts by source:
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts
___
Total budget receipts
Budget outlays by function:
National defense 1
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
(Social security)
(Other)
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Interest
Allowances 2
Undistributed offsetting receipts
Total budget outlays
Budget surplus or deficit ( - )
__
156,725
54,892
108, 688
17,548
7,327
5,150
6,531
178,828
58,949
124,122
20,150
5,618
5,792
6,928
190,077
62,487
141, 889
25,475
6,067
6,390
7,203
._
356,861
400,387
439,588
107,626
6,747
4,757
7,837
12,125
9,106
3,523
16,310
9,694
27,471
44,261
147,640
(93,048)
(54,592)
18,916
4,019
4,119
9,860
43,841
117,779
7,691
5,077
9,634
12,222
5,433
2,969
17,399
8, 669
30,421
49,677
160,024
(103,171)
(56,853)
19,257
4,211
4,304
9,636
48,991
2,800
-16,021
97,501
4,831
4,677
4,172
10,000
5,526
—31
14,636
6,283
20,985
38,785
137,004
(83,861)
(53,143)
18,038
3,600
3,357
9,499
38,092
-15,053
-15,619
401,902
462,234
500,174
"^-45,040
-61,847
-60,586
Budget authority by function:
National defense!
International affairs
General science, space, and technology
Energy
.
National resources and environment
Agriculture
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and social services
Health
Income security
(Social security)
(Other)
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Interest
Allowances2
Undistributed offsetting receipts
Total budget authority
1
2
110,432
6,587
4,576
4,978
9,457
2,424
5,481
10,363
12,790
30,377
40,368
168,566
(79,962)
(88,604)
19,069
3,601
3,851
9,272
38,092
-15,053
465,231
117,813 128,439
11,102
13,801
4,889
5,216
8,539
9,544
12,935
12,664
3,761
7,197
5,381
6,597
15,150
18,573
8,719
7,716
22,829
33, 604
46,469
52,604
180,381
190,885
(88,042) (100,153)
(92,340) (90,732)
19,068
19,074
3,904
4,144
4,055
4,361
9,691
16,632
43,841
48,990
4,150
-15,619 -16,021
502,907
Includes allowances for civilian and military pay raises for Department of Defense.
Includes allowances for civilian agency pay raises and contingencies.
568,172
SUMMARY TABLES
429
Table 3. BUDGET AUTHORITY AND OUTLAYS BY AGENCY
(In millions of dollars)
Budget authority
Department or other unit
Legislative branch
The Judiciary
Executive Off ice of the President.
Funds appropriated to the
President
Agriculture
Commerce
Defense-Military 1
Defense-Civil
Energy 2
Health, Education, and Welfare..
Housing and Urban Development.
Interior
Justice
--Labor
State
Transportation
Treasury
Environmental Protection Agency.
General Services Administration..
National Aeronautics and Space
Administration
Veterans Administration
Other independent agencies
Allowances3
Undistributed offsetting receipts:
Employer share, employee retirement
. . ._
Interest received by trust funds.
Rents and royalties on the Outer
Continental Shelf lands
1977
actual
1978
estimate
Outlays
1979
estimate
1,043
430
78
1,076
469
76
1,161
492
79
4,639
15,467
8,204
108,425
2,495
6,620
147,628
33,900
3,708
2,334
31,203
1,240
9,298
49,391
2,763
304
8,964
17,209
2,370
115,264
2,744
10,632
162,281
38,143
4,257
2,365
20,676
1,443
13,560
56,571
5,503
224
3,818
19,042
28,253
4,063
19,042
31,596
4,370
19,048
32,220
4,150
-4,548
-8,131
-5,024
-8,595
-2,374
Total budget authority and
outlays
465,231
1977
actual
1978
estimate
1979
estimat
976
392
73
1,057
458
78
1,175
489
78
10,974
2,487
20,026 16,738
2,722
2,606
125,567 95,650
2,457
2,280
11,642
5,217
185,007 147,455
33,112
5,838
4,452
3,194
2,457
2,350
29,861 22,374
1,465
1,076
17,355 12,514
69,648 49,560
5,627
4,365
300
-31
4,916
22,625
4,524
105,300
2,536
8,152
164,595
8,411
3,904
2,527
23,742
1,247
14,395
56,688
5,063
289
5,089
17,727
4,385
115,200
2,547
10,087
181,265
9,529
4,002
2,533
25,134
1.355
15,798
62,612
5,679
306
3,944
18,019
19,878
3,982
18,898
24,467
4,269
19,238
24,899
2,800
-5,157
-9,064
-4,548
-8,131
-5,024
-8,595
-5,157
-9,064
-2,000
-1,800
-2,374
-2,000
-1,800
502,907
568,172 401,902
462,234
500,174
317,500
327,377
366,929
190,864
196,355
218,015
206,925
235,337
264,822
134,434
78,889
157,607
107,166
180,109
121,814
56,908
60,914
43,816
MEMORANDUM
Portion available through current
action by Congress
Portion available without current
action by Congress
Outlays from obligated balances 4_
Outlays from unobligated balances 4
Deductions for offsetting receipts:
Intragovernmental transactions.
Proprietary receipts from the
public
-42,501
-43,430
-46,335 -42,501
-43,430
-46,335
-16,693
-16,377
-17,244 -16,693
-16,377
-17,244
Total budget authority and
outlays
465,231
502,907
568,172 401,902
462,234
500,174
1
Includes allowances for civilian and military pay raises for Department of Defense.
2
This agency assumes the energy activities previously performed by the Energy Research and
Development
Administration, the Federal Energy Administration, and several other agencies.
3
Includes allowances for civilian agency pay raises and contingencies.
4
Outlays from appropriations to liquidate contract authority are included as outlays from
balances.
260-000 O - 78 - 28
430
THE BUDGET FOR FISCAL YEAR
1979
Table 4. BUDGET AUTHORITY AND OUTLAYS AVAILABLE
THROUGH CURRENT ACTION BY CONGRESS (in millions of dollars)
Budget authority
Department or other unit
Outlays
1978
estimate
1979
estimate
1.054
427
1,076
464
1,162
486
860
384
869
414
1,013
440
78
76
79
66
70
73
6,554
14,176
7,891
108,597
2,572
6.862
51,642
33,588
4,066
2,340
19,657
1,127
5,263
7,248
14,201
2,109
115,525
2,829
11,411
54,803
37,425
4,597
2,371
5.874
1,342
6,005
8,788
14,787
2,423
125,902
2,548
12.593
61,738
31,422
4,772
2,464
12.458
1,334
13,206
2,269
11,268
1,503
76,991
1,753
2,682
34,644
888
2,361
1,493
8.293
874
3,443
2,435
12,430
1,010
76,239
1,811
4,799
36,384
544
2,636
1,653
4.059
1,028
3,867
2,569
11,007
1,242
82,469
1,589
4,389
41,264
998
2,687
1.739
10.980
1,039
4.580
14,439
19,152
26,918
12,287
17,121
17.918
2,764
494
5,504
399
5,628
587
730
316
476
413
601
526
3,819
18,573
11.521
4,064
18,535
12.367
4.372
18,513
10,601
4,150
2,930
15,531
9,300
3,021
15,875
9.200
3,255
16,521
8,314
2,800
Total budget authority and
outlays from budget authority available through
current action by Congress
317,500
327,377
366,929 190,864
196,355
218,015
Legislative branch
The Judiciary
Executive Office of the President
.
Funds appropriated to the President
Agriculture
Commerce
Defense-Military *
Defense-Civil
Energy
Health, Education, and Welfare.
Housing and Urban Development.
Interior
Justice
Labor
State
Transportation
Treasury
Environmental Protection Agency.
General Services Administration..
National Aeronautics and Space
Administration
Veterans Administration
Other independent agencies
Allowances2
1977
actual
1977
actual
1978
estimate
1979
estimate
MEMORANDUM
Appropriations and outlays from
appropriations to liquidate contract authority: 3
Funds appropriated to the President
Agriculture
Commerce
Housing and Urban Development.
Interior
Transportation
Environmental Protection Agency.
Other independent agencies
185
338
388
3,681
84
8,870
3, 849
6
211
319
352
4,056
55
8.143
5,000
18
221
1,106
263
4,503
Total appropriations and
outlays from appropriations to liquidate contract
authority
17,402
18,155
17,438
1
3
3
9.946
1,400
286
388
2,052
45
7,657
2,705
6
13,141
5
264
352
2,080
25
8.108
2.745
12 .
13,591
Includes allowances for civilian and military pay raises for Department of Defense.
Includes allowances for civilian agency pay raises and contingencies.
Excluded from budget authority and outlays above.
7
1,054
263
2,458
9,841
1,385
15,009
SUMMARY
431
TABLES
Table 5. RELATION OF BUDGET AUTHORITY TO OUTLAYS
(In millions of dollars)
Description
Budget authority available through current action by Congress:
Enacted, pending, or recommended herein:
Appropriations 1
Contract authority
Authority to borrow
Reappropriations and reauthorizations
To be requested separately:
Appropriations l
Contract authority
Authority to borrow
Total budget authority available through current action
by Congress (table 4)
Budget authority available without current action by Congress
(permanent authorizations):
Appropriations 1
Contract authority
Authority to borrow
Deductions for offsetting receipts (table II):
Intragovernmental transactions
Proprietary receipts from the public
Total budget authority for the year (table 3)
Unobligated balances and adjustments:
Unobligated balances:
Brought forward at start of year (table 7)
Written off (rescinded, lapsed, etc.) 2
Carried forward at end of year (table 7)
Application of new authority to prior obligations:
Budget authority of year, obligated previously
Budget authority of subsequent year, obligated currently.
Obligations incurred, net (table 6)
Obligated balances:
Brought forward at start of year, funded (table 7)
Adjustments in expired accounts
Deficiency appropriations
Carried forward at end of year (table 7)
Budget outlays (table 3)_
1978
estimate
1977
actual
288,478
28,265
876
1
1979
estimate
293,704
31,646
787
11
317,755
24,953
-120
1,229
17,636
236
5,506
317,500
327,377
366,929
192,827
13,062
1,036
213,281
20,781
1,275
241,322
20,954
2,545
-42,501
-16,693
-43,430
-16,377
-46,335
-17,244
465,231
502,907
568,172
268,712
-13,995
-255,191
255,191
-18,171
-220,424
220,424
-2,777
-224,301
-3,791
4,609
-4,726
5,484
-5,484
5,716
465,575
520,261
561,751
843
272,836
335,358
393,570
-1,173
185
8
21
-335,358 -393,570 -455,154
401,902
462,234
500,174
312,055
353,749
355,058
294,948
319,364
369,108
392,225
340,036
355,370
414,768
420,034
363,580
MEMORANDUM
Federal funds included above:
Budget authority available through current action by
Congress
Budget authority 3
Obligationsincurred.net3
Budget outlays 3
1
Excludes appropriations to liquidate contract authority:
1977
actual
27,771
1978
estimate
27,555
1979
estimate
25,950
991
Enacted, pending, or recommended herein
For later transmittal
Includes redemption of agency debt and capital transfers to the general fund.
Amounts are net of intrafund transactions, receipts from off-budget Federal entities, and proprietary receipts from the public.
2
8
432
THE BUDGET FOR FISCAL YEAR 1979
Table 6. OBLIGATIONS
INCURRED, NET (in millions of dollars)
Department or other unit
Legislative branch
The Judiciary
Executive Office of the President
Funds appropriated to the President:
International Security Assistance
International Development Assistance
Other
Agriculture
Commerce
Defense-Military 1
Defense-Civil
Energy*
Health, Education, and Welfare
Housing and Urban Development
Interior
Justice
Labor___
State
Transportation
Treasury
Environmental Protection Agency
General Services Administration
National Aeronautics and Space Administration
Veterans Administration,
Civil Service Commission
Export-Import Bank
Federal Deposit Insurance Corporation
Federal Home Loan Bank Board
U.S. Postal Service
Railroad Retirement Board
Other Independent Agencies
Allowances3
Undistributed offsetting receipts
Total
1977
actual
1,044
393
75
2,243
1, 744
921
20,003
8,124
108,620
2,433
6,682
149,613
32,559
3,570
2,195
1978
estimate
1,145
463
75
1979
estimate
1,184
491
79
5,305
5,492
2,580
3,446
921
633
23,407
19,095
2,513
2,970
114,395
125,096
2,857
2,580
11,272
10,305
169,918 186,847
41,086
38,723
4,613
4,334
2,547
2,465
26,009
21,401
1,118
14,885
49,496
7,944
47
3,840
18,199
10,124
-1,619
—799
-1,925
2,266
3,919
6,906
1,440
17,450
56,702
5,079
384
4,376
19,139
11,496
488
—287
-374
1,787
4,138
9,564
24,661
1,374
17,241
69,616
6,129
280
4,377
19,345
12,942
1,722
—945
-465
1,830
4,336
7,439
4,150
-16,021
-15,053
-15,619
465,575
520,261
561,751
355,058
146,830
-36,313
392,225
164,028
-35,992
420,034
179,215
-37,497
465,575
520,261
561,751
MEMORANDUM
Federal funds
Trust funds
Interfund transactions
Total
1 Includes allowances for civilian and military pay raises for Department of Defense.
2
This agency assumes the energy activities previously performed by the Energy Research and
Development
Administration, the Federal Energy Administration, and several other agencies.
3
Includes allowances for civilian agency pay raise and contingencies.
433
SUMMARY TABLES
Table 7. BALANCES OF BUDGET AUTHORITY (in millions of dollars)
Start 1977
Department or other unit
Obligated
Unobligated
End 1977
Obligated
Unobligated
Legislative branch
144
209
189
211
The Judiciary
.
39
23
41
52
Executive Office of the President14
15
*
Funds appropriated to the President:
Intl. security assistance
15,550 10,073 17,402
120
Intl. development assistance _. 4,039 10,713 4,147 10,847
Other
928
293
316 1,393
Agriculture
5,770 12,223 9,028 7,106
Commerce
1,757
789
714 7,263
Defense— Military 1
30,275 21,031 42,689 20,000
Defense— Civil
674
243
827
299
Energy 2
2,171 1,910 3,636 1,712
Health, Education, and Welfare. 23,144 50,766 25,004 49,113
Housing and Urban Develop140,038 33,725 166,748 33,426
ment
Interior
1,486 1,237 1,852 1,277
Justice
1,173
144 1,007
276
Labor
2,230 6,939 5,714 12,130
State
236
232
249
356
Transportation
13,274 23,063 15,618 17,321
Treasury
2,108 2,826 2,034 2,694
Environ. Protection Agency
9,500 6,857 13,077 1,673
General Services Administration.
293
202
371
377
National Aeronautics and Space
Administration
709
815
407
385
Veterans Administration
2,141 10,892 2,304 11,610
Civil Service Commission
3,062 42,135 3,565 49,024
7,619
Export-Import Bank
5,660 1,619
Federal Deposit Insurance Cor128 9,501
poration
182 10,300
26 7,492
13 9,417
Federal Home Loan Bank Board.
293 3,178
353 2,874
Railroad Retirement Board. _
3,911 11,658 4,244 9,912
Other independent agencies._.
Allowances 3
Total.
End 1978
Obligated
300
46
12
End 1979
Unobli
gated
96
58
Obli
gated
308
49
13
22 23,696
20,636
5,063 11,363 6,650
1,133
967
28
9,794
848 11,171
5,253
646 3,838
51,783 20.719 61,679
1,149
186 1,181
6,755
937 6,974
30,533 42,227 36,115
Unobligated
72
58
16
12,766
25
1,756
397
20,985
64
2,139
40,614
199,423 16,774228,,618 9,125
899
871 2,883
2,551
94
85
1,028
960
3,383 10,025 2,910 15,225
359
449
456
437
18,672 13,439 20,115 13,551
263 9,052
295
2,048
13,094 2,097 13,544 1,596
162
156
441
466
66
72 1,210
1,102
2,545 11,402 2,652 10,996
4,113 55,819 4,706 62,837
5,951 1,097 7,269
274
-1
332
5,694
10,586
9,781
2,775
7,686
274
1
342
5,730
1,350
11.531
10,246
2,382
5,966
272,836 268,712 335,358 255,191393,570 220,424 455,154 224,301
MEMORANDUM
Federal funds.
Trust funds.__
Total.
237,412132,964296i,341 127,630 348,714 87,101 405,176 79.291
35,425135,747 39,017 127,561 44,856133,323 49, 979145,010
272,836 268,712 335,358 255,191 393,570 220,424 455,154 224,301
*$500 thousand or less.
Includes balances of allowances for civilian and military pay raises for Department of Defense.
This agency assumes the energy activities previously performed by the Energy Research and
Development
Administration, the Federal Energy Administration, and several other agencies.
8
Includes balances of allowances for civilian agency pay raises and contingencies.
1
2
434
THE BUDGET FOR FISCAL YEAR
1979
Table 8. SUMMARY OF FULL-TIME PERMANENT CIVILIAN
EMPLOYMENT IN THE EXECUTIVE BRANCH *
[Excluding the Postal Service]
Sept. 30
Agency
Agriculture
Commerce*
Defense—military functions2
Defense—civil functions
Energy2
Health, Education, and Welfare
Housing and Urban Development
Interior 2
Justice
Labor 2
State2
Transportation
Treasury
,_
Environmental Protection Agency
General Services Administration
National Aeronautics and Space Administration
Veterans Administration
Other:
Agency for International Development
Civil Service Commission
International Communication Agency2
Nuclear Regulatory Commission
Panama Canal
Small Business Administration
Tennessee Valley Authority
Miscellaneous2
Subtotal
Contingencies3
_
Subtotal
Expected lapse
___
.__
Total
1977
actual
1978
estimate
1979
estimate
82,051
29,491
911,637
28,912
18,078
140,389
15,261
53,291
50.986
18,948
22,412
71,550
107,150
9,779
34,040
23,569
195, 175
84,800
29,800
912,100
28,700
19,500
144,300
16,000
55,700
53,400
20,800
22,800
72,800
109,700
10,200
35,900
23,200
202,400
84,000
29,800
904,900
28,600
19,100
145,100
17,400
56,000
55t 100
20,800
22,800
73, 100
112,500
10,800
36,000
23,200
203,000
5,712
6,875
8,519
2,499
12.914
4,307
17,060
38,383
5,900
7,000
8, 600
2,700
13,500
4, 500
17,300
40,800
5,900
7,200
8,600
2,800
13,500
4,600
18,000
41,200
1,908,988 1,942,700 1,944,200
_.._
2,000
2,000
1,908,988 1,944,700 1,946,200
-14,600
-14,600
1,908,988
1,930,100
1,931,600
1
Excludes Postal Service employment. Actual employment for 1977 was 527,078; employment
for 1978 is estimated to be 524,600, and 523,800 for 1979. Also excludes developmental positions
under
the worker trainee opportunity program (WTOP), as well as certain statutory exemptions.
2
Sept. 30, 1977, numbers have been adjusted to reflect the establishment of the Department of
Energy and its absorption of the Energy Research and Development Administration, Federal Energy
Administration. Federal Power Commission, and parts of other agencies. Similar adjustments have
been made to reflect establishment of the International Communication Agency and the transfer of
employees to it from the Department of State and the United States Information Agency. Transfer
of the Mining Enforcement and Safety Administration from the Interior Department to the Labor
rj
r
3
t
t
l
f
l
f
H
Subject to later distribution.
435
SUMMARY TABLES
Table 9. BUDGET FINANCING AND OUTSTANDING DEBT
(In millions of dollars)
BUDGET FINANCING
1977
actual
Budget surplus or deficit ( - )
Deficit ( - ) , off-budget Federal entities
Total deficit ( - )
Means offinancingother than borrowing from the public:
Decrease or increase (—) in cash and monetary assets
Increase or decrease (—) in liabilities for:
Checks outstanding, etc.1
Deposit fund balances
Seigniorage on coins
Total, means of financing other than borrowing from the
public
1979
estimate
-45,040
-61,847
-60,586
-8,693
-11,514
-12,538
-53,733
-73,361
-73,124
—2,209
7,104
1,765
253
407
222
-518
553
-142
-224
490
217
7,361
124
_.
Total requirements for borrowing from the public
1978
estimate
—53,516 —66,000 —73,000
Change in debt held by the public
53,516
Nonbank investors
Commercial banks
Federal Reserve System
66,000
73,000
39,935
5,279
8,302
OUTSTANDING DEBT, END OF YEAR
TQ
actual
Gross Federal debt:
Debt issued by Treasury
Debt issued by other agencies
Total gross Federal debt
634,701
11,678
698,840
10,298
776,805
8,778
866,400
7,268
646,379
709,138
785,583
873,668
148,052
498,327
157,295
551,843
167,740
617,843
182,826
690,843
96,702
401,625
105,004
446,839
Held by:
Government agencies
The public
Federal Reserve System
Others
DEBT SUBJECT TO STATUTORY LIMITATION, END OF YEAR
Debt issued by Treasury
Treasury debt not subject to limitation
Agency debt subject to limitation..
Notes not part of Federal debt but included in debt
limit*
Total debt subject to statutory limitation
3
634,701
—613
1,713
698,840
—611
1,714
776,805
—611
1,711
866,400
—611
1,738
20
20
20
20
635,822
699,963
777,926
867, 547
1
Includes military payment certificates, accrued interest (less unamortized discount) on Treasury
debt,
and as offset certain collections in transit.
2
Almost entirely District of Columbia stadium bonds. See Special Analysis E (or further explanation.
' The statutory debt limit is permanently established at $400 billion. Public Law 95—120 temporarily increased the statutory debt limit to $752 billion through Mar. 31, 1978. Legislation is required to change the limitation
436
THE BUDGET FOR FISCAL YEAR 1979
Table 10. BUDGET RECEIPTS BY SOURCE (in millions of dollars)
Source
1977
actual
Individual income taxes:
Withheld
Other
Proposed legislation
Gross individual income taxes
Refunds
Proposed legislation
Earned income credits in excess of tax liabilities
Net individual income taxes
Corporation income taxes
_•_.
Proposed legislation
Refunds
Net corporation income taxes
1978
estimate
1979
estimate
144,857
42,062
168,159
47,108
-1,406
202,496
57,674
-28,857
186,919
-29,293
—901
213,861
-33,840
—246
—947
231,313
-38,075
—2,261
—900
156,725
178,828
190,077
60,057
64,817
75,536
-5,164
—550
-5,318
-7,489
-5,560
54,892
58,949
62,487
68,032
8,786
13,484
1,908
73, 336
12,204
16,588
1,858
83,062
14,568
19,926
2,053
92,210
103,986
119,609
9,252
1,875
11,600
2,600
Social insurance taxes and contributions (trust funds):
Employment taxes and contributions:
Old-age and survivors insurance
Disability insurance
Hospital insurance
Railroad retirement
Total employment taxes and contributions
Unemployment insurance:
State taxes deposited in Treasury !
Federal unemployment tax receipts 1
Proposed legislation
Railroad unemployment tax receipts 1
185
220
13,800
2,900
—600
222
11,312
14,420
16,322
Contributions for other insurance and retirement:
Supplementary medical insurance
Federal employees'retirement—employee contributions.-Other retirement contributions2
2,193
2,915
59
2,408
3,246
62
2,631
3,265
62
Total contributions for other insurance and retirement..
5,167
5,716
5,958
108,688
124,122
141,889
3,793
1,396
18
180
20
-112
3,835
1,448
20
180
21
-114
3,878
1,503
21
181
21
-116
5,295
5,390
5,488
Total unemployment insurance
Total social insurance taxes and contributions
Excise taxes:
Federal Funds:
Alcohol taxes:
Distilled spirits
Beer
Rectification tax
Wines
..........
Special taxes in connection with liquor occupations
Refunds
Total alcohol taxes
See footnotes at end of table.
SUMMARY TABLES
437
Table 10. BUDGET RECEIPTS BY SOURCE (in millions of dollars)—Continued
Source
1977
actual
1978
estimate
1979
estimate
Excise taxes—Continued
Federal Funds—Continued
Tobacco taxes:
Cigarettes
Cigars
Cigarette papers and tubes
Other
Refunds
Total tobacco taxes
Manufacturers' excise taxes:
Gasoline
Firearms, shells, and cartridges
Fishing rods, creels, etc
Pistols and revolvers
Bows and arrows
Other
Proposed legislation
Refunds
Proposed legislation
_
_
2,358
37
1
2
-5
2,413
36
1
2
-5
2,471
34
1
3
-6
2,393
2,447
2,503
33
55
25
13
4
-3
34
60
28
15
5
35
66
32
17
5
-16
150
-12
500
-12
3
112
280
646
1,709
1,503
7
7
2
81
39
1
7
7
2
80
46
1
1,700
-16
—12
1,310
—955
8
7
2
79
53
1
7,874
-17
—318
3,318
8,044
._
Total manufacturers' excise taxes
Miscellaneous excise taxes:
General and toll telephone and teletype service
Proposed legislation
Wagering taxes, including occupational taxes
Coin-operated gaming devices
Employee pension plans
Tax on foundations
Foreign insurance policies
Other
Proposed legislation
Refunds
Proposed legislation
Total miscellaneous excise taxes
Retailers' excise taxes:
Other
Proposed legislation
-15
1,831
*
22
47
22
47
17
200
50
9,648
11,657
16,778
Total retailer's excise taxes
Undistributed Federal tax deposits and unapplied collections
Total Federal fund excise taxes
See footnotes at end of table.
438
THE BUDGET FOR FISCAL YEAR 1979
Table 10. BUDGET RECEIPTS BY SOURCE (in millions of dollars)—Continued
Source
1977
actual
Trust funds:
Highway:
Gasoline
Trucks, buses, and trailers
Proposed legislation
Tires, innertubes, and tread rubber..
Diesel fuel used on highways
Use-tax on certain vehicles
Truck parts and accessories
..
Lubricating oils
Refunds
....
Proposed legislation
4,364
708
4,675
790
—9
897
593
277
221
114
-140
6,709
7,086
7,418
1,007
1,070
51
_
56
57
22
1
-2
64
67
60
26
1
-2
1,179
—295
71
—28
72
64
28
1
-2
1,287
1,089
120
190
7,900
8,493
8,697
17,548
20,150
25,475
7,327
5,618
6,067
5,150
5,792
6,390
253
5,908
279
6,200
296
6,500
—200
59
31
73
—13
30
53
65
28
73
39
36
61
*
*
68
28
75
160
37
45
11
*
234
303
426
813
454
240
165
101
-135
-.
_
_._
_
___
Total airport and airway trust fund
1,191
Abandoned mine reclamation fund
Total trust fund excise taxes
Total excise taxes
Estate and gift taxes
Customs duties
1979
estimate
4,529
745
—9
851
516
281
200
113
-136
—4
Total highway trust fund
Airport and airway:
Transportation of persons
Proposed legislation
Waybill t a x _ . . r . . .
Proposed legislation
Tax on fuels
International departure tax
Aircraft registration fees
Tires and innertubes
Refunds
1978
estimate
3
Miscellaneous receipts:
Miscellaneous taxes
Deposit of earnings, Federal Reserve System
Proposed legislation
Fees for permits and regulatory and judicial services:
Immigration, passport, and consular fees
Patent and copyright fees
Registration and filing fees
Import fees on crude oil and petroleum products
Miscellaneous fees for permits, licenses, etc
Miscellaneous fees for regulatory and judicial services
Proposed legislation
Fees for legal and judicial services
Total fees for permits and regulatory and judicial
services
See footnotes at end of table.
SUMMARY
TABLES
439
Table 10. BUDGET RECEIPTS BY SOURCE (in millions of dollars)—Continued
Source
1977
actual
Fines, penalties, and forfeitures
War reparations and recoveries under military occupation
Gifts and contributions
Refunds
Total miscellaneous receipts
Total budget receipts
__..
1978
estimate
1979
estimate
103
2
31
-1
110
3
33
145
3
32
6,531
6,928
7,203
356,861
400,387
439,588
240,412
152,763
-36,313
267,889
168,490
-35,992
289,095
187,991
-37,497
MEMORANDUM
Federalfunds
Trustfunds_
Interfund transactions
*$500 thousand or less.
1
Deposits by States are State payroll taxes that cover the benefit part of the program. Federal
unemployment tax receipts cover administrative costs at both the Federal and State level. Railroad
unemployment tax receipts cover both the benefits and administrative costs of the program for
the3 railroads.
Represents employer and employee contributions to the civil service retirement and disability
fund for covered employees of Government-sponsored, privately owned enterprises and the District
of 8 Columbia municipal government.
Includes both Federal and trust funds. Trust fund amounts in miscellaneous receipts are: 1977.
$42 million; 1978, $48 million; and 1979. $48 million.
Note.— Estimates for 1978 and 1979 include effects of proposed legislation.
440
THE BUDGET FOR FISCAL YEAR
1979
Table 11. OFFSETTING RECEIPTS BY TYPE (in millions of dollars)
Type
1977
1978
1979
INTRAGOVERNMENTAL TRANSACTIONS
Intrabudgetary transactions:
Federal intrafund transactions:
Interest on Government capital in enterprises
Other
_
1,500
30
1,662
135
1,843
273
1,530
1,797
2, 116
1,208
23
1,681
6
1.377
4
1.231
1,687
1,381
2,760
3,484
3,498
236
622
5,053
803
250
7,444
3,442
15
228
656
6,383
717
250
7,537
600
31
230
667
6,853
770
313
8,510
6,655
119
6,855
188
23,445
6,855
143
24,378
178
2
165
141
180
165
141
24,820
23,610
24.518
2,192
2,495
2,508
1,152
18
1,272
20
1,386
21
3,362
3,786
3,915
8,131
8,595
9,064
Total interfunds undistributed by agency and function
11,493
12,381
12,979
Total interfund transactions.,.
36,313
35,992
37,497
Total intrabudgetary transactions _
39,073
39,476
40,995
Total Federal intrafunds
Trust intrafund transactions:
1
Railroad retirement/social security
Other
Total trust intrafunds
_.
___
_
Total intrafund transactions
Interfund transactions:
Distributed by agency and function:
Federal fund payments to trust funds:
Contributions to insurance programs:
Old-age and survivors insurance
Military service credits, various programs
Supplementary medical insurance
Hospital insurance
_
Railroad dual benefits
....
Supplementary retirement contributions
Unemployment insurance..
_
Other
Miscellaneous contributions:
State and local government fiscal assistance
Other
_
_
_
__
Subtotal
Trust fund payments to Federal funds:
Charges for services to trust funds..
Other
Subtotal
Total interfunds distributed by agency and function
24.639
37
Undistributed by agency and function:
Employer share, employee retirement:
Civil service retirement and disability insurance
Old-age, survivors, disability, and hospital insurance
(contribution as employer) 2 ....
Other Federal employees retirement
Total employer share, employee retirement
Interest received by trust funds
See footnotes at end of table.
SUMMARY TABLES
441
Table 11. OFFSETTING RECEIPTS BY TYPE (in millions of dollars)-Continued
Type
INTRAGOVERNMENTAL
1977
actual
1978
estimate
1979
estimate
TRANSACTIONS—Con.
Receipts from off-budget Federal entities:
Distributed by agency and function:
Interest on loans to Government-owned enterprises
Surplus income, Federal Financing Bank
2,098
143
2,716
4,098
Total distributed by agency and function
2,241
2,716
4,098
1,186
1,238
1,242
3,427
3,954
5,340
42,501
43,430
46,335
Undistributed by agency and function:
Employer share, employee retirement.
_
_
Total receipts from off-budget Federal entities
Total intragovernmental transactions
PROPRIETARY RECEIPTS FROM THE PUBLIC
Distributed by agency and function:
Interest:
Interest on loans, Foreign Assistance Act
Interest on foreign military credit sales
Interest on loans to United Kingdom
_
Other interest on foreign loans and deferred foreign collections.
3
Other interest (domestic-civil) ____
_._
Other interest (domestic-national defense)
229
83
11
98
189
8
273
85
56
131
252
9
303
85
57
128
316
9
618
806
898
13
2
2
7
79
15
16
80
\7
27
95
17
Total rents
101
113
139
3
401
410
498
953
_
652
31
43
1,106
498
326
16
44
1,156
558
422
15
47
1,680
1.990
2,199
484
513
505
503
467
586
997
1,008
1,053
Total interest
Dividends and other earnings
_
Rents:
Rent and bonuses from land leases, etc
Rent of land and other real property 3
Rent of equipment and other personal property__
Royalties
Sale of products:
Sale of timber and other natural land products 3
Sale of minerals and mineral products
Sale of power and other utilities
Sale of other products
Recovery of mint manufacturing expense
Total sale of products
__
Fees and other charges for services and special benefits:
Veterans life insurance (trust funds)
Other 3 .
Total fees and other charges
See footnotes at end of table.
442
THE BUDGET FOR FISCAL YEAR 1979
Table 11. OFFSETTING RECEIPTS B Y TYPE (in millions of dollars)—Continued
Type
1977
actual
1978
estimate
1979
estimate
PROPRIETARY RECEIPTS FROM THE PUBLIC—Con.
Distributed by agency and function—Continued
Sale of Government property:
Sale of land and other real property 3
_.
Sale of equipment and other personal property:
Sale from the stockpile of strategic and critical materials—.
Military assistance program sales (trust fund)
Other
.._
1
Profit on the sale of gold
__
3
Sale of scrap and salvage material
_
Total sale of property.
37
36
40
148
9,369
14
*
2
131
8,700
37
242
9,200
12
-25
89
9,570
8,879
9,583
281
201
87
205
319
199
79
74
165
339
198
74
76
141
774
837
828
160
331
244
14,319
14,377
15,444
1,569
805
1,060
940
939
861
2,374
2,000
1,800
16,693
16,377
17,244
59,194
59,807
63,579
Realization upon loans and investments:
Dollar repayments of loans, Agency for International Development
Foreign military credit sales
Dollar conversion of foreign currency
Repayment of loans to United Kingdom
___
Total realization upon loans and investments
Recoveries and refunds
3
__
7
Deposits in clearing accounts
Total proprietary receipts from the public distributed by
agency and function
Undistributed by agency and function:
Rents and royalties on the Outer Continental Shelf:
Rents and bonuses
Royalties
Total proprietary receipts from the public undistributed by
agency and function
Total proprietary receipts from the public
Total offsetting receipts
4
*$500 thousand or less.
1
Interchange receipts between the social security and railroad retirement funds place the social
security funds in the same position they would have been if there were no separate railroad retirement
system. Interchange receipts between Federal retirement funds occur when an employee transfers
from coverage by one system to coverage by another system.
3
Includes provision for covered Federal civilian employees and military personnel.
8
Includes both Federal funds and trust funds.
4 Con8i8U
°f:
Federalfunds
Trust funds
—
--
1977
actual
6,308
10,386
1978
estimate
6,611
9,766
1979
esiimate
6,944
10,300
SUMMARY TABLES
443
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY
(In millions of dollars)
Function and department or other unit
050
1977
actual
1978
estimate
1979.
estimate
NATIONAL DEFENSE
051
Department of Defense—Military :
Military personnel
Retired military personnel
Operation and maintenance
Procurement
Research, development, test, and evaluation
Military construction-__
Other i
Allowances
Deductions for offsetting receipts
_
Total 051
053
._.
27,282
9,240
34,869
29,545
11, 338
1,633
1,630
_
27,211
10,149
37, 376
31,928
12,468
2,677
1,797
2,305
—183
—271
-345
108,425
115,264
125,567
2,089
2,512
2,829
17
112
218
28
9
6
8
-149
35
9
6
7
-131
44
10
7
10
-242
-81
38
45
Atomic energy defense activities:
Department of Energy.
__
054 Defense-related activities:
General Services Administration
Other independent agencies:
Central Intelligence Agency
Intelligence Community Staff
Renegotiation Board
Selective Service System
__.
Deductions for offsetting receipts..
Total 054
2
Deductions for offsetting receipts
Total national defense
150
26,118
8,238
32,108
27,922
10,439
2,204
1,579
_.
-*
-2
-2
110,432
117,813
128,439
332
169
47
4
80
-6
5,703
923
69
36
88
-18
7,344
806
71
35
95
-17
5,626
6,801
8,335
988
-312
891
-302
838
-297
676
589
541
INTERNATIONAL AFFAIRS
151
Foreign economic and financial assistance:
Funds appropriated to the President*..
Department of Agriculture
Department of State
Department of Transportation 1
Other independent agencies: Action 1
Deductions for offsetting receipts
Total 151
152
Military assistance:
Funds appropriated to the President
Deductions for offsetting receipts
Total 152
See footnotes at end of table.
444
THE BUDGET FOR FISCAL YEAR
1979
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
150 INTERNATIONAL AFFAIRS—Continued
153
Conduct of foreign affairs:
Funds appropriated to the President
Department of State 1 ...
Other independent agencies:
Arms Control and Disarmament Agency
Foreign Claims Settlement Commission
International Trade Commission
Deductions for offsetting receipts
Total 153
154 Foreign information and exchange activities:
Department of State
Other independent agencies:
Board for International Broadcasting
International Communication Agency l
Japan-United States Friendship Commission *
Deductions for offsetting receipts
21
1,123
24
1,309
25
1,341
12
1
17
1
16
1
12
-115
12
-141
13
-156
1,054
1,222
1,240
83
414
2
_*
10 .
_
57
333
_-_
—*
76
374
1
_*
400
451
500
8, 625
11,300
12,300
-9,369
-8,720
660
-9,220
-744
2,580
3,740
Deductions for offsetting receipts2
-425
-540
-555
Total international affairs
6,587
11,102
13,801
Total 154
155
International financial programs:
Funds appropriated to the President*
Other independent agencies: Export-Import Bank of the
United States
Deductions for offsetting receipts
Total 155
250 GENERAL SCIENCE, SPACE, AND TECHNOLOGY
251 General science and basic research:
Department of Energy.._
Other independent agencies:
National Science Foundation 1
Smithsonian Institution J
351
397
426
783
2
868
2
939
2
1,136
1,267
1,368
253 Space flight:
National Aeronautics and Space Administration.
2,138
2,198
2,247
254 Space science, applications, and technology:
National Aeronautics and Space Administration.
964
1,056
1,210
255 Supporting space activities:
National Aeronautics and Space Administration J_
Deductions for offsetting receipts
341
-2
393
340
369
_*
369
393
-2
-2
-2
4,576
4,889
5,216
Total 251
Total 255
Deductions for offsetting receipts
2
Total general science, space, and technology _
See footnotes at end of table.
SUMMARY TABLES
445
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
270 ENERGY
271 Energy supply:
Funds appropriated to the President
Department of Agriculture
Department of Defense—Civil
Department of Energy 1
Department of the Interior.
Environmental Protection Agency
Deductions for offsetting receipts
Total 271
274
431
22
3,653
__
95
-599
__
24
5
3,704
210
131
-754
3,400
186
115
-856
3,603
3,320
2,869
242
692
150
1,010
500
242
842
1,510
3,595
—*
4,255
—*
445
3,595
4,255
462
516
675
249
292
331
711
808
1,006
-23
-26
-95
4,978
8,539
9,544
188
2,512
1,004
12
219
2,757
712
26
176
2,482
643
13
*
*
19
—72
*
*
22
—61
*
*
17
—48
3,664
3,675
3,284
_
_
_
272 Energy conservation:
Department of Energy
Department of the Treasury
Total 272
_
_
_
_
25
Emergency energy preparedness:
Funds appropriated to the President
Department of Energy.Deductions for offsetting receipts
367
78
_
Total 274..
276 Energy information, policy, and regulation:
Department of Energy
Other independent agencies:
Nuclear Regulatory Commission.
Total 276
2
Deductions for offsetting receipts _
_
Total energy.
300 NATURAL RESOURCES AND ENVIRONMENT
301 Water resources:
Department of Agriculture l
Department of Defense-Civil K
Department of the I n t e r i o r 1 . . .
_.
Department of State
Other independent agencies:
Delaware River Basin Commission
Susquehanna River Basin Commission..
Water Resources Council!
Deductions for offsetting receipts
Total 301
See footnotes at end of table.
260-000 O - 78 - 29
_
- .
446
THE BUDGET FOR FISCAL YEAR 1979
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
300 NATURAL RESOURCES AND ENVIRONMENT—Con.
302 Conservation and land management:
Department of Agriculture 1 ..
Department of Commerce
_
Department of the Interior l
__
Department of State
_
Other independent agencies:
Marine Mammal Commission
Deductions for offsetting receipts
_
Total 3 0 2 . . . . .
303 Recreational resources:
Department of Agriculture.
_
Department of Defense—Civil
1
Department of the Interior
Other independent agencies:
Advisory Council on Historic Preservation
Deductions for offsetting receipts.
Total 303.
304 Pollution control and abatement:
Department of the Interior
_
Department of Transportation.
Environmental Protection Agency 1
Other independent agencies:
Interstate Commission on the Potomac River Basin.
Other temporary commissions.
Deductions for offsetting receipts
306 Other natural resources:
Department of Commerce l
Department of the Interior J
Deductions for offsetting receipts.
Total 306
2
Total natural resources and environment
350
2,186
51
528
6
1,958
57
565
7
1
—740
1
—645
1
-832
1,566
2,127
1,755
3
3
1,232
4
7
1,615
3
4
1,762
1
-2
1,236
1
-2
2
-3
1,624
1,769
__*
7
5,372
*
2
_*
187
5,513
*
4
_*
2,691
5,381
5,704
596
502
-11
654
570
-12
716
626
-12
1,087
1,211
1,331
-786
-1,084
-1,178
9,457
12,935
12,664
1,351
2,541
5,920
1,135
-51
1,278
-55
40
1,309
-67
1,084
1,223
1,282
-11
-3
-6
2,424
3,761
7,197
*
22
2,669
*
Total 304.
Deductions for off setting receipts
1,875
38
386
6
AGRICULTURE
351 Farm income stabilization:
Department of Agriculture1
352 Agricultural research and services:
Funds appropriated to the President
Department of Agriculture 1 ..
Deductions for offsetting receipts
Total 352
_
Deductions for offsetting receipts2
Total agriculture
See footnotes at end of table.
_..
_
SUMMARY TABLES
447
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
370 COMMERCE AND HOUSING CREDIT
371 Mortgage credit and thrift insurance:
Department of Agriculture
_
Department of Housing and Urban Development
Other independent agencies: Federal Home Loan Bank Board
Total 371
372 Postal Service:
Other independent agencies:
Postal Service
374 Federal Fianancing Bank:
522
1,522
747
1.313
—10
448
2,758
2,044
2.049
3,206
2,266
1,787
1,830
10
450
8
1
10
525
7
5
9
724
8
1
13
57
55
15
64
63
16
67
66
3
3
56
692
2
—29
3
1
63
824
*
-31
-32
1,318
1,548
1,564
-4
-4
-3
5,481
5,381
6,597
5,394
2
9,326
12,551
128
58
12
67
65
448
19
69
163
5,593
9.907
12,803
2,564
378
105
2,787
441
100
3.091
522
96
3,047
3,328
3.709
-143 .
Deductions for offsetting receipts-
-143 .
Total 374_
376 Other advancement and regulation of commerce:
Legislative branch
_
Department of Commerce1
_
Department of Housing and Urban Development
General Services Administration
.
_
Other independent agencies:
Commodity Futures Trading Commission
Federal Communications Commission
Federal Trade Commission
..
National Center for Productivity and Quality of Working
Life
_
National Institute of Building Sciences
Securities and Exchange Commission
Small Business Administration.
_
Other temporary commissions
Deductions for offsetting receipts._
__
Total 376
Deductions for offsetting receipts
2
Total commerce and housing credit
400
65
637
TRANSPORTATION
401 Ground transportation:
Department of Agriculture (trust fund)
Department of Transportation1
Other independent agencies:
Washington Metropolitan Area Transit Authority
Interstate Commerce Commission
U.S. Railway Association
Total 401...
402 Air transportation:
Department of Transportation l
National Aeronautics and Space Administration
Other independent agencies: Civil Aeronautics Board.
Total 402
_
See footnotes at end of table.
_
_
448
THE BUDGET FOR FISCAL YEAR
1979
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
400 TRANSPORTATION—Continued
403 Water transportation:
Department of Commerce 1
_
Department of Transportation 2
Other independent agencies:
Federal Maritime Commission
Deductions for off setting receipts
_
Total 403
407 Other transportation:
Department of Transportation
Other independent agencies:
National Transportation Safety Board
Other temporary commissions
_
Total 407
_
Deductions for offsetting receipts
2
Total transportation
450
COMMUNITY
AND REGIONAL
_
_ _.
Total 451
452 Area and regional development:
Funds appropriated to the President
Department of Agriculture
_
Department of Commerce *
l
Department of the Interior
Other independent agencies:
Appalachian Regional Commission *
_
Joint Federal-State Land Use Planning Commission for
Alaska i
Tennessee Valley Authority.
Deductions for offsetting r e c e i p t s . . . .
_
Total 452
453 Disaster relief and insurance:
Funds appropriated to the President
Department of Agriculture.
Department of Housing and Urban Development
Other independent agencies: Small Business Administration. Total453
519
1,386
538
1,494
9
—*
10
—1
11
—*
1.683
1,914
2,042
66
70
70
14
3
15
2
16
83
87
86
-42
-86
-66
10,363
15,150
18,573
285
15
3,637
265
14
4,403
275
18
4,630
*
2
30
*
2
21
*
2
27
DEVELOPMENT
451 Community development:
Department of Agriculture
_
Department of Commerce
Department of Housing and Urban Development
Other independent agencies:
Commission of Fine Arts
_
National Capital Planning Commission
_
Pennsylvania Avenue Development Corporation
See footnotes at end of table.
388
1,286
3,969
4,706
4,952
118
640
6,814
734
313
495
753
802
344
531
777
858
6
6
6
1
126
-287
1
139
-403
1
135
-393
8,153
2,106
2,259
300
10
82
291
300
10
99
1,515
200
10
123
190
684
1,924
523
SUMMARY TABLES
449
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
450 COMMUNITY AND REGIONAL DEVELOPMENT—
Continued
Deductions for offsetting receipts 2_
Total community and regional development
500
EDUCATION,
TRAINING,
SOCIAL SERVICES
EMPLOYMENT,
Total 501
502 Higher education:
Department of Health, Education, and Welfare
Department of Housing and Urban Development
Harry S. Truman Scholarship Foundation l
_
___
Total 502
503 Research and general education aids:
Legislative branch !
Department of Health, Education, and Welfare 1
Other independent agencies:
Corporation for Public Broadcasting
National Commission on Libraries and Information
Science 1
National Foundation on the Arts and the Humanities 1
National Foundation on the Arts and the Humanities *
Smithsonian Institution
Deductions for offsetting receipts
Total 5 0 3 . . .
_
Total 504
505 Other labor services:
Department of Labor *
Other independent agencies:
Committee for Purchase from the Blind and other Severely
Handicapped
Federal Mediation and Conciliation Service
National Labor Relations Board
National Mediation Board
Total 505.
See footnotes at end of table.
-17
-18
12,790
8,719
7,716
6,028
237
6,426
260
8,172
271
6,265
6,686
8,443
3,732
13
20
4,290
11
4,588
3,765
4,301
4,588
117
542
131
608
164
618
103
119
120
4
210
112
—10
1
124
137
121
—3
1
150
162
128
—3
1,078
1,238
1,339
370
13,599
365
4,459
365
11,922
13,969
4,824
12,287
277
331
363
*
21
81
4
*
22
93
4
*
23
100
4
383
451
490
AND
501 Elementary, secondary, and vocational education:
Department of Health, Education, and Welfare
Department of the Interior
504 Training and employment:
Department of Health, Education, and Welfrae
Department of Labor!
-16
450
THE BUDGET FOR FISCAL YEAR 1979
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
1977
1979
1978
500 EDUCATION, TRAINING, EMPLOYMENT, AND
SOCIAL SERVICES—Continued
506 Social services:
Department of Health, Education, and Welfare
Department of Housing and Urban Development
Department of the Treasury
Other independent agencies:
ACTION
Cabinet Committee on Opportunities for Spanish-Speaking
people
_ _
_
__
Community Services Administration l
_
Consumer Protection Activities.
Office of Consumer Representation. __
Total 506__
__
Deductions for offsetting receipts
2
Total education, training, employment, and social services..
4,181
3
4,069
5
543
5,781
8
109
120
131
631
598
538
-12
15
4,924
5,335
6,461
-7
-5
-5
30,377
22,829
33,604
41,652
452
-5,997
48,524
506
-7,243
55,145
606
-7,764
36,107
41,788
47,987
2,654
2,959
3,043
847
868
669
550 HEALTH
551 Health care services:
Department of Health, Education, and Welfare1
Other independent agencies: Civil Service Commission*
Deductions for offsetting receipts
_
Total 551
552 Health research:
Department of Health, Education, and Welfare
553 Education and training of health care work force:
Department of Health, Education, and Welfare
_
554 Consumer and occupational health and safety:
Department of Agriculture
_
Department of Health, Education, and Welfare
1
Department of the Interior
Department of Labor
Other independent agencies:
Consumer Product Safety Commission
Federal Mine Safety and Health Review Commission
Occupational Safety and Health Review Commission
Deductions for offsetting receipts
Total 554
Deductions for offsetting receipts
Total health
See footnotes at end of takle.
2
244
267
271
253
99
130
295
51
204
306
286
40
7
-4
41
2
7
-1
41
5
8
-1
—
770
866
917
._.
-10
-12
-12
40,368
46,469
52,604
SUMMARY TABLES
451
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
600
1977
actual
1978
estimate
1979
estimate
INCOME SECURITY
601 General retirement and disability insurance:
Department of Health, Education, and Welfare 1 ..
Department of Labor!
Other independent agencies:
Railroad Retirement Board i
Other temporary commissions
_
Deductions offsetting receipts.
82,848
33
91,431
31
103,307
37
3,847
-2,174
4,223
*
-2,672
4,215
1
-2,451
84,553
93,013
105,109
*
67
307
176
*
6
292
191
*
7
228
208
16,480
—58
17,676
—30
19,242
-31
16,972
18,136
19,654
20,299
—3,442
15,960
—600
17,027
16,857
15,360
17,027
8,880
12,451
28,624
_
9,027
12,137
32,291
167
9,267
12,901
25.569
1.333
163
65
200
50
25
50,184
53,872
49,096
*
—1
—1
168,566
180,381
190,885
701 Income security for veterans:
Veterans Administration 1 ..
9,940
10,619
11,004
Deductions for offsetting receipts
-486
-507
9,454
10,112
10,535
3,987
—3
3,984
2,696
—31
2,665
2,148
—55
2,093
Total 6 0 1 . .
602 Federal employee retirement and disability:
Legislative branch (trust fund)
_
The Judiciary *
Department of Labor
Department of State (trustfund)
Other independent agencies: Civil Service Commission (trust
fund)
Deductions for offsetting receipts
Total 602
603 Unemployment compensation:
Department of Labor i
Deductions for offsetting receipts
._
Total 603
604 Public assistance and other income supplements:
Department of Agriculture.._
._
_
Department of Health, Education, and Welfare 1 _
Department of Housing and Urban Development
Department of the Treasury
Other independent agencies:
Community Services Administration
Railroad Retirement Board
_
Total 604
Deductions for offsetting receipts 2
_
Total income security
700
VETERANS BENEFITS AND SERVICES
Total 701
702 Veterans education, training, and rehabilitation:
Veterans Administration 1
Deductions for offsetting receipts
Total 702
See footnotes at end of table.
.._
-469
452
THE BUDGET FOR FISCAL YEAR 19 79
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
700
VETERANS BENEFITS AND
705 Other veterans benefits and services:
Department of Defense—Civil 1
Department of the Treasury (trust fund)
Veterans Administration1
Other independent agencies: American Battle Monuments
Commission l
Deductions for offsetting receipts
Total 705
2
Total veterans benefits and services
750
1978
estimate
1979
estimate
SERVICES—Continued
703 Hospital and medical care for veterans:
Veterans Administration
Deductions for offsetting receipts
1977
actual
5,074
5,657
5,795
22
*
531
22
*
611
627
6
-1
6
-2
6
-2
558
637
653
-1
-3
-3
19,069
19,068
19,074
30
12
951
609
55
16
1,050
687
72
18
1.077
726
22
ADMINISTRATION OF JUSTICE
751 Federal law enforcement activities:
Department of Health, Education, and Welfare
Department of Housing and Urban Development
Department of Justice
Department of the Treasury
Other independent agencies:
Administrative Conference of the United States
Commission on Civil Rights
Equal Employment Opportunity Commission
Other Temporary Commissions
Total 751
752 Federal litigative and judicial activities:
Legislative branch
The Judiciary J
Department of Justice
Other independent agencies:
Indian Claims Commission
Legal Services Corporation
Deductions for offsetting receipts
Total 752
753 Federal correctional activities:
Department of Justice 1
754
1
1
10
71
*
11
91
1
11
110
1,685
1,911
2.015
7
398
333
8
464
358
9
486
384
2
125
-2
2
205
255
863
1,037
1,133
297
308
353
758
656
651
-2
-8
-8
3,601
3,904
4,144
Criminal justice assistance:
Department of Justice
Deductions for offsetting receipts 2
Total administration of justice
See footnotes at end of table.
SUMMARY TABLES
453
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
800
GENERAL
801
Total 801
802 Executive direction and management:
Executive Office of the President
Funds appropriated to the President
General Services Administration
Total 802
Deductions for offsetting receipts.
Total 803
914
947
—7
—6
—6
871
908
941
76
1
79
1
1
83
77
81
2,142
-179
2,372
-166
2,520
-142
1,963
2,207
2,378
469
5
_*
279
365
475
279
365
*
7,407
*
-7,298
*
7,516
*
8,478
- 7 , 397
-8,355
109
119
124
48
69
221
190
3
22
73
291
245
3
41
304
187
3
15
6
*
20
8
20
8
*
1
1
*
2
2
*
2
13
*
-18
*
-22
-24
538
644
632
78
1
3
1
General property and records management:
General Services Administration J
Other independent agencies: Other temporary commissions.__
Deductions for offsetting receipts
Total 804_
Central personnel management:
Other independent agencies:
Advisory Committee on Federal Pay_
Civil Service Commission
Other temporary commissions
Deductions for offsetting receipts
Total 805_
806
878
Central fiscal operations:
Department of the Treasury * _ _
805
1979
estimate
Legislative functions:
Deductions for offsetting receipts
804
1978
estimate
GOVERNMENT
Legislative Branch!
803
1977
actual
Other general government:
Legislative branch
Department of Defense—Civil
Department of the Interior 1
Department of the Treasury 1
General Services Administration
Other independent agencies:
Civil Service Commission
Federal Election Commission
American Revolution Bicentennial Administrationl
Other historical and memorial agencies l
Advisory Commission on Intergovernmental Relations l
Other temporary commissions
National Commission on the Observance of International
Women's Year 1975 l
Deductions for offsetting receipts
Total 806
77
Deductions for offsetting receipts 2
-186
-180
-159
Total general government
3,851
4,055
4,361
See footnotes at end of table.
454
THE BUDGET FOR FISCAL YEAR 1979
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
850
1977
actual
1978
estimate
1979
estimate
GENERAL PURPOSE FISCAL ASSISTANCE
851 General revenue sharing:
Department of the Treasuryl
Deductions for offsetting receipts
13,316
-6,657
13,717
—6,855
13,717
—6,855
6,658
6,863
6,862
50
5
*
268
1,973
401
—84
226
6
*
413
1,836
392
-44
242
5
•
494
8.593
458
—22
Total 852
2.614
2.829
9.770
Total general purpose fiscal assistance
9,272
9.691
16.632
41.900
48.600
55.400
325
1
-4,134
331
1
-5,091
336
-6.746
-3,807
-4,759
-6.410
38,092
43,841
48,990
Total 851
852 Other general purpose fiscal assistance:
Department of Agriculture
Department of Defense—Civil
Department of Energy
Department of the Interior
Department of the Treasury
Other independent agencies: District of Columbia
Deductions for offsetting receipts
_
.
900 INTEREST
901 Interest on the public debt:
Department of the Treasury
902 Other interest:
Department of the Treasury
General Services Administration.
Deductions for offsetting receipts..
Total 902
Total interestAllowances for:
Civilian agency pay raises...
Contingencies for other requirements
Undistributed offsetting receipts:
Employer share, employee retirement:
Interfund transactions
Receipts from off-budget Federal agencies
__
_.
_
_
_
1,150
3,000
-3,362
-1,186
-3,786
— 1,238
-3,915
— 1,242
Total, employer share, employee retirement-
-4,548
-5,024
-5,157
Interest received by trust funds
-8,131
-8,595
-9,064
Rents and royalties on the Outer Continental Shelf
-2,374
-2,000
-1,800
Total budget authority
465,231
502,907
568,172
353,749
147,795
-36,313
369,108
169,790
-35,992
414,768
190,902
-37.497
MEMORANDUM
Federal funds
Trust funds
Interfund transactions.
See footnotes at end of table.
SUMMARY TABLES
455
Table 12. BUDGET AUTHORITY BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
ADDENDUM
Budget authority of off-budget Federal entities:
270 ENERGY
271 Energy supply:
Department of Agriculture
149
44
9,534
13,843
15,865
400 TRANSPORTATION
401 Ground transportation:
United States Railway Association
126
18
23
450 COMMUNITY AND REGIONAL DEVELOPMENT
452 Area and regional development:
Department of Agriculture
142
159
199
9,951
14,064
16,087
475, H 2
516,971
584,259
370 COMMERCE AND HOUSING CREDIT
374 Federal Financing Bank:
Department of the Treasury
Budget authority, off-budget Federal entities.
Budget authority including off-budget Federal entities
*$500 thousand or less.
Includes both Federal and trust funds.
Excludes offsetting receipts which have been distributed by subfunction above.
1
3
456
THE BUDGET FOR FISCAL YEAR 1 9 7 9
Table 13. OUTLAYS B Y FUNCTION A N D AGENCY
(In milfionf of dollars)
Function and department or other unit
050
NATIONAL DEFENSE
051 Department of Defense— Military:
Military personnel
Retired military personnel
Operation and maintenance
__
Procurement
Research, development, test, and evaluation
Military construction
Other 1
Allowances
_.
_
Deductions for offsetting receipts
_.
25,715
8,216
30,587
18,178
9,795
1.914
1,427
054 Defense-related activities:
Department of Health, Education, and Welfare.
General Services Administration
Other independent agencies:
Central Intelligence Agency.
_
Intelligence Community Staff
Renegotiation Board
Selective Service System
Other temporary commissions
Deductions for offsetting receipts.Total 054
2
Deductions for offsetting receipts .
Total national defense
26,832
9,211
33,494
21,552
10,714
1,919
1,849
_.
-183
Total 051.
activities:
>3 Atomic energy defense
dele
053
Atomic of Energy
Department
150
1979
stimate
1978
1977
-271
26,866
10,122
36,454
24,208
11,861
1,976
1,770
2,288
-345
95,650
105,300
115,200
1,936
2,308
2,536
17
90
219
28
4
6
10
35
12
7
8
44
10
7
8
-149
-84
__*
-131
20
-242
45
-2
-2
107,626
117.779
3,222
856
52
14
77
-6
4,057
1,070
71
30
87
-18
4,166
1,069
66
29
93
-17
4,214
5,296
5,407
806
-312
759
-302
494
457
762
-297
465
97,501
INTERNATIONAL AFFAIRS
151 Foreign economic and financial assistance:
Funds appropriated to the President1
Department of Agriculture
_
_
Department of State
Department of Transportation *. _ _ _ _
Other independent agencies: Action l
Deductions for offsetting receipts
Total 151.
152 Military assistance:
Funds appropriated to the President.
Deductions for offsetting receipts
Total 152.
See footnotes at end of table.
SUMMARY TABLES
457
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
150
1977
actual
1979
estimate
INTERNATIONAL AFFAIRS—Continued
153 Conduct of foreign affairs:
Funds appropriated to the President
Department of State i
Other independent agencies:
Arms Control and Disarmament Agency
Foreign Claims Settlement Commission
International Trade Commission
___
Other temporary commissions
Deductions for offsetting receipts...
_
_
_
Total 153
154 Foreign information and exchange activities:
Department of State
Other independent agencies:
Board for International Broadcasting
„
International Communication Agency l
Japan-United States Friendship Commission 1
Deductions for offsetting receipts
_
Total 154
155 International financial programs:
Funds appropriated to the President 1
Other independent agencies: Export-Import Bank of the
United S t a t e s . . .
_
Deductions for offsetting receipts
Total 155
Deductions for offsetting receipts
2
Total international affairs
250
1978
estimate
21
1,052
24
1,203
25
1,312
12
1
11
-115
15
1
12
*
-141
16
1
13
_
-156
981
1,115
1,211
3
7
58
328
*
—*
73
366
1
—*
79
393
2
—*
386
443
480
8,210
8,500
9,500
340
-9,369
196
-8,720
404
-9,220
-819
-24
684
-425
-540
-555
4,831
6,747
7,691
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
251 General science and basic research:
Department of E n e r g y . . . . .
Other independent agencies:
National Science Foundation 1
Smithsonian Institution 1 ...
324
363
415
753
2
825
2
857
2
1,078
1,190
1,274
253 Space flight:
Nationo 1 Aeronautics and Space Administration
2,252
2,192
2,264
254 Space science, applications, and technology:
National Aeronautics and Space Administration _
1,006
1,018
1,150
255 Supporting space activities:
National Aeronautics and Space Administration x
Deductions for offsetting receipts
345
—2
358
—*
390
343
358
390
-._
Total 251
Total 255
_.
See footnotes at end of table.
458
THE BUDGET FOR FISCAL YEAR 1979
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
250
1978
estimate
1979
estimate
GENERAL SCIENCE, SPACE, AND TECHNOLOGY—
Continued
Deductions for offsetting receipts 2
Total general science, space, and technology
270
1977
actual
-~2
—2
—2
4,677
4, 757
5,077
107
22
2.637
95
1,003
-599
214
24
3.263
192
126
1,125
-754
113
25
3,280
187
126
1,239
-856
3.266
4,190
4,113
143
451
150
902
500
143
601
1,402
122
1
245
2,029
_*
3,285
_*
123
2,273
3,284
433
231
524
275
623
307
664
799
930
-23
-26
-95
4,172
7,837
9.634
206
2,308
770
11
328
2,551
818
24
200
2,568
630
21
*
*
18
—72
*
*
26
—61
*
*
20
—48
3.241
3,686
3.392
ENERGY
271 Energy supply:
Funds appropriated to the President
Department of Agriculture
Department of Energy l
Department of the Interior
Environmental Protection Agency
Other independent agencies: Tennessee Valley Authority
Deductions for offsetting receipts
Total 271
272 Energy conservation:
Department of Energy
Department of the Treasury
Total 272
274 Emergency energy preparedness:
Funds appropriated to the President. _
Department of Energy
Deductions for offsetting receipts
Total 274
276 Energy information, policy, and regulation:
Department of Energy
Other independent agencies: Nuclear Regulatory Commission
Total 276
Deductions for offsetting receipts
2
Total energy
300 NATURAL RESOURCES AND ENVIRONMENT
301 Water resources:
Department of Agriculture 1
Department of Defense—Civil J
Department of the Interior 1
Department of State
Other independent agencies:
Delaware River Basin Commission
Susquehanna River Basin Commission
Water Resources Council 1
Deductions for off setting receipts
Total 301
See footnotes at end of table.
SUMMARY TABLES
459
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Fu
1977
1978
1979
300 NATURAL RESOURCES AND ENVIRONMENT—Con.
302
Conservation and land management:
Department of Agriculture1
Department of Commerce
Department of the Interior !
Department of State
Other independent agencies: Marine Mammal Commission.__
Deductions for offsetting receipts
Total 302
303
Deductions for offsetting receipts
Total 303
Pollution control and abatement:
Department of the Interior
Department of Transportation
Environmental Protection Agency l
Other independent agencies:
Interstate Commission on the Potomac River Basin
Other temporary commissions
Deductions for offsetting receipts
Total 304
306
1,839
43
522
7
1
—740
—645
—832
1,279
2,079
1,579
3
2
1,010
4
6
1,314
4
4
1,538
*
1
*
1
*
-2
-3
1,014
1,323
1,545
*
9
4,270
8
4,937
57
5,554
*
*
*
2
*
4
—*
—*
—*
4,279
4,947
5,615
520
464
-11
629
558
-12
696
585
-12
973
1,175
1,268
-786
-1,084
-1,178
10,000
12,125
12,222
4,486
—1
7,865
*
4,180
4,485
7,865
4,180
Other natural resources:
Department of Commerce *
Department of the Interior l . __
Deductions for offsetting receipts.
Total 306
Deductions for offsetting receipts
2
Total natural resources and environment
350
2,201
31
484
6
1
Recreational resources:
Department of Agriculture
Department of Defense—Civil
Department of the Interior !
Other independent agencies:
Advisory .Council on Historic Preservation
Smithsonian Institution
Other temporary commissions
304
1,577
22
413
5
1
AGRICULTURE
351
Farm income stabilization:
Department of Agriculture 1
Other independent agencies: Farm Credit Administration
Total 351
See footnotes at end of table.
460
THE BUDGET FOR FISCAL YEAR 1979
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
350
1977
actual
1978
estimate
1979
estimate
AGRICULTURE—Continued
352 Agricultural research and services:
Funds appropriated to the President
Department of Agriculture *
1,103
1,300
40
1,285
—51
—55
—67
1,052
1,244
1,259
-11
-3
-6
5,526
9,106
5,433
100
—585
455
781
-93
1,267
_.
—852
-1,913
—19
—379
-360
—30
—945
-467
— 36
„__-.
-3,270
467
-274
372 Postal Service:
Other independent agencies: Postal Service
2,267
1,787
1,830
374 Federal Financing Bank:
Deductions for offsetting receipts
—143
Deductions for off setting receipts
Total 352
Deductions for offsetting receipts 2
Total agriculture
370 COMMERCE AND HOUSING CREDIT
371 Mortgage credit and thrift insurance:
Department of Agriculture
Department of Housing and Urban Development
Other independent agencies:
Federal Deposit Insurance Corporation (trust fund)
Federal Home Loan Bank Board
National Credit Union Administration
Total 371
Total 374
376 Other advancement and regulation of commerce:
Legislative branch,.
Department of Commerce1
.
Department of Housing and Urban Development
1
Department of the Treasury
General Services Administration
Other independent agencies:
Commodity Futures Trading Commission
Emergency Loan Guarantee Board.
Federal Communications Commission
Federal Trade Commission
,
National Center for Productivity and Quality of Working
Life
.-.— --:
National Institute of Building Sciences
Securities and Exchange Commission
Small Business Administration
Other temporary commissions
Deductions for offsetting receipts...
_
Total 376
Deductions for offsetting receipts 2
Total commerce and housing credit.
-143
9
443
10
—4
1
11
518
10
-1
5
9
669
14
-4
1
13
-5
56
52
15
2
66
62
16
2
1,118
3
1
66
547
*
-31
1,272
1,415
-4
-4
-3
-31
3,523
2.969
54
516
2
-29
66
64
3
65
543
-32
•
See footnotes at end of table.
=
SUMMARY TABLES
461
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
400
1977
actual
1978
estimate
1979
estimate
TRANSPORTATION
401
Ground transportation:
Department of Agriculture (trust fund)
Department of Housing and Urban Development
Department of Transportation x
Other independent agencies:
Washington Metropolitan Area Transit Authority.
Interstate Commerce Commission
United States Railway Association
Total 401
402
_.
__
„
Total 402
-
-—
403 Water transportation:
Department of Commerce!
Department of Defense—Civil
Department of Transportation *
Other independent agencies: Federal Maritime Commission-.
Deductions for offsetting receipts
Total 403
3
_
11,434
290
59
736
205
64
620
61
69
424
10,037
11,140
11,990
2,369
344
103
2,753
415
101
2,874
466
96
2,816
3,269
3,436
594
-1
1,148
8
547
1
1,349
10
532
2
1,402
10
—*
—1
—*
1,749
1,906
1,946
63
64
76
13
1
15
3
15
2
76
82
93
-42
-86
-66
14,636
16,310
17,399
122
15
5
3,380
297
18
260
18
3,707
3,677
*
2
1
*
2
25
*
2
34
3.526
4,049
3,991
Other transportation:
Department of Transportation
Other independent agencies:
National Transportation Safety Board
Other temporary commissions
Total 407
__..
2
Deductions for offsetting receipts ____
Total transportation
450
8
*
10,243
Air transportation:
Department of Transportation 1
National Aeronautics and Space Administration _
Other independent agencies: Civil Aeronautics Board.
407
1
1
8,950
___
COMMUNITY AND REGIONAL DEVELOPMENT
451
Community development:
Department of Agriculture.
_
Department of Commerce
Department of Health, Education, and Welfare
Department of Housing and Urban Development
Other independent agencies:
Commission of Fine Arts
National Capital Planning Commission
Pennsylvania Avenue Development Corporation
Total 451
See footnotes at end of table.
260-000 O - 78 - 30
462
THE BUDGET FOR FISCAL YEAR
1979
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
450
1977
actual
1978
estimate
1979
estimate
COMMUNITY AND REGIONAL DEVELOPMENT—
Continued
452 Area and regional development:
Funds appropriated to the President
Department of Agriculture
_
Department of Commerce1
_
2
Department of the Interior
_
Other independent agencies:
1
Appalachian Regional Commission
Joint Federal-State Land Use Planning Commission for
Alaska 1
Tennessee Valley Authority
_
Deductions for offsetting receipts
_
Total 452
_
_
_
453 Disaster relief and insurance:
Funds appropriated to the President
Department of Agriculture
.__
Department of Housing and Urban Development. _
Other independent agencies: Small Business Administration..
Total 453
Deductions for offsetting receipts2
Total community and regional development
EDUCATION, TRAINING, EMPLOYMENT, AND
SOCIAL SERVICES
501 Elementary, secondary, and voactional education:
Department of Health, Education, and Welfare
Department of the Interior
249
343
1,012
719
5
308
318
2,913
686
6
317
344
2,535
743
7
1
96
-287
1
145
-403
1
135
-393
2,139
3,976
3,689
294
16
140
184
375
15
101
1,195
284
15
159
550
634
1,686
1,007
-16
-17
-18
6,283
9,694
8,669
4,840
238
5,420
253
6,214
270
5,078
5,673
6,484
3,168
-63
1
3,761
30
4,280
10
-1
-2
-2
3,104
3,789
4,289
104
419
4
139
516
3
169
578
103
1
193
113
-10
119
2
113
158
131
-3
120
2
133
121
127
-3
927
1,177
500
Total 501
502 Higher education:
Department of Health, Education, and Welfare
Department of Housing and Urban Development
Department of the Treasury
Other independent agencies: Harry S Truman Scholarship
Foundation1
Total 502_
503 Research and general education aids:
Legislative branch*
Department of Health, Education, and Welfare*
_
Department of the Treasury.
_..
Other independent agencies:
Corporation for Public Broadcasting
National Commission on Libraries and Information Science1
National Foundation on the Arts and the Humanities1
National Foundation on the Arts and the Humanities1
Smithsonian Institution
Deductions for offsetting receipts
__
Total 503
See footnotes at end of table.
1,247
SUMMARY TABLES
463
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
500 EDUCATION, TRAINING, EMPLOYMENT, AND
SOCIAL SERVICES—Continued
504 Training and employment:
Department of Commerce
Department of Health, Education, and Welfare
Department of Labor 1
Other independent agencies: Community Services Administration
Total 504
505 Other labor services:
Department of Labor l
Other independent agencies:
Committee for Purchase from the Blind and other Severely
Handicapped..
_
Federal Mediation and Conciliation Service. _
National Labor Relations Board
National Mediation Board
Total 505
506 Social services:
Department of Health, Education, and Welfare...
Department of Housing and Urban Development
Department of the Treasury
Other independent agencies:
ACTION
Cabinet Committee on Opportunities for Spanish-Speaking
People
_.._
Community Services Administration 1
Consumer Protection Activities._
Office of Consumer Representation
Total 506
2
Deductions offsetting receipts .
Total education, training, employment, and social services.
550
13
365
10,552
365
12,422
6,877
10,930
12,787
270
322
351
*
20
81
3
*
21
93
4
*
22
100
4
374
440
477
98
361
6,418
1
3,994
*
4,191
4,445
3
8
543 _._
109
117
128
*
529
613
4,632
5,468
5,142
—7
—5
—5
20,985
27,471
30,421
40,155
370
-5,997
46,706
397
-7,243
52,298
563
-7,764
34,527
39,860
45,097
2,543
—*
2,739
—*
2,936
—1
2,543
2,738
2,935
981
836
770
-558
—12
14
HEALTH
551 Health care services:
Department of Health Education, and Welfare *
Other independent agencies: Civil Service Commission l
Deductions for offsetting receipts
Total 551
552 Health research:
Department of Health, Education, and Welfare
Department of Housing and Urban Development
Total 552
553 Education and training of health care work force:
Department of Health, Education, and Welfare
See footnotes at end of table.
._-
464
THE BUDGET FOR FISCAL YEAR 1979
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
550 HEALTH—Continued
554 Consumer and occupational health and safety:
Executive Office of the President
Department of Agriculture
Department of Health, Education, and Welfare
Department of the Interior 1
Department of Labor
Other independent agencies:
Consumer Product Safety Commission
Federal Mine Safety and Health Review Commission
Occupational Safety and Health Review Commission
Deductions for offsetting receipts
Total 554
Deductions for offsetting receipts
2
Total health
*
229
245
98
127
266
283
53
186
268
298
40
.
42
2
40
5
7
-4
743
7
-1
7
-1
839
887
-10
-12
-12
38,785
44,261
49,677
86,741
26
—*
96,450
31
106,216
37
4,050
-2,174
4,344
*
-2,672
4,593
1
-2,451
88,642
98,153
108,396
*
36
275
84
#
2
292
101
*
2
228
117
9,166
—58
10,445
—30
11,679
-31
9,503
10,811
11,995
18,700
-3,442
12,960
-600
11,827
15,258
12,360
11,827
270
600 INCOME SECURITY
601 General retirement and disability insurance:
Department of Health, Education, and Welfare *
Department of Labor 1
Department of the Treasury
Other independent agencies:
Railroad Retirement Board i
Other temporary commissions
Deductions for offsetting receipts:
Total 601
602 Federal employee retirement and disability:
Legislative Branch (trust fund)
The Judiciary 1
Department of Labor
Department of State (trust fund)
_
Other independent agencies: Civil Service Commission (trust
fund)
Deductions for offsetting receipts
Total 602
603 Unemployment compensation:
Department of Labor J
Deductions for offsetting receipts
Total 603
See footnotes at end of table.
___
SUMMARY TABLES
465
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
600 INCOME SECURITY-Continucd
604 Public assistance and other income supplements:
Department of Agriculture
Department of Health, Education, and Welfare1
Department of Housing and Urban Development
Department of State
Department of the Treasury
_
Other independent agencies:
Community Services Administration
Railroad Retirement Board
8,532
11,940
2,952
7
_
9,252
13,023
3,774
—4
167
110
60
53
50
30
23,601
26,316
27,807
*
-1
-1
137,004
147,640
160,024
701 Income security for veterans:
Veterans Administration1
9,701
10,252
10,744
Deductions for offsetting receipts
-486
-507
-469
9,216
9,745
10,275
3,713
3,173
2,686
-3
-31
-55
3,710
3,142
2,630
4,708
5,436
5,757
-
Total 604
Deductions for offsetting receipts
2
Total income security
700
9,300
12,756
4,387
1,333
VETERANS BENEFITS AND SERVICES
Total 701
702 Veterans education, training, and rehabilitation:
Veterans Administration1
_
_
Deductions for offsetting receipts
Total 702...
703 Hospital and medical care for veterans:
Veterans Administration.
704 Veterans housing:
Department of Housing and Urban Development
Veterans Administration
Total 704
705 Other veterans benefits and services:
Department of Defense—Civil1
Department of the Treasury (trust fund)
^
Veterans Administration 1
Other independent agencies: American Battle Monuments
Commission1
Deductions for offsetting receipts. _
Total 705
Deductions for offsetting receipts 2__
Total veterans benefits and services
See footnotes at end of table.
—7
—138
-145
—10
—21
-31
—9
—46
-55
21
*
524
23
*
598
23
*
624
6
—1
6
—2
6
—2
549
625
652
—1
—3
—3
18,038
18,916
19,257
466
THE BUDGET FOR FISCAL YEAR 1979
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
750
1977
1978
1979
ADMINISTRATION OF JUSTICE
751 Federal law enforcement activities:
Department of Health, Education, and Welfare
Department of Housing and Urban Development. _
Department of Justice
_
Department of the Treasury
Other independent agencies:
Administrative Conference of the United States _
Commission on Civil Rights
_.
Equal Employment Opportunity Commission
Other temporary commissions
_.
24
11
951
605
55
15
1,044
702
71
17
1,072
731
1
9
11
*
1
11
88
*
1
11
108
1,673
1,915
2,011
8
390
317
2
9
457
354
*
9
488
378
2
125
-2 .
2
154
*
243
842
976
1,118
753 Federal correctional activities:
Department of Justice *
240
319
373
754 Criminal justice assistance:
Department of Justice. _
847
817
717
Deductions for offsetting receipts 2 _.
-2
-8
-8
Total administration of justice.
3,600
4,019
4,211
849
-7
906
-6
946
-6
841
900
941
73
_*
2
76
78
1
1
78
1
1
80
80
2,109
-179
2,367
-166
2,509
-142
1,930
2,201
2,367
Total 751 _
752 Federal litigative and judicial activities:
Legislative Branch
__
_
._.
The Judiciary !
_
Department of Justice
_
General Services Administration
Other independent agencies:
Indian Claims Commission
Legal Services Corporation
Deductions for offsetting receipts
_
Total 752.
00
GENERAL GOVERNMENT
801 Legislative functions:
Legislative branch x
Deductions for offsetting receipts...
Total 801.
802 Executive direction and management:
Executive Office of the President
Funds appropriated to the President
General Services Administration
Total 802.
803 Central fiscal operations:
Department of the Treasury 1 _.
Deductions for offsetting receiptsTotal 803
See footnotes at end of table.
SUMMARY TABLES
467
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
800
1977
1978
1979
GENERAL GOVERNMENT—Continued
804 General property and records management:
General Services Administration 1
_
_
Other independent agencies:
Other temporary commissions.__
Deductions for off setting receipts
_.
134
365
6
—*
1
___
141
366
369
*
7,398
*
-7,298
*
7,517
*
—7,397
*
8,475
-8,355
100
120
121
24
*
65
191
162
3
2
*
75
325
207
3
50
*
77
290
148
3
13
7
2
*
2
2
3
-18
18
8
1
*
2
11
2
-22
18
8
-24
455
632
586
-186
-180
-159
3,357
4,119
4,304
13,419
-6,657
13,690
-6,855
13,715
-6,855
6,762
6,835
6,860
Total 804
805 Central personnel management:
Other independent agencies:
Advisory Committee on Federal Pay
Civil Service Commission,
Other temporary commissions
Deductions for offsetting receipts
_
_
___
Total 805____
806 Other general government:
Legislative Branch
_
The Judiciary
__
Department of Defense—Civil
Department of the Interior 1
_
Department of the Treasury l
_
General Services Administration
Other independent agencies:
Civil Service Commission..
Federal Election Commission
__
American Revolution Bicentennial Administration*
Other Historical and Memorial Agencies l
Advisory Commission on Intergovernmental Relations*
Other Temporary Commissions
National Commission on the Observance of International
Women's Year, 1975 *
Deductions for offsetting receipts
_
Total 806
Deductions for offsetting receipts 2
_
Total general Government
850
GENERAL
*
2
13
PURPOSE FISCAL ASSISTANCE
851 General revenue sharing:
Department of the Treasury 1
Deductions for offsetting receipts.
Total 851...
See footnotes at end of table.
369
_
_
468
THE BUDGET FOR FISCAL YEAR 1979
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
1978
1979
850 GENERAL PURPOSE FISCAL ASSISTANCE—Con.
852 Other general purpose fiscal assistance:
Department of Agriculture
___
Department of Defense—Civil
Department of Energy
Department of the Interior
Department of the Treasury
Other independent agencies: District of Columbia....
Deductions for offsetting receipts
50
...
266
2,105
400
—84
226
6
*
415
2,009
414
—44
242
5
*
494
1,609
449
—22
Total 852
2,737
3,026
2,776
Total general purpose fiscal assistance
9,499
9,860
9,636
901 Interest on the public debt:
Department of the Treasury
41,900
48,600
55,400
902 Other interest:
Department of the Treasury
General Services Administration
Deductions for offsetting receipts
326
*
-4,134
331
1
-5,091
336
*
-6,746
-3,808
-4,759
-6,409
38,092
43,841
48,991
_._
._
900 INTEREST
Total 902
Total interest
Allowances for:
Civilian agency pay raises
Contingencies for other requirements
Undistributed offsetting receipts:
Employer share, employee retirement:
Interfund transactions
Receipts from off-budget Federal agencies
1,100
1,700
-3,362
-1,186
-3,786
-1,238
-3,915
-1,242
Total, employer share, employee retirement
—4,548
—5,024
—5,157
Interest received by trust funds
-8,131
-8,595
-9,064
Rents and royalties on the Outer Continental Shelf
-2,374
-2,000
-1,800
Total outlays...
401,902
462,234
500,174
294,948
143,267
-36,313
340,036
158,190
-35,992
363,580
174,092
-37,497
MEMORANDUM
Federal funds
Trust funds
Interfund transactions
SUMMARY TABLES
469
Table 13. OUTLAYS BY FUNCTION AND AGENCY—Continued
(In millions of dollars)
Function and department or other unit
1977
actual
1978
estimate
1979
estimate
ADDENDUM
Outlays of off-budget Federal entities:
150 INTERNATIONAL AFFAIRS
155 International financial programs:
Department of the Treasury.
270 ENERGY
271 Energy supply:
Department of Agriculture
9
-78
394
62
-70
370 COMMERCE AND HOUSING CREDIT
372 Postal Service
374 Federal Financing Bank:
Department of the Treasury
-173
815
-1
8,201
10,567
12,510
Total commerce and housing credit
8,028
11,382
12,509
219
97
23
59
79
105
—16
-28
-30
8,693
11,514
12,538
410,594
473,748
512,712
400 TRANSPORTATION
401 Ground transportation:
United States Railway Association
450 COMMUNITY AND REGIONAL DEVELOPMENT
452 Area and regional development:
Department of Agriculture
600 INCOME SECURITY
601 General retirement and disability insurance:
Department of Labor.
Outlays, off-budget Federal entities
Outlays including off-budget Federal entities
*$500 thousand or less.
Includes both Federal and trust funds.
3
Excludes offsetting receipts which have been distributed by subfunction above.
1
3
Table 14. CONTROLLABILITY O F BUDGET OUTLAYS, 1969-79 (dollars in billions)
Actual
1969
1970
1971
1972
1973
Estimate
1974
1975
1976
TQ
1977
1978
1979
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.Veterans benefits: Pensions, compensation, education and insurance
Medicare and medicaid
_
Housing payments
_
Public assistance and related programs.
28.3
31.3
37.2
41.5
50.7
57.6
68.4
76.2
20.7
87.7
97.2
108.0
4.8
(2.4)
(2.4)
2.9
5.6
(2.8)
(2.7)
3.7
6.6
(3.4)
(3.2)
6.6
7.7
(3.9)
(3.8)
7.5
9.0
(4.4)
(4.6)
5.7
10.8
(5.1)
(5.7)
6.5
13.3
(6.2)
(7.1)
14.0
15.6
(7.3)
(8.3)
19.8
4.3
(1.9)
(2.4)
4.2
17.8
(8.2)
(9.6)
15.8
20.1
(9.2)
(10.9)
13.0
22.3
(10.1)
(12.2)
12.6
5.7
8.9
3
3.9
6.6
9.9
.5
4.7
7.6
11.2
.7
7.4
8.3
13.4
1.1
8.9
9.3
14.1
1.6
9.1
10.0
17.2
1.8
11.5
12.4
21.6
2.1
\7A
13.9
26.3
2.5
19.4
2.9
7.0
.6
4.9
12.9
31.4
2.9
20.9
12.9
36.5
3.7
22.2
12.6
42.1
4.3
22.0
62.3
77.3
14.4
14.8
_ _
3.8
2.8
3.8
5.2
88.5
15.5
99.6
17.4
6.6
3.6
6.3
115.4
21.5
6.1
1.0
6.8
148.9
23.3
6.1
.6
8.0
173.7
26.8
6.2
.6
8.8
44.6
7.0
1.6
.7
2.6
189.5
30.0
6.8
3.5
8.6
205.5
35.2
6.8
7.4
10.3
223.9
39.9
6.9
4.5
10.1
133.5
(4.4)
(129.1)
150.8
(5.2)
(145.6)
186.9
(6.3)
(180.6)
216.2
(7.4)
(208.8)
56.5
(2.0)
(54.5)
238.3
(8.2)
(230.1)
Subtotal, payments for individuals...
54.9
Net interest1
12.7
General revenue sharing
_
Farm price supports (CCC).__
4.1
Other open-ended programs andfixedcosts.
2.8
Total, open-ended programs and fixed
costs
(National defense)
(Civilianprograms)
4.0
6.4
74.5
(2.5)
(72.0)
84.3
(2.9)
(81.4)
100.2
(3.4)
(96.8)
24.6
17.3
24.1
17.4
21.1
19.1
19.4
19.9
)7.7
21.9
20.4
23.4
22.3
28.4
17.9
33.0
7.7
12.3
18.5
36.8
29.9
49.4
33.8
55.7
Total, outlays from prior-year contracts and obligations
41.9
41.5
40.2
39.2
39.6
43.8
50.7
50.9
20.0
55.3
79.3
89.5
Total, relatively uncontrollable outlays
116.4
125.8
140.4
153.5
173.1
194.6
237.6
267.1
76.5
293.6
344.7
374.8
Outlays from prior-year contracts and
obligations:2
National defense
Civilian programs
114.3
(4.0)
(110.4)
265.3 285.3
(9.3) (10.2)
(256.0) (275.1)
g
3
^
Relatively controllable outlays:
National defense
_.
Civilian programs
(Under current law) 3
Under proposed legislation in:
(Open-ended programs and fixed costs) 3
(Relativelycontrollableandnewprograms)3
Total, relatively controllable outlays
Undistributed employer share, employee retirement
Total budget outlays
52.3
17.8
(70.1)
51.6
21.7
(73.3)
51.3
22.4
(73.7)
53.2
28.0
(81.3)
52.5
24.5
(76.9)
52.2
26.2
(78.4)
57.0
35.5
(92.5)
64.2
38.7
(102.8)
12.7
6.5
(19.2)
70.8
42.1
(112.9)
68.4
73.8
54.2
56.7
(121.9) (129.9)
_
._
(0.5) (—1.0)
(0.2)
(1.5)
70.1
73.3
73.7
81.3
76.9
78.4
92.5
102.8
19.2
112.9
122.6
130.5
-2.0
-2.4
-2.6
-2.8
-2.9
-3.3
-4.0
-4.2
-1.0
-4.5
-5.0
-5.2
184.5
196.6
211.4
232.0
247.1
269.6
326.1
365.6
94.7
401.9
462.2
500.2
-_
MEMORANDUM
Percent of total outlays:
Relatively uncontrollable under present law:
Open-ended programs and fixed costs:
Payments for individuals.—
Other
Total open-ended programs and
costs
Outlays from prior-year contracts
obligations
_
Total budget outlays
31.7%
11.2
36.6%
10.8
38.1%
11.1
40.3%
13.7
42.8%
13.1
45.7%
11.7
47.5%
11.6
47.1%
12.6
47.2%
12.1
44.5% 44.8%
12.9 12.3
40.4
42.9
47.4
49.3
54.0
fixed
55.9
57.3
59.1
59.6
59.3
57.4
57.0
22.7
21.1
19.0
16.9
16.0
16.2
15.5
13.9
21.1
13.7
17.2
17.9
63.1
38.0
64.0
37.3
66.4
34.8
66.2
35.0
70.0
31.1
72.2
29.1
72.9
28.4
73.0
28.1
80.8
20.3
73.0
28.1
74.6
26.5
74.9
26.1
-1.1
-1.2
-1.2
-1.2
-1.2
-1.2
-1.2
-1.2
-1.0
-1.1
-1.1
-1.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
td
and
Total relatively uncontrollable outlays...
Relatively controllable outlays
Undistributed employer share, employee retirement
1
3
s
29.8%
10.6
Proposed legislation in open-ended programs and fixed costs includes less than —$50 million in 1979 for net interest.
Excluding prior year contracts and obligations for activities shown as "open-ended programs and fixed costs."
National defense portion includes $68.5 billion in 1978 and $74.0 billion in 1979 under current law, less than $50 million in 1979 under proposed legislation in openended programs, and —$0.1 billion in 1978 and —$0.3 billion in 1979 under proposed legislation in relatively controllable programs.
5
to
Table 15. LEGISLATIVE PROPOSALS FOR MAJOR NEW AND EXPANDED PROGRAMS IN THE 1979 BUDGET,
PROJECTION OF COSTS * (in millions of dollars)
1978
Agriculture:
Rural housing insurance fund
1979
1980
BA\
0/
Special supplemental food
(WIC)
Projection
Estimate
Agency
1982
1981
Explanation
1983
w
d
20
34
48
si
A special home ownership assistance program is proposed for
very low income families. Under this program, housing
costs, including utility and maintenance costs, in excess of
25% of a family's income, would be paid by the Federal
Government.
program
BA
0
560
530
560
530
560
560
560
560
560
560
Legislation is proposed to expand this program, which provides supplemental foods for pregnant and nursing women,
infants, and young children at nutritional risk during their
critical stages of development.
Defense:
Family separation allowance for E-4's
and below with dependents
BA1
oj
29
29
29
29
2g
Authorize military personnel with the rank of E-4 and below
who have dependents to receive a family separation allowance similar to what is provided to other military personnel.
Energy:
Decontamination and decommissioning
BA
0
5
3
29
22
36
30
40
37
17
29
-163
-169
-268
-270
-338
Legislation is proposed to allow remedial action for radioactively contaminated uranium mill tailing sites and former
Federal atomic energy sites.
Legislation is proposed to change the pricing criteria for
uranium enrichment services to permit a charge based on
fair market value, rather than direct Government costs.
400
28
400
285
400
364
400
389
Uranium enrichment charges
Health, Education and Welfare:
Elementary and secondary education:
New authorities under Title I
BA1
0/ — BA
0 .
3
400 Legislation is proposed to add new authorities to Title I of
396
the Elementary and Secondary Education Act to improve
educational opportunities for disadvantaged children.
3
Child welfare services
BA
0
85
64
116
116
147
147
178
178
210
210
Adolescent health, services, and pregnancy prevention
BA
0
60
20
60
60
60
60
60
60
60
60
BA
0
BA1
Of
BA
0
BA
0
118
118
263
32
32
179
-399
BA
0
74
52
Medicaid:
Expanded coverage for expectant
mothers
Expanded coverage for children
Increased matching
Expanded quality control
Housing and Urban Development:
Operating subsidy for financially
troubled FHA projects
162
180
146
131
118
118
118
118
461
530
384
314
48
54
41
36
32
32
32
32
182
183
181
180
-790 -1,172 -1,397 -1,584
96
96
114
114
132
132
147
147
Expanded assistance is proposed to enhance the status of
children in foster care and assist the permanent placement
of such children.
A new program is proposed to establish networks of community-based health, education, and social services to
help prevent unwanted pregnancies among adolescents.
Expanded eligibility is proposed for low-income mothers and
expectant mothers.
Coverage is proposed for an additional 1.7 million children
and youths under 21.
An increased Federal matching rate and higher limits are
proposed for Puerto Rico, Guam, and the Virgin Islands.
Expanded quality control of medicaid payments is proposed
to reduce overpayments and fraud.
This proposed operating subsidy for financially troubled
subsidized projects with HUD-insured or HUD-held
mortgages is intended to prevent losses to the FHA
fund from project defaults and to preserve these projects
as viable housing for low-income families. Subsidies will
be provided annually for the difference between HUDapproved operating expenses and projected rents.
Interior:
Mineral impact loan assistance _
BA
0/
40
40
40
40
40
Loans would be made under this proposal to States for the
construction of public facilities made necessary by mineral development on Federal lands. Repayment would be
from the State's share of future Federal mineral leasing
receipts. Amendments to existing legislation are proposed,
including a change in the interest rate from 3% to the
current Treasury borrowing rate.
<
2W
f
See footnotes at end of table.
CO
Table 15. LEGISLATIVE PROPOSALS FOR MAJOR NEW AND EXPANDED PROGRAMS IN THE 1979 BUDGET,
PROJECTION OF COSTS1 (in Bullions of dollars)—Continued
Estimate
Agency
1978
1979
Projection
1980
1981
1982
1983
Explanation
d
o
Transportation:
Oil pollution liability and compensation fund
BA
0
Highway grant program (trust fund). BA
0
Urban mass transit program
_.
BA
0
180
50
80
50
50
50
50
50
4,146
563
973
983
_..
266
358
562
2,665
145
125
300
175
405
275
.
50 This proposal wduld assure adequate and timely compensation for damages and cleanup costs resulting from oil
50
spills in the marine environment. The legislation would
set up a fund, of up to $200 million, to pay for such costs.
983 The highway and transit legislation proposes narrowing the
671
differences between the operation of highway and transit
500
programs, allowing States and localities to evaluate the
relative merits of these alternative forms of transporta350
tion. It also proposes adoption of uniform Federal matching shares for highway and transit assistance: 90% for all
projects substituted for withdrawn Interstate highway
segments, and 80% for other highway and transit projects.
Treasury:
Taxable municipal bond option.
BA
0
Settlement of retroactive social services claims
BA1
0/
7,094
99
543
6,929 11,984 11, 928 10,157
495
977 1,599 2,221
States and localities would be given the option under this
proposal to issue taxable bonds instead of tax exempt
securities. An interest subsidy of 35% to 40% would be
paid to equalize benefits.
Payments to be authorized by Congress, will settle claims
under the Social Security Act of several States totaling
$2.6 billion.
3
I
Fuel efficiency incentive and crude oil BAl
tax programs
General Services Administration:
Critical and strategic stockpile
0/
BAl
0/
317
1,833
2,414
2,808
2,953
3,186 The proposed National Energy Plan provides for payment of
rebates on fuel efficient automobiles and for payments of
per capita rebates from the Crude Oil Equalization Tax
to those individuals who do not pay income taxes.
-91
-177
-213
-200
200 This legislation reflects the President's plan to acquire certain
strategic and critical materials and dispose of other
materials in the national stockpile.
Veterans Administration:
Compensation and pensions
Q
421
395
461
461
458
458
453
453
449 Legislation is proposed which will provide cost of living
449 increases in veterans compensation benefits consistent with
changes in the Consumer Price Index, and cost of living
increases or other improvements in pension benefits.
Multi-agency:
Welfare reform:
(Better jobs and income proposals):
Total gross costs (excluding BAl
earned income tax credit) 2 ,__.
OJ
Memorandum:
Cost of existing programs and other BA\
offsets2
0/
Net cost of program
*b] ~
Allowances:
Relatively small and unforeseen items. BA
0
9nn
ZUU
^ 4ftA
'*W
l
• AAA
h
" * »
2,000
1,000
m
" ^ »
2,000
2,500
*A
l%
^^A
***
C
pen
'5:>U
YI Q-IA
*''V:>U
Q A™
9 630
'
Legislation has been proposed to reform the present welfare
system. Several existing programs would be consolidated
as part of this simplification. The proposed program
provides basic Federal cash benefits to the needy as well as
up to 1.4 million public service jobs.
~*™
2,000
2,250
2,000
2,250
2,000
2,000
1
This table is supplied pursuant to the requirements of sec. 221 (a) of the Legislative Reorganization Act of 1970 (Public Law 91-510). Estimates are shown for individual programs that involve at least $25 million in outlays a year over a period of years. The estimates do not reflect possible changes in the scope or quality of the proposals
that might result from experience gained in actual practice; nor do they reflect in all cases possible reductions in the costs of other programs that may come about as a
result of adoption of the proposals. Further, the resources that might appropriately be applied in later years will require a reexamination of the relative priorities of these
and other Government programs in the light of economic and other circumstances then prevailing. Thus, the estimates do not represent a commitment as to amounts to
be included
in future budgets.
2
The proposal also includes earned income tax credits, which are classified as tax refunds. The present refund level of $1,025 million in 1982 and $984 million in 1983
would be increased under the proposal to $2,950 million in 1982 and $5,793 million in 1983.
Table 16. BUDGET RECEIPTS BY SOURCE, 1969-1979 (in millions of dollars)
Source
Individual income taxes
Corporation income taxes
Actual
1969
1970
1971
1972
87,249
36,678
90,412
32,829
86,230
26,785
94,737
32,166
1973
Estimate
1974
1975
1976
103,246 118,952 122,386 131,794
36,153 38,620 40.621 41.409
TQ
1977
1978
1979
38,715 156,725 178,828 190,077
8,460 54,892 58.949 62.487
Social insurance taxes and contributions (trust
funds):
Employment taxes and contributions:
Old-age and survivors insurance
Disability insurance
Hospital insurance
Railroad retirement..
25,484
3,469
4,398
885
29,396
4,063
4,755
919
31,354
4,490
4,874
980
35,132
4,775
5,205
1,008
40,703
5,381
7,603
1,189
47,778
6,147
10,556
1,411
55,207
7,250
11,258
1,489
58,703
7,686
11,995
1,525
15,886
2,130
3,459
328
68,032
8,786
13,484
1,908
Total employment taxes and contributions
34,236
39,133
41,699
46,120
54,876
65,892
75,204
79,909
21,803
92,210 103,986 119,609
3,328
3,464
3,674
4,357
6,051
6,837
6,771
8,054
2,698
11,312
14,420
16,322
Unemployment insurance
Q
73,336
12,204
16,588
1,858
83,062
14,568
19,926
2,053
Contributions for other insurance and retirement:
Supplementary medical insurance
Employees' retirement—employee contributtons
Other retirement contributions
903
936
1,253
1,340
1,427
1,704
1,901
1,937
539
2,193
2,408
2,631
1,426
24
1,735
29
1,916
37
2,058
39
2,146
41
2,302
45
2,513
52
2,760
54
707
13
2,915
59
3,246
62
3,265
62
Total contributions for other insurance
and retirement
2,353
2,701
3,205
3,437
3,614
4,051
4,466
4,752
1,259
5,167
5,716
5,958
Total social insurance taxes and contributions
39,918
45,298
48,578
53,914
64,542
76,780
86,441
92,714
25,760
108,688
124,122
141,889
w
^
co
Excise taxes:
Federal funds:
Alcohol
Tobacco
Other
Total Federal excise taxes
Trust funds:
Highway
Airport and airway
Total trust excise taxes
Total excise taxes
Estate and gift taxes
Custom duties
Miscellaneous receipts:
Deposit of earnings by Federal Reserve System
Other miscellaneous receipts
Total miscellaneous receiptsJ
Total budget receipts
MEMORANDUM
Federalfunds
Trustfunds
Interfund transactions
1
Includes both Federal and trust funds.
4,482
2,136
3,967
4,610
2,093
3,649
4,696
2,205
3,609
5,004
2,205
2,297
5,040
2,274
2,522
5,248
2,435
2,060
5,238
2,312
1,850
5,318
2,484
2,810
1,279
622
620
5,295
2,393
1,960
5,390
2,447
3,820
5,488
2,503
8,787
10,585
10,352
10,510
9,506
9,836
9,743
9,400
10,612
2,520
9,648
11,657
16,778
4,637
5,354
5,542
563
5,322
649
5,665
758
6,260
840
6,188
962
5,413
938
1,676
277
6,709
1,191
7,086
1,287
7,418
1,089
4,637
5,354
6,104
5,971
6,424
7,100
7,151
6,351
1,953
7,900
8,493
8,697
15,222
15,705
16,614
15,477
16,260
16,844
16,551
16,963
4,473
17,548
20,150
25,475
3,491
2,319
3,644
2,430
3,735
2,591
5,436
3,287
4,917
3,188
5,035
3,334
4,611
3,676
5,216
4,074
1,455
1,212
7,327
5,150
5,618
5,792
6,067
6,390
2
2,662
247
3,266
158
3,533
325
3,252
381
3,495
426
4,845
524
5,777
934
5,451
2,575
1,500
112
5,908
622
6,200
728
6,300
902
HI
gj
2,908
3,424
3,858
3,633
3,921
5,369
6,711
8,026
1,612
6,531
6,928
7,203
g
187,784 193,743 188,392 208,649 232,225
143,321
52,009
-7,547
264,932 280,997 299,197
81,687 356,861 400,387 439,588
143,158 133,785 148,846 161,357 181,219 187,505 200,291
59,362 66,193 72,959 92,193 104,846 118,590 133,695
-8,778 -11,586 -13,156 -21,325 -21,133 -25,098 -34,789
53,999 240,412 267,889 289,095
32,071 152,763 168,490 187,991
- 4 , 3 8 3 -36,313 -35,992 -37,497
Table 17. BUDGET OUTLAYS BY FUNCTION, 1969-1979 (in millions of dollars;
Actual
Function
1969
050
1970
1971
1972
22,633
3,386
23,036
23,246
3,885
21,675
17,131
7,881
1,655
-113
4,390
21,069
15,654
8,157
895
-113
Estimate
1974
1975
1976
TQ
1977
1978
1979
25,715
8,216
30,587
18,178
9,795
3,341
-183
26,832
26,866
9,211
33,494
21,522
10.714
3,768
10,122
36,454
24,208
11,861
6,034
-345
National defense:
051 Department of Defense—Military:
Military personnel
Retired military personnel
Operation and maintenance
Procurement
Research and development
Military construction and other i____
Deductions for offsetting receipts....
21,374
2,444
22,227
23,988
7,457
525
-143
23,031
2,849
21,609
21,584
1,059
-148
20,941
18,858
7,303
1,552
-126
Subtotal, 051
053 Atomic energy defense activities
054 Defense-related activities
Deductions for offsetting receipts
77,872
1,389
162
_5
77,150
1,415
-8
-3
74,546
1,385
-120
-3
79,418
78,553
3,142
685
370
Total national defense
150 International affairs:
151 Foreign economic and financial assistance
152 Military assistance
153 Conduct of foreign affairs
...
154 Foreign information and exchange activities
155 International financial programs
Deductions for offsetting receipts
Total international affairs
250
1973
23,728
5,128
22,478
15,241
8,582
24,968
6,358
1,947
7,232
2,627
8,866
2,754
-159
-182
25,064
7,296
27,837
15,964
8,923
3,043
-155
75,151
1,373
29
-2
73,297 77,625
1,409
1,486
-162 -1,349
-4
-13
84,984
1,506
-936
-4
87,971
1,565
-103
-3
21,898
435
-27
1
95,650 105,300 115,200
1,936
2,308
2,536
-84
20
45
_*
2
-2
75,808
76,550
74,541
77,750
85,550
89,430
22,307
97,501 107,626 117,779
2,935
593
398
2,902
995
405
3,235
719
451
2,870
865
475
2,884
1,312
606
3,665
1,877
658
3,568
1,101
726
1,526
910
262
4,214
492
981
5,296
457
1,115
5,407
465
1,211
237
350
-211
235
357
-223
241
-180
-271
274
271
-277
295
165
-634
320
686
-167
348
575
-263
382
235
-446
115
-473
-160
386
-819
-425
443
-24
-540
480
684
-555
4,573
4,295
4,092
4,674
4,036
5,640
6,861
5,567
2,180
4,831
6,747
7,691
938
2,900
947
2,340
1,009
1,988
978
1,906
961
1,726
1,018
1,694
1,038
1,661
1,035
2,000
292
525
1,078
2,252
1,190
2,192
1,274
2,264
7,166
6,242
26,295
16,042
3,766
2,206
383
5
-271
General science, space, and technology:
251 General science and basic research
253 Space flight
d
o
3
o
254
Space science, applications, and technology
255 Supporting space activities
Deductions for offsetting receipts
794
387
-4
853
370
-3
830
355
-2
952
338
-2
1,041
304
-1
947
322
-3
958
334
-2
980
358
-3
251
94
-1
1,006
343
-2
1,018
358
-2
1 150
390
-2
Total general science, space, and technology
5,016
4,508
4,180
4,174
4,030
3,977
3,989
4,370
1,161
4,677
4,757
5,077
878
848
876
1,063
949
509
3
1,742
48
2,519
51
607
38
2
3,266
143
123
4,190
601
2,273
4,113
1,402
3,284
122
142
155
207
231
331
389
557
147
664
—23
799
—26
930
—95
1,001
990
1,031
1,270
1,180
843
2,179
3,127
794
4,172
7,837
9,634
300 Natural resources and environment:
301 Water resources
302 Conservation and land m a n a g e m e n t s
303 Recreational resources
304 Pollution control and abatement
306 Other natural resources
Deductions for offsetting receipts
1,627
567
380
303
370
-400
1,564
717
372
384
432
-467
1,798
855
476
702
498
-475
2,018
784
521
764
571
-463
2,275
725
566
1,122
570
-544
2,255
740
665
2,035
673
-705
2,676
1,300
825
2,522
762
-756
2,827
1,245
895
3,067
897
-806
838
477
256
1,091
229
-359
3,241
1,279
1,014
4,279
973
-786
3,686
2,079
1,323
4,947
1,175
-1,084
3,392
1,579
1,545
5,614
1,268
-1,178
Total natural resources and environment.
2,848
3,003
3,855
4,195
4,714
5,664
7,329
8,124
2,532
10,000
12,125
12,222
5,304
520
-46
4,589
579
-5
3,651
639
-2
4,553
728
-2
4,099
758
-3
1,458
775
-3
785
877
-2
1,574
921
7
343
4,485
240
1,052
1 - 1 1
7,865
1,244
-3
4,180
1,259
-6
5,779
5,164
4,288
5,279
4,855
2,230
1,660
2,502
584
5,526
9,106
5,433
-624
920
104
1,510
-251
2,183
-42
1,772
-1,192
1,567
1,519
1,698
2,798
1,877
1,215
1,720
273
938
-3,270
2,267
467
1,787
-274
1,830
270 Energy:
271 Energy supply
272 Energy conservation
274 Emergency energy preparedness
276 Energy information, policy, and regulation
Deductions for offsetting receipts
Total energy
350 Agriculture:
351 Farm income stabilization
352 Agricultural research and services
Deductions for offsetting receipts
Total agriculture
370 Commerce and housing credit:
371 Mortgage credit and thrift insurance...
372 Postal Service
See footnotes at end of table.
-a
F
gi
Table 17. BUDGET OUTLAYS BY FUNCTION, 1969-1979 (in millions of dollars)—Continued
Actual
1969
T970
1971
1972
?973
Estimate
1974
1975
^976
TQ
1977
1978
1979
376 Other advancement and regulation of
commerce..
_
Deductions for offsetting receipts
247
-10
477
-14
474
-67
488
-13
552
—67
714
—11
939
-9
867
-7
182
—2
1,118
—4
1,265
-4
1,406
-3
Total commerce and housing credit
533
2,077
2,339
2,206
860
3,920
5,604
3,795
1,391
-31
3,515
2,960
4,443
1,220
874
21
-27
4,678
1,422
913
26
-26
5,180
1.824
1,053
37
-36
5,353
1,925
1,111
36
-30
5,640
2,177
1,231
56
-34
5,583
2,236
P.354
57
-53
6,501
2,408
1,459
74
-51
9,305
2,557
1,558
65
-46
2,284
587
417
28
-10
10,037
2,816
1,749
76
-42
11,140
3,269
1,913
82
-86
11,990
3,436
1,955
93
-66
6,531
7,013
8,057
8,395
9,070
9,176
10,392
13,438
3,306
14,636
16,318
17,408
895
619
40
-9
1,503
644
257
-9
1,767
735
353
-10
2,137
890
396
-11
2,093
933
1,580
-12
2,146
1,175
782
-19
2,334
976
398
-16
2,841
1,362
522
-15
911
326
111
-6
3,526
2,139
634
-16
4,049
3,976
1,686
-17
3,991
3,689
1,007
-18
Total community and regional development
1,545
2,395
2,846
3,413
4,593
4,084
3,692
4,709
1,340
6,283
9,694
8,669
500 Education, training, employment, and
social services:
501 Elementary, secondary, and vocational
education
502 Higher education
503 Research and general education aids.._
504 Training and employment
505 Other labor services
2,728
1,232
330
1,560
122
3,107
1,385
521
1,602
135
3,544
1,433
520
1,952
157
3,962
1,447
523
2,894
184
3,745
1,532
668
3,283
202
3,771
1,349
867
2,910
219
4,634
2,050
947
4,063
259
4,690
2,663
774
6,288
301
1,207
739
186
1,912
83
5,078
3,104
927
6,877
374
5,673
3,789
1,177
10,530
440
6,484
4,289
1,247
12,787
477
400 Transportation:
401 Ground transportation
402 Air transportation
403 Water transportation
407 Other transportation
Deductions for offsetting receipts.....
Total transportation
450 Community and regional development:
451 Community development
452 Area and regional development
453 Disaster relief and insurance
Deductions for offsetting receipts
g
506 Social services
Deductions for offsetting receipts
Total education, training, employment,
and social services
550 Health:
551 Health care services
552 Health research
553 Education and training of health care
work force
554 Consumer and occupational health and
safety
Deductions for offsetting receipts
Total health
600 Income security:
601 General retirement and disability insurance:
Social security
Other
Subtotal. 601
602 Federal employee retirement and disability
___
603 Unemployment compensation
604 Public assistance and other income
supplements
Deductions for offsetting receipts
_.
Total income security
700 Veterans benefits and services:
701 Income security for veterans
70i Veterans education, training, and rehabilitation
703 Hospital and medical care for veterans. _
See footnotes at end of table.
1.575
-10
1,884
-10
2,243
-10
3.519
-11
3,315
-10
3,241
-13
3,923
-5
4,026
1,036
-1
4,632
-7
5,468
-5
5,142
-5
7,538
8,624
9,839
12,519
12,735
12,344
15,870
18,737
5,162
20,985
27,471
30,421
9,958
1,049
11,142
1,054
12,641
1,119
15,025
1,338
16,006
1,566
19,054
1,652
24,241
1,923
29,447
2,341
7,742
536
34,527
2,543
39,860
2,738
45,097
2,935
550
633
681
747
858
844
856
982
275
981
836
770
203
226
-6
111
-2
364
-3
406
-3
529
-6
632
-5
686
-8
168
-1
743
-10
839
-12
887
-12
11,758
13,051
14,716
17,471
18,832
22,074
27,647
33,448
8,720
38,785
44,261
49,677
26.791
1,498
29,685
1,618
35,247
2,238
39,409
2,557
48,288
3,396
54,936
3,677
63,648
5,734
72,664
4,509
19,763
1,167
86,741
1,901
96,450 106,216
2,180
1,703
28.288
31,303
37,485
41,966
51,684
58,613
69,383
77,173
20,930
88,642
98,153 108,396
1,732
2,583
2,688
3,364
3,191
6,169
3,789
7,076
4.500
5.356
5,645
6,065
6,980
13,459
8,174
19,452
2,319
3,994
9,503
15,258
10,811
12,360
11.995
\],S21
4,679
5,712
2
8,580
-2
11,081
2
11,419
14,108
18,783
-1
21,800
-1
5,467
23,601
*
26,316
27,807
-1
37,281
43,066
55,423
63,911
72,958
84,431 108,605 126,598
5,036
5,546
5,966
6,344
6,533
6,789
7,860
8,350
2,082
9,216
9,745
10,275
701
1,564
1,015
1,800
1,659
2.036
1,960
2,425
2,801
2.711
3,249
3,006
4,593
3,665
5,531
4,046
784
1,039
3,710
4,708
3,142
5,436
2,630
5,757
-1
d
1
f
-1
32,710 137,004 147,640 160,024
00
Table 17. B U D G E T OUTLAYS B Y F U N C T I O N , 1969-1979 ( i n m i l l i o n s of dollars)—Continued
Actual
1969
704 Veterans housing
705 Other veterans benefits and services.-.
Deductions for offsetting receipts
Total veterans benefits and services....
750 Administration of justice:
751 Federal law enforcement activities.
752 Federal litigative and judicial activities.
753 Federal correctional activities
754 Criminal justice assistance
Deductions for offsetting receipts
102
239
-2
7,640
f970
54
263
-2
8,677
Estimate
Vyf\
1^72
?973
-179
296
-2
-317
320
-2
-381
350
-2
-15
359
-2
24
458
-2
-72
578
-2
-50
110
-1
-145
549
-1
-31
625
-3
-55
652
-3
10,730
12,013
13,386
16,597
18,432
3,962
18,038
18,916
19,257
9,776
952
1,299
254
25
808
303
30
934
587
38
88
-151
1977
1978
1979
1,4%
669
238
921
-4
407
206
64
213
-31
1,673
842
240
847
-2
1,915
976
319
817
-8
2,011
1,118
373
717
-8
1,650
2,131
2,462
2,942
3,320
859
3,600
4,019
4,211
342
38
1,013
404
59
1,183
438
72
1,209
521
117
1,329
588
63
1,752
677
68
1.798
182
16
429
841
76
1,930
900
80
2,201
941
80
2,367
616
44
158
-145
637
51
218
-141
719
58
189
-146
910
67
221
-235
1,030
74
419
-164
418
88
472
-292
95
107
454
-272
67
25
228
-69
141
100
455
-186
366
120
632
-180
369
121
586
-159
1,649
1,940
2,159
2,466
2,682
3,327
3,089
2,927
878
3,357
4,119
4,304
850 General purpose fiscal assistance:
851 General revenue sharing
_ _ _ _ _
852 Other general purpose fiscal assistance. _
430
536
535
673
6,636
715
6,106
784
6,130
1,057
6,240
994
1,588
504
6,762
2,737
6,835
3,026
6,860
2,776
Total general purpose fiscal assistance.._
430
536
535
673
7,351
6,890
7,187
7,235
2,092
9,499
9,860
9,636
761
808
335
128
380
-2
TQ
1,337
535
226
853
-9
Total general government
691
277
104
233
-6
1976
1,089
406
202
770
-5
800 General government:
801 Legislative functions
802 Executive direction and management.._
803 Central fiscal operations
804 General property and records management
805 Central personnel management
806 Other general government
Deductions for offsetting receipts
569
236
88
65
-6
T975
983
373
158
624
-7
Total administration of justice
468
1%
71
29
-3
1^974
g
g
g
900 Interest:
901 Interest on the public debt
902 Other interest
Total interest
16,588
-796
15,793
19,304
20,959
21,849
24,167
29,319
32,665
37,063
-992 -1,350
-1,267
-1,355
-1,247
-1,691
-2,474
20,582
22,813
28,072
30,974
34,589
18,312
19,609
8,102
41,900
48,600
55,400
- 8 5 6 -3,808
-4,759
-6,409
43,841
48,991
7,246
38,092
Allowances:
Civilian agency pay raises
Contingencies for:
Relatively uncontrollable programs
Other requirements
1,100
1,700
Total allowances
950 Undistributed offsetting receipts:
951 Employer share, employee retirement. _
2,800
-2,611
-2,768
-2,927
-3,319
-3,980
-4,242
-985
-4,548
-5,024
-5,157
952 Interest received by trust funds
-3,099 -3,936 -4,765
953 Rents and royalties on the Outer Continental Shelf
-428
-187 -1,051
-2,018
-2,444
-5,089
-5,436
-6,583
-7,667
-7,800
-270 -8,131
-8,595
-9,064
-289 -3,956
-6,748
-2,428
-2,662
-2,000
-1,800
.
Total undistributed offsetting receipts
-5,545
-6,567
-8,427
-1,311
-2,374
,
'
-8,137-12,318-16,651-14,075-14,704
-2,567-15,053
15,619
m
-
^>i
••
16,021
Total budget outlays
184,548 196,588 211,425 232,021 247,074 269,620 326,092 365,643
94,657 401,902 462,234 500,174
MEMORANDUM
Federal funds
Trust funds
Interfund transactions
148,811 156,301 163,651 178,104 186,951 199,920 240,018 269,146
43,284 49,065 59,361 67,073 81,447 90,833 111,171 131,286
-7,547 -8,778 -11,586 -13,156 -21,325 -21,133 -25,098 -34,789
65,017 294,948 340,036 363,580
34,023 143,267 158,190 174,092
-4,383 -36,313 -35,992 -37,497
OUTLAYS OF OFF-BUDGET FEDERAL
ENTITIES 2
150 International affairs:
155 International financial programs
Total international affairs
See footnotes at end of table.
—74
—15
9
—78
—70
—74
—15
9
—78
—70
(4
oo
CO
Table 17. BUDGET OUTLAYS BY FUNCTION, 1969-1979 (in millions of dollars)—Continued
Actual
1969
1970
1971
1972
1973
Estimate
1974
1975
1976
TQ
1977
1978
1979
270 Energy:
271 Energy supply
51
484
477
213
-80
394
62
Totalenergy
51
484
477
213
-80
394
62
773
102
1,112
6,355
1,085
5,863
-726
2,564
-173
8,201
815
10,567
7,468
6,949
1,838
8,028
11,382
400 Transportation:
401 Ground transportation
34
52
11
219
97
23
Total transportation
34
52
11
219
97
23
370 Commerce and housing credit:
372 Postal Service
374 Federal Financing Bank
Total commerce and housing credit....
875
450 Community and regional development:
452 Area and regional development
Total community and regional development
-1
12,510
12,509
9
88
110
93
17
59
79
105
9
88
110
93
17
59
79
105
§
w
600 Income security:
601 General retirement and disability insurance
-34
-22
-*
-16
-28
-30
Total income security
-34
-22
-*
-16
-28
-30
8,054
7,211
8,693
11,514
12,538
334,145
372,854
410,594
473,748
512,712
Total outlays of off-budget Federal
entities
Total outlays including off-budget
Federal entities
184,548 196,588 211,425 232,021
60
247,134
*$500 thousand or less.
Includes allowances for civilian and military pay raises for Department of Defense.
2 Off-budget entities begin in 1973.
1
1,447
271,067
1,770
96,427
Table 18. FEDERAL TRANSACTIONS IN THE NATIONAL INCOME ACCOUNTS, 1968-79 (in billions of dollars)
1968
1969
1970
1971
Actual
1972
1973
1974
1975
1976
1977
Estimate
1978
1979
RECEIPTS, NATIONAL INCOME BASIS
Personal taxes and nontax receipts
Corporate profits tax accruals
Indirect business tax and nontax accruals
Contributions for social insurance
71.4
33.2
17.1
38.4
90.0
37.0
18.6
44.5
93.6
33.0
19.2
49.2
87.5
32.0
20.0
52.9
100.3
34.2
19.9
59.1
107.3
41.0
20.7
71.5
122.6
43.7
21.4
84.2
127.3
42.1
22.1
92.1
137.2
52.2
24.2
100.5
165.5
57.4
24.6
116.5
185.5
63.1
28.5
133.7
195.6
69.7
34.8
151.3
160.0
190.1
194.9
192.5
213.5
240.5
271.8
283.6
314.1
364.0
410.8
451.4
95.0
(74.9)
(20.1)
44.8
(42.7)
(2.1)
17.8
10.5
98.0
(76.1)
(21.9)
50.9
(48.7)
(2.2)
19.2
12.1
97.0
(75.3)
(21.7)
57.0
(55.0)
(2.0)
22. 6
13.6
94.8
(72.1)
(22.7)
70.1
(67.7)
(2.3)
26.8
14.2
100.9
(72.5)
(28.4)
78.9
(76.1)
(2.8)
32.6
14.1
101.7
(73.3)
(28.4)
89.7
(87.1)
(2.7)
40.4
15.9
158.4
(99.8)
(58.6)
184.2
/ 1 f t n 7N
(180.7)
(3.5)
77.0
34.5
171.6
(108.1)
(63.5)
201.8
nQ
* ™
(198.0)
(3.8)
81.6
39.8
4.1
4.6
5.4
—.1
6.8
.1
6.4
9.1
—.5
8.0
.2
5.7
.4
6.1
6.1
9.5
9.2
Total expenditures, national income
basis
172.2
184.7
195.6
212.7
232.9
256.2
278.8
328.7
372.3
411.8
463.6
504.0
Excess of receipts ( + ) or expenditures (—),
national income basis
-12.2
+5.4
-.6
-20.2
-19.5
-15.7
-7.0
-45.0
-58.2
-47.8
-52.8
-52.6
Total receipts, nationalincome b a s i s EXPENDITURES, NATIONAL
INCOME BASIS
Purchases of goods and services
Defense
Nondefense
Transfer payments
Domestic ("to persons")
Foreign
Grants-in-aid to State and local governments.
Net interest paid
Sudsidies less current surplus of Government
enterprises
Wage disbursements less accruals
Note.— Excludes the transition quarter.
126.5
140.7
104.6
117.9
(92.0)
(85.8)
(80.3)
(74.1)
(40.7)
(48.7)
(30.5)
(37.6)
104.7
134.2
156.8
169.7
/ini 7
i n
1M
(101.7)
^ "(131.1)
*
'(153.9)
°^ "(166.5)
" ^
(3.0)
(3.2)
(3.1)
(3.0)
57.5
66.0
48.4
41.6
25.4
29.3
21.9
19.8
>
w
-,
Table 19. FEDERAL FINANCES AND THE GROSS NATIONAL PRODUCT, 1958-1979 (dollar amounts in billions)
Outlays l 2
Budget receipts *
Fiscal year
Gross
national
product
Amount
Percent
of GNP
Unified budget
Amount
Percent
of GNP
18.7
19.5
18.5
Federal debt, end of year
Off-budget
Federal entities
Amount
Percent
of GNP
Total
d by tl
public
Total
Amount
Percent
of GNP
Amount
Percent
of GNP
Amount
Percent
of GNP
82.6
92.1
92.2
18.7
19.5
18.5
279.7
287.8
290.9
63.3
60.8
58.5
226.4
235.0
237.2
51.2
49.7
47.7
1958
1959
1960__.
442.1
473.3
497.3
79.6
79.2
92.5
18.0
16.7
18.6
82.6
92.1
92.2
1961
1962
1963
1964
1965....
508.3
546.9
576.3
616.2
657.1
94.4
99.7
106.6
112.7
116.8
18.6
18.2
18.5
18.3
17.8
97.8
106.8
111.3
118.6
118.4
19.2
19.5 .
19.3 .
19.2
18.0
97.8
106.8
111.3
118.6
118.4
19.2
19.5
19.3
19.2
18.0
292.9
303.3
310.8
316.8
323.2
57.6
55.5
53.9
51.4
49.2
238.6
248.4
254.5
257.6
261.6
46.9
45.4
44.2
41.8
39.8
1966
1967
1968
1969
1970
721.1
774.4
829.9
903.7
959.0
130.9
149.6
153.7
187.8
193.7
18.1
19.3
18.5
20.8
20.2
134.7
158.3
178.8
184.5
196.6
18.7
20.4
21.5
20.4
20.5
134.7
158.3
178.8
184.5
196.6
18.7
20.4
21.5
20.4
20.5
329.5
341.3
369.8
367.1
382.6
45.7
44.1
44.6
40.6
39.9
264.7
267.5
290.6
279.5
284.9
36.7
34.5
35.0
30.9
29.7
1971
1972
1973
1974
1975
1,019.3
1,110.5
1,237.5
1,359.2
1,454.6
188.4
208.6
232.2
264.9
281.0
18.5
18.8
18.8
19.5
19.3
211.4
232.0
247.1
269.6
326.1
20.7
20.9
20.0
19.8
22.4
.1
1.4
8.0
*
.1
.6
211.4
232.0
247.1
271.1
334.1
20.7
20.9
20.0
19.9
23.0
409.5
437.3
468.4
486.2
544.1
40.2
39.4
37.9
35.8
37.4
304.3
323.8
343.0
346.1
396.9
29.9
29.2
27.7
25.5
27.3
1976
1977
1,625.4
1,838.0
2,043.2
2.274.6
2,274.6
299.2
356.9
400.4
439.6
18.4
19.4
19.6
19.3
365.6
401.9
462.2
500.2
22.5
21.9
22.6
22.0
7.2
8.7
11.5
12.5
.4
.5
.6
.6
372.9
410.6
473.7
512.7
22.9
22.3
23.2
22.5
631.9
709.1
785.6
873.7
38.9
38.6
38.4
38.4
480.3
551.8
617.8
690.8
29.5
30.0
30.2
30.4
1978 estimate
1979 estimate
*0.05% or less.
1
The amounts of earned income credit in excess of tax liabilities are shown as negative budget receipts rather than as budget outlays. Accordingly, the budget
totals2 have been adjusted retroactively.
The 1975—1977 data have been revised retroactively to include the housing for the elderly or handicapped fund in the unified budget instead of with the offbudget Federal entities.
Note.—Exchange stabilization fund included from 1976.
w
d
o
8
>
CD
CO
Table 20. COMPOSITION OF BUDGET OUTLAYS IN CURRENT AND CONSTANT (FISCAL YEAR 1972) PRICES: 1956-1979
(In billions of dollars)
Constant (fiscal year 1972) prices
Current prices
Nondefense
Fiscal year
1956
1957
1958
1959
1960
Total
outlays
National
defense
Total
nondefense
Payments
for
individuals
Nondefense
Net
interest
All
other
Total
outlays
National
defense
Total
nondefense
Payments
for
individuals
Net
interest
All
other
70.5
76.7
82.6
92.1
92.2
39.7
42.4
43.7
46.0
45.2
30.7
34.3
38.9
46.1
47.1
13.8
15.6
19.4
21.2
22.9
5.1
5.4
5.6
5.8
6.9
11.8
13.4
13.8
19.2
17.2
1
@FedFRASER